Gujarat High Court Quashes Reassessment Notice Issued Beyond COVID-Era TOLA Deadline

The Gujarat High Court has quashed a reassessment notice issued under Section 148 of the Income Tax Act, holding that it was issued beyond the "surviving time" available under the Taxation and Other Laws (Relaxation and Amendment of Certain Provisions) Act, 2020 (TOLA), as interpreted by the Supreme Court in Union of India v. Rajeev Bansal.TOLA was enacted to extend statutory timelines for tax and other legal proceedings during the COVID-19 pandemic.A Division Bench of Justice A.S. Supehia and...

CA-CPT, ICWA Foundation Coaching Eligible For Service Tax Exemption: CESTAT Hyderabad

The Customs, Excise and Service Tax Appellate Tribunal (CESTAT), Hyderabad has held that coaching imparted for CA-CPT, ICWA Foundation and Intermediate (10+2) examinations is exempt from service tax under the 2011 exemption notification. It held that these courses lead to educational qualifications recognised by law and that the notification does not confine the benefit to the final stage of an educational programme.A coram of Judicial Member Angad Prasad and Technical Member P. Anjani Kumar...

Why Should Delay Interest Not Be Recovered From Your Salary? : Delhi High Court To AO Over 4-Year Delay In Tax Refund

The Delhi High Court on Tuesday (July 28) directed an Assessing Officer to personally explain the four-year delay in taking steps to release over ₹15 crore due to Clix Capital Services Pvt. Ltd. A Division Bench of Justices Dinesh Mehta and Rajneesh Kumar Gupta directed the officer involved to personally appear before the Court and show cause why the interest payable for the delay should not be recovered from his salary.Petitioner-company submitted that the Assessing Officer had passed an...

Revenue's Appeal Against CESTAT's Service Taxability Ruling Lies Before Supreme Court: Delhi High Court

The Delhi High Court has held that an appeal against a CESTAT order determining the taxability of a particular service is not maintainable before the High Court and must instead be filed before the Supreme Court under Section 35L of the Central Excise Act, 1944.A Division Bench of Justices Anil Kshetarpal and Shail Jain relied on Commissioner of CGST and Central Excise, Delhi South v. M/s Spicejet Ltd., SERTA 2/2024 to conclude,“where the CESTAT determines the taxability of a particular service,...

CESTAT Chandigarh Quashes ₹99.59 Lakh Demand, Says DGOV Guidelines Cannot Override Valuation Rules

The Chandigarh Customs, Excise and Service Tax Appellate Tribunal (CESTAT) on 28 July held that Directorate General of Valuation (DGOV) guidelines cannot override the Customs Valuation Rules, 2007. Also that Customs authorities cannot reject a declared transaction value solely on the basis of such guidelines or London Metal Exchange (LME) prices without evidence proving that the declared value was incorrect.A Bench comprising Judicial Member S.S. Garg and Technical Member P. Anjani Kumar set...

Limitation Begins On Jurisdiction Transfer When Same AO Handles Searched And Other Person: ITAT Delhi

The New Delhi Income Tax Appellate Tribunal (ITAT) on 29 July held that where the Assessing Officer of the searched person and the “other person” under Section 153C of the Income Tax Act is the same, the limitation period for completing assessment begins from the date of transfer of jurisdiction under Section 127 and not from the date of recording satisfaction. A Bench of Judicial Member Vimal Kumar and Accountant Member Manish Agarwal quashed the assessment orders passed against Sudhir Agrawal...

DEPB Licences Not Eligible For ITC Under TNVAT Act Even If Classified As Goods: Madras High Court

The Madras High Court on 24 July held that dealers cannot claim Input Tax Credit (ITC) on purchase of Duty Entitlement Pass Book (DEPB) licences under the Tamil Nadu Value Added Tax (TNVAT) Act, as such licences, despite being classified as “goods”, do not meet the statutory conditions for availing credit. A Division Bench of Justices G. Jayachandran and N. Mala dismissed the writ appeals filed by P.I. Polymers and upheld the Single Judge's order denying ITC on DEPB licences, while reaffirming...

Bona Fide Classification Dispute Cannot Establish Tax Evasion Intent For Penalty: Punjab & Haryana HC

The Punjab and Haryana High Court on 20 July held that a bona fide classification dispute cannot, by itself, establish an intention to evade tax for imposing penalty under the Punjab Value Added Tax (PVAT) Act. A Division Bench comprising Acting Chief Justice Ashwani Kumar Mishra and Justice Rohit Kapoor allowed the appeal filed by Intex Technologies (India) Ltd. and set aside the penalty of Rs. 94,500 imposed under the PVAT Act for allegedly attempting to evade tax on mobile phone accessories....

Extended Limitation Cannot Be Invoked For Non Disclosure Of Facts Not Required By Law: CESTAT Ahmedabad

The Ahmedabad Customs, Excise and Service Tax Appellate Tribunal (CESTAT) on 27 July held that the extended limitation period under Section 11A(4) of the Central Excise Act, 1944 (which permits recovery beyond the normal limitation period in cases involving fraud, suppression of facts or wilful misstatement) cannot be invoked where the law did not require a taxpayer to disclose the information allegedly suppressed. A Bench comprising Judicial Member Dr. Ajaya Krishna Vishvesha allowed Polychem...

CESTAT Hyderabad Quashes Service Tax Demand On UltraTech Over Railway Wagon Freight Concession

The Hyderabad Bench of the Customs, Excise and Service Tax Appellate Tribunal (CESTAT) has held that the freight concession granted by the Indian Railways under the Liberalized Wagon Investment Scheme (LWIS) is a policy incentive and not consideration for any taxable service.A coram of Judicial Member Justice Angad Prasad and Technical Member P. Anjani Kumar, giving relief to UltraTech Cement observed,"We hold that the appellant has not rendered any taxable service to the Indian Railways under...

CESTAT Chennai Quashes ₹14.88 Crore Customs Duty Demand Against Toyota Kirloskar Auto Parts

The Customs, Excise and Service Tax Appellate Tribunal (CESTAT), Chennai has set aside a ₹14.88 crore customs duty demand against Toyota Kirloskar Auto Parts Pvt. Ltd. It held that transmission gears imported by the company are classifiable as "gears and gearing" under the Customs Tariff and cannot be treated as motor vehicle parts merely because they are ultimately used in manufacturing vehicles.Holding that the imported goods were specifically classifiable as "gears and gearing" under the...

S.107 CGST Act | GST Appellate Authority Can Conduct Further Inquiry, Permit Cross-Examination: Delhi High Court

The Delhi High Court has held that the appellate authority under Section 107 of the Central Goods and Services Tax (CGST) Act, 2017 is empowered to conduct such further inquiry as may be necessary while deciding an appeal and, in an appropriate case, can permit cross-examination of witnesses, notwithstanding the statutory bar on remanding matters to the adjudicating authority.The Division Bench of Justices Anil Kshetarpal and Shail Jain made the observation while refusing to entertain a writ...