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...

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...