KVAT Act | Tax Doesn't Apply To Transfer Of Goods But To Transfer Of 'Right To Use' Goods: Kerala High Court

In a significant ruling, the Kerala High Court recently held that the tax under the KVAT Act applied not to the transfer of goods but to the transfer of the right to use goods.A division bench of Justice A.K Jayasankaran Nambiar and Justice Mohammed Nias CP added that the taxable event occurs when the contract for goods delivery is executed, irrespective of whether the transfer is exclusive."...in a contract for the transfer of the right to use the goods, the taxable event is the execution...

Exemption Claim On Service Of Rent-A-Cab Provided In SEZ To Be Supported By Invoices: CESTAT

The Ahmedabad Bench of Customs, Excise and Service Tax Appellate Tribunal (CESTAT) has held that exemption claim on service of rent-a-cab provided in Special Economic Zone (SEZ) to be supported by invoices.The bench of Ramesh Nair (Judicial Member) and C.L. Mahar (Technical Member) observed that the service of Rent-a-Cabs provided in SEZ is exempted however, though the assessee has claimed that it has submitted various documents such as balance sheet, ledger etc. both the lower authorities...

CBIC Notifies Procedure When Provisional Attachment Of Property Ceases To Have Effect

The Central Board of Indirect Taxes and Customs (CBIC) has notified the procedure to be followed with respect to section 83(2) of the CGST Act, 2017 when provisional attachment of property ceases to have effect.“Keeping in view the convenience of taxpayers, the Board prescribes the procedure that in such types of situations, the Commissioner shall issue communication/an intimation to the concerned authority/bank, drawing attention to the particulars of the Order/Form DRC-22 (which made the...

Income Tax Act; Mere Uploading Of Notice On Assessee’s E-Portal Is Not Proper Service: ITAT

The Chandigarh Bench of the Income Tax Appellate Tribunal (ITAT) has held that mere uploading of notice on the assessee’s e-Portal of the Income Tax Department is not proper service as per the Income Tax Act.The bench of Sanjay Garg (Judicial Member) and Vikram Singh Yadav (Accountant Member) has observed that service of notice on the portal alone without compliance with Section 282 of the Income Tax Act is bad, and the matter was therefore remanded for consideration afresh.The...

Fabrication Job With Help Of Labour Can’t Be Manpower Recruitment Or Supply Agency Service: CESTAT

The Ahmedabad Bench of the Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has held that carrying out a job of fabrication with the help of labour cannot be classified as manpower recruitment or supply agency service.The bench of Ramesh Nair (Judicial Member) and C.L. Mahar (Technical Member) has observed that the assessee had been assigned the job of fabrication by the service recipient, and the assessee has been charged on the basis of the quantum of the job and not on the basis...

Tax Cases Weekly Round-Up: 3 September To 9 September, 2023

Delhi High Court Delhi High Court Limits Adjustment Of Tax Refunds Against Disputed Demands At 20% Case Title: Jindal Stainless Ltd Versus DCIT The Delhi High Court has limited the adjustment of tax refunds against disputed demands to 20%. GST | Show Cause Notice Must Clearly Indicate Reasons For Which Registration Cancellation Is Proposed: Delhi High Court Case Title: M/S Frequent Logistics Services PVT. LTD. v. Commissioner Goods and Service Tax Department And ORS. ...

Bombay High Court Quashes Reassessment Notice Issued After 3 Years Without Proper Approval

The Bombay High Court has quashed the reassessment notice issued after 3 years without proper approval.The bench of Justice K.R. Shriram and Justice N. K. Gokhale has observed 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 absence of complying with this requirement, the reopening of assessment would fail.Section 151 states that the specified authority that has to grant his sanction for the purposes...

Overlooking Assesssee’s Reply Demonstrates Non-Application Of Mind By The AO: Delhi High Court

The Delhi High Court has quashed the draft assessment orders, final assessment orders, and consequential demand on the grounds that the assessing officer inadvertently overlooked the email reply of the assessee, in which the assessee disclosed vital facts pertaining to its case.The bench of Justice Rajiv Shakdher and Justice Girish Kathpalia has observed that the denial of sufficient time to respond was not just an abrogation of jus naturale but also infringed clause B(1) of the Standard...

Receipts From Provision Of Background Screening And Investigation Services To Clients In India Is Not Royalty/FTS: ITAT

The Delhi Bench of the Income Tax Appellate Tribunal (ITAT) has held that receipts from the provision of background screening and investigation services to clients in India are not royalties or fees for technical services (FTS).The bench of G.S. Pannu (President) and Astha Chandra (Judicial Member) has observed that the services rendered by the assessee do not involve any technical skill or knowledge or consultancy or make available any technical knowledge, experience, skill, know-how, or...

Bombay High Court Directs Dept. To Refund TDS Amount Deposited By Assessee Under Protest

The Bombay High Court, while invoking the doctrine of unjust enrichment, directed the department to refund the TDS amount deposited by the assessee under protest.The bench of Justice K. R. Shriram and Justice N. K. Gokhale has observed that technically, even though the amount deposited by the petitioner would be called ‘tax deductible at source’, what the petitioner paid was ‘an ad hoc amount, not technically a TDS amount’. Moreover, since it is also confirmed by the Court that the amount...

CISF Lacked Clarity About Leviability Of Service Tax On The Security Services; CESTAT Quashes Penalty

The Ahmedabad Bench of the Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has quashed the penalty on the Central Industrial Security Force (CISF) on the grounds that CISF lacked clarity about the leviability of service tax on the security services.The bench of Ramesh Nair (Judicial Member) and C. L. Mahar (Technical Member) observed that since there was a lack of clarity about the leviability of service tax on security services provided by the Central Industrial Security Force as...

Development Agreement Not To Be Treated As Transfer Of Possession Of Land: Bombay High Court Quashes Reassessment Notice

The Bombay High Court has quashed the reassessment notice and held that the granting of a licence for the purpose of development of the flats and selling the same could not be said to be granting possession.The bench of Justice K. R. Shriram and Justice N.K. Gokhale has relied on the decision of the Supreme Court in the case of Seshasayee Steels (P) Ltd. v. Assistant Commissioner of Income Tax VI(2), Chennai, in which it was held that the assessee had only granted a licence to a developer who...