Transfer Of Approvals/Allotments Acquired From Government Involves Business Support Services, Attracts Service Tax: CESTAT

The New Delhi Bench of Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has stated that the transfer of approvals/allotments acquired from government involves business support services, attracts service tax. Dr. Rachna Gupta (Judicial Member) and P.V. Subba Rao (Technical Member) stated that the approvals and allotments so obtained are not 'profit a prendre' hence cannot be called as benefit arising out of immovable property. Assessees are rightly held to have rendered the...

Movement Of Goods To CFAs In Other States Is Stock Transfer, Not Inter-State Sale; Central Sales Tax Not Leviable: CESTAT

The New Delhi Bench of Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has stated that movement of goods to carrying and forwarding agents in other states is stock transfer, not inter-state sale, central sales tax not leviable. Justice Dilip Gupta (President) and P.V. Subba Rao (Technical Member) stated that “the supplies made from the stockyards/warehouses to the Distributors would be a local sale in the State where the stockyards/warehouses are situated. Until the goods...

Customs Act | Adjudicating Authority Can't Decline Refund Of Excess Duty In Presence Of CA's Certificate: Delhi High Court

The Delhi High Court has made it clear that the Customs authority cannot, in absence of some evidence, decline refund of excess duty paid by a trader when the latter furnishes certificates from a qualified chartered accountant in support of its case.A division bench of Justices Prathiba M. Singh and Rajneesh Kumar Gupta thus dismissed the Department's appeal against Nokia.Nokia sought refund of excess duty paid on import of mobile handsets. While the goods were exempted by the Central government...

Anti-Dumping Duty Paid By Mistake In Self-Assessment Has No Legal Character Of 'Duty', Must Be Refunded: CESTAT

The New Delhi Bench of Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has stated that anti-dumping duty paid by mistake in self-assessment has no legal character of 'duty' and must be refunded. Dr. Rachna Gupta (Judicial Member) stated that the assessee had added the amount of Anti-dumping duty while self-assessing the customs duty liability. Hence the Anti-dumping duty added to the amount of duty while self-assessing the Bill of Entry cannot take the character of duty. ...

Customs | Counter Vailing Duty Not Applicable On Import Of Pan Masala Processing Machines: CESTAT

The New Delhi Bench of Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has stated that Counter Vailing Duty (CVD) is not applicable on import of pan masala processing machines. Dr. Rachna Gupta (Judicial Member) and P.V. Subba Rao (Technical Member) stated that the assessee is the manufacture of the PanMasala and has imported the machines for cutting / grinding / sorting of Areca Nuts (Supari/seed), the raw material of the Pan Masala. From the description of the three of...

No Service Tax On Target-Based Discounts From Maruti Suzuki To Dealers: CESTAT

The New Delhi Bench of Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has stated that no service tax on target-based discounts from Maruti Suzuki to dealers. Dr. Rachna Gupta (Judicial) and P.V. Subba Rao (Technical Member) stated that the incentives/ discounts received by the dealers of car manufacturer were not taxable under Auxiliary Service (BAS), as they were the part of a business transaction on a principle-to-principle basis. M/s. Vipul Motors Pvt Ltd. being an...

No CENVAT Credit On Note Sheets And Sanction Orders; Valid Documents With Mandatory Details Required: CESTAT

The New Delhi Bench of Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has stated that CENVAT Credit can't be claimed on note sheets and sanction orders and required valid documents with mandatory details. Dr. Rachna Gupta (Judicial Member) and P.V. Subba Rao (Technical Member) stated that it is not open to the assessee to take CENVAT credit on the basis of note sheets or sanction orders or invoices which do not have the essential details. The assessee could take CENVAT...

GST TRAN-I Credit Can Be Revised Based On Manually Filed Excise Return: Bombay High Court

The Bombay High Court held that GST TRAN-I credit can be revised based on manually filed ER-1 Return. Justices M.S. Sonak and Jitendra Jain stated that “there were technical issues with respect to revising TRAN-1 and non-availability of electronic mode to revise excise return and it is only after directions issued by the Supreme Court in the case of Union of India vs. Filco Trade Centre Pvt. Ltd. 2022 that the assessee was able to revise its TRAN-1/TRAN-2 by filing manual revised...

Customs Act | Mere Purchase Of Gold Without Bill Not Enough To Prove Gold Smuggling: CESTAT

The New Delhi Bench of Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has stated that mere purchase of gold without bill not enough to prove gold smuggling. Dr. Rachna Gupta (Judicial Member) opined that the mere act of purchasing gold without bill is highly insufficient to confirm the grave allegations of conspiring the act of smuggling of gold. The order imposing penalty on the appellants and confiscating their money is not sustainable. Section 121 of Customs Act,...

Service Tax To Be Paid By Distributor, Not By Theatre Owner For Film Screening: CESTAT

The New Delhi Bench of Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has stated that service tax has to be paid by the distributor under “Copy Right Service” for transfer of right by licence to screen the film in the theatre of the owner. Binu Tamta (Judicial Member) and Hemambika R. Priya (Technical Member) stated that “the purpose of the agreement and the intention of the parties is for screening of the film in the theatre, which cannot be treated as “Renting of...

No Service Tax On 'Upfront Fee' Received By DMRC From Customers Under Concession Agreement: CESTAT

The New Delhi Bench of Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has stated that no service tax on 'upfront fee' received by DMRC (Delhi Metro Rail Corporation) from customers under concession agreement. Binu Tamta (Judicial Member) and Hemambika R. Priya (Technical Member) was addressing the issue of whether the “upfront fee” received by the Delhi Metro Rail Corporation Ltd. from various customers under the Concession Agreements entered prior to 1.7.2010 is exigible...

Goods Not Prohibited Under Foreign Trade Policy Still Require Valid IEC; Import Using Bogus Codes Impermissible: CESTAT

The New Delhi Bench of Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has stated that goods not prohibited under foreign trade policy still require valid IEC (Importer Exporter Codes), import using bogus codes is impermissible. Dr. Rachna Gupta (Judicial Member) and P.V. Subba Rao (Technical Member) observed that there is nothing in the FTDR Act (The Foreign Trade (Development and Regulation) Act, 1992 which provides for any IEC holder to lend his IEC to somebody else or...