Circular Clarifying Previous Notifications On Fiscal Duty Has Retrospective Effect : Supreme Court

The Supreme Court recently held that a circular/notification issued by the revenue department, clarifying or explaining a fiscal regulation, has to be given retrospective effect.In the facts of the case at hand, the Court held that a Circular dated 17.09.2010 issued by the Central Board of Excise and Customs (CBEC) had to be given retrospective effect as it clarified certain previous notifications on customs duty.It was opined that, being explanatory in nature, the Circular could not be...

S.27 Customs Act Or Doctrine Of Unjust Enrichment Won't Apply To Refund Of Bank Guarantee : Supreme Court Allows Patanjali Plea

The Supreme Court has held that Section 27 of the Customs Act, which requires a person seeking refund of duty to show that the burden was not passed on to the customer, is not applicable when refund is sought of a wrongly invoked bank guarantee.This is because encashment of bank guarantees by the Customs Department cannot be treated as payment of customs duty. Hence, neither Section 27 nor the doctrine of unjust enrichment is applicable. Holding so, the Supreme Court allowed the...

Admissibility Of Printouts From Seized Electronic Evidence Requires Certificate U/S 36B Of Central Excise Act: CESTAT

The New Delhi Bench of Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has stated that admissibility of printouts from seized electronic evidence requires certificate under Section 36B of the Central Excise Act. The Bench of Justice Dilip Gupta (President) and P.V. Subba Rao (Technical) has observed that, “that a printout generated from a secondary electronic evidence that has been seized, cannot be admitted in evidence unless the statutory conditions laid down in section...

Excise Duty Under Sugar Cess Act Can Be Claimed As CENVAT Credit: Calcutta High Court

The Calcutta High Court stated that excise duty under sugar tax act can be claimed as CENVAT credit. The Bench consists of Chief Justice T.S. Sivagnanam and Justice Chaitali Chatterjee (Das) was addressing the issue of whether payment of duty under Sugar Cess Act, 1982 can be claimed as Cenvat Credit when the Cenvat Credit Rules does not provide payment of cess under the Sugar Cess Act, 1982 as not being eligible under Rule 3 of the said Rules. In this case, the adjudicating...

12% IGST Is Leviable On Imported 'Lemoneez' Drink: CESTAT

The Kolkata Bench of Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has stated that 12% IGST is leviable on imported 'Lemoneez'. The Bench of Ashok Jindal (Judicial Member) and K. Anpazhakan (Technical Member) was addressing the issue of whether 'Lemoneez' is appropriately classifiable under residuary item 2106 90 19 as a soft drink concentrate [under miscellaneous edible preparations, not elsewhere specified], or under Tariff Item 2009 31 00 (juice of a single citrus...

Penalty Can't Be Imposed U/S 114AA Of Customs Act On Broker Merely For Failing To Physically Verify Importer's Premises: CESTAT

The New Delhi Bench of Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has stated that penalty can't be imposed under Section 114AA Customs Act on customs broker merely for failing to physically verify the importer's premises. The Bench of Justice Dilip Gupta (President) and Hemambika R. Priya (Technical Member) has observed that “the allegations that the appellant did not physically verify the premises of the importer, are not sufficient to fasten the appellant with the...

Consultancy Services Rendered To Foreign University/Foreign Group Entity Are Not “Intermediary Services”; Service Tax Not Leviable: CESTAT

The New Delhi Bench of Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has stated that the consultancy services rendered by the assessee to the foreign university/foreign group entity do not fall under the category of “intermediary services” and the assessee are eligible for the benefit of “export of services”. The Bench of Binu Tamta (Judicial Member) and (Technical Member) has observed that “it may also be appreciated that the final decision of admitting a student is...

Disputed Amount Paid Under Protest Much After Clearance Of Goods Is Not Covered Under Unjust Enrichment: CESTAT

The New Delhi Bench of Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has stated that disputed amount paid under protest much after clearance of goods is not covered by unjust enrichment. The Bench of Binu Tamta (Judicial Member) has observed that “once the supplies have already been made, any amount paid thereafter, as tax or deposit, the burden of such amount cannot be passed on to the assessee and, therefore, the test of unjust enrichment is not applicable.” In ...

Patna High Court Upholds ₹25 Lakh Service Tax Demand Against Travel Agency Which Failed To Disclose Transactions & Claimed Records Were Lost In Fire

The Patna High Court has recently upheld a service tax demand of ₹25.25 lakh against a travel agency, dismissing its defence that crucial business records had been lost in a fire. The Division Bench comprising Justice Rajeev Ranjan Prasad and Justice Ashok Kumar Pandey observed, “this petitioner having surrendered his service tax registration had not disclosed the transactions in ST-3. The Taxing Authority were not aware of this, they were looking for cooperation on the part of the petitioner,...

Subscription & Redemption Of Liquid Mutual Fund Units Can't Be Termed As “Trading Of Goods”, CENVAT Credit Admissible: CESTAT

The New Delhi Bench of Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has stated that subscription and redemption of liquid mutual fund units can't be termed as “trading of goods”. The Bench of Binu Tamta (Judicial Member) and Hemambika R. Priya (Technical Member) has observed that the activity of investment in mutual funds does not involve the presence of a service rendered by a service provider towards a recipient of service for some consideration. The activity...

Service Tax Chargeable On Commission Received By Distributor From Company On Products Purchased By Sales Group: CESTAT

The New Delhi Bench of Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has stated that service tax would be chargeable on the commission received by a Distributor from Amway on the products purchased by his sales group. The Bench of Dr. Rachna Gupta (Judicial) and Hemambika R. Priya (Technical) observed that “the assessee is an individual, who cannot be faulted if she thought that she was only a dealer; a difference between the purchase price and the sale price or MRP is...

Customs Act Grants Unfettered Investigative Powers Where Infraction Is Suspected: Patna High Court

The Patna High Court has held in a recent judgement that the Customs Act, 1962 provides 'unfettered power' to investigate where there are reasons to believe that there has been infraction of its provisions.Presiding over the case, Justice Mohit Kumar Shah, observed, “The investigation cannot be nipped in the bud and be prevented simply on the basis of certain technicalities. The Customs Act provides unfettered power to investigate where there are reasons to believe that there has been infraction...