Tax
CESTAT Quashes Confiscation Of Goods, Imposition Of Redemption Fine, Penalty, Customs Duty Demand In Absence Of CLRI Report
The Chennai Bench of the Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has held that it quashes confiscation of goods, imposition of redemption fines, penalties, and customs duty demands in the absence of the Central Leather Research Institute, Chennai (CLRI) Report.The bench of Sulekha Beevi C.S. (Judicial Member) and Vasa Seshagiri Rao (Technical Member) has observed that the CLRI report is a very crucial document in deciding the issue as to whether the impugned goods are...
Interconnectivity Utility Charges Can’t Be Taxed As Royalty Under India-Austria Tax Treaty: ITAT
The Bangalore Bench of the Income Tax Appellate Tribunal (ITAT) has held that interconnectivity utility charges (IUC) cannot be taxed as royalty under the India-Austria Double Taxation Avoidance Treaty (DTAA).The bench of Beena Pillai (Judicial Member) and Chandra Poojari (Accountant Member) has observed that payments received by the assessee towards interconnectivity utility charges from Indian customers or end users cannot be considered royalties to be brought to tax in India under Section...
Customs Broker Licence Can’t Be Revoked On Mere Charge Of Mis–Declaration And Undervaluation Of The Illegal Imports: CESTAT
The Delhi Bench of the Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has held that the licence cannot be revoked on a mere charge of misdeclaration and undervaluation of illegal imports.The bench of Binu Tamta (Judicial Member) and Hemambika R. Priya (Technical Member) has observed that the punishment has to be commensurate with the misconduct and that the charges against the appellant/customs broker are not so grave that the extreme punishment of revocation of licence is called...
Accused Entitled To Cross-Examine Statements Of Natural Person Recorded Under Customs Act, 1962: Calcutta High Court
The Calcutta High Court has held that the accused is entitled to cross-examine natural persons whose statements were recorded under the Customs Act, 1962.The bench of Justice Debangsu Basak and Justice Md. Shabbar Rashidi observed that the appellant or accused can be said to be prejudiced for not having been granted the right of cross-examination in as much as the appellant lost the opportunity to establish the truthfulness of the statement made by the natural person.The issue raised was whether...
No Further Recovery Of Demand Can Be Made When A Fresh Assessment Is Barred: Karnataka High Court Directs Rs.87 Crore Refund To United Spirits
The Karnataka High Court has held that no further demand can be made for recovery of the balance amount since a fresh assessment is barred. In other words, the tax paid by the assessee must be accepted as it is, and in the event of the tax paid being in excess of the tax liability duly computed on the basis of the return furnished and the rates applicable, the excess shall be refunded to the assessee.The bench of Justice B. M. Shyam Prasad, while quashing the demand notice issued in the name of...
ITAT Directs Dept. To Allow Interest Paid On Borrowings Against FD Income If Reasonable Link Exists
The Mumbai Bench of the Income Tax Appellate Tribunal (ITAT), while remanding the matter back to the department, held that the interest paid on borrowings is allowable against FD income if any reasonable link exists.The bench of Amit Shukla (Judicial Member) and Padmavathy S. (Accountant Member) has directed the assessing officer to consider the movement in the FD account and the loan account to understand the nexus and also to consider the alternate claim of interest as business expenditure...
Excess Amount Paid In Service Tax Can Be Adjusted Against The Short Payment In Education Cess: CESTAT
The Kolkata Bench of the Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has held that the excess amount paid in service tax can be adjusted against the short payment in education cess.The bench of Ashok Jindal (Judicial Member) and K. Anpazhakan (Technical Member) has observed that the cenvat credit of basic central excise duty can be utilised for payment of education cess and vice versa. The same analogy is applicable for service tax as well.The appellant/assessee is in the...
GSTN Introduces Electronic Credit Reversal And Reclaimed Statement
The Goods and Service Tax Network (GSTN) has introduced the Electronic Credit Reversal and Reclaimed Statement.The government introduced certain changes in Table 4 of Form GSTR-3B so as to enable the taxpayers to report correct information regarding ITC availed, ITC reversal, ITC reclaimed, and ineligible ITC. The re-claimable ITC earlier reversed in Table 4(B)2 may be subsequently claimed in Table 4(A)5 on fulfilment of the necessary conditions. The reclaimed ITC in Table 4(A)5 also needs to be...
Tax Cases Weekly Round-Up: 27 August To 2 September, 2023
Delhi High Court DGGI Can’t Be Stopped From Taking Intelligence-Based Enforcement Action When Investigation By Other Authority Is Going On: Delhi High Court Case Title: M/S. Hanuman Enterprises Pvt. Ltd. Versus The Additional Director General Directorate General Of GST Citation: 2023 LiveLaw (Del) 756 The Delhi High Court has held that the Directorate General of Goods and Service Tax Intelligence (DGGI) cannot be stopped from taking intelligence-based enforcement action...
Tax Cases Monthly Round Up:August 2023
Indirect Taxes Supreme Court Excise Duty Exemption | To Determine If A Product Falls Under Description "Intravenous Fluids”, Its Composition & Not Its Use Matters : Supreme Court Case Title: Commissioner of Central Excise vs M/s Denis Chem Lab Ltd. & Anr. Citation : 2023 LiveLaw (SC) 650 The Supreme Court has ruled that in order to determine whether a product would fall under the description of “Intravenous Fluids” so as to be eligible for exemption from excise...
Olivol Body Oil Takes Care Of The Skin, And Doesn’t Cure Skin, Attracts 28% GST: AAR
The West Bengal Authority of Advance Ruling (AAR) has ruled that Olivol Body Oil takes care of the skin but does not cure it. Olivol Body Oil is covered under tariff heading 3304.The bench of Tanisha Dutta and Joyjit Banik has observed that olivol body oil is commonly understood as preparations for the care of skin, thereby being considered a cosmetic product used to get soft and smoother skin and not a medicament used for the treatment or prevention of any disease or ailment.The applicant...
Bombay High Court Refuses 50% Entitlement Of Beneficial Ownership In Husband's Shareholding By Portuguese Civil Code For 'Deemed Dividend' Taxability
The Bombay High Court has refused 50% entitlement to beneficial ownership in a husband's shareholding under the Portuguese Civil Code for 'deemed dividend' taxability.The bench of Justice Valmiki SA Menezes has observed that Section 2(6A)(e) in the Income Tax Act, 1922, which is similar to the provisions of Section 2(22) of the Income Tax Act, 1961, creates a deeming fiction, by which the dividend referred to is not a real dividend and the person deemed to have received it does not actually get...