This weekly round-up analytically summarizes the key stories related to the Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) reported at Taxscan.in during the previous week from July 16 to July 22, 2022.
M/s. Crompton Greaves Ltd vs Commissioner of Central Excise– 2022 TAXSCAN (CESTAT) 392
The Customs, Excise & Service Tax Appellate Tribunal ( CESTAT ), Mumbai bench has held that duty paid on transformer received from the customer allowed as CENVAT credit under rule 16. The Tribunal Mr Sanjiv Srivastava, member (technical) and Mr Ajay Sharma, member (judicial) while allowing the appeal, set aside the impugned order and held that “the goods stand returned in the present case and the appellant would be entitled to the credit, in terms of the said rules.”
M/s. Elora Tobacco Company Ltd. vs Commissioner of CGST & Central Excise – 2022 TAXSCAN (CESTAT) 393
While considering a bunch of appeals, the Customs, Excise & Service Tax Appellate Tribunal (CESTAT), Delhi Bench held that the demand of duty on clandestine removal was not sustainable in the absence of corroborative evidence. The Tribunal observed that the impugned order even failed to show the manufacture of excess cigarettes and the demand of duty against M/s ETCL was not sustainable. Further, no penalty was imposable on Shri Shyam Khemani, director of M/s ETCL as there was no evidence in the form of communication or pecuniary benefits availed by the officers from M/s ETCL on record, which can indicate any alliance between the Appellant officers and ETCL for any clandestine manufacturing.
M/s K K Spun India Ltd vs Commissioner of Central Excise Customs and Service Tax -2022 TAXSCAN (CESTAT) 390
The Customs, Excise & Service Tax Appellate Tribunal ( CESTAT ) New Delhi bench has held that exemption available to supply for a specific government project and allows Cenvat credit on Capital Goods. The Coram of Mr. Anil Choudhary, Member (Judicial) while allowing the appeal has held that “I find that the appellant is entitled to take Cenvat credit on the capital goods, as their finished goods falling under CTH 68109990 are dutiable under the Central Excise Tariff Act. Thus Rule 6(4) of CCR is not attractive. Thus, I hold that the show cause notice is mis-conceived. I further hold that the appellant has rightly taken Cenvat credit on the capital goods”.
FORWARD RESOURCES PVT LTD vs C.C.E. & S.T.-SURAT-I – 2022 TAXSCAN (CESTAT) 394
The Customs, Excise, and Service Tax Appellate Tribunal (CESTAT), Ahmedabad bench has held that the service tax demand cannot be based on the TDS/26AS Statement under the Income Tax Act, 1961. Holding that the demand for services tax is not sustainable on the basis of TDS /26AS statements, a bench of Mr. Ramesh Nair Member (Judicial), and Mr. Raju Member (Technical), has held that the income tax and service tax are two different/ separate and independent Acts and their provisions operating in two different fields.
Shaniyal Dyeing Printing P Limited vs C.C.E. & S.T.-Surat-ii – 2022 TAXSCAN (CESTAT) 395
The Central Excise and Service Tax Appellate Tribunal (CESTAT), Ahmedabad bench has held that the central excise dues cannot be recovered from the owner of the property which was leased out to the assessee against whom the dues are pending. While holding in favour of the appellant, the Tribunal held that “In view of the above judgments, it is settled that the government dues against the assessee cannot be recovered from the owner of the property which was leased out to the assessee against whom the dues are pending accordingly, the revenue has wrongly collected the amount of dues pertaining to M/s. Roma Industries consequently, the said amount is required to be refunded to the appellant along with interest as per law.”
M/s Leather Sellers vs Commissioner of Customs And Excise, Patparganj – 2022 TAXSCAN (CESTAT) 391
The Customs, Excise, and Service Tax Appellate Tribunal (CESTAT), New Delhi bench has allowed 12% Interest on delay in processing refund of pre-deposit. The Coram of Mr. Anil Choudhary, Member (Judicial) by relying on the decision of Tribunal in Parle Agro Ltd. has held that “I hold that the amount was lying in the nature of the pre-deposit with the department from the date of encashment of the Bank Guarantee. Accordingly, I hold that the appellant is entitled to interest from the date of encashment of Bank Guarantee, i.e., 21/07/2006 to 22/07/2019 under Section 129EE of the Customs Act @ of 12% P.A”.
M/s Rosa Impex Private Limited vs Commissioner of CGST – 2022 TAXSCAN (CESTAT) 397
The Customs, Excise and Service Tax Appellate Tribunal (CESTAT), Mumbai Bench has held that delay in filing appeal due to mental insanity and condones delay of 1354 days. The Coram of Dr. Suvendu Kumar Pati, Member (Judicial) by relying on the decision of the Supreme Court in MP Steel Corporation observed that the spirit of the principle laid down in the Indian Limitation Act for extension of the limitation period upon contingencies/circumstances enumerated between Section 6 and 24 of the said Act is to be pressed into service in advancing substantial justice
Sanjeev Jindal vs Commissioner, Customs & Central Excise – 2022 TAXSCAN (CESTAT) 396
Customs, Excise, and Service Tax Appellate Tribunal (CESTAT), New Delhi has held that penalty will not sustain after deletion of disallowance of area-based exemption as per Excise Notification. The Coram of Mr. Justice Dilip Gupta, President has held that “the impugned order dated December 27, 2011, in so far as seeks to impose a penalty of Rs.5 lakhs on the appellant, therefore, deserves to be set aside and is set aside. The appeal is, accordingly, allowed”.
M/s. Crompton Greaves Ltd vs Commissioner of Central Excise – 2022 TAXSCAN (CESTAT) 392
The Mumbai bench of Customs, Excise, and Service Tax Appellate Tribunal presided by Mr. Sanjiv Srivastava, Member (Technical), and Mr. Ajay Sharma, Member (Judicial) has held that Cenvat credit availed on capital goods is allowable when capital goods are removed, either used or not. The Tribunal observed that the capital goods were removed by the appellant after having been put to use for a considerable period of time, the approach adopted by the appellant to reverse the amount determined on the basis of the book value of the capital goods, or depreciated value of capital goods cannot be faulted with.
M/s Mec Shot Blasting Equipment Ltd vs Commissioner, CGST – 2022 TAXSCAN (CESTAT) 399
The Delhi bench of the Customs, Excise and Service Tax Appellate Tribunal (CESTAT) has held that the service tax cannot be levied on the Company for the payment of rent to the Director if such premises are not used for commercial purpose. Quashing the impugned order, the Tribunal held that “Having considered the rival contentions, I find that the demand of tax of Rs. 70,140/- have been wrongly raised as the premises are residential premises and being used for residence of the director. So far the other two demands are concerned, I hold that the situation is wholly revenue neutral and accordingly, invocation of extended period of limitation is not available to the Revenue in the facts and circumstances.”
M/s Agrawal Metal Works Pvt. Ltd. vs Commissioner of Central Goods and Service Tax – 2022 TAXSCAN (CESTAT) 398
The Delhi bench of the Customs, Excise and Service Tax Appellate Tribunal (CESTAT) has held that the CENVAT credit on common inputs/input services cannot be denied to an assessee who is rendering exempted services. Finding that the demand has been made under Rule 6 (3) of CCR, 2004, the Tribunal held that “It has been held by the Hon’ble High Court of Andhra Pradesh and Telangana in the case of Tiara Advertising versus Union of India10 that the various options under Rule 6 are options given to the assessee and the Revenue cannot choose one of the options and force it upon the assessee. Even if the assessee is rendering exempted services or manufacturing exempted goods and using common input services no demand can be sustained under Rule 6 (3) as this is only one of its options available to assessee to fulfil its objection.”
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