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The Central Excise Act governs taxation on goods manufactured or produced in India, including valuation, excise duties, and Cenvat credit rules. This page provides latest judgments, case analyses, and updates from CESTAT and High Courts on interpretations of Sections 2(f), 4A, 11B.
CESTAT Chennai held electronic records inadmissible under Section 36B of the Central Excise Act for non-compliance, quashing a ₹4.08 crore duty demand and ₹2 crore penalty, stressing procedural compliance essential for digital evidence in tax disputes.
CESTAT ruled that a refund of service tax paid under a mistake of fact attracts interest at 12% per annum, superseding the earlier 6% rate. This higher rate applies to any taxpayer seeking restitution for erroneous service tax payments, enhancing compensation for delayed refunds. The decision sets a binding precedent for future service tax refund claims.
Supreme Court ruled the Central Excise Department cannot invoke the proviso to Section 11A to reopen assessments without a specific allegation of wilful suppression of valuation. The decision curtails the department’s ability to extend the limitation period, shielding job-work vehicle manufacturers from retrospective tax claims.
The Supreme Court ruled that fitting together imported CKD components at Xerox’s warehouse does not amount to ‘manufacture’ within Section 2(f) of the Central Excise Act, shielding the company from excise duty and penalty. This clarifies that mere assembly of knocked-down parts is outside the scope of central excise liability.
CESTAT Chennai rules that the extended limitation period under Cenvat Credit Rules cannot be invoked when the department was already aware of the facts. The Rs. 39,99,079 demand was set aside as time-barred, reinforcing that suppression of facts is essential for invoking the extended period.
CESTAT Mumbai rules that Section 35FF interest on pre-deposits applies to amounts deposited prior to 06.08.2014 under erstwhile provisions. The ruling clarifies retrospective applicability of interest on refunds for excise duty disputes, impacting pre-2014 deposit cases pending adjudication.
CESTAT rules that sending tax orders via speed post without confirmed delivery proof fails to satisfy statutory service requirements under Section 37C, rendering the order ineffective for limitation purposes. This sets a critical precedent for taxpayers and revenue authorities alike, mandating verifiable receipt for any official communication that triggers statutory deadlines.
CESTAT Chandigarh rules that Section 11D of the Central Excise Act, 1944 cannot be applied retrospectively, setting aside a Rs. 55,01,282 demand for the period prior to September 20, 1991. The ruling reinforces that excise duty demands under Section 11D are prospective only, impacting businesses facing retrospective tax claims.
CESTAT Ahmedabad has ruled that revenue authorities cannot sustain excise duty demands based solely on handwritten notes or unverified challans. The burden lies squarely on the department to produce concrete, corroborated evidence of clandestine removal-rejecting speculative inferences from incomplete records. This sets a vital precedent for manufacturers facing arbitrary tax assessments under the Central Excise Act.
CESTAT Chennai rules that when a contract explicitly prohibits passing on the Oil Industry Development Cess to the buyer, and documentary evidence confirms non-passing of incidence, the refund claim cannot be denied on grounds of unjust enrichment. This sets a critical precedent for oil and energy producers seeking refunds on excess cess paid due to valuation errors, reinforcing contractual intent over presumptive pass-on.
CESTAT rules that CENVAT credit on services like transportation and crushing of ore remains valid even when up to 15% of material is discarded as waste, as long as the services are directly incidental to the manufacture of final goods. This clarifies that the threshold of material yield does not disqualify input service eligibility under Rule 2(l) of CCR, benefiting mining-integrated manufacturers across steel and mineral industries.
CESTAT Chandigarh rules that once a Cenvat credit refund is sanctioned and the revenue department does not appeal, the quantum becomes final and cannot be reopened for re-deduction. This protects manufacturers from retrospective clawbacks and reinforces the principle of finality in tax adjudication, benefiting cement and capital goods industries relying on captive consumption exemptions.
CESTAT Chennai rules that cumulative pre-deposits made before the appeal, even if initially for interim relief, can satisfy the mandatory pre-deposit obligation under Section 35F if they exceed the statutory threshold. This protects taxpayers from technical dismissal of appeals and reinforces that substance over form governs compliance in tax appellate procedures.
CESTAT rules that when both taxpayer and department consistently classify goods under the same tariff heading for years, the department cannot later reassess duties retroactively - establishing a binding legitimate expectation. Penalty under Rule 26 cannot be imposed without a prior finding of confiscation, reinforcing procedural safeguards for taxpayers relying on long-standing classification practices.
CESTAT Chennai ruled that tax authorities cannot aggregate clearances from legally independent units to deny SSI exemption unless each unit receives a separate show cause notice. This upholds natural justice and prevents arbitrary aggregation, protecting small manufacturers from collective liability without individual due process.