NCLT Kochi Order “Preposterous” And “Untenable” Exceeding Jurisdiction In Declaring Tax Assessment Order Void: Kerala High Court

While allowing a Writ Petition, the Kerala High Court bench of Justice Dinesh Kumar Singh recently observed that an Order passed by the National Company Law Tribunal ('NCLT') Kochi Bench was 'preposterous' and 'untenable'. NCLT Kochi had held an Assessment Order by Kerala Value Added Tax ('KVAT') Works Contract Authorities against Albana Engineering (India) Pvt. Ltd. (Respondent 2) to be void ab initio in violation of Section 14(1)(a) of the Insolvency and Bankruptcy Code, 2016. ...

GSTN Issues Advisory On Payment Through Credit Card/Debit Card And UPI

The Goods and Service Tax Network (GSTN) has issued an advisory on payment through a credit card (CC) or debit card (DC) and the Unified Payments Interface (UPI).To facilitate payment through a credit card (CC) or debit card (DC) and the Unified Payments Interface (UPI), two new facilities of payment have now been provided under e-payment in addition to net banking.Payment through CC/DC/UPI can be made through Kotak Mahindra Bank, irrespective of the CC/DC issued by any Indian bank. Other banks...

GSTN Issues Advisory On Payment Through Credit Card/Debit Card And UPI

The Goods and Service Tax Network (GSTN) has issued an advisory on payment through a credit card (CC) or debit card (DC) and the Unified Payments Interface (UPI).To facilitate payment through a credit card (CC) or debit card (DC) and the Unified Payments Interface (UPI), two new facilities of payment have now been provided under e-payment in addition to net banking.Payment through CC/DC/UPI can be made through Kotak Mahindra Bank, irrespective of the CC/DC issued by any Indian bank. Other banks...

Re-Sellers Of Machine Adopted Same Classification As Seller: Kerala High Court Quashes Penalty Under KVAT Act

The Kerala High Court has quashed the penalty under the Kerala Value Added Tax (KVAT) Act and held that re-sellers of machines have not wilfully classified machines under the wrong head and have adopted the same classification as the seller.The bench of Justice Dinesh Kumar Singh has observed that penalty proceedings have to be initiated when there is a willful or contumacious act on the part of the assessee to evade payment of the correct tax. The petitioners had reason to adopt the...

Hiring Of Motor Vehicle Or Cranes Is Not 'Sale Of Goods' If Control Over Equipment Is Retained By Contractor, VAT Can't Be Levied: Supreme Court

The Supreme Court has held that the hiring of motor vehicles/cranes from a contractor is a service and would not attract Sales Tax or Value Added Tax (VAT) assuming the transaction to be sale of goods. The Court clarified that transfer of right to use the goods not only includes possession but also control over goods by the user. If the control over the goods remains with the contractor during the hire period, then it cannot be termed as sale of goods and only service tax can be levied. The...

Coconut Oil Sold By Amway As Hair Oil, Not Classifiable As Edible Oil Under DVAT Act: Delhi High Court

The Delhi High Court has held that coconut oil sold by Amway as a hair oil cannot be classified as edible oil under the DVAT Act.The bench of Justice Vibhu Bakhru and Justice Amit Mahajan, while ruling in favour of the department, observed that the coconut oil is sold by the appellant in small packs, is displayed in the category of hair care, the manner in which it is to be applied to hair, and the purpose for which it is purchased by the consumer leaves no manner of doubt that the coconut oil...

Bihar VAT Act | Penalty Imposable U/S 56(4)(B) On Account Of Clerical Mistake In Mentioning Of Invoice Number In Suvidha Form: Patna High Court

Patna High Court has ruled that penalty is imposable under section 56(4)(b) of the Bihar Value Added Tax Act, 2005 (Bihar VAT Act) on account of clerical mistake in mentioning of invoice number in SUVIDHA Form.The above ruling came in a case filed by the petitioner, M/s Ceat Ltd. engaged in the manufacture and sale of tyres, tubes and flaps who was concerned with a penalty order passed under Section 60(4) (b) read with Section 56(4) (b) of the Bihar Value Added Tax Act, 2005 after detention of a...

Bihar Entry Tax Act | Adjustment Of Entry Tax Paid On Damaged Cement Against VAT Liability Not Admissible: Patna High Court

In affirming the directive of the Commercial Tax Tribunal, the Patna High Court ruled that the adjustment of entry tax paid on damaged cement is not permissible under the Bihar Tax on Entry of Goods into Local Areas for Consumption, Use, or Sale therein Act, 1993. The court reiterated and upheld the tribunal's decision, reinforcing that the provisions of the aforementioned act do not allow for the adjustment of entry tax in the case of damaged cement.The above ruling came in an appeal arising...

Agreement To Provide Manpower For Maintenance Is Contract Of Service And Not A Sale Under MVAT Act: Bombay High Court

The Bombay High Court has held that an agreement to provide manpower to perform maintenance is a contract of service and not a sale contract under the MVAT Act.The bench of Justice K. R. Shriram and Justice Neela Gokhale has observed that the pith and substance of the contract or true nature of the transaction show that the contract is a contract for service simpliciter and is not a works contract or composite contract consisting of two contracts, one for service and one for sale, but is an...

UP VAT Act | Enhancement Of Turnover Not A Necessary Consequence To Rejection Of Books Of Accounts: Allahabad High Court

The Allahabad High Court has held that turnover cannot be enhanced merely based on rejection of books of accounts. There has to be material as to suppression of turnover by the assesee to indicate evasion of tax.Relying on various judgments of the Allahabad High Court, Justice Piyush Agrawal held “Once the findings of fact has been recorded in favour of the petitioner, there is no cogent reason for enhancing the turnover. The tribunal was not justified in confirming the enhancement of turnover...

Rejection Of Books Of Accounts Under UPVAT Act Will Not Necessarily Lead To Rejection Of Books Under Central Sales Tax Act: Allahabad HC Reiterates

The Allahabad High Court has reiterated that in absence of any material on record, rejection of books of accounts under local laws cannot be the sole ground for rejection of books of accounts under Central Sales Tax Act.“Merely because books of account under local sales have been rejected, the same will not necessarily be the ground for rejecting the books of account under Central Sales Tax Act also in the absence of any cogent material available on record,” held Justice Piyush Agrawal....

Kerala High Court Rejects Assessee ’s Claim For Service Tax Refund To Meet VAT Demand On Pest Control Contract

The Kerala High Court has rejected the assessee's claim for a service tax refund to meet the VAT demand on the pest control contract.The bench of Justice Anu Sivaraman has observed that the claim of the petitioner that the service tax authorities must be directed to meet the demand for VAT, if any, found payable by the petitioner cannot be accepted.The petitioner or assessee is in the business of pest control. As per the assessee, pest control falls under the category of a service contract and...