Separate Show-Cause Notice Not Needed Before Remanding Customs Case For Fresh Adjudication: Delhi High Court

The Delhi High Court has held that a separate show-cause notice under Section 129DD(5) of the Customs Act, 1962 is required when the Revisional Authority proposes to enhance the penalty or fine in lieu of confiscation, or to confiscate goods of greater value, but is not required merely when the matter is remanded for fresh adjudication.The Division Bench of Justices Avneesh Jhingan and Shail Jain made the observation while dismissing a writ petition challenging an order passed by the Revisional...

Delhi High Court Upholds VAT Refund To Taxpayer After Return Accepted Under Self-Assessment

The Delhi High Court has held that a taxpayer is entitled to a refund under the Delhi Value Added Tax Act, 2004 (DVAT Act) where the return has been accepted under the self-assessment mechanism and no proceedings for assessment, reassessment or audit have been initiated.The Division Bench of Justices Avneesh Jhingan and Shail Jain made the observation while dismissing an appeal filed by the Commissioner of Trade and Taxes against an order of the Delhi Value Added Tax Appellate Tribunal directing...

Civil Work Contract Not Manpower Supply Service Merely Because Contractor Deploys Own Workers: CESTAT Kolkata

The Customs, Excise and Service Tax Appellate Tribunal (CESTAT), Kolkata has held that civil work billed according to the work performed could not be treated as “Manpower Service” where the contractor's billing was not based on the number of workers or man-days deployed. The tribunal found that the consideration was linked to the civil work carried out at the railway siding, rather than the manpower deployed.“From the above Work Order, we find that the service provider is not charging any amount...

CGST Penalty: Delhi High Court Says Questions On Limitation, Proper Officer & Liability Must Be Raised In Appeal

The Delhi High Court has declined to entertain writ petitions challenging penalties imposed under the Central Goods and Services Tax (CGST) Act, observing that questions concerning limitation, the competence of the Proper Officer and the nature of the petitioners' liability should be examined by the statutory appellate authority.The Division Bench of Justices Anil Khetarpal and Bharat Parashar was dealing with three connected writ petitions arising out of a common adjudication order dated March...

Supplementary Deed Changing Payment Terms Not Fresh Conveyance For Stamp Duty: Bombay High Court

The Bombay High Court on Monday held that a supplementary deed that only changes the manner of satisfying an already agreed consideration cannot be treated as a fresh conveyance for imposing stamp duty.Justice Amit Borkar set aside a stamp duty demand of ₹21.08 lakh and penalty of ₹51.18 lakh against Om Shivam Builders Private Limited. The Court held that the Stamp Authority must first establish that a document contains a transaction chargeable to stamp duty before proceeding to value the...

Providing Access To Government Data Through Its Portal Not OIDAR Service: CESTAT Delhi

The Customs, Excise and Service Tax Appellate Tribunal (CESTAT), New Delhi has set aside service tax demands against MP Online Ltd., holding that the company did not provide Online Information and Database Access or Retrieval (OIDAR) services merely by operating a portal through which Madhya Pradesh Government data could be accessed.The Bench of Officiating President Dr. Rachna Gupta and Technical Member P.V. Subba Rao held that MP Online only provided a network through which government data...

Madras High Court Rejects Review Of ₹10 Crore Cash Credit Addition For Lack Of Due Diligence

The Madras High Court on 28 September dismissed a review application seeking to reopen a Rs. 10 crore unexplained cash credit addition against an individual engaged in civil contract business. A Division Bench comprising Chief Justice Sushrut Arvind Dharmadhikari and Justice G. Arul Murugan dismissed the review application, holding that the petitioner failed to show due diligence in producing documents relied upon as new evidence and failed to establish the identity and creditworthiness of the...

CENVAT Credit On Reverse Charge Service Tax To Be Refunded In Cash Under CGST Act: CESTAT Delhi

The Customs, Excise & Service Tax Appellate Tribunal (CESTAT), New Delhi has held that any CENVAT credit accruing to Northern Coalfields Ltd. on payment of service tax under the reverse charge mechanism has to be refunded in cash under Section 142 of the CGST Act after the GST regime came into force.The ruling came in a batch of five appeals filed by Northern Coalfields against service tax demands on payments made to the Madhya Pradesh government towards Rural Infrastructure and Road...

Commissioner's Approval Alone Cannot Sustain Departmental Appeal Below ₹20 Lakh: GSTAT Ghaziabad

On 1 October, the Goods and Services Tax Appellate Tribunal (GSTAT), Ghaziabad, held that a departmental appeal cannot be maintained when the disputed tax demand is below the prescribed monetary limit unless the Revenue establishes a recognised exception to the limit. A Division Bench comprising Judicial Member Dr. Sanjay Kumar Chandhariyavi and Technical Member Sungita Sharma dismissed the Revenue's appeal involving a disputed amount of Rs. 11.88 lakh at the threshold, without examining its...

Tax Classification Depends On Form Of Goods At Sale, Not End Use: Supreme Court

The Supreme Court has held that a product must be classified for tax purposes in the form in which it is sold, rather than on the basis of what a consumer may later turn it into.“The tax authorities are bound to look at what is supplied and not at what is the 'end use' of the good,” a Bench of Justice Manmohan and Justice Arun Palli observed while dismissing the Madhya Pradesh Commercial Tax Department's appeals over the classification of Cadila Health Care Ltd.'s 'GRD Powder' and 'GRD Mix'."The...

Later DRC-01 Date Alone Cannot Make GST SCN Time-Barred: Delhi High Court

The Delhi High Court has held that a delay in generating Form GST DRC-01, an electronic summary of a GST show-cause notice, does not by itself make the underlying notice time-barred if the substantive notice was issued within the prescribed period.The Division Bench of Justices Anil Khetarpal and Bharat Parashar was dealing with two petitions filed by a proprietorship concern challenging proceedings under Section 74 of the Central Goods and Services Tax (CGST) Act, 2017.The principal issue...

GST Not Payable On Amounts Recovered From Employees For Canteen Meals: Gujarat AAR

The Gujarat Authority for Advance Ruling has ruled that GST is not payable on amounts recovered by Torrent Pharmaceuticals Ltd. from employees towards canteen meals at its Indrad plant, R&D facility and corporate office.The AAR held that the deductions made from employees do not amount to a “supply” under Section 7 of the CGST Act. The Authority observed, “We hold that the deduction made by the applicant from the employees who are availing food in the factory/corporate office would not...