TODAY'S CASE (INDIRECT TAX)

March 22, 2025

++ Cus - Valuation Rules provide that transaction value can be rejected if there are reasonable doubts about its truth or accuracy; as no identical goods were available, Rule 5 was correctly applied to determine value based on similar goods - Re-assessment of value upheld: CESTAT

++ Cus - Just because an auction is open to global bidders does not change the fact that sales occurred in Ireland's domestic market, since the customs valuation relied solely on these auction prices, entire revaluation process is invalid : CESTAT

++ CX - Since the duty and interest had already been paid before issuance of show cause notice, no penalty is warranted : CESTAT

++ ST - As is trite law, reimbursable expenses incurred by service provider while providing service, are not to be included in taxable value; extended limitation not to be invoked where issue involves legal interpretation & not based on fraud or wilful mis-statement: CESTAT

March 21, 2025

++ GST - Proviso to Rule 90(3) inserted by 15/2021-CT was not in the statute when refund claims were originally filed or later re-presented - Therefore, it cannot be given retrospective effect: HC

++ GST - Refund of ITC on account of export of services - No tangible progress made by department inspite of petitioner submitting reply to SCN in September 2021 - Authorities to look into the matter in the right earnest: HC

++ GST - Petitioner making payment but service provider has not deposited tax to the government - Complaint filed but not acted upon - HC directs respondent department to consider representation and pass speaking order: HC

++ GST - Court cannot use its discretion to grant any special opportunity to petitioner, especially when there were serious laches on his part in not responding to the notices for hearing: HC

++ ST - As is trite law, claims not part of Resolution Plan are extinguished upon plan's approval; no further proceedings can continue therefor: CESTAT

++ ST - Reimbursable expenses and logistics income are not taxable under existing legal precedents: CESTAT

++ CX - Cenvat credit allowed on factory construction, outdoor catering, insurance and air travel services however, interest must be paid on amount reversed by appellant for catering services: CESTAT

++ Cus - Delay in document submission, where there is no revenue loss, does not warrant a substantial penalty: CESTAT

++ Cus - The prolonged adjudication delay of 17 years and failure to prove smuggled nature of seized gold rendered the proceedings unsustainable: CESTAT

March 20, 2025

++ Cus - DEPB licences - Cancellation order is predicated on adverse conclusions drawn against the petitioner, without even adjudicating the SCN issued as far back as 2005 - Petition allowed: HC

++ GST - Taxable supply shown twice - Without providing any opportunity of hearing, contrary to the provisions of s.75(4), respondent has passed the impugned OIO - Orders quashed and matter remanded: HC

++ CX - Adjudicating authority, in utter disregard to the directions of CESTAT ventured to adjudicate SCN - Token cost of Rs.1000/- imposed - Order set aside and matter remanded for adjudication by another officer: HC

++ ST - Bedroll cleaning - Contention that what has not been contemplated when parties negotiated the contract, cannot be loaded to the shoulders of Indian Railways, merely because there is change of law, does not merit acceptance: HC

++ Cus - The broker's responsibilities are limited to document verification and procedural compliance, not continuous surveillance of clients, allegations of regulatory violations are unsubstantiated and both the license revocation and penalty are overturned: CESTAT

++ Cus - Denial of country of origin benefit under South Asian Free Trade Area (SAFTA) agreement is unsustainable due to absence of speaking order under section 17(5) of Customs Act, 1962: CESTAT

++ Cus - The appeals were filed within condonable period and should not have been dismissed as time-barred, matter remanded directing a fresh adjudication on merits: CESTAT

++ ST - Activity of operating amusement park is taxable post 01.06.2015; is not exempt from tax where it is operated by a private entity & not by a local authority - nevertheless, tax demand thereon invalid as hit by limitation: CESTAT

++ CX - Demand for recovery of CENVAT credit during defaulted period is not sustainable, as Rule 8(3A) of Central Excise Rules, 2002 had been declared ultra vires by multiple High Courts: CESTAT

++ CX - Although assessee's refund claims were valid, they were not entitled to interest as same were sanctioned within three months of application and reversed credit is deemed an appropriation, not a deposit under protest: CESTAT

March 19, 2025

++ Cus - Detention of seized goods is invalid where no SCN was issued to assessee within 6-month limitation; no personal hearing granted either: HC

++ GST - Limitation of 60 days period prescribed u/s 62(2) appears to be directory in nature - Right to file returns cannot be taken away: HC

++ GST - Fake ITC availment - Court considers the nature and gravity of the accusation and grants bail: HC

++ GST - Criminal prosecution - Second FIR can be valid if it concerns a different offence arising from the same facts: HC

++ GST - Rejecting input tax credit claim due to a minor error, causes substantial harm to assessee: HC

++ Cus - Appellant's refund claim denied for excess CVD paid on imported mobile phones, holding that claim is time-barred, lacked reassessment and failed to prove that duty burden is not passed on to buyers: CESTAT

++ Cus - Royalty payments for manufacturing know-how are not related to imported goods and should not be added to assessable value: CESTAT

++ Cus - SCN issued beyond the limitation period prescribed therefor, is not sustainable: CESTAT

++ CX - SSI exemption sought to be denied on grounds that goods meant for export were procured from local market - allegation not substantiated with evidence; assessee not required to follow Excise procedure - demands & penalties quashed: CESTAT

++ CX - L G Electronics India Pvt Ltd. is entitled to avail CENVAT credit on service tax paid for call center services as they are integral to sales promotion and post-manufacturing activities CESTAT

++ ST - Amounts, being payments for premature termination of contract, are not considered service-related; thus not taxable under Section 66E of Finance Act, 1994: CESTAT

March 18, 2025

++ GST - Failure to avail the opportunity granted is different from failure to grant an opportunity of hearing - Fault lies with petitioner and he cannot blame the department - Petition dismissed: HC

++ GST - Orders came to be passed behind the back of the petitioner - No steps taken to serve notices through physical mode but made available only under tab 'View Additional notices' - Matter remanded subject to petitioner depositing 10% of disputed tax: HC

++ GST - When two opinions are possible, the one which is advantageous to the assessee should be taken - Matter remitted: HC

++ GST - Not only has the competent authority failed to notice or engage with the reply which was submitted but has proceeded on the incorrect premise that no response had been submitted at all - Order set aside: HC

++ Cus - Assessees were held entitled to seek redemption of gold seized from them on their appearance before requisite authority, after complying with prescribed conditions: HC

++ KVAT - addition of purchase turnover of old gold to estimated sales turnover erroneous as it results in duplication of turnover, where purchases were of old ornaments melted for creation of new ones: HC

++ ST - Service tax demand confirmed against appellant citing forged agreements, misdeclaration of taxable services and deliberate tax evasion: CESTAT

++ ST - Rectification of O-i-O is invalidated where AO seeks to revisit & change findings, which goes beyond scope of Sec 74 of Finance Act 1994, which only permits correction of mistakes apparent & clerical errors: CESTAT

++ CX - Genuine refund claims should not be denied due to procedural technicalities when clear evidence of double duty payment is provided: CESTAT

++ CX - The amount deposited during an investigation is not a pre-deposit under Section 35FF but a revenue deposit making it eligible for interest at 12% per annum: CESTAT

++ Cus - Aircraft engine stands should be classified under CTH 8609 00 00 as 'containers for transport' rather than under CTH 8716 39 00 as 'trailers,' thereby setting aside the demand for differential customs duty: CESTAT

++ Cus - Royalty & technical fees need not be included in transaction value of imported goods, as they are not a condition of sale for imported items: CESTAT

++ Cus - Dabur India Ltd's refund claim is upheld for excess CVD paid on imports holding that company had borne the duty burden itself and did not pass it on to consumers, thereby overcoming the bar of unjust enrichment: CESTAT

March 17, 2025

++ GST - It is mandatory on part of seller to download e-way bill once goods are put in transit; Subsequent downloading of e-way bill would not absolve liability: HC

++ GST - Intention to evade tax is established by fact that goods in transit were not accompanied by e-way bill and goods taxable at 18% were taxed only at 5%: HC

++ VAT - Deemed dealer provision under MVAT Act becomes operational when categories thereunder sell any goods, whether by auction or otherwise: HC

++ GST - Non-mention of DIN number in the order which was uploaded on the portal requires the impugned order to be set aside: HC

++ Cus - Penalty imposed u/s 112(b) is valid where the appellant gave false statements regarding VAT payment, with deliberate intent to evade payment of tax: CESTAT

++ Cus - Customs duty rate must be determined based on entry inward date at the final port of unloading, not when the vessel first entered Indian territorial waters: CESTAT

++ CX - Excess electricity usage per se cannot be used as conclusive evidence for clandestine manufacturing & clearance; allegations unsustainable where based on assumptions & presumptions without any corroborative evidence: CESTAT

++ CX - Service tax paid on foreclosure charges for pre-closure of loans is not eligible for CENVAT credit, as it does not qualify as an "input service" under Rule 2(l) of CENVAT Credit Rules, 2004: CESTAT

++ ST - Refund of unutilized CENVAT credit cannot be granted when appellant failed to transition the credit under GST via TRAN-1 and had not exported services: CESTAT

++ ST - Service Tax demand is unsustainable where based entirely on TDS details & 26AS statement taken from I-T Department & without any probe into nature of service, its recipients or any consideration: CESTAT

March 15, 2025

++ ST - Procedural delays and document-related technicalities could not be used to deny rightful tax refunds to exporters: CESTAT

++ ST - Adjudicating authority had failed to conduct proper classification of exported services and had not examined the nexus between input and output services, matter remanded for fresh adjudication: CESTAT

++ Cus - The relationship between parties alone is not sufficient to reject declared value, especially since there is no evidence of undervaluation or loss of revenue: CESTAT

++ Cus - The imported Wireless Microphone Systems are correctly classified under CTH 85255050 and entitled to a customs duty exemption, thereby setting aside the department's denial of refund: CESTAT

++ CX - The notional cost of specifications provided free of cost by Maruti Suzuki India Ltd is not includable in assessable value of final products: CESTAT

++ CX - The notional cost of drawings and designs supplied free of cost by Maruti Suzuki cannot be included in assessable value for excise duty purposes: CESTAT

March 13, 2025

++ Cus - SCN u/s 28(4) post the issuance of SCN u/s 28(1) could not be termed as 'Supplementary notice': HC

++ Cus - Fact that same officer, within a span of just 6 weeks, has chosen to issue two SCNs u/s.28(1) & 28(4), would taint impugned SCN with the vice of a 'change of opinion' and for that reason render it unsustainable: HC

++ ST - Approximation has no place in demanding and confirming service tax: CESTAT

++ ST - Call Free Allowance (CFA) - Service tax cannot be levied when there is no consideration received: CESTAT

++ Cus - Quasi-judicial orders should be passed without fear or favour and without obtaining NOCs from any investigating agency: CESTAT

++ Cus - DRI is under the wrong impression that it has the power to dictate how adjudication orders are passed by quasi-judicial officers: CESTAT

++ Cus - Only power under the Customs Act is to determine the assessable value of the goods and not to change the FOB value: CESTAT

++ CX - Pre-printed thermal ATM rolls should be classified under Chapter 49 as products of printing industry, thereby setting aside the excise duty demands imposed by department: CESTAT

++ CX - Assessee is entitled to interest at 12% per annum on the refund of a pre-deposit amount, as the denial of interest by lower authorities is contrary to legal precedents: CESTAT

++ Cus - CHA acted on basis of papers provided by importer; no evidence suggests prior knowledge of labeling issue - containers were sealed at time of examination, making it impossible for CHA to verify RSP labels - Penalty imposed on CHA u/s 112(a) not tenable: CESTAT

++ Cus - Since customs duty was initially paid using officially accepted duty scrips, and on raising objections, firm voluntarily paid duty in cash with interest, penalties or confiscation of imported apples cannot sustain: CESTAT

March 12, 2025

++ GST - A new entry was inserted to make Carbonated Beverages of Fruit Drink or Carbonated Beverages with Fruit Juice to be taxable @ 14% GST and @12% Compensation Cess - Therefore, these notifications can only have effect from the date it is made effective and prospectively: HC

++ GST - In the absence of reasons having been assigned in SCN in support of a proposed retrospective cancellation as well as a failure to place petitioner on prior notice of such an intent clearly invalidates impugned action: HC

++ GST - Appeal should not be dismissed merely due to a procedural delay, especially when the petitioner has made an effort to comply with statutory requirements, including the pre-deposit of 10%: HC

++ CX - No disputed question of law is involved - Contention that no personal hearing was granted is contrary to the record - Petitioner should avail alternative remedy: HC

++ Misc - Grave prejudice caused - In absence of a notice of any kind and a reasonable opportunity of hearing, the order passed becomes wholly vitiated: HC

++ Cus - It is for an aggrieved person to choose from available remedies & to bear consequence - including that of lack of jurisdiction; it is for other side to advise caution on that in score: CESTAT

++ Cus - Refunds involve re-assessment of duty, which could disrupt established appellate system; drawback, which compensates exporters for duties paid, does not - Ergo, drawbacks remain under Central Govt revisionary jurisdiction while refund claims are not covered thereunder: CESTAT

++ Cus - Legislative intent is to simplify & structure appellate & revision process, based on nature & complexity of issues at hand, ensuring that some matters remain outside purview of formal tribunals & focus on simpler, more direct forms of resolution: CESTAT

++ Cus - State Exchequer does not survive on confiscatory proceeds; Gold and articles made of gold are goods & not vested in the government; Illicit import of articles of gold must be deterred but not by alienation of possession from its owner: CESTAT

++ Cus - Cause for restricting import of semi wrought gold is monetarily measurable & that would have sufficed as consequence of wrongful import - No justification for absolute confiscation thereof, either from being restricted or despite being restricted: CESTAT

++ Cus - Gold jewelry was not subject to prohibition under FTP, as no evidence confirmed that it was prohibited or restricted : CESTAT

++ Cus - Confiscation of Gold items under sections 77, 111(l), and 111(m) of Customs Act is legally sound where conditions for duty-free baggage are not complied with: CESTAT

++ Cus - Gun-shaped cigarette lighters are not prohibited imports and their confiscation by customs authorities is based on an incorrect application of law which is not sustainable: CESTAT

++ CX - Even if exempted goods are exported, assessee is eligible to avail CENVAT credit on inputs under the exception clauses of Rule 6(1) as contained in Rule 6(6) of CCR 2004: CESTAT

++ ST - As is trite law, construction activities found to be composite contracts, cannot be taxed under Commercial or Industrial Construction Service or Construction of Complex Service : CESTAT

++ ST - Excess service tax paid could be adjusted against liabilities over multiple months rather than being restricted to immediate succeeding month: CESTAT

++ CX - Assessee is entitled to refund of excise duty paid on bulk drugs used to manufacture life-saving drugs, as the exemption under Notfn 4/2006-CE extended to their hydrochloride forms: CESTAT

++ CX - Assessee & its distributor found to be related persons clearly falling u/s 4(3)(b) of CEA 1944 due to mutual interest; goods sold to distributor be valued under Rule 9 - demand for differential duty upheld: CESTAT

March 11, 2025

++ GST - Challenge to 56/2023-CT - In similar matters, Court has directed respondents not to take coercive action - Interim stay granted from execution and implementation of garnishee notice: HC

++ GST - Denial of ITC - sub-section (5) inserted in s.16 w.e.f 1 st July 2017 - Petitioner cannot be denied benefit of amendment - Bench permits petitioner to file appropriate rectification application as mandated by Circular dt. 15 October 2024: HC

++ Cus - Entertainment of the previous writ petition by the Court would neither be a precedent nor enure to the benefit of the petitioner: HC

++ Cus - Jurisdiction under Art. 226 - It is settled that the same is discretionary and has to be necessarily tempered with the doctrine of forum conveniens: HC

++ Cus - Arrival at T-3 IGI airport - Indian employed in UAE, wearing 32 grams gold chain for attending marriage ceremony in Guruvayur - If the gold items seized are personal jewellery, the same would not be liable to be confiscated: HC

++ Cus - Small Form Factor Pluggable (SFP) modules correctly classifiable under 8517 7990, qualifying for applicable exemptions under Customs Notification No. 57/2017: HC

++ Cus - Department would be liable to pay Petitioner the market value of the detained gold if auction/sale proceeds is not refunded along with simple interest @6%: HC

++ Cus - Misuse of seal - When the employees against whom allegations of forgery were made have been exonerated and penalty imposed set aside, Bench finds no reason to sustain the findings of tribunal that penalise appellant: HC

++ GST - Suppression of turnover - Assessment order passed without considering assessee's request for adjournment, is invalid: HC

++ Cus - Penalty against customs broker upheld for failing to conduct due diligence on an overvalued and misdeclared import of old clothes: CESTAT

++ Cus - Lauric Acid is correctly classifiable under CTI 2915 90 90; CTI 2915 70 90 favored by importer actually pertains to Palmitic Acid and Stearic Acid, their salts and esters which are entirely different: CESTAT

++ CX - The burden is on appellant to prove compliance with Rule 6(2), and failure to provide conclusive proof justified the demand under Rule 6(3): CESTAT

++ ST - Department failed to correctly assess taxable service value and unjustly confirmed the demand based on Income Tax Form 26AS without considering applicable exemptions: CESTAT

++ CX - Services such as canteen and hospitality services are essential for employee welfare and contributed to efficient production, making them eligible for credit: CESTAT

++ ST - Transportation of RMC rightly classifiable under GTA service ; construction of drain classifiable under CICS rather than Site Formation & Clearance Service or Excavation, Earth Moving & Demolition Services - Demands unsustainable due to invalid classification of activities: CESTAT

March 10, 2025

++ GST - Sublato fundamento cadit opus - Foundation being removed, structure falls - Prima facie case exists in petitioner's favour - Final order stayed: HC

++ ST - There was no stay granted of the adjudication proceedings, therefore, there was no justification for the adjudicating authority to keep SCN pending - SCN more than 15 years old - Order now passed, set aside: HC

++ ST - Issue is of a factual nature - Since the impugned OIO is an appealable order, petitioner relegated to CESTAT - Since loss making company, pre-deposit ordered of One crore instead of mandatory 7.5%: HC

++ Service - Charge sheet - MOF has only allocated the work relating to all disciplinary matters to MOS - Neither is this sub-delegation, nor does MOS act as a delegatee of MOF - Office Order merely involved an exercise of internal allocation of work and was, therefore, perfectly legal: HC

++ Cus - Strong prima facie case in favour of applicant, and absence of submissions with regard to balance of convenience or irreparable injury, merits grant of stay: HC

++ VAT - Intelligence officer suspecting attempt for evasion of tax through gold ornaments unaccompanied by any documents prescribed u/s 46(3)(e) of Kerala VAT Act, calls for imposing of penalty: HC

++ GST - State is not entitled to unjustly enrich itself with amounts collected from citizens which are not sanctioned as "Tax" within meaning of Art 265 of Constitution: HC

++ ST - Demand for service tax on advances and liabilities is flawed, as it is based on an incorrect interpretation of law and applied to a period beyond the legal scope of service tax: CESTAT

++ ST - Tax authorities cannot retain excess payments made by assessees due to clerical errors and legitimate refunds must be granted without procedural roadblocks: CESTAT

++ ST - Financial records had already been audited by department in 2013 and no objections was raised at that time, reopening the case after several years based on same set of facts is deemed unjustified: CESTAT

++ Cus - Tax & penalty u/s 45 is sustained as goods were pilfered while in Container Corporation of India's custody, which was responsible for goods' safe custody - responsibility cannot be shifted on to CISF: CESTAT

++ Cus - Since the goods are initially cleared without objection by authorities and no appeal was filed against original assessments, reopening the valuation after several years based on unverified digital documents is unjustified: CESTAT

March 08, 2025

++ ST - Miscellaneous income - Demand raised on basis of assumptions & presumptions without concrete evidence, is invalid: CESTAT

++ ST - Cost-sharing among group companies does not constitute a taxable service; Service Tax demanded thereon is not sustainable - demand based on differential value between Profit & Loss Account & ST-3 returns also not tenable : CESTAT

++ CX - The excise duty deposited on coconut oil packed in containers under 200 ml was unjustified following the withdrawal of relevant circular: CESTAT

++ ST - No Service Tax could be levied on construction of residential complexes prior to 01.07.2010 even when the service is rendered either as service simpliciter or as a works contract . : CESTAT

++ ST - When assessee has suppressed facts, extended limitation can be invoked only when such suppression is shown to be wilful with intent to evade the payment of Service Tax: CESTAT

++ ST - Invoking extended limitation is unwarranted where the SCN is silent on why the assessee would have intent to evade payment of Service Tax: CESTAT

++ ST - Merely because correct Service Tax liability is not disclosed, it cannot be presumed that there is intent to evade payment of Service Tax: CESTAT

++ ST - That Assessee is working under a self-assessment scheme & that onus to pay proper service tax was on Assessee, is invalid reason for invoking extended limitation: CESTAT

March 07, 2025

++ Cus - Apex Court lifts detention order of habitual smuggler; says conditions imposed by jurisdictional court for grant of bail were sufficient to curb evil of further indulgence in identical activities: SC

++ Cus - Detenue was habitual offender of smuggling & disposal of foreign gold for illegal profiteering; However, detaining authority must consider conditions imposed by Magistrate while granting bail for very same offence: SC

++ Cus - Cancellation of bail can't be considered as alternative to detention order, and non-supply of application for cancellation of bail alone is not compelling to vitiate detention order: SC

++ GST - Circular 181/13/2022-GST dated 10.11.22 creates an artificial class amongst assessees based on date of filing of refund application - Para 2.2 is struck down since grossly discriminatory and violative of Art.14 and ultra vires s.54: HC

++ Cus - Waiving show cause notice & personal hearing through an undertaking does not satisfy requirements of Section 124, which require written notice, representation & personal hearing: HC

++ Cus - Baggage Rules 2016 do not apply in entirety to foreign tourists; only Proviso to Rule 3 is applicable: HC

++ Cus - Gold or silver items other than ornaments, as per Entry 5 in Annexure-I to Baggage Rules, would not apply to jewellery or ornaments like chains and kada; seizure of these items under provisions of Baggage Rules is not tenable: HC

++ Cus - Customs Deptt must distinguish between jewellery & personal jewellery when seizing items; Baggage Rules apply only to articles in baggage & do not extend to items carried on the person; officers must consider facts of each case & cannot detain goods in mechanical manner: HC

++ ST - Construction of a single residential unit cannot qualify as ‘residential complex'; not covered under Construction of complex service or WCS: CESTAT

++ ST - Construction of indoor stadium at Siri Fort complex for holding Commonwealth Games is a non-commercial project and construction is undertaken for national interest - not taxable under CICS or WCS: CESTAT

++ ST - Amount recovered towards penalty is not a consideration for any activity undertaken by appellant, hence there is no ‘service' - Tax demand set aside: CESTAT

++ Cus - Since Department failed to prove the gold as smuggled and the seizure lacked reasonable grounds, absolute confiscation of gold and penalties are set aside: CESTAT

++ ST - Activity of loading limestone in mining area, cannot be taxed as Cargo Handling Service: CESTAT

++ ST - Assessee entitled to interest on refund of tax paid under protest, from date of payment to date of disbursement, as such deposit was not made u/s 35F but is akin to a pre-deposit - Provisions of Sections 11B & 11BB inapplicable here; denial of interest not tenable: CESTAT

++ CX - Processes undertaken by assessee on raw materials received from principal amount to manufacture, thereby exempting the goods from service tax liability: CESTAT

++ CX - As per trite law, extended period of limitation need not be invoked when assessee discloses Cenvat credit availment in returns; credit rightly denied for periods for which ER-1 returns were not filed: CESTAT

++ CX - VAT remission under Gujarat's incentive scheme should not be included in assessable value of excisable goods: CESTAT

March 06, 2025

++ GST - Seizure can be made even on the ground of undervaluation, if undervaluation is deliberate for the purpose of avoiding payment of tax: HC

++ GST - When a provision of an Act (s.43A) never comes into operation, it cannot be treated as a source of power of a provision of a rule - Rule 36(4) is a valid piece of legislation: HC

++ GST - Time limit to avail ITC has been extended by amendment in s.16 by FA, 2024 - Coupled with notification 22/2024-CT, Petitioner is permitted to make appropriate rectification application under special procedure: HC

++ Cus - Period of limitation for seeking refund of customs duty u/s 27 of Customs Act, would not apply qua Extra Duty Deposit: HC

++ Cus - Commissioner (A) can't be blamed for having sent order to earlier address; Taxpayer not even bothered to verify if any order was passed by Commissioner (A) in appeal preferred at its instance: HC

++ Cus - Goods are not liable for confiscation u/s 111(d), if in terms of Sec 138 (B), no evidence is adduced to effect to prove that goods in question recovered is alleged act of smuggling: CESTAT

++ ST - Excess tax paid is liable to adjusted against later demands; request for adjustment not hit by Notification No. 4/2008 : CESTAT

++ ST - Assessee provided taxable services as a commission agent for DHL & commission income correctly derived from Form 26AS; duty demands sustained: CESTAT

++ CX - The procedural error in transitioning credit through an incorrect form did not warrant denial of the credit: CESTAT

March 05, 2025

++ Cus - Legislative amendments cannot be used to expand or alter scope of a provision under guise of clarification, as this would amount to legislative overreach: HC

++ Cus - An explanation or clarification is valid only if it addresses an ambiguity in original statute or notification: HC

++ Cus - Baggage Rules 2016 apply to baggage only & not to items carried on a passenger's person; inclusion of carried on person items within the rule is beyond the authority of the Rule-Making Authority & is ultra vires: HC

++ Cus - Jewelry worn by a passenger does not fall within purview of Baggage Rules, 2016, as it is not part of baggage: HC

++ Cus - Confiscation order quashed due to lack of SCN, insufficient time for personal hearings, false information in Mahazar & contradictions in Customs officers' statements, indicating fabrication; serious violation of principles of natural justice - disciplinary action recommended against Seizing Officer for conduct unbecoming: HC

++ Cus - Petitioner who approaches the Court with unclean hands is disqualified from seeking discretionary relief under Article 226: HC

++ GST - Non-compliance of Rule 142 would render SCN invalid - No cross examination allowed - Therefore, prima facie case in favour of petitioner - Final order stayed as otherwise petitioner would suffer irreparably: HC

++ CX - Duty demanded in the case is about Rs.1.42 crores and which is less than the prescribed monetary limit of Rs.2 crores for filing an appeal before High Court, by Revenue - Appeal dismissed: HC

++ Kerala VAT - Income disclosed by I-T authorities cannot automatically be assumed to be income from sales for sales tax purposes; clear evidence showing that money was derived from taxable transactions, needed: HC

++ Kerala VAT - Transportation & handling charges, even when shown separately in sales invoices, forms part of taxable turnover: HC

++ ST - Benefit under Notfn No. 12/2003-ST solely based on Assessee's failure to produce required documents to prove cost of materials used in providing service, is not tenable; case remanded for reconsideration of evidence: CESTAT

++ Cus - Charges for 'Supervision of Installation' and 'Field Efficiency Test' are not part of transaction value and cannot be included in assessable value for customs duty: CESTAT

++ CX - Items used in co-generation plants can be eligible for credit if linked to the manufacturing process: CESTAT

++ CX - CENVAT Credit can not be availed on invoices not issued in the assessee's name, or in respect of input services not related to manufacture process: CESTAT

++ ST - Assessee admitted short-payment of tax during Audit, failed to reply to Audit report; CA's certificate found unsatisfactory - duty demands upheld; extended limitation upheld given suppression of facts by assessee: CESTAT

March 04, 2025

++ GST - PVC raincoat is classifiable under heading 3926 and attracts tax @18%: AAR

++ GST - Liquidator who is an insolvency professional is required to obtain GST registration: AAR

++ GST - Applicant will be deemed to be acting as pure agent; not liable to pay GST on reimbursement of electricity charges on actual basis: AAR

++ GST - Applicant has neither appeared for hearing nor produced any documents in support of submission made in their application seeking advance ruling - Authority refrains from pronouncing any ruling: AAR

++ Cus - Customs Broker cannot be foisted with onus of verifying or be expected to judge whether IEC or registration was correctly issued by Department officers, so long as the same is valid: CESTAT

++ Cus - CBLR - If reliable documents from Govt officers indicate that a client is operational at certain address, brokers can reasonably presume their authenticity - charges of violating Regulation 10(n), by not verifying client's address, is not tenable: CESTAT

++ Cus - Customs Broker is not responsible for ongoing surveillance of clients after their verification - If a client relocates without notifying authorities, it cannot be held against the broker: CESTAT

++ Cus - Penalty of Rs 10 Lakhs imposed u/s 112(b) of Customs Act 1962 is valid where appellant was found to have played significant role in smuggling activity by allowing diversion of goods & their replacement with smuggled ones: CESTAT

++ CX - Once an appellate order sets aside a lower authority's decision, the earlier order becomes non-existent and cannot serve as the basis for subsequent litigation: CESTAT

++ CX - Demand for reversal of Cenvat credit invalid as reversal of credit for the same period was already confirmed vide an earlier Order-in-Original: CESTAT

++ ST - Once the activity is held as amounting to 'manufacture', it is excluded from purview of Service Tax as per definition of 'business auxiliary service': CESTAT

March 03, 2025

++ ST - Merely on the ground that pre-deposit amount was deposited in a wrong account, especially when the said integrated portal was not even available, Appeal could not have been rejected: HC

++ CX - Adjudication order passed by Dept. without complying with directions issued by CESTAT, merits to be quashed: HC

++ ST - When appellant is acting on a principal to principal basis, as regards purchase and selling of space from shipping line/airline and selling to importers/exporters, said act would not amount to an activity liable to Service Tax: CESTAT

++ ST - Amount recovered by appellant towards issue of entry permits as well as vehicles which was credited to State Treasury are to be considered in nature of fee or amount collected as per provisions of relevant statute for performance of statutory functions: CESTAT

++ CX - In absence of deliberate intention on part of manufacturer to evade payment of duty, it is not open to Central Excise Officer to proceed to recover duties in manner indicated in proviso to Sec 11A: CESTAT

++ CX - Since the alleged non-compliance is only discovered during an audit, normal limitation period should have applied, making the entire demand time-barred: CESTAT

++ Cus - As there is no foreign marking on the gold and the purity is less than 99.9% and it is a case of town seizure, no infirmity found with impugned order and same is upheld: CESTAT

++ Cus - Email communications cannot be relied on as evidence to hold Customs Broker liable for contravening CBLR 2018, where requirements of Section 138C of Customs Act r/e Section 65B of Evidence Act, are not satisfied: CESTAT

++ Cus - Although Customs Broker omitted to ensure proper supervision of its staff, amounting to non-exercise of due diligence u/s 10(e) of CBLR 2018, revocation of broker's license & forfeiting security deposit, are too harsh punishment for such lapse: CESTAT

March 01, 2025

++ GST - Amount paid by petitioner through Form GST DRC-03 shall be considered as pre-deposit for filing appeal: HC

++ GST - 56/2023-CT held ultra vires - Whether a ratification subsequently can take care of the recommendation which was required as per s.168A- Revenue Counsel has no answer - Review petition dismissed: HC

++ GST - Council, having considered all material aspects, having recommended the extension of period of limitation and the same having been accepted by the GoI , the assessee cannot challenge 9/2023-CT: HC

++ ST - Purchase and sale of SIM Cards by franshisee/distributors appointed by telecom companies not leviable to Service Tax under category of Business Auxiliary Service especially when such companies already discharged service tax on gross amount of Such SIM cards: CESTAT