The Indirect Tax Weekly Flashback for the period 08 to 14 December 2024.
Table of Contents
Delhi High Court
Delhi High Court Grants Status-Quo On Mid-Term Review Of Tariff Rate Quota For Concessional Gold Import Under India-UAE Bilateral Trade Agreement
In a significant victory for bullion importers from UAE under India UAE CEPA (Bilateral Trade Agreement), the Delhi High Court in a batch of writ petitions filed by Gold Importers (Petitioners) grants status-quo on the Mid-term Review of Tariff Rate Quota (TRQ) provided for concessional import of Gold under India-UAE Comprehensive Economic Partnership Agreement (CEPA).Â
The bench of Justice Sanjeev Narula directed the Directorate General of Foreign Trade (DGFT) to hear individual Petitioners and take decision within 3 weeks regarding TRQ allocation after considering facts of each case. In the meanwhile current TRQ allocations are maintained until a decision is made following the review process.
Bombay High Court
Bombay High Court Grants Anticipatory Bail To Person Accused Of Illegal Faulty Import Of Old Laptops & CPUs Worth Rs. 4 Crores
The Bombay High Court has granted anticipatory bail to person accused of illegal faulty import of old laptops & CPUs worth Rs. 4 crores.
The bench of Justice Manish Pitale has observed that the goods that were seized, were meant for delivery to the entity at Delhi i.e. M/s. S. S. Overseas. There does not appear to be any material brought to the notice of this Court to indicate that the goods were actually meant for delivery to the applicant or his entity i.e. M/s. ACJ Computronix.
Kerala High Court
90 Days Period Prescribed Under Regulation 17(1) Of Customs Brokers Licensing Regulations 2018 Is Not Mandatory: Kerala High Court
The Kerala High Court has held that the 90 Days period prescribed under Regulation 17(1) of Customs Brokers Licensing Regulations 2018 is not mandatory.
The bench of Justice A.K.Jayasankaran Nambiar and Justice Easwaran S. has observed that as per sub-Regulation (1) to Regulation 17 of the Customs Brokers Licensing Regulations, 2018, the Commissioner of Customs to have issued notice in writing to the Customs broker within a period of ninety days from the date of receipt of the offence report stating the grounds on which it is proposed to revoke the licence is directory and not mandatory.
CESTAT
Higher Discounts Can’t Be Excluded From Determination Of Assessable Value Under Central Excise Act: CESTAT
The Ahmedabad bench of Customs, Excise and Service Tax Appellate Tribunal (CESTAT) in the case of JSL Industries Limited Versus Commissioner of Central Excise & ST, Anand has held that the higher discounts cannot be excluded from determination of assessable value under Central Excise Act.
CESTAT Quashes Order Revoking Customs Broker Licence For Non-Adherence With The Time-Line By Licencing Authority
The Mumbai Bench of Customs, Excise and Service Tax Appellate Tribunal (CESTAT) in the case of M D Ruparel & Sons Versus Principal Commissioner of Customs (General) has quashed the order revoking customs broker licence for non-adherence with the time-line by licensing authority.
Amount Spend On Advertisement Of Outlets Not Includable In Value Of Franchise Services Received From Overseas Franchisors: CESTAT
The Delhi bench of Customs, Excise and Service Tax Appellate Tribunal (CESTAT) in the case of Devyani International Limited Versus Commissioner of Service Tax has held that the amount spent on advertisement of outlets is not includable in value of franchise services received from overseas franchisors.
CESTAT Restricts Addition Shown Under ‘Add.Recov.Freight’ In Assessable Value To 20% Of CPT Value Shown In Invoices
The Delhi Bench of Customs, Excise and Service Tax Appellate Tribunal (CESTAT) in the case of IPM India Wholesale Trading Private Limited Versus Principal Commissioner Of Customs restricted addition of amount shown under ‘add.recov.freight’ in assessable value to 20% of Carriage Paid To (CPT) value shown in invoices.
The bench of Justice Dilip Gupta (President) and P. V. Subba Rao (Technical Member) has observed that it is not towards air freight and air freight has already been included in the CPT price, then, this amount cannot be included in the assessable value at all as there is no assertion by either side that it represents some other cost which is includable in the assessable value as per rule 10. This will reduce the duty payable on the goods.
CESTAT Quashes Order Revoking Customs Broker License For Delay In Inquiry Proceedings
The Mumbai Bench of Customs, Excise and Service Tax Appellate Tribunal (CESTAT) in the case of Akbarali Mohemedali Mukadam Versus Principal Commissioner of Customs quashed the order revoking customs broker license for delay in inquiry proceedings.
No Misdeclaration Under Customs Act: CESTAT Quashes Confiscation And Penalty Order Against Suzlon Energy
The Mumbai Bench of Customs, Excise and Service Tax Appellate Tribunal (CESTAT) in the case of Suzlon Energy Ltd Versus Commissioner of Customs has quashed the order of confiscation and imposition of penalty against Suzlon Energy as there was no misdeclaration under Customs Act.
Issue Of Time Bar Can Be Entertained In Rectification Of Mistake Application : CESTAT
The Ahmedabad Bench of Customs Excise and Service Tax Appellate Tribunal (CESTAT) in the case of Lyka Labs Ltd Versus Commissioner held that the issue of time bar can be entertained in the rectification of a mistake application.
The bench of Ramesh Nair (Judicial Member) and C L Mahar (Technical Member) has observed that the appellant has a prima facie case of time bar, however, since the appellant are not contesting the payment of Cenvat Credit of Rs.60,15,116/- paid under Rule 6(3) of Cenvat Credit Rules, 2004, the said payment was mentioned, however it is clear that the entire case was time barred and for this reason only, the entire penalty was also set aside.
No Service Tax On Incentive Received For Sale Of Vehicles : CESTAT
The Delhi Bench of Customs, Excise and Service Tax Appellate Tribunal (CESTAT) has held that no service tax on incentive on sale of vehicles as it is not a business auxiliary service.
The bench of Binu Tamta (Judicial Member) and Rajeev Tandon (Technical Member) has observed that no liability to Service Tax on activity relating to sale of spare parts for the car, how per se the activity relating to car sales could be taken as one leviable to Service Tax.
No Service Tax On Buying And Selling Of Cargo Space : CESTAT
The Delhi Bench of Customs, Excise and Service Tax Appellate Tribunal (CESTAT) has held that no service tax is payable on buying and selling of cargo space.
The bench of Binu Tamta (Judicial Member) and Rajeev Tandon (Technical Member) has observed that when the appellant is acting on a principal to principal basis, as regards purchase and selling of space from shipping line/airline and selling to importers/exporters we are of the view that the said act would not amount to an activity liable to Service Tax.
Excise Duty Evasion Not Proved; CESTAT Quashes Duty Demand, Penalty And Interest Against BPCL
The Mumbai Bench of Customs, Excise and Service Tax Appellate Tribunal (CESTAT) has quashed duty demand, penalty and interest against Bharat Petroleum Corporation Ltd. (BPCL) as the department failed to prove excise duty evasion.
No Excise Duty Payable On Animal Feed Supplements: CESTAT
The Mumbai Bench of Customs, Excise and Service Tax Appellate Tribunal (CESTAT) has held that no excise duty payable on animal feed supplements.
The bench of Suvendu Kumar Pati (Judicial Member) and Anil G. Shakkarwar (Technical Member) has observed that the animal feed supplements were used for growth treatment, maintaining and removing certain deficiencies from the animals and safeguarding their health and they were held to be classifiable under Heading 2302 which is now restructured to 2309.
CESTAT Stays Order Quashing Confiscating Of Smuggled Gold Citing Irreparable Loss To Customs Dept.
The Hyderabad Bench of Customs, excise and Service Tax Appellate Tribunal (CESTAT) has stayed the order quashing confiscation of smuggled gold citing irreparable loss to customs department.
The bench of A.K. Jyotishi (Technical Member) and Angad Prasad (Judicial Member) have observed that the gold in question has already been sent to the Mint for further process as per extant procedure and it is not presently with the department. Moreover, the fact that if the order is not stayed, then effectively the very purpose of filing of appeals by the department will be lost as when the appeals are decided and in case it is in their favour, the gold itself will no longer be available.
