Installation & Commissioning Of Goods After Sale Is Not “Works Contracts”; Service Tax Not Leviable: CESTAT

The New Delhi Bench of Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has stated that installation and commissioning of goods after sale is not a “works contracts”, hence service tax is not leviable. The Bench of Binu Tamta (Judicial Member) and P.V. Subba Rao (Technical Member) has observed that “merely because the goods were installed and commissioned after...

FOB Value Of Goods Can't Be Modified By Anyone Including Any Customs Officer: CESTAT

The New Delhi Bench of Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has stated that no stranger to the contract, including any Customs officer has any right to interfere with the Free on Board (FOB) value of the goods. The Bench of Justice Dilip Gupta (President) and P.V. Subba Rao (Technical Member) has stated that “there is a privity of contract between the buyer...

Customs Broker Not Responsible If Client Moves To New Premises After Verification Of Address Is Complete: CESTAT

The New Delhi Bench of Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has stated that customs broker not responsible if client moves to new premises once verification of address is complete. “The responsibility of the Customs Broker under Regulation 10(n) does not include keeping a continuous surveillance on the client to ensure that he continues to operate from...

Legal & Consultancy Services Under RCM Is Liable To Service Tax: CESTAT

The New Delhi Bench of Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has stated that legal & consultancy services under RCM is liable to service tax. The Bench of Binu Tamta (Judicial Member) and Hemambika R. Priya (Technical Member) has stated that “in absence of any reply or any supporting documents, Legal fees expense incurred by the assessee are...

CESTAT Can't Reject Appeal Merely Because Pre-Deposit Was Made In Wrong Account, Especially When Rules Were Unclear: Delhi High Court

The Delhi High Court has held that merely because a pre-deposit prescribed under Section 35F of the Central Excise Act, 1944, for preferring an appeal is made in the wrong account, that too when the integrated portal might not have been fully functional, cannot result in rejection of appeal on the ground of defects.A division bench of Justices Prathiba M. Singh and Rajneesh Kumar Gupta...

Delhi HC Asks CESTAT To Decide If Tax On Services Purchased By Prepaid Mobile Subscribers From Existing Balance Would Amount To Double-Tax

The Delhi High Court has asked the Customs Excise & Service Tax Appellate Tribunal to decide whether levy of tax on the services purchased by a prepaid subscriber of Tata Teleservices, using the existing mobile balance on which tax was already paid, would amount to double taxation.Considering that the matter would involve factual evaluation of the manner in which services are provided...

Service Tax Liability Can't Be Levied On Freight And Cartage Expenses Under GTA Services: CESTAT

The New Delhi Bench of Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has stated that service tax liability cannot be levied on freight and cartage expenses under GTA (Good Transport Agency) services. “The said amount/expenses/charges were not paid by the assessee directly to the transporter for transportation of any goods. Thus, the said activity cannot be...

Reimbursements Received By Assessee Can't Be Considered As 'Consideration' Towards Any Taxable Service: CESTAT

The Kolkata Bench of Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has stated that the reimbursements received by the assessee cannot be considered as 'consideration' towards any taxable service. The Bench of Ashok Jindal (President) and K. Anpazhakan (Technical) has observed that, “the service rendered by the appellant is not for any other company but to...

Assessee Not Eligible To Avail CENVAT Credit On Invoices Not In Their Name: CESTAT

The New Delhi Bench of Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has stated that the assessee is not eligible to avail the CENVAT Credit on the basis of the invoices which were not in their name. The Bench of Binu Tamta (Judicial Member) and Hemambika R. Priya (Technical Member) has observed that “it is necessary that the document contains all particulars...

Obligation Under CENVAT Credit Rules, 2004, Cannot Be Transferred To Recipient Of Credit: CESTAT

The Mumbai Bench of Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has stated that the obligation under rule 3(1) of CENVAT Credit Rules, 2004 cannot be transferred to the recipient of credit under rule 7 of CENVAT Credit Rules, 2004. The Bench of C J Mathew (Technical) has observed that, “the mechanism provided in rule 7 of CENVAT Credit Rules, 2004, governing...

Customs Authorities Can't Deny Benefit Of Customs Duty Exemption Under Notifications Governing Advance Licensing Scheme: CESTAT

The New Delhi Bench of Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has stated that the Customs authorities cannot deny the benefit of Customs duty exemption under the notifications governing the Advance Licensing Scheme. The Bench of Dr. Rachna Gupta (Judicial Member) and Hemambika R. Priya (Technical Member) was addressing the issue of whether the goods imported by...

If Goods Imported Into SEZ Are Not Used For Authorised Operations But Sold In Domestic Tariff Area, Duty Has To Be Paid: CESTAT

The New Delhi Bench of Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has stated that if goods imported into an SEZ are not used for the authorised operations but are sold in Domestic Tariff Area, duty has to be paid. Section 51 of the Special Economic Zones (SEZ) Act, 2005 states that the provisions of the SEZ Act will take precedence over any other...