Freshly Manufactured Goods Cannot Replace Re-Imported Goods For Customs Duty Exemption: CESTAT Kolkata

The Customs, Excise and Service Tax Appellate Tribunal (CESTAT), Kolkata has ruled that goods re-imported for repairs cannot be replaced with freshly manufactured goods to claim customs duty exemption, even if they match in description and quality. Dismissing Crescent Foundry Company Private Limited's appeal, the tribunal held that Notification No. 158/95-Cus. requires the same goods to be re-exported after repairs or reconditioning.“This condition makes it clear that the goods which are to be...

Calcutta High Court Declines To Hear Plea Alleging Torture By DRI Officials, Says Matter Falls Under Revenue Bench

A Calcutta High Court bench has declined to hear a plea alleging that Directorate of Revenue Intelligence (DRI) officials tortured three individuals during interrogation and forced them to execute an affidavit and declaration. The court held that the main challenge concerned customs summons and fell under the roster dealing with revenue matters.“Considering the above and going through the summons and the averments made in the petition, this court finds that the petitioners have mainly challenged...

Service Tax On Construction Services Payable On Actual Receipts, Not Accruals: CESTAT Kolkata

The Customs, Excise and Service Tax Appellate Tribunal (CESTAT), Kolkata, has remanded a ₹11,98,511 service tax demand against Britannia Engineering Ltd., holding that liability for the relevant period must be calculated on actual receipts rather than accruals. The dispute covers financial years 2006-07 to 2008-09, spanning the introduction of Works Contract Service as a separate taxable category from June 1, 2007. “Service tax is to be discharged on the receipt of the amount,” a bench of...

Supreme Court Issues Notice On Birla Sun Life Insurance's Plea Against Service Tax On Life Insurance Charges

The Supreme Court on Friday issued notice on Birla Sun Life Insurance Co. Ltd.'s special leave petition challenging a Customs, Excise and Service Tax Appellate Tribunal (CESTAT), Mumbai order that partly upheld service tax demands on charges collected from life insurance policyholders. The Tribunal, in its April 10, 2026 order, set aside service tax demands on surrender, discontinuation and foreclosure charges, relying on its earlier rulings in similar cases involving life insurance companies. ...

GTA Service Tax Cannot Be Demanded From Transporter If Recipient Paid Under RCM: CESTAT Kolkata

The Kolkata bench of the Customs, Excise and Service Tax Appellate Tribunal has held that service tax on Goods Transport Agency services was payable by recipient companies under the reverse charge mechanism where they paid the freight.The court held that demanding the same tax from the transporter again would amount to double taxation where the recipients had discharged the liability.“Thus, we find that as per notification No. 30/2012-ST, dated 20.06.2012, in respect of transportation of goods...

Contract Manufacture Of Alcoholic Liquor For Another Entity Attracts Service Tax: CESTAT Delhi

The Customs, Excise and Service Tax Appellate Tribunal, New Delhi has held that manufacture of alcoholic liquor for human consumption undertaken by one entity on behalf of another is liable to service tax after alcoholic liquor was excluded from the negative-list entry with effect from June 1, 2015. Relying on the Delhi High Court's ruling in Carlsberg India Pvt. Ltd. v. Union of India, the tribunal held, "We find that section 66D of Finance Act, 1994 deals with the negative list of the...

Customs Dispute Over Car, Cash Confiscation Go To CESTAT, Not Revision Authority: Madras High Court

The Madras High Court on 1 October held that a customs dispute concerning confiscation of a vehicle and Indian currency seized in connection with alleged gold smuggling has to be challenged before the Customs, Excise and Service Tax Appellate Tribunal (CESTAT), and not through a revision application before the Central Government. Justice C. Saravanan granted S. Michael Kennadi liberty to approach the CESTAT against the First Appellate Authority's order, while declining to interfere with the...

Civil Work Contract Not Manpower Supply Service Merely Because Contractor Deploys Own Workers: CESTAT Kolkata

The Customs, Excise and Service Tax Appellate Tribunal (CESTAT), Kolkata has held that civil work billed according to the work performed could not be treated as “Manpower Service” where the contractor's billing was not based on the number of workers or man-days deployed. The tribunal found that the consideration was linked to the civil work carried out at the railway siding, rather than the manpower deployed.“From the above Work Order, we find that the service provider is not charging any amount...

Providing Access To Government Data Through Its Portal Not OIDAR Service: CESTAT Delhi

The Customs, Excise and Service Tax Appellate Tribunal (CESTAT), New Delhi has set aside service tax demands against MP Online Ltd., holding that the company did not provide Online Information and Database Access or Retrieval (OIDAR) services merely by operating a portal through which Madhya Pradesh Government data could be accessed.The Bench of Officiating President Dr. Rachna Gupta and Technical Member P.V. Subba Rao held that MP Online only provided a network through which government data...

CENVAT Credit On Reverse Charge Service Tax To Be Refunded In Cash Under CGST Act: CESTAT Delhi

The Customs, Excise & Service Tax Appellate Tribunal (CESTAT), New Delhi has held that any CENVAT credit accruing to Northern Coalfields Ltd. on payment of service tax under the reverse charge mechanism has to be refunded in cash under Section 142 of the CGST Act after the GST regime came into force.The ruling came in a batch of five appeals filed by Northern Coalfields against service tax demands on payments made to the Madhya Pradesh government towards Rural Infrastructure and Road...

Madras High Court Sets Aside Customs Broker Suspensions, Says 'Immediate Action' Must Be Timely

The Madras High Court has set aside the suspension of licenses of 11 Customs Brokers, holding that the power to order “immediate suspension” cannot be exercised after an unexplained or substantial delay.Justice Hemant Chandangoudar held that while “immediate” does not mean that the suspension must be ordered instantaneously, the Customs authorities must act with reasonable promptness once the material necessary for taking action is available.The Court was hearing a batch of writ petitions filed...

Purchase Order Date Cannot Determine Import Date For Project Import Duty Benefit: Madras High Court

The Madras High Court has ruled that a purchase order placed with a foreign supplier before registration of a project contract does not, by itself, determine whether imported goods qualify for the Project Import benefit. The relevant date is when the goods are imported into India, subject to the other requirements under the Project Import Regulations, 1986.“The mere fact that a purchase order was placed before registration of the project contract cannot, by itself, determine the date of...