Recipient Of GTA Services Not Liable To Pay Service Tax Which Was Already Paid By Transport Agency: CESTAT

The Ahmedabad Bench of Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has held that recipients of goods transport agency (GTA) services are not liable to pay service tax that was already paid by the transport agency.The bench of Ramesh Nair (Judicial Member) and Raju (Technical Member) has observed that once the service provider discharges the service tax where the service recipient is liable to pay the service tax, the demand of service tax on the same service from the service...

Travelling Expenses Incurred By Directors For Business Purposes And Not Personal, Delhi High Court Allows Travel Expenses

The Delhi High Court has held that the travelling expenses were incurred by the directors for business purposes of the company.The bench of Justice Rajiv Shakdher and Justice Girish Kathpalia noted that there was no information brought on record by the AO that could prove that these expenses were of a personal nature; therefore, the assessing officer was not justified in disallowing the travel expenses.The AO, while framing the assessment order under Section 143(3) read with Sections 153 and...

Wrong Collection Of TCS On Purchase Of Coal For Generation Of Power: Jharkhand High Court Directs Refund

The Jharkhand High Court has directed the Tax Collected as Source (TCS) refund wrongfully collected despite verifying purchase of coal was used for the generation of power.The bench of Justice Rongon Mukhopadhyay and Justice Deepak Roshan has observed that the root cause lies in the illegality committed by the Revenue in compelling Central Coalfields Limited (CCL) in effecting TCS qua the transactions of purchase of coal which according to the petitioner was genuinely used in the generation of...

Active Involvement In Customs Duty Evasion: Delhi High Court Dismisses Plea Seekings Directions For Pre-Deposit Waiver

The Delhi High Court, while dismissing the petition seeking directions for waiver of the pre-deposit requirement as placed in terms of Section 129E of the Customs Act, 1962, noted that the case of the petitioner does not fall under the category of rare and exceptional cases.The bench of Justice Yashwant Varma and Justice Dharmesh Sharma has observed that the petitioner was complicit and actively involved in the evasion of duty and the intent of these parties to mis-declare imports while acting...

Return Not Filed Within Time Due To Unavoidable Circumstances: Allahabad High Court Directs Restoration Of GST Registration

The Allahabad High Court has directed restoration of GST registration of a firm as return could not be filed in time due to unavoidable circumstances. The Court noted that mother and sister of the petitioner died of prolonged illness, due to which petitioner suffered both mentally and financially, which were unavoidable circumstances.Petitioner was registered under Goods and Service Tax Act, 2017. The proprietor could not file returns for the petitioner for a consecutive period of six months. A...

Allahabad High Court Sets Aside Non-Speaking Order Cancelling GST Registration, Says Reason Is 'Heart Beat' Of Every Conclusion

The Allahabad High Court has held that any order devoid of reasons will become lifeless as reasons are the heartbeat of every order.“Reason is the heart beat of every conclusion. In the absence of reasons the order becomes lifeless. Non recording of reasons renders the order to be violative of principles of natural justice. Reasons ensures transparency and fairness in decision making. It enables litigant to know reasons for acceptance or rejection of his prayer. It is statutory requirement of...

No GST Payable On Gangajal, Clarifies CBIC

The Central Board of Indirect Taxes (CBIC) has clarified that no GST is payable on Gangajal.The Board stated that Gangajal is used in pooja by households across the country and puja samagri is exempt under GST.GST on puja samagri was discussed in detail in the 14th and 15th meetings of the GST Council held on 18/19 May, 2017 and 3rd Jun, 2017 respectively and decided to keep them in the exempt list. Therefore, all the items have been exempt since the introduction of GST.Click Here To Read The...

GST Act | No Provision To Disclose Route Of Transportation Of Goods: Allahabad High Court Quashes Demand

The Allahabad High Court has held that unlike the Value Added Tax Act, 2008, there is no specific provision in the Goods and Service Tax Act, 2017 which requires assesses to declare route of transportation/ transit of goods. Therefore, goods cannot be detained for not being transported through the regular route.A bench comprising of Justice Piyush Agrawal held,“Under the GST Act, there is no specific provision which bounds the selling dealer to disclose the route to be taken during...

GSTN Issues Advisory On Compliance Pertaining To Difference In ITC Available In GSTR-2B & ITC Claimed In GSTR-R3B

The Goods and Service Tax Network (GSTN) has issued the advisory in respect of introduction of compliance pertaining to DRC-01C (Difference in Input Tax Credit (ITC) available in GSTR-2B & ITC claimed in the GSTR-R3B).The Government inserted the Rule 88D in CGST Rule, 2017 dealing with difference in input tax credit available in GSTR-2B and ITC availed in GSTR-3B. The functionality has now started operating on the GST portal.The system now compares the ITC available as per GSTR-2B/2BQ with...

No Service Tax Payable On Supply Of Water And Electricity To The Tenants: CESTAT

The Hyderabad Bench of Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has held that there is no requirement to discharge any service tax on the supply of water and electricity to their concessionaires or tenants, who were paying for these two utility services on an actual basis plus a markup of 10%.The bench of Anil Choudhary (Judicial Member) and A.K. Jyotishi (Technical Member) has observed that the supply of water and electricity is essentially a sale of goods and therefore not...

Tax Claims Of The Govt. Extinguishes Post Approval Of Resolution Plan By NCLT: CESTAT

The Hyderabad Bench of Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has held that all claims prior to the National Company Law Tribunal (NCLT) approval date of government authorities in relation to all taxes for which the appellant was liable to pay shall stand extinguished on the approval date.The bench of Anil Choudhary (Judicial Member) and A.K. Jyotishi (Technical Member) has observed that any tax, duty, and legal liability for the period prior to the approval date will be...

Wrong Collection Of TCS On Purchase Of Coal For Generation Of Power: Jharkhand High Court Directs Refund

The Jharkhand High Court has directed the Tax Collected as Source (TCS) refund wrongfully collected despite verifying purchase of coal was used for generation of power.The bench of Justice Rongon Mukhopadhyay and Justice Deepak Roshan has observed that the root cause lies in the illegality committed by the Revenue in compelling Central Coalfields Limited (CCL) in effecting TCS qua the transactions of purchase of coal which according to the petitioner was genuinely used in generation of power....