Excise Act | Statements Recorded During Probe Not Admissible Without Following Mandatory Procedure: CESTAT Delhi

The Customs, Excise & Service Tax Appellate Tribunal, Principal Bench, New Delhi, has held that statements recorded during investigation (Section 14) under the Central Excise Act cannot be relied upon unless the mandatory procedure governing their admissibility (Section 9D) is followed, and any penalty based solely on such statements is unsustainableSection 14 of the Central Excise Act, 1944, empowers authorized Central Excise Officers to summon any person to give evidence or produce...

CESTAT Chennai Allows ₹84 Lakh CENVAT Credit Claim By Komatsu India For Factory Expansion

The Chennai Bench of the Customs, Excise and Service Tax Appellate Tribunal has ruled that Komatsu India Pvt. Ltd. was entitled to claim tax credit worth Rs 84.08 lakh on services used to expand its factory. A coram of Judicial Member P. Dinesha and Technical Member Vasa Seshagiri Rao noted that the company, which manufactures dump trucks, had added a new facility next to its existing plant to produce hydraulic excavators. While expanding the plant, the company took credit for taxes paid on...

Only Input Credit Used For Both Taxable and Exempt Activities Must Be Reversed: CESTAT Chennai

The Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) at Chennai has held that while reversing CENVAT credit under Rule 6(3A) of the CENVAT Credit Rules, 2004, only common credit used for both taxable and exempted activities needs to be considered and not credit used exclusively for dutiable goods. The tribunal set aside the demands, interest, and penalties against Tamil Nadu Newsprint and Papers Ltd.Rule 6(3A) of the CENVAT Credit Rules, 2004, provides a formula-based, actionable...

Freight, Insurance Includable In Assessable Value For Excise Duty If Delivery at Buyer's Premises: CESTAT Ahmedabad

The Customs, Excise and Service Tax Appellate Tribunal (CESTAT), Ahmedabad Bench, has held that freight and insurance charges are includable in the assessable value for excise duty where goods are delivered at the buyer's premises and not at the factory gate, thereby upholding the demand of duty, interest, and penalty. Referring to Section 4 of the Central Excise Act, 1944, the tribunal observed, "Above provisions clearly indicate that when excisable goods are not sold at the factory gate but...

Excise Duty Recovery During Stay On Demand Treated As 'Under Protest'; Refund Not Time-Barred: Madras HC

The Madras High Court has held that where the Department appropriates amounts during the pendency of an appeal against a Excise duty demand despite a subsisting stay order, such amounts must be treated as paid under protest, and a refund cannot be denied on the ground of limitation.The bench stated that "If the revenue is permitted to adopt such novel ways to adjust the amounts by getting over an order of stay and thereby indirectly recovering the money, it cannot be construed as a duty payable...

Tobacco Pouches Up To 10g Not Liable To MRP-Based Excise Duty: CESTAT Chandigarh

The Customs, Excise and Service Tax Appellate Tribunal (CESTAT), Chandigarh, has ruled that small tobacco pouches of 4 grams and 9 grams are not liable to MRP-based valuation under Section 4A of the Central Excise Act, 1944, allowing a batch of appeals filed by Shiva Tobacco Co. and others. If Section 4A (MRP-based valuation) does not apply, valuation falls back to Section 4 (transaction value).The bench comprising Judicial Member S. S. Garg and Technical Member P. Anjani Kumar delivered the...

One Department Wing Cannot Contradict Another On Excise Duty Assessment: CESTAT Chennai

The Chennai Bench of the Customs, Excise and Service Tax Appellate Tribunal (CESTAT) on 2 April held that Central Excise authorities cannot question or reclassify goods already assessed by Customs at the time of import. A Bench comprising Judicial Member P. Dinesha and Technical Member M. Ajit Kumar set aside the demand of CENVAT credit on imported software by Emerson Process Management Chennai Pvt. Ltd. The Tribunal observed: “When payment of CVD & SAD was accepted and the Customs...

Himachal Pradesh High Court Quashes Distillery Licence Cancellation Over Lack Of Independent Application of Mind

The Himachal Pradesh High Court set aside the cancellation of distillery licences, holding that the decision was influenced by an unauthorised recommendation and lacked independent application of mind. It permitted fresh adjudication by the competent authority. Justice Jyotsna Rewal Dua was dealing with a writ petition filed by a distillery licensee (Tiloksons Brewery & Distillery) challenging cancellation of its licences in Forms D-2 and L-11 under the Himachal Pradesh Excise Act, 2011.The...

Recovery Proceedings Can Be Initiated Only Against Persons Liable To Pay Excise Duty: CESTAT Mumbai

The Mumbai Bench of the Customs, Excise and Service Tax Appellate Tribunal (CESTAT) on 12 April held that proceedings under Section 11A of the Central Excise Act, 1944 cannot be initiated against persons who are not chargeable with duty. Section 11A provides the statutory mechanism for recovery of unpaid or short-paid excise duty within one year in normal cases and within five years in cases involving fraud.A Bench comprising Judicial Member S.K. Mohanty and Technical Member M.M. Parthiban set...

CESTAT Bangalore Sets Aside ₹1.52 Crore Excise Demand, Rejects Arbitrary Profit Loading In Job Work Valuation

The Customs, Excise & Service Tax Appellate Tribunal (CESTAT), Bangalore, has recently set aside a demand exceeding Rs. 1.52 crore, holding that the valuation of goods manufactured through job work and sold to job workers cannot be determined on arbitrary assumptions. The tribunal ruled that where goods are cleared on a principal-to-principal basis and price is the sole consideration under Section 4(1)(a) of the Central Excise Act, the transaction value must be accepted.The ruling was...

Job Worker Entitled To CENVAT Credit On Capital Goods Despite Invoice Name Mismatch: CESTAT Chennai

The Chennai Bench of the Customs, Excise & Service Tax Appellate Tribunal (CESTAT) on 30 March, held that a job worker can avail CENVAT credit on capital goods even if invoices are not issued in its name, provided the goods are received, accounted for, and used in the manufacturing process. A Bench comprising Judicial Member P. Dinesha and Technical Member Vasa Seshagiri Rao held: “In view of the above discussions, we are of the view that the allegation of the Revenue that ACPL had availed...

Invoice Errors Cannot Block CENVAT Credit If Receipt And Use of Goods Are Proven: CESTAT Bangalore

The Bangalore Bench of the Customs, Excise & Service Tax Appellate Tribunal (CESTAT) on 24 March clarified that minor discrepancies in invoices cannot justify denial of CENVAT credit where the receipt and use of goods are duly established. A Bench comprising Judicial Member Dr. D.M. Misra and Technical Member Pullela Nageswara Rao held that the denial of credit to Kavveri Telecom Products Ltd., the appellant, was unjustified, as it had produced sufficient documentary evidence demonstrating...