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Excise & Customs Highlights

Legal Crux of CESTAT Kolkata's Ruling on Duty Calculation under Tobacco Packing Rules - The CESTAT's ruling confirms that the appellant's duty calculation under the 4th Proviso to Rule 9 of the Chewing Tobacco Packing Machines duty rules is correct. The Tribunal acknowledges the abatement entitlement for the non-production period between 15.03.2012 and 31.03.2012, and clarifies that any enhanced duty rate effective from 17.03.2012 is not applicable due to the discontinuation of production before this date. Thus, the actionable conclusion is clear: The appellant is not liable for the enhanced duty demand confirmed as per the incorrect calculations of the lower authority, thereby reinforcing proper duty assessment principles.

CENVAT Credit Validated by CESTAT Kolkata: Railway Receipts Continue to Hold Weight Despite Rule Changes - The CESTAT's ruling reinforces the legitimacy of CENVAT Credit claims made on the basis of railway receipts, offering clear guidance for future claims under similar circumstances. This ruling elucidates the interpretation of documentation under amended CENVAT provisions, ensuring that the transport sector, particularly utilizing Indian Railways, can rely on comprehensive and widely accepted forms of documentation in their financial accounting practices. To fortify compliance, assessees should ensure their railway receipts are complete and comply with the necessary details as outlined in Rule 9 of the CENVAT Credit Rules, 2004.

CESTAT Upholds CENVAT Credit for 100% EOU - In light of this ruling, it becomes evident that registered entities operating under the regime of CENVAT credits should maintain diligent records of eligible services and inputs procured. Timely and accurate claim submissions improve the likelihood of approvals, preserving cash flows essential for operational sustainability. Stakeholders must be vigilant in adhering to procedural requirements and appropriate documentation to mitigate any risks of disallowance.

CESTAT Rules on Admissibility of Cenvat Credit for Processes on Duty-Paid M.S. Plates - The Tribunal's ruling reaffirms the permissiveness of claiming Cenvat credit on duty-paid inputs, subjected to processing. Given that the original duty status has been solidly affirmed, businesses must ensure that they maintain comprehensive records of duty payments and processing activities to facilitate seamless credit claims. For tax management, firms must diligently monitor inter-unit transactions to curtail the risks of denial of credits in light of procedural claims raised by different units.

Denial of Notification Benefit Reversed: CESTAT Grants Amendment Under Customs Act - The ruling of CESTAT signifies a pivotal affirmation of taxpayers' rights to amend Bills of Entry under the provisions of the Customs Act, where earlier assessments remain unchallenged. Tax professionals and importers must take note of this decision to facilitate the successful claiming of notification benefits without the requisite procedural contestation that has been previously seen as mandatory.

Royalty Payments Excluded from Assessable Value of Imported Goods for Duty Calculation - The conclusion drawn from the CESTAT's ruling firmly states that royalty payments must not be included in the assessable value of imported goods for customs duty computation. Based on the majority ruling, the decision overturns the prior order and grants favor to the appellants.

Bail Denied in Gold Smuggling Case Amidst Legal Compliance Concerns - In light of the findings regarding the procedural integrity of the search and seizure operations coupled with the potential ramifications of granting bail, the regular bail petition by the petitioner is hereby denied. The denial serves not only to uphold the judicial process but also to reinforce public confidence in law enforcement efforts aimed at combatting smuggling operations.

Supreme Court Denies Relief for 588-Day Delay in Filing Appeals Against Imported Goods Classification - The decision rendered by the Supreme Court serves as a testament to the need for timely legal action in matters concerning imported goods classification. Delay in filing appeals, particularly for as long as 588 days, without sufficiently cogent explanations, undermines the integrity of the judicial process and conveys a lack of diligence on the part of the petitioners. Assessees must recognize that vigilance in adhering to filing timelines is critical and delays may compromise potential outcomes.

Bombay High Court Rules on Imposition of Interest and Penalties under IGST in Customs Tariff Act - In light of the aforementioned findings, it is concluded that:

The provisions outlined in Circular No. 16 of 2023-Customs (dated 7th June 2023) which sought to impose interest on IGST payments are invalid;
The impugned Order dated 1st August 2024, which attempted to levy interest, impose penalties, and confiscate goods, is quashed;
The amendments to Section 3(12) are explicitly prospective and shall only be effective from 16th August 2024, thus emphasizing a clear understanding of the legal obligations post-amendment.

Legal Crux of the Recovery Notice Dispute Addressed by Gauhati High Court - The Gauhati High Court's ruling affirms the petitioner’s right to seek a reconsideration of the special rate/value addition application before the Principal Commissioner. This judgment provides a clear procedural pathway for the petitioner to rectify the misdirection of the application. Consequently, it necessitates prompt action from the petitioner in filing the application, thereby enabling the potential recovery of the erroneously refunded amount contingent upon the outcome of said application.

CESTAT Reinstates Appeal Following Procedural Lapse in Time Bar Rejection - The Tribunal's decision signifies a critical instruction for procedural adherence in matters concerning timelines for appeals. This ruling not only emphasizes the necessity for comprehensive record-keeping and proof of submissions but also affirms that delays stemming from administrative processes may warrant reconsideration in the assessment of an appeal's timeliness. The matter's remand stipulates that the Commissioner must address the limitation issue comprehensively, ensuring fairness in the legal process. Assessees are advised to maintain meticulous documentation when filing appeals to mitigate risks associated with potential procedural oversights.

CESTAT Kolkata Overturns Appeal Dismissal Over CENVAT Credit on Improper Grounds - This decision by the CESTAT underscores a critical principle in the realm of CENVAT credit: the integrity of the assessment process must stay within the parameters set by the Show Cause Notice. Therefore, Appellants should ensure that their documentation and evidence in support of CENVAT credit claims are robust and directly aligned with the initial allegations to avoid unnecessary dismissal based on grounds that exceed the defined scope. Moving forward, parties engaged in similar proceedings must be vigilant about the necessity to produce relevant supporting evidence during assessments and challenge any departures from procedural norms that can compromise their appeals.

Commissioner’s Denial of CENVAT Credit on DEPB Scrips Rejected by CESTAT Bangalore: Legal Precedents Affirm Duty-Paid Status - In conclusion, it is crucial for assessees involved in similar transactional frameworks to recognize that, according to the prevailing legal interpretations, goods qualified under the DEPB scheme retain their status as duty-paid goods, allowing for valid CENVAT credit claims. Furthermore, when invoking extended periods of limitation, sufficient evidence of fact suppression must be established, failing which, such claims will not withstand scrutiny. Assessees should meticulously document all corresponding duty payments and align their filings with the established judicial precedents to safeguard against unwarranted credit denials.

Classification Dispute Regarding Imported Copper Rods – Implications of Certification Errors and Limitation Periods - The findings of the CESTAT Ahmedabad reinforce the necessity for accurate classification of imported goods based on their actual form as defined by existing laws. Stakeholders must ensure that all documentation—especially COO and Bills of Entry—are thoroughly vetted to avoid misclassification and potential penalties. Firms involved in international trade should adopt rigorous procedures to ensure transparent reporting of goods to avoid implications of suppression of facts.

Revocation of Customs Broker License Rejected; Security Deposit Forfeiture and Penalty Reduced - The CESTAT ruling underscores that revocation of a Customs Broker license and forfeiture of security deposits should not be levied lightly, especially where lack of direct collusion or clear evidence of wrongful conduct exists. The assertion that the CB cannot be held accountable for the misdeeds of exporters, as long as regulatory compliance is observed, forms a crucial precedent. The reversal on the license revocation and security deposit forfeiture substantiates the necessity of robust evidence in regulatory enforcement actions.

CESTAT Ahmedabad Decides on Importer Status Under Customs Act Amidst Disputed Exports and Expired Goods - In light of the current decision, it becomes imperative for importers to meticulously review their transaction histories, particularly when engaging in exports that could lead to complications. Explicit documentation proving knowledge (or lack thereof) regarding the status of goods is paramount. Importers should adopt stringent compliance measures to ensure they are aware of the regulatory stipulations associated with different ports and the nature of the products being imported. It is advised that importers correct their standing through proactive communication with authorities to clarify any ambiguities prior to shipment.

CESTAT Mumbai Rescinds Previous Order on FTP Violations, Calls for Re-examination of SHIS and EPCG Benefits - The CESTAT Mumbai’s ruling effectively opens the door for a renewed analysis of the applicability of the SHIS and EPCG benefits, ensuring that the provisions of the FTP are interpreted consistently and fairly. The decision emphasizes the need for original authorities to weigh all relevant policy implications thoroughly. For stakeholders, it is crucial to engage with this evolving framework, ensuring compliance and optimizing benefit claims under existing schemes.

Legal Ruling Clarifies CENVAT Credit Eligibility for Steel Items in Sugar Manufacturing - The legal determination drawn from this case underscores two vital conclusions:

The steel items integral to the construction and support of manufacturing equipment qualify as capital goods eligible for CENVAT credit, thereby allowing entities in similar sectors to claim rightful credit based on established precedents.
The tribunal's position on the extended period of limitation should serve as a cautionary tale for tax authorities, emphasizing the importance of substantiating claims of conduct justifying such an extension.
Going forward, businesses involved in sugar manufacturing or similar sectors should reassess their capital goods and materials used in production within the context of CENVAT eligibility, ensuring compliance and maximizing credit claims.

CENVAT Credit Dispute Resolved: CESTAT Bangalore Rules Against Improper Reversal Demand - The CESTAT's decision unequivocally establishes that demands for the reversal of CENVAT credit must be well-founded with specific evidence of the assessees' missteps. The tribunal reaffirmed that taxpayers who demonstrate adherence to CENVAT credit reversal mandates, particularly under complexities involving exempt services, cannot be subjected to unjustified penalties or extended limitation periods. Therefore, businesses should ensure accurate documentation and compliance with the procedural framework to safeguard against unwarranted demands.

CESTAT Bangalore Rules on Excise Duty for Installation Works - The decision clarifies that the installation of structural works such as glazing and office interiors does not fall within the ambit of "manufacture" as per the Central Excise Act. Consequently, businesses engaging in similar activities should evaluate their classifications carefully. No excise duty, interest, or penalties should be levied on these installations, as they are components of immovable property rather than standalone, marketable goods.

CESTAT Rules for Exemption of Intermediate Products in Manufacturing Process - The tribunal's ruling asserts that the appellant possesses the right to claim CENVAT credit corresponding to inputs utilized in the manufacturing of exempted intermediate products that are subsequently employed in producing dutiable final goods. Consequently, the demand against the appellant has been annulled due to the inapplicability of the extended period of limitation, reinforcing the principles around proper credit availment.

Madras High Court Upholds Mandatory Timelines for Issuance of Show Cause Notices under Customs Brokers Licensing Regulations - The Madras High Court decisively quashed the impugned show cause notice and inquiry report, affirming the necessity for strict adherence to the timelines outlined in Regulation 17(5) and (7) of the CBLR, 2018. All involved parties should take immediate note of this ruling to ensure compliance with regulatory timelines, as failure to do so can lead to the invalidation of enforcement actions taken beyond the set time limits.

CESTAT New Delhi Overturns Customs Duty Reassessment Amid Claims of Misvaluation - Based on the current ruling, it is crucial for stakeholders engaged in the export-import sector to meticulously ensure that their declared values are accurate and justified in line with the transaction value principles laid out in Section 14 of the Customs Act and the relevant Customs Valuation Rules. Companies should maintain thorough documentation of their transaction values to reinforce their compliance during customs assessments and mitigate risks of penalties or confiscations stemming from misvaluations.

Carbon and Sulphur Analyzer CS-800 Not Classifiable Under CTH 90271000 as Gas Analysis Apparatus - The CESTAT concluded that the Carbon and Sulphur Analyzer CS-800 is inappropriately classified under CTH 90271000, as its primary function entails measuring the elemental content in solid samples rather than analyzing gaseous substances. The Tribunal ruled that the appellant could challenge the classification regardless of its previous compliance, thus allowing the appeal and setting aside the prior decision made by the Commissioner (Appeals).

Legal Proceedings on Customs Broker License Revocation: Timelines Breached but Penalty Imposed - The decision made by CESTAT establishes that timelines as indicated in the Customs Broker Licensing Regulations, 2018, are not strictly mandatory but rather directory. The licensing authority’s failure to justify any delays combined with the lack of accountability assigned to the customs broker for such delays renders the revocation order unsustainable. For actionable purposes, customs brokers should ensure rigorous compliance with procedural timelines and maintain comprehensive records of correspondence with regulatory authorities to support their position in the event of procedural queries.

Legal Crux on Valuation Method for Inter-Unit Transfers Upheld by CESTAT Kolkata - In summary, CESTAT's ruling emphasized the adherence to precedents set forth in prior judgments regarding valuation methods for inter-unit transfers. It affirmed the applicability of the principle of revenue neutrality which positions the appellant's method as legally justified, ultimately rendering the imposition of the differential duty impractical. Companies engaging in similar practices should take heed of these legal confirmations to ensure compliance and safeguard against unwarranted duty demands.

CESTAT Kolkata Affirms No Recovery of Excess CENVAT Refund Post Retrospective Amendments: Clarifies Utilization Timeline - The determination made by the CESTAT establishes that where accumulated CENVAT credits have been utilized within the relevant timelines following the retrospective amendments, any attempts to recover such credits based on perceived excess claims are negated. Taxpayers should take heed of verification against accumulated credits against historical filings to ensure compliance while securing legitimate refunds.

Bail Cancellation Application Denied Amidst Prolonged Detention in Gold Smuggling Case - In alignment with the observations made, the application for the cancellation of bail is rejected as there were neither supervening circumstances nor any breaches of bail conditions evidenced. The respondent's prolonged detention prior to bail supports the decision, indicating the necessity for rigorous adherence to investigation timelines and bail rights under the law.

Delhi High Court Mandates Customs Department to Release Gold or Process Refund Following Protracted Delays - The recent ruling by the Delhi High Court underscores the critical importance of prompt action by customs authorities in resolving refund claims. The court's directive to act within a strict timeline serves as a clear reminder that failure to adhere to administrative orders can result in significant legal consequences. It is prudent for assessees to proactively monitor their customs and refund claims, ensuring compliance and timely follow-ups to prevent similar delays.

CESTAT Mumbai Affirms Non-Applicability of Central Excise Duty on Packing and Labeling of Tyre ‘O’ Rings - In light of the Tribunal's decision, the appellants are conclusively determined to be exempt from paying central excise duty on the Tyre ‘O’ rings when merely packed and labeled. It is essential for businesses involved in similar activities to carefully evaluate their manufacturing processes against the definitions provided under the Central Excise Act and ensure that no processes are misclassified that may attract unwarranted excise duties.

Amendment to guidelines issued vide Circular No. 38/2020 dated 21.08.2020.

Introduction of ‘Mode of Export of Services’ Field in eBRC Format for Services Exports with effect from May 01, 2025.

Seeks to impose safeguard duty on “Non-Alloy and Alloy Steel Flat Products”

Amendment in Notification No. 77/2023 – Customs (N.T.), dated the 20th October, 2023

Amendment in Appendix 2K (Scale of User Charges and Process for Deposit/ Refund of Application Fee/Penalty, etc) of FTP 2023

Amendment in Import Policy Condition No. 07 (i) of Chapter - 27 of Schedule-I (Import Policy) of ITC (HS), 2022

Fixation of Tariff Value of Edible Oils, Brass Scrap, Areca Nut, Gold and Silver

Seeks to amend Notification No. 61/94-Customs (N.T.) dated the 21st November, 1994

Operationalisation of DGFT 'Global Tariff and Trade' Helpdesk

Rescinding of JNCH PN No.101/2024 dated 22.11.2024 regarding Transhipment of movement of export cargo from Bangladesh to third Countries from Nhava Sheva Port by Rail or Road vide Circular No. 29/2020-Customs dated 22.06.2020-reg

Monthly Report from Development Commissioner of Special Economic Zones

Rescinding of Circular No. 29/2020-Customs dated 29.06.2020 in respect of Transhipment of Export Cargo from Bangladesh to third countries through Land Customs Stations (LCSs) to Port / Airport, in containers or closed bodied trucks

Fixation of Tariff Value of Edible Oils, Brass Scrap, Areca Nut, Gold and Silver

Constitution of Interim Board for Settlement under Sec 31A of Central Excise Act, 1944

Re-assignment of appeals pending in kolkata Zone.

Re-assignment of appeals pending in Nagpur Zone

Setting up of office for operationalising Interim Boards for Settlement

Clarification on the classification and applicable Basic Customs Duty (BCD) for Interactive Flat Panel Displays (IFPDs) and other monitors

Amendment in Notification No. 05/2019-Central Excise, dated the 6th July, 2019

Appointment of Common Adjudicating Authority

Amendment in Notification No. 50/2017-Customs, dated the 30th June, 2017

Safe custody of detained/ seized/ Confiscated cargo and inspection of Unclaimed/ Uncleared/ Abandoned Cargo – Reg.

Amendment in Appendix 4B of Handbook of Procedures, 2023

Implementation of the Export Entry (Post export conversion in relation to instrument-based scheme) Regulations, 2025

Applicability of SCOMET on Polyethylene Glycol CAS No. 25322-68-3

Export Entry (Post export conversion in relation to instrument based scheme) Regulations, 2025

Amendment in import policy and policy condition of Roasted Areca Nuts falling under ITC (HS) Code 20081920 of Chapter-20 of ITC (HS), 2022, Schedule-I (Import Policy)

Inclusion of Land Custom Stations Darranga as Food Import Entry Points in List "A" of Appendix-V to Schedule-I (Import Policy), ITC (HS), 2022 in sync with relevant FSSAI Notification

Corrigendum - Notification No. 18/2025- (N.T.), dated 28th March, 2025

Supply of essential commodities to the Republic of Maldives during 2025-26

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HC : Kerala High Court Clarifies Requirement for Separate Show Cause Notices in GST Assessments for Different Years

AAR : Maharashtra AAR Rules on GST Rate Consistency for Residential Projects Under Different Promoters

SC : Supreme Court Dismisses Revenue’s SLP Citing Delay, Upholds Jharkhand HC's Jurisdiction Call on Excise Appeals

SC : Revenue's Appeal Against CESTAT Chennai Ruling on Educational Institution Construction Service Tax Exemption

SC : Supreme Court Affirms High Court Ruling on Interest Calculation Date for Excise Refunds, Establishing Application Date as Critical Factor

CESTAT : CENVAT Credit Reversal Not Required for Electrical Cables Supplying to Mega Power Projects: CESTAT Ahmedabad Ruling

CESTAT : CESTAT Chennai Quashes Service Tax Demand on Composite Works Contracts: Upholds Supreme Court Rulings

CESTAT : CESTAT Delhi Upholds Exportation of Pan Masala and Gutkha by Pan Parag India, Dismissing Allegations of Fraudulent Practices

CESTAT : CESTAT Kolkata Rules Out Applicability of Test Report Across Multiple Bill of Entries

HC : Kerala High Court Denies Provisional Release of Seized Vehicle Transporting White Kerosene Due to Confiscation Orders and Document Deficiencies

HC : Kerala High Court Clarifies Appellate Authority's Obligations Under CGST Act: Appeals Cannot Be Dismissed for Non-Appearance

HC : Allahabad HC Affirms Validity of Water and Sewerage Tax on Schools Despite Exemptions on Building Tax

SC : West Bengal's Woes: SC Upholds HC Directive for GST Compliance in Industrial Incentive Scheme

SC : Trigger-Sprayer Classification Validated by Supreme Court: Review Petition Dismissed

HC : Kerala High Court Upholds Mutuality Principle, Invalidates GST Taxation on IMA's Services to Members

HC : Rebate Claim Processing Ordered Despite Initial Filing Error by Assessee

HC : Kerala High Court Grants Interim Relief in GSTR Mismatch Dispute; Addresses Human Error in Tax Filings

HC : Madras HC Dismisses Writ Petition on Triple Assessment Orders, Highlights Links to Non-Existent Dealers in Input Tax Credit Claims

AAR : Maharashtra AAR Rules Renting Residential Properties for Government Hostel Exempt from GST

AAR : AAR Determines Geometry Compass Box Supply as Mixed Supply Taxable at 18% GST

AAR : Maharashtra AAR Declares Assignment of Leasehold Land to Hyundai Taxable Under GST, Stipulating 18% Rate

HC : Telangana HC Invalidates GST Show Cause Notice, Upholding Principles of Natural Justice

AAR : Maharashtra AAR Determines Lear Automotive’s Employee Subsidies for Canteen and Transport Subject to GST, Blocks Input Tax Credit

AAR : Maharashtra AAR Rules Canteen Services to Employees Are Taxable Supplies; Denies Input Tax Credit for Transportation Facilities

HC : Ruling on Entitlement of Railway Contractors to ITC Benefits Upheld by Madras HC

HC : Jharkhand High Court Overturns Rejection of Coal Cess Refund for Steel Manufacturer, Citing Misinterpretation of CGST Framework

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