No Interest On Excise Duty Payable In Revenue-Neutral Situation Even Though Duty Demand Attained Finality: Calcutta High Court

The Calcutta High Court held that statutory interest under Section 11AB of the Central Excise Act is not leviable where the entire transaction is revenue-neutral and the duty paid is available as Cenvat Credit to downstream units, causing no loss to the exchequer. Justices Rajarshi Bharadwaj and Uday Kumar stated that the Tribunal has recorded a clear finding that the situation is revenue-neutral, inasmuch as the duty paid by the assessee was available as Cenvat credit to its ...

Excise | Cutting/Slitting HR-CR Coils Not Manufacturing; Duty Paid On Non-Excisable Activity Cannot Make It Excisable: CESTAT Chennai

The Chennai Bench of Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) held that cutting and slitting of HR-CR coils does not amount to manufacture and therefore, payment of duty on such non-excisable activity cannot create a legal fiction to treat it as excisable. The bench further held that CENVAT (Central Value Added Tax) credit availed in respect of such activity is inadmissible, even if duty was paid. P. Dinesha (Judicial Member) and Vasa Seshagiri Rao (Technical ...

Service Tax | Co-Op Society Paying Rent Arrears To Local Municipality For Gas Transportation Pipeline Not Liable Under Reverse Charge : CESTAT Ahmedabad

The Ahmedabad Bench, Customs, Excise and Service Tax Appellate Tribunal (CESTAT) has quashed the demand of service tax by treating payment of Rs. 60 lakhs to Vallabh Vidhyanagar Municipal Corporation as rent arrears and not consideration for tolerating/refraining from an act. The Bench comprising, Dr. Ajaya Krishna Vishvesha (Judicial Member) and Mr. Satendra Vikram Singh (Technical Member) examined whether Rs. 60 lakhs paid to Municipal Administration of Vallabh Vidhyanagar i.e. Vallabh...

Centre Extends Anti-Dumping Duty On PET Resin Imports From China Till June 2026

The Ministry of Finance, Department of Revenue has extended imposition of Anti-Dumping Duty on imports of “imports of “Polyethylene Terephthalate” (PET) resin having an intrinsic viscosity of 0.72 decilitres per gram or higher” from China PR till June 26, 2026. The Anti-Dumping Duty Notification applies to PET resin having an intrinsic viscosity of 0.72 decilitres per gram or higher” falling under tariff items 3907 61 90 and 3907 69 90 of the First Schedule to the Customs Tariff Act. ...

Re-Look Into Composition, Usage, Product Patent, Similarity Of Sun Pharma's Muscle Relaxants For DTA Sales Entitlement: CESTAT Ahmedabad

The Ahmedabad Bench of Customs, Excise and Service Tax Appellate Tribunal (CESTAT), in a matter involving similarity of Muscle Relaxant sold domestically vis-à-vis exported by a Pharma major and benefit concessional duty thereof, has remanded back to the Adjudicating Authority for fresh consideration. Sun Pharmaceuticals Industries Limited, cleared/sold multiple products in Domestic Tariff Area (DTA) at concessional rate of duty in terms of Notification No. 23/2003-CE dated March...

Customs Officials Acting In Official Capacity Not Liable To Cross-Examination As Matter Of Right: Delhi High Court

The Delhi High Court has held that Customs officials discharging their duties in an official capacity are not liable to be cross-examined as a matter of right during adjudication proceedings under the Customs Act.A Division Bench of Justices Prathiba M. Singh and Shail Jain made the observation while partially allowing a writ petition challenging denial of Petitioner's request to cross-examine certain persons in a customs duty evasion case.As per the show cause notice, Petitioner was involved in...

Delhi High Court Allows Use Of Transitional CENVAT Credit For Mandatory Pre-Deposit Before CESTAT

The Delhi High Court, in a 'rare' scenario where an appeal was sought to be admitted before the CESTAT on the strength of pre-deposit made using through DRC-03, has clarified that pre-deposit was partial component of the demand just as tax, interest and penalty. In a recent judgment dated December 22, 2025, the Delhi High Court dealt with whether CENVAT credit transitioned into the GST regime as on July 01, 2017 could be utilised for the purpose of making pre-deposit or not. A ...

Customs Notifications Cannot Override FTP & HBP Benefits Once DGFT Grants Approval: CESTAT Chennai Grants Relief To Hyundai Motor

The Chennai Bench of Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) held that once benefits under the Foreign Trade Policy (FTP) and Handbook of Procedures (HBP) are granted by the Directorate General of Foreign Trade (DGFT), the same cannot be nullified by Customs through Notifications or Circulars issued under the Customs Act, 1962. Ajayan T.V (Judicial Member) and Ajit Kumar (Technical Member) stated that if the Central Government in its wisdom introduces a beneficial...

No Service Tax Payable On Laying Of Cables Under Or Alongside Roads: CESTAT Kolkata

The Kolkata Bench of Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) held that consideration received for laying of underground telecom/optical fibre cables under or alongside roads is not liable to service tax. Ashok Jindal (Judicial Member) and K. Anpazhakan (Technical Member) opined that the entire demand confirmed in the impugned order under these specific categories is not liable to Service Tax, as all the amounts received by the assessee pertain to laying of cables...

Remuneration Paid To Whole-Time Directors Treated As 'Salary'; Service Tax Not Leviable: CESTAT Chennai

The Chennai Bench of Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) held that remuneration paid to whole-time directors does not constitute a taxable service. Consequently, service tax under the reverse charge mechanism (RCM) is not leviable. P. Dinesha (Judicial Member) and Vasa Seshagiri Rao (Technical Member) opined that the remuneration paid to the Directors constitutes “salary” under an employer–employee relationship and is therefore not exigible to service tax. ...

Works Contract Service Provided To CESC For Transmission Or Distribution Of Electricity Not Liable To Service Tax: CESTAT Kolkata

The Kolkata Bench of Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) held that works contract service provided to Calcutta Electricity Supply Corporation (CESC) for transmission or distribution of electricity is not liable to service tax. Ashok Jindal (Judicial Member) and K. Anpazhakan (Technical Member) examined whether the works contract service provided by the assessee to Calcutta Electricity Supply Corporation (CESC) for transmission or distribution of electricity is...

Excise | No Suppression Where Credits Reflected In Statutory Returns; Extended Limitation Invalid; Indian Oil Petronas Wins CESTAT Appeal

The Chennai Bench of Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) held that when the availment of CENVAT credit is duly disclosed in statutory ER-1 returns and the assessee has regularly paid excise duty, allegations of suppression within the intent to evade duty cannot be sustained. P. Dinesha (Judicial Member) and Vasa Seshagiri Rao (Technical Member) stated that when the payment of duty remains undenied, and there is also no denial of the returns being filed by the...