2019-TIOL-2055-CESTAT-AHM

Parekhplast India Pvt Ltd Vs CCE & ST

CX - The assessee is engaged in manufacture of parts of petrol pump and supplying the same to the pump of Reliance Industries Ltd. - Due to delay in lifting the goods by buyer, they have amended the purchase order according to which the buyer is under obligation to pay an amount of Rs. 3,50,000/- per month towards storage charges, if goods is not lifted within stipulated time period - There is one more demand on the cost of air lifting of component from Mitsubishi Japan to their premise due to urgency which was paid by assessee during investigation - The case of department is that the storage charges is includible in assessable value, accordingly, the demand was confirmed - Duty on air lift charges, assessee is not contesting the demand, hence the same is upheld - As regard the storage charges, on merit, the issue is covered by Tribunal Larger Bench Judgment in the case of Victory Electricals Ltd. - 2013-TIOL-1794-CESTAT-MAD-LB - However, on the issue of limitation, since the issue involved is interpretation of Section 4, therefore, there were various contrary decisions and for this reason also the matter was referred to Larger bench and finally in 2013, the Larger Bench has decided the issue and in the present case, the period involved is November 2004 to December 2005 and SCN was issued in June 2009 - Suppression of fact on the part of assessee cannot be alleged - Hence the demand of duty of storage charges is hit by limitation, hence the same is set aside: CESTAT

- Appeal partly allowed : AHMEDABAD CESTAT

2019-TIOL-2054-CESTAT-HYD

Pharmasia Ltd Vs CC, CE & ST

CX - Assessee is manufacturer of Smyle Thanda Tel which, if applied on head, gives relief free from headache, fatigue and stress - The label specifically refers to the product as a Cool hair oil and details its contributions for relieving headache, fatigue, stress and providing sound sleep - It does not mention on packing of product that the same is to be sold under prescription of a physician - The assessee classified it as pharmaceutical preparation on the ground that they have a license from Department of Ayush, for manufacture and sale of this product - The simple issue to be decided that the goods in question should be classified as hair oil or Ayurvedic preparation - There is no doubt that the ingredients of product in question are mentioned in authentic ayurvedic texts - As far as the users are concerned, there is nothing on the packet to show that the product is meant for daily use - It shows that it gives relief from headaches fatigue and stress - In an identical case, in case of Nuzen Herbal Pvt. Ltd - 2018-TIOL-1696-CESTAT-HYD , it is held that the product should be classified as ayurvedic medicine - No reason found to take a different view in this case - The product in question is rightly classifiable as ayurvedic medicine and therefore, demand is not sustainable - Consequently, the interest and penalties also do not survive: CESTAT

- Appeal allowed : HYDERABAD CESTAT

2019-TIOL-2053-CESTAT-MAD

Ponni Sugars (Erode) Ltd Vs CGST & CE

CX - The assessee is engaged in manufacture of sugar and molasses - They are availing facility of Cenvat credit on inputs, input services and capital goods - During verification of accounts, it was noticed that they had availed ineligible Cenvat credit on input services and capital goods - SCN was issued proposing to disallow Cenvat credit along with interest and also proposing to impose penalties - The assessee have furnished the justification for availing credit on various input services - The service tax paid on Repair and Maintenance Charges of air conditioners installed in the factory premises has been disallowed alleging that the air conditioners used in office are not "capital goods" - Indeed, the said services do not restrict itself to repair and maintenance of capital goods alone - For this reason, the disallowance of credit alleging that the air conditioners installed in office are not capital goods is incorrect - The credit availed on such 'input services' is eligible for credit - When the premises is taken on rent, the assessee have to pay maintenance charges, for the common facility also - Therefore, the disallowance of credit on such maintenance charges paid for common facility is incorrect - The same is held to be eligible - The assessee have availed services of M/s. Esvin Advanced Technologies Ltd., for improving the quality of molasses by desalting - These services are intended to improve the quality of their finished product and therefore, the credit on such services is eligible - The Membership Fees has been paid by assessee to take membership specifically in M/s. Indian Sugar Mills Association and M/s. South Indian Sugar Mills Association - Such association helps its members to understand the trends in the market and allows a common platform to raise their grievances before the concerned authorities - The credit availed on such services is eligible - The assessee have availed credit on Roofing sheets, GI Pipes, Welding Electrodes and RM White Metal under the category of "capital goods" - The department cannot disagree that these items fall within the definition of 'inputs' - After 01.04.2011, the definition of 'inputs' is so wide to include almost all goods that are brought into the factory - The decision in the case of M/s. Kisan Sahakari Chini Mills Ltd. - 2017-TIOL-1871-CESTAT-ALL has categorically held that even though the credit is availed on Asbestos Sheets and Welding Electrodes under the category of "capital goods", they same would be eligible, if they fall under 'inputs' - The disallowance of credit on various input services and items which are availed under category of "capital goods' is unjustified - The impugned order is set aside: CESTAT

- Appeal allowed : CHENNAI CESTAT