Tax
CESTAT Weekly Round-Up: 21 To 27 July 2024
No Service Tax Payable By CIPLA On Manufacturing And Exporting Of Pharmaceutical Products: CESTATCase Title: Commissioner, Central Excise And Service Tax Versus CIPLAThe Delhi Bench of Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has held that no service tax is payable by Cipla on the manufacturing and export of pharmaceutical products.Samsung India Entitled To Customs Duty Exemption On Imported IC-Codecs: CESTATCase Title: M/s. Samsung India Electronics Pvt. Ltd Versus...
Indirect Tax Weekly Round-Up: 21 To 27 July 2024
Supreme CourtCustoms Act | Owner Of Goods Liable To Pay Customs Duty Even After Confiscated Goods Are Redeemed Paying Fine : Supreme CourtCase Title: M/S Navayuga Engineering Co. Ltd. Versus Union Of India & Anr.Citation : 2024 LiveLaw (SC) 504In a notable ruling relating to the Customs Act of 1962, the Supreme Court on Tuesday (July 23) held that the importer would be liable to pay customs duty in addition to fines and other charges upon redeeming the confiscated goods.Delhi High...
Direct Tax Weekly Round-Up: 21 To 27 July 2024
Supreme CourtState Not Liable To Collect Tax At Source While Giving Contractors Permit To Vend Liquor At Fixed Retail Price : Supreme CourtCase Details : THE EXCISE COMMISSIONER KARNATAKA & ANR. v. MYSORE SALES INTERNATIONAL LTD. & ORS CIVIL APPEAL NO. 2168 OF 2007Citation : 2024 LiveLaw (SC) 496The Supreme Court recently held that any vendor who buys liquor from state manufacturers without obtaining it through auction and sells in retail at a fixed price would be excluded from the...
Different Addresses, Registration Of Premises Not Pre Condition For Availing Cenvat Credit: CESTAT
The Mumbai Bench of Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has held that the registration of premises is not a condition precedent for availing cenvat credit.The bench of Suvendu Kumar Pati (Judicial Member) and Anil G. Shakkarwar (Technical Member) has observed that there is no allegation in the show cause notice that the services associated with the invoices in question were not received by the appellant nor were there any allegations that the input services did not...
Kerala High Court Allows Adjustment Refund Amount Towards Amount payable under Amnesty Scheme
The Kerala High Court has held that it is open to the department to consider an adjustment of the refund amount due to the appellant towards the amounts due from him by way of settlement under the Amnesty Scheme.The bench of Justice A.K. Jayasankaran Nambiar and Justice Syam Kumar V.M. has quashed the order passed by the Single Bench in which it was held that the Amnesty Scheme was essentially a Code in itself, and once an order was passed by the authority determining the amount to be paid by an...
Goods Transported For Own Use, No Intention To Evade Tax, Kerala High Court Deletes Penalty
The Kerala High Court has held that the assessee, immediately after the goods were detained, produced the statutory declarations in Form 16 to demonstrate that the goods that were being transported were for the own use of the assessee.The bench of Justice A.K. Jayasankaran Nambiar and Justice Syam Kumar V.M., while upholding the Tribunal's order, observed that there was no intention on the part of the assessee to evade payment of tax, which is legally sustainable. At the time of receipt of the...
Educational Activities Neither Business Nor Profession, Covered Under Section 2 (15) Of Income Tax Act: Delhi High Court
The Delhi High Court has held that the assessee is carrying on educational activities that are covered by the provisions of Section 2 (15) of the Income Tax Act, and it is neither business nor profession of the assessee. The bench of Justice Yashwant Varma and Justice Ravinder Dudeja observed that the mode and manner in which education is imparted would be a concept that would have to necessarily be evaluated bearing in mind the march of technology and the myriad modes of imparting instruction...
SBI Not Entitled To Refund Of Krishi Kalyan Cess: CESTAT
The Chandigarh Bench of Customs, Excise, and Service Appellate Tribunal (CESTAT) has observed that SBI is not entitled to refund of Krishi Kalyan Cess (KKC).The bench of S. S. Garg (Judicial Member) has relied on the decision in the case of Bharat Heavy Electricals Ltd. and held by relying on the judgment in the case of Slovak India Trading Co. Pvt. Ltd. that the assessee is eligible for a cash refund of cesses lying as Cenvat credit balance as of 30.06.2017 in their accounts. However, the...
Non-Filing Of GST Return Due To Technical Glitch, Bank Can't Be Penalised: Telangana High Court
The Telangana High Court has held that the petitioner bank could not file its return in the GST portal because of a technical glitch and cannot be saddled with demand, penalty, and interest.The bench of Justice Sujoy Paul and Justice Namavarapu Rajeshwar Rao has observed that it was the duty of the department to keep their portal functional. If the portal was not functional or had a technical glitch, and because of that, the petitioner was compelled to file a return in the portal of Telangana....
Bank Charges & Bank Guarantee Charges Wrongly Included As Interest: ITAT
The Delhi Bench of Income Tax Appellate Tribunal (ITAT) has held that bank charges and bank guarantee charges do not partake in the character of interest and had been wrongly included as interest while making disallowance under section 14A of the Income Tax Act.The bench of G.S.Pannu (Vice President) and Kul Bharat (Judicial Member) has observed that the assessee had disallowed the expenditure related to administrative expenses. However, in respect of the disallowance for the interest, it was...
Long Term Capital Gain On Sale Of Shares By Mauritius Company Is Not Liable To Be Taxed In India: ITAT
The Delhi Bench of Income Tax Appellate Tribunal (ITAT) has held that long-term capital gain on sale of shares by Mauritius Company is not liable to be taxed in India.The bench of Vikas Awasthy (Judicial Member) and Naveen Chandra (Accountant Member) has observed that the assessee had claimed long-term capital gains arising from the sale of shares as exempt from tax in light of Article 13(4) of India-Mauritius DTAA. LEI Singapore Holdings Pte. Ltd. deducted tax at source on the payments made to...
Failure To Carry Out Physical Verification Of Veracity Of Exporter Alone Is No Basis To Suspend License Of Custom Broker: Delhi HC
The Delhi High Court held that a custom broker cannot be held guilty of having failed to discharge the obligation placed in terms of Regulation 10(n) of CBLR 2018, simply because he has not carried out physical verification of the veracity of the exporter. As per the Customs Brokers Licensing Regulations, 2018, Section 10(e) states about the obligation of the Custom Broker to exercise due diligence to ascertain the correctness of any information which he imparts to a client with...