CESTAT Cases Monthly Round Up: April 2024

Service Tax Payable On Income Received By Smaaash From Bowling Alley Would Be Covered Under Amusement Facility: CESTATCase Title: M/s Smaaash Leisure Limited Versus Commissioner of Central Goods & Service Tax, New DelhiThe Delhi Bench of Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has held that the income received by the Smaaash from bowling alley would be covered...

No Confiscation If Prior Permission Taken From Customs Dept. For Storage Of Non-Bonded Goods In Bonded Warehouse: CESTAT

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.The bench of S.K. Mohanty (Judicial Member) and M.M. Parthiban...

Fire Brick After Use In Kiln Is Not Liable To Excise Duty As Waste And Scrap: CESTAT

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. The bench of Ramesh Nair (Judicial Member) and C.L. Mahar (Technical Member) has observed that periodically, fire bricks from the kiln are to be dismantled and then removed as they...

CENVAT Credit Available On Input Services Used For Production Of Electricity Transferred To Its Sister Unit Free Of Cost: CESTAT

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. The bench of Ajay Sharma (Judicial Member) has observed that there is no allegation about the sale of electricity in...

18% IGST Is Applicable On Nutrition/Dietary Supplements: CESTAT

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. The bench of Ramesh Nair (Judicial Member) and Raju (Technical Member) has observed that the appellant has declared their goods, namely nutrition and dietary supplements, under Tariff Item...

Online Ticketing Platform Under Aegis Of BookMyShow Not Receiving Any Consideration From Card Companies, No Service Tax Payable: CESTAT

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.The bench of Anil G. Shakkarwar (Technical Member) and Dr. Suvendu Kumar Pati (Judicial Member) has observed that, as per the agreement, card companies...

[Central Excise Act] Mandatory Pre-Deposit U/S 35F For Filing Appeal Before CESTAT Can't Be Waived In Writ Jurisdiction: Allahabad High Court

The Allahabad High Court has held that mandatory condition of pre-deposit prescribed under Section 35F of the Central Excise Act for filing appeals before the Customs Excise and Service Tax Appellate Tribunal cannot be waived under Article 226 of the Constitution of India.Petitioner approached the High Court against the order passed by the Commissioner, Central Goods and Service Tax,...

Import Of Second Hand Medical Devices Having Minimum Residual Life Of 5 Years Or More Are Not E-Waste/Hazardous Waste: CESTAT

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.The bench of Anil Choudhary (Judicial Member), while quashing the confiscation and penalty order on imported used medical devices, held that the goods—used medical devices—were found to be...

Technical Assistance For Manufacture Of Aircraft & Engines Not Covered Under IPR-Services: CESTAT

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).The bench of Ashok Jindal (Judicial Member) and Rajeev Tandon (Technical Member) has observed that technical knowhow provided by a foreign company to...

Intention To Smuggle Prohibited Goods Can't Be Equated With Attempt To Export Prohibited Goods: CESTAT

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.The bench of Anil Choudhary (Judicial Member) and A.K. Jyotishi (Technical Member) observed that the appellant was intercepted by the CISF officials outside the customs area. The appellant...

Statements Recorded Under Section 108 Of Customs Act, 1962 Are Admissible Before Court Of Law: CESTAT

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.The bench of Binu Tamta (Judicial Member) and P.V. Subba Rao (Judicial Member) has observed that the Customs Broker, in his statement recorded under Section 108, accepted that he has not verified...

No Service Tax Can Be Demanded On Sale Of Goods Or By Way Of Including Value Of Goods In The Service: CESTAT

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.The bench of Ramesh Nair (Judicial Member) and Raju (Technical Member) has observed that as per the contract and the transaction made thereunder there is clear distinction between...