No Case Is Made Out By Customs For Confiscation Of Goods Meant For Export: CESTAT

The Delhi Bench of the Customs, Excise and Service Tax Appellate Tribunal (CESTAT) has held that a No Objection Certificate (NOC) is not required from the Drug Controller in respect of an export consignment filed for the export of drugs to Liberia.The bench of Anil Choudhary (a Judicial Member) has observed that the appellant was a genuine manufacturer duly licensed to manufacture and...

Excise Duty Not Payable On Test Production: CESTAT

The Delhi Bench of the Customs, Excise and Service Tax Appellate Tribunal (CESTAT) has held that excise duty is not payable on test production.The bench of Anil Choudhary (Judicial Member) has observed that the appellant/assessee has done only test production prior to November 11, 2010, and they have been doing mainly trading of finished goods as the factory was not fully set up at the...

“Activation Charges” Of Equipment/Software Features Covered Under The Activity Of Sales Of Goods, Not “Service”: CESTAT

The Ahmedabad Bench of Customs, Excise and Service Tax Appellate Tribunal (CESTAT) has held that the “activation charges” of equipment/ software features are covered under the activity of sales of goods and not covered under the provisions of “Service”.The two-member bench of Ramesh Nair (Judicial Member) and Raju (Technical Member) has observed that if the software whether customized...

Onus is On The Customs Department To Prove That The Goods are Smuggled: CESTAT

The Delhi Bench of the Customs, Excise and Service Tax Appellate Tribunal (CESTAT) has held that the onus is on the Customs Department to lead evidence in support of an allegation as to the smuggled nature of goods.The bench of Anil Choudhary (a judicial member) has directed the department to release the goods within a period of 15 days. The appellant shall not be liable for payment of...

Gold Balas Are Gold Ornaments Having Definite Shape To Be Worn By The Local People: CESTAT

The Kolkata Bench of the Customs, Excise and Service Tax Appellate Tribunal (CESTAT) has released the gold balas from custody and held that gold balas are gold ornaments having a definite shape to be worn by the local people.The bench of P.K. Choudhary (Judicial Member) has observed that the Gold Control Act of 1968 has already been repealed since 1990. Under the new fiscal policy, the...

Notice Under Customs Act Can Be Issued Only After The Assessment Is Modified On Appeal: CESTAT

The Delhi Bench of the Customs, Excise and Service Tax Appellate Tribunal (CESTAT) has held that once an assessment is made, it stands unless it is reviewed under Section 28 of the Customs Act or modified in an appeal.The two-member bench headed by Justice Dilip Gupta (President) and P.V. Subba Rao (Technical Member) has observed that any assessment can be modified in two ways: first, through...

Tax Cases Weekly Round-Up: 08 January To 14 January 2023

Supreme Court Income Tax Act | Writ Petition Can Be Entertained To Examine If Conditions To Issue Section 148 Notice Are Satisfied : Supreme Court Case Title: Red Chilli International Sales Versus ITO Citation: 2023 LiveLaw (SC) 16 The Supreme Court recently set aside an order of the Punjab and Haryana High Court which dismissed a writ petition filed by an assessee against...

Clinical Establishments Providing Health Care Services Are Exempted From Service Tax: CESTAT

The Delhi Bench of the Customs, Excise and Service Tax Appellate Tribunal (CESTAT) has observed that clinical establishments providing health care services are exempt from service tax.The two-member bench headed by Justice Dilip Gupta (President) and P.V. Subba Rao (Technical Member) has observed that healthcare services are provided by clinical establishments by engaging consultant doctors....

Responsibility Of Assessee To Know The Eligibility Before Making Export Benefits Claim: CESTAT

The Delhi Bench of the Customs, Excise and Service Tax Appellate Tribunal (CESTAT) has held that the appellant made a wrong claim of export benefit under MEIS, having been misadvised by the Customs House Agent (CHA).The bench of Anil Choudhary (Judicial Member) has observed that it was the responsibility of the appellant to understand the eligibility and the conditions before making a claim...

Service Tax Not Payable On Intermediary In The Sale Of Space or Time For Media Agency On Commission Basis: CESTAT

The Ahmedabad Bench of the Customs, Excise and Service Tax Appellate Tribunal (CESTAT) has held that service tax is not payable on intermediaries in the sale of space or time for media agencies on a commission basis.The two-member bench of Ramesh Nair (judicial member) and Raju (technical member) has observed that no evidence has been placed on record to establish that the appellant was...

Once The Flat Buyer Cancels The Booking Builder Not Liable To Pay Service Tax: CESTAT

The Mumbai Bench of the Customs, Excise and Service Tax Appellate Tribunal (CESTAT) has held that once the buyer cancelled the booking and the consideration for service was returned, the service contract got terminated, and once it is established that no service is provided, then refund of tax for such service becomes admissible.The bench of Ajay Sharma (a judicial member) has observed that...

Customs Broker Is Not Liable For Undervaluation Of Exported Goods: CESTAT

The Chennai Bench of the Customs, Excise and Service Tax Appellate Tribunal (CESTAT) has held that customs brokers cannot be held liable for the undervaluation of exported goods.The bench of P. Dinesha (a judicial member) has observed that the valuation of any goods could never be the domain of a customs broker as it depends upon the contract between the exporter and the importer, in which...