No Service Tax Payable On Sale Of Ready-Mix-Concrete: CESTAT

The Ahmedabad Bench of the Customs, Excise and Service Tax Appellate Tribunal (CESTAT) has held that the entire exercise is the sale of ready-mixed concrete (RMC) and there is no service element involved so as to create service tax liability against the assessee.The two-member bench of Ramesh Nair (judicial member) and Raju (technical member) has observed that the department has very...

Service Tax Under RCM For Works Contract Service Not Applicable on Corporate Assesses: CESTAT

The Kolkata Bench of the Customs, Excise, and Service Tax Appellate Tribunal (CESTAT), consisting of P.K. Chaudhary (Judicial Member), has held that the notification levying service tax under the reverse charge mechanism (RCM) for works contract service shall be applicable only to individuals, partnership firms, and Hindu Undivided Families (HUF), and not to corporate...

Tax Cases Weekly Round-Up: 13 November To 19 November 2022

Supreme CourtSec.194H Income Tax Act Attracted For 'Supplementary Commission' Earned By Travel Agents ; Airlines Liable To Deduct TDS : Supreme CourtCase Title: Singapore Airlines Ltd. vs C.I.T., Delhi Citation: 2022 LiveLaw (SC) 959 The Supreme Court held that Section 194H of the Income Tax Act is attracted in the case of Supplementary Commission amounts earned by the travel agent...

Not a bonfide importer, Paid For Making Forged Licences To Clear Bills of Entry: CESTAT

The Delhi Bench of the Customs, Excise and Service Tax Appellate Tribunal (CESTAT) has found that the appellant has not paid duty to the government exchequer but instead paid a percentage of the amount equivalent to the duty to the firms for making forged licences to clear the bills of entry.The two-member bench headed by Justice Dilip Gupta (President) and P.V. Subba Rao (Technical Member)...

CESTAT Allows Interest On Delay In Refund Of Excess Reversal Of CENVAT Credit

The Ahmedabad bench of the Customs, Excise & Service Tax Appellate Tribunal (CESTAT) has ruled that Reliance Industries is entitled to interest on delay in refund of excess reversal of CENVAT credit. The bench of Judicial Member Ramesh Nair dismissed the contention of the revenue department that since the assessee- Reliance Industries, was entitled to adjust the excess amount...

Service Tax Leviable On Policy Administration Charges From 1 May, 2011: CESTAT

The Delhi Bench of the Customs, Excise and Service Tax Appellate Tribunal (CESTAT) has held that service tax is leviable on policy administration charges with effect from 01.05.2011.The two-member bench of Anil Choudhary (Judicial Member) and P.V. Subba Rao (Technical Member) has observed that in view of the clarification by the Board in TRU Circular dated 26.02.2010, 2010, policy...

Time Limit To Refer Statement Of Case By CESTAT To High Court, Under Section 130A (4) Of The Customs Act, Is Directory: Bombay High Court

The Bombay High Court has ruled that the time limit within which the Customs Excise and Service Tax Appellate Tribunal (CESTAT) is required to refer the statement of the case to the High Court, as prescribed in Section 130A (4) of the Customs Act, 1962, is only directory and not imperative in nature. The Division Bench of Justices K.R. Shriram and A.S. Doctor held that the CESTAT is...

Cenvat Credit Can't Be Denied Merely For Non-Registration Of Input Service Distributor : CESTAT

The Chennai Bench of the Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has held that cenvat credit cannot be denied on the grounds of non-registration of input service distributor registration in respect of bank charges and chartered accountant services.The bench of Sulekha Bevi C.S. (Judicial Member) observed that there is nothing in the statutory rules to disentitle...

No Excise Duty Can Be Demanded On Semi-Finished Goods Lying At The Time Of Debonding Of 100% EOU: CESTAT

The Ahmedabad Bench of the Customs, Excise and Service Tax Appellate Tribunal (CESTAT) has held that excise duty cannot be demanded on semi-finished goods or work in process lying at the time of debonding of 100% Export Oriented Units (EOU).The two-member bench of Ramesh Nair (Judicial Member) and Raju (Technical Member) has observed that at the intermediate stage when the goods are not...

Finished Goods Destroyed In Fire; Bajaj Herbals Eligible For Remission Of Excise Duty: CESTAT

The Ahmedabad Bench of the Customs, Excise and Service Tax Appellate Tribunal (CESTAT) has held that Bajaj Herbals was eligible for remission of duty on the finished goods destroyed in the fire incident.The bench of Ramesh Nair (Judicial Member) has observed that short circuits are a usual cause of fire in the majority of cases; therefore, the fire due to a short circuit cannot be attributed...

Intentional Short Payment Of Excise Duty: CESTAT Upholds Penalty

The Ahmedabad Bench of the Customs, Excise and Service Tax Appellate Tribunal (CESTAT) has upheld the penalty under Section 11AC of the Central Excise Act, 1944, on the ground of intentional short payment of excise duty.The bench of Ramesh Nair (judicial member) observed that once the appellant had obtained the NOC and the unit was debonded, they intentionally avoided the payment of short...

No Service Tax Payable On Facility Charges Attributable To Electricity Expenses: CESTAT

The Delhi Bench of the Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has held that service tax is not payable on the amount received as facility charges as it was wholly attributable to electricity expenses, which have been shared proportionately by the assessee and its sister concerns.The bench of Anil Choudhary (judicial member) has observed that electricity is a good and not...