CESTAT Rulings


Notional-loading excludable in case of inter-unit transfer of goods for captive consumption

CESTAT set aside the order adding notional profit margin for determining the assessable value of the finished products in case of inter-unit transfer of goods for captive consumption wherein the job-w...View More

Reimbursement of expenses from service recipient as an agent not liable to Service Tax

CESTAT, Delhi allows Assessee’s appeal by way of remand holding that reimbursement of expenses incurred by the Assessee on account of service recipient working as pure agent for his principals, ...View More

Denies exemption on ‘pre-fabricated canopy’ supplied to oil companies, erected at site

CESTAT Delhi holds that the pre-fabricated canopies supplied by assessee to oil companies is not entitled for the benefit of Notification No. 12/2012-CE dated March 17, 2012 as well as previous Notifi...View More

Demand on ‘merchant-banking services’ w.r.t. FCBs floated in International Capital Market hit by limitation

CESTAT Hyderabad upholds demand of tax on ‘merchant banking services’ with respect to the floating of securities namely foreign currencies convertible bonds(FCCB) for the arrangements made...View More

Kimberly Process Certificate (Certificate of Origin) must be respected; sets-aside order banning import of rough diamonds

Ahmedabad CESTAT sets aside order confiscating the rough diamonds imported by Assessee from its subsidiary company, CD Jewels, UAE; Holds that mere issuance of invoice after November 17, 2010 cannot b...View More

'Foreclosure-charges' collected by Banks not taxable, consideration flows at desire of 'promisor'

CESTAT Chennai LB sitting in reference holds that foreclosure charges collected by the banks and non-banking financial companies (NBFC’s) on premature termination of loans are not leviable to se...View More

Quashes SCN demanding service-tax on ECB facility obtained by Adani-Power SEZ, extended period invocation

Ahmedabad CESTAT quashes show cause notice issued u/s 73 (1) demanding service tax on ECB facility obtained for setting up power project in SEZ where the assessee had deposited the entire tax with int...View More

Discharge certificate under SVLDRS scheme deemed issued upon Designated Authority's failure, disposes appeal

CESTAT Delhi holds that it is deemed that the discharge certificate (Form-4) has been issued to the assessee under Sabka Vishwas (Legacy Dispute Resolution) Scheme, 2019 (SVLDR Scheme); Notes that rec...View More

Absent physical verification by DRI officers, quashes demand on imported material 'shortage'

CESTAT partially allows assessee’s appeal, sets aside demand on shortage of imported materials (fabrics) however upholds duty demand on goods re-imported in consequence to the rejection by the f...View More

Quashes ‘presumptive’ demand on clandestine removal, estimation cannot take place of evidence

CESTAT Delhi sets-aside order confirming demand on alleged clandestine removal of goods, holds that adjudicating authority has based the decision on assumptions, surmises and in total ignorance of doc...View More