CESTAT Rulings

Handheld Barcode Scanners not classifiable as ‘smartphone’ for cellular ancillary function; Exempt under CTH 84716050 

CESTAT Delhi holds that ‘Newland NLS Handheld Barcode Scanners’ used for scanning barcodes (1D/2D) and processing data in order to increase the efficiency of functions in supply chain mana...View More

Unutilized CENVAT-credit refund not deniable merely because credit not shown in same ST-3 quarter 

CESTAT Bangalore partially allows KPMG’s appeal on the issue of refund of service tax paid on back office services in terms of Export of Services Rules, 2005 and as per Rule 5 of CENVAT Credit R...View More

Mutual Funds units subscription not sale/purchase of securities, no section 66D exemption; Quashes credit-reversal 

CESTAT Delhi holds that “activity of subscription and redemption of units of Mutual Funds cannot be said to be an activity of sale and purchase of the securities. It would, therefore, not be an ...View More

Licence fees / user charges for stalls at railway stations by IRCTC taxable as renting-of-immovable-property 

Dismissing multiple appeals filed by IRCTC (Assessee), CESTAT, Chennai has upheld Service Tax demands under Renting of Immovable Property Service (RIPS) for the periods June 2007 to August 2010, holdi...View More

IPR transfer, a one-time taxable event; Periodic payments cannot create recurring liability 

CESTAT Chandigarh dismisses Adjudicating Authority’s view that continuous use of IPR and periodic remuneration by recipient constitute recurring taxable events for the service supplier...View More

(LB): No mechanism to transition blocked cesses into GST; Cash refund not allowed u/s 142(3) 

CESTAT Delhi (Larger Bench), convened to resolve conflicting member views on entitlement to cash refund of unutilised Education Cess (EC), Secondary & Higher Education Cess (SHEC), and Krishi Kaly...View More

Allows manufacturing units to avail CENVAT-credit distributed by service unit at HO registered as ISD 

CESTAT, Mumbai allows the manufacturing unit of Johnson and Johnson Pvt. Ltd.(Assessee) at Mulund and Aurangabad. to avail the CENVAT credit of service tax as distributed by the service unit at head o...View More

Royalty/License fees on imported components by contract-manufacturers taxable; Holds Xiaomi-India liable as ‘beneficial owner’ 

In the 124-page detailed ruling, CESTAT Chennai upholds differential duty demand plus interest on Xiaomi India by including royalty and license fees paid to IPR holders (Xiaomi China and Qualcomm Inc....View More

Classifies Omega-3 Fish Oil as ‘Inter-esterified Oil’; Drops Extended Limitation & Penalties 

CESTAT Chennai sets aside demands and penalties against Assessee, holding that “Fish Oil – Ethyl Ester” enriched with Omega-3 fatty acids is correctly classifiable under CETH 151610 ...View More

Holds ‘Holi-Balloons’ classifiable as festive-articles, not toys; Rejects Revenue’s valuation challenge 

CESTAT Chandigarh dismisses Revenue’s appeal and upholds Commissioner (Appeals)’ order classifying “Holi balloons” imported by M/s Goyal Brothers (Assessee) under CTH 9505 90 9...View More