Tax
GST | No Inherent Lack Of Jurisdiction, Adjudication Proceedings May Not Be Interjected In Extraordinary Writ Jurisdiction: Allahabad High Court
The Allahabad High Court has held the allegations of violations of law cannot be dealt with in extraordinary jurisdiction of the Court under Article 226 of the Constitution of India unless inherent lack of jurisdiction is claimed.The bench comprising of Justices Saumitra Dayal Singh and Surendra Singh-I held “Once allegations of infraction of law arise, adjudication proceedings may not be interjected in exercise of extra ordinary jurisdiction of the writ court. Limited scope of challenge may be...
Service Tax Not Leviable On Freight Brokerage: CESTAT
The Chennai Bench of Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has held that service tax is not leviable on freight brokerage.The bench of Sulekha Beevi C.S. (Judicial Member) and Vasa Seshagiri Rao (Technical Member) observed that the demand is raised on the markup made, which is the profit out of the difference in the value of ocean freight collected by the shipping line and paid by the exporter or client.The appellant/assessee is a partnership firm and holds a certificate...
Tax Cases Monthly Round Up: October 2023
Direct Taxes Supreme Court U.P. Trade Tax Act | ‘Tinted Glass’ To Be Taxed As “Goods Or Wares Made Of Glass”, As it is Different from ‘Plain Glass’: Supreme Court Case Title: M/S Triveni Glass Limited v COMMISSIONER OF TRADE TAX, U.P. Case No.: 2023 LiveLaw (SC) 896 The Supreme Court has held that ‘Tinted Glass Sheet’ is different from ‘Plain Glass sheet’ and is thus liable to be taxed as “goods or wares made of glass” under Entry 4 of Notification No.5784 dated ...
Electricity Charges Received By Malls, Airport Operators Etc. From Lessees Bundled With Renting, Forms Composite Supply: CBIC
The Central Board of Indirect Taxes and Customs (CBIC) has clarified that whenever electricity is being supplied bundled with renting of immovable property and/or maintenance of premises it forms a part of the composite supply and shall be taxed accordingly.The Board has issued the clarification in respect of the recommendations of the GST Council in its 52nd meeting held on October 7, 2023, in New Delhi with reference to the GST levy.The issue was with respect of the applicability of GST on...
GST Exemption On Pure Services And Composite Supplies By Way Of Horticulture/Horticulture Works Made To CPWD: CBIC
The Central Board of Indirect Taxes and Customs (CBIC) has clarified that supply of pure services and composite supplies by way of horticulture/horticulture works (where the value of goods constitutes not more than 25 per cent of the total value of supply) made to Central Public Works Department (CPWD) are eligible for exemption from GST.Public parks in government residential colonies, government offices and other public areas are developed and maintained by CPWD.Maintenance of community assets,...
DMFT Set Up By The State Governments Are Governmental Authorities, Eligible For GST Exemptions: CBIC
The Central Board of Indirect Taxes and Customs (CBIC) has clarified that District Mineral Foundations Trusts (DMFTs) set up by the state governments are eligible for GST exemptions.DMFTs work for the interest and benefit of persons and areas affected by mining-related operations by regulating receipt and expenditure from the respective Mineral Development Funds created in the concerned district. They provide services related to drinking water supply, environment protection, health care...
5% GST Applicable On Job Work For Processing Of “Barley” Into “Malted Barley”: CBIC
The Central Board of Indirect Taxes and Customs (CBIC) has clarified that 5% GST is applicable on job work for processing of “barley” into “malted barley”.The Board has issued the clarification in respect of the recommendations of the GST Council in its 52nd meeting held on October 7, 2023, in New Delhi with reference to the GST levy.The issue raised was whether job work for processing “Barley” into “Malted Barley” attracts 5% GST as applicable to "job work in relation to food and food products”...
Passenger Transportation And Renting Of Motor Vehicle With Operator Attracts Same GST Rate Or Compensation Cess As Supply Of Motor Vehicles By Way Of Sale: CBIC
The Central Board of Indirect Taxes and Customs (CBIC) has clarified that input services in the same line of business include transport of passengers (SAC 9964), renting of motor vehicles with operators (SAC 9966), and not leasing of motor vehicles without operators (SAC 9973), which attracts GST and/or compensation cess at the same rate as supply of motor vehicles by way of sale.The Board has issued the clarification in respect of the recommendations of the GST Council in its 52nd meeting held...
Penalty Is Payable On Failure To Deposit Tax Collected Within A Period Of Thirty Days From The Due Date: Kerala High Court
The Kerala High Court has held that the penalty is payable on failure to deposit the tax collected by him within a period of thirty days from the due date of the payment of the tax.The bench of Justice Dinesh Kumar Singh observed that in Sub-sections 6, 8, and 9 of Section 73 of the GST Act, 2017, it is provided that if a person chargeable to tax fails to deposit the tax collected by him within a period of thirty days from the due date of the payment of such tax, Sub-section 8 will not have any...
GST Appellate Tribunal Constituted But Not Functional: Gujarat High Court Stays Recovery Of Dues
The Gujarat High Court has stayed the order for recovery of dues on the grounds that, though the GST Appellate Tribunal was constituted, it was not functional.The bench of Justice Biren Vaishnav and Justice Mauna M. Bhatt has observed that though the Tribunal is constituted, it is still not functioning, and the competent authorities think it fit to issue orders of recovery, asking the assessees for information on whether an appeal has been filed at all. This apparently is a contradistinction...
System Default Is The Standard Excuse Of Department When It Comes To Giving Refunds: Bombay High Court
The Bombay High Court has stated that system default is the standard excuse of the department when it comes to giving refunds.The bench of Justice K. R. Shriram and Justice Neela Gokhale has observed that the excuse used is that the system under the control of the Centralized Processing Center (CPC), Bangalore, has some issues and, therefore, amounts are not being released to assessees. Interest is payable by law until the date of refund, and the Department does not realize that it is public...
Delhi High Court Allows Income Tax Deduction On Upfront Loan Processing Fee To Indus Towers
The Delhi High Court has allowed income tax deduction on the upfront loan processing fee to the assessee, Indus Towers.The bench of Justice Rajiv Shakdher and Justice Girish Kathpalia has observed that merely because the loan processing charges were paid upfront but amortized over a period of five years, solely to be in consonance with the mercantile system of accounting, the deduction of the entire charges in a lump sum in the year in which they were paid could not be denied to the respondent...