MRF Entitled To Re-Credit Of CENVAT Credit If Capital Goods Are Put To Use In Manufacture Of Final Products: CESTAT

The Chennai Bench of Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has held that the assessee, MRF is entitled to a re-credit of cenvat credit if capital goods are put to use in the manufacture of final products.The bench of Vasa Seshagiri Rao (Technical Member) has observed that the assessee has provided sufficient documentary evidence pertaining to the utilization of inputs in the manufacture of their final products. The demand for alleged ineligible CENVAT credit cannot be...

Services Of Procuring Export Orders From Foreign Buyers For Garment Manufacturers, Not ‘Intermediary’ Service: CESTAT

The Chennai Bench of Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has held that the services of procuring export orders from foreign buyers for manufacturers who supplied garments are not ‘intermediary’ services.The bench of Sulekha Beevi C.S. (Judicial Member) and Vasa Seshagiri Rao (Technical Member) has observed that since all these services are rendered by the appellant to its foreign client as per the direction of the foreign client—not only procurement of goods but...

Income From Sale Of Tender Forms, Xeroxing, Printing, Digital Software, Certificates Not Covered Under Business Auxiliary Services: CESTAT

The Hyderabad Bench of Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has held that income such as the sale of tender forms, xeroxing and printing, and digital software and certificates are not covered under business auxiliary services.The bench of Anil Choudhary (Judicial Member) and A.K. Jyotishi (Technical Member) has observed that the appellant would only assist the government departments and organizations in availing or procuring various IT-related hardware and services, and...

“Badam Milk Drink-Ready To Drink” Classifiable Under CTH 2202 9030: CESTAT

The Bangalore Bench of Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has held that “badam milk drink-ready to drink” is classifiable under CTH 2202 9030.The bench of D.M. Misra (Judicial Member) and Pullela Nageswara Rao (Technical Member) observed that Badam Milk Drink—Ready to Drink contains flavourings, namely badam powder, cardamom, saffron, and maltodextrin, and is garnished with badam flakes. It cannot be a substitute for milk in the preparation of beverages made with milk,...

ITAT Allows Section 80P Deduction On Interest Income Arising From Deposits/Investments Made With Co-Operative Bank

The Visakhapatnam Income Tax Appellate Tribunal (ITAT) has held that there is a deduction under Section 80P of the Income Tax Act on interest income arising from deposits or investments made with cooperative banks.The bench of Duvvuru Rl Reddy (Judicial Member) and S Balakrishnan (Accountant Member) has observed that the cooperative society is eligible for deduction under Section 80P(2)(a)(i) on the interest income received from investments in banks.The respondent-assessee is a primary...

Appellant Was Pursuing Review Petition In Good Faith, Delhi High Court Condones Delay In Filing Appeal Against ITAT Order

The Delhi High Court has condoned a 79-day delay in filing an appeal as a review petition was filed before the Income Tax Appellate Tribunal (ITAT).The bench of Justice Rajiv Shakdher and Justice Girish Kathpalia has observed that the time spent by the applicant while pursuing the review proceedings deserves to be excluded even under principles analogous to Section 14 of the Limitation Act because the applicant, in good faith, was prosecuting the challenge to the impugned order before the...

Section 148A(b) Notice Not Specifically Served On Assessee: Punjab And Haryana High Court Imposes Rs. 10K Cost On Dept.

The Punjab and Haryana High Court has imposed a cost of Rs. 10K on the income tax department and quashed the order under Section 148A(d) of the Income Tax Act and the notice under Section 148 of the Income Tax Act.The bench of Justice G.S. Sandhawalia and Justice Lapita Banerji has observed that the notice under Section 148A(b) of the Income Tax Act dated March 19, 2022, not having been specifically served and the order under Section 148A(d) of the Income Tax Act having been passed thereafter on...

Income Tax Dept. Can Share Taxpayer's Information With Deputy Director General Of UIDAI: CBDT

The Central Board of Direct Taxes (CBDT) has notified that the income tax department can share taxpayer's information with the deputy director general of the Unique Identification Authority of India (UIDAI).“In pursuance of sub-clause (ii) of clause (a) of sub-section (1) of section 138 of the Income-tax Act, 1961, the Central Government hereby specifies Deputy Director General (Tech Development Division), Unique Identification Authority of India (UIDAI), Government of India for the purposes of...

UP VAT Act | Enhancement Of Turnover Not A Necessary Consequence To Rejection Of Books Of Accounts: Allahabad High Court

The Allahabad High Court has held that turnover cannot be enhanced merely based on rejection of books of accounts. There has to be material as to suppression of turnover by the assesee to indicate evasion of tax.Relying on various judgments of the Allahabad High Court, Justice Piyush Agrawal held “Once the findings of fact has been recorded in favour of the petitioner, there is no cogent reason for enhancing the turnover. The tribunal was not justified in confirming the enhancement of turnover...

Biscuits Can Qualify As ‘Food Stuff’ To Be Eligible For Service Tax Refund: CESTAT

The Kolkata Bench of Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has held that biscuits can qualify as foodstuff so as to be eligible for the service tax exemption.The bench of R. Muralidhar (Judicial Member) and K. Anpazhakan (Technical Member) has allowed the refund, which was rejected by the adjudicating authority on the ground of limitation. The limitation would not be applicable if an amount is paid under a mistaken notion, as it is not required to be paid towards any duty...

Service Tax Liability Can’t Be Fastened On Compensation Received By Fabindia For Loss Caused By Breach Of Contract: CESTAT

The Delhi Bench of Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has held that service tax liability cannot be fastened on compensation received by Fabindia for loss caused by breach of contract.The bench of Binu Tamta (Judicial Member) observed that any penalty or compensation received for any loss or damage caused by breach or non-performance of the terms of the contract is not by way of consideration for any independent activity; rather, the same is in the course of performance...

Rejection Of Books Of Accounts Under UPVAT Act Will Not Necessarily Lead To Rejection Of Books Under Central Sales Tax Act: Allahabad HC Reiterates

The Allahabad High Court has reiterated that in absence of any material on record, rejection of books of accounts under local laws cannot be the sole ground for rejection of books of accounts under Central Sales Tax Act.“Merely because books of account under local sales have been rejected, the same will not necessarily be the ground for rejecting the books of account under Central Sales Tax Act also in the absence of any cogent material available on record,” held Justice Piyush Agrawal....