Disposable Cuvettes Can Be Classified As Parts Of Diagnostic Equipment: CESTAT Chennai

The Chennai Bench of the Customs, Excise and Service Tax Appellate Tribunal (CESTAT) has held that specially designed micro-cuvettes used with Roche Diagnostics India's Cobas c111 analyser are classifiable as parts of the diagnostic equipment. It ruled that the cuvettes' disposable nature did not by itself prevent such classification.A Bench of Judicial Member P. Dinesha and Technical Member M. Ajit Kumar held that the “Integra Microcuvetten, Micro Cuvette Segment” was not merely a plastic...

Thermic Fluid Used For Initial Filling Of Manufacturing Plant Qualifies As 'Capital Goods': CESTAT Mumbai

The Customs, Excise and Service Tax Appellate Tribunal (CESTAT), Mumbai has held that thermic fluid used to initially charge and operate a Continuous Polycondensation (CP) plant qualifies as “capital goods” for customs duty exemption.“In view of the above discussion and analysis of the statutory provisions under FTP and the notification dated 14.09.2009 regarding the scope and coverage of 'capital goods', and the nature of thermic fluids viz., 'Dowtherm RP Heat Transfer Fluid' / 'Dowtherm A Heat...

Punjab & Haryana High Court Sets Aside PCIT Order Rejecting Delay Condonation In HMT VRS Tax Claim

The Punjab & Haryana High Court on 23 September set aside the Principal Commissioner of Income Tax's (PCIT) rejection of an HMT Limited's employee's request to condone the delay in filing a revised return to claim an additional exemption on VRS compensation.A Division Bench of Justices Deepak Sibal and Sunish Bindlish held that delay in filing a revised income tax return cannot be treated as a standalone test while considering a request for condonation under CBDT Circular No. 9/2015. The...

Must Assets Seized Under The Income Tax Act Be Automatically Released After 120 Days? Gujarat HC Refers Issue To Larger Bench

The Gujarat High Court has referred to a Larger Bench the question of whether seized assets must be mandatorily released upon completion of 120 days under Section 132B of the Income Tax Act, where an application for release is filed within 30 days.A Division Bench of Justice A.S. Supehia and Justice Vaibhavi D. Nanavati referred three questions concerning the interpretation of the First and Second Provisos to Section 132B(1)(i).The questions are:“(1) Whether the release of seized assets is...

Taxpayer Can't Be Denied Sabka Vishwas Benefit Over Tax Quantification Sent To Bank: Bombay High Court

The Bombay High Court on 22 September held that a taxpayer cannot be denied the benefit of the Sabka Vishwas (Legacy Dispute Resolution) Scheme merely because the department quantified its service tax liability in a communication addressed to the taxpayer's bank rather than directly to the taxpayer. A Division Bench of Justices M.S. Karnik and Sandesh D. Patil allowed RG Studios' petition challenging the rejection of its declaration under the Scheme, under which the firm had declared service...

NVOCC Cannot Charge Demurrage On Customs-Seized Goods Despite 60-Day SCMTR Rule: CESTAT Mumbai

On 24 September, the Customs, Excise and Service Tax Appellate Tribunal (CESTAT), Mumbai held that a Non-Vessel Operating Common Carrier (NVOCC) acting as a Customs Cargo Service Provider (CCSP) cannot charge rent or demurrage on goods seized or detained by Customs, even if the Sea Cargo Manifest and Transhipment Regulations, 2018 (SCMTR) permit recovery of detention charges after 60 days in specified circumstances. A Bench comprising Judicial Member Ajay Sharma and Technical Member M.M....

Chewing Gum Not Taxable At 4% As 'Sweets And Sweetmeats': Gujarat High Court Holds 12.5% VAT Applies

The Gujarat High Court has recently ruled that chewing gum cannot be classified as “sweets and sweetmeats” under the Gujarat Value Added Tax Act, 2003. It held that the product is taxable at 12.5%, instead of the 4% rate applicable to sweets and sweetmeats.A bench comprising Justice Bhargav D. Karia and Justice Pranav Trivedi relied on the Supreme Court's ruling in Commissioner of Trade Tax, U.P. v. Associated Distributors Ltd. The court also held that the tribunal was wrong in deleting the...

Madras High Court Quashes ₹20 Lakh Penalty On Customs Broker, Finds No Proof Of Collusion

The Madras High Court on 17 September set aside the Rs. 20 lakh penalty imposed on Newport Shipping and Logistics, holding that the material relied upon by the Customs authorities did not establish the broker's knowledge, conscious involvement or collusion in the attempted export of prohibited bull/ox meat. Justice Hemant Chandangoudar observed that a Customs Broker cannot be held liable for abetment of the attempted export of prohibited goods merely on the basis of routine activities such as...

Stay Period Must Be Excluded Before Testing TOLA Extension To Assessment Limitation: Madras High Court

On 23 September, the Madras High Court held that the period during which assessment proceedings remain stayed by a court must be excluded while computing the limitation period before determining whether an extension under the Taxation and Other Laws (Relaxation and Amendment of Certain Provisions) Act, 2020 (TOLA) is available. A Division Bench comprising Chief Justice Sushrut Arvind Dharmadhikari and Justice G. Arul Murugan held that the limitation period under Section 153B of the Income Tax...

Bombay High Court Cautions Income Tax Dept. Against Routine Appeals With Mechanically Drafted Questions Of Law

The Bombay High Court has cautioned the Income Tax Department against routinely challenging Income Tax Appellate Tribunal (ITAT) orders by mechanically framing substantial questions of law.A division bench of Justice Suman Shyam and Justice Gautam A. Ankhad observed,"we are constrained to observe here that this Bench has noticed that Appeals under Section 260A of the Act are filed by the Department in a routine manner whereby the suggested substantial questions of law(s) are drafted...

Bombay High Court Condones Trust's 30-Day Delay In Filing Tax Audit Form Despite Pending CBDT Plea

The Bombay High Court on 21 September condoned Vallabh Welfare Foundation's 30-day delay in filing Form 10B for Assessment Year 2020-21, despite the charitable trust having already approached the CBDT seeking condonation of the delay. A Division Bench of Justices B.P. Colabawalla and Farhan P. Dubash declined to relegate the Foundation to its pending application before the CBDT, finding that the peculiar facts warranted the High Court's intervention. The judges observed: “Though we are mindful...

Audit Objection Can't Reopen Scrutiny-Completed Assessment Without Fresh Material: Gujarat High Court

The Gujarat High Court on 17 September held that an assessment cannot be reopened merely on the basis of an audit objection when the underlying issue was examined during the original scrutiny and no fresh or tangible material indicates escapement of income. A Division Bench comprising Justices A.S. Supehia and Vaibhavi D. Nanavati quashed the Section 148A(3) order and consequential Section 148 notice issued to Lodestone Software Services Pvt. Ltd. for Assessment Year 2022-23, finding that the...