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...

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...