CESTAT Rulings


Peremptory Circular imposing penalty for errors in import manifest, contrary to law

CESTAT upholds adjudication order, allows amendment to bill of lading for adding consignee name despite no mention of consignee in import manifest, observing that Section 30 of Customs Act empowers pr...View More

Canteen Store Department constitutes 'institutional consumer'; Supplies assessable at "transaction value" 

Clearance of goods in bulk for further distribution / supply to ‘Canteen Stores Department’ (CSD) assessable on the basis of ‘transaction value’ u/s 4, not 'Maximum Retail Pric...View More

'Freight' non-taxable where goods cleared to own site adopting 'cost construction' valuation 

CESTAT holds that freight is not includible in assessable value where assessee clears pipes and fittings to own site for pipeline construction under composite contract and valuation is done in terms o...View More

Cannot deny credit without notice / order, but suo-moto restoration of reversed amount erroneous

Mere observations in assessment of returns without challenge to MODVAT credit entitlement, insufficient to debar assessee from availing credit, however, suo moto re-credit of reversed entry amounts to...View More

Allows exemption on 'Saffron' imported under transferred DFIA; Revenue's 'actual user' plea unsustainable 

CESTAT allows duty free import of Saffron as “Food Flavour” under transferred Duty Free Import Authorizations (DFIAs) for use in export goods viz. Biscuits; Rejects Revenue contention that...View More

LB to decide "tax" deductibility of 10% reversal from exempted goods 

Third Member refers matter to Larger Bench (LB) to decide whether 10% of price of exempted goods reversible in respect of common inputs in terms of Rule 6(3)(b) of CENVAT Credit Rules, 2004 (CCR) can ...View More

'Time bound', 'beta' software not identical to Fully Packaged software; Rule 4 valuation inapplicable 

CESTAT rejects valuation of time bound software (trials / demos) and beta software imported from related parties taking into consideration price of Fully Packaged Product (FPP) software under Rule 4 o...View More

Cannot deny SSI exemption for mere use of third party brand name

CESTAT holds that exemption accorded to small scale industries under Notification No. 8/2001-CE cannot be denied because brand name used by assessee is registered with another person; Referring to SC ...View More

'Related-party' imports assessable at greatest aggregate sale-price to institutional buyer, not MRP

CESTAT rejects valuation adopted by Deputy Commissioner, Special Valuation Branch by way of backward calculation of related party imports, viz. making deductions from the ‘retail sale price&rsqu...View More

Spot billing of electricity meters for MSEDCL taxable as "BAS", not "IT service"

CESTAT holds that activity of spot-billing of electricity meters for Maharashtra State Electricity Distribution Company Ltd. (MSEDCL) is taxable as “business auxiliary service” under claus...View More