Confiscation and duty recovery quashed where licensing records show export obligation discharged; customs lacks jurisdiction absent licence annulment ...
FOB is Incoterm reflecting exporter's transaction value; declared shipping bill value not automatically confiscable under s.113(i), s.125, ss.114(i) a...
The CESTAT allowed the appellant's appeal, set aside the impugned order and quashed demands for service tax, interest and penalties insofar as they related to forfeited earnest money, security deposits, fines and penal charges. The Tribunal held such forfeitures are penal in nature and lack nexus with any taxable "consideration" for the declared service under section 66E(e) of the Finance Act, 1994; they do not constitute consideration for agreeing to refrain or tolerate an act and therefore are not includible in taxable value. The adjudicating authorities were rebuked for disregarding precedent, characterized as judicial indiscipline, and were warned to exercise greater care in future proceedings.
The CESTAT allowed the appellant's appeal, set aside the impugned order and quashed demands for service tax, interest and penalties insofar as they related to forfeited earnest money, security deposits, fines and penal charges. The Tribunal held such forfeitures are penal in nature and lack nexus with any taxable "consideration" for the declared service under section 66E(e) of the Finance Act, 1994; they do not constitute consideration for agreeing to refrain or tolerate an act and therefore are not includible in taxable value. The adjudicating authorities were rebuked for disregarding precedent, characterized as judicial indiscipline, and were warned to exercise greater care in future proceedings.
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