Customs Broker Licence Can’t Be Revoked On Mere Charge Of Mis–Declaration And Undervaluation Of The Illegal Imports: CESTAT

The Delhi Bench of the Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has held that the licence cannot be revoked on a mere charge of misdeclaration and undervaluation of illegal imports.The bench of Binu Tamta (Judicial Member) and Hemambika R. Priya (Technical Member) has observed that the punishment has to be commensurate with the misconduct and that the charges against...

Excess Amount Paid In Service Tax Can Be Adjusted Against The Short Payment In Education Cess: CESTAT

The Kolkata Bench of the Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has held that the excess amount paid in service tax can be adjusted against the short payment in education cess.The bench of Ashok Jindal (Judicial Member) and K. Anpazhakan (Technical Member) has observed that the cenvat credit of basic central excise duty can be utilised for payment of education cess and...

Tax Cases Monthly Round Up:August 2023

Indirect Taxes Supreme Court Excise Duty Exemption | To Determine If A Product Falls Under Description "Intravenous Fluids”, Its Composition & Not Its Use Matters : Supreme Court Case Title: Commissioner of Central Excise vs M/s Denis Chem Lab Ltd. & Anr. Citation : 2023 LiveLaw (SC) 650 The Supreme Court has ruled that in order to determine whether a...

Onus Lies On Restaurant To Prove Absence Of AC Facility To Avail Service Tax Exemption: CESTAT

The Delhi Bench of the Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has held that the onus lies on the restaurant to prove the absence of an AC facility to avail of service tax exemption.The bench of Binu Tamta (Judicial Member) and P. V. Subba Rao (Technical Member) has observed that as per state rules and conditions for granting the bar restaurant licence, it was mandatory...

Tax Cases Weekly Round-Up: 13 August To 19 August, 2023

Supreme Court Income Tax Settlement Commission's Purpose Is To Give Assessee Chance To Disclose Undisclosed Income To Seek Immunity : Supreme Court Case Title: SHREE NILKANTH DEVELOPERS v. PRINCIPAL COMMISSIONER OF INCOME TAX Citation : 2023 LiveLaw (SC) 648 A Division bench of the Supreme Court, while hearing an appeal, discussed the objective and purpose behind...

Savoury Oats And Silk Oats Are Classified As ‘Cereal’, Does Not Attract Excise Duty: CESTAT

The Chennai Bench of the Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has held that savoury oats and silk oats are classified as ‘cereal’ and do not attract excise duty.The bench of Sulekha Beevi C.S. (Judicial Member) and Vasa Seshagiri Rao (Technical Member) has observed that savoury oats and silk oats are classifiable under Chapter Heading 1104-1200.The...

Interconnectivity Utility Charges From Indian Customers/End Users Can’t Be Considered As Royalty/FTS: CESTAT

The Banglore Bench of the Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has held that payments received by the assessee towards interconnectivity utility charges from Indian customers or end users cannot be considered royalties or fees for technical services (FTS).The bench of Beena Pillai (Judicial Member) and Chandra Poojari (Accountant Member) has observed that the...

Cenvat Credit Allowable To Nayara Energy On Inputs Used For Railway Lines: CESTAT

The Ahmedabad Bench of the Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has held that cenvat credit is allowable on inputs used for railway lines.The bench of Ramesh Nair (Judicial Member) and C.L. Mahar (Technical Member) has observed that railway tracks are used to move inputs, raw materials, and manufactured goods within factory premises. Railway Track cannot be kept out...

No Service Tax Applicable On Providing Repair, Management And Maintenance Of Roads Services To NHAI: CESTAT

The Hyderabad Bench of the Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has held that no service tax is applicable to the repair, management, and maintenance of road services for the National Highway Authority of India (NHAI).The bench of Anil Choudhary (Judicial Member) and A.K. Jyotishi (Technical Member) has observed that the assessee has provided repair, management,...

No Service Tax Payable On Penal Interest & Cheque Bouncing Charges Received By Bajaj Finance: CESTAT

The Mumbai Bench of the Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has held that penal interest and cheque bouncing charges received by Bajaj Finance as "consideration" for "tolerating an act" are not leviable to service tax under Section 66E(e) of the Finance Act, 1994.The Bench of S.K. Mohanty (Judicial Member) and M. M. Parthiban (Technical Member) has observed that...

Flue Gas Generated During Manufacturing Metallurgical Coke Is Not A Manufactured Product, Tata Steel Not Liable To Pay Excise Duty: CESTAT

The Kolkata Bench of Customs, Excise and Service Tax Appellate Tribunal (CESTAT) has held that the flue gas generated during the course of manufacturing metallurgical coke is not a manufactured product and is also not marketable.The bench of Ashok Jindal (Judicial Member) and K. Anpazhakan (Technical Member) has observed that the burden of proof that the product is marketable is on the...

Services For Drain Hole Drilling In The Existing Oil Wells Qualify As “Mining Services”: CESTAT

The Kolkata Bench of the Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has held that services for drain hole drilling in existing oil wells qualify as "mining services".The bench of Ashok Jindal (Judicial Member) and K. Anpazhakan (Technical Member) has observed that the activity of drilling core holes and test wells was held to be taxable only w.e.f. 01.06.2007 as services...