FTA Benefit Available On Import Of Clear Float Glass From Malaysia, Eligible For BCD Exemption: CESTAT

The Chennai Bench of Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has held that the Free Trade Area (FTA) benefit is available on the import of clear float glass (CFG) from Malaysia, and the assessee is eligible for Basic Custom Duty (BCD) exemption.The bench of Sulekha Beevi C.S. (Judicial Member) and Vasa Seshagiri Rao (Technical Member) has observed that the CFG is rightly classifiable under CTH 70051090 as identical imports of CFG were initially assessed provisionally in...

No Interest Is Payable For Intervening Period If Sufficient Balance Is Maintained In CENVAT Credit Account: CESTAT

The Kolkata Bench of Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has held that if the assessee is maintaining sufficient balance in their CENVAT credit account, then they are not required to pay interest for the intervening period.The bench of Ashok Jindal (Judicial Member) and K. Anpazhakan (Technical Member) has observed that the appellant had sufficient balance in their CENVAT credit account during the intervening period when they had taken the excess credit.The appellant or...

CENVAT Credit Can't Be Denied For Belatedly Filing ER1 Returns: CESTAT

The Chennai Bench of Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has held that under cenvat credit cannot be denied for belatedly filing ER1 Returns.The bench of M. Ajit Kumar (Technical Member) has observed that in the CENVAT scheme, there is no one-to-one correlation between the inputs and the final product. There was no time limit during which credit had to be taken on duty-paid documents. In the absence of any allegation of fraud or that the documents on which the credit was...

Refund Claim Can't Be Rejected On The Basis Of Mismatch In SAD And VAT/CST: CESTAT

The Chennai Bench of Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has held that the refund claim cannot be rejected on the basis of a mismatch between Special Additional Duty of Customs (SAD) and Value Added Tax (VAT).The bench of M. Ajit Kumar (Technical Member) has observed that minor discrepancies of description mentioned in the invoice vis-à-vis the bill of entry do not go to the root of the validity of the refund claim and are curable. . Similarly, the mismatch in the SAD...

Service Tax Not Payable On Revenue Sharing Arrangement Between Exhibitors & Distributors Of Films: CESTAT

The Mumbai Bench of Customs, Excise, and Service Tax (CESTAT) has held that the no service tax is payable on revenue sharing arrangements between exhibitors and distributors of films.The bench of Justice Dilip Gupta (President) and C. J. Mathew (Technical Member) has observed that the theatre owner screens or exhibits a movie that has been provided by the distributor. Such an exhibition is not a support or assistance activity but is an activity of its own accord. The activity cannot fall under...

Kopiko Is A Sugar Confectionary, Classifiable Under Heading 1704: CESTAT

The Ahmedabad Bench of Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has held that 'Kopiko (cappuccino and espresso varieties)' contains more than 74% sugar and glucose and is classifiable under heading 1704. The bench of Ramesh Nair (Judicial Member) and Raju (Technical Member) has observed that the product 'Kopiko' is described in heading 1704 and the description given in 2101 is more general for the reason that the sugar confectionery is a specific product, whereas the...

Import Of Floodlight For World Cup On Duty Exemption, SCN To Pay Duty, On Assumptions And Presumptions: CESTAT

The Chennai Bench of Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has held that the customs duty exemption is allowable on the use of flood lights installed in the stadium for all matches, including the conduct of one-day international matches.The bench of Sulekha Beevi C.S. (Judicial Member) and Vasa Seshagiri Rao (Technical Member) has observed that the ad hoc exemption order was issued with certain conditions. The second condition of the order states that the goods shall not...

CESTAT Weekly Round-Up: 11 To 17 August 2024

No Service Tax Payable On Laying Down Water Supply Pipelines For Govt.: CESTATCase Title: M/s Electrosteel Castings Limited Versus Commissioner of Service Tax, KolkataThe Kolkata Bench of Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has held that the assessee is not liable to pay service tax for the activity undertaken by them for laying down the pipelines for government/government undertakings for supply of water from KWA in Thiruvananthapuram City.Arranging Package Tour Can't...

SEZ Unit In India Is A Territory Deemed To Be Outside India, No Excise Duty Payable On Manufacturing Goods: CESTAT

The Ahmedabad Bench of Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has held that the SEZ Act exempts all duties in respect of the goods manufactured in the Special Economic Zones (SEZ). The bench of Ramesh Nair (Judicial Member) and Raju (Technical Member) has observed that since the SEZ unit has been excluded from the levy of the duty of excise, the same exclusion shall apply in respect of the levy of Special Additional Excise Duty (SAED) and Additional Duty of Excise (AED)....

CHA's Employees Can't Be Penalised On Charge Of Wrong Availment Of Drawback By Exporter: CESTAT

The Ahmedabad Bench of Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has held that the employees of Customs House Agent (CHA) cannot be penalized on charge of wrong availment of drawback by the exporter.The bench of Ramesh Nair (Judicial Member) and Raju (Technical Member) has observed that the appellants are neither the exporter of the goods nor the CHA. The entire case of overvaluation is attributed to exporters and CHA. As far as the allegation of fraudulent claim of duty...

No Service Tax Payable On Clinical Trial On Drugs Supplied By Foreign Service Recipient: CESTAT

The Ahmedabad Bench of Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has observed that no service tax is payable on the activity of clinical trials on the drugs supplied by the foreign service recipient.The bench of Ramesh Nair (Judicial Member) and C.L. Mahar (Technical Member) has observed that the activity of clinical trials on the drugs supplied by the foreign service recipient to the appellant amounts to export of service.During the course of the audit of the appellant's...

Direction For Payment Of Mandatory Pre-deposit Doesn't Constitute 'Order' Within Meaning Of Sec 35G of Central Excise Act: Calcutta High Court

Taking note of Section 35G of the Central Excise Act, the Calcutta High Court clarified that an appeal shall lie to the High Court from “every order” passed in appeal by the Appellate Tribunal, though the maintainability thereof would be dependent on certain statutory limitations. As per Section 35G of Central Excise Act, 1944, an appeal shall lie to the High Court from every order passed in appeal by the Appellate Tribunal on or after the 1st day of July, 2003 (not being an order...