CESTAT Allahabad Upholds ₹5.22 Lakh Service Tax Demand, Holds Services To Non-Educational Institutions Not Exempt

The Allahabad bench of the Customs, Excise and Service Tax Appellate Tribunal (CESTAT) has recently upheld a service tax demand of ₹5.22 lakh, along with interest and penalties, against DK Infosolutions Pvt. Ltd. It held that the company was not entitled to claim exemption meant for services provided to educational institutions because its services were rendered to commercial entities. A single-member bench of Technical Member Sanjiv Srivastava dismissed the company's appeal. The tribunal...

CESTAT Kolkata Sets Aside ₹6.25 Lakh Service Tax Demand Based Solely On Annual Income Tax Statement

The Kolkata bench of the Customs, Excise and Service Tax Appellate Tribunal (CESTAT) has set aside a service tax demand of ₹6.25 lakh raised against an assessee after finding that the Department issued a show cause notice solely on the basis of Form 26AS (an income tax statement reflecting tax deducted at source and certain specified financial transactions) without carrying out any independent verification or investigation. The tribunal ultimately quashed the demand on the ground of limitation....

CESTAT Chennai Sets Aside Customs Duty Demand After Royalty Was Added To Import Value

The Chennai bench of the Customs, Excise and Service Tax Appellate Tribunal (CESTAT) has set aside a customs duty demand that arose after royalty payments were added to the transaction value of imported raw materials. The tribunal followed its earlier ruling in the same company's case after finding that the Revenue had not shown any change in facts, produced any new document, or established any change in law to justify taking a different view. The bench of Judicial Member P. Dinesha and...

No Service Tax On Reimbursement Of Actual Electricity Charges Recovered From Tenants: CESTAT Chennai

The Chennai Bench of the Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has held that reimbursement of actual electricity charges recovered from tenants is not liable to service tax, observing that electricity is "goods" and such recoveries cannot be treated as consideration for a taxable service. The tribunal observed, “Further, eelectricity is specifically recognized as "goods" under the Central Excise Tariff Act and various State VAT laws. Hence reimbursements or collections...

Gujarat HC Holds PLA Payment Cannot Result In Double Recovery, Directs ₹3.74 Cr. Credit Restoration

The Gujarat High Court on 24 June held that the Central Excise Department cannot require a taxpayer to claim a cash refund after the taxpayer has already deposited the disputed duty amount through the Personal Ledger Account (PLA), as the corresponding CENVAT credit must be restored to prevent double recovery. A Division Bench of Justices A.S. Supehia and Vaibhavi D. Nanavati allowed the writ petition filed by Inductotherm India Pvt. Ltd. and directed the Department to re-credit Rs. 3,74,33,462...

CESTAT Chandigarh Quashes ₹55 Lakh Excise Duty Demand Over Pre-1991 Duty Collections

The Chandigarh Bench of the Customs, Excise and Service Tax Appellate Tribunal (CESTAT) has set aside an excise duty demand of ₹55 lakh against Kamal Steel Fabricators. It held that Section 11D of the Central Excise Act, which requires manufacturers to deposit with the Government excise duty collected from buyers, could not be invoked for amounts collected before the provision came into force. The tribunal observed, “Any statutory provision unless expressly stated cannot be applied...

Rent-a-Cab, Air Travel, Hotel Services Qualify As Input Services If Used For Business: CESTAT Chennai

The Chennai Bench of the Customs, Excise and Service Tax Appellate Tribunal (CESTAT) has held that services such as rent-a-cab, air travel, hotel accommodation, restaurant, telecommunication, insurance and business support services qualify as input services where they are used directly or indirectly for providing output services and are not meant for employees' personal consumption. The tribunal accordingly allowed a refund of unutilised CENVAT credit claimed by Olam Information Services Pvt....

E-Rickshaw Parts Without Motors, Batteries Not Complete Vehicles In CKD Form: CESTAT Kolkata

The Kolkata Bench of the Customs, Excise and Service Tax Appellate Tribunal (CESTAT) on 2 July held that imported e-rickshaw parts without essential components such as motors and batteries cannot be treated as complete e-rickshaws in a completely knocked down (CKD) condition. A Bench comprising Judicial Member Ashok Jindal and Technical Member K. Anpazhakan allowed cross-appeals filed by Zeniak Innovation India Ltd and the Revenue in a dispute over customs classification of imported...

CESTAT Kolkata Sets Aside Confiscation Of 1.75 Kg Gold, Holds Suspicion Insufficient To Prove Smuggling

On 2 July, the Kolkata Bench of the Customs, Excise and Service Tax Appellate Tribunal (CESTAT) held that Customs cannot treat gold as smuggled merely on suspicion and set aside the confiscation of 1.75 kg of gold along with penalties imposed by the department. Judicial Member Ashok Jindal and Technical Member K. Anpazhakan allowed the appeal filed by Dinesh Prasad and Raj Kumar Soni and quashed the confiscation order passed by Customs. The Bench observed: “...the Revenue has merely relied...

CBIC Notifies Rules For Preferential Tariff Benefits Under India-UK CETA Ahead Of 15 July Rollout

The Central Board of Indirect Taxes and Customs (CBIC) on 3 July notified the Customs (Administration of Rules of Origin under the Comprehensive Economic and Trade Agreement between India and the United Kingdom) Rules, 2026, paving the way for implementation of the India-UK Comprehensive Economic and Trade Agreement (CETA) from 15 July. They will come into force on the same day as the trade pact. India and the United Kingdom signed the CETA on 24 July 2025 to reduce or eliminate tariffs,...

CESTAT Chennai Sets Aside ₹3.92 Cr. Demand Based On Compilations, Holds Re-Export Must Be Verified

On 1 July, the Chennai Bench of the Customs, Excise and Service Tax Appellate Tribunal (CESTAT) set aside a customs duty demand of Rs. 3.92 crore raised against Econship Tech Pvt. Ltd. and remanded the matter for fresh adjudication, holding that customs authorities cannot deny exemption under Notification No. 104/94-Cus. without independently verifying container-wise export compliance. Judicial Member Ajayan T.V. and Technical Member Vasa Seshagiri Rao observed that the dispute required...

CESTAT Delhi Dismisses 17 Mitsubishi Electric Appeals Over EPS-ECU Customs Classification As Automobile Part

The Principal Bench of the Customs, Excise and Service Tax Appellate Tribunal (CESTAT), New Delhi, has upheld Customs' classification of Electronic Control Units for Electronic Power Steering (EPS-ECU) and their parts as components of automobile steering systems, dismissing 17 appeals filed by Mitsubishi Electric Automotive India Pvt. Ltd. The tribunal held that the issue had already been settled in the company's own earlier cases involving identical goods. A bench of Officiating President...