Customs, Excise and Service Tax Appellate Tribunal (CESTAT) Weekly Flashback for the period 23 February to 1 March 2025.
‘Intellectual Property’ Right Not A Provision For Incentivizing Innovation, CESTAT Remands Back To Decide Refund Of Accumulated CENVAT Credit
Case Title: Getz Pharma Research Pvt Ltd Versus Commissioner of Service Tax
The Mumbai Bench of Customs, Excise and Service Tax Appellate Tribunal (CESTAT) has remanded the matter Back to decide refund of accumulated cenvat credit.
The Bench of Ajay Sharma (Judicial Member) and C J Mathew (Technical Member) has observed that the first appellate authority had not appreciated the issue in dispute before it which is essential in determining applicability of rule 4 of Place of Provision of Services Rules, 2012. Instead, the first appellate authority ruled on the taxability of the appellant as ‘intermediary’, under rule 9 of Place of Provision of Services Rules, 2012, which was neither proposed in show cause notice nor proposed in appeal of the jurisdictional Commissioner of Service Tax.
Obligation Under Cenvat Credit Rules Can’t Be Transferred To Recipient Of Credit: CESTAT
Case Title: Hindustan Coca-Cola Beverages Pvt Ltd Versus Commissioner of CGST & Customs
In a major relief to Hindustan Coca-Cola, the Mumbai Bench of Customs, Excise and Service Tax Appellate Tribunal (CESTAT) has held that the obligation under rule 3(1) of CENVAT Credit Rules, 2004 cannot be transferred to the recipient of credit under rule 7 of CENVAT Credit Rules, 2004.
The bench of C J Mathew (Technical Member) has observed that the appellant, Hindustan Coca-Cola has merely utilized the credit and, to the extent that rule 3(4) of CENVAT Credit Rules, 2004 has not been shown to have been breached, is not concerned with the source of the credit.
Tribunal Not Competent To Alter Show Cause Notice: CESTAT
Case Title: Principal Commissioner of Customs (Preventive) Versus Blue Ribbon Emporium
The Mumbai Bench of Customs, Excise and Service Tax Appellate Tribunal (CESTAT) has held that the tribunal is not competent to alter the show cause notice.
The bench of C J Mathew (Technical Member) and Ajay Sharma (Judicial Member) while dismissing the customs department’s appeal held that tribunal is not competent to alter the show cause notice or, remand the matter back to an authority other than the one which passed the order.
No Export Duty Payable On Indian Refractory Mortar: CESTAT
Case Title: Commissioner of Customs (Port), Kolkata Versus M/s Alliance International
The Kolkata Bench of Customs, Excise and Service Tax Appellate Tribunal (CESTAT) has held that no export duty payable on Indian Refractory Mortar.
The bench of Ashok Jindal (Judicial Member) and K. Anpazhakan (Technical Member) has observed that the goods, Indian Refractory Mortar cannot be classified under CTH 2610, therefore, no export duty is payable by the respondent/assessee.
No Service Tax On E-Governance, E-Sewa Services Outsourced By Govt.: CESTAT
Case Title: M/s. CMS Computers Ltd. Versus Commissioner of Central GST, Mumbai East
The Mumbai Bench of Customs, Excise and Service Tax Appellate Tribunal (CESTAT) has held that service tax is not payable on bill printing services, card personalization services provided to leading telecom companies and banks, e-Governance and e-Sewa services outsourced by the government.
The bench of Ajay Sharma (Judicial Member) and Anil G. Shakkarwar (Technical Member) has observed that the activities facilitated by the appellant therein such as issue of birth and death certificate, marriage certificate, vehicle registration etc are undoubtedly in the nature of the statutory functions of the government and CBE & C vide circular No.96/07/2007-ST, dated 23.8.2007 has clarified that services which are in the nature of statutory duties of the Government are not to be treated as services provided for consideration and hence no service tax will be chargeable on the same, therefore same is not covered under the ‘Business Auxiliary Service’.
No GTA Liability When Transmission Of Electricity Is Exempted From Service Tax: CESTAT
Case Title: M/s Brahmaputra River Valley Trading (P) Ltd. Versus Commissioner of Central Excise & Service Tax, Guwahati
The Kolkata Bench of Customs, Excise and Service Tax Appellate Tribunal (CESTAT) has held that no Goods Transport Agency (GTA) liability when transmission of electricity is exempted from service tax.
The bench of Ashok Jindal, (Judicial Member) and K. Anpazhakan (Technical Member) has observed that rural electrification involves services related to electricity transmission, which are exempt from service tax under GTA services. As per Notification No. 25/2012-ST, transmission and distribution of power are not taxable.
Reimbursement Of Technical Personnel Salary Not Manpower Supply Services: CESTAT
Case Title: M/s. Assam Gas Company Limited Versus Commissioner of Central Excise & Service Tax
The Kolkata Bench of Customs, Excise and Service Tax Appellate Tribunal (CESTAT) has held that reimbursement of Technical personnel salary by JV Partners does not tantamount to manpower supply services.
