CESTAT Allows Customs Duty Refund Claim Paid Through DEPB Scrip

The Mumbai Bench of the Customs, Excise and Service Tax Appellate Tribunal (CESTAT) has allowed the customs duty refund claim paid through the Duty Entitlement Pass Book (DEPB) scrip.The bench of Ajay Sharma (Judicial Member) has observed that the department has failed to establish through any kind of document or case law that debit of any amount under the DEPB scheme is not a mode of payment...

Freight Charges Are Not Includible In Assessable Value Of Liquid Carbon Dioxide: CESTAT

The Delhi Bench of the Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has ruled that freight charges are not deductible from the assessable value of liquid CO2, despite the fact that they were separately charged in the invoices and the gas was sold at the time of clearance from the appellant's factory.The two-member bench of Rachna Gupta (Judicial Member) and P. Venkata Subba...

Credit Accumulated Due To Clearance Of Excisable Goods, Bar Of Unjust Enrichment Is Not Attracted: CESTAT

The Delhi Bench of the Customs, Excise and Service Tax Appellate Tribunal (CESTAT) has observed that the credit has been accumulated due to the clearance of excisable goods during the Excise Law Regime for export and that the bar of unjust enrichment is not attracted.The bench of Anil Choudhary (a Judicial Member) found that the appellant had not begun production or manufacturing activities,...

Onus To Prove The Goods Were Smuggled Lies On The Department: CESTAT

The Delhi Bench of the Customs, Excise and Service Tax Appellate Tribunal (CESTAT) has ruled that the department bears the burden of proving that the goods are smuggled.The bench of Anil Choudhary (a judicial member) has observed that the show cause notice is vague as the valuation of the goods has been done by the Revenue without any relied-upon documents, i.e., copy of any retrieved...

Scrap Neither Generated From Manufacturing Nor From Cenvatable Input/Capital Goods, No Excise Duty Payable: CESTAT

The Ahmedabad Bench of the Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has observed that excise duty is not payable on scrap, which is neither generated from the manufacturing process nor generated from the cenvatable input or capital goods.The two-member bench of Ramesh Nair (Judicial Member) and Raju (Technical Member) has observed that the Show Cause Notice was baldly...

Allegations based on assumptions In The SCN : CESTAT Deletes Penalty

The Kolkata Bench of the Customs, Excise and Service Tax Appellate Tribunal (CESTAT) has held that the allegation of clandestine manufacture and removal of finished goods by the Appellant made in the Show Cause Notice was merely based on assumption and presumption.The bench of P.K. Choudhary (a judicial member) has observed that the charge of clandestine clearance is a serious charge, and...

Purchase Of ATM within India: CESTAT Deletes Penalty Under Customs Act Against CitiBank

The Mumbai Bench of the Customs, Excise and Service Tax Appellate Tribunal (CESTAT) has deleted the penalty under the Customs Act against CitiBank on the purchase of an ATM within India.The two-member bench of Suvendu Kumar Pati (Judicial Member) and Sanjeev Shrivastava (Accountant Member) has observed that a transaction concerning the purchase of an item within India, which is unrelated to...

Tax Cases Weekly Round-Up: 20 November to 26 November 2022

Supreme CourtSupreme Court Declines To Grant Relief In Department's SLP Against Judgement On Countervailing Duty Case Title: Union of India versus Real Strips Ltd. The Supreme Court adjourned without issuing notice, the department's appeal against the Gujarat High Court's judgement in the case of countervailing duty (CVD). The bench of Justice Sanjeev Khanna, and Justice J...

CBEC Not Empowered To Modify the Scope of Exemption Notification issued by the Central Government: CESTAT

The Delhi Bench of the Customs, Excise and Service Tax Appellate Tribunal (CESTAT) has held that the Central Board of Excise and Customs (CBEC) is not empowered to modify the scope of an exemption notification that the Central Government has issued.The two-member bench of Rachna Gupta (Judicial Member) and P.V. Subba Rao (Technical Member) has observed that the exemption notification is issued...

External Hard Disk Drives Eligible For Concessional Rate Of Additional Customs Duty: CESTAT

The Mumbai Bench of the Customs, Excise and Service Tax Appellate Tribunal (CESTAT) has reiterated that import of external/portable hard disk drives are eligible for concessional rate of additional customs duty, as provided under Notification No. 6/2006-CE, dated 1st March 2006, and Notification No. 12/2012-CE, dated 17th March 2012. Referring to the various judgments passed by...

Payment On One-Time Premium/Aalami Can't Be Charged To Service Tax Under Renting Of Immovable Property: CESTAT

The Ahmedabad Bench of the Customs, Excise and Service Tax Appellate Tribunal (CESTAT) has held that the payment of a one-time premium or salami cannot be charged to service tax under the heading "renting of immovable property service."The two-member bench of Ramesh Nair (judicial member) and Raju (technical member) has observed that service tax under Section 65(105)(zzzz) read with...

No Service Tax Payable On Security Deposit Taken From Customers Towards Trading Of Shares: CESTAT

The Ahmedabad Bench of the Customs, Excise and Service Tax Appellate Tribunal (CESTAT) has held that service tax is not payable on security deposits taken from customers towards the trading of shares.The two-member bench of Ramesh Nair (judicial member) and Raju (technical member) has observed that the amount is refundable and was towards security deposits and was not for the purpose of...