EXCISE
Coal Royalty Includible For Excise Valuation, Other Statutory Levies Excluded: CESTAT New Delhi
The Customs, Excise & Service Tax Appellate Tribunal (CESTAT), New Delhi, has partly allowed a batch of appeals filed by South Eastern Coalfields Limited, holding that royalty collected on coal sales is includible in the assessable value for levy of central excise duty, but only for the normal period of limitation. The tribunal, however, set aside excise duty demands on other statutory levies and quashed the invocation of extended limitation, penalty and interest. A coram comprising...
CESTAT Cannot Reject Taxpayer Appeals Below ₹2 Lakh On Monetary Limit Alone: Allahabad High Court
The Allahabad High Court recently held that the Customs, Excise and Service Tax Appellate Tribunal cannot mechanically reject a taxpayer's appeal on the ground that the amount involved is below ₹2 lakh. The Court said such appeals are maintainable as a rule and may be refused only in exceptional cases.The ruling was delivered by a Division Bench of Justice Saumitra Dayal Singh and Justice Indrajeet Shukla. Explaining the law, the bench said, "Thus, while appeals filed by the revenue, below the...
Barreled Bitumen Cost Included In Excise Valuation: CESTAT Ahmedabad
The Ahmedabad Bench of the Customs, Excise and Service Tax Appellate Tribunal (CESTAT) on 22 January upheld the inclusion of the cost of barrels for bitumen sold from depots. It clarified that barrelled bitumen is different from bulk clearances from a refinery and therefore, the two cannot be treated the same.A Bench comprising Judicial Member Dr. Ajaya Krishna Vishvesha and Technical Member Satendra Vikram Singh was examining whether the cost of barrels used for packing bitumen by Nayara Energy...
CENVAT Refunds For Deemed Exports Barred After One Year from End of Claim Period: Bombay High Court
The Bombay High Court's Nagpur Bench has recently held that a refund claim for unutilised CENVAT credit linked to deemed exports must be filed within the one-year time limit prescribed under Section 11B of the Central Excise Act, which governs refund claims under excise law. The court said this limitation applies even when the refund is sought under Rule 5 of the CENVAT Credit Rules, which allows exporters to seek a refund of credit that cannot be utilised. A Division Bench of Justice Anil L....
New Limitation Plea Without Records Not Maintainable Before CESTAT: Madras High Court
The Madras High Court dismissed an appeal filed by M/s Modern Engineering & Plastics Pvt. Ltd., holding that a plea on limitation cannot be raised for the first time before the Tribunal without supporting factual material on record. A Bench of Justice Anita Sumanth and Justice P. Dhanabal observed that limitation under Section 11A of the Central Excise Act, 1944 is a mixed question of law and fact, and cannot be examined by a court or tribunal in the absence of necessary evidence. The...
Branding Structures Installed At Indian Oil Fuel Stations Not Liable To Excise Duty: CESTAT
The Chandigarh Bench of the Customs, Excise and Service Tax Appellate Tribunal (CESTAT) has recently held that branding and signage structures installed at Indian Oil Corporation Ltd. fuel stations are not subject to central excise duty. These structures are known as Retail Visual Identity or RVI elements. They include monoliths, logos, directional signs and facility signs. The tribunal said the structures come into existence only at the site. Once installed, they become permanent. They...
Printing On Government-Supplied Watermarked Paper Does Not Attract Excise Duty: CESAT Bengaluru
The Bangalore Bench of the Customs, Excise and Service Tax Appellate Tribunal (CESTAT) has held that printing carried out on government-supplied watermarked paper for issuance of Record of Rights, Tenancy and Crops (RTC) does not attract central excise duty, and is classifiable under a nil-rated tariff entry. The Bench of Judicial Member Dr. D.M. Misra and Technical Member Pullela Nageswara Rao allowed the appeal filed by Samanthu Business Forms Pvt. Ltd., setting aside a duty demand of Rs....
Place Of Removal In FOR Sales Cannot Be Presumed As Factory Gate: CESTAT Chennai Reiterates
The Chennai Bench of the Customs, Excise and Service Tax Appellate Tribunal (CESTAT) has reiterated that the “place of removal” in FOR (Free on Road or Rail) destination sales cannot be mechanically assumed to be the factory gate and must be determined on the basis of facts and contractual terms. The tribunal set aside and remanded a service tax order denying CENVAT credit on outward transportation services after finding that the tax authorities had confirmed the demand without examining...
Kopiko Is Sugar Confectionery, Not Coffee-Based Product; 6%, Not 12%, Excise Duty Applies: CESTAT Hyderabad
The Customs, Excise and Service Tax Appellate Tribunal (CESTAT), Hyderabad, answering a reference made after conflicting rulings by its Hyderabad and Ahmedabad benches, has held that Kopiko, the coffee-flavored candy sold in India, is classifiable as sugar confectionery under the central excise tariff and not as a coffee-based preparation. As a result, the product falls under tariff heading 1704 9090, which attracts 6% excise duty, and not under heading 2101 1200, which carries a 12% duty. The...
Limitation Plea Can Be Raised At Any Stage As Long As Facts Are On Record: Madras High Court
In a recent ruling, the Madras High Court held that a belated plea of limitation cannot be entertained where the factual foundation necessary to examine such a plea is absent on record. The ruling came from a bench of Justice Dr. Anita Sumanth and Justice P Dhanabal while dismissing an appeal filed by Modern Engineering & Plastics Pvt. Ltd. The court noted that "Normally, limitation, if it were to be a pure question of law may be raised at any stage of the proceeding, and it would not...
CESTAT Mumbai Allows CENVAT Credit On Kinder Joy Plastic Toys Despite Excise Exemption On Toys
The Mumbai Bench of the Customs, Excise and Service Tax Appellate Tribunal (CESTAT) has allowed CENVAT credit on duty paid inputs and capital goods used to make plastic toys supplied with Kinder Joy chocolates. It held that such credit cannot be denied only because the toys were exempt from central excise duty. A coram of Judicial Member C.J. Mathew and Technical Member Ajay Sharma said that entitlement to CENVAT credit arises once duty-paid inputs or capital goods enter the factory. It can be...