CESTAT India tax and duty rulings

The Customs, Excise and Service Tax Appellate Tribunal (CESTAT) has issued several rulings in India concerning excise duty, service tax, and customs duty liabilities.

In Mumbai, the tribunal addressed whether components supplied directly to customer sites for boiler and pollution control equipment installations are subject to central excise duty. It also ruled that commissions from Vodafone SIM card and recharge voucher distributorships are exempt from service tax. More recently, the Mumbai CESTAT allowed an appeal for a customs broker after authorities failed to prove the firm's involvement in an alleged license violation.

In New Delhi, the tribunal granted a service tax refund to Raj Construction for payments made during residential construction projects, classifying the payment as a revenue deposit made under a mistake of law. Recent rulings in New Delhi also favored DSS Image Tech Pvt Ltd, where the tribunal qualified commissions from foreign suppliers as an export of service, noting that foreign suppliers were the actual recipients rather than Indian purchasers. The tribunal further ruled that service tax paid by mistake on non-taxable construction activities is refundable without being subject to limitation periods or the principle of unjust enrichment.

In Chennai, CESTAT rejected a Countervailing Duty demand against ICMC Corporation Limited regarding laptops imported for a government free laptop scheme, stating that authorities lack the statutory authority to assess undeclared retail sale prices for items intended for free distribution. The Chennai bench also denied a ₹7.51 lakh rebate claim for RBA Exports Ltd, citing the mandatory nature of the 20% threshold for documentary rebates.

In Kerala, the Bangalore Bench of CESTAT set aside an order involving Apex Constructions, ruling that no service tax is applicable on works contracts where VAT was paid and the contracts were executed prior to June 2007.