Patna High Court Upholds CENVAT Credit On Captive Power Plant Despite Surplus Power Supply

The Patna High Court on 24 July dismissed the Central Excise Department's appeal against Harinagar Sugar Mills Ltd. and upheld the Customs, Excise and Service Tax Appellate Tribunal's (CESTAT) order allowing the company to claim CENVAT credit on capital goods, input services and iron and steel items used in its manufacturing operations. A Division Bench of Justices Bibek Chaudhuri and Rana Vikram Singh held that the benefit cannot be denied merely because part of the electricity generated in...

CENVAT Credit Not Available On DEPB Scrip-Based Duty Payment Before 31 August 2004: Madras High Court

The Madras High Court on 23 July held that CENVAT credit cannot be claimed on additional customs duty adjusted through DEPB scrips for imports made before 31 August 2004, as such credit was available only where the duty was paid in cash. A Division Bench of Justices G. Jayachandran and N. Mala allowed the Revenue's appeal against Computer Graphics Ltd, holding that the taxpayer was not entitled to CENVAT credit on duty discharged through DEPB scrips and upholding the extended limitation period,...

Gujarat High Court Quashes ₹41.53 Cr Excise Notice Against Jindal Saw, Backs Finality Of HPC Certificates

The Gujarat High Court on 15 July quashed a Rs. 41.53 crore central excise recovery notice issued to Jindal Saw Ltd., holding that the Commissioner of Central Excise had no jurisdiction to question eligibility certificates issued by the High Powered Committee under the exemption notification. A Division Bench of Justices A.S. Supehia and Vaibhavi D. Nanavati held that allegations of fraud or misrepresentation in obtaining such certificates could only be examined by the statutory committee that...

Madras High Court Directs SVLDRS Relief To SB Aditya Power Projects In CENVAT Credit Dispute

The Madras High Court on 25 June held that authorities cannot reject a CENVAT credit claim on a ground that was not raised in the original show cause notice, and set aside the order denying credit under the Sabka Vishwas (Legacy Dispute Resolution) Scheme (SVLDRS). Justice Senthilkumar Ramamoorthy allowed the petition filed by SB Aditya Power Projects and directed the Designated Committee to reconsider the declaration and issue the discharge certificate after taking into account the Court's...

Excise Evasion Prosecution Cannot Rest Solely On Departmental Proceedings: Himachal Pradesh High Court

The Himachal Pradesh High Court on 7 July held that criminal prosecution for alleged evasion of central excise duty cannot continue merely on the basis of departmental proceedings, show cause notices or penalty orders, unless independent evidence establishes the alleged evasion. Justice Rakesh Kainthla dismissed the revision petition filed by the Excise Department and upheld the trial court's order discharging Seamx Industries and its directors from the criminal case alleging evasion of central...

Liquor Contractors Cannot Be Penalised For Supply Failure Due To Portal Glitches: Madhya Pradesh HC

The Madhya Pradesh High Court on 8 July held that liquor contractors cannot be penalised for the Excise Department's failure to supply liquor due to technical glitches in its online portal, observing that the State cannot take advantage of its own lapse to deny relief to licensees. Justice Sandeep N. Bhatt partly allowed a batch of writ petitions filed by several liquor contractors and directed the authorities to grant relief sought by them, while declining the remaining reliefs considering the...

Redemption Fine Under Central Excise Law Does Not Bar Sabka Vishwas Scheme Relief: Rajasthan High Court

The Rajasthan High Court has held that taxpayers whose goods were confiscated under the Central Excise law and who were directed to pay a redemption fine in lieu of confiscation are not excluded from the Sabka Vishwas (Legacy Dispute Resolution) Scheme, 2019.It ruled that they cannot be treated as ineligible to file declarations under the Scheme merely because they were liable to pay a redemption fine.A division bench of Justice Arun Monga and Justice Maneesh Sharma passed the ruling while...

Karnataka High Court Holds CESTAT Must Decide Limitation Plea Before Remanding Excise Matter

The Karnataka High Court on 2 July held that the Customs, Excise and Service Tax Appellate Tribunal (CESTAT) must decide a specifically pleaded limitation objection before remanding an excise dispute for adjudication on merits, as accepting the limitation plea could make further proceedings unnecessary. A Division Bench of Justices S.G. Pandit and Rajesh Rai K. disposed of the appeal filed by Lotus Printers Private Limited and directed CESTAT to decide the limitation issue while keeping its...

State Cannot Recover Unintended Benefit From Contractor After Accepting Lump Sum Contract: Telangana HC

The Telangana High Court on 9 July held that the State cannot withhold a contractor's security deposit by raising a claim of “unintended benefit” from Central Excise Duty exemption after accepting a lump-sum contract value without accounting for the exemption at the tender stage. A Division Bench of Justices Moushumi Bhattacharya and Gadi Praveen Kumar dismissed the State's appeal and partly allowed the appeal filed by Gammon Engineers and Contractors Pvt. Ltd. by setting aside the liberty...

Liquor Licensee Can't Avoid Licence Fee By Citing Business Losses, Natural Calamities: Himachal Pradesh HC

The Himachal Pradesh High Court has held that a liquor licence holder cannot back out of its obligation to pay the licence fee after voluntarily participating in an auction and accepting the licence terms, merely because the business later became commercially unviable. The court ruled that business losses, natural calamities or lower liquor prices in a neighbouring State do not dilute the contractual obligations arising from the licence A Division Bench of Justices Vivek Singh Thakur and...

Gujarat HC Holds PLA Payment Cannot Result In Double Recovery, Directs ₹3.74 Cr. Credit Restoration

The Gujarat High Court on 24 June held that the Central Excise Department cannot require a taxpayer to claim a cash refund after the taxpayer has already deposited the disputed duty amount through the Personal Ledger Account (PLA), as the corresponding CENVAT credit must be restored to prevent double recovery. A Division Bench of Justices A.S. Supehia and Vaibhavi D. Nanavati allowed the writ petition filed by Inductotherm India Pvt. Ltd. and directed the Department to re-credit Rs. 3,74,33,462...

Gujarat High Court Restricts Excise Rebate In Coke Exports, Rejects Moisture Loss Claim

The Gujarat High Court on 19 June held that Rule 18 of the Central Excise Rules, 2002 allows rebate only on the quantity of goods actually exported and not on the higher quantity cleared from the factory on payment of excise duty. A Division Bench of Justices A.S. Supehia and Vaibhavi D. Nanavati dismissed a batch of petitions filed by Mahashakti Coke, which challenged the denial of rebate on the differential quantity of metallurgical coke. The Court held: “The expression 'duty paid on such...