Authorised Dealer Not Liable To Pay Service Tax On Incentives Out Of Dealership Agreement: CESTAT

The Delhi Bench of the Customs, Excise and Service Tax Appellate Tribunal (CESTAT) has held that the authorized dealer was not liable to pay service tax on various incentives that it received from Tata as per the dealership agreement.The two-member bench of Justice Dilip Gupta (President) and P.V. Subba Rao (Technical Member) has observed that as per the dealership agreement, the appellant...

CESTAT Allows Service Tax Refund To Developer Of Residential Flats On Cancellation Of Booking

The Delhi Bench of the Customs, Excise and Service Tax Appellate Tribunal (CESTAT) has allowed the service tax refund to the developer of residential flats on cancellation of the booking.The bench of Anil Choudhary (Judicial Member) has observed that the appellant was entitled to a refund in view of the Cenvat credit no longer being available, and in spite of being entitled to the same under...

No Excise Duty Payable On Manual Segregation Of Scrap: CESTAT

The Delhi Bench of the Customs, Excise and Service Tax Appellate Tribunal (CESTAT) has held that excise duty is not levied on manual segregation of scrap.The two-member bench of Binu Tamta (Judicial Member) and P. V. Subba Rao (Technical Member) has observed that the respondent was neither manufacturing nor producing the plastic scrap. The plastic scrap already exists, and the respondent is...

When The Test Reports Are On Record, No Need To Go To The Websites And Wikipedia: CESTAT

The Ahmedabad Bench of the Customs, Excise and Service Tax Appellate Tribunal (CESTAT) has held that when the test reports are available on record, there is no need to go to the website or Wikipedia.The two-member bench of Ramesh Nair (judicial member) and Raju (technical member) has observed that the exemption under the notification was provided to "Boron Ore." The product's test report...

Road Construction Services Are Excluded From The Taxable Service: CESTAT Quashes Service Tax Demand

The Ahmedabad Bench of the Customs, Excise and Service Tax Appellate Tribunal (CESTAT) has quashed the demand for service tax and held that the service provided for road construction is excluded from the taxable service, namely "Commercial or Industrial Construction Service."The two-member bench of Ramesh Nair (Judicial Member) and Raju (Accountant Member) has observed that the appellant...

Tax Cases Weekly Round-Up: 29 January To 4 February 2023

Supreme Court S.153A Income Tax Act| Can Assessments Be Reopened If No Incriminating Material Is Found During Search? Supreme Court Reserves Judgment Case Title : PR. COMMISSIONER OF INCOME TAX CENTRAL v. ABHISAR BUILDWELL P. LTD The Supreme Court on Thursday reserved its judgment on whether in an assessment under section 153A of the Income Tax Act, besides the...

Deputy Commissioner Not Empowered To Reassess After The Goods Were Cleared For Home Consumption: CESTAT

The Delhi Bench of the Customs, Excise and Service Tax Appellate Tribunal (CESTAT) has held that the Deputy Commissioner had the power to reassess the goods under Section 17(5) of the Customs Act, 1962, after the goods had been cleared for home consumption.The two-member bench of Binu Tamta (Judicial Member) and P.V. Subba Rao (Technical Member) has observed that the customs EDI system does...

CENVAT Credit Can’t Be Denied For Use Of Prime Quality Materials In Manufacture: CESTAT

The Kolkata Bench of the Customs, Excise and Service Tax Appellate Tribunal (CESTAT) has held that there is no restriction in the CENVAT Credit Rules that the Appellants should not use prime quality materials for the manufacture of final products.The single bench of P.K. Choudhary (Judicial Member) has observed that as long as there is no dispute regarding the receipt and consumption of...

Tax Cases Weekly Round-Up: 22 January to 28 January 2023

Supreme Court Supreme Court Sets Aside Bail Condition To Deposit Rs 70 Lakhs In Case For Wrongfully Claiming ITC Case Title: Subhash Chauhan Versus UOI Citation: 2023 LiveLaw (SC) 61 The Supreme Court has overturned a bail condition imposed by the High Court that a person accused of illegally claiming Input Tax Credit must deposit Rs. 70 lakhs, the alleged amount...

Payments Made Through Cenvat Account Is Liable To Be Re-Credited If Excise Duty Is Paid In Cash: CESTAT

The Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has held that once the duty has been paid in cash, earlier payments made through the Cenvat Account are liable to be re-credited to the Account and no objection that such re-credit was not on the basis of any eligible document can be adopted by the department.The bench of P.K. Choudhary (Judicial Member) has observed that the...

Promotional Activities Undertaken By Cricketers Are Not Covered Under Business Support Service: CESTAT Quashes Service Tax Demand Against Irfan Pathan and Yusuf Pathan

The Ahmedabad Bench of the Customs, Excise and Service Tax Appellate Tribunal (CESTAT) has quashed the service tax demand against the international cricketers, Irfan Pathan and Yusuf Pathan.The two-member bench of Ramesh Nair (judicial member) and Raju (technical member) has observed that the apparel that the appellant had to wear was team clothing, which bears the brand names and marks...

Tax Cases Weekly Round-Up: 15 January to 21 January 2023

Delhi High Court VAT Department Not To Initiate Coercive Measures Against PSU Pawan Hans: Delhi High Court Case Title: Pawan Hans Ltd. Versus Commissioner of Trade and Taxes Citation: 2023 LiveLaw (Del) 65 The Delhi High Court has granted a stay to helicopter charterer PSU Pawan Hans Ltd. against a VAT demand of Rs. 176 crores. The division bench of Justice Vibhu...