Exporter Can't Be Denied CENVAT Credit Solely For Lack Of Service Tax Registration: CESTAT Hyderabad

The Hyderabad Bench of the Customs, Excise and Service Tax Appellate Tribunal (CESTAT) has held that service tax registration is not a pre-condition for taking CENVAT credit where a taxpayer was exclusively engaged in the export of services and not liable to pay service tax. A bench of Judicial Member Angad Prasad and Technical Member A.K. Jyotishi held a plain reading of the statutory framework did not support the department's stand that such credit could be denied solely because the taxpayer...

Customs Can Rely On Additional Documents Showing Wrong Export Declarations For Reassessment: CESTAT Hyderabad

The Hyderabad Bench of the CESTAT has held that Customs authorities can rely on subsequently obtained documents to revisit self-assessed export shipping bills if those documents reveal wrong declarations made at the time of export. A bench of Judicial Member Angad Prasad and Technical Member A.K. Jyotishi observed: “Essentially, on the issue of whether in the case of re-assessment, the department can resort to various other information, which came to their knowledge subsequently and demand...

CESTAT Delhi Sets Aside Penalty Against Company As No Proof It Knew Goods Were Liable To Confiscation

The Principal Bench of the Customs, Excise & Service Tax Appellate Tribunal (CESTAT), New Delhi has set aside a Rs.10 lakh penalty imposed on Rathi Iron & Steel Ind. Ltd., finding no material to show that the company had dealt with goods allegedly removed without payment of duty or had knowledge or belief that they were liable to confiscation. A bench of President Justice Dilip Gupta and Technical Member P. Anjani Kumar held,“The appellant had not dealt with the goods that may be liable...

Importer Cannot Contest Customs Reassessment After Accepting Enhanced Value: CESTAT Delhi

The Principal Bench of the Customs, Excise & Service Tax Appellate Tribunal (CESTAT), New Delhi, has dismissed an importer's challenge to enhancement of customs value after finding that it had accepted the revised valuation, paid duty, and cleared the goods without protest. A bench of President Justice Dilip Gupta and Technical Member P.V. Subba Rao distinguished the Delhi High Court's ruling in Niraj Silk Mills, where the importer had consistently protested the reassessment and sought...

CESTAT Delhi Holds GE Vernova's Imported Products Are Relays, Not Multifunctional Devices

The Principal Bench of the Customs, Excise & Service Tax Appellate Tribunal (CESTAT), New Delhi has held that four imported products of GE Vernova T&D India Ltd., including relay products with additional monitoring, data logging and alarm features, remain classifiable as “relays.” The tribunal held that their principal function continues to be protection and control of electrical systems. A bench of President Justice Dilip Gupta and Technical Member P.V. Subba Rao partly allowed...

CESTAT Ahmedabad Sets Aside CVD Demand On Imports Made Under Advance Authorisation During Transitional Period

The Ahmedabad Bench of the Customs, Excise & Service Tax Appellate Tribunal (CESTAT) has allowed appeals filed by Ratnaveer Stainless Products Pvt. Ltd., its director and a customs broker. The dispute concerned Countervailing Duty (CVD) liability on imports made under Advance Authorisation between September 7, 2017 and October 12, 2017. A bench of Judicial Member Dr. Ajaya Krishna Vishvesha and Technical Member Satendra Vikram Singh passed the order. Holding that the issue was “no more...

Supreme Court Refuses To Interfere With Relief To RSRTC In ₹16 Crore Service Tax Dispute

The Supreme Court has refused to interfere with a tribunal ruling that granted major relief to Rajasthan State Road Transport Corporation (RSRTC) in a long-running service tax dispute involving demands exceeding ₹16 crore over allegations that it operated as a “tour operator” and failed to pay tax on certain other services. A bench of Justice Dipankar Datta and Justice Satish Chandra Sharma dismissed an appeal filed by the Principal Commissioner of CGST and Central Excise, Jaipur, against a...

IOCL's Terminal Facilities For Crude Oil Storage At Barauni Attract Service Tax: Patna High Court

The Patna High Court has held that terminal facilities used by IOCL's Barauni Refinery for storing crude oil before onward transportation constituted an independent taxable service liable to service tax, and were not merely incidental to pipeline transportation. The court ruled, “If MOU creates a provision of a separate charge for 'discharge facility' or 'terminal facilities' or 'storing of crude oil' before entering into next phase of transportation for Bongaigaon Refinery then, it cannot be...

Licence Fee, Technical Assistance Charges Not Part Of Customs Value Unless Condition Of Sale: CESTAT Delhi

The Principal Bench of the Customs, Excise & Service Tax Appellate Tribunal (CESTAT), New Delhi has held that licence fees, engineering package charges, and technical assistance payments cannot be added to the assessable value of imported equipment where they are separately contracted and are not a condition of sale. A bench of Judicial Member Binu Tamta and Technical Member P.V. Subba Rao observed, “Law has been settled that once separate prices are provided for the supply of technical...

CESTAT Delhi Holds Glucometers Are Instruments For Chemical Analysis, Not Medical Diagnostic Devices

The Principal Bench of the Customs, Excise & Service Tax Appellate Tribunal (CESTAT), New Delhi, has allowed Aspen Diagnostics Pvt. Ltd.'s appeal against the customs department's attempt to reclassify its imported diagnostic devices, including glucometers, from instruments for chemical analysis to medical diagnostic instruments. The tribunal set aside the differential duty demand and penalties. A bench of Judicial Member Ashok Jindal and Technical Member K. Anpazhakan held that the issue...

CESTAT Ahmedabad Remands Customs Dispute Over Imported Goods' Classification As Thinner Or Solvent

The Customs, Excise & Service Tax Appellate Tribunal (CESTAT), Ahmedabad, has remanded a customs classification dispute involving imported petrochemical products. It found that the available laboratory reports did not conclusively establish whether the goods were general-purpose paint thinners or restricted petroleum hydrocarbon solvents. A bench of Judicial Member Dr. Ajaya Krishna Vishvesha and Technical Member Satendra Vikram Singh held that fresh testing was necessary. The bench...

CESTAT New Delhi Sets Aside ₹25 Lakh Customs Demand Against Vanesa Cosmetics In Classification Dispute

The New Delhi Principal Bench of the Customs, Excise and Service Tax Appellate Tribunal (CESTAT) on 18 May set aside customs duty demands exceeding Rs. 25 lakh against Vanesa Cosmetics Pvt. Ltd. holding that customs authorities cannot invoke the extended limitation period under the Customs Act merely because they disagree with the tariff classification adopted by the importer. President Justice Dilip Gupta and Technical Member P. Anjani Kumar allowed the company's appeal against an order passed...