Indirect Duty Weekly Flashback for the period from 27 July to 2 August 2025.
Supreme Court
Stem Cell Banking Services Exempt from Service Tax: Supreme Court
The Supreme Court has held that the collection, processing, and storage of umbilical cord blood stem cells fall within the ambit of “Healthcare Services” and are therefore exempt from service tax.
Delhi High Court
The Delhi High Court has pressed the Central Board of Indirect Taxes and Customs (CBIC) to expedite amendments to the Baggage Rules, 2016. The Court’s direction follows continuing legal disputes regarding the detention of personal gold jewellery from Indian and foreign passengers.
The Delhi High Court has ruled that the detention of two gold chains by the Customs Department is legally impermissible, as no show cause notice was issued even after the expiry of the one-year statutory period under Section 110 of the Customs Act. The Court ordered immediate release of the jewellery to the petitioner, an Uzbekistan national.
The Delhi High Court has held that bona fide personal jewellery carried or worn by a passenger does not automatically constitute smuggling or dutiable goods.
No Show Cause Notice, No Hearing: Delhi High Court Quashes Detention of Passenger’s Gold Ornaments
The Delhi High Court has quashed the detention of a passenger’s gold jewellery at IGI Airport, ruling that the customs department failed to issue a proper Show Cause Notice (SCN) or provide a personal hearing before seizing the items.
The Delhi High Court has directed the Customs, Excise and Service Tax Appellate Tribunal (CESTAT) to hear a high-value customs duty dispute on merits, setting aside a 273-day delay in filing the appeal.
The Delhi High Court has directed the release of jewellery detained by the Customs Department at IGI Airport, ruling that the items fall within the ambit of “personal effects” under the Baggage Rules.
Bombay High Court
The Bombay High Court has granted the anticipatory bail to the Walnuts importer and allowed the videography of statement recording by Directorate of Revenue Intelligence (DRI) and the presence of Advocate at visible distance.
Karnataka High Court
Multiple SCNs and Orders Issued for Same Assessee and FY: Karnataka High Court Seeks Clarification
The Karnataka High Court has sought the clarification on multiple Show Cause Notices (SCNs) and Orders for the same assessee and Financial Year (FY).
CESTAT
The Customs, Excise & Service Tax Appellate Tribunal (CESTAT), New Delhi in a case argued by Dr. Sanjiv Agarwal has set aside a service tax demand on affiliation fees imposed on the University of Kota quashed.
Inherent Power Of Tribunal To Stay Of Order Determinantal To Taxes Collection: CESTAT
The Chennai Bench of Customs, Excise and Service Tax Appellate Tribunal (CESTAT) in its order has answered the issue: Whether the Tribunal has the power to stay an order so as to make it non-existent in the eyes of the law or merely to avoid depositing additional adjudged dues during the period of appeal? The answer is yes, the Tribunal has the power to stay an order.
Only Common CENVAT Credit Reversal Required: CESTAT Strikes Down Rs. 24 Lakh Demand
The Customs, Excise and Service Tax Appellate Tribunal (CESTAT), Chennai has quashed a Rs. 24.08 lakh service tax demand and a Rs. 10 lakh penalty, holding that only common input service credit used for both taxable and exempt services is subject to reversal—not the entire CENVAT credit availed.
CESTAT Quashes Rs. 4.6 Crore Anti-Dumping Duty Demand Over Alloy Wheel Imports
The Customs, Excise & Service Tax Appellate Tribunal (CESTAT), Mumbai, has set aside a Rs. 4.6 crore anti-dumping duty (ADD) demand and penalties in a case concerning alleged misdeclaration of the country of origin of alloy wheels imported from Taiwan.
CESTAT Quashes Rs. 17.95 Lakh Service Tax Demand on Employee Transport via Contract Carriage
The Customs, Excise, and Service Tax Appellate Tribunal (CESTAT), New Delhi, has set aside a service tax demand of Rs. 17.95 lakh along with interest and penalties, ruling that employee transportation services provided through contract carriages are exempt from service tax under applicable exemption notifications.
The Customs, Excise, and Service Tax Appellate Tribunal (CESTAT), New Delhi, has upheld the denial of refund claims exceeding ₹28 lakh related to service tax paid on limestone mining transactions. The Tribunal ruled that the services rendered under a joint venture mining arrangement could not be classified as “self-service” and were therefore subject to taxation under the Finance Act, 1994.
Lease Premium for Land Transfer Not A Taxable Service: CESTAT
The Customs, Excise & Service Tax Appellate Tribunal (CESTAT) in New Delhi has partially set aside a Rs. 21.28 crore service tax demand imposed on the Raipur Development Authority (RDA), holding that the leasing of land and transfer of development rights did not constitute taxable services.
Customs Appeal Abates After Death of Sole Proprietor: CESTAT
The Customs, Excise & Service Tax Appellate Tribunal (CESTAT) in Chennai has dismissed a revenue appeal after holding that proceedings cannot continue following the death of a sole proprietor, in line with Rule 22 of the CESTAT (Procedure) Rules, 1982.
Limitation Period Not Applicable for Refund of Extra Duty Deposit: CESTAT
The Customs, Excise & Service Tax Appellate Tribunal (CESTAT), Mumbai, has ruled that the limitation period under Section 27 of the Customs Act, 1962, does not apply to refund claims for Extra Duty Deposit (EDD) collected during Special Valuation Branch (SVB) investigations.
The Customs, Excise & Service Tax Appellate Tribunal (CESTAT), Mumbai has strongly rebuked the Central GST authorities for serving key legal notices to an outdated address, ultimately setting aside the rejection of a service tax appeal on the grounds of limitation.
