Tax
Restriction On Levy Of Differential Rates Under Article 304 Of Constitution Doesn't Apply To Goods Imported From Outside India: Madras HC
The Madras High Court stated that Article 304 of the Constitution applies only to goods imported from other states or union territories and not to goods imported from outside India.The Division Bench consists of Chief Justice K.R. Shriram and Justice Mohammed Shaffiq looked into the case of State of Kerala and others v. Fr. William Fernandez and other, (2021) 11 SCC 705 and observed that the goods imported after having been released from customs barriers are not immune from any kind of State...
Finance Act, 1994 | Mere Non-Registration Under Service Tax Isn't Fraud Or Suppression To Justify 5 Year Limitation: Patna High Court
The Patna High Court has recently quashed a service tax demand raised against a government contractor, ruling that merely not registering for service tax could not be equated with fraud or suppression of facts warranting the application of the five-year extended limitation period under the Finance Act, 1994.The Division Bench comprising Justice Rajeev Ranjan Prasad and Justice Sourendra Pandey, observed, “the plea of the respondent that the petitioner had not taken registration of the service...
Whether Roof-Mounted Air Conditioners For Trains Attract 18% GST Or 28% GST? Delhi High Court To Decide
The Delhi High Court will soon decide the GST rate applicable to roof-mounted air conditioners of specific designs manufactured for the railways.A division bench of Justices Prathiba M. Singh and Rajneesh Kumar Gupta are seized with a petition filed by railways and aerospace technology company StesaLIT Limited, challenging a Circular issued by the Union Finance Ministry in 2024, stipulating that above said AC units shall be classified under HSN 8415 and not HSN 8607.HSN code 8415 attracts GST...
Delhi HC Sets Aside ₹12 Crore GST Demand On Exide Industries But Imposes ₹1 Lakh Cost For Laxity In Responding To Hearing Notices
The Delhi High Court has set aside a GST demand of over ₹12 crores raised on storage battery manufacturer Exide Industries, for wrongful availment of Input Tax Credit.A division bench of Justices Prathiba M. Singh and Rajneesh Kumar Gupta however imposed a cost of ₹1 lakh on the Indian multinational for “laxity” in responding to the repeated hearing notices issued by the Department.The petition was filed by the company assailing final order and Form DRC-07 issued by the Adjudicating Authority to...
S.13 Income Tax Act | Charitable Trust's Status Not Affected For Making Reasonable Payments On Services Rendered By Related Party: Delhi HC
The Delhi High Court has held that a Charitable Trust's status cannot be taken away citing violation of Section 13 of the Income Tax Act, 1961 merely because it made reasonable payment for services rendered by a related party.Ordinarily, Charitable Trusts are not allowed to make payments for the benefit of 'prohibited parties'.Section 13 states that exemptions to Charitable Trust under Section 11/12 of the Act would not be available to the extent that the said income is applied for the benefit...
S.107(6) Of CGST Act Does Not Grant Discretion To Court For Waiving Pre-Deposit At Time Of Filing Appeal: Delhi High Court
The Delhi High Court has made it clear that it has no discretion to allow a prayer seeking waiver of pre-deposit condition prescribed under Section 107(6) of the Central Goods and Services Tax Act, 2017 for preferring an appeal under the statute.In terms of Section 107(6), insofar as the admitted tax, interest or penalty is concerned, the entire amount would have to be deposited. In so far as the disputed amount is concerned, 10% of the tax would have to be deposited as a pre-deposit along with...
Send RPAD Reminders If No Reply Received After Repeated Uploading Of Notices In GST Portal: Madras High Court Tells Revenue
The Madras High Court stated that if the taxpayer is not at all participating in the proceedings, even after repeated uploading of notices and reminders in GST portal, the Department should have resorted to other mode of service, viz., Registered Post with Acknowledgement Due (RPAD), so that considerable time of officers, assessee and the Court could be saved. The court extensively referred to the provisions of the Information Technology Act and concluded, while service through portal...
Amalgamated Company Can Adjust Written Down Assets Of Constituent Companies & Claim Depreciation Without Central Govt Approval: Bombay HC
The Bombay High Court stated that amalgamated company can adjust written down of assets of amalgamating companies and claim depreciation without central government's approval. The Division Bench of Chief Justice Alok Aradhe and Justice M.S. Karnik stated that “The Tribunal was not justified in law in holding that in view of insertion of Section 72A in the Income Tax Act, 1961, the assessee (being the amalgamated company) not having obtained approval of the Central Government was not...
Service Of Notices & Orders Through Common Portal Is A Valid Mode Of Service U/S 169 Of GST Act: Madras High Court
In a recent ruling, the Madras High Court held that service of notices and orders through Common portal is a valid mode of service in terms of Section 149 of the GST Act. The bench rejected the argument that the GST portal is not a “designated computer resource of the assessee” and hence as per Sec. 13 (2) (a) (ii) of the Information Technology Act, receipt occurs only when the communication is retrieved. “Service by making it available in the common portal is a valid mode of...
Centre Imposes 12% Temporary Tariff On Certain Steel Imports, Duty Valid For 200 Days
The Government has imposed a temporary 12% safeguard duty on the import of certain non-alloy and alloy steel flat products. The safeguard duty covers products such as cold-rolled coils sheets; metallic coated steel coils and sheets; hot-rolled coils and sheets; hot rolled plate mill plates; and colour-coated coils and sheets, whether or not profiled. The duty will not be imposed on the product categories when imported into India at or above the specified import price on cost insurance...
Tax Weekly Round-Up: April 14 - April 20, 2025
SUPREME COURTDealers Cannot Claim Input Tax Credit For Purchases Linked To Exempt Sales Under UPVAT Act : Supreme CourtCase Title: NEHA ENTERPRISES VERSUS COMMISSIONER, COMMERCIAL TAX, LUCKNOW, UTTAR PRADESHCase no.: CIVIL APPEAL NO. 6553 OF 2016Emphasizing that tax statutes must be strictly construed with statutory language taking precedence over policy intent, the Supreme Court, in a case concerning the Uttar Pradesh Value Added Tax Act, 2008 (“VAT Act”), held that a dealer is not entitled to...
Supply Of Manpower To Five Hotels For Three Years Attracts Service Tax Under “Manpower Recruitment Or Supply Agency Service”: CESTAT
The New Delhi Bench of Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has stated that supply of manpower to five hotels for a period of nearly three years would clearly attract service tax under the head of “manpower recruitment or supply agency service”. The Bench of Dilip Gupta (President) and P.V. Subba Rao (Technical) has observed that, “In relation to manpower supply to five units on cost recovery basis, the Commissioner noticed that ITC had deputed employees to other...