Tax
Burden To Prove That Best Assessment By Income Tax Authorities Is Perverse Is On Assesee: Allahabad High Court
The Allahabad High Court has held that the burden to prove that the findings of best assessment done by the authorities is perverse is on the assesee. The bench of Justice Shekhar B. Saraf and Justice Praveen Kumar Giri held that “when a best assessment is done, it is for the assessee to bring on record the facts that may reveal that the findings are perverse in nature.” Appellant filed the Income Tax Appeal against the order of the Income Tax Appellate Tribunal who upheld the...
Service Tax Not Leviable On Cricket Association Clubs's Services To Its Members: CESTAT
The Bangalore Bench of Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) stated that service tax is not leviable on cricket association club services to its members, and further allowed Cenvat Credit on the LED score board. Dr. D.M. Misra (Judicial Member) and R Bhagya Devi (Technical Member) stated that the Commissioner's finding that the said LED score board has no nexus with the taxable service provided viz. Mandap Keeper service and other services is also devoid of...
Service Tax Not Leviable On Repairs Of School Building Run By Military Engineering Services: CESTAT
The Hyderabad Bench of Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has stated that service tax not leviable on repairs of school building run by military engineering services. Angad Prasad (Judicial Member) and A.K. Jyotishi (Technical Member) opined that the services rendered to Military Engineering Services (MES) was in relation to Sainik School run by them and such building cannot be used for commerce and hence repairs of such building are beyond the scope of ...
No Excise Duty On Manufacture Of Drip Irrigation System And Its Component Parts: CESTAT
The Mumbai Bench of Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has stated that no excise duty on manufacture of drip irrigation system and its component parts. S.K. Mohanty (Judicial Member) and M.M. Parthiban (Technical Member) observed that the impugned goods viz., polytubes, microtubes, HDPE pipes were used for Drip irrigation systems, the appropriate classification in terms of the CBEC circular dated 16.03.1998 would be under sub-heading no. 8424.91, and not...
Goods Used As Implants Or Rehabilitation Aids Are Eligible For Customs Duty Exemption: CESTAT
The Mumbai Bench of Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has stated that goods used as implants or rehabilitation aids are eligible for Customs Duty exemption. S.K. Mohanty (Judicial Member) and M.M. Parthiban (Technical Member) observed that “since, the implants such as repair of knee, hip and other joints, shoulder and various other parts of the body; repair of soft tissue injuries and degenerative conditions of the shoulder etc., are in the nature of...
KVAT Act | Input-Tax Credit Can Be Availed If Purchaser Has Genuine Invoices Even If Seller Fails To Remit Tax: Kerala High Court
The Kerala High Court, overruling its earlier decision in C.P. Rasheed v. State of Kerala, has held that input tax credit can be availed under the Kerala Value Added Tax Act, 2003 if the purchaser has genuine tax invoices even if the seller fails to remit tax.The bench opined that “the input tax credit can be legitimately availed by the purchasing dealer under the Kerala Value Added Tax Act, 2003, even in cases where the selling dealer failed to remit the tax due to the...
Leasing Out Land For 90 Years Against One-Time Payment Constitutes Transfer Of Immovable Property, Exempt From Service Tax: CESTAT
The New Delhi Bench of Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has stated that leasing out land for 90 years against one-time payment constitutes transfer of immovable property, exempt from service tax. Dr. Rachna Gupta (Judicial) and P.V. Subba Rao (Technical Member) were addressing the issue of whether the act of transferring the land on lease for a period of 90 years against the one-time premium giving all rights of use, possession and even sale to the developer...
Tax Weekly Round-Up: July 21 To July 27, 2025
SUPREME COURTForeign Entity Doing Business Through Temporary Premises In India Liable To Tax : Supreme Court Rejects Hyatt International's AppealCause Title: HYATT INTERNATIONAL SOUTHWEST ASIA LTD. VERSUS ADDITIONAL DIRECTOR OF INCOME TAX (and connected matters)The Supreme Court on Thursday (July 24) ruled that the existence of a Permanent Establishment (PE) is sufficient to attract tax liability for a foreign entity in India, even in the absence of exclusive possession of a fixed place of...
Section 114 AA Customs Act Applicable Only For Dummy Exports Made Only On Paper, Not Actual Export Of Goods: CESTAT
The Mumbai Bench of Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has stated that Section 114 AA Customs Act is applicable only for dummy exports made only on paper, not actual export of goods. Section 114AA of the Customs Act, 1962, penalizes the use of false or incorrect declarations, statements, or documents in any transaction related to customs business. Specifically, it applies to individuals who knowingly or intentionally make, sign, use, or cause to be made,...
Foreign Entity Doing Business Through Temporary Premises In India Liable To Tax : Supreme Court Rejects Hyatt International's Appeal
The Supreme Court on Thursday (July 24) ruled that the existence of a Permanent Establishment (PE) is sufficient to attract tax liability for a foreign entity in India, even in the absence of exclusive possession of a fixed place of business. The Court clarified that temporary or shared use of premises, when combined with administrative or operational control, is adequate to establish a PE, thereby triggering income tax liability in India.Holding so, the bench comprising Justice J.B. Pardiwala...
Karnataka High Court Directs GST Department To Establish Tracking System For Notices Sent To Taxpayers Via Email
The Karnataka High Court has directed the GST department to establish tracking system for notices sent to the taxpayers via email Justice Suraj Govindaraj stated that it is required for the department to establish a system to ascertain delivery of e-mail notices, when the said e-mail was opened and when the email was read. In this case, the assessee/petitioner has challenged the adjudication orders under 73 of CGST Act, 2017 for the period April 2020- March 2021. The assessee ...