Service Tax Payable On Service Charges Collected From Client For Printing: CESTAT

The New Delhi Bench of Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has stated that service tax payable on service charges collected from client for printing. The Bench of Dr. Rachna Gupta (Judicial Member) and P.V. Subba Rao (Technical Member) has observed that the assessee engaged someone else to do the job of printing after preparing content using its in-house expertise. The assessee was, by no stretch of imagination a job worker to a printer. The printer, in fact,...

Statement Recorded U/S 108 Of Customs Act Is Not Valid Evidence U/S 138B Of Customs Act: CESTAT

The New Delhi Bench of Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has stated that statement recorded under section 108 of the Customs Act not valid evidence under section 138B of the Customs Act. The Bench of Justice Dilip Gupta (President) and P.V. Subba Rao (Technical Member) was addressing the issue of whether the statement recorded under section 108 of the Customs Act could be considered as evidence under section 138B of the Customs Act. In this case, the...

Proceedings Against Assessee Unsustainable Once Discharge Certificate Is Issued Under SVLDRS Scheme: CESTAT

The New Delhi Bench of Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has stated that proceedings against assessee unsustainable once discharge certificate is issued under SVLDRS [Sabka Vishwas (Legacy Dispute Resolution) Scheme, 2019] Scheme. The Bench of Ashok Jindal (Judicial Member) and P. Anjani Kumar (Technical Member) was addressing the issue that in case where the assessee opts for SVLDRS Scheme and obtained discharge certificate can the proceedings by way of ...

Packing/Re-Packing Of Parts Of Device Is Not Manufacture U/S 2(f)(iii) Of Central Excise Act; No Excise Duty: CESTAT

The New Delhi Bench of Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has stated that packing/re-packing of parts of vibrator compactor is not manufacture under Section 2(f)(iii) Of Central Excise Act and hence no excise duty is leviable. The Bench of Justice Dilip Gupta (President) and P.V. Subba Rao (Technical Member) was addressing the issue of whether the two constructions equipments namely Wheeled Tractor Loader Backhoe and Vibratory Compactor are “Automobiles”, ...

Treaty Provisions Don't Override Customs Law: Bombay High Court Upholds SCN Issued For Alleged Misuse Of Import Exemptions

The Bombay High Court stated that treaty provisions don't override customs law and upheld the show cause notices issued for alleged misuse of import exemptions. The Bench consists of Justices M.S. Sonak and Jitendra Jain observed that based on a treaty provision that is not transformed or incorporated into the national law or statute, the provisions of the existing Customs Act cannot be undermined, or the powers and jurisdiction of the customs authorities questioned. In this case,...

Assessee Liable To Pay Redemption Fine For Seized Goods Missing From Their Custody: CESTAT

The New Delhi Bench of Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has stated that assessee liable to pay redemption fine for seized goods missing from their custody. The Bench of Dr. Rachna Gupta (Judicial Member) and P.V. Subba Rao (Technical Member) was addressing the issue of whether when the goods were seized handed over the assessee for safe custody and they went missing while in their custody, whether such goods can be confiscated or not. In this case,...

Re-Determining Value Of CDs Imported By HP India Is Invalid Without Rejection Of Transaction Value Under Customs Valuation Rules: CESTAT

The New Delhi Bench of Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has stated that re-determination value of CDs imported by HP India invalid without rejection of transaction value under Rule 12 Customs Valuation Rules 2007. The bench stated that unless the proper officer rejects the transaction value under Rule 12, the valuation has to be based on transaction value as per Rule 3 with some additions, if necessary, as per Rule 10. Rule 12 of Customs Valuation Rules...

Royalty Paid For Exclusive Trademark License Is Not Taxable As A Service: CESTAT

The New Delhi Bench of Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has stated that royalty paid for exclusive trademark license is not taxable as service. The Bench of Dr. Rachna Gupta (Judicial Member) and P.V. Subba Rao (Technical Member) has observed that “the assessee was restrained to use the said trademark during the said period in any territory of the world and as such the transaction was a transaction of 'Deemed Sale' inviting no service tax liability. Hence, ...

Kerala High Court Directs Customs To Dispose Of Seized Buffalo Meat Consignments Within One Month Due To Perishability

The Kerala High Court has directed the customs department to dispose of seized buffalo meat consignments within one month due to perishability. The Bench of Justice Ziyad Rahman A.A was addressing the issue pertaining to the seizure of the consignments of buffalo meat, which were proposed to be exported to a foreign country. On examination, it was found that there was a misdeclaration by the consignor, and it contained certain items which were prohibited from being exported. ...

Bank Charges Paid To Foreign Banks Are Not Liable To Service Tax Under Reverse Charge Mechanism: CESTAT

The New Delhi Bench of Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has stated that bank charges paid to foreign banks are not liable to service tax under the reverse charge mechanism. The Bench of Dr. Rachna Gupta (Judicial Member) and Hemambika R. Priya (Technical Member) has stated that “there is direct nexus of the buyer with the Foreign Bank, and it is held that when the provider of service i.e. 'the Foreign Bank' and recipient of service i.e. 'the Buyer' are both...

Knowledge & Intention Must Be Present Before Imposing Penalty U/S 114AA Of Customs Act For Obtaining Undue Export Advantage: CESTAT

The New Delhi Bench of Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has stated that knowledge and intention must be there to impose penalty under Section 114AA of Customs Act. The Bench of Justice Dilip Gupta (President) and P.V. Subba Rao (Technical Member) has observed that “Knowledge and intention is sine qua non for imposing penalty under section 114AA of the Customs Act. The department has not been able to establish knowledge on part of the assessee or intention on...

Service Tax Not Leviable On Hostel Fees Received For Non-Residential Courses In Coaching Institute: CESTAT

The Kolkata Bench of Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has stated that service tax is not leviable on hostel fees received for non-residential courses in coaching institute. The Bench of Ashok Jindal (Judicial Member) and K. Anpazhakan (Technical Member) has observed that “the stand-alone hostel charges collected for non-residential courses, have no connection with Commercial Training and Coaching services as defined under section 65(105)(zzc) of the Finance...