Tax Department Cannot Dictate CENVAT Credit Compliance Method: CESTAT Delhi

The Principal Bench of the Customs, Excise and Service Tax Appellate Tribunal (CESTAT), New Delhi, has held that tax authorities cannot compel a taxpayer to adopt a particular method of complying with its obligations under the CENVAT Credit Rules. Setting aside the CENVAT credit and service tax demands, along with the interest and penalties, the tribunal ruled that the choice of compliance rests with the taxpayer. A bench of Officiating President Dr. Rachna Gupta and Technical Member Subba...

CESTAT Bangalore Sets Aside Service Tax Demand On Vacant Land Leased By New Mangalore Port Trust Before July 2010

The Bangalore Bench of the Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has set aside the balance service tax demand raised against New Mangalore Port Trust on lease and licence fees collected from users of vacant land for the period prior to July 1, 2010. A coram of Judicial Member P.A. Augustian and Technical Member R. Bhagya Devi partly allowed the appeal filed by the port trust. “In view of the above, we do not find any justification in sustaining the demand prior to...

Customs Must Follow Valuation Rules Sequentially Before Using Residual Method: CESTAT Delhi

The Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) at Delhi has held that customs authorities cannot invoke the residual method of valuation without first ruling out the valuation methods that precede it under the Customs Valuation Rules. The ruling resulted in most of the duty demand, confiscation, and penalties imposed on Rochees Time Pvt. Ltd. being set aside. A coram comprising Judicial Member Dr. Rachna Gupta and Technical Member P.V. Subba Rao partly allowed Rochees Time...

Customs Cannot Reassess Export Shipping Bills Or Deny DEPB Benefits After Export: CESTAT Delhi

The Principal Bench of the Customs, Excise, and Service Tax Appellate Tribunal (CESTAT), New Delhi, has held that Customs authorities cannot alter the value or description of goods after shipping bills have been assessed and exports completed. Any such change must be made through the statutory remedies available under the Customs Act. Judicial Member Dr. Rachna Gupta and Technical Member P.V. Subba Rao passed the ruling while allowing appeals filed by Mungad Strips & Alloy Pvt. Ltd. and...

Corrigendum Cannot Expand Show Cause Notice After Hearing Concludes: Gujarat High Court

On 22 June, the Gujarat High Court held that Customs authorities cannot introduce fresh allegations or evidence through a corrigendum after adjudication proceedings have concluded and the matter has been reserved for final orders. A Division Bench of Justices A.S. Supehia and Vaibhavi D. Nanavati allowed a writ petition filed by Vidres India Ceramics Pvt. Ltd. and directed the authorities to pass final orders within six weeks.They emphasised that the department could not improve its...

CESTAT Kolkata Sets Aside Confiscation Of 3.65 Kg Gold After Jeweller Produces GST, Purchase Records

The Customs, Excise, and Service Tax Appellate Tribunal (CESTAT), Kolkata, has set aside the confiscation of more than 3.65 kg of gold claimed by a Meerut jeweller. The tribunal held that records produced by the claimants showed the gold had been procured on payment of GST and accounted for in the firm's books. A bench of Judicial Member Ashok Jindal and Technical Member K. Anpazhakan allowed appeals filed by Akhil Maheshwari, Anil Kumar Yadav and Nikhil Maheshwari. The bench also directed the...

CESTAT Kolkata Quashes ₹40 Lakh Penalty on Generator Set Importer, Says Delayed Action Cannot Prevent Pollution

The Customs, Excise and Service Tax Appellate Tribunal (CESTAT) in Kolkata has set aside ₹40 lakh in penalties imposed on a Kolkata-based importer of kerosene generator sets. The tribunal observed that the show cause notice was issued long after the goods had been cleared and sold in the market. A Bench of Judicial Member R. Muralidhar and Technical Member Rajeev Tandon noted that even if the imports were assumed to have resulted in the clearance of polluting generator sets, issuing a show...

CENVAT Credit On Tippers Can't Be Denied Due To Purchase Before Inclusion As Capital Goods: CESTAT Kolkata

The Kolkata Bench of the Customs, Excise and Service Tax Appellate Tribunal (CESTAT) has held that CENVAT credit on tippers cannot be denied merely because the vehicles were received before tippers were brought within the definition of capital goods. The tribunal observed that eligibility for credit must be examined when the vehicles are put to use for rendering output services. A bench of Judicial Member Ashok Jindal and Technical Member K. Anpazhakan allowed an appeal filed by Libra...

DGFT Public Notice Cannot Impose Actual User Condition On Transferable DFIA Imports: CESTAT Kolkata

The Customs, Excise, and Service Tax Appellate Tribunal (CESTAT), Kolkata, has held that an actual user condition imposed through a DGFT public notice cannot be enforced against imports made under a transferable Duty Free Import Authorization (DFIA). The tribunal ruled that the DFIA in question had been issued on a post-export basis. Judicial Member Ashok Jindal and Technical Member K. Anpazhakan observed that the condition was not binding on Global Exim, which had claimed exemption from basic...

Late Fee On Supplementary Bills Of Entry Cannot Be Imposed In A Routine Manner: CESTAT Kolkata

The Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) at Kolkata has recently observed that late fees for delayed filing of Bills of Entry must not be imposed routinely where the delay is not attributable to the importer. A Bench of Judicial Member R. Muralidhar and Technical Member Rajeev Tandon set aside late fees levied on Agarwal Coal Corporation Pvt. Ltd. in six appeals arising from supplementary Bills of Entry filed for excess quantities of imported coal. "Late fee chargeable...

CESTAT Mumbai Bars Customs From Rejecting Declared Value, Upholds Relief For Adani Entities

On 5 June, the Mumbai Bench of the Customs, Excise and Service Tax Appellate Tribunal (CESTAT) held that customs authorities cannot reject the declared transaction value of imported goods when they rely on allegations of overvaluation arising from the same Directorate of Revenue Intelligence (DRI) investigation and evidence that earlier proceedings had already rejected and the Supreme Court had affirmed. President Justice Dilip Gupta and Technical Member P. Anjani Kumar dismissed six appeals...

Procedural Defects In Invoices Cannot Defeat SAD Refund Entitlement: CESTAT Chennai

The Customs, Excise and Service Tax Appellate Tribunal (CESTAT), Chennai, has allowed an appeal filed by Cape Electric Corporation and set aside orders rejecting Special Additional Duty (SAD) refund claims of ₹18.82 lakh. The claims arose from imported goods that were subsequently sold in the domestic market on payment of VAT. The Division Bench of Judicial Member Ajayan T.V. and Technical Member Vasa Seshagiri Rao held that the department could not deny the refund claims on the basis of...