Indirect Tax Weekly Flashback: 15 February 2026 To 21 February 2026

Here’s an Indirect Taxes weekly flashback from 15 February 2026 To 21 February 2026.

Delhi High Court

Private Auctioneers Have No Fundamental Right To Be Empanelled For Customs Auctions: Delhi HC Upholds CBIC Circular

The Delhi High Court has held that private auctioneers have no fundamental or vested right to be empanelled for customs auctions; policy choice aimed at transparency and expeditious disposal cannot be interfered with.

Vested Right Can’t Arise from Fraudulent Exports: Delhi HC Upholds Denial of DFCE Incentives

The Delhi High Court has dismissed an appeal seeking benefits under the Duty Free Credit Entitlement (DFCE) Scheme under the EXIM Policy 2002–2007. The Division Bench held that the issue of entitlement already stands conclusively settled by the Supreme Court and cannot be reopened.

Bombay High Court

Customs Dept. Can’t Impose Bank Guarantee for Provisional Release Without Incriminating Evidence: Bombay High Court

The Bombay High Court has directed the release of seized consignments of US-origin in-shell walnuts holding that the imposition of a Rs. 60 lakh bank guarantee as a condition for provisional release was unjustified in the absence of tangible incriminating material.

Rajasthan High Court

9 Year Delay in Adjudicating SCN Violates S. 73(4B) Of Finance Act, 1994: Rajasthan High Court

The Rajasthan High Court has set aside a common adjudication order raising service tax demands of over Rs. 2.89 crore against a Udaipur-based firm, holding that revival of show cause notices after nearly nine years is arbitrary and contrary to Section 73(4B) of the Finance Act, 1994.

Andhra Pradesh High Court

Assistant Commissioner Can’t Reopen Service Tax Issue Already Settled by Appellate Authority: Andhra Pradesh High Court

The Andhra Pradesh High Court has set aside a service tax demand of Rs. 49.25 lakh raised against a Visakhapatnam-based works contractor, holding that the assessing authority could not reopen an issue that had already been conclusively decided in earlier appellate proceedings.

Calcutta High Court

Validity of Time Extension for Customs Seizure to Be Decided in Adjudication, Not By Writ Courts: Calcutta HC

The Calcutta High Court has refused to interfere with the seizure of gold and cash from a hallmark assay centre employee, holding that questions regarding alleged document tampering and validity of extension of investigation must be examined by the statutory adjudicating authority under the Customs Act, 1962 rather than in writ proceedings.

Mandatory Pre-Deposit Can’t Be Waived or Adjusted Against Company’s Duty Payment for CESTAT Appeal: Calcutta High Court

The Calcutta High Court has dismissed a writ petition challenging the refusal of the Customs, Excise and Service Tax Appellate Tribunal (CESTAT), Kolkata, to entertain an appeal for non-compliance with the statutory pre-deposit requirement.

CESTAT

Appeal Can’t Be Dismissed as Time-Barred Without Proof of Service Of Order-In-Original: CESTAT

The Allahabad Bench of the Customs, Excise & Service Tax Appellate Tribunal (CESTAT) has held that an appeal cannot be rejected as time-barred in the absence of proof of delivery of the Order-in-Original as mandated under Section 37C(1)(a) of the Central Excise Act, 1944.

Gold Baggage Seizure | Tribunal Lacks Jurisdiction To Entertain Appeals In Baggage Cases: CESTAT

The Customs, Excise & Service Tax Appellate Tribunal (CESTAT), Allahabad Bench, has dismissed an appeal arising out of the confiscation of gold wire recovered from a passenger arriving from Dubai, holding that the Tribunal lacks jurisdiction to entertain appeals in baggage cases under Section 129A of the Customs Act, 1962.

Service Tax Appeal Not Maintainable After NCLT Approval of Resolution Plan Under IBC: CESTAT

The Chennai Bench of Customs, Excise and Service Tax Appellate Tribunal (CESTAT) has disposed of a service tax appeal filed by Aircel Limited, holding that once a resolution plan is approved under Section 31(1) of the Insolvency and Bankruptcy Code, 2016 (IBC), pending proceedings relating to claims not forming part of the plan cannot continue.

The Chandigarh Bench of Customs, Excise and Service Tax Appellate Tribunal (CESTAT) has held that the department failed to establish that the company and its buyers were “related persons” or “inter-connected undertakings” under Section 4 of the Central Excise Act, 1944.

Repeated Non-Appearance & Adjournment Culture: CESTAT Dismisses Appeal for Default Under Rule 20

The Customs, Excise & Service Tax Appellate Tribunal (CESTAT), Chennai Bench, has dismissed a service tax appeal filed by Weiss Rohlig India Pvt. Ltd. for non-prosecution after the appellant repeatedly failed to appear despite multiple opportunities.

Plywood Tops Not Includible in Assessable Value of Folding Cots: CESTAT

The Customs, Excise and Service Tax Appellate Tribunal (CESTAT), Kolkata Bench, has held that the value of bought-out plywood tops cannot be added to the assessable value of folding cots manufactured by M/s Shree Durga Industry.

Horticulture Services Fall Under ‘Agriculture’ and Are Not Taxable: CESTAT

The Customs, Excise & Service Tax Appellate Tribunal (CESTAT), Kolkata Bench, has set aside a major portion of the Service Tax demand of ₹6,65,529 raised against M/s Prasad Engineering, holding that horticulture services are not taxable under the Finance Act, 1994.

‘Ready Rotis’ Are Bread, Not Instant Food; Sets Aside Excise Duty Demand: CESTAT

The Delhi Bench of Customs, Excise and Service Tax Appellate Tribunal (CESTAT) has held that “Ready Rotis” manufactured by Ready Roti India Private Limited are classifiable as bread under Tariff Heading 1905 and not as “instant food mixes/ready-to-eat foods” under Heading 2106.

Customs Dept. Can Reject Declared Bill of Entry Value and Rely on Higher Value Email Invoice for Valuation: CESTAT

The Customs, Excise and Service Tax Appellate Tribunal (CESTAT), Delhi Bench, has held that customs authorities were justified in rejecting the declared value in one Bill of Entry and re-determining it on the basis of a higher-value invoice retrieved from the importer’s email.

Transformer Tanks and MS Frames Classifiable as Parts Under Chapter 85; CESTAT Quashes Differential Excise Demand

The Customs, Excise and Service Tax Appellate Tribunal (CESTAT), West Zonal Bench at Ahmedabad, has ruled that MS frame parts, tanks and gland plates manufactured specifically for use in electrical transformers are classifiable as “parts of transformers” under Chapter Heading 8504 of the Central Excise Tariff, and not as general “articles of iron and steel” under Heading 7326.

Route Navigation Charges Not Taxable Under Airport Services; CESTAT Upholds Tax on Terminal Landing Charges

The Customs, Excise & Service Tax Appellate Tribunal (CESTAT), Delhi Benchhas partly allowed an appeal filed by the Airport Authority of India (AAI), holding that Route Navigation Facility Charges (RNFC) are not liable to service tax under the category of “Airport Services,” while upholding taxability on Terminal Navigation Landing Charges (TNLC).

No Mis-declaration Where Memory Components Were Incorrectly Counted: CESTAT

The Delhi Bench of the Customs, Excise & Service Tax Appellate Tribunal (CESTAT) allowed an appeal filed by Criticallog India Private Limited, setting aside confiscation, duty demand, redemption fine, and penalties imposed by customs authorities in a dispute concerning alleged mis-declaration of imported electronic goods and the requirement of BIS certification.

No 6% CENVAT Reversal on Electricity Sold to Grid: CESTAT

The Customs, Excise & Service Tax Appellate Tribunal (CESTAT), Mumbai Bench, has set aside demands requiring payment of 6% of the value of electricity sold to the state grid, holding that Rule 6(3) of the CENVAT Credit Rules, 2004 is not applicable in such cases.

No Customs Duty Demand Without DGFT Cancellation of FPS Scrips: CESTAT

The Ahmedabad Bench of Customs, Excise and Service Tax Appellate Tribunal (CESTAT) has held that no duty demand, redemption fine, or penalty can be imposed under Section 28AAA of the Customs Act unless the export incentive scrips are first cancelled by the Directorate General of Foreign Trade (DGFT).

OIO Service On Assessee Not Complete If Dept. Fails To Prove Service: CESTAT

The Allahabad Bench of Customs, Excise & Service Tax Appellate Tribunal (CESTAT) has held that in the absence of proof of delivery under Section 37C of the Central Excise Act, 1944, the appeal could not be dismissed on limitation.

‘Packing’ Is Mandatory for Classification Under Cargo Handling Service; CESTAT Quashes Service Tax Demand

The Customs, Excise & Service Tax Appellate Tribunal (CESTAT), Chennai Bench, has set aside a service tax demand of over Rs. 10.98 crore raised against Chettinad Lignite Transports Pvt. Ltd. for the period October 2008 to June 2012, holding that the absence of “packing” activity is fatal to classification under Section 65(23)(b) of the Finance Act, 1994.

Reclassification Of Imported PVC Suspension Resin Based On Third-Party Test Report, Without Furnishing It To Importer Is Principles Of Natural Justice Violation: CESTAT

The Customs, Excise and Service Tax Appellate Tribunal (CESTAT), Chennai Bench, has set aside a customs demand raised against M/s Krishna Marketing, holding that the reclassification of imported PVC Suspension Resin based on a third-party test report, without furnishing it to the importer, was in violation of principles of natural justice.

Customs Duty Can’t Be Demanded “Jointly or Severally” From Multiple Persons Unless Goods Were Imported Jointly: CESTAT

The Chennai Bench of Customs, Excise and Service Tax Appellate Tribunal (CESTAT) has held that customs duty cannot be demanded “jointly or severally” from multiple individuals unless goods are shown to have been imported jointly.

Imported Medical Thermal Printers For Diagnostic Use Classifiable As ‘Medical Instruments’: CESTAT

The Delhi Bench of the Customs, Excise & Service Tax Appellate Tribunal (CESTAT) held that thermal printers imported for medical diagnostic purposes are classifiable as medical instruments under Chapter 90 of the Customs Tariff and not as ordinary printers under Chapter 84.

Post-2011 Input Service Narrowed; Rent-a-Cab Credit Inadmissible: CESTAT

The Chennai Bench of the Customs, Excise and Service Tax Appellate Tribunal (CESTAT) has held that the definition of “input service” was consciously narrowed after the 01.04.2011 amendment to Rule 2(l) of the CENVAT Credit Rules, and that rent-a-cab services are clearly inadmissible under the exclusion clause.

Retrospective Exemption Under Finance Act, 2025 Nullifies Service Tax on Reinsurance Under Crop Insurance Schemes: CESTAT

The Chennai Bench of the Customs, Excise and Service Tax Appellate Tribunal (CESTAT) has set aside a service tax demand of ₹29.90 crore raised against United India Insurance Co. Ltd., holding that a retrospective exemption granted under Section 135 of the Finance Act, 2025 rendered the levy unsustainable.

Appeal Filed Within Limitation Must Be Heard on Merits; Later Pre-Deposit Cannot Lead to Rejection as Time-Barred: CESTAT

The Ahmedabad Bench of Customs, Excise and Service Tax Appellate Tribunal (CESTAT) has held that the appeal is required to be heard on merits if the same has been filed within the limitation period but the pre-deposit has been paid at a later point in time and the appeal cannot be returned and re-filed appeal cannot be rejected on the ground of limitation.

No Duty Without Proof of Fresh Import; Relief Granted to L&T on Leftover Bombay High Materials: CESTAT

The Customs, Excise & Service Tax Appellate Tribunal (CESTAT), Ahmedabad Bench, has set aside customs duty demands and penalties imposed on Larsen & Toubro Limited (L&T) and its officials, holding that materials brought ashore from Bombay High were duty-paid leftovers and not freshly imported goods.