Customs Commissioner Cannot Reassess Duty On Warehoused Imports Cleared From Refineries Beyond His Jurisdiction: Gujarat High Court

The Gujarat High Court stated that the customs commissioner cannot reassess duty on warehoused imports cleared from refineries beyond his jurisdiction. Justices Bhargav D. Karia and Justice Pranav Trivedi agreed with the Tribunal that a proper officer having the administrative jurisdiction over the respective refineries where the goods were removed under section 67 of the Customs Act, 1962, only could have assumed the jurisdiction for reassessment and not the Commissioner, ...

Revenue Sharing Arrangements Not Taxable As Service U/S 65(90a) Of Finance Act: CESTAT

The New Delhi Bench of Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has stated that revenue-sharing arrangements are not taxable as a service under Section 65(90a) of the Finance Act. The Bench of Binu Tamta (Judicial Member) and P.V. Subba Rao (Technical Member) stated that the agreement was purely related to the transaction of business whereby the assessee was actually performing the activity of operation of catering and was not providing any service of renting of...

Mens Rea Not Prerequisite For Imposing Penalty U/S 117 Of Customs Act: Karnataka High Court

The Karnataka High Court held that mens rea is not a prerequisite for imposing a penalty under Section 117 of the Customs Act. Section 117 of the Customs Act, 1962, addresses penalties for contraventions not specifically mentioned elsewhere in the Act. Justices S.G. Pandit and K.V. Aravind stated that a plain reading of Section 117 of the Act makes it clear that whenever any person contravenes any provision of the Act or fails to comply therewith, a penalty is attracted. Reading a...

Show Cause Notice Cannot Be Issued Solely On Basis Of Voluntary Disclosure Under SVLDRS Scheme: CESTAT

The Bangalore Bench of Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has stated that a show cause notice cannot be issued solely based on voluntary disclosure by the assessee under the SVLDRS Scheme [Sabka Vishwas (Legacy Dispute Resolution) Scheme, 2019]. The bench, consisting of P.A. Augustian (Judicial Member) and R. Bhagya Devi (Technical Member), agreed with the Commissioner that even though documents were placed before the authorities concerned, the original...

Information Regarding GST Returns Of Company Cannot Be Disclosed Under RTI Act: Bombay High Court

The Bombay High Court on Tuesday (October 14) held that a company's Goods and Services Tax (GST) returns filing cannot be disclosed under the Right To Information (RTI) Act. Sitting at Aurangabad bench, single-judge Justice Arun Pednekar noted that section 158(1) of the GST Act prohibits disclosure of information of GST returns to third parties and that section 8(1)(j) of the RTI Act too exempts certain information from being made public unless the information officer is satisfied that the...

IRCTC's Food Plaza Licenses Not 'Renting Of Immovable Property': CESTAT Quashes ₹2.88 Crore Service Tax Demand

The Customs, Excise & Service Tax Appellate Tribunal (CESTAT), New Delhi, recently held that the arrangement between Indian Railway Catering and Tourism Corporation Ltd. (IRCTC) and private vendors for operating Food Plazas at railway premises does not amount to 'renting of immovable property' and, thus, does not attract service tax under that category.A two-member coram comprising Judicial Member Binu Tamta and Technical Member P V Subba Rao held that the agreements were not lease...

Proceedings Under Rule 16/16A Drawback Rules Are Merely Execution Proceedings; Cannot Modify Value In Shipping Bills: CESTAT

The New Delhi Bench of Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has stated that proceedings under Rule 16/16A Drawback Rules are merely execution proceedings; cannot modify value in shipping bills. Justice Dilip Gupta (President) and P.V. Subba Rao (Technical Member) stated that the proceedings to recover the drawback under Rules 16/16A of the Drawback Rules are in the nature of execution proceedings, and they cannot be used to modify the value or any other...

Incorrect Declaration In Bill Of Entry Attracts Penalty U/S 114AA Of Customs Act: CESTAT

The New Delhi Bench of Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has stated that Justice Dilip Gupta (President) and P.V. Subba Rao (Technical Member) stated that imports and filing of the Bill of Entry are transactions of business under the Customs Act. Section 114AA would squarely apply to those transactions. In this case, the importer filed a Bill of Entry to clear goods imported by it and self-assessed the duty payable on them. The department examined...

IRCTC's Licensing For Operation Of Food Plazas Not Liable To Service Tax Under 'Renting Of Immovable Property': CESTAT

The New Delhi Bench of Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has held that IRCTC's (Indian Railway Catering & Tourism Corporation Ltd.) licensing for the operation of food plazas is not liable to service tax under 'renting of immovable property'. The Tribunal observed that the agreement was purely related to the transaction of business whereby the assessee was actually performing the activity of operation of catering and was not providing any service of...

Govt Examination Board Not Liable To Pay Service Tax On Examination Fees Collected From Candidates: CESTAT

The New Delhi Bench of Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has stated that the government examination board is not liable to service tax on examination fees collected from candidates. Binu Tamta (Judicial Member) and Sanjiv Srivastava (Technical Member) stated that the examination fees collected from the candidates appearing for the examination being conducted by the appellant/assessee cannot be considered as consideration for the supply of manpower...

Customs | FERA Penalty U/S 50 Not Applicable For Export Shortfall Below 10%; Exporter Can Write-Off Unrealised Bills: Madras High Court

The Madras High Court stated that the FERA (Foreign Exchange Regulation Act) penalty under Section 50 is not applicable for export shortfall below 10%; the exporter can write off unrealised bills. Justices S.M. Subramaniam and C. Saravanan stated that even otherwise, since Section 18(1)(a) of the Foreign Exchange Regulation Act is to be read along with Section 18(2) and Section 18(3) of the Foreign Exchange Regulation Act, penalty under Section 50 of the Foreign Exchange Regulation Act...

CESTAT Quashes ₹56.47 Crore Customs Duty Demand On Dish TV Over Smart Card Classification

The Customs, Excise and Service Tax Appellate Tribunal (CESTAT), Principal Bench, New Delhi, recently set aside a ₹56.47 crore customs duty demand against Videocon D2H Limited (now Dish TV India Ltd) in a dispute over the classification of imported smart cards. A coram of Justice Dilip Gupta (President) and Technical Member P V Subba Rao quashed an order dated April 28, 2020, passed by the Additional Director General (Adjudication), DRI. The tribunal observed that “Merely because ...