Customs Act | 'Prohibition Includes Restriction': CESTAT Chennai Holds S.111(d) Covers Both Complete & Partial Restricted Imports

The Chennai Bench of Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) held that under Section 111(d) of the Customs Act, the term 'prohibition' includes both complete and partial restrictions under the Foreign Trade Policy. Hence, restricted goods imported without fulfilling mandatory conditions are treated as prohibited, which attracts confiscation and a penalty. Section 111(d) of the Customs Act, 1962, makes goods liable for confiscation if they are imported, or attempted...

Railway Receipts & STTG Certificates Are Valid Documents For Availing CENVAT Credit Before 27.08.2014: CESTAT Kolkata

The Kolkata Bench of Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) held that railway receipts and STTG (Service Tax Certificate for Transportation of Goods) Certificates are valid documents for taking CENVAT (Central Value Added Tax) Credit even prior to 27.08.2014. R. Muralidhar (Judicial Member) and K. Anpazhakan (Technical Member) opined that the STTG Certificates issued by the Railways have been prescribed as a document for availing credit with effect from...

Refund Cannot Be Denied When CA Certificate & Ledger Confirms Excess Excise Duty: CESTAT Kolkata

The Kolkata Bench of Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) held that the assessee is entitled to a refund of excess excise duty since both the Chartered Accountant's certificate and the ledger clearly established that the duty was paid in excess and was never passed on to any third party. R. Muralidhar (Judicial Member) and K. Anpazhakan (Technical Member) observed that the assessee has filed a Chartered Accountant's Certificate, which certifies that excise duty...

Customs Brokers Regulations | Broker Cannot Be Penalised Solely For Exporter's Misdeclaration: CESTAT Principal Bench

The Customs, Excise & Service Tax Appellate Tribunal (CESTAT), Principal Bench, New Delhi, has set aside the revocation of a Customs Broker licence, holding that mis-declaration of goods by the exporter, by itself, does not establish violation of obligations under the Customs Broker Licensing Regulations (CBLR), 2018. A Bench comprising Justice Dilip Gupta (President) and P.V. Subba Rao (Member – Technical) allowed the appeal filed by the assesse, M/s Silver Line Global Freight Pvt....

Customs | Direct Reliance On NIDB Data For Re-Assessment Of Import Value Not Permissible: CESTAT Kolkata

The Kolkata Bench of Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has stated that Customs cannot directly rely on NIDB (National Import Database) data to enhance import value. R. Muralidhar (Judicial Member) and K. Anpazhakan (Technical Member) noted that the adjudicating authority straightaway has re-determined the value on the basis of NIDB data retrieved, indicating the Bill of Entry and the description of the goods, which is legally not maintainable. In the...

Separate Proceedings Under Customs Act Not Permissible Once CBLR Proceedings Are Initiated: CESTAT Kolkata

The Kolkata Bench of Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has stated that separate proceedings under the Customs Act are not permissible once CBLR (Customs Brokers Licensing Regulations, 2018) proceedings are initiated. R. Muralidhar (Judicial Member) and K. Anpazhakan (Technical Member) opined that once separate proceedings have been initiated against the assessee under CBLR, 2018, for violation of the provisions of the said Regulations, no separate penalty is...

Pan Masala, Tobacco Profits Invested In Mutual Funds Not 'Trading In Securities', Service Tax Not Applicable: CESTAT Delhi

The Delhi Bench, Customs, Excise and Service Tax Appellate Tribunal (CESTAT) has set aside service tax demand on the activity of investing in Mutual Funds as such activities undertaken by Godfrey Phillips India Limited (Appellant) would be different from 'trading in securities' and cannot be considered as an exempted service in terms of section 66D(e) of the Finance Act. In an order dated December 05, 2025 the Bench comprising Justice Dilip Gupta (President) and Shri. P..V. Subba Rao...

Service Tax | No Reverse Charge Liability On Software Maintenance Consumed Abroad; Hotel Expenses Not 'Sponsorship Services': CESTAT Bangalore

The Customs, Excise & Service Tax Appellate Tribunal (CESTAT), Bangalore has held that no Service Tax liability can be applied under the reverse charge mechanism on an Indian branch where the software maintenance services were contracted, received and consumed entirely outside India. The Tribunal further held that payments made towards hotel expenses of guests cannot be treated as taxable “Sponsorship Services”. A Division Bench comprising P.A. Augustian (Judicial Member) and R. ...

Foreign Markings On Gold Biscuits Not Enough To Prove Smuggling: CESTAT Kolkata Sets Aside Confiscation

The Kolkata Bench of Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has held that the foreign markings available on the gold biscuits are not sufficient to establish the smuggled nature of the gold. R. Muralidhar (Judicial Member) and K. Anpazhakan (Technical Member) opined that the gold recovered from the assessee was neither established to be of foreign origin nor established to be smuggled in contravention of the provisions of the Customs Act, 1962. Thus, the gold ...

Staff Reimbursement, Training, And Hospital Management In Joint Venture Not Taxable Under Service Tax: CESTAT Chennai

The Chennai Bench of Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has stated that staff reimbursement, training, and hospital management in a joint venture are not taxable under the service tax. P. Dinesha (Judicial Member) and Vasa Seshagiri Rao (Technical Member) stated that the receipts characterised as “royalty”/“management fee” are integrally connected with the provision of healthcare services and do not constitute a separate taxable Management or Business...

Revenue-Sharing With Diagnostic Labs Not 'Business Support Service': CESTAT Sets Aside Service Tax Demand

The Customs, Excise and Service Tax Appellate Tribunal (CESTAT), Chandigarh has held that revenue-sharing arrangements between a hospital and diagnostic service providers (DSPs) do not amount to provision of “Business Support Service” (BSS) under the Finance Act, 1994, and are therefore not liable to service tax. A Division Bench comprising Justice S.S. Garg (Judicial Member) and P. Anjani Kumar (Technical Member) allowed the appeal filed by the assessee, NC Jindal Institute of Medical...

Zinc EDTA Is Fertiliser, Not A Chemical; Lower Customs Duty Applicable: CESTAT Chennai

The Chennai Bench of Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has stated that Zinc EDTA is classifiable as a fertiliser under Customs Tariff Item (CTI) 3105 9090, and not a chemical salt under CTI 29224990 as stated by the revenue.Ajayan T.V. (Judicial Member) and Ajit Kumar (Technical Member) noted that Zinc EDTA contains Nitrogen, which is an essential fertilising element. The Tribunal further stated that …….as per Note 6 to Chapter 31, for the purposes of CTH...