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...

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...

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...

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...

No Bar On CENVAT Credit Where Supplementary Invoice Is Not Linked To Suppression: CESTAT Kolkata

The Kolkata Bench of the Customs, Excise and Service Tax Appellate Tribunal (CESTAT) on 13 February, allowed an appeal by Agrasen Sponge Pvt. Ltd., holding that CENVAT credit claimed on the basis of supplementary invoices issued by Mahanadi Coalfields Ltd. (MCL) is admissible where the additional duty arose due to an interpretational dispute and not on account of suppression or fraud. A Bench comprising Judicial Member R. Muralidhar set aside the order of the Commissioner (Appeals),...

No Excise Duty On Dolochar Generated During Sponge Iron Production: CESTAT Kolkata

The Kolkata Bench of Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has held that 'dolochar' generated during the manufacture of sponge iron is an inevitable waste and not a manufactured excisable product. Therefore no central excise duty is payable on its clearance. A Bench comprising Judicial Member Ashok Jindal and Technical Member K. Anpazhakan was hearing an appeal filed by Kaushal Ferro Metals (P) Ltd., challenging the confirmation of excise duty along with interest and...