CESTAT New Delhi Holds Goods Transport by Road Without Consignment Note Not Taxable GTA Service

The New Delhi Bench of the Customs, Excise & Service Tax Appellate Tribunal (CESTAT), on 5 June set aside a service tax demand against Best Road Carriers after holding that mere transportation of goods by road, without issuing a consignment note or providing ancillary services, does not amount to a taxable Goods Transport Agency (GTA) service. Judicial Member Dr. Rachna Gupta and Technical Member Hemambika R. Priya held: “Since under GTA it is only such of these services which are in...

CESTAT Chennai Holds Remuneration Paid To Thriveni Earth Movers Directors Not Service Taxable

The Chennai Bench of the Customs, Excise and Service Tax Appellate Tribunal (CESTAT) has recently set aside service tax demands raised on remuneration paid by Thriveni Earth Movers Pvt. Ltd. to its whole-time directors. The tribunal held that such remuneration could not be subjected to service tax because the directors were working in an employer-employee relationship with the company. A coram of Judicial Member Ajayan T.V. and Technical Member M. Ajit Kumar allowed the company's appeals...

CESTAT Chennai Sets Aside ₹37.74 Lakh Service Tax Demand Against Apeejay Surendra Park Hotels

The Customs, Excise and Service Tax Appellate Tribunal (CESTAT), Chennai, has set aside a service tax demand of ₹37.74 lakh raised against Apeejay Surendra Park Hotels Ltd. It held that the hotel chain was entitled to avail CENVAT credit on specified common input services while also claiming the benefit of abatement under the applicable service tax notification. A Division Bench of Judicial Member Ajayan T.V. and Technical Member M. Ajit Kumar allowed an appeal filed by the company. The...

Tea Estate Lease For Plantation Activities Cannot Be Split Into Multiple Taxable Services: CESTAT Chennai

The Customs, Excise and Service Tax Appellate Tribunal (CESTAT), Chennai, has held that a tea estate lease arrangement undertaken for plantation activities could not be artificially split and taxed under different service categories. The tribunal found that the arrangement constituted a composite agricultural transaction. A Division Bench of Judicial Member Ajayan T.V. and Technical Member Vasa Seshagiri Rao allowed two appeals filed by NEPC Agro Foods Limited. The Bench set aside...

Procedural Defects In Invoices Cannot Defeat SAD Refund Entitlement: CESTAT Chennai

The Customs, Excise and Service Tax Appellate Tribunal (CESTAT), Chennai, has allowed an appeal filed by Cape Electric Corporation and set aside orders rejecting Special Additional Duty (SAD) refund claims of ₹18.82 lakh. The claims arose from imported goods that were subsequently sold in the domestic market on payment of VAT. The Division Bench of Judicial Member Ajayan T.V. and Technical Member Vasa Seshagiri Rao held that the department could not deny the refund claims on the basis of...

CESTAT Delhi Sets Aside Redemption Fine In Ketamine Export Case As Goods Not Available For Confiscation

The Customs, Excise & Service Tax Appellate Tribunal (CESTAT), New Delhi, has set aside a redemption fine imposed in connection with the export of ketamine to China after holding that the goods had already been exported and were no longer available for confiscation. Technical Member Rajeev Tandon partly allowed the appeal. He, however, upheld the appellant's liability for his role in the export operation and reduced the penalty imposed on him to ₹5 lakh. The Tribunal held, “The fact...

IMAX's Five-Day Site Visit, 17-Day Installation Period Do Not Create Permanent Establishment In India: ITAT Delhi

The Delhi Bench of the Income Tax Appellate Tribunal (ITAT) has recently held that IMAX Corporation, Canada, did not have either a fixed place Permanent Establishment (PE) or an installation/supervisory PE in India. The tribunal held that a five-day site inspection visit and subsequent installation activities lasting only 17 days did not satisfy the conditions prescribed under the India-Canada Double Taxation Avoidance Agreement (DTAA). Since no PE existed in India, the Tribunal held that no...

Allahabad High Court Orders Release Of GST Taxpayer Over Arrest Papers Lacking CBIC-DIN

The Allahabad High Court has recently directed the release of a GST taxpayer after holding that his arrest and detention were illegal because the grounds of arrest did not bear a CBIC-DIN and the arrest memo failed to disclose the place of arrest. Petitioner Ashish Tyagi was arrested in connection with proceedings under Section 132(1)(a), 132(1)(f) and 132(1)(i) of the CGST Act, 2017 in a case initiated by the Directorate General of GST Intelligence (DGGI), Ghaziabad. The case pertained to...

Jet Lite's Defence In FBT Proceedings Cannot Be Treated As Furnishing Inaccurate Particulars: ITAT Delhi

The Delhi Bench of the Income Tax Appellate Tribunal (ITAT) has upheld the deletion of penalties exceeding ₹7.6 crore imposed on Jet Lite (India) Ltd. in a fringe benefit tax (FBT) disputeThe tribunal held that the assessee had sought to justify its case against the fringe benefit assessment and that this could not be treated as furnishing inaccurate particulars. A bench of Judicial Member Satbeer Singh Godara and Accountant Member Manish Agarwal dismissed the Revenue's appeals against orders...

Wrong Rubber Stamp Below Signature Does Not Invalidate Show Cause Notice: Allahabad High Court

The Allahabad High Court has recently held that the use of an incorrect rubber stamp beneath the signature on a show-cause notice does not create a jurisdictional defect. The Court said this would not affect jurisdiction where the authority issuing the notice is otherwise vested with powers under the relevant Act and Rules. Rejecting a jurisdictional challenge raised by Dev Trading Company to a show-cause notice issued under the Health Security se National Security Cess Rules, 2026, a Division...

Allahabad High Court Says GSTN Portal Should Allow Online Filing Of Additional Replies To Show Cause Notices

The Allahabad High Court has recently observed that the GSTN portal should be refined to allow the filing of additional or supplementary replies online. It also directed that a copy of its order be communicated to GSTN for consideration and compliance. The court noted that notices, replies, and orders are otherwise exchanged through the portal. While dealing with the rejection of Tejashva Tractors And Motors' refund application, the bench of Justice Saumitra Dayal Singh and Justice Vivek Saran...

CESTAT New Delhi Sets Aside ₹1.44 Crore Customs Duty Demand Against Bharti Gems, PP Jewellers

On 3 June, the New Delhi Bench of the Customs, Excise and Service Tax Appellate Tribunal (CESTAT) set aside a customs duty demand of Rs.1.44 crore, along with confiscation of goods and penalties imposed on P P Jewellers & Diamonds Pvt. Ltd., Bharti Gems, Its My Name Pvt. Ltd. and related parties, holding that the Customs Department failed to prove diversion of duty-free imported gold and silver or any fraudulent export activity. President Justice Dilip Gupta and Technical Member P.V. Subba...