CESTAT Rulings

No exemption to EOU on DTA clearances absent evidence of imported consumables usage

CESTAT observes that excise duty exemption under Notification No. 8/97-CE / 23/2003-CE would be available to an EOU where imported consumables are used in the manufacture of final products that are cl...View More

Rejects Revenue's narrow 'input service' interpretation post April 2011; Tax paid on OPEs creditable

CESTAT allows refund under Rule 5 of CENVAT Credit Rules, 2004 (CCR) of various services such as event management, convention, sponsorship, works contract, business auxiliary and training, holds that ...View More

No outward transportation credit where goods cleared FOR directly to customer's premises

CESTAT disallows CENVAT credit of outward transportation services despite inclusion of cost thereof in assessable value of finished goods; Notes that assessee, cement manufacturer, was clearing goods ...View More

Allows reduction in penalty imposed under Rule 15 for wrongly availed CENVAT credit

CESTAT allows benefit of reduced penalty to assessee, holds that provisions of Section 11AC(1)(b) of Central Excise Act are applicable to penalty imposed under Rule 15(1) of CENVAT Credit Rules post M...View More

Advertisement expenses towards soda marketing not creditable; Rejects assessee's 'brand promotion' plea

CESTAT disallows CENVAT credit of advertisement services availed, as not amounting to “input services” for rendition of output services of promotion and marketing of IMFL of United Spirits...View More

Allows utilisation of credit availed on mall construction before April 2011, towards renting services

CESTAT allows utilization of CENVAT credit taken on input services used in construction of retail mall before April 2011, against taxable output service of ‘renting of immovable property’ ...View More

Renting equipment with operator not taxable as "supply of tangible goods" service

CESTAT sets aside service tax demand u/s 65(105)(zzzzj) of Finance Act on renting of heavy duty cranes to parties engaged in construction of Metro; Notes that assessee had supplied such equipment with...View More

'Joint-development rights' non-taxable where land value included in villa's price for buyers

Consideration received from landowners in the form of development rights thereon for construction of ‘villas’ under Joint Development Agreement (JDA) not liable to service tax separately w...View More

CENVAT credit reversible on net quantity, considering used inputs previously written-off

CESTAT sets aside adjudication order recovering CENVAT credit for operational quantity of inputs written off in the books of account, absent consideration of quantity written back; Perusing Rule 3(5B)...View More

Larger bench mandates applicability of 'limitation' for refund of tax paid mistakenly 

CESTAT Larger bench rules 2-1 on applicability of limitation as prescribed u/s 11B of Central Excise Act in case of refund of service tax paid mistakenly; Notes that assessee’s refund claim, in ...View More