ITAT Deletes Addition Of Unexplained Investment In Stock Valuation Difference

The Chennai Bench of Income Tax Appellate Tribunal (ITAT) has deleted the addition of unexplained investment in stock as a difference in the valuation of stock.The bench of Mahavir Singh (Vice President) and Manjunatha. G. (Accountant Member) has observed that the assessee has declared additional income towards excess stock found during the course of the survey, and the assessee has explained the source for excess stock found during the course of the survey, i.e., that it was out of income...

Taxpayer Not Provided Opportunity To Object To Retrospective Cancellation Of GST Registration: Delhi High Court Directs Restoration

The Delhi High Court has held that taxpayers are not provided an opportunity to object to the retrospective cancellation of GST registration.The bench of Justice Sanjeev Sachdeva and Justice Ravinder Dudeja has restored the GST registration of the petitioner to its original number.The petitioner/assessee has challenged the show cause notice requiring the petitioner to show cause as to why the GST registration of the petitioner was not cancelled. The petitioner was aggrieved by the order by which...

Defect Notice Caused No Prejudice Since Last 30 Years, Assessee Clearly Understood Purport Of Notice: Bombay High Court

The Bombay High Court has held that even assuming that there was a defect in the notice, it had caused no prejudice to the assessee, and the assessee “clearly understood” what the purport and import of the notice were under Section 274 read with Section 271 of the Income-tax Act, 1961. The principles of natural justice cannot be read in abstract form.The bench of Justice G. S. Kulkarni and Justice Jitendra Jain has observed that the assessee at no earlier point in time had raised a plea that, on...

Information Found In Pen Drive/Laptop Of Employees Can't Be Considered As Credible Evidence Without Corroborative Evidence: ITAT

The Mumbai Bench of Income Tax Appellate Tribunal (ITAT) has held that the information found in the pen drive or laptop of employees cannot be considered credible evidence unless it has been corroborated with any other evidence.The bench of Pavan Kumar Gadale (Judicial Member) and B.R. Baskaran (Accountant Member) has rejected the capitation fee addition against the appellant/assessee made on the basis of cash, documents seized from its employees, and statements recorded during the search...

Re-Sellers Of Machine Adopted Same Classification As Seller: Kerala High Court Quashes Penalty Under KVAT Act

The Kerala High Court has quashed the penalty under the Kerala Value Added Tax (KVAT) Act and held that re-sellers of machines have not wilfully classified machines under the wrong head and have adopted the same classification as the seller.The bench of Justice Dinesh Kumar Singh has observed that penalty proceedings have to be initiated when there is a willful or contumacious act on the part of the assessee to evade payment of the correct tax. The petitioners had reason to adopt the...

2023 Annual Digest Of Indirect Tax Cases: CESTAT, AAAR & AAR

CESTAT Konkan Railway Not Liable To Pay Service Tax On Use Of Mangalore-Roha Line: CESTAT Case Title: Konkan Railway Corporation Ltd. Versus Commissioner of Service Tax, Mumbai The Mumbai Bench of the Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has held that Konkan Railway is not liable to pay service tax on the use of the Mangalore-Roha Line. Excavation And Raising Of Ore Classifiable Under “Business Auxiliary Service” And Not Under “Mining Service”: CESTAT ...

'No Reason To Interfere With The Levy Of Tax On The Sale Of 'Korai'': Patna High Court

In a recent ruling, the Patna High Court has upheld the imposition of tax on the sale of 'Korai,' a processed by-product used as cattle feed.The decision came in response to two appeals by M/s Raj Kumar Sao Kishori Lal Sao, a partnership engaged in the purchase, processing, and sale of food-grains, pulses, and related by-products.The court's observation emphasized that there was no evidence to demonstrate that 'Korai' was sold as cattle feed. The processed nature of 'Korai' rendered it taxable...

Make My Trip, A Facilitator Between Hotel And Customer, Entitled To Claim Benefit Of Abatement Notifications: CESTAT

The Delhi Bench of Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) held that Make My Trip acted as a facilitator between hotel and customer for short-term accommodation service.The bench of Justice Dilip Gupta (President) and Hemambika R. Priya (Technical Member) has observed that a tour operator can provide a host of services, including booking of accommodation, transportation, and food facilities. However, when a person is otherwise qualified as a tour operator but provides only...

CGST Act | Once Registration Is Cancelled, Uploading Notice On Portal Not Sufficient Notice, Must Be Given At Assesee's Address: Allahabad HC

The Allahabad High Court has held that once the registration of the assesee is cancelled, any notice for proceedings under the Central Goods and Service Tax Act, 2017 shall be served on the address of the assesee. The Court observed that merely uploading notice on the web portal without any intimation to the assesee will vitiate any subsequent action as being bad in law.Elaborating on the need for judicious application of the principle of audi alteram partem in legal and administrative...

2023 Annual Digest Of GST Cases

Supreme CourtState Amendments Made To VAT Acts After GST Came Into Effect Are Invalid : Supreme Court Case Title: The State of Telangana & Ors. V. M/S Tirumala Constructions., Civil Appeal No(S). 1628 Of 2023 Citation : 2023 LiveLaw (SC) 927 A Division Bench of the Supreme Court, while deciding the appeals arising from judgments of Telangana, Gujarat and Bombay High Court with respect to the validity of VAT Amendment Act in their respective states, made several significant...

Industrial Units Can't Be Discriminated For Budgetary Support Based Turnover: Gauhati High Court

The Gauhati High Court recently held that the exclusion of industrial units who were eligible to avail benefits under the NEIIPP, on the classification that they did not pay Central Excise Duty either because their annual turnovers were below the threshold limit of 1.5 crores or that they had produced items which were already exempted, cannot be permitted to be a ground to deny the benefits of budgetary support scheme.The single judge bench of Justice Soumitra Saikia observed:“Such...

ONGC Not Liable To Pay Service Tax On Consideration For Right To Use Natural Resources: CESTAT

The Chennai Bench of Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has held that Oil and Natural Gas Corporation Ltd. (ONGC) is not liable to pay service tax on consideration for the right to use natural resources.The bench of Sulekha Beevi C.S. (Judicial Member) and Vasa Seshagiri Rao (Technical Member) has relied upon the view taken by the Supreme Court in Cements v. State of Tamil Nadu and held that in accordance with the view taken by the Hon'ble Supreme Court royalty is a tax...