Appeal Filed On Next Working Day After Sunday Deadline Within Limitation: Madhya Pradesh High Court

The Madhya Pradesh High Court on 28 October held that when the last day of the condonable period for filing an appeal falls on a Sunday, an appeal filed on the next working day cannot be rejected as time-barred. A Bench comprising Chief Justice Alpesh Y. Kogje and Justice Vivek Jain allowed the appeal and set aside the orders of the Customs, Excise and Service Tax Appellate Tribunal (CESTAT) and the Commissioner (Appeals), which had rejected the appellant's service tax appeal as time-barred....

CESTAT Chennai Sets Aside ₹3.03 Crore Demand Against Ford India Over Premature CENVAT Credit

The Chennai Bench of the Customs, Excise and Service Tax Appellate Tribunal (CESTAT) on 29 October set aside the denial of CENVAT credit to Ford India Private Limited, holding that its Sanand unit was eligible to avail the credit upon commencement of production and that taking credit before receiving the capital goods amounted, at most, to premature availment. A Bench comprising Judicial Member P. Dinesha and Technical Member M. Ajit Kumar observed: “It is also an undenied fact that upon...

CESTAT Chennai Allows Royal Enfield's CENVAT Credit Appeals, Sets Aside ₹51.47 Lakh Penalty

The Customs, Excise and Service Tax Appellate Tribunal (CESTAT), Chennai, on 15 October allowed appeals filed by Royal Enfield and set aside demands for reversal of CENVAT credit and penalties imposed on the company. A Bench comprising Judicial Member Ajayan T.V. and Technical Member Vasa Seshagiri Rao held that the absence of a separate Input Service Distributor (ISD) registration did not, by itself, disentitle the company from claiming credit on eligible input services. It observed: “we find...

CESTAT Chennai Allows ₹3.91 Lakh CENVAT Benefit To HUL, Says Job Workers' Tax Exemption No Bar

On 22 October, the Customs, Excise and Service Tax Appellate Tribunal (CESTAT), Chennai, set aside the denial of Rs. 3,91,207 in CENVAT credit to Hindustan Unilever Limited on service tax paid by job workers, along with the consequential interest and penalty. A Bench comprising Judicial Member Ajayan T.V. allowed the company's appeal, holding that Section 5A(1A) of the Central Excise Act, 1944, which bars payment of duty on absolutely exempt goods, does not apply to service tax under the...

CESTAT Chennai Remands Ramco Cements' CENVAT Dispute, Says Actual Nature Of Work Must Be Examined

The Customs, Excise and Service Tax Appellate Tribunal (CESTAT), Chennai, on 15 October set aside the CENVAT credit demand against Ramco Cements Ltd. and remanded the matter to the adjudicating authority to examine the services contractor-wise and quantify the demand falling within the normal limitation period. A Bench comprising Judicial Member Ajayan T.V. and Technical Member Vasa Seshagiri Rao held that machinery installation, repair and maintenance services cannot be excluded from CENVAT...

CESTAT Kolkata Allows CENVAT Credit On Sales Commission For Goods Sold Through Depots

The Customs, Excise and Service Tax Appellate Tribunal (CESTAT), Kolkata, has ruled that commission paid to agents for procuring orders, arranging dispatches, and collecting payments for goods sold through a manufacturer's depots is eligible for CENVAT credit where the depot is the place of removal.A Bench comprising Judicial Member R. Muralidhar and Technical Member K. Anpazhakan held that the commission services qualified as input services under Rule 2(l) of the CENVAT Credit Rules, 2004. The...

CENVAT Credit Cannot Be Denied On Works Contract Goods Outside Service Tax Levy: CESTAT Chennai

On 9 October, the Customs, Excise and Service Tax Appellate Tribunal (CESTAT) at Chennai, held that the Explanation to Rule 3 of the CENVAT Credit Rules, 2004, does not bar CENVAT credit on duty-paid capital goods transferred under a works contract, as the value of such goods falls outside the service tax levy. A Bench of Judicial Member Ajayan T.V. and Technical Member Vasa Seshagiri Rao allowed appeals filed by Toshiba JSW Power Systems Private Limited and set aside the denial of CENVAT...

Bagasse-Generated Electricity Sold To State Utility Not Liable For 6% CENVAT Reversal: CESTAT Mumbai

The Mumbai bench of the Customs, Excise and Service Tax Appellate Tribunal (CESTAT) has held that electricity generated from bagasse and sold to a state electricity authority cannot attract the 6% payment under Rule 6(3) of the CENVAT Credit Rules, 2004.The tribunal observed that “electricity produced from bagasse and sold to electricity authority of State Government cannot be subjected to payment of amount equal to 6% of the value of electricity sold by them under Rule 6(3)”.A Bench comprising...

Mere Excise Registration Lapse Not Wilful Suppression If Dept. Knew About Unit: Allahabad High Court

The Allahabad High Court on 25 September held that the extended five-year limitation period under the proviso to Section 11-A(1) of the Central Excise Act, 1944 cannot be invoked merely because a manufacturer failed to register or produce declarations, where the department already knew about his manufacturing unit and the goods manufactured there. Justice Irshad Ali quashed the demand of Rs.6,27,086/- in Additional Excise Duty and the equivalent penalty imposed on Siraj Ahmad, proprietor of...

Karnataka High Court Dismisses Revenue Appeal Against Microsoft India In CENVAT Refund Case

The Karnataka High Court has dismissed the Revenue's appeal against a tribunal order holding that Microsoft India (R&D) Pvt. Ltd. was entitled to a cash refund of accumulated CENVAT credit on services provided to its overseas entities. A Division Bench of Justice R. Devdas and Justice K. Manmadha Rao was hearing the appeal against the Customs, Excise and Service Tax Appellate Tribunal's (CESTAT) December 9, 2024 order. The tribunal had held that the services provided by Microsoft India to...

Karnataka High Court Says Appeal Against CESTAT Order On GTA Classification Lies Before Supreme Court

The Karnataka High Court on 24 September held that an appeal against an order of a Customs, Excise & Service Tax Appellate Tribunal (CESTAT) on the classification and taxability of services as “Goods Transport Agency” (GTA) service lies before the Supreme Court under Section 35L of the Central Excise Act, 1944, and not before the High Court under Section 35G. A Division Bench comprising Justices R. Devdas and K. Manmadha Rao dismissed the Central Excise Appeal filed by the Commissioner of...

Mandatory Type Testing Charges Includible In Excise Value Of ACSR Conductors: CESTAT Ahmedabad

The Ahmedabad Bench of the Customs, Excise and Service Tax Appellate Tribunal (CESTAT) on 23 September held that mandatory type-testing charges collected from a buyer form part of the assessable value of ACSR conductors for central excise purposes. A Bench comprising Judicial Member Dr. Ajaya Krishna Vishvesha and Technical Member Satendra Vikram Singh upheld the central excise duty demand against Smita Conductors Ltd. on testing charges collected from Power Grid Corporation of India Ltd. for...