This weekly round-up analytically summarizes the key stories of the Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) reported at taxscan.in, from May 4, 2024 to May 10, 2024
The Mumbai Bench of the Customs, Excise and Service Tax Appellate Tribunal (CESTAT) allowed the refund of service tax on cancelled bookings of flats.
A Single Bench of PK Choudhary, Judicial Member observed that “I find that the credit/refund of the excess service tax paid by the Appellant was a right that had accrued in favour of the Appellant and therefore, as per Section 174 of the CGST Act, 2017, such right of the Appellant ought to be upheld and protected. Further, Section 142(5) of the CGST Act, 2017 contemplates the very situation as in the present appeals and accordingly, provides for refund of taxes paid under the erstwhile Laws.
The Chennai bench of the Customs Excise and Service Tax Appellate Tribunal ( CESTAT ) ruled that re-determination of valuation of Imported car from United Arab Emirates ( UAE ) based on Australian prices is invalid without contemporary imports of comparable goods.
The two-member bench of the tribunal, composed of Vasa Seshagiri Rao (Technical Member) and Sulekha Beevi C.S (Judicial Member), concluded that the Commissioner (Appeals)’s decision to grant exemption benefits and revoke the goods confiscation order was both legally sound and appropriate. They deemed the enhancement of value as unjustified. Consequently, the tribunal found no grounds for overturning the contested decision. Therefore, the Department’s appeal was dismissed.
The Allahabad bench of the Customs, Excise & Service Tax Appellate Tribunal (CESTAT) has held that a Subcontractor is liable to pay service tax on “Commercial or Industrial Construction Service”. The tribunal found that the services have been held to classified under the category of ‘Commercial and Industrial Construction Services’ the benefit of composition scheme has been denied to assessee.
In light of the case of Melange Developers P. Ltd. two member bench of Mr P K Choudhary, Member (Judicial) and Mr Sanjiv Srivastava, Member (Technical) held that the appellant being a subcontractor is liable to pay service tax on of “Commercial or Industrial Construction Service”. Further held that extended period cannot be invoked to demand service tax from the appellant and in the present case the entire demand is barred by limitation as the demand pertains to the year 2004-05 and 2005-06 whereas show cause notice was issued on 28.03.2009 which is completely time barred.
The Allahabad bench of the Customs, Excise & Service Tax Appellate Tribunal ( CESTAT ) has held that claim for valuation as per Rule 2A of the Service Tax (Determination of Values) Rules, 2006 or as per Composition Scheme under Work Contract (Composition Scheme for payment of Service Tax) Rules, 2007 can be allowed only if the services provided by them are classifiable under work contract.
A two-member bench of Mr P K Choudhary, Member (Judicial) and Mr Sanjiv Srivastava, Member (Technical) held that the demand for the normal period of limitation will have to be upheld, by classifying the services provided by the appellant under the category of “Work Contract Services”, and by extending the benefit of 2A of the Service Tax (Determination of Values) Rules, 2006 or as per Composition Scheme under Work Contract (Composition Scheme for payment of Service Tax) Rules, 2007.
The Kolkata bench of the Customs, Excise & Service Tax Appellate Tribunal ( CESTAT ) set aside the demand of service tax as Overseas Logistics Service Providers ( OLSPs ) are not providing service as an agent of assessee. The Tribunal observed that the services provided by the OLSPs will be taxable under clause (vi) of Section 65(19) of the Finance Act only if the services are provided on behalf of the Appellant to the customers of the Appellant.
A two-member bench of Shri Ashok Jindal, Member (Judicial) and Shri K Anpazhakan, Member (Technical) held that the services rendered by the OLSPs cannot be categorized under the category of ‘Business Auxiliary Services’. The CESTAT held that the demand of service tax confirmed along with interest and penalty confirmed in the impugned order under the category of ‘Business Auxiliary Service’ is not sustainable and set aside the same.
In a recent case, the Ahmedabad bench of the Customs, Excise & Service Tax Appellate Tribunal (CESTAT) has held that Excise registration can be allowed if either party is a manufacturer and undertakes Excise duty liability. The Tribunal observed that if either party was to apply for registration as a manufacturer the department would have accepted the application. Excise registration is only to the effect that one of the parties undertakes to discharge the excise duty liability on the goods manufactured. This cannot be interpreted to mean that the activity done by the other party is not a manufacturing activity.
A two-member Mr Ramesh Nair, Member (Judicial) and Mr C L Mahar, Member (Technical) observed that if either party was to apply for registration as a manufacturer the department would have accepted the application. Excise registration is only to the effect that one of the parties undertakes to discharge the excise duty liability on the goods manufactured. This cannot be interpreted to mean that the activity done by the other party is not a manufacturing activity.
In a recent case, the New Delhi bench of the Customs, Excise & Service Tax Appellate Tribunal ( CESTAT ) upheld the demand of Rs. 4.82 crores excise duty against Divisional Forest Officers ( DFO ). It was observed that once the taxability of Resin produced by the appellant and sold by it has been settled, the demand for excise duty has to be confirmed.
The two-member bench of Mr Justice Dilip Gupta, President and Mr P V Subba Rao, Member ( Technical ) viewed that when it has been settled that central excise duty would be leviable as Resin is produced, there is no reason to interfere with the impugned orders passed by the Commissioner. The CESTAT dismissed the four appeals.
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