Customs, Excise and Service Tax Appellate Tribunal (CESTAT) Weekly Flashback for the period 16 to 22 March 2025.
Table of Contents
ITR Alone Insufficient To Confirm Service Tax Demand: CESTAT
The Mumbai Bench of Customs, Excise and Service Tax Appellate Tribunal (CESTAT) has held that service tax information derived from the income-tax returns (ITR) solely cannot be made the basis to confirm the demand of service tax.
SCN Lacks Specific Allegations: CESTAT Quashes Order Revoking Authorised Courier License & Rs. 50K Penalty
The Delhi Bench of Customs, Excise and Service Tax Appellate Tribunal (CESTAT) has quashed the order revoking the Authorised Courier License of the appellant and ordering for forfeiture of security deposit and imposing of penalty of Rs. 50,000 on the grounds of vague show cause notice.
The bench of Justice Dilip Gupta (President) and Hemambika R. Priya (Technical Member) has observed that though the show cause notice runs into as many as 129 pages, but from page nos. 1 to 127 the order passed by the Assistant Commissioner in proceedings relating to the Customs Act has been reproduced. Though the show cause notice calls upon the appellant to submit representation as to why the appellant has failed to comply with provisions under 2010 Regulations to act as an Authorised Courier, it does not mention why the appellant had contravened the aforesaid provisions of the 2010 Regulations.
India Imposes Anti-Dumping Duty on Vacuum Insulated Flasks from China
In a decisive move to safeguard domestic manufacturers, the Central Board of Indirect Taxes and Customs (CBIC) has imposed an anti-dumping duty on vacuum insulated flasks and similar stainless steel products imported from China.
50% Customs Duty Payable On E-Bikes In CKD Condition: CESTAT
The Delhi Bench of Customs, Excise and Service Tax Appellate Tribunal (CESTAT) has held that 50% customs duty payable on the e-bikes in Completely Knocked Down (CKD) condition.
The bench of Dr. Rachna Gupta (Judicial Member) and Hemambika R. Priya (Technical Member) has observed that the entry at S.No. 531A of Notification No. 50/2017 dated 30.06.2017 cites three situations with three different rates of duties. S.No. 531A(1)(a) required duty at the rate of 15%, 531A(1)(b) required duty at the rate of 25% and S.No. 531A(2) required duty at the rate of 50%. Apparently thee-bikes in Completely Knocked Down (CKD) condition do not fall under 1(a) and 1(b) of 531A, hence the benefit of the Notification No. 50/2017 has rightly been denied.
CESTAT Allows Provisional Release Of 53 Kgs Gold Seized By DRI
The Delhi Bench of Customs, Excise and Service Tax (CESTAT) has allowed the provisional release of 53 kgs of gold seized by Directorate of Revenue Intelligence (DRI).
The bench of Justice Dilip Gupta (President) and Hemambika R. Priya (Technical Member) has observed that the finding recorded by the Commissioner that the premises did not have a fully mechanized machine for manufacture of jewellery is not based on any evidence.
CESTAT Quashes Order Directing Rs. 1.67 Crore Refund To Consumer Welfare Fund Instead Of Vivo
The Delhi Bench of Customs, Excise and Service Tax Appellate Tribunal (CESTAT) has quashed the order directing Rs. 1.67 crore refund to consumer welfare fund instead of Vivo.
Honda Not Liable To Pay Service Tax On Excess Transportation Charges Recovered From Buyers: CESTAT
The Delhi Bench of Customs, Excise and Service Tax Appellate Tribunal (CESTAT) has held that Honda is not liable to pay service tax on excess transportation charges recovered from buyers.
The bench of Binu Tamta (Judicial Member) and P.V. Subba Rao (Technical Member) has observed that the activity of arranging transportation of goods till the dealers premises cannot be classified under „Business Auxiliary Service‟ and, therefore, no service tax is payable on transportation related expenses recovered in excess by the appellant from their buyers.
Service Tax Payable On Activity Of Milk Chilling: CESTAT
The Delhi Bench of Customs, Excise and Service Tax Appellate Tribunal (CESTAT) has held that the the activity of chilling of milk during the post negative period amounts to rendering ‘services’ as defined in section 65B (44) and is therefore, leviable to service tax.
The bench of Binu Tamta (Judicial Member) and P.V. Subba Rao (Technical Member) has observed that the term ‘animal husbandry’ as per the meaning ascribed to it in the Cambridge Dictionary is, “farming of animal to produce foods such as meat, eggs and milk.” The term ‘animal husbandry’ being of wider import would include chilling of milk and therefore, the Gujarat High Court has rightly held the activity of chilling of milk to be exempted. However, there is no such provision in the Finance Act either in the negative list under section 66D(d)(iii) or under the definition of ‘agriculture’ and ‘agricultural produce’.
Transportation Of Goods And Activity Of Unloading And Loading Are Incidental, Classifiable Under GTA: CESTAT
The Delhi Bench of Customs, Excise and Service Tax Appellate Tribunal (CESTAT) has held that the transportation of the goods and the activity of unloading and loading are clearly incidental and hence classifiable under Goods Transport Agency Service (GTA).
The bench of Binu Tamta (Judicial Member) and P.V. Subba Rao (Technical Member) has observed that the main activity which the appellant performed was of transportation of goods which is classifiable under the GTA as defined under Section 65B(26) and the activity of loading and unloading the goods is only ancillary.
ONGC Not Liable To Pay Service Tax On Liquidated Damages Received From Contractors Located Outside India: CESTAT
Case Title: M/s. Oil & Natural Gas Corporation Ltd. Versus Commissioner of Central Goods & Service Tax, Dehradun
The Delhi Bench of Customs, Excise and Service Tax Appellate Tribunal (CESTAT) has held that the Oil & Natural Gas Corporation Ltd. (ONGC) is not liable to pay service tax on liquidated damages received from contractors located outside India.
The bench of Binu Tamta (Judicial Member) and Hemambika R. Priya (Technical Member) has observed that the amount received from the contractors or vendors located abroad would be deemed to have been provided outside India and cannot be taxed in India.
Subscription, Redemption Of Mutual Funds Units Can’t Be Termed As Sale And Purchase Of Securities: CESTAT
The Delhi Bench of Customs, Excise and Service Tax Appellate Tribunal (CESTAT) has held that subscription and redemption of mutual funds units cannot be termed as sale and purchase of securities.
The bench of Binu Tamta (Judicial Member) and Hemambika R. Priya (Technical Member) has observed that the activity of investment in mutual funds does not involve the presence of a service rendered by a service provider towards a recipient of service for some consideration. The activity undertaken would not amount to “service” in terms of Section 65B(44) of the Finance Act.
CESTAT Quashes Penalty On Small Time Printer In Alleged Export Scheme Violation
The Ahmedabad Bench of Customs, Excise and Service Tax Appellate Tribunal (CESTAT) has quashed the penalty on small time printer in alleged export scheme violation.
CESTAT Quashes Central Excise Duty On Aromatic Compound Used For Agarbatties Manufacturing
The Mumbai bench of Customs, Excise and Service Tax Appellate Tribunal (CESTAT) has quashed the Central Excise duty demand on intermediate goods i.e. aromatic compounds used for manufacturing Agarbatties.
The bench of S.K. Mohanty (Judicial Member) and M.M. Parthiban (Technical Member) has observed that chemical composition of aromatic compound was not mentioned in those invoices and also the composition of such intermediate product used by the appellants was also not considered by the Department, in order to conclude that the self-same aromatic compounds used by the appellants for the intended purpose, is marketable.
Service Tax Payable On Construction Services Provided To RIICO And RSAMB: CESTAT
The Delhi Bench of Customs, Excise and Service Tax Appellate Tribunal (CESTAT) has held that the service tax payable on construction services provided to Rajasthan State Agriculture Marketing Board (RSAMB), and Rajasthan State Industrial Development and Investment Corporation Ltd. (RIICO).
