CESTAT Weekly Round-Up

This weekly round-up analytically summarises the key stories of the Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) reported at taxscan.in during December 25 to December 31, 2022, the last week of 2022.

CESTAT sets aside Office Memorandum by Finance Ministry for reconsideration of Recommendation made by Designated Authority on Anti-Dumping Duty - [Chemical and Petrochemicals Manufacturers Association vs Union of India - 2022 TAXSCAN (CESTAT) 715]

The Customs, Excise and Service Tax Appellate Tribunal ( CESTAT ), New Delhi Bench set aside an office memorandum by the Ministry of Finance for reconsideration of recommendations made by designated authority on anti-dumping duty. A Coram consisting of Justice Dilip Gupta, President, P V Subba Rao, Technical Member and Rachna Gupta, Judicial Member observed that “The office memorandum is set aside and the matter is remitted to the Central Government to reconsider the recommendation made by the designated authority.”

Relief to Reliance Industries: CESTAT allows Cenvat Credit on Premium Paid for Group Insurance under VSS - [Reliance Industries Ltd vs Commissioner of Central Excise & Service Tax - 2022 TAXSCAN (CESTAT) 727]

In a major relief to Reliance Industries Ltd, the Customs, Excise and Service Tax Appellate Tribunal ( CESTAT ), allowed Cenvat Credit on premium paid for group insurance under Voluntary Separation Scheme (VSS). A Coram consisting of C J Mathew, Technical Member and Ajay Sharma, Judicial Member observed that “In view of the precedent decision in an identical dispute of the very same appellant, we set aside the impugned order and allow the appeal.”

Relief to Reliance Media Work, No Service Tax can be levied under BSS: CESTAT - [Reliance Mediaworks Ltd vs Commissioner of GST & Central Excise - 2022 TAXSCAN (CESTAT) 728

As a relief to Reliance Media Work ltd, the Mumbai Bench of the Customs, Excise & Service Tax Appellate Tribunal ( CESTAT ) has held that Service Tax can’t be levied under ‘Business Support Service’ (BSS). In light of the decision by the Supreme Court and the Tribunal, it was observed that no service tax can be levied on the appellant under BSS. While allowing the appeal, the Tribunal set aside the impugned order.

No Contemporaneous Imports of Goods in the Absence of Evidence, Rejection of Transaction value not valid - [WALL STREET IMPEX Vs PRINCIPAL COMMISSIONER, CUSTOMS -NEW DELHI (ACC IMPORT) -2022 TAXSCAN (CESTAT) 729]

The Delhi Bench of the Customs, Excise & Service Tax Appellate Tribunal (CESTAT) has held that no contemporaneous imports of goods in the absence of evidence and rejection of transaction value are not valid during which it was observed that, observed that as per Rule 4 the value shall be the value of contemporaneous imports of identical goods and if such a value is not found, then as per Rule 5, the value shall then be the value of contemporaneous imports of similar goods. Only if neither is available, Rule 7 can be resorted to.

Fulfilment of conditiWons on Board Circular: CESTAT allows Conversion from Free Shipping Bills to Advance Authorization Shipping Bills - [Fuso Glass India Private Limited vs Commissioner of Customs - 2022 TAXSCAN (CESTAT) 725]

The Chennai Bench of the Customs, Excise and Service Tax Appellate Tribunal (CESTAT), allowed conversion from free shipping bills to Advance Authorization shipping bills on fulfilment of conditions on Board Circular. The Tribunal of P Dinesha, Judicial Member observed that “The denial of conversion from free shipping bills to Advance Authorization shipping bills by the lower authority and the impugned order, being bad in law, are set aside.”

Service Tax not payable by Stock Broking Company on Computer-to-Computer Linkage Charges, Commission on Public Issue and Inter Settlement Charges: CESTAT - [Edelweiss Financial Advisors Limited vs Commissioner of Central Excise & ST - 2022 TAXSCAN (CESTAT) 734]

The Customs, Excise and Service Tax Appellate Tribunal ( CESTAT ), Ahmedabad Bench observed that no service tax payable by Stock Broking Company on Computer-to-Computer Linkage charges, Commission on Public Issue and Inter Settlement charges.

No Proof on Manipulating Boiling Point of SKO samples: CESTAT quashes Suspension of Customs Broker Licence - [MAT SHIPPING vs C.C.-KANDLA - 2022 TAXSCAN (CESTAT) 735]

The Ahmedabad Bench of the Customs, Excise and Service Tax Appellate Tribunal ( CESTAT ), CESTAT quashed suspension of the Customs Broker Licence on the ground that there was no proof of manipulating boiling points of samples of Superior Kerosene Oil (SKO). The MAT Shipping is the appellant in the present case.

“This dichotomy has not been clarified in the impugned order. Since all the charges essentially flow from this fundamental charge of manipulating test report therefore, the impugned order in the present stage cannot be sustained unless the above dichotomy is explained” the Tribunal noted.

No Service Tax on Construction of Complex Service in relation to Jawaharlal Nehru National Urban Renewal Mission and Rajiv Awaas Yojana: CESTAT - [M S Khurana Engineering Limited vs Commissioner of Service Tax - 2022 TAXSCAN (CESTAT) 744]

The Ahmedabad bench of Customs, Excise & Service Tax Appellate Tribunal (CESTAT) has held that Service Taxis not leviable on the Construction of complex services in relation to Jawaharlal Nehru National Urban Renewal Mission and Rajiv Awaas Yojana.

The Bench held that the construction service was provided to Jawaharlal Nehru National Urban Renewal Mission and Rajiv Awaas Yojana and the service tax is not leviable to such a project. The appeal was allowed with consequential relief.

Additional Premise is Extension of Factory: CESTAT quashes demand of Duty on Transfer of Capital Goods - [JYOTI CNC AUTOMATION PVT LTD vs C.C.E. & S.T - 2022 TAXSCAN (CESTAT) 743]

The Ahmedabad Bench of the Customs, Excise and Service Tax Appellate Tribunal (CESTAT), ruled that the additional premise is extension of factory and quashed demand of duty on transfer of capital goods and it was observed that “The additional premise is an extension of factory of the appellant and hence benefit of notification no. 67/95-CE cannot be denied to the appellant. In the circumstances, demand of duty on transfer of such capital goods on the ground that the other premise is to be treated as separate premise requiring separate registration under the Act is not tenable.”

In the same case, CESTAT also upheld the utilisation of Cenvat Credit of basic Excise Duty for Discharge of Education Cess

The bench consisting of Ramesh Nair, Judicial Member and Raju, Technical Member observed that “Since department has not preferred appeal against the said OIA and hence said order has attained finality in respect of issue of utilisation of cenvat credit of basic excise duty towards discharge of education cesses.

Entry to India for Breaking Recycling Purpose Only Not contravention to UNSC resolution, Order Prohibiting Vessel for Importation not valid - [KPG ENTERPRISE vs C.C.E. Jamnagar (prev.) -  2022 TAXSCAN (CESTAT) 745]

The Ahmedabad bench of the Customs, Excise & Service Tax Appellate Tribunal (CESTAT) has held that entry to India for Breaking Recycling Purpose Only Not contravention of UNSC resolution and Order Prohibiting Vessels from Importation is not valid.

The Tribunal stated that there is no sufficient material to substantiate the case of misstatement. While allowing the appeal, it was held that “since the vessel cannot be said to have been imported contrary to any prohibition in force, redemption fine and penalties upon the appellants imposed by the impugned order are liable to be set aside.”

No Misdeclaration under Pan Masala Packing Machines Rules, Demand of Duty not permissible - [CHANDAN TOBACCO CO vs C.C.E. & S.T - 2022 TAXSCAN (CESTAT) 747]

The Ahmedabad bench of the Customs, Excise & Service Tax Appellate Tribunal ( CESTAT ) has held that demand of duty is not permissible when no misdeclaration under Pan Masala Packing Machines Rules, Demand of duty not permissible.

While allowing the appeal, the Tribunal held that the Revenue cannot demand duty unless the orders of determination of production capacity-based duty have been reviewed and set aside the impugned Order.

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