CESTAT Weekly Overview


This weekly roundup analytically summarizes the top stories related to the Customs, Excise and Service Tax Appeals Tribunal (CESTAT) reported on Taxscan.in over the past week, 6-12 August 2022.

The Customs, Excise and Service Taxes Appeal Tribunal (CESTAT), Ahmedabad bench, has upheld the punishment imposed on those allegedly involved in smuggling gold from the UAE using a foreign company. “Therefore, the same is also not necessary for any interference. It is established from the records that Shri Nareshbhai Savaliya orchestrated the whole mode of smuggling gold bullion by concealing it in the embroidery machine exported by his foreign company M/s Pali Overseas Trading Co., FZC, UAE to India. He had made the necessary financial arrangements to import machines for M/s Ambaji Prints. Furthermore, Shri Ramsehbhai Patel facilitated and abetted Shri Nareshbhai Savaliye in his nefarious activities by allowing his company M/s Pali Overseas, UAE and M/s Ambaji Prints in India to be used for smuggling gold in embroidery machines. The department has produced sufficient evidence to establish that the two appellants were conspirators in the smuggling of goods,” the Tribunal said.

The Customs, Excise and Service Tax Appeals Tribunal (CESTAT), Mumbai, granted benefit to Small Factor Pluggable (SFP) under Notification 24/2005Cus to Reliance Jio Infocomm. The bench consisting of Judicial Member SK Mohanty and Technical Member P Anjani Kumar said that “Therefore, I consider that the disputed goods, namely SFPs, can be classified as part of telecommunications equipment, except namely the Ethernet switch falling under CTH 8517 7090 and are therefore entitled to the benefit of Notification 24/2005-Cus of 01.03.2005 as claimed by the Appellant.

The Mumbai Customs, Excise and Service Tax (ITAT) Appeal Tribunal has granted claims for cash refunds of unused CENVAT credit during the pre-GST regime. The Coram of Mr. Suvendu Kumar Pati, Member (Judicial) observed that according to article 11 of the CPC, if a remedy is sought from the Court of Justice and it is not expressly granted, it is deemed to have been refused. Therefore, the appellant is fully entitled to appeal to the Tribunal against the alleged refusal and to obtain the relief to which he is otherwise also entitled.

The Customs, Excise and Service Tax Appeals Tribunal (CESTAT) Allahabad revokes the extended statute of limitations under Section 73(1) of the Finance Act as there is no was no deliberate intention on the part of the assessee in the late filing of ST Back. The panel composed of Judge Dilip Gupta, President and P Anjani Kumar, Technical Member, observed that “the confirmation of the claim for the period beyond the normal limitation period by invoking the proviso clause of Article 73 (1 ) of the finance law cannot be maintained. However, as stated by the appellant’s learned lawyer, the confirmation of the request for the period included in the normal period is maintained.”

The Kolkata Customs, Excise and Service Tax Appeal Tribunal (CESTAT) quashed a year-long proceeding against the assessee and ruled that SCN’s proceeding until its finality against the appraisee failing to complete within a reasonable time should be invalidated. The Tribunal further stated that “if the procedure does not conclude within a reasonable time, then it is flawed”.

The Kolkata Bench of the Customs, Excise and Service Tax Appeals Tribunal has ruled that GTA service credit can be allowed from place of removal to place of removal. It was established law that GTA credit could only be used up to the moving location and not from the moving location, head office could not issue credit without having ISD registration, and the credit had to be distributed proportionally to all units.

Customs, Excise and Service Tax Appeal Tribunal (CESTAT), Kolkata granted relief to Indian Steel and Wire Products Ltd on the grounds that the goods and wire rods were cleared for payment of duty on the value fixed by TISCO. The bench consisting of Sanjiv Srivastava, Technical Member and P Dinesha, Judicial Member, observed that “without question in the present case, the goods and the wire rod have been cleared for payment of duty on the value fixed by TISCO for which the appellants performed the work work.Since the retained value was the clearance of the goods as set by TISCO for Tisco’s customer, it would have taken into account all waste, including the value of scrap and scrap retained by appellants. All of the items entering into the value would therefore have been part of the rateable value of these permits. It is not true that labor charges were removed to the extent of the value of scrap and scrap in the present case, as the goods have been cleared at the actual value determined by TISCO.”

The Customs, Excise and Services Taxes (CESTAT) Appeal Tribunal, Ahmedabad Bench, has upheld the benefit of duty exemption on the import of aircraft for non-scheduled (passenger) services. The Tribunal observed that the division bench in the King Rotors case had no basis in considering that the decision of the first division bench in the Sameer Gehlot case had been rendered per incuriam, since it was also not pointed out that the provisions of a law or of a judicial authority of a binding nature had been ignored. The Coram of Mr. Justice Dilip Gupta, President, Mr. Ramesh Nair, Member (Judicial) and Mr. Raju, Member (Technical) argued that “the King Rotors Division Bench was not right to consider that the decision of the Court of Sameer Gehlot was rendered by incuriam”

The reliance on retracted statements, documents retrieved from a computer without following due process is not valid, was therefore upheld by the Customs, Excise and Service Tax Appeals Tribunal (CESTAT), Mumbai.

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