Customs Act | Engineering Services Fees Having Direct Nexus With Import Of Goods Fall Within Assessable Customs Value : Supreme Court

The Supreme Court yesterday (May 1) ruled that engineering and technical service fees paid by the importer must be included in the assessable value of imported spare parts under the Customs Act, 1962. The bench of Justices Abhay S. Oka and Ujjal Bhuyan upheld that the 8% technical and engineering fee charged to the appellant(Coal India) should be included in the assessable value for determining customs duty. It was the case where the appellant floated a tender for spare parts for P&H...

Lawyers Running Individual Practice Exempt From Levy Of GST, Service Tax: Orissa High Court

The Orissa High Court has reminded the GST and Service tax authorities not to harass practicing lawyers by issuing them notices for levy of GST or service tax.A Chief Justice Harish Tandon and Justice BP Routray thus quashed the notices issued to a Bhubaneswar based lawyer demanding service tax of Rs.2,14,600/- and penalty of Rs.2,34,600/- plus interest.It observed, “in view of the admitted fact that the Petitioner is a practicing lawyer…the Department the Petitioner is exempted from levy of...

Central Excise Tariff Act | Test Reports Justifying Reclassification Must Be Disclosed to Manufacturer : Supreme Court

The Supreme Court ruled that when a test report forms the basis for reclassification of the petrochemical products, necessitating a higher duty, than the copy of such test reports ought to be furnished to the manufacturer-taxpayer. The bench of Justices Abhay S. Oka and Ujjal Bhuyan set aside the ₹2.15 crore central excise duty demand against M/s Oswal Petrochemicals Ltd., holding that the revenue authorities had violated principles of natural justice by failing to share key evidence—such as...

Suppression Or Wilful Concealment Not Attributable To Assessee When Departmental Authorities Differ On Taxability Of Services: CESTAT

The New Delhi Bench of Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has stated that suppression or wilful concealment not attributable when the departmental authorities have differed themselves on the taxability of the services. The Bench of Binu Tamta (Judicial) and P.V. Subba Rao (Technical) has observed that, “When the two departmental authorities have differed themselves on the taxability of the services under a specific category, no suppression or wilful concealment...

Customs' Decision To Prefer Revision Plea Against Order To Release Goods Not Grounds To Withhold Them: Delhi High Court

The Delhi High Court has held that the Customs Department cannot sit over an appellate body's order directing it to release the goods of an assessee, merely on the ground that the Department seeks to prefer a revision against such order.A division bench of Justices Prathiba M. Singh and Rajneesh Kumar Gupta held, “once the Commissioner of Customs (Appeals) has also allowed redemption, the decision to file revision cannot be a ground to withhold the release of the goods. Further, there is no stay...

Sikh People Usually Wear 'Kada', Personal Effect: Delhi High Court Sets Aside Detention By Customs

Observing that Sikh persons usually wear kada as part of their religious practice, the Delhi High Court set aside the detention of a Dubai resident's gold kada by the Customs Department.A division bench of Justices Prathiba M. Singh and Rajneesh Kumar Gupta observed, “Clearly, a perusal of the photographs and the fact that it is one Kada which is usually worn by persons like the Petitioner who are Sikhs, leaves no doubt in the mind of the Court that the same was a personal effect of the...

Finance Act, 1994 | Mere Non-Registration Under Service Tax Isn't Fraud Or Suppression To Justify 5 Year Limitation: Patna High Court

The Patna High Court has recently quashed a service tax demand raised against a government contractor, ruling that merely not registering for service tax could not be equated with fraud or suppression of facts warranting the application of the five-year extended limitation period under the Finance Act, 1994.The Division Bench comprising Justice Rajeev Ranjan Prasad and Justice Sourendra Pandey, observed, “the plea of the respondent that the petitioner had not taken registration of the service...

Supply Of Manpower To Five Hotels For Three Years Attracts Service Tax Under “Manpower Recruitment Or Supply Agency Service”: CESTAT

The New Delhi Bench of Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has stated that supply of manpower to five hotels for a period of nearly three years would clearly attract service tax under the head of “manpower recruitment or supply agency service”. The Bench of Dilip Gupta (President) and P.V. Subba Rao (Technical) has observed that, “In relation to manpower supply to five units on cost recovery basis, the Commissioner noticed that ITC had deputed employees to other...

Same Rate Tax And Interest Applicable On IGST In Course Of Inter-State Trade And Supplies In Course Of Imports: CESTAT

The New Delhi Bench of Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has stated that same rate tax and interest applicable on IGST in the course of inter-state trade and supplies in the course of imports. The Bench of Dilip Gupta (President) and P.V. Subba Rao (Technical) has observed that, the taxable event to levy IGST is the inter-state supply of goods and services (including supplies in the course of international trade). If there is no supply, there is no scope to ...

'Digital Still Image Video Cameras' Imported By Assessee Entitled To Basic Customs Duty Exemption: CESTAT

The New Delhi Bench of Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has stated that 'digital still image video cameras' imported by assessee is entitled to basic customs duty exemption. The Bench of Justice Dilip Gupta (Judicial Member) and P.V. Subba Rao (Technical Member) observed that what was to be examined was whether the demand confirmed for the normal period of limitation contemplated under section 28(1) of the Customs Act for the reason that 'digital still image...

No Service Tax On Buying Or Selling Of Space In Print Media, Receiving Incentives On Meeting Targets: CESTAT

The New Delhi Bench of Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has stated that no service tax on buying or selling of space in print media and receiving incentives on meeting targets. The Bench of Binu Tamta (Judicial Member) and P.V. Subba Rao (Technical Member) has observed that the assessee cannot have an obligation to the media houses. All that is paid by the media houses is, if the assessee achieves particular target while carrying out its business for its...

Customs Officer Is A Stranger To Contract Of Sale, Cannot Re-Determine FOB Value: CESTAT

The New Delhi Bench of Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has stated that no stranger to the contract of sale, including the Customs officer, has any right to re-determine the FOB or transactional value of goods. The Free on Board or (FOB )is one of the INCOTERMS – which are the terms used in international commerce. The INCOTERMS make the costs, risks and liabilities of the buyer and seller explicit. If the goods are exported on FOB basis, the seller is...