CESTAT Half Yearly Digest: January To June 2024 - PART II
Mariya Paliwala
9 July 2024 7:05 PM IST
CESTAT Allows Refund Of Service Tax Paid On Cancelled Bookings Of FlatsCase Title: Kanakia Spaces Reality Pvt. Ltd. Versus Commissioner Of Cgst & Central Excise, MumbaiThe Mumbai Bench of Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has allowed the refund of service tax paid on cancelled bookings of flats.Freight/Insurance Amount Is Not Includible In Assessable Value Of...
CESTAT Allows Refund Of Service Tax Paid On Cancelled Bookings Of Flats
Case Title: Kanakia Spaces Reality Pvt. Ltd. Versus Commissioner Of Cgst & Central Excise, Mumbai
The Mumbai Bench of Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has allowed the refund of service tax paid on cancelled bookings of flats.
Case Title: Panama Petrochem Ltd. Versus Commissioner of C.E. & S.T.-Daman
The Ahmedabad Bench of Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has held that the freight or insurance amount is not included in the assessable value of the goods for charging excise duty.
Case Title: Shri Abbasbhai Teherali Bharmal Versus Commissioner of C.E. & S.T.-Rajkot
The Ahmedabad bench of the Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has held that cross-examination is necessary for arriving at a fair trial.
Service Tax Not Payable On Flats Constructed Prior To 01.07.2010, Having Less Than 12 Flats: CESTAT
Case Title: M/s. Sandeep N Savani Versus Commissioner of GST & Central Excise
The Chennai bench of the Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has held that there is no tax liability on the appellant for the impugned flats constructed prior to July 1, 2010, having less than 12 units or flats.
Case Title: M/s. Steel Authority of India Limited Versus Commissioner of Central Excise and Service Tax
The Kolkata Bench of Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has held that the admissibility of discounts that were passed on to the buyers and were known at the time of clearance of goods is an eligible deduction for the purpose of determining the assessable value.
Case Title: Sh Mohammed Mustafa Versus Pr. Commissioner of Customs Hyderabad
The Hyderabad Bench of Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has held that intention to smuggle prohibited goods cannot be equated with an attempt to export prohibited goods.
Case Title: Hamon Shriram Cottrel Pvt. Ltd. Versus Commissioner of C.E. & S.T.-Vapi
The Ahmedabad Bench of Customs, Excise and Service Tax Appellate Tribunal (CESTAT) has held that no service tax can be demanded on the sale of goods or by way of including the value of goods in the service.
Case Title: M/s.GND Cargo Movers Versus Commissioner of Customs
The Delhi Bench of Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has held that statements recorded under Section 108 of the Customs Act, 1962, are admissible before a court of law.
Case Title: Sh Mohammed Mustafa Versus Pr. Commissioner of Customs Hyderabad
The Hyderabad Bench of Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has held that intention to smuggle prohibited goods cannot be equated with an attempt to export prohibited goods.
Technical Assistance For Manufacture Of Aircraft & Engines Not Covered Under IPR-Services: CESTAT
Case Title: M/s. Hindustan Aeronautics Limited Versus Commissioner of Central Excise, Customs and Service Tax
The Kolkata Bench of Customs Excise and Service Tax Appellate Tribunal (CESTAT) has held that technical assistance for the manufacture of aircraft and engines is not covered under the category of "Intellectual Property Services" (IPR-Services).
Case Title: Nano Hospitals Pvt. Ltd. Versus Principal Commissioner of Customs Hyderabad - Customs
The Hyderabad Bench of Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has held that used medical devices with a minimum residual life of 5 years or more are not e-waste or hazardous waste.
Case Title: Bigtree Entertainment Pvt. Ltd. Versus Commissioner of Service Tax VI, Mumbai
The Mumbai Bench of Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has held that the online ticketing platform under the aegis of BookmMyShow is not receiving any consideration from card companies, and no service tax is payable.
18% IGST Is Applicable On Nutrition/Dietary Supplements: CESTAT
Case Title: Bright Performance Nutrition Versus Commissioner Of Customs-Mundra
The Ahmedabad Bench of Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has observed that 18% Integrated Goods and Service Tax (IGST) is applicable on nutrition and dietary supplements.
Case Title: Finolex Industries Ltd. Versus Commissioner of Central Tax, Pune I
The Mumbai Bench of Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has held that the assessee is entitled to cenvat credit on inputs and input services used for the production of electricity, which are transferred to its sister unit at Urse free of charge.
Fire Brick After Use In Kiln Is Not Liable To Excise Duty As Waste And Scrap: CESTAT
Case Title: Orient Glaze Pvt Limited Versus Commissioner of Central Excise & ST, Anand
The Ahmedabad Bench of Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has held that the use of fire brick that is dismantled from the undershell of a kiln is not liable to duty as waste or scrap.
Case Title: M/s. Ganesh Benzoplast Limited Versus Commissioner of Customs, Nhava Sheva-I
The Mumbai Bench of Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has held that the provisions of Sections 111(j) and 111(h) of the Customs Act cannot be invoked when prior permission is given by the customs authorities for the storage of non-bonded goods in a bonded warehouse after payment of due duty.
Case Title: BRK Educational Society Versus Commissioner of Central Excise & Service Tax, Guntur
The Hyderabad Bench of Customs, Excise and Service Tax Appellate Tribunal (CESTAT) has held that the appellant-Society is not liable to pay service tax on their activity of imparting education as per the Intermediate curriculum, with intensive preparation for competitive exams.
No Service Tax Payable On Consideration Received For Operating And Arranging Outbound Tours: CESTAT
Case Title: M/s. Weldon Tours & Travels Pvt. Ltd. Versus Commissioner of Service Tax - Delhi
The Delhi Bench of Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has held that no service tax is payable on a tour operator's services provided beyond the territorial limits of India.
Case Title: M/s. NMDC Limited Versus Commissioner of C.G.ST.
The Delhi Bench of Customs, Excise and Service Tax Appellate Tribunal (CESTAT) has held that Cenvat Credit Rules, 2004 and Central Excise Act, 1944 lacks provision to allow cash refund of cesses lying in cenvat credit balance.
Case Title: M/s Microsoft Corporation (India) Pvt. Ltd. Versus The Commissioner of Service Tax, Delhi
The Chandigarh Bench of Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has held that services rendered by Microsoft India to overseas entities qualify to be 'exports'.
Case Title: Sasan Power Limited Versus Commissioner, Central Excise & Central Goods and Services Tax
The Delhi Bench of Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has held that the agreement executed between the appellant and the government is for the supply of water, for which charges are paid by the appellant on the basis of the volume of water drawn, and it is not a case of the assignment of the right to use natural resources by the government.
Case Title: National Co-Operative Consumers' Federation Of India Ltd Versus Commissioner Of Central Excise Delhi Iii Commissionerate, Udyog
The Delhi Bench of Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has held that whatever is charged by the coal companies for coal, the appellant, the National Co-Operative Consumers' Federation of India, is adding 5% margin money, collecting the sale price from the consumers, and paying the sales tax on the entire amount received from the end consumers; therefore, the revenue cannot charge any service tax.
Case Title: Reliance Brands Luxury Fashion Private Ltd. Versus The Principal Commissioner of Customs
The Delhi Bench of Customs, Excise and Service Tax Appellate Tribunal (CESTAT) has held that expenses related to advertising and marketing are expenses in respect of activities carried out in India for sale of the goods in India which is post-import and, therefore, expenses cannot be part of the value of the imported good.
CISF Reputed Government Of India Undertaking Can't Intend To Evade Service Tax Payment: CESTAT
Case Title: Central Industrial Security Force Versus Commissioner of Central Tax Visakhapatnam
The Hyderabad Bench of Customs, Excise, and Service Tax Appellate Tribunal (CESTAT), while quashing the service tax demand, held that rent-free accommodation provided to CISF personnel cannot be taken as additional consideration.
Case Title: Vishal Tansukhbhai Gohel Versus Commissioner of Central Excise & ST, Rajkot
The Ahmedabad Bench of Income Tax Appellate Tribunal (ITAT) has held that no service tax is payable on freight margin recovered from customers in cases of outbound shipment.
Case Title: Vishal Tansukhbhai Gohel Versus Commissioner of Central Excise & ST, Rajkot
The Ahmedabad Bench of Income Tax Appellate Tribunal (ITAT) has held that no service tax is payable on freight margin recovered from customers in cases of outbound shipment.
Export Obligation Under Advance Authorization Scheme Is Complied, All Duties Are Exempted: CESTAT
Case Title: M/s Jewel Utensils Industries Versus C.C. - Mundra
The Ahmedabad Bench of Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has held that the goods were cleared under the advance authorization scheme, according to which all the duties are exempted by way of debiting in the advance licence scheme.
Case Title: M/s. Rajasthan State Road Transport Corporation Versus Commissioner of Central Excise and Service Tax Commissionerate
The Delhi Bench of Customs, Excise and Service Tax Appellate (CESTAT) has held that service tax is payable on buses meant for carrying passengers and cannot be called means of transport of goods.
Broomsticks Made Up Of Plastic Not Using Vegetable Material Taxable w.e.f 22.09.2017: CESTAT
Case Title: Rajat International Versus Commissioner Of Customs-Mundra Customs
The Ahembadad bench of the Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has held that broomsticks made up of plastic not using vegetable material are taxable with effect from September 22, 2017.
Case Title: M/s Kancor Ingredients Ltd. Versus Commissioner, CGST, Noida
The Allahabad Bench of Customs, Excise, and Service Tax Appellate Tribunal (CESTAT)has held that refund of accumulated Cenvat Credit is allowable on export of goods even if they are exempted from payment of Central Excise Duty.
Case Title: National Engineering Industries Limited Versus Commissioner of CGST and Central Excise
The Delhi Bench of Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has held that mere filing of an appeal to challenge the order of the Tribunal or the High Court before the Apex Court is not really a valid ground to ignore or disregard the orders of the Tribunal, unless and until the same are stayed, suspended, or finally set aside.
Customs Duty Amount Involved Is Less Than Threshold Limit: CESTAT Dismissed Dept.'s Appeal
Case Title: Commissioner of Customs ICD Patparganj & Other ICDs Versus VSM Impex Pvt. Ltd.
The Chandigarh Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has dismissed the dept.'s appeal, in which the customs duty amount involved is less than Rs. 50 lakhs.
Set Top Boxes Satisfy Definition Of 'Inputs', Dish TV Entitled To 100% Credit: CESTAT
Case Title: M/s Dish TV India Ltd. Versus Commissioner of CGST, Noida
The Allahabad Bench of Customs, Excise, and Service Tax Appellate Tribunal (CESTAT)has held that Dish TV is entitled to 100% credit as the set top boxes satisfy the definition of 'Inputs'.
Dept. Can't Re-Determine MRP Of Laptops Imported By Acer India Supplied With Laptop Bag: CESTAT
Case Title: M/s. Acer India (Pvt.) Ltd. Versus Commissioner of Customs (Audit)
The Chennai Bench of Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has held that the department cannot re-determine the MRP of laptops imported by Acer India.
Clandestine Removal Cannot Be Substantiated Without Any Corroborative Evidence: CESTAT
Case Title: M/s. Mittal Iron Foundry Private Limited Versus Commissioner of Central Excise
The Kolkata Bench of Customs, Excise and Service Tax Appellate Tribunal (CESTAT) has held that clandestine removal cannot be substantiated without any corroborative evidence.
Case Title: Vishal Tansukhbhai Gohel Versus Commissioner of Central Excise & ST, Rajkot
The Ahmedabad Bench of Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has held that the place of provision of service for outbound shipment shall be outside India. Hence, there will be no service tax on the freight margin recovered by the applicant from the customer.
Excise-Duty Not Payable On Trade Discount Offered To Bulk Buyer Of CNG: CESTAT
Case Title: Mahanagar Gas Ltd. Versus Commissioner of Central Excise, Mumbai-II
The Mumbai Bench of Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has held that excise duty is not payable on trade discounts offered to bulk buyers of compressed natural gas (CNG).
Case Title: Parag Motilal Savla verses ITO
On finding that the AO has failed to prove that the seized documents were related to the assessee, the Mumbai ITAT held that the addition made by the AO u/s 68 of the Income Tax Act, without bringing any concrete evidence on record incriminating the assessee is not sustainable, and deserves to be deleted.
Case Title: DCIT verses Sandeep Hooda
On finding that all the basic amenities desired for a living, were not available in the subjected property rendering it to be non-habitable, the New Delhi ITAT held that the assessee had not constructed the residential house, and hence, deduction u/s 54 of the Income Tax Act, was rightly denied by the AO.
Case Title: MDLR Airline (P) Ltd. verses DCIT
On finding that the approval granted u/s 153D is not in accordance with the provisions of the Income Tax Act, the New Delhi ITAT held the approval granted u/s 153D is invalid and set aside the order passed by the First Appellate Authority as he acted as a mere rubber stamp.
Minimum Import Price Paid On Prime Pre-painted Steel Coils; CESTAT Quashes Redemption Fine, Penalty
Case Title: M/s Hindustan Distributors Versus Commissioner of Customs, Ludhiana
The Chandigarh Bench of Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has held that the minimum import price (MIP) paid on prime pre-painted steel coils is not payable; therefore, a redemption fine and penalty are not payable.
Case Title: M/s. Valeo Friction Materials India Ltd. Versus Commissioner of Customs
The Chennai Bench of Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has held that the royalty is not included in the transaction value of the imported raw materials to demand any differential customs duty.
Redemption Fine And Penalty Can Be Imposed On Re-export Of Prohibited Goods: CESTAT
Case Title: M/s. Scania Commercial Vehicles India Pvt. Ltd. Versus Commissioner of Customs
The Chennai Bench of Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has held that a redemption fine and penalty can be imposed on the re-export of prohibited goods. Section 125 enables the Customs Officer to grant an option to the owner or the person from whose possession the goods have been seized to pay a fine in lieu of confiscation. In an adjudication proceeding as in the present case these are the provisions which would come into play. If the owner gets the goods released after payment of redemption fine, he may either clear it for home consumption or re-export the same subject to the relevant rules. A permission granted for re-export on the basis of a request made by the owner of the goods is outside the purview of the adjudication proceedings.
Case Title: Escorts Limited Versus Commissioner of Customs (Preventive)
The Delhi Bench of Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has held that the aircraft used only for providing non-scheduled passenger services is entitled to customs exemption.
Responsibility Of Customs Broker Does Not Include Keeping Continuous Surveillance On Client: CESTAT
Case Title: M/s Pushpanjali Logistics Versus Commissioner of Customs (Airport & General)
The Delhi Bench of Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has held that the responsibility of the customs broker under Regulation 10(n) of the Customs Brokers Licensing Regulations, 2018 does not include keeping continuous surveillance on the client.
No Service Tax Exemption On Race Tracks Not Meant For Public Use: CESTAT
Case Title: M/s. Paramount Infraventures Pvt. Ltd. Versus Commissioner of Service Tax – Delhi II
The Delhi Bench of Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has held that no service tax exemption on race tracks is meant for public use.
Deduction Of Trade Discount From Assessable Value Is Admissible On Sale Transactions: CESTAT
Case Title: Mahanagar Gas Ltd. Versus Commissioner of Central Excise, Mumbai
The Mumbai Bench of Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has held that the deduction of trade discount from assessable value is admissible on sale transactions.
Service Tax Exemption On Services Of Providing Vehicles On Hire Basis To GTA: CESTAT
Case Title: M/s. Manak Chand Agarwal Versus Commissioner of Central Goods and Service Tax, Excise and Customs, Udaipur
The Delhi Bench of Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has held that the service tax exemption on services of providing vehicles on a hire basis to the Goods Transport Agency (GTA).
Case Title: Principal Commissioner of Customs Hyderabad Versus M/s Olectra Greentech Ltd.
The Hyderabad Bench of Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has held that the assessee, Olectra Greentech, is eligible for Duty-Free Import Authorization (DFIA) Scheme benefits on imported lithium-ion batteries for agriculture tractor export.
Mark Engraved On Gold Coins Is House Mark And Not Brand Name, No Excise Duty Payable: Chennai CESTAT
Case Title: M/s.AVR Swarnamahal Jewelry Limited Versus The Commissioner of CGST & Central Excise
The Chennai Bench of Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has held that excise duty is not payable on the mark engraved on gold coins as it is just a house mark and not a brand name.
No Service Tax Payable On Interest Income On Overdraft/Cash Credit Facilities: Kolkata CESTAT
Case Title: The Assam Cooperative Apex Bank Ltd. Versus Commr. of CGST, Customs & Central Excise, Guwahati
The Kolkata Bench of Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has quashed the service tax demand on interest equivalent on overdraft or cash credit extended by cooperative banks.
Penalty Can't Be Levied When Extended Limitation Period Is Not Invokable: Chandigarh CESTAT
Case Title: M/s P S Construction Versus Commissioner
The Chandigarh Bench of Customs, Excise, and Service Tax Appellate Tribunal (CESTAT)has held that when the extended period is not invokable, the penalty under Section 78 of the Finance Act, 1994, is also not leviable since the ingredients for invoking the extended period and levying the penalty under Section 78 are the same.
Recovery Provisions Of Central Excise Act Are Not Applicable To Service Tax: Chandigarh CESTAT
Case Title: Sun Pharmaceuticals Industries Versus Commissioner
The Chandigarh Bench of Customs, Excise, and Service Tax Appellate Tribunal (CESTAT)has held that recovery provisions of the Central Excise Act are not applicable to service tax.
Dept. Can't Challenge Customs Duty Demand, Below Threshold Limit Prescribed By CBIC: CESTAT
Case Title: Commissioner of Customs Versus Sedna Impex India Pvt Ltd
The Chandigarh bench of the Customs, Excise, and Service Tax Appellate Tribunal (CESTAT), while dismissing the department's appeal, held that the department is precluded from challenging the commissioner's order if customs duty demand is below the threshold limit prescribed by the Central Board of Indirect Taxes and Customs (CBIC).
Mumbai CESTAT Allows CENVAT Credit To HDFC ERGO Against Duty Paid On Re-Insuring Motor Vehicle
Case Title: HDFC ERGO General Insurance Co. Ltd. Versus Commissioner
The Mumbai Bench of Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has allowed the CENVAT credit taken by the appellant, HDFC ERGO, against duty paid on re-insuring motor vehicles while providing general insurance service for the period from April 2011 to March 2012.
Case Title: M/s Hindustan Coca Cola Beverages Pvt. Ltd. Versus Commissioner of Central Excise
The Allahabad Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has held that the product “Minute Maid Nimbu Fresh” is classifiable under Tariff Item 2202 90 20 of the Central Excise Tariff Schedule under the category of “fruit pulp or fruit juice-based drinks.”
CA Certificate Sufficient To Grant Special Additional Duty Refund Claim: CESTAT
Case Title: M/s Faxtel Systems (India) Versus Commissioner of Customs Bangalore
The Banglore Bench of Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has held that once a CA certificate is produced, in the absence of any allegation of fraud or collusion, such a certificate is sufficient to grant the refund claim. The Special Additional Duty (SAD) refund should not be denied merely for technical violations.
Case Title: M/s Yatra Online Pvt Ltd Versus Commissioner, CGST, Gurugram
The Chandigarh Bench of Customs, Excise, and Service Tax Appellate Tribunal (CESTAT), while quashing the service tax demand against Yatra Online, held that “convenience fee” and “cancellation fee” are recovered in the course of the provision of the service related to the booking of tickets for passage through air and not in connection with any business promotion.
Service Tax Exemption On Laying Pipelines For Water Supply And Drainage: Ahmedabad CESTAT
Case Title: Skyway Construction Versus Commissioner of Central Excise & ST, Surat
The Ahmedabad Bench of Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has held that no service tax is payable on laying pipelines for water supply and drainage.
Case Title: Hanuman Weaving Factory Versus Commissioner of Service Tax
The Banglore Bench of Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has held that the service tax on commission paid to the foreign commission agents is payable under reverse charge only from April 18, 2006, and not from January 1, 2005.
Customs Brokers Not Liable Once Verification Of Address Is Completed: Delhi CESTAT
Case Title: M/S Pawan Kumar Tiwari Versus Commissioner, Customs-New Delhi
The Delhi Bench of Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has held that the responsibility of the customs broker under Regulation 10(n) does not include keeping continuous surveillance on the client to ensure that he continues to operate from that address and has not changed his operations.
Case Title: M/S Divine Autotech Private Limited Versus Commissioner Of Central Tax
The Delhi Bench of Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has held that no service tax is payable on an amount received by an automobile dealer from the manufacturer as a trade discount.
