52nd GST Council Meet: Nil GST Rate For Food Preparation Of Millet Flour In Powder Form

The GST Council recommended nil rate for food preparation of millet flour in powder form and containing at least 70% millets by weight when sold in loose form.GST rates on “Food preparation of millet flour in powder form, containing at least 70% millet by weight”, falling under HS 1901, with effect from the date of notification. 0% if sold in other than pre-packaged and labelled form and 5% if sold in pre-packaged and labelled form."The GST Council want to participate in the Year of Millets. In...

GST Council Recommends To Keep ENA Used For Manufacturing Alcoholic Liquor For Human Consumption Outside GST

The 52nd GST Council met under the Chairpersonship of Union Minister for Finance & Corporate Affairs Smt. Nirmala Sitharaman recommended keeping Extra Neutral Alcohol (ENA) used for the manufacture of alcoholic liquor for human consumption outside GST.The Law Committee will examine suitable amendments in law to exclude ENA for use in the manufacture of alcoholic liquors for human consumption from the ambit of GST.To reduce GST on molasses from 28% to 5%. This step will increase liquidity...

GST Council Recommends Reducing GST On Molasses From 28% to 5% In Relief To Cane Farmers For Faster Clearance Of Dues And To Reduce Cost Of Manufacturing Cattle Feed

The 52nd GST Council met under the Chairpersonship of Union Minister for Finance & Corporate Affairs Smt. Nirmala Sitharaman recommends reducing GST on molasses from 28% to 5% in relief to cane farmers for faster clearance of dues and to reduce the cost of manufacturing cattle feed.Reducing GST on molasses from 28% to 5% will increase liquidity with mills and enable faster clearance of cane dues to sugarcane farmers. This will also lead to a reduction in cost for the manufacture of cattle...

52nd GST Council Recommends Amendments In Conditions Of Appointment Of President And Member Of Proposed GST Appellate Tribunals

The 52nd GST Council met under the Chairpersonship of Union Minister for Finance & Corporate Affairs Smt. Nirmala Sitharaman is in New Delhi today.The council recommended the amendments in conditions of appointment of president and member of proposed GST Appellate Tribunals.The Council has recommended amendments in section 110 of the CGST Act, 2017 to provide that an advocate for ten years with substantial experience in litigation under indirect tax laws in the Appellate Tribunal, Central...

[Section 220 Income Tax Act] Cannot Escape Payment Of Interest Merely Due To Wrong PAN Number In Order: Madras High Court

The Madras High Court recently observed that PAN particulars are only one of the modes to identify an individual and merely because a wrong PAN number was given in the order by the Adjudicating officer of SEBI, a person could not escape payment of interest. Justice N Seshasayee observed that when the penalty itself was paid, the petitioner could not escape payment of interest which was merely incidental to the penalty, by claiming that the order had wrong PAN particulars. “The PAN...

Madras High Court Allows Company To File Statutory Appeal After Limitation Period Noting That It Could Not Check GST Portal Due To Lack Of Employees

The Madras High court recently allowed a company to file a Statutory Appeal against the Assessment Order passed by the Assistant Commissioner (ST) (FAC) even though the limitation period to file an appeal had expired after noting that the company failed to access the notice in the GST portal. Justice C Saravanan observed that though the Supreme Court has held that orders could not be challenged under Article 226, the court was inclined to consider the company’s case and condone the...

ITAT Confirms Addition Of Expenses Incurred On Brand Reminders, Customer Gifts For Doctor

The Mumbai Bench of Income Tax Appellate Tribunal (ITAT) has confirmed the addition towards expenses incurred on brand reminders, customer gifts, and the purchase of medical books and journals for doctors.The bench of Rahul Chaudhary (Judicial Member) and Prashant Maharishi (Accountant Member) has relied on the decision of the Supreme Court in the case of Apex Laboratories, in which it was held that any free gift in any manner is prohibited by the provisions of the Indian Medical Council’s...

Service Tax Rebate Can Be Allowed Subject To Receipt Convertible Foreign Exchange Against Each Invoice: CESTAT

The Mumbai Bench of Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has observed that unless it is established that against every invoice convertible foreign exchange has been received, the rebate of service tax paid in respect of that invoice cannot be allowed to the exporter.The bench of Dr. Suvendu Kumar Pati (Judicial Member) and Anil G. Shakkarwar (Technical Member) has remanded the matter to the original authority with a direction not to raise any other issue and examine...

ALP Of The ESOP Expenses Cannot Be Taken As ‘Nil’: ITAT

The Mumbai Bench of Income Tax Appellate Tribunal (ITAT) has held that the arm's-length price (ALP) of the employee stock option plan (ESOP) expenses cannot be taken as ‘Nil’.The bench of Rahul Chaudhary (Judicial Member) and S. Rifaur Rahman (Accountant Member) has observed that the transfer pricing addition of INR 26,53,078 is, therefore, set aside, and the TPO/Assessing Officer is directed to re-compute the ALP and the transfer pricing adjustment, if any, by following the method adopted by...

Bombay High Court Quashes Reassessment Against Knight Riders Sports

The Bombay High Court has quashed the reassessment against Knight Riders Sport and held that a change of opinion does not constitute justification to believe income chargeable to tax escaped assessment.The bench of Justice K. R. Shriram and Justice Kamal Khata has observed that there is a change of opinion because once a query has been raised during the assessment and has been answered and accepted by the AO while passing the assessment order, it follows that the query raised was a subject of...

Once Sanction Is Given To A Particular Authority Wilful Tax Evasion Prosecution Has To Be Launched By Him Alone: Telangana High Court

The Telangana High Court has overturned the assessee's wilful tax evasion prosecution before the Special Judge for Economic Offences.The bench of Justice G. Anupama Chakravarthy has observed that once the sanction has been given to a particular authority, i.e., the Deputy Director of Income Tax, the prosecution has to be launched by him alone and not by the Assistant Director of Income Tax, who did not have the power to launch the prosecution proceedings.The petitioner, under Section 482 of the...

Redemption Fine And Customs Duty Not Required To Be Paid When Goods Are Allowed To Be Re-Exported: CESTAT

The Mumbai Bench of Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has held that when the goods are allowed to be re-exported, neither the redemption fine nor duty is required to be paid. At the same time, the penalty is also not to be imposed on the importers.The bench of Anil G. Shakkarwar (a technical member) allowed the six appeals and observed that a penalty to the extent of 20% of the assessable value of the goods confiscated and ordered for re-export was imposed, and the...