Tax
S. 245A Income Tax Act | Kerala High Court Allows Settlement Application Filed Beyond Cutoff Date, Citing SC's COVID Limitation Order
The Kerala High Court has allowed the settlement application under Section 245A of the Income Tax Act filed beyond cutoff date, while citing Supreme Court's COVID limitation order. Justices A.K. Jayasankaran Nambiar and P.M. Manoj referred to the order of Supreme Court in MA. Nos.665 of 2021 [In Re Cognizance For Extension Of Limitation] and stated that the assessee had filed the application for settlement on 17.03.2022, which is well within the time granted by the Supreme Court...
Appeal On Taxability Including Point Of Limitation Doesn't Lie Before HC U/S 35G Of Central Excise Act: Delhi High Court
The Delhi High Court has reiterated that an appeal from CESTAT under the Central Excise Act 1944 involving the issue of taxability will lie before the Supreme Court under Section 35L.A division bench of Justices Prathiba M. Singh and Rajneesh Kumar Gupta ruled that such an appeal, even on a limited point of limitation, will not lie before the High Court under Section 35G. It observed,“Even if the question of limitation has been raised, the Court has to go into the merits of the matter after a...
Service Of Notice On Adult Member Of Noticee Is Valid U/S 153 Of Customs Act, 1962: Kerala High Court
The Kerala High Court stated that service of notice on the adult member of noticee is valid under Section 153 Of Customs Act, 1962. Section 153 of the Customs Act, 1962, outlines the modes of service for notices, orders, summons, and other communications under the Act and its rules. Justice Ziyad Rahman A.A. stated that “the contentions that the assessee was denied a proper opportunity to contest the matter cannot be accepted. The notice was served upon the assessee through the...
Customs Cannot Rely On S.122A To Deny Personal Hearing Mandatory U/S 28(8) Of Customs Act: Kerala High Court
The Kerala High Court stated that customs cannot rely on Sec. 122A to deny personal hearing mandatory under Section 28(8) of the Customs Act. Justice Ziyad Rahman A.A. after analysing Section 28(8) of the Customs Act observed that it is evident that, as far as personal hearing is concerned, it is made mandatory as per the provision. Since this is a special provision deals with the issue on hand, the reliance placed by the department upon Section 122A, which is a general provision,...
Payments Made To AWS For Cloud Computing Services Not Taxable: Delhi High Court
The Delhi High Court has held that payments made to Amazon Web Services (AWS) for cloud computing services do not qualify as “royalty.” The bench, comprising Justice Vibhu Bakhru and Justice Tejas Karia, upheld the Income Tax Appellate Tribunal's (ITAT) decision which held that such payments are not taxable as royalties or fees for technical services (FTS). The Court referred to earlier judgments to emphasize the difference between transferring intellectual property rights and simply...
CESTAT Quashes Service Tax Demand Based Solely On Income Tax Data In Form 26AS
The New Delhi Bench of Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has stated that the service tax demand cannot be based solely on Income Tax Data in Form 26AS without establishing receipt of consideration. The Bench of Dr. Rachna Gupta (Judicial Member) stated that “Revenue cannot raise the demand on the basis of difference in the figures reflected in the ST-3 returns and those reflected in Form 26AS without examining the reasons for said difference and without...
Notional Cost Of Maruti's Free Designs Supplied To Vendors Not Dutiable Under Central Excise: CESTAT
The New Delhi Bench of Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has stated that notional cost of Maruti's free designs supplied to vendors not dutiable under Central Excise. The Bench of Justice Dilip Gupta (President) and P.V. Subba Rao (Technical Member) was addressing the issue whether the notional cost of drawings and designs supplied free of cost by Maruti to the vendor should be included in the assessable value of parts or components manufactured by vendor and...
Construction Sub-Contractor Cannot Escape Service Tax Liability When Main Contractor Is Taxable: CESTAT
The New Delhi Bench of Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has stated that construction sub-contractor cannot escape service tax liability when main contractor is taxable. The Bench of Binu Tamta (Judicial Member) and Hemambika R. Priya (Technical Member) has stated that the construction of residential complexes was not exempt from service tax duty. Hence, the sub-contractors were liable to discharge their service tax liability on such services provided by them...
Customs Act | Bonafide Declaration Of Value Of Goods Can't Be Treated As Suppression Merely For Being Incorrect: CESTAT
The New Delhi Bench of Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has stated that bonafide declaration of value of goods can't be treated as suppression merely for being incorrect. The Bench of Justice Dilip Gupta (President) and Hemambika R. Priya (Technical Member) has observed that the declaration of the value of goods was a bonafide declaration and merely because it is ultimately found to be incorrect will not mean that the valuation was with a bad motive not...
HIV Test Kits Qualify As Life-Saving Diagnostic Kits; Eligible For Customs Duty Exemption: CESTAT
The New Delhi Bench of Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has stated that HIV-VL test kits qualify as life-saving diagnostic kits and is eligible for customs duty exemption. The Bench of Justice Dilip Gupta (President) and P.V. Subba Rao (Technical Member) has observed that the HIV-VL test kits are “life-saving diagnostic kits” used for detection and prognosis of HIV-virus in a human body. “These kits not only detect the presence of HIV infection, but...
Reconstituted GSTAT Selection Committee Has Power To Restart Process Afresh: Orissa High Court
The Orissa High Court held that the reconstituted GSTAT (Central Goods and Services Tax Appellate Tribunal) selection committee has the authority to restart the entire appointment process. “…….Mere offering the candidature in a public employment does not create indefeasible or inchoate right into the appointment. Even a person, whose name is included in the select list, cannot claim a vested right on appointment. It is within the prerogative of the Committee or the Appointing...
Customs Department Bound By DGFT's Classification Of Capital Goods Under EPCG Scheme: Madras High Court
The Madras High Court stated that customs department bound by DGFT's classification of capital goods under EPCG scheme (export promotion capital goods scheme). The Division Bench consists of Justices Anita Sumanth and N. Senthilkumar observed that “there is no justification in the Department having made the assessee litigate the issue needlessly despite the CBEC having categorically confirmed as early as in 2002 that the Customs Department must align with the stand of the DGFT and DG...