This weekly analytically summarizes the key stories of the Customs, Excise and Service Tax Appellate Tribunal (CESTAT ) reported at taxscan.in, from May 18, 2024 to May 22, 2024. The Delhi of Customs, Excise and Service Tax Appellate Tribunal ( CESTAT ) has held that expenses related to advertising and marketing are expenses are not includable in value of imported goods since the activities were carried out in India for the sale of the goods in India which amounts to post-import.
The two-member bench of Justice Dilip Gupta (President) and P.V. Subba Rao (Technical Member) has observed that the reasoning of the Principal Commissioner in the order that since the appellant was required and obliged to undertake marketing and advertising in terms of the agreements with the foreign suppliers, the price of the imported goods cannot be said to be the sole consideration within the meaning of Section 14 of the Customs Act.
In a significant case, the Allahabad bench of the Customs, Excise & Service Tax Appellate Tribunal ( CESTAT ) has held that service tax is not demandable on toll charges collected in an independent capacity as a contractor. The tribunal found that the assessee obtained the right to collect toll under a contract and it has neither rendered any service to NHAI nor has acted as a commission agent for NHAI. During scrutiny of records of the Appellants, it was observed that they had availed Cenvat credit in respect of service tax paid on various input services like teleph.
