High Court Rulings

Cannot dismiss appeal for non-deposit of prescribed duty/penalty within limitation period

HC overrules Single Judge Bench, holds dismissal of appeal by Commissioner (Appeals) on ground that prescribed mandatory pre-deposit of 7.5% penalty was made after expiry of limitation as ‘unsus...View More

Upholds SCN issuance, 100% penalty despite suo-moto duty & interest payment by assessee 

HC dismisses assessee's appeal, upholds issuance of show cause notice (SCN) for imposition of penalty u/s 11AC of Central Excise Act, 1944 (Act) despite voluntary payment of duty by assessee equal to ...View More

Demurrage/rent charges waiver not automatic, allows 'prohibited goods' re-export subject to payment thereof

HC holds that assessee cannot re-export consignment of prohibited goods, i.e. health products barred u/s 22 of Food Safety and Standards Act, 2006, confiscated u/s 111(d) of Customs Act, 1962 (CA) wit...View More

Follows Division Bench ratio, allows CST reimbursement on inter-state EOU/SEZ purchase 

HC allows assessee’s writ, upholds benefit of CST reimbursement under Foreign Trade Policy (FTP) 2009-14 on inter-state purchases made from EOUs/SEZs/EHTP/STPI areas; Holds, issue no longer re-i...View More

Mould designing/tooling cost reimbursed by customer part of “sale-price”, SC ratio distinguished

HC holds that mould designing charges and tooling cost reimbursed to assessee by its customer for manufacturing automotive seating systems and components shall form part of “sale price” de...View More

Overrules CESTAT; Commissioner (Appeals) empowered to grant benefit of penalty reduction u/s 11AC

HC overrules CESTAT, upholds grant of reduced penalty option u/s 11AC of Central Excise Act by Commissioner (Appeals); Rejects Revenue stand that since matter pertained to clandestine removal of goods...View More

Absent statutory provisions, grant of 'warehousing charges' refund by CESTAT unjustified

HC overrules CESTAT, finds refund of ‘warehousing charges’ upon payment of redemption fine and penalty in respect of confiscated goods unjustified, absent provision in Customs Act or any o...View More

Interprets Rule 9(1); Allows manufacturer service tax credit against supplementary invoice & TR-6 challan 

HC allows CENVAT credit on the basis of supplementary invoice issued by service provider and TR-6 challan (pertaining to service tax paid under reverse charge mechanism) to manufacturer of pig iron, s...View More

Grants exemption treating 'demo car' as "capital goods" of automobile dealer 

HC extends VAT exemption on sale of ‘demo car’ u/s 6(3) of Delhi VAT Act treating same as “capital goods” used for business of selling cars; Refers to Division Bench ruling in ...View More

Restricting input credit utilisation upto month / quarter end, ultra vires CENVAT scheme

HC holds first proviso to Rule 3(4) of CENVAT Credit Rules, 2004 (CCR) restricting CENVAT credit utilization upto balance available on last day of month / quarter for purpose of discharging excise dut...View More