'Mere Prospect Of Filing Review Not Grounds To Hold Seized Goods': Delhi High Court Orders Customs To Release Woman's Gold Jewellery

The Delhi High Court has granted relief to a Muslim woman whose gold bangles were seized by the Customs Department on return from Mecca and were withheld despite an order of the Adjudicating Authority, directing release.A division bench of Justices Prathiba M. Singh and Shail Jain observed that merely because the Department plans to seek a review of the order for return, as upheld by the Appellate Authority, is not grounds to withhold the return of seized articles.Four gold bangles were seized...

Excise Duty Exemption Not Available On Industrial Sewing Machines With In-Built Motors: CESTAT

The New Delhi Bench of Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has stated that excise duty exemption not available on industrial sewing machines with in-built motors. Justice Dilip Gupta (President) and P.V. Subba Rao (Technical Member) were addressing the issue of whether the assessee is entitled to the benefit of exemption Notification No. 6/2006-CE dated 1.3.2006 (S. No. 15) and its successor Notification No. 1/2011CE dated 1.3.2011 (S. No. 97) on the ...

Officer Appointed Under State GST Act Is Authorised To Discharge Duties As Proper Officer For IGST & CGST: Allahabad High Court

The Allahabad High Court has held that an officer appointed under the State Goods & Service Tax Act will be Proper Officer under the Integrated Goods & Service Tax Act as well as the Central Goods & Service Tax Act. Perusing Section 4 of the IGST Act read with rule 20 of the CGST Act, Justice Piyush Agrawal held that “The provision provides that the Officer appointed under the State Goods & Service Tax is authorized to discharge their duties as Proper Officer for the...

Import Of Counterfeit iPhones Dilutes Brand Equity, Affects Consumer Welfare: Delhi High Court In Customs Fraud Case

The Delhi High Court has expressed concern over alleged import of counterfeit iPhones, stating that such imports not only affect brand owners but also adversely affect consumer welfare— as old and used products could get re-branded as new ones.A division bench of Justices Prathiba M. Singh and Shail Jain thus observed,“Consumers in India may be made to pay more for used, second hand or counterfeit products under the impression that they are original branded products. Such imports also have an...

DRI Has Jurisdiction To Issue Show Cause Notice In Drawback Cases: CESTAT

The Chennai Bench of Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has stated that DRI (Directorate of Revenue Intelligence) have the jurisdiction to issue show cause notice in drawback cases. P. Dinesha (Judicial Member) and M. Ajit Kumar (Technical Member) were addressing the issue of whether DRI Officers have the jurisdiction to issue SCN under Section 75 of the Customs Act read with the relevant Rule. In this case, Directorate of Revenue Intelligence (DRI)...

Revenue Cannot Enforce Optional Exemption Notification Without Assessee's Consent: CESTAT

The New Delhi Bench of Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has stated that revenue cannot enforce optional exemption notification without assessee's consent. Justice Dilip Gupta (President) and P.V. Subba Rao (Technical Member) opined that once an exemption is claimed, the assessee will not get CENVAT credit and may lose some other benefits. Therefore, it cannot be said that the optional exemption notification should be applied even if the assessee does not...

No Service Tax On Catering Services Provided To Educational Institutions: CESTAT

The New Delhi Bench of Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has held that no service tax on catering services provided to educational institutions. Dr. Rachna Gupta (Judicial Member) and Hemambika R. Priya (Technical Member) were addressing the issue of whether the catering services provided by the assessee to a School with hostel facility are covered under the exemption from payment of service tax given at serial no.9 of Notification No.25/2012-ST dated...

`Tribunal Has Inherent Authority To Stay Orders Detrimental To Revenue: CESTAT

The Chennai Bench of Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has stated that tribunal has inherent authority to stay orders detrimental to revenue. P. Dinesha (Judicial Member) and M. Ajit Kumar (Technical Member) stated that “the power of taxation including its collection being an inherent attribute of sovereignty, the right of revenue to seek a stay of an order determinantal to the collection of taxes, cannot be lightly dismissed….……..we find force in the plea...

Cenvat Credit Can Be Availed On Sugar Cess Paid On Imported Raw Sugar: CESTAT

The Chandigarh Bench of Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has stated that cenvat credit can be availed on sugar cess paid on imported raw sugar. S.S. Garg (Judicial Member) and P. Anjani Kumar (Technical Member) were addressing the issue of whether the assessee is entitled to avail the CENVAT credit of the sugar cess paid on imported raw sugar or not. In this case, the assessee/appellant is engaged in manufacturing of sugar. In year 2010, the assessee...

Drawback Not Allowed Where Refund Exceeds Market Value Of Goods: CESTAT

The New Delhi Bench of Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has stated that drawback not allowed where refund exceeds market value of goods. Dr. Rachna Gupta (Judicial Member) and P.V. Subba Rao (Technical Member) opined that if the transaction value (FOB value) is so high, that the drawback due on the goods exceeds the market value of the goods, then, as per section 76(1) (b), no drawback shall be allowed. In this case, the assessee/appellant filed two...

Customs Wrongly Treated 998 Purity Gold Jewellery As Prohibited Goods Under Baggage Rules: Delhi High Court Grants Relief To Traveller

The Delhi High Court recently granted relief to a woman whose 998 purity (equivalent to 24 karat) gold jewellery was treated as prohibited goods under the Baggage Rules 2016, and absolutely confiscated by the Customs Department on her return to the country.A division bench of Justices Prathiba M. Singh and Rajneesh Kumar Gupta observed,“On the aspect of personal effects and jewellery, the Adjudicating Authority has merely held that because of the purity, the same cannot be considered as personal...

Mobile Value-Added Services To Telephone Service Providers Classified As OIDAR; Service Tax Applicable: CESTAT

The New Delhi Bench of Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has stated that mobile value-added services to telephone service providers classified as online information database access and retrieval services (OIDAR), service tax applicable. Dr. D.M. Misra (Judicial Member) and R. Bhagya Devi (Technical Member) were addressing the issue of whether the Mobile Value-Added Services rendered by the assessee can be classified as 'Online Information Database Access and...