Denial Of Cross-Examination Justified Under Excise Act When Statements Are Corroborated: Delhi High Court

The Delhi High Court has held that the right of cross-examination under Section 9D of the Central Excise Act, 1944 is not absolute, and may be lawfully denied in fact-specific circumstances, particularly where the witnesses are closely connected to the assessee and the allegations are supported by independent corroborative evidence.A Division Bench of Justices Nitin Wasudeo Sambre and Ajay Digpaul thus dismissed the appeal filed by an assessee, holding that neither the adjudicating authority nor...

Allahabad High Court Grants Interim Relief To Tobacco Factory Owners Against CCTV Rule Enforcement

The Allahabad High Court on 4 February granted interim relief to owners of tobacco factories by protecting them against coercive measures for non-compliance with the mandate to install CCTV cameras in the premises of factories manufacturing tobacco, gutka, pan masala, and other commodities specified under the Chewing Tobacco, Jarda Scented Tobacco and Gutkha Packing Machines (Capacity Determination and Collection of Duty) Rules, 2026 (The Rules).The Bench of Justice Saumitra Dayal Singh and...

Bombay High Court Upholds CESTAT Relief To KEC International In ₹4.42 Crore Excise Matter

The Bombay High Court on 4 February dismissed a Central Excise Appeal filed by the Revenue against KEC International Ltd., holding that no substantial question of law arose from the order of the Customs, Excise and Service Tax Appellate Tribunal (CESTAT) granting exemption benefits to the assessee. A Division Bench of Justice B. P. Colabawalla and Justice Firdosh P. Pooniwalla, while hearing the appeal, held that the Tribunal had examined the material on record and concluded that there was...

Calcutta High Court Grants Private Companies Same Excise Fee Exemption As Public Companies For Management Changes

Holding that the State cannot create artificial distinctions between similarly placed licensees in the matter of excise fee exemptions, the Calcutta High Court has ruled that private limited companies are entitled to the same treatment as public limited companies when changes in management occur in the ordinary course of business. The Court made it clear that even though liquor trade is a regulated privilege of the State, the manner in which that privilege — or exemptions attached to it — is...

Missing Export Form Not Fatal If Duty-Paid Export Proven: Gujarat High Court Restores Rs 1.29 Crore Excise Rebate

The Gujarat High Court has restored over Rs.1.29 Crore rebate claim of a merchant exporter, holding that the absence of original ARE-1 forms cannot defeat a rebate claim when export and duty payment are otherwise verifiable. ARE-1 stands for Application for Removal of Excisable Goods for Export. It was a statutory export document under the Central Excise Rules, 2002. It recorded details of manufacture, duty payment, and export. Under Rule 18, the original copy was ordinarily required to be...

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...

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...

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...

Bihar Excise Act | Patna High Court Reduces Penalty From 50% To 30% For Release Of Rental Car Seized With Liquor

The Patna High Court has slashed a 50 percent penalty imposed for releasing a rental car seized with nearly 318 litres of liquor. It ordered that the vehicle be released on payment of 30 percent of its insured value and struck down an additional 3 per cent charge as illegal. A Division Bench of Justice Rajeev Ranjan Prasad and Justice Sourendra Pandey noted that the vehicle owner was not an accused in the case and said the confiscation orders needed correction. The court observed, “This Court...

[Bihar Excise Act] Patna High Court Slashes 90% Penalty On Insurance Declared Value Of Seized Motorcycle To 10% In Liquor Case

The Patna High Court has relaxed an excessive penalty of 90% of Insurance Declared Value (IDV) to 10% on a motorcycle seized in a liquor-related offence. A Division Bench comprising Justice Rajeev Ranjan Prasad and Justice Sourendra Pandey held that, considering the quantum of liquor (18 litres), applying Rule 12A of the Bihar Prohibition and Excise Rules, 2021, which prescribes 10% of the insured value as the minimum penalty. The police intercepted the petitioner while riding his...

No Interest On Excise Duty Payable In Revenue-Neutral Situation Even Though Duty Demand Attained Finality: Calcutta High Court

The Calcutta High Court held that statutory interest under Section 11AB of the Central Excise Act is not leviable where the entire transaction is revenue-neutral and the duty paid is available as Cenvat Credit to downstream units, causing no loss to the exchequer. Justices Rajarshi Bharadwaj and Uday Kumar stated that the Tribunal has recorded a clear finding that the situation is revenue-neutral, inasmuch as the duty paid by the assessee was available as Cenvat credit to its ...