Tax Cases Weekly Round-Up: 29 January To 4 February 2023

Supreme Court S.153A Income Tax Act| Can Assessments Be Reopened If No Incriminating Material Is Found During Search? Supreme Court Reserves Judgment Case Title : PR. COMMISSIONER OF INCOME TAX CENTRAL v. ABHISAR BUILDWELL P. LTD The Supreme Court on Thursday reserved its judgment on whether in an assessment under section 153A of the Income Tax Act, besides the incriminating material found during search, such materials which the Assessing Officer has on hand and the third party...

Rajasthan Housing Board, A Govt. Authority - Services Exempted From GST: AAR

The Rajasthan Authority for Advance Ruling (AAR) has held that services provided by the Rajasthan Housing Board in relation to any function entrusted to a municipality under Article 243 W of the Constitution are exempt from GST.The two-member bench of Umesh Kumar Garg and M.S. Kavia has observed that the Rajasthan Housing Board is covered under the definition of "government authority."The applicant, Rajasthan Housing Board (RHB), was established on February 24, 1970, by the Rajasthan Housing...

Affiliation Provided By Kota University To Its Constituent Colleges For Imparting Education Is A Supply, Attracts GST: Rajasthan AAR

The Rajasthan Authority of Advance Ruling (AAR) has observed that affiliation provided by Kota University to its constituent colleges for imparting education is a supply and taxable under GST.The two-member bench of Umesh Kumar Garg and M. S. Kavia has observed that the affiliation services provided by Kota University enable the institution to conduct the course or programme and do not relate to the admission of students to the course or programme or the conduct of examinations for admission to...

Raula Gundi Is A Chewing Tobacco Without Lime Tube, Attracts 28% GST: AAR

The Orissa Authority for Advance Ruling (AAR) has held that "Raula Gundi," which is "chewing tobacco without lime tubes," attracts 28% GST with a 160% Compensation Cess.The two members of the bench, G.K. Pati and P.K. Mohanty have observed that "Raula Gundi," i.e., chewable gundi, is "chewing tobacco," the principal or predominant ingredient of which is tobacco.The applicant is in the business of manufacturing "Raula Gundi" (Chewable Gundi, its final product) and supplying it to various betel...

GST ITC Not Available On ​​Goods And Services Used For Construction Of A Pipeline Laid Outside The Factory Premises: AAR

The Maharashtra Authority of Advance Ruling (AAR) has held that Input Tax Credit (ITC) is not available on goods and services used for the construction of a pipeline laid outside the factory premises.The two-member bench of M. Rammohan Rao and T.R. Ramnani has observed that, as per the explanation to Section 17 of the GST Act, "plant and machinery" does not include a pipeline laid outside the factory premises.The applicant, Mumbai Aviation Fuel Farm Facility Private Limited (MAFFPL), is in the...

Supply of Tata Garbage Tipper Vehicle To Municipalities Attracts 28% GST: AAR

The Maharashtra Authority of Advance Ruling (AAR) has held that the supply of Tata garbage tipper vehicles to Municipalities shall attract 28% GST.The two-member bench of M. Rammohan Rao and T.R. Ramnani has observed that garbage tipper vehicles can be used for the transportation of goods. The starting words of Entry 8704 are "Motor Vehicles for the Transport of Goods." Thus, the rate of tax applicable shall be 28%; as only refrigerated vehicles are taxable at 18%; and all trucks covered under...

18% GST Payable On Glaze Gels: AAR

The Maharashtra Authority of Advance Ruling (AAR) has held that 18% GST is payable on glaze gels.The two-member bench of M. Rammohan Rao and T.R. Ramnani has observed that while sugar-baked confectionery is directly sold to ultimate end users for consumption, glaze gel is not consumed by end consumers, rather its product is used by cake manufacturers as a filling between sponge layers of cakes.The applicant manufactures glaze gels and markets them to bakeries all across India. The glaze gel is...

Transfer Of Monetary Proceeds By IVL India To ILV Sweden Attracts IGST Under RCM: AAR

The Maharashtra Authority of Advance Ruling (AAR) has ruled that the transfer of monetary proceeds by IVL India to the applicant IVL Sweden will be liable for payment of integrated goods and services tax under the reverse charge mechanism.The two-member bench of M. Rammohan Rao and T.R. Ramnani has observed that other than the service provided by the applicant to the Municipal Corporation of Greater Mumbai (MCGM), there is a very definite service being provided by IVL Sweden, located outside...

Tax Cases Weekly Round-Up: 11 December to 17 December 2022

Supreme Court Income Tax Dept. Can't Initiate Reassessment Proceedings During The Pendency Of The Rectification Proceedings: Supreme Court Case Title: S.M. Overseas (P) Ltd. Versus CIT The Supreme Court has held that the income tax department cannot initiate the reassessment proceedings during the pendency of the rectification proceedings. The division bench of Justice M.R. Shah and Justice C.T. Ravikumar has observed that the Punjab and Haryana High Court has committed a ...

18% GST Is Payable On Work Contract Service Of Constructing Warehouse And Cold Storage Godown: AAR

The Telangana Authority of Advance Ruling (AAR) has ruled that 18% GST is payable on work contract services for constructing warehouses and cold storage godowns for Telangana State Industrial Infrastructure Corporation Limited (TSIICL), which will rent out the facilities.The two-member bench of S.V. Kasi Visweswara Rao and Sahil Inamdar has observed that TSIICL is a government entity. However, the original notification No. 11/2017 applied a concessional rate of tax to government entities and...

Tax Cases Weekly Round-Up: 04 December To 10 December 2022

Supreme Court Concessional Rate Of Sales Tax Not Applicable On Oxygen As It Is Not A Raw Material For Manufacture Of Steel: Supreme Court Case Title: State of Jharkhand and others Versus Linde India Limited and Another The Supreme Court has held that the main function of oxygen in manufacturing steel is to reduce the carbon content; therefore, it can be considered a refining agent but not a raw material, so the concessional rate of sales tax is not available on oxygen. The...

RCM Not Applicable On Reimbursement Of Expenses Paid On Behalf Of Company At Actuals Incurred By The Employee Staff Who Is Also A Whole-Time Director: AAR

The Karnataka Authority for Advance Ruling (AAR) has held that the reverse charge mechanism (RCM) is not applicable to reimbursement of expenses paid on behalf of the company at actuals that are incurred by the employee staff, who is also a whole-time director of the company.The two-member bench of M.P. Ravi Prasad and Kiran Reddy T. has observed that reimbursement of expenses at an actual cost that is incurred by the employee staff on behalf of the company is not subject to tax.The applicant is...