Topic
Exemption notifications under Indian tax laws specify conditions under which goods or services are exempt from duties like GST, central excise, or service tax, often tied to specific usage, classification, or supply chains.
CESTAT Kolkata rules that contract date prior to 01.03.2015 qualifies for Service Tax exemption under Notification No. 25/2012, setting aside Rs. 23 lakh demand.
CESTAT Chennai rules that non-air-conditioned restaurant services sourced from a common kitchen are exempt from service tax if clearly demarcated from AC sections. The ruling underscores strict compliance with Notification No. 03/2013-ST, impacting restaurant operators with mixed seating arrangements.
CESTAT Chandigarh has ruled that services related to railway infrastructure qualify for exemption under Notification 25/2012 regardless of whether the project serves public or private interests, clarifying that the exemption is not contingent on ownership or end-use. This decision shields project consultants and agents from service tax liability in railway development, offering critical relief to private contractors and public-sector partners alike.
CESTAT Ahmedabad clarifies that hot-rolled stainless steel pattas/pattis are eligible for nil excise duty under Sr. No. 203 of Notification 12/2012-CE, even when no process beyond hot rolling is applied. This resolves long-standing ambiguity for manufacturers, affirming that cold rolling is the only excluded step - not mere slitting or shaping - significantly impacting SS flat product manufacturers across Gujarat and beyond.
CESTAT Hyderabad denied customs duty exemption to Durgabai Deshmukh Hospital for failing to fulfill mandatory conditions: providing free treatment to 40% of outpatients and reserving 10% of beds for low-income patients. The ruling reinforces that exemption benefits are strictly conditional, and non-compliance triggers retrospective duty demand and confiscation - a critical warning for charitable hospitals relying on duty waivers.
CESTAT rules that failure to meet a procedural condition under a customs exemption notification does not automatically trigger duty demand, provided the underlying objective of the condition has been achieved. This shields compliant importers from punitive demands when technical lapses don't undermine the exemption's intent, reinforcing proportionality in customs enforcement.
When tax authorities drop a demand entirely, deposits made under protest must be refunded without being barred by the one-year limitation under Section 11B. This ruling protects businesses from being penalized for complying with investigative demands while preserving their legal rights, setting a critical precedent for service tax and customs taxpayers across India.
CESTAT Chennai rules that adding toileting functionality to a wheelchair does not reclassify it as a commode chair under HSN 9402, as long as mobility remains its essential purpose. This clarifies that assistive devices combining multiple health functions retain exemption eligibility under Notification 12/2012-Cus. if their primary design serves mobility for persons with disabilities.
The Supreme Court clarifies that excise duty exemptions for Naphtha in fertilizer manufacture hinge on the 'intended use' declared at procurement, not its eventual application. Extended limitation under the Act cannot be invoked without proof of deliberate suppression, particularly where revenue neutrality exists due to subsidies.
CESTAT Mumbai rules that Special Additional Duty (SAD) exemption under Notification 45/2005 applies to stock transfers from Free Trade Warehousing Zones (FTWZ) to Domestic Tariff Areas (DTA) even if VAT is payable on final sale. The tribunal also bars invocation of the extended limitation period without legal basis, reinforcing compliance clarity for importers and manufacturers.
The Karnataka High Court ruled that GST exemption under Notification 41/2017 is contingent on direct supply to the registered recipient or their registered warehouse. Delivery to third parties-even at the recipient’s instruction-disqualifies the supplier from the concessional rate, underscoring the strict compliance required for tax exemptions under GST law.
The CETAT holds that cleaning and sanitation services provided to government hospitals fall under exemption Notification 25/2012-ST, clarifying statutory interpretation and limiting extended demand periods.
CESTAT Hyderabad holds that crushing, screening, and washing of manganese ore constitute manufacture under Chapter Note 4, disqualifying it from CVD exemption under Notification No. 4/2006-CE.