Tax
GST TRAN-I Credit Can Be Revised Based On Manually Filed Excise Return: Bombay High Court
The Bombay High Court held that GST TRAN-I credit can be revised based on manually filed ER-1 Return. Justices M.S. Sonak and Jitendra Jain stated that “there were technical issues with respect to revising TRAN-1 and non-availability of electronic mode to revise excise return and it is only after directions issued by the Supreme Court in the case of Union of India vs. Filco Trade Centre Pvt. Ltd. 2022 that the assessee was able to revise its TRAN-1/TRAN-2 by filing manual revised...
GST Notice U/S 79(1)(c) Can't Be Issued Directly To Bank; Must Be Served To Actual Taxpayer: Bombay High Court
The Bombay High Court held that a GST notice under Section 79(1)(c) of the CGST Act can't be issued directly to the bank. Justices M.S. Sonak and Jitendra Jain observed that the notice under Section 79(1)(c) of the CGST Act was not addressed to the assessee but directly to the bank. “Where such notice is served on a person, he can prove to the satisfaction of the officer issuing the notice that the money demanded or any part thereof was not due to the person in default or that he...
Customs Act | Mere Purchase Of Gold Without Bill Not Enough To Prove Gold Smuggling: CESTAT
The New Delhi Bench of Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has stated that mere purchase of gold without bill not enough to prove gold smuggling. Dr. Rachna Gupta (Judicial Member) opined that the mere act of purchasing gold without bill is highly insufficient to confirm the grave allegations of conspiring the act of smuggling of gold. The order imposing penalty on the appellants and confiscating their money is not sustainable. Section 121 of Customs Act,...
Service Tax To Be Paid By Distributor, Not By Theatre Owner For Film Screening: CESTAT
The New Delhi Bench of Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has stated that service tax has to be paid by the distributor under “Copy Right Service” for transfer of right by licence to screen the film in the theatre of the owner. Binu Tamta (Judicial Member) and Hemambika R. Priya (Technical Member) stated that “the purpose of the agreement and the intention of the parties is for screening of the film in the theatre, which cannot be treated as “Renting of...
GST Payable On Rent For Hotels Hired By Govt For Security Forces, Liability Of Home Dept To Reimburse: J&K High Court
The Jammu and Kashmir High Court has held that the Department of Home is liable to reimburse GST in addition to the fixed rent to hotel owners whose accommodations have been requisitioned for housing security forces.The petitioner had filed the petition seeking a direction that the tax amount be paid or reimbursed separately by the Home Department over and above the fixed rent. A bench of Justices Sanjay Parihar and Sanjeev Kumar observed that while the rental rates were fixed much earlier, the...
Section 80IA Income Tax Act | Internal CUP Method Is Most Appropriate For ALP Determination In Captive Power Transactions: Calcutta High Court
The Calcutta High Court held that Internal CUP (Comparable Uncontrolled Price) method is most appropriate for ALP (Arm's Length Price) determination in captive power transactions. Chief Justice T.S. Sivagnanam and Justice Chaitali Chatterjee (Das) was addressing issue of whether the Internal Comparable Uncontrolled Price (CUP) method adopted by the assessee was right in determining the Arm's Length Price (ALP) for power supplied by the assessee's Captive Power Plants (CPPs) to ...
Insurance Claim Received On Dead Horses Is Capital Receipt, Not Taxable As Income U/S 41(1): Bombay High Court
The Bombay High Court held that insurance claim received on dead horses is capital receipt, not taxable as income under Section 41(1) Of Income Tax Act. The bench opined that horses in respect of which the insurance claim was received were Assessee's capital assets and that therefore insurance receipt arising therefrom could only have been considered as capital receipt, not chargeable to tax. The question before the bench consists of Chief Justice Alok Aradhe and Justice Sandeep...
[Income Tax Act] Amount Indicated In P&L Account As Provision For Doubtful Debts/Advances Cannot Be Treated As "Reserve" U/S 115JA: Bombay HC
The Bombay High Court has ruled that a provision for doubtful debts cannot be treated as either a "reserve" or a "provision for liability" under clauses (b) or (c) of the Explanation to Section 115JA of the Income Tax Act, 1961, and thus cannot be added back to the book profits for the purpose of minimum alternate tax (MAT). The Court accordingly overturned the addition of ₹2.49 crore made by the Assessing Officer and upheld by the Tribunal.A Division Bench of Chief Justice Alok Aradhe and...
No Service Tax On 'Upfront Fee' Received By DMRC From Customers Under Concession Agreement: CESTAT
The New Delhi Bench of Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has stated that no service tax on 'upfront fee' received by DMRC (Delhi Metro Rail Corporation) from customers under concession agreement. Binu Tamta (Judicial Member) and Hemambika R. Priya (Technical Member) was addressing the issue of whether the “upfront fee” received by the Delhi Metro Rail Corporation Ltd. from various customers under the Concession Agreements entered prior to 1.7.2010 is exigible...
Goods Not Prohibited Under Foreign Trade Policy Still Require Valid IEC; Import Using Bogus Codes Impermissible: CESTAT
The New Delhi Bench of Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has stated that goods not prohibited under foreign trade policy still require valid IEC (Importer Exporter Codes), import using bogus codes is impermissible. Dr. Rachna Gupta (Judicial Member) and P.V. Subba Rao (Technical Member) observed that there is nothing in the FTDR Act (The Foreign Trade (Development and Regulation) Act, 1992 which provides for any IEC holder to lend his IEC to somebody else or...
'Was Returning From Mecca': Delhi High Court Orders Customs To Release Woman's Gold Jewellery, Says 24 Kt Purity Not Grounds For Seizure
The Delhi High Court has ordered the Customs Department to release the gold jewellery which was seized from a Muslim woman while she was returning from a religious pilgrimage to Mecca.A division bench of Justices Prathiba M. Singh and Rajneesh Kumar Gupta observed that it is normal practice in our country for women to wear basic jewellery and the same cannot be seized by the Customs Department only on the ground that it is of 24 carat purity.“The Court has heard the parties and has considered...
Demand U/S 73A Of Finance Act Unsustainable Without Proof Of Service Tax Collection: CESTAT
The New Delhi Bench of Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has stated that demand under Section 73A Of Finance Act unsustainable without proof of service tax collection. Dr. Rachna Gupta (Judicial Member) and Hemambika R. Priya (Technical Member) stated that “the invoice does not indicate any service tax collection by the assessee. The assessee had merely collected VAT and AAI levy from their clients, and no amount representing Service tax has been collected....