Service Tax | Sale Of Popcorn & Beverages At Cinema Counters Is Not Service, No Service Tax Payable: CESTAT Delhi

The Delhi Bench of the Customs, Excise and Service Tax Appellate Tribunal has set aside a service tax demand of over ₹18.84 crore against assessee, holding that the sale of food and beverages such as popcorn, snacks and soft drinks at cinema counters amounts to sale of goods and does not involve any element of “service” under the Finance Act, 1994. A Bench comprising Judicial Member Binu Tamta and Technical Member P.V. Subba Rao was hearing an appeal filed by M/s Cinepolis India...

Centre Imposes Anti-Dumping Duty On 2-Ethyl Hexanol Imports From EU, US, Korea, Others Till June 2026

The Ministry of Finance, Department of Revenue has imposed Anti-Dumping Duty on imports of “2-Ethyl Hexanol” from European Union, Indonesia, Korea RP, Malaysia, Taiwan and United States of America till June 26, 2026. 2-Ethyl Hexanol. 2-Ethyl Hexanol is a basic organic chemical. It is produced on a massive scale for use in numerous applications such as solvents, flavours, and fragrances and especially as a precursor for production of other chemicals such as emollients and plasticizers. ...

Customs | ELISA Kits For Food Testing Qualify As 'Diagnostic' For Exemption: Delhi High Court Grants Interim Relief To Importer

The Delhi High Court, in a matter involving claim of Customs Duty exemption on import of Enzyme linked Immuno Absorbent Assay (ELISA) Kits for antibiotic testing in food as 'diagnostic kits' will hear the plea by food safety importers in January 2026. Recently, a Division Bench comprising, Justice Prathiba M. Singh and Justice Shail Jain were hearing an appeal by the importer against denial of the exemption by Delhi, Customs, Excise and Service Tax Appellate Tribunal (CESTAT). The Delhi...

Tax Paid During Probe Must Be Refunded Once No Liability Found: Chhattisgarh High Court Allows Service Tax Refund

The High Court of Chhattisgarh has allowed a service tax appeal filed by an assessee, setting aside orders passed by the department and the Customs, Excise and Service Tax Appellate Tribunal (CESTAT) which had rejected a refund claim as time-barred under Section 102(3) of the Finance Act, 1994 . A Division Bench of Justice Rajani Dubey and Justice Amitendra Kishore Prasad was hearing an appeal challenging CESTAT's order that denied refund of ₹14.89 lakh deposited by the assessee during...

Customs | Export Of Rare Earth Elements Like Garnet Barred: CESTAT Ahmedabad Cites Dept Of Atomic Energy Circular

The Ahmedabad Bench of Customs, Excise and Service Tax Appellate Tribunal (CESTAT) has held that export restrictions on garnet, whether found along beaches or inland places without involving canalising agency i.e. Indian Rare Earths Limited (IREL) was banned. In a recent ruling, the coram of Dr. Ajaya Krishna Vishvesha (Judicial Member) and Mr. Satendra Vikram Singh (Technical Member) referred to a 2020 Circular issued by the Department of Atomic Energy to state that DGFT imposed ...

Ponchos Classified As Capes, Not Scarves; CESTAT Chandigarh Upholds Customs Reclassification, Higher Duty Applicable

The Chandigarh Bench of Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) held that imported ponchos are correctly reclassified under CTH 6102 as capes, rejecting the assessee's claim of them being scarves. S.S. Garg (Judicial Member) and P. Anjani Kumar (Technical Member) opined that when the expert has given a report on the impugned goods, the same cannot be brushed aside without any substantial evidence to counter the same. In the case at hand, the assessee/appellant...

Excise | Dietary Supplements Not Pharma Products, CESTAT Delhi Orders Recovery Of ₹1.63 Crore And Personal Penalty On Plant Head

The Delhi Bench, Customs, Excise and Service Tax Appellate Tribunal (CESTAT) has held that Dietary Supplements were not food products, not pharmaceuticals, hence not eligible for area-based excise exemption. A Bench comprising Smt. Binu Tamta (Judicial Member) and Shri. P.V. Subba Rao (Technical Member), dismissed the appeal filed by Pharmaceutical Company by upholding demand of ₹1.63 crore duty with interest as well as penalty equal to duty on the Company and personal penalty on Plant...

Customs Act | Penalty U/S 114A Bars Private Warehouse Licence Even Without Criminal Conviction: CESTAT Allahabad

The Allahabad Bench of the Customs, Excise and Service Tax Appellate Tribunal (CESTAT) has dismissed appeals thereby upholding the Customs Department's decision rejecting the company's applications for a private warehousing licence and permission to carry out manufacturing operations under the Customs Act, 1962. A Bench comprising Judicial Member S.K. Mohanty and Technical Member Sanjiv Srivastava was hearing the appeals against orders passed by the Commissioner (Appeals), Customs,...

No Break-Up, No VAT Proof: CESTAT Allahabad Upholds ₹2.19 Crore Service Tax Demand Against Lakmé Franchise Beauty Salon

The Allahabad Bench of Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) held that in the absence of any documentary break-up between service receipts and retail sale of goods, the entire receipts of the Lakme Franchise beauty salon are liable to service tax. P. Dinesha (Judicial Member) and Sanjiv Srivastava (Technical Member) stated that no Notes on Accounts, which would have been part of the audited balance sheet/ profit and loss account, showing the proceeds from the...

Customs | Mere Location Of DRI Or Central Revenues Control Lab In Delhi Doesn't Confer Jurisdiction: Delhi High Court

The Delhi High Court has held that merely because DRI headquarters or Central Revenues Control Laboratory (CRCL) are located in Delhi does not confer jurisdiction upon it to deal with Customs disputes arising in Tamil Nadu.A division bench of Justices Prathiba M. Singh and Renu Bhatnagar made the observation while dealing with the case of Petitioners, situated in Chennai, but challenging seizure memos in Delhi on the ground that its goods were tested at CRCL, Delhi.The judges observed,“The...

CESTAT Mumbai Holds Amendment Of Bills Of Entry U/S 149 Customs Act Is Legally Recognised Mode Of Modifying Assessment

The Mumbai Bench of the Customs, Excise and Service Tax Appellate Tribunal (CESTAT) has allowed an appeal filed by Drive India Enterprises Solutions Ltd., setting aside an order passed by the Commissioner of Customs (Appeals) which had rejected a refund of excess countervailing duty (CVD) paid on imported mobile handsets. A Bench comprising Customs, Excise and Service Tax Appellate Tribunal Member (Technical) M.M. Parthiban held that once the Bills of Entry were reassessed and amended...

Extension Of Time To Adjudicate SCN U/S 28 Customs Act Need Not Be Communicated To Importer: Delhi High Court

The Delhi High Court has held that the Customs Department need not communicate to an importer that the time for adjudicating a show cause notice issued to it has been extended by virtue of Section 28(9) of the Customs Act, 1962.Section 28(9) sets time limits for the Customs officer to finalize demand proceedings after issuing SCN for unpaid/short-levied duty, requiring determination within six months for normal cases (S. 28(1)) and one year for specific cases (S. 28(4)). The provision allows...