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...

Hiring Of Motor Vehicle Or Cranes Is Not 'Sale Of Goods' If Control Over Equipment Is Retained By Contractor, VAT Can't Be Levied: Supreme Court

The Supreme Court has held that the hiring of motor vehicles/cranes from a contractor is a service and would not attract Sales Tax or Value Added Tax (VAT) assuming the transaction to be sale of goods. The Court clarified that transfer of right to use the goods not only includes possession but also control over goods by the user. If the control over the goods remains with the contractor during the hire period, then it cannot be termed as sale of goods and only service tax can be levied. The...

Appellate Authority Cannot Dismiss Appeal For Non-Prosecution Due To Non-Appearance Of Assessee Or Authorized Representative: Patna High Court

The Patna High Court has observed that the appellate authority is not empowered to dismiss the appeal for non prosecution due to non-appearance of Assessee or authorized representative as appellate authority has a duty and obligation to take into consideration the merits of the matter, examine the grounds raised by the appellant even if the appellant or authorized representative presence is not recorded; and decide the issue on merits.The above ruling came in a petition whereby the petitioner...

Definition Of 'Manufacture' U/s 2(e)(1) Of UP Trade Tax Act Does Not Include Blending And Packaging Tea : Supreme Court

Recently, the Supreme Court has held that definition of 'manufacture' under Section 2(e)(1) of the U.P. Trade Tax Act, 1948 does not include blending and packaging tea. Distinguishing the judgment delivered by a three-judge bench of the Supreme Court in Chowgule & Co. Private Limited and Anr. vs. Union of India and Others, the bench comprising of Justice B.V. Nagarathna and Justice Ujjal Bhuyan held “However, in the instant case, mere mixing of different types of tea only for the...

SARFAESI Act | Charge Of Secured Creditor Will Precede Over The Charge Based On Dues Of Sales Tax: Gujarat High Court

The Gujarat High Court has reiterated that the charge of the Secured Creditor will precede over the charge of an Unsecured Creditor.The above ruling came in a writ petition whereby the core issue raised was - 'Who will have the first charge over the property in question i.e. Secured Creditor or the State / Central Government (Crowns debt) on account of non-payment of dues of the Sales Tax department?'In this matter, several petitions were filed pertaining to disputes over primary charge on...

CESTAT Orders Absolute Confiscation Of Gold Smuggled Without Payment Of Customs Duty

The Delhi Bench of Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has ordered the absolute confiscation of gold smuggled without the payment of customs duty.The bench of Rachna Gupta (Judicial Member) and Hemambika R. Priya (Technical Member) has observed that the gold was of foreign origin. It is also established that the appellants were attempting to smuggle the gold without payment of duty. The legal import of gold is governed by certain conditions, which the appellant does not...

Reopening Of Assessment Inspired From 'Review' & 'Change Of Opinion' By Subsequent AO Is Deprecated: Madras HC

While setting aside the order disposing of assessee's objection for re-opening of assessment pursuant to the issue of notice u/s 148 of the Income tax Act, 1961 and the consequent reassessment order, the Madras High Court held that there is no scope for re-opening of the assessment, since the reasons cited for same was inspired from change of opinion of the Assessing officer.A Single Judge Bench of Justice C. Saravanan observed that “there is no case made out for reopening the Assessment that...

Tax Exemption Can't Be Denied To Govt's Helicopter Pilots Trainer For Non-Furnishing GSTIN : Karnataka High Court

The Karnataka High Court has held that tax exemption cannot be denied to the government's helicopter pilot trainer merely for non-furnishing goods and service tax identification numbers (GSTIN) initially.The bench of Justice B. M. Shyam Prasad has observed that the GSTIN of the recipient organization was not furnished initially, is able to be furnished later, and demonstrates that its services of imparting training to the helicopter pilots were totally sponsored and borne by the Central...

2023 Annual Digest Of Direct Tax Cases: ITAT

Bogus Long-Term Capital Gains From Transaction In Penny Stocks: ITAT Upholds AdditionCase Title: Hemil Subhashbhai Shah Versus DCIT The Ahmedabad Bench of the Income Tax Appellate Tribunal (ITAT) has upheld the addition of bogus long-term capital gains from transactions in penny stocks. Gift From Family Members Do Not Require Any Special Occasion: ITAT Deletes Addition Case Title: Shri Hemant Pandya Versus ITO The Indore Bench of the Income Tax Appellate Tribunal (ITAT) has...

Coconut Oil Sold By Amway As Hair Oil, Not Classifiable As Edible Oil Under DVAT Act: Delhi High Court

The Delhi High Court has held that coconut oil sold by Amway as a hair oil cannot be classified as edible oil under the DVAT Act.The bench of Justice Vibhu Bakhru and Justice Amit Mahajan, while ruling in favour of the department, observed that the coconut oil is sold by the appellant in small packs, is displayed in the category of hair care, the manner in which it is to be applied to hair, and the purpose for which it is purchased by the consumer leaves no manner of doubt that the coconut oil...

Income Tax: Denial of 80lA Benefit In 4th Year Of Assessment, U-Turn By Department Is Not Justified: Delhi High Court

The Delhi High Court has held that the Principal Commissioner Income Tax (PCIT) wrongly invoked jurisdiction under Section 263 of the Income Tax Act and fell in error by taking a U-turn in the fourth assessment year, thereby denying the benefit of Section 80IA of the Income Tax Act.The bench of Justice Rajiv Shakdher and Justice Girish Kathpalia has observed that no material was brought on record by the PCIT to show that merely by migration from Internet Protocol-Virtual Private Network (IP-VPN)...

Typo Error In E-Way Bill, Penalty Can't Be Imposed If There Is No Intention To Evade Tax: Allahabad High Court

The Allahabad High Court has held that a minor typographical error in the e-way bill without any other material establishing an intention to evade tax will not attract a penalty under Section 129 of the Goods and Service Tax Act, 2017.Placing reliance on the decision of Allahabad High Court in M/s. Varun Beverages Limited v. State of U.P. and 2 others, the judgment of Supreme Court in Assistant Commissioner (ST) and others v. M/s. Satyam Shivam Papers Pvt. Ltd. And another, Justice Shekhar...