Re-Determining Value Of CDs Imported By HP India Is Invalid Without Rejection Of Transaction Value Under Customs Valuation Rules: CESTAT

The New Delhi Bench of Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has stated that re-determination value of CDs imported by HP India invalid without rejection of transaction value under Rule 12 Customs Valuation Rules 2007. The bench stated that unless the proper officer rejects the transaction value under Rule 12, the valuation has to be based on transaction value as per Rule 3 with some additions, if necessary, as per Rule 10. Rule 12 of Customs Valuation Rules...

Royalty Paid For Exclusive Trademark License Is Not Taxable As A Service: CESTAT

The New Delhi Bench of Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has stated that royalty paid for exclusive trademark license is not taxable as service. The Bench of Dr. Rachna Gupta (Judicial Member) and P.V. Subba Rao (Technical Member) has observed that “the assessee was restrained to use the said trademark during the said period in any territory of the world and as such the transaction was a transaction of 'Deemed Sale' inviting no service tax liability. Hence, ...

Assessee Entitled To Refund Of Unutilized ITC Claimed On Closure Of Business: Sikkim High Court

The Sikkim High Court stated that the assessee is entitled to the refund of unutilized ITC claimed on the closure of business. The Bench of Justice Meenakshi Madan Rai was addressing the issue of whether the refund of ITC under Section 49(6) of the CGST Act is only limited to companies carved out under Section 54(3) of the CGST Act or does every registered company have a right to refund of ITC in case of discontinuance of business. In this case, the assessees/petitioners were...

Kerala High Court Directs Customs To Dispose Of Seized Buffalo Meat Consignments Within One Month Due To Perishability

The Kerala High Court has directed the customs department to dispose of seized buffalo meat consignments within one month due to perishability. The Bench of Justice Ziyad Rahman A.A was addressing the issue pertaining to the seizure of the consignments of buffalo meat, which were proposed to be exported to a foreign country. On examination, it was found that there was a misdeclaration by the consignor, and it contained certain items which were prohibited from being exported. ...

Tax Weekly Round-Up: June 02 - June 08, 2025

HIGH COURTSAllahabad HCAllahabad High Court Rejects Patanjali's Plea Against ₹273.5 Crore GST PenaltyCase Title: M/s Patanjali Ayurved limited v. Union of India and OthersCase no.: WRIT-TAX NO. 1603 OF 2024The Allahabad High Court has directed continuation of proceedings under Section 122 of the Central Goods and Services Tax Act, 2017 against M/s Patanjali Ayurved limited's 3 plants even though proceedings under Section 74 of the Act have been dropped against them.The bench of Justice Shekhar...

Bank Charges Paid To Foreign Banks Are Not Liable To Service Tax Under Reverse Charge Mechanism: CESTAT

The New Delhi Bench of Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has stated that bank charges paid to foreign banks are not liable to service tax under the reverse charge mechanism. The Bench of Dr. Rachna Gupta (Judicial Member) and Hemambika R. Priya (Technical Member) has stated that “there is direct nexus of the buyer with the Foreign Bank, and it is held that when the provider of service i.e. 'the Foreign Bank' and recipient of service i.e. 'the Buyer' are both...

Knowledge & Intention Must Be Present Before Imposing Penalty U/S 114AA Of Customs Act For Obtaining Undue Export Advantage: CESTAT

The New Delhi Bench of Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has stated that knowledge and intention must be there to impose penalty under Section 114AA of Customs Act. The Bench of Justice Dilip Gupta (President) and P.V. Subba Rao (Technical Member) has observed that “Knowledge and intention is sine qua non for imposing penalty under section 114AA of the Customs Act. The department has not been able to establish knowledge on part of the assessee or intention on...

Tax Monthly Digest: May 2025

SUPREME COURTGST | Bail Should Be Normally Granted For Offences Under S 132 CGST Act Unless Extraordinary Circumstances Exists : Supreme CourtCase : Vineet Jain vs Union of IndiaCase no.: CRIMINAL APPEAL NO.2269 OF 2025The Supreme Court recently expressed surprise at the High Court and the Magistrate Court denying bail to a person accused of committing offences under Section 132 of the Central Goods and Services Tax Act.The Court observed that in cases like this, bail should normally be granted....

Service Tax Not Leviable On Hostel Fees Received For Non-Residential Courses In Coaching Institute: CESTAT

The Kolkata Bench of Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has stated that service tax is not leviable on hostel fees received for non-residential courses in coaching institute. The Bench of Ashok Jindal (Judicial Member) and K. Anpazhakan (Technical Member) has observed that “the stand-alone hostel charges collected for non-residential courses, have no connection with Commercial Training and Coaching services as defined under section 65(105)(zzc) of the Finance...

No Provision To Reject Appeal On Non-Appearance Of Assessee, Must Be Decided By Mandate U/S 250(6) Of Income Tax Act: Kerala High Court

The Kerala High Court stated that there is no provision of rejecting the appeal merely on non-appearance of assessee and the appellate authority must decide an appeal by strictly following the mandate contemplated under Section 250(6) of the Income Tax Act, 1961. The Bench of Justice Ziyad Rahman A.A. observed that “evidently, going by Subsection 6 of Section 250, no other meaning can be assigned to the words “points for determination” as it obviously leads to the question that arises ...

Vessel Engaged Under SEAIOCM Agreement Qualifies As 'Foreign Going Vessel' For Exemption U/S 87 Of Customs Act: Kerala High Court

The Kerala High Court stated that vessel engaged under SEAIOCM agreement qualified as 'foreign going vessel' for exemption under section 87 Of Customs Act. The Bench consists of Justices A.K. Jayasankaran Nambiar and P.M. Manoj was addressing the issue of whether in the backdrop of the terms of engagement of the vessel under the SEAIOCM Agreement, the vessel can be categorized as a foreign going vessel for the purposes of claiming exemption under Section 87 of the Customs Act. In ...

Import Of Inverter Component Without Photo-Voltaic Cell Not Eligible For Customs Duty Exemption: Kerala High Court

The Kerala High Court stated that import of inverter component without photo-voltaic cell not eligible for customs duty exemption. “Inasmuch as the import was only of the inverter component, without the photo-voltaic cell - a component that was essential for harnessing solar energy, which could then be routed through the inverter system for the supply of electrical energy to the grid, the assessee cannot be seen as eligible for the benefit of the exemption notification……” stated the...