CESTAT Rulings

Credit reversal not required for services in J&K, unused equipment at subscriber's premises

CESTAT sets aside demand of CENVAT credit w.r.t. services provided by assessee in State of J&K for the period for which service tax has been paid on output service despite fact that same was not d...View More

Upholds EOU-DTA sale of machine upon duty payment at concessional rate on transaction value

CESTAT upholds sale of obsolete Die casting machine by 100% EOU to DTA buyer holding EPCG licence on payment of 5% excise duty on ‘transaction value’; Perusing content of letter issued by ...View More

Suo-moto credit of duty paid inadvertently has no 'legal sanctity', denies such adjustment

CESTAT dismisses assessee’s appeal, holds that suo-moto CENVAT credit availment of inadvertently paid excise duty twice is not legally tenable; Opines that, there is no statutory mandate for dou...View More

Assessment proceedings absent 'speaking order' untenable, upholds classification of ‘toy-rocker’ as ‘plastic-toy’

CESTAT allows assessee’s appeal, upholds classification of ‘toy rocker’ under Heading No. 95030090 of First Schedule to Customs Tariff Act, 1975 (CTA); Citing Revenue’s failure...View More

One-to-one co-relation of input services with export not required, allows refund to 100% EOU

CESTAT allows refund under Rule 5 of CENVAT Credit Rules, 2004 (CCR) to 100% EOU engaged in providing Banking and Other Financial Services (BoFS); Accepts assessee’s plea that, rejection of refu...View More

Valuation-Rules inapplicable for assessing goods sold from depot where discount known at factory

CESTAT dismisses Revenue’s challenge to finalization of assessment on actual transaction value of goods sold at 'depot' which were cleared on ‘stock transfer’ basis from factory by r...View More

Allows exclusion of reimbursements subject to production of 'documentary evidence', remands matter

CESTAT allows Revenue's appeal by remanding matter to lower authority, directs computation of actual service tax liability of the assessee after giving due allowances to amounts claimed as reimburseme...View More

Quashes demand under Rule 6(3) on 40% non-taxable component in 'catering service'

CESTAT allows assessee's appeal, quashes demand on 40% non-taxable component of ‘outdoor catering’ service determined in terms of Rule 2C of Service Tax (Determination of Value) Rules, 200...View More

Sub-contractor liable to service tax despite discharge of tax by main contractor

CESTAT Larger Bench (LB) holds a sub-contractor liable to Service Tax even if the main contractor has discharged liability on the work assigned to sub-contractor, overrules decisions taking a contrary...View More

'Marketing Division' transferred as 'slump-sale' along with 'trade-marks', not ‘Franchise’ service

CESTAT quashes demand under ‘Franchise’ service as defined u/s 65 (105)(zze) of Finance Act, 1994 in respect of sale of marketing division of nutraceutical business for consideration of Rs...View More