Excise Appeals To High Court On Substantial Questions Of Law Maintainable After NTT Act Struck Down: Patna High Court

The Patna High Court has recently held that appeals to High Courts in central excise matters involving substantial questions of law remain maintainable after the Supreme Court struck down the National Tax Tribunal Act, 2005, which had omitted the provision providing for such appeals. The court held that “The earlier provision mentioned in Section 35G of the Central Excise Act, 1944, Section 130 of the Customs Act, 1962 (52 of 1962) as well as any other provisions of law which were omitted by...

CESTAT Mumbai Allows CENVAT Credit On GTA Services In FOR Contract, Holds Buyer's Premises As Place Of Removal

The Mumbai Bench of the Customs, Excise and Service Tax Appellate Tribunal (CESTAT) has allowed CENVAT credit on Goods Transport Agency (GTA) services used for outward transportation, holding that where goods are supplied on FOR (Free on Road) destination basis, the buyer's premises can be treated as the “place of removal." A single-member coram comprising Judicial Member Ajay Sharma dealing with an appeal filed by Gnat Foundry Pvt. Ltd. challenging the denial of CENVAT credit on GTA services...

Meghalaya High Court Strikes Down Excise Notification Cutting Liquor Retailers' Profit Margin From 20% to 15%

The Meghalaya High Court on Thursday struck down a state excise notification that reduced the maximum profit margin for liquor retailers from 20% to 15%, holding that the move unfairly burdened retailers while leaving other stakeholders unaffected, making it arbitrary and violative of Article 14.The court noted that while retailers' margins were reduced, other stakeholders such as Central Bonded Warehouses and Bonded Warehouses continued at existing margins. A coram comprising...

Amortised Cost Of Moulds And Dies Includible In Assessable Value Under Excise Act: CESTAT Chennai

The Chennai Bench of the Customs, Excise and Service Tax Appellate Tribunal (CESTAT) on 25 March 2026 held that the amortised value of moulds and dies supplied by customers must be included in the assessable value of finished goods under excise law. A Bench comprising Technical Member Vasa Seshagiri Rao and Judicial Member Ajayan T.V. partly allowed the appeal filed by Best Cast IT Ltd., a manufacturer of aluminium die-cast automotive components. The Tribunal noted: "The statutory...

Supreme Court Sets Aside Excise Demand On RCF, Says Exemption On Naphtha Depends On Intended Use

The Supreme Court has set aside central excise duty demands raised against Rashtriya Chemicals and Fertilizers Ltd over alleged wrongful availment of exemption on Naphtha procured for use in the manufacture of fertilizer, holding that in the facts of the case the benefit of the exemption notification could not be denied merely because the fuel was used in a common steam generation plant supplying different units of the factory.The case arose from a series of show cause notices issued over...

Department Cannot Demand 6% Of Value On Exempted Electricity Once Credit Is Reversed: CESTAT Chennai

The Chennai Bench of the Customs, Excise and Service Tax Appellate Tribunal (CESTAT) on 18 March, held that once a taxpayer reverses proportionate CENVAT credit attributable to exempted goods, the Department cannot compel payment of 6% of the value of such goods. The Bench of Judicial Member P. Dinesha and Technical Member Vasa Seshagiri Rao, allowed the appeals by EID Parry India Ltd., holding the demands and penalties unsustainable both on merits and limitation. “The appellant has...

CESTAT Chennai Sets Aside ₹221 Crore Excise Demand Against MRF; Strapped Tyres Not Pre-Packaged Goods

The Chennai Bench of the Customs, Excise and Service Tax Appellate Tribunal (CESTAT) has set aside a demand of over Rs. 221 crore raised against MRF Limited, holding that tyres, tubes and flaps tied with plastic straps do not constitute “pre-packaged commodities” under the Legal Metrology Act, 2009, and therefore cannot be subjected to MRP-based valuation under Section 4A of the Central Excise Act, 1944.A bench comprising Judicial Member P. Dinesha and Technical Member Vasa Seshagiri...

Transportation Of Mining Rejects To Dumping Yard Qualifies For CENVAT Credit: CESTAT Chennai

The Chennai Bench of Customs, Excise and Service Tax Appellate Tribunal (CESTAT) has held that transportation of waste and reject materials arising during mining operations qualifies as an 'input service', and accordingly, CENVAT credit is allowed to Chettinad Cement Corporation Ltd. A Bench comprising Judicial Member P. Dinesha and Technical Member Vasa Seshagiri Rao allowed the appeal, setting aside the impugned order that had denied credit on services relating to loading and transportation...

Absence Of Check-Post Stamps Not Proof Of Clandestine Removal: CESTAT Mumbai

The Mumbai Bench of Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has held that a mere absence of check-post stamps on transportation documents cannot create a presumption that goods were not transported. A Bench comprising Judicial Member S.K. Mohanty and Technical Member M.M. Parthiban observed: ".....that only for the reason that the check-post documents were not produced or were incomplete, it does not mean that the goods were not transported as the documents like Bilty,...

Shahnaz Ayurvedics' Products Are Ayurvedic Medicines, Not Cosmetics; CESTAT New Delhi Sets Aside Excise Duty Demand

The New Delhi Bench of the Customs, Excise and Service Tax Appellate Tribunal (CESTAT) has held that the 18 disputed products manufactured by Shahnaz Ayurvedics are Ayurvedic Patent and Proprietary medicines and not cosmetics, and therefore the excise duty demand, interest and penalties raised by the Department cannot be sustained. The bench comprising President Justice Dilip Gupta and Technical Member P.V. Subba Rao observed that the mere presence of excipients or fillers cannot take a...

Rebate Cannot Be Denied On Procedural Lapses If Export Duty Payments Are Undisputed: Gujarat High Court

The Gujarat High Court on 20 February, held that a rebate of central excise duty on exported goods cannot be denied merely due to procedural lapses, such as non-submission of original ARE-1 documents, when the fact of export and payment of duty is otherwise established through supporting records. A Division Bench of Justice A. S. Supehia and Justice Pranav Trivedi allowed the writ petition filed by Ashland India Private Limited, setting aside orders that had rejected the company's rebate claim...

Supreme Court Grants Anticipatory Bail To Businessman Accused Of Supplying Bottles And Caps For Spurious Liquor

The Supreme Court on Tuesday granted anticipatory bail to a businessman accused of supplying plastic bottles, caps bearing government labels and cardboard boxes allegedly used for bottling spurious liquor. The Court noted that he was not initially named in the FIR and that no raid had been conducted at his place of business.A bench of Justices Prashant Kumar Mishra and N.V. Anjaria allowed the appeal filed by Manoj Kumar Mutta and set aside the Andhra Pradesh High Court's order dated December 5,...