Sun Pharmaceuticals Danazol Eligible For Excise Duty Exemption: CESTAT

The Chennai Bench of Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has held that the product ‘Danazol’ of Sun Pharmaceuticals Industries Ltd. is eligible for excise duty exemption.The bench of Sulekha Beevi C.S. (Judicial Member) and M. Ajit Kumar (Technical Member) has observed that since the terms ‘bulk drugs’ and ‘drug and medicines’ have not been defined in the exemption notification, the definition as per the Drugs (Price Control) Order, 1995, is relevant. As per the Drugs...

ITAT Dirests ALP Computation Towards Guarantee Commission @ 0.3523% In Case Of Macrotech Developers

The Mumbai Bench of Income Tax Appellate Tribunal (ITAT) has directed the ALP Computation Towards Guarantee Commission at a rate of 0.3523% in the case of Macrotech Developers.The bench of Kuldip Singh (Judicial Member) and Padmavathy S. (Accountant Member) has observed that the rate of guarantee commission is required to be determined on the basis of the credit rating of the issuer company and the comparison of interest rates without guarantee and with guarantee.The respondent/assessee had an...

GST Council Can Recommend Rate But Can’t Determine Classification: Madras High Court Allows Parle Agro’s Petition Challenging Classification Of Flavoured Milk

The Madras High Court has allowed Parle Agro’s petition challenging the classification of flavoured milk.The bench of Justice C. Saravanan has observed that the GST Council cannot impose the wrong classification of “flavoured milk” as a “beverage containing milk” under the residuary item "non-alcoholic "beverages" under Subheading 2202 90 30 of the Customs Tariff Act, 1975.The petitioner/assessee, M/s.Parle Agro Pvt. Ltd., has challenged the decision of the Authority for Advance Ruling (AAR) in...

Bombay High Court Quashes Income Tax Assessments Against Agriculturist And Rickshaw Driver For Improper Sanction

The Bombay High Court has quashed the income tax assessments for the assessment year 2016-2017 against agriculturists and rickshaw drivers for improper sanction.The bench of Justice K.R. Shriram and Justice Neela Gokhale relied on its earlier decision in Siemens Financial Services Private Limited Vs. Deputy Commissioner of Income Tax & Ors. The court held that the approval of the specified authority in terms of Section 151(ii) of the Income Tax Act is a jurisdictional requirement, and in the...

CENVAT Credits Can’t Be Denied To Service Recipient Without Opening Assessment Of Service Extended By Service Provider: CESTAT

The Mumbai Bench of Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has held that without an opening assessment of the provision of service extended by the service provider, CENVAT credits cannot be denied to the recipient who had paid the required service tax through the service receiver in order to avail the input services.The bench of Dr. Suvendu Kumar Pati (Judicial Member) and Anil G. Shakkarwar (Technical Member) has observed that the motor vehicle dealer, as an agency, was...

UP VAT Act | Definition Of “Goods” Under Sec. 2(m) And Sec. 13(1)(f) Includes Taxable As Well As Exempted Goods: Supreme Court

The Supreme Court has held that the definition of “Goods” under Section 2(m) of Uttar Pradesh Value Added Tax Act, 2008 (“UP VAT Act”) includes both taxable as well as exempted goods. Similarly, the word “goods” under Section 13(1)(f) of the UP VAT Act cannot be said to be qualified by the word “taxable”.The Bench comprising the Chief Justice Dr. Dhananjaya Y. Chandrachud, Justice J.B. Pardiwala and Justice Manoj Misra, has held that the legislative intent behind the 2010 amendment to the UP VAT...

Tax Cases Weekly Round-Up: 05 November To 11 November, 2023

Delhi High Court CENVAT Credit Refund Can’t Be Denied In Absence Of Self-Assessed Return Having Been Questioned, Reviewed Or Re-Assessed: Delhi High Court Case Title: BT (India) Private Limited Versus UOI Citation: 2023 LiveLaw (Del) 1082 The Delhi High Court has held that a CENVAT credit refund cannot be denied in the absence of the self-assessed return having been questioned, reviewed or re-assessed. Delhi High Court Quashes Suspension Of License, Issued To Customs...

Allahabad High Court Grants Interim Relief To Anand And Anand, Stays Show Cause Notice Demanding Refund Of Rs.138 Crores

The Allahabad High Court has granted interim relief to Anand and Anand Law Firm by staying the proceedings initiated under the Goods and Service Tax Act, 2017.The bench comprising of Chief Justice Pritinker Diwaker and Justice Ashutosh Srivastava stayed proceedings initiated pursuant to the show cause notice issued against the law firm till the next date of listing. While dealing with foreign clients, Petitioner received convertible foreign exchange for legal services rendered to foreign client,...

UP VAT Act | Assessee Entitled To Claim Full Input Tax Credit On Exempted Goods Produced As By-Products Or Waste Products During Manufacturing Of Taxable Goods : Supreme Court

The Supreme Court while relying on Explanation (iii) to Section 13 of Uttar Pradesh Value Added Tax Act, 2008 (“UP VAT Act”), has held that if during the manufacture of any taxable good any tax exempted goods are produced as by-product/waste product, then it shall be deemed that the goods purchased from within the State for such manufacturing have been used in manufacture of taxable goods alone. Thus, the Assessee would be entitled to claim full benefit of Input Tax Credit (“ITC”) in respect of...

Bombay High Court Quashes Reassessment Proceedings Against Non-Existent Entity Despite Active PAN

The Bombay High Court has quashed the reassessment proceedings against non-existent entities despite an active PAN.“PAN was not deactivated, which would not help the revenue because there could be cases relating to various years when the company was in existence, and it is possible those PAN numbers are picked up for scrutiny or for the issuance of a refund. That, in our view, will not be a sanction for the Department to issue notices to a non-existing entity, particularly when they were aware...

Income Tax Adjudication Proceedings And Criminal Prosecution Are Independent To Each Other: Madras High Court

The Madras High Court has held that income tax adjudication proceedings and criminal prosecution are independent of each other; the pendency of one does not affect the other.The bench of Justice G.K. Ilanthiraiyan has observed that the adjudication proceedings and the criminal prosecution are independent of each other, and the pendency of any adjudication proceeding is not a bar to proceeding with the prosecution.The respondent or department lodged a complaint against the petitioner for the...

Firm Liable To Pay Tax On Distribution Of Capital Assets On Dissolution And Not Partner: Bombay High Court

The Bombay High Court has held that, as per Section 45(4) of the Income Tax Act, assuming that there was a distribution of capital assets upon dissolution of the firm, it is the firm and not the partner who has to pay the tax.The bench of Justice K. R. Shriram and Justice Dr. Neela Gokhale has observed that the amount of Rs. 28 crores can be considered the amount received by a partner upon retirement from the firm and is not chargeable to tax.In FY 2009–10, Justice S. P. Bharucha, Chief...