EXCISE
Central Excise Tariff Act | Test Reports Justifying Reclassification Must Be Disclosed to Manufacturer : Supreme Court
The Supreme Court ruled that when a test report forms the basis for reclassification of the petrochemical products, necessitating a higher duty, than the copy of such test reports ought to be furnished to the manufacturer-taxpayer. The bench of Justices Abhay S. Oka and Ujjal Bhuyan set aside the ₹2.15 crore central excise duty demand against M/s Oswal Petrochemicals Ltd., holding that the revenue authorities had violated principles of natural justice by failing to share key evidence—such as...
“Pendants” Described As Jewellery Are Not Distinguishable On Basis Of Purity Of Gold, No Exemption From Excise Duty: CESTAT
The New Delhi Bench of Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has stated that there is no exemption on the articles described as pendants as the jewellery is not distinguishable on the basis of purity of gold. The Bench of Bintu Tamta (Judicial) and Hemambika R. Priya (Technical) has observed that, “The contention of the assessee that articles of jewellery do not cover pendant of 24 CARAT within its purview is misleading and unsustainable as nowhere in the Chapter...
Student Almanac And Teacher Planner Not Exigible To Excise Duty: CESTAT
The New Delhi Bench of Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has stated that Student Almanac and teacher planner not exigible to excise duty. The Bench of Justice Dilip Gupta (President) and P.V. Subba Rao (Technical Member) has observed that the submission of the assessee that since Student Almanac is used only by students of a particular school, it becomes a product of printing industry cannot be accepted. In this case, the issue in dispute is regarding the...
Vos Technologies Judgment On Time Bound Adjudication Of SCNs Applicable To Recovery Proceedings U/S 11A Of Central Excise Act: Delhi High Court
The Delhi High Court has held that Section 11A of the Central Excise Act 1944, which empowers taxing authorities to recover duties not levied/ short-levied or short-paid, is pari materia to corresponding provisions of the Customs Act, the Finance Act and the CGST Act.A division bench of Justices Yashwant Varma and Harish Vaidyanathan Shankar thus held that the High Court's judgment in M/S VOS Technologies India Pvt. Ltd. v. The Principal Additional Director General & Anr. (2024) is...
Amount Deposited As Service Tax If Refundable, Should Not Be Treated As Pre-Deposit U/S 35F Central Excise Act: CESTAT
The New Delhi Bench of Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has stated that the amount deposited as service tax, if refundable, should not be treated as pre-deposit under Section 35F of Central Excise Act, 1944. “Section 11B provides for refund of duty or service tax. If an amount is already paid as duty or service tax, it is reckoned while computing if any further amount needs to be paid to meet the mandatory requirement of pre-deposit under section 35F. Merely...
CESTAT Can't Reject Appeal Merely Because Pre-Deposit Was Made In Wrong Account, Especially When Rules Were Unclear: Delhi High Court
The Delhi High Court has held that merely because a pre-deposit prescribed under Section 35F of the Central Excise Act, 1944, for preferring an appeal is made in the wrong account, that too when the integrated portal might not have been fully functional, cannot result in rejection of appeal on the ground of defects.A division bench of Justices Prathiba M. Singh and Rajneesh Kumar Gupta was dealing with a petitioner preferred by M/s DD Interiors, challenging the return of its appeal by CESTAT,...
Mere Wrong Availment Of Exemption Notification Does Not Mean That Availment Was Done To Evade Payment Of Central Excise Duty: CESTAT
The New Delhi Bench of Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has stated that mere wrong availment of exemption notification does not mean that availment was done to evade payment of central excise duty. The Bench of Dilip Gupta (President) and P. V. Subba Rao (Technical) has observed that, “Mere wrong availment of an Exemption Notification would not lead to a conclusion that it was with an intent to evade payment of central excise duty unless the department is...
'Activity Did Not Involve Any Manufacturing, Central Excise Duty Was Collected Illegally': CESTAT Orders Refund
The New Delhi Bench of Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has granted a refund along with interest, despite the absence of a statutory provision for interest under central excise laws at the relevant time. The Bench of Binu Tamta (Judicial Member) and P.V. Subba Rao (Technical Member) has observed that “the amount collected by way of Central excise duty was illegal as the activity itself did not involve any manufacture and the same cannot be allowed to be...
Supreme Court Sets Aside Excise Duty Demand On Oil Marketing Companies For Inter-Supply Of Petroleum Products
In a significant relief for Oil Marketing Companies (OMCs), the Supreme Court ruled (Jan. 20) that prices under the MoU for inter-supply of petroleum products, designed to ensure smooth nationwide distribution, do not constitute "transaction value" and are exempt from excise duty due to their non-commercial nature. The Court emphasised that the inter-supply arrangement was not solely price-driven but aimed at facilitating seamless distribution, rendering it ineligible for excise duty.Holding so,...
Excise Duty Not Payable On 'Bagasse' Which Emerges As A Waste Product During Sugar Crushing: CESTAT
The Chennai Bench of Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has stated that excise duty is not payable on the Bagasse emerged as waste product during sugar crushing. The Bench of Ajayan T.V. (Judicial Member) and Vasa Seshagiri Rao (Technical Member) has observed that Bagasse emerged only as a waste product during crushing of sugarcane during the manufacturing process and though marketable, duty could not be imposed on it as there was no manufacturing activity...
Show Cause Notice U/s 37C Of Central Excise Act Issued At Wrong Address Cannot Be Proceeded: Gauhati High Court
The Gauhati High Court recently held that the recourse to Sub-Clauses (b) & (c) of Clause 37C (1) of the Central Excise Act, is not permitted if the show cause notice was not sent at the proper address of the registered taxpayer.The High Court also clarified that Sub-Clause (b) and Sub-Clause (c) of Section 37(C)(1) of the Act of 1944 can only be pressed into service, if the service of notice under Sub-Clause (a) cannot be affected.As per Section 37C of the Central Excise Act, 1944, any...
Assessee Entitled To Cash Refund Of Accumulated CENVAT Credit Despite Abolition Of Education Cess: CESTAT
The Ahmedabad Bench of Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has stated that merely because levy of education cess was abolished does not disqualify an assessee from availing Cenvat Credit on Education Cess and Secondary & Higher Education Cess.The Bench of Ramesh Nair (Judicial Member) and C L Mahar (Technical Member) has observed that “the abolition of Education Cess does not affect the accumulated Cenvat credit which was availed during the time when the Cenvat...