Madras High Court Directs Refund Of ₹6.41 Lakh To The Madras Club, Says Tax Burden Not Passed On Members

The Madras High Court on 1 September directed the authorities to refund Rs.6.41 lakh to The Madras Club, after finding that the club had not passed on the tax burden to its members to that extent. A Division Bench of Justices Anita Sumanth and C. Kumarappan partly allowed the club's appeal against a CESTAT order rejecting its refund claim. The judges held: “...in respect of the portion of the amount in a sum of Rs.9,09,717/-, the appellant has already passed on the burden to its members....

CENVAT Credit Available On Depot Clearing And Forwarding Services: CESTAT Hyderabad

The Hyderabad bench of the Customs, Excise and Service Tax Appellate Tribunal (CESTAT) has held that CENVAT credit is admissible on clearing and forwarding services provided at an assessee's depots. This includes receipt, unloading, storage, handling and loading of cement at depots from where the goods were subsequently sold.The tribunal observed, “Such services have a direct nexus with the appellant's business of manufacture and sale of cement and are eligible input services.” It held that...

CESTAT Delhi Allows ₹6.51 Crore CENVAT Credit To Bharat Aluminium On Coal Supplier's Invoices

The Delhi Bench of the Customs, Excise and Service Tax Appellate Tribunal has recently allowed Bharat Aluminium Company Limited (BALCO) to claim CENVAT credit of ₹6.51 crore on supplementary invoices issued by South Eastern Coalfields Limited (SECL). The tribunal held that the invoices were eligible for credit because SECL's earlier short-payment of excise duty was not due to fraud, collusion, wilful misstatement or suppression of facts.The Bench comprised Officiating President Dr. Rachna Gupta...

Cost Of Tools, Dies Used To Make Auto Parts Must Be Amortized For Excise Duty: CESTAT Delhi

The Delhi Bench of the Customs, Excise and Service Tax Appellate Tribunal (CESTAT) has ruled that the entire cost of tools and dies cannot be added to the assessable value of automobile parts. Only their amortized value can be included.“There cannot be any dispute that the final products cannot be manufactured without the tools and dies and, therefore, their value should included. However, they are not used only once but over and over again. Therefore, the cost of the tool or die has to be...

Gauhati High Court Directs Refund Of Cess Paid Under Mistake Of Law By Oil India And ONGC

The Gauhati High Court on 27 August held that the Central Excise Department cannot retain Education Cess (EC) and Secondary & Higher Education Cess (SHEC) paid under a mistake of law merely because the refund claim was filed beyond the prescribed limitation period. A Division Bench comprising Justices Michael Zothankhuma and Anjan Moni Kalita dismissed appeals filed by the Commissioner of CGST and Central Excise, Dibrugarh, in matters concerning Oil India Limited and Oil and Natural Gas...

Karnataka High Court Upholds Adjustment Of Excess Excise Duty Payment Towards Dues Of Another Firm

The Karnataka High Court has upheld the adjustment of an excess excise duty payment made towards the dues of one firm against the outstanding liability of another firm under the State's Karasamadhana-IV Scheme.A Division Bench comprising Justice Lalitha Kanneganti and Justice K.S. Hemalekha dismissed the State's appeal against the order of the Single Judge directing the authorities to adjust the excess amount of ₹43.23 lakh paid towards the liability of Nagalingaswami Trading Company (NTC)...

Sale Price Below Manufacturing Cost Cannot Be Accepted for Excise Valuation Even For Independent Buyers: CESTAT Allahabad

The Allahabad CESTAT has ruled that a manufacturer cannot automatically rely on a declared sale price for excise valuation merely because the buyer is an independent party when the price is substantially and continuously below the cost of manufacture.The tribunal made the finding in appeals filed by Eveready Industries India Ltd. over the valuation of batteries supplied to two torch manufacturers. It held that it was unnecessary to conclusively decide whether the buyers were “related persons”...

Sugar Syrup With 80% Sugar Used To Make Exempt Biscuits Is Excisable: CESTAT Ahmedabad

The Customs, Excise and Service Tax Appellate Tribunal (CESTAT), Ahmedabad on 31 August held that sugar syrup containing 80% sugar by weight is marketable and liable to excise duty. A Bench comprising Judicial Member Somesh Arora and Technical Member Satendra Vikram Singh partly allowed the appeal filed by ETC Agro Processing (India) Pvt. Ltd. against a demand of around Rs.49.68 lakh, while remanding the matter for verification and grant of eligible CENVAT credit on sugar used to manufacture...

CESTAT Hyderabad Says Sample Purchase Orders Cannot Establish All Sales Were FOR Sales

On 25 August, the Customs, Excise and Service Tax Appellate Tribunal (CESTAT), Hyderabad held that the Revenue cannot presume that all sales were on FOR (Free on Road) basis merely from sample purchase orders relied upon in the show cause notice. Technical Member A.K. Jyotishi and Judicial Member Angad Prasad dismissed the Department's appeal against Eco-Care Building Products Pvt. Ltd. and upheld the dropping of the substantial portion of the differential Central Excise duty demand for the...

CESTAT Ahmedabad Holds ₹54 Lakh Recovery Against Panasonic Time-Barred, Faults Department's Inaction

The Customs, Excise and Service Tax Appellate Tribunal (CESTAT), Ahmedabad on 24 August set aside recovery of Rs. 54,00,034 from Panasonic Life Solutions India, holding that the Department's show cause notice issued nearly six years after the credit was taken was barred by limitation. A Bench comprising Judicial Member Dr. Ajaya Krishna Vishvesha and Technical Member Satendra Vikram Singh held that recovery of irregular or excess credit under Notification No. 39/2001-CE is subject to the...

Deletion Of 'Setting Up' Does Not Bar CENVAT Credit On Plant-Setting Services: CESTAT Ahmedabad

On 19 August, the Ahmedabad Customs, Excise and Service Tax Appellate Tribunal (CESTAT) has held that CENVAT credit cannot be denied merely because the expression “setting up” was omitted from the definition of “input service” under Rule 2(l) of the CENVAT Credit Rules, 2004, with effect from 1 April 2011. A Bench comprising Judicial Member Dr. Ajaya Krishna Vishvesha and Technical Member Satendra Vikram Singh partially allowed appeals filed by ATC Tires Pvt. Ltd. against denial of CENVAT...

Non-Manufacturer Must Deposit Excess Excise Duty Collected From Buyer: CESTAT Delhi

The Customs, Excise and Service Tax Appellate Tribunal (CESTAT), Delhi, has held that a non-manufacturer who collects an amount representing excise duty in excess of the actual duty paid on goods must deposit the excess amount with the Central Government.A coram comprising Judicial Member Binu Tamta and Technical Member P.V. Subba Rao made the ruling while dismissing Vihaan Enterprises' appeal against a ₹4.00 crore demand under the Central Excise Act, 1944, along with interest.The demand was...