Tax
Intention To Smuggle Prohibited Goods Can't Be Equated With Attempt To Export Prohibited Goods: CESTAT
The Hyderabad Bench of Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has held that intention to smuggle prohibited goods cannot be equated with an attempt to export prohibited goods.The bench of Anil Choudhary (Judicial Member) and A.K. Jyotishi (Technical Member) observed that the appellant was intercepted by the CISF officials outside the customs area. The appellant had admittedly not approached the airline counter. This fact is supported by the no-show status of the ticket of...
Statements Recorded Under Section 108 Of Customs Act, 1962 Are Admissible Before Court Of Law: CESTAT
The Delhi Bench of Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has held that statements recorded under Section 108 of the Customs Act, 1962, are admissible before a court of law.The bench of Binu Tamta (Judicial Member) and P.V. Subba Rao (Judicial Member) has observed that the Customs Broker, in his statement recorded under Section 108, accepted that he has not verified the antecedents of the importer as the documents were handed over by Shri Badlani, an associate of Shri...
Failure Of Dept. To Comply With ITAT's Order: Delhi High Court Directs Dept. To Remove Demands, Penalty From ITBA portal
The Delhi High Court has held that the Department has failed to comply with Income Tax Appellate Tribunal's (ITAT's) Order in passing a fresh assessment order within the stipulated time.The bench of Justice Yashwant Varma and Justice Purushaindra Kumar Kaurav has observed that the underlying rationale of the Legislature behind the enactment of Section 153(3) of the Income Tax Act and setting the limitation therein, cannot be envisaged to expand the time limit for passing of a fresh assessment....
NFAC Can't Sustain Invocation Of Penalty Proceedings Based On Their Own Failure To Lodge Claim Under IBC Within Time: Delhi High Court
The Delhi High Court has held that the National Faceless Assessment Centre (NFAC) cannot sustain invocation of penalty proceedings based on their own failure to lodge a claim under the Insolvency and Bankruptcy Code (IBC) within time.The bench of Justice Yashwant Varma and Justice Purushaindra Kumar Kaurav has observed that, as per Section 144B of the Income Tax Act, proceedings for assessment, reassessment, or re-computation are initiated in terms of the faceless procedure of assessment as...
Assessee Can't Be Absolved Of Responsibility As Registered Person To Monitor The GST Portal: Madras High Court
The Madras High Court held that the assessee cannot be absolved of responsibility as a registered person to monitor the GST portal.The bench of Justice Senthilkumar Ramamoorthy has observed that an audit was conducted and that an audit report dated 15.09.2023 was issued. An intimation and show cause notice preceded the impugned order. It is noticeable that the tax proposal was confirmed because the petitioner did not submit a reply along with supporting documents. Therefore, by putting the...
Gujarat High Court Quashes Demand Notice And Assessment Order In Absence Of Any Claim Not Forming Part Of Resolution Plan
The Gujarat High Court has quashed the demand notice and assessment order in the absence of any claim not forming part of the resolution plan (RP).The bench of Justice Bhargav D. Karia and Justice Niral R. Mehta has observed that, as per the Insolvency and Bankruptcy Code (IBC), the demand that was raised pursuant to the order dated March 13, 2023, by issuing the demand notice dated March 20, 2023, cannot be said to be in respect to a claim that is part of the resolution plan. The bench stated...
Refund More Than 10% Of Tax As Determined On Regular Assessment, CEAT Entitled To Interest On Refund Of Rs. 5.24 Cr.: Bombay High Court
The Bombay High Court has held that Ceat Limited is entitled to interest on a refund of Rs. 5.24 crore as the refund is more than 10% of tax as determined on regular assessment.The bench of Justice K. R. Shriram and Justice Neela Gokhale has observed that the words “amount of refund” must mean the whole of the refund of Rs. 5,24,29,950 and not an artificial split as canvassed by the Department. Therefore, irrespective of what the words “regular assessment” mean, the proviso would not be...
No Service Tax Can Be Demanded On Sale Of Goods Or By Way Of Including Value Of Goods In The Service: CESTAT
The Ahmedabad Bench of Customs, Excise and Service Tax Appellate Tribunal (CESTAT) has held that no service tax can be demanded on the sale of goods or by way of including the value of goods in the service.The bench of Ramesh Nair (Judicial Member) and Raju (Technical Member) has observed that as per the contract and the transaction made thereunder there is clear distinction between the provision of service and transaction of sale of goods therefore the service has been correctly classified...
Bombay High Court Quashes SCN Demanding GST On Ocean Freight On Transportation Of Goods From Outside India
The Bombay High Court has quashed the show cause notice (SCN) demanding GST on ocean freight on transportation of goods from outside India.The bench of Justice G. S. Kulkarni and Justice Firdosh P. Pooniwalla has relied on the decision of the Supreme Court in the case of Mohit Minerals and observed that the verdict applies to both free on board (FOB) and sum of cost, insurance, and freight (CIF) contracts.The petitioner/assessee has challenged a show cause notice issued by the Assistant...
Intention To Smuggle Prohibited Goods Can't Be Equated With Attempt To Export Prohibited Goods: CESTAT
The Hyderabad Bench of Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has held that intention to smuggle prohibited goods cannot be equated with an attempt to export prohibited goods.The bench of Anil Choudhary (Judicial Member) and A.K. Jyotishi (Technical Member) observed that the appellant was intercepted by the CISF officials outside the customs area. The appellant had admittedly not approached the airline counter. This fact is supported by the no-show status of the ticket of...
Telangana High Court Holds 'Handling Of Cargo In Customs Areas Regulations, 2009' As Ultra Vires Of The Customs Act, 1962
The Telangana High Court holds 'Handling of Cargo in Customs Areas Regulations, 2009' by way of which cost of living expenses were recoverable from the Customs Cargo Service Provider as ultra vires of the Customs Act, 1962.“In the absence of any special authorization to levy cost recovery charges, appellants have no authority to impose cost recovery charges by means of a Regulation. The inevitable conclusion is that the 2009 Regulations are ultra vires the Customs Act, 1962.”The order was passed...
“Certainly The High Court Should Not Scrutinise An Order Of The ITSC As An Appellate Court,” Says Bombay High Court
The Bombay High Court has held that interference with the orders of the Income Tax Settlement Commission (ITSC) should be avoided, keeping in mind the legislative intent. The scope of interference is very narrow, and certainly the High Court should not scrutinize an order of the ITSC as an appellate court. Unsettling reasoned orders from the ITSC may erode the confidence of assessees. The larger picture has to be kept in mind.The bench of Justice K.R. Shriram and Justice Neela Gokhale has...