Tax
Accumulated CENVAT Credit Of EOU Unit Can Be Transferred To DTA Unit After Exit Of EOU Status: CESTAT
The Chennai Bench of Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has held that the accumulated CENVAT credit of export-oriented units (EOU) can be transferred to the Domestic Tariff Area (DTA) Unit after the exit of EOU status.The bench of Sulekha Beevic (Judicial Member) and Vasa Seshagiri Rao (Technical Member) observed that the unit has become a DTA after exiting from EOU status. Under Central Excise Law, both of these units are considered separate entities. The accumulated...
No Requirement To Have A DIN Number In Satisfaction Note Recorded By Assessing Authority: Kerala High Court Upholds Section 153C Proceedings
The Kerala High Court has upheld the proceedings under Section 153C of the Income Tax Act and noted that there is no requirement to have a DIN number in the satisfaction note recorded by the Assessing Authority.The bench of Justice Dinesh Kumar Singh has dismissed the writ petition and stated, “It cannot be said that the impugned notices and assessment orders are without jurisdiction as submitted by the learned counsel for the petitioner.”As per Section 153C of the Income Tax Act where a search...
State Amendments Made To VAT Acts After GST Came Into Effect Are Invalid : Supreme Court
A Division Bench of the Supreme Court, while deciding the appeals arising from judgments of Telangana, Gujarat and Bombay High Court with respect to the validity of VAT Amendment Act in their respective states, made several significant findings regarding Section 19 of the Constitution (101st Amendment) Act (Amendment), 2016, which allowed the introduction of the Goods and Services Tax.Inter-alia, the issue was about the legislative competence of the State enactments after 01.07.2017 i.e. beyond...
Physician Samples Distributed Free Of Cost By Medicament Manufacturer, Excise Duty Payable On Transaction Value: CESTAT
The Kolkata Bench of Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has held that physician samples are not sold by affixing the MRP on them; the same has to be distributed free of charge by the medication manufacturer. In those circumstances, the excise duty is payable on transaction value.The bench of Ashok Jindal (Judicial Member) and K. Anpazhakan (Technical Member) has observed that the assessee has not short-paid the duty and that the assessee has correctly paid the duty on...
Delhi High Court Directs Dept. To Refund IGST On Telecommunication Services Rendered By Vodafone Idea To Foreign Telecom Operators
The Delhi High Court has directed the department to refund IGST on telecommunication services rendered by Vodafone Idea to foreign telecom operators (FTO).The Bench of Justice Vibhu Bakhru and Justice Amit Mahajan has observed that the predecessor of the petitioner (Vodafone India Ltd.) had prevailed before the Customs Excise and Service Tax Appellate Tribunal on the question of whether the services qualified for export services.The petitioner/assessee was aggrieved by the rejection of its...
CBDT Condones Delay In Filing Of Form No. 10-IC For Assessment Year 2021-22
The Central Board of Direct Taxes (CBDT) has notified the condonation of delay under section 119(2)(b) of the Income-tax Act, 1961 in filing of Form No. 10-IC for Assessment Year 2021-22.Form 10-IC is required to be filed only if a Domestic Company chooses to pay tax at concessional rate of 22% under Section 115BAA of the Income Tax Act, 1961.The Board has received the representations stating that Form No. 10-IC could not be filed for A.Y. 2021-22 within the due date or extended due date, as the...
IT And Admin Services By Singapore Entity To Its Affiliate In India Can’t Be FTS: Delhi High Court
The Delhi High Court has held that information technology and other administrative services provided by the respondent or assessee to its affiliate in India could be construed as fees for technical services (FTS).The bench of Justice Rajiv Shakdher and Justice Girish Kathpalia has observed that services offered by the respondent or assessee to its Indian affiliates did not come within the purview of FTS, as reflected in Article 12(4)(b) of the Indo-Singapore DTAA, and concluded that they did not...
Bombay High Court Restrains GST Dept. From Passing Final Order On Demand Notices Against Delta Corp.
The Bombay High Court has restrained the GST Department from passing final order on demand notices against Delta Corp.The bench of Justice M.S. Sonak and Justice Bharat P. Deshpande while listing the matter on 5 February 2024 issued the notice to the centre.In addition to contesting several other circulars, clarifications, and rate notifications issued by the Central Board of Indirect Taxes and Customs (CBIC), the petitioner/assessee, Delta Corp., had also challenged Rule 31A of the Central...
CBDT Extends Due Date For Filing The Report Of Accountant For AY 2023-24 Until December 31, 2023
The Central Board of Direct Taxes (CBDT) has extended the due date for filing newly notified Form 56F in respect of the report of accountant for AY 2023-24 until December 31, 2023.The Board has considered the difficulties arising to the taxpayers and other stakeholders in timely filing of the report of the accountant required to be filed under section 10AA(8) read section 10A (5) of the Income-tax Act, 1961 on account of notification of relevant Form 56F on October 19, 2023, and with a view to...
9 Hours Time Gap Between The Expiry Of E-Way Bill And Interception Of The Vehicle: Calcutta High Court Directs Refund Of Penalty
The Calcutta High Court has directed the refund of the penalty in the case where there was a 9-hour time gap between the expiry of the e-way bill and the interception of the vehicle.The bench of Justice Md. Nizamuddin observed that there was no intention of the petitioner to evade the payment of tax.The petitioner/assessee challenged the order of the appellate authority under the WBGST Act confirming the order of the adjudicating authority imposing the penalty for transporting the vehicle in...
CESTAT Quashes Service Tax Demand On Transport Of Goods With Loading And Shifting From Private Railway Siding To Stacking Yard
The Kolkata Bench of Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has quashed the service tax demand on the transport of goods with loading and shifting from private railway sidings to stacking yards.The bench of Ashok Jindal (Judicial Member) and K. Anpazhakan (Technical Member) observed that the main activity of the assessee or appellant is the transportation of materials, not loading and unloading, and transportation is the main service, so it can be classified under the Goods...
Sikkim High Court Stays GST Show Cause Notice Against Casino And Online Gaming Company, Delta Corp.
The Sikkim High Court has stayed the GST demand against casino and online gaming company Delta Corp.The bench of Justice Bhaskar Raj Pradhan has mandated that the department and respondents maintain the status quo regarding the show cause notice. This means that no coercive or precipitous action should be taken against Delta Corp. in the interim. A hearing on the subject has been scheduled for December 5, 2023.In addition to contesting several other circulars, clarifications, and rate...