C&F Agent Service Is Admissible Input Service Under Cenvat Credit Rules: CESTAT

The Ahmedabad Bench of the Customs, Excise and Service Tax Appellate Tribunal (CESTAT) consisting of Ramesh Nair (Judicial Member) has held that the C & F Agent Service is an admissible input service in the terms of Rule 2(l) of the Cenvat Credit Rules, 2004. The appellant submitted that in respect of C & F Agent service, the service is provided up to the place of removal. As...

Empty Packaging Material Of Cenvatable Input Is Not Liable For Payment Of Excise Duty Or Cenvat Credit: CESTAT

The Ahmedabad Bench of the Customs, Excise and Service Tax Appellate Tribunal (CESTAT) consisting of Ramesh Nair (Judicial Member) has held that empty packaging material of cenvatable input is not liable for payment either as excise duty or as cenvat credit under Rule 6(3) of the Cenvat Credit Rules, 2004. The appellant/assessee submitted that the adjudicating authority and...

Exporter Not liable For 'Change Of Landing Port' Instructions Given By Importer: CESTAT

The Ahmedabad Bench of the Customs, Excise and Service Tax Tribunal (CESTAT) has ruled that the exporter is not responsible for the instructions given by the importer regarding the change in the port after the issuance of a "Let Export Order" by the customs authority. The two-member bench of Ramesh Nair (Judicial Member) and Raju (Technical Member) has observed that the appellant lost...

Limitation Period Is Not Applicable On Personal Ledger Account: CESTAT

The Ahmedabad Bench of the Customs, Excise and Service Tax Appellate Tribunal (CESTAT) has held that the limitation period is not applicable on personal ledger accounts (PLA). The bench of Ramesh Nair (Judicial Member) has observed that in the case of PLA balance, it is not deposited as a duty but it is deposited as an advance towards the duty. The PLA amount takes the colour of...

Licit Possession Of Confisticated Gold Bars Received By Way Of Succession: CESTAT Set Aside Penalty

The Delhi Bench of Customs, Excise and Service Tax Appellate Tribunal (CESTAT) has set aside the penalty under section 114AA of the Customs Act on the ground of licit possession of confisticated gold bars received by way of succession. The two-member bench of Anil Choudhary (Judicial Member) and Raju (Technical Member) has observed that the appellant has reasonably explained the...

No Suppression Of Facts, Show Cause Notice Based On Balance Sheet: Karnataka High Court

The Karnataka High Court bench of Justice P.S. Dinesh Kumar and Justice Anant Ramanath Hedge has held that the assessee is not liable for the suppression of facts as the show cause notice was issued on the basis of the disclosures made in the balance sheet.The respondent/assessee is in the business of manufacturing and clearing turbochargers, electric motors, transformers, etc....

Extended Period Of Limitation Can Be Invoked Only When "Suppression Of Facts" Is Wilful To Evade Tax :CESTAT

The Allahabad Bench of the Customs, Excise and Service Tax Appellate Tribunal (CESTAT) has held that even when an assessee has suppressed facts, the extended period of limitation can be evoked only when "suppression" is shown to be wilful with intent to evade the payment of service tax. The two-member bench headed by Justice Dilip Gupta (President) and Raju (Technical Member) has...

Empty Packaging Material Of Cenvatable Input Is Not Liable For Payment As Excise Duty Or As CENVAT Credit: Reiterates Ahmedabad CESTAT

The Ahmedabad Bench of CESTAT has ruled that empty packaging material of cenvatable input is not liable for payment either as excise duty or as CENVAT credit under Rule 6(3) of the CENVAT Credit Rules, 2004. The Single Bench of Judicial Member Ramesh Nair held that the assessee was not liable to pay any amount on the clearance of the said empty drums. The revenue authorities had...

Short Payment Of Excise Duty Is Not Sufficient To Invoke The Extended Period: CESTAT

The Mumbai Bench of the Customs, Excise and Service Tax Appellate Tribunal (CESTAT) consisting of Ajay Sharma (Judicial Member) has held that a short payment of excise duty is not sufficient in order to invoke the extended period.The appellant/assessee is in the business of manufacturing colour TVs, LCDs, LEDs, washing machines, split air conditioners, and their spare parts. The...

Scrap Generated After The Process Of Manufacture Is Not Includible In Assessable Value Of The goods Cleared By The Job Worker: CESTAT

The Chennai Bench of Customs, Excise and Service Tax Appellate Tribunal (CESTAT) has ruled that the scrap is generated after the process of manufacture and the same is not includible in the assessable value of the goods cleared by the job worker to the principal manufacturer.The appellants/assessee are engaged in the manufacture of tractor parts and components on a job work basis for...

TCS Collected Under Income Tax Act On Sale Of Goods Cannot Be Included In The Assessable Value For Charging Excise Duty: Ahmedabad CESTAT

The Ahmedabad Bench of CESTAT has ruled that the amount of TCS collected under theIncome Tax Act, 1961 on the sale of goods cannot be considered as an additional consideration flowing to the assessee from the buyer of the goods and, therefore, the TCS collected by the assessee cannot be included in the assessable value for charging Excise Duty. The Bench, consisting of Mr. Ramesh...

Tax Cases Weekly Round-Up: 19 June To 25 June, 2022

Delhi High Court Right To File Objection To SCN Can't Be Denied Due To One Day Delay: Delhi High Court Case Title: Ernst & Young, US LLP Versus ACIT Citation: 2022 LiveLaw (Del) 586 The Delhi High Court bench of Justice Manmohan and Justice Manmeet Pritam Singh Arora ruled that the right to file an objection to the Show Cause Notice cannot be denied owing to a...