Calcutta High Court Grants Private Companies Same Excise Fee Exemption As Public Companies For Management Changes

Holding that the State cannot create artificial distinctions between similarly placed licensees in the matter of excise fee exemptions, the Calcutta High Court has ruled that private limited companies are entitled to the same treatment as public limited companies when changes in management occur in the ordinary course of business. The Court made it clear that even though liquor trade is a regulated privilege of the State, the manner in which that privilege — or exemptions attached to it — is...

CESTAT Quashes Rs 3.47 Crore Duty Demand On Myntra Jabong, Says No Wilful Suppression

The Delhi Bench of Customs, Excise and Service Tax Appellate Tribunal (CESTAT) on Friday set aside a Rs 3.47 crore customs duty demand against Myntra Jabong India Pvt Ltd, holding that the extended limitation period under Section 28(4) of the Customs Act could not be invoked in a classification dispute.Allowing the appeal, The Tribunal noted that the company had deposited the entire differential duty along with interest before issuance of the show cause notice and that its failure to mention the...

S.108 Customs Act | Statements Recorded By Customs Officers Sufficient To Proceed To Trial: Kerala High Court

The Kerala High Court has refused to discharge one of the accused in a CBI corruption case, holding that in the present case, statements recorded by Customs officers under Section 108 of the Customs Act, along with other materials constitute sufficient prima facie grounds to proceed to trial. “Thus, in the instant case, prima facie, there are materials to proceed with trial of the revision petitioner/accused No.3. No doubt, the evidentiary value of approvers and how far the same to be believed...

Ready Rotis Classifiable as Bread, Not Ready-To-Eat Food; CESTAT Grants Nil Excise Duty

The New Delhi Bench of the Customs, Excise and Service Tax Appellate Tribunal (CESTAT) has held that “Ready Roti/Halka Fulka” manufactured by Ready Roti India Pvt. Ltd. is classifiable as bread and not as packaged or instant food, and is therefore chargeable to a nil rate of excise duty. The bench of Judicial Member Ajay Sharma and Technical Member P.V. Subba Rao was dealing with an appeal against an order upholding excise duty demand, interest and penalty on the allegation that the appellant...

Bought-Out Optional Plywood Tops Value Not Includible In Excise Duty on Folding Cots: CESTAT Kolkata

In partial relief to Shree Durga Industry, the Kolkata Bench of the Customs, Excise and Service Tax Appellate Tribunal (CESTAT) has held that while fabrication of steel folding cots amounts to “manufacture” under the Central Excise Act, the value of optional plywood tops procured from the open market cannot be added to the assessable value for levy of excise duty. The bench of Judicial Member R. Muralidhar and Technical Member K. Anpazhakan was hearing appeals filed by Shree Durga Industry and...

Second-Hand Digital Multifunction Machines Imported Pre-2012 Not Confiscable: CESTAT Chennai

The Chennai Bench of Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) on 19 February held that second-hand digital multifunction print and copying machines imported before June 2012 were freely importable and not liable to confiscation. A Bench comprising Judicial Member P. Dinesha and Technical Member Vasa Seshagiri Rao were hearing an appeal by Jaya Trading Company. The members examined whether the rejection of the importer's appeal on limitation was legally sustainable and...

Housekeeping, Manpower Services Eligible For CENVAT Credit Post-2011: CESTAT Chennai

The Chennai Bench of Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) on 23 February held that CENVAT credit on services such as housekeeping, gardening, pest control, manpower supply, and business membership cannot be denied merely due to the post-2011 amendment, so long as the services have a clear connection with manufacturing or business activity. A Bench comprising Judicial Member P. Dinesha and Technical Member Vasa Seshagiri Rao was hearing an appeal filed by Cetax...

Pre-Adjudication Amount Paid Under Protest Is Deposit, Not Duty; CESTAT Allahabad Grants 12% Interest From Deposit

The Allahabad Bench of the Customs, Excise and Service Tax Appellate Tribunal (CESTAT) has held that, in the facts of the case, an amount paid under protest during investigation, before any adjudication or confirmed demand, cannot be treated as “duty” but only as a deposit. It ruled that interest on such a refund is payable at 12% per annum from the date of deposit till the date of actual refund. The order was passed by Judicial Member P.K. Choudhary while allowing the appeal filed by T T...

Importer Who Voluntarily Pays Differential Customs Duty, Seeks DRI Probe Closure Cannot Claim Refund: Madras High Court

The Madras High Court on Wednesday held that differential customs duty voluntarily paid during a Directorate of Revenue Intelligence (DRI) investigation cannot be claimed as a refund. The Court further held that Notification No. 25/2019-Customs amended the applicable customs duty rate by treating shrimp larvae feed in both pellet and non-pellet form as attracting 5% basic customs duty. The notification cannot be applied retrospectively to imports made prior to its issuance.The judgment was...

Non-Declaration Of Gold At Green Channel Not Always Smuggling: Delhi High Court

The Delhi High Court has recently held that in a case of non-declaration of gold at the Green Channel which does not amount to smuggling, absolute confiscation may be disproportionate and redemption on payment of fine may be permitted.A Division Bench of Justices Nitin Wasudeo Sambre and Ajay Digpaul observed,“The release is permitted only upon payment of redemption fine and penalty, along with applicable duty. The orders under challenge therefore do not condone the violation and instead...

Voluntary Statements To Customs Officers Can Sustain Conviction: Supreme Court

The Supreme Court has recently reiterated that statements recorded by Customs officers under Section 108 of the Customs Act, 1962, constitute substantive evidence and can sustain a conviction if shown to be voluntary. A bench of Justice Vikram Nath and Justice Sandeep Mehta reaffirmed the Gujarat High Court's judgment holding that, “Statements recorded under Section 108 of the Customs Act, 1962 by duly authorized Customs Officers are admissible in evidence and do not attract the bar...

No Service Tax On Exempt Road, Canal Works Based Solely On TDS Deduction: CESTAT Allahabad

The Allahabad Bench of the Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) on 20 February held that mere deduction of TDS and reflection of receipts in Form 26AS cannot determine service tax liability when the underlying activity, i.e., construction of roads and canals for Government authorities, is expressly exempt under the Mega Exemption Notification. A Bench comprising Judicial Member P.K. Choudhary allowed an appeal by Shailja Construction, noting that the entire demand...