CESTAT Weekly Flashback for the period 23 To 29 March 2025.
Table of Contents
Customs Excise and Service Tax Appellate Tribunal (CESTAT) Weekly Flashback from 23 to 29 March 2025.
Student Almanac & Teacher Planner Not Exigible to Excise Duty: CESTAT
The Delhi High Court has held that the Student Almanac and teacher planner were not eligible for duty and, therefore, the assessee have not declared them in their excise returns.
The bench of Justice Mr. Dilip Gupta (President) and P.V. Subba Rao (Technical Member) has observed that the assessee had not intimated the department in any other way about the manufacture of these goods and therefore, the assessee had an intention to evade payment of duty and for that reason the assessee had willfully suppressed facts. Therefore, an extended period of limitation was correctly invoked.
No Service Tax Payable By IPL Franchise On Central Rights Income In Franchise Agreement : CESTAT
The Delhi bench of Customs, Excise and Service Tax Appellate Tribunal (CESTAT) has set aside service tax demand against an IPL franchise, JSW GMR Cricket Pvt. Ltd. on central rights income in franchise agreement.
The bench of Dr. Rachna Gupta (Judicial Member) and Ms. Hemambika R. Priya (Technical Member) has observed that a contractor-contractee or the principal-client relationship, which is the essential element of any taxable service, is absent in the case of the partners or co-venturers in a joint venture agreement. In the present case, since the demand in respect of Central Rights Income arising out of the franchise agreement cannot be considered as provision of any service between the members to the franchise agreement, such demand cannot be confirmed on the assessee-appellant.
Pan Masala & Gutkha Freely Exportable: CESTAT Quashes Confiscation & Penalty Against Pan Parag
The Delhi Bench of Customs, Excise and Service Tax Appellate Tribunal (CESTAT) has held that the pan masala and gutkha are freely exportable so the confiscation and penalty was unjustified.
The bench of Dr. Rachna Gupta (Judicial Member) and Hemambika R. Priya (Technical Member) has observed that the goods exported i.e. pan masala and gutkha were freely exportable goods in terms of Foreign Trade Policy. Those have wrongly been called as prohibited for alleged violation of the conditions meant for duty free imports.
Amnesty Scheme Silent on Penalty, Non-Fulfilment of Export Obligation May Not Be Irregularity: CESTAT
The Customs, Excise and Service Tax Appellate Tribunal (CESTAT) bench of New Delhi has held that where the amnesty scheme does not provide for payment for any penalty, non- fulfilment of export obligation under Export Promotion Capital Goods (EPCG) license cannot be considered as an irregularity.
CESTAT Grants Absolute Exemption from Service Tax on GTA Services Where Recipient is Liable to Pay
The Customs, Excise and Service Tax Appellate Tribunal (CESTAT) bench of New Delhi has granted absolute exemption from the liability to pay Service Tax on Goods Transport Agency (GTA) services where the recipient is liable to pay.
CESTAT Rejects Service Tax Refund Claim Due To Unchallenged Self-Assessments
The Customs, Excise and Service Tax Appellate Tribunal (CESTAT) bench of New Delhi has held that a refund claim cannot be entertained until and unless the self- assessment order is challenged by way of appeal.
The bench comprising of Ms. Binu Tamta (Judicial Member) and Mr. P.V Subba Rao (Technical Member) has held that the refund claim of the appellant / assessee is unsustainable and dismissed the appeal.
Department’s Failure to Transfer Appeal Internally Cannot Render It Time-Barred: CESTAT
The New Delhi Bench of Customs Excise and Service Tax Appellate Tribunal (CESTAT) has held that failure of the department to transfer the appeal internally to the concerned appellate division would not render the appeal to be barred by limitation.
A bench of Ms. Binu Tamta ( Judicial Member) and Mr. P.V Subba Rao (Technical Member) observed that the benefit of Section 14 of the Limitation Act, 1963 can be availed by the appellant / assessee where he was prosecuting an appeal bonafidely before a different appellate division.
No Service Tax On Sale Of Packed or Reheated Food In Cinema Halls: CESTAT
In a major relief to PVR, the Delhi Bench of Customs, Excise and Service Tax Appellate Tribunal (CESTAT) has held that no service tax on sale of packed or reheated food in cinema halls as there is no service element involved.
The bench of Binu Tamta (Judicial Member) and P.V. Subba Rao (Technical Member) has observed that cinema hall’s main purpose is to enable the public to view the movie, however to make it more enjoyable and convenient they provide a separate counter outside the movie hall but within the complex where the viewers can themselves go and buy some food or drinks, which implies that the later facility is only incidental and hence cannot be treated as a service within the definition of “service” under the Finance Act, for the charge of service tax.
