Gujarat High Court Quashes Order Rejecting Refund Claim By Vodafone-Idea

The Gujarat High Court has ruled in favor of M/S Vodafone Mobile Services Limited, a prominent telecommunications provider, in a case challenging the rejection of their claim for a tax refund under the Goods and Services Tax (GST) regime.The petitioner, M/S Vodafone Mobile Services Limited, had undergone a merger with Idea Cellular Limited on August 30, 2018, following an order issued by the National Company Law Tribunal. Subsequently, the merged entity migrated to the GST regime, registering...

CBDT Notifies Exchange Rate For TDS Deduction On Income Payable In Foreign Currency

The Central Board of Direct Taxes (CBDT) has notified the rate of exchange for the purpose of deducting tax at source (TDS) on income payable in foreign currency.The board has inserted Rule 26 in the Income-tax Rules, 1962, by notifying the Income-tax (Seventeenth Amendment) Rules, 2023.As per the new Rule, for deducting the TDS on any income payable in foreign currency, the rate of exchange for the calculation of the value in rupees of the income payable shall be the telegraphic transfer buying...

Labor Cess Inapplicable To Material Supply And Consultancy Charges: Jharkhand High Court

The Jharkhand High Court has ruled that Labor Cess should not be imposed on the supply of materials and consultancy charges for a contract that is different from civil works contracts. This decision came after the State appealed against a ruling made by a Single Judge Bench on June 13, 2022. The Single Judge Bench had stated that Labor Cess is not applicable to the supply of materials and consultancy charges for a contract that is distinct from civil works contracts.The State argued that the...

Income Tax Dept. Not Under The Obligation To Grant Additional Tax Concession As Per BIFR’s Order: Delhi High Court

The Delhi High Court has held that the income tax department is not under the obligation to grant additional tax concessions as per the order passed by the Board for Industrial and Financial Reconstruction (BIFR).The bench of Justice Vibhu Bakhru and Justice Amit Mahajan has observed that the obligation to extend further concessions could not be imposed on the Central Government (Income Tax Department) without its consent. The Income Tax Department had not consented to extend any concession. And...

Gujarat High Court Quashes Faceless Assessment Order For Lack Of Proper Opportunity Of Hearing

The Gujarat High Court has quashed the faceless assessment on the grounds that there is only a day for the assessee to respond so as to save the limitation period.The bench of Justice Biren Vaishnav and Justice Devan M. Desai has observed that the order under Section 263 of the Act was passed by the PCIT-4 on March 16, 2020. No action was taken thereafter for over 17 months. At the far end of the schedule, when the time limit to complete the assessment was to come to an end, the department on...

Supreme Court Recalls Judgment Holding That No Indirect Taxes Can Be Levied On Duty Free Shops At Airports

The Supreme Court has recalled its Division Bench judgment dated 10 April 2023, where the top court had ruled that Duty Free Shops situated in the arrival or departure terminals of Airports are outside the customs frontiers of India and therefore, they cannot be saddled with any indirect taxes like the Service Tax.While allowing the review plea filed by the Commissioner of CGST and Central Excise against the Supreme Court’s verdict in Commissioner of CGST and Central Excise vs Flemingo Travel...

Govt. Notifies Increase In Special Additional Excise Duty On The Export Of Diesel and ATF

The government has notified the increase in special additional excise duty on the export of Diesel and Aviation Turbine Fuel (ATF) with effect from 15 August 2023.A new amendment to Notification No. 04/2022-Central Excise, dated June 30, 2022, has been announced by the Ministry of Finance. The notification seeks to prescribe rates of Special Additional Excise Duty for exports of petrol and diesel.The Special Additional Excise Duty on fuel and ATF exports is changed to Rs. 5.50 per litre.The...

CBDT Notifies Computation Of Income Chargeable To Tax For Amount Received Under Life Insurance Policy

The Central Board of Directed Taxes (CBDT) has notified the computation of income chargeable to tax for the amount received under the life insurance policy.The CBDT has inserted Rule 11UACA in the Income-tax Rules,1962 by notifying Income tax Amendment (Sixteenth Amendment), Rules, 2023.Rule 11UACA states the manner of computation where any person receives at any time during any previous year any sum under a life insurance policy.The sum received under a life insurance policy would mean any...

Savoury Oats And Silk Oats Are Classified As ‘Cereal’, Does Not Attract Excise Duty: CESTAT

The Chennai Bench of the Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has held that savoury oats and silk oats are classified as ‘cereal’ and do not attract excise duty.The bench of Sulekha Beevi C.S. (Judicial Member) and Vasa Seshagiri Rao (Technical Member) has observed that savoury oats and silk oats are classifiable under Chapter Heading 1104-1200.The appellant/assessee is in the business of manufacturing and clearing excisable goods, viz., masala and coriander oats, curry...

Interconnectivity Utility Charges From Indian Customers/End Users Can’t Be Considered As Royalty/FTS: CESTAT

The Banglore Bench of the Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has held that payments received by the assessee towards interconnectivity utility charges from Indian customers or end users cannot be considered royalties or fees for technical services (FTS).The bench of Beena Pillai (Judicial Member) and Chandra Poojari (Accountant Member) has observed that the payment received by the non-resident assessee amounts to the business profits of the assessee, which are taxable...

Delhi High Court Quashes Income Tax Penalty Notice Issued On The Strength Of A Non-Existent Assessment Order

The Delhi High Court has quashed the penalty notice issued on the strength of a non-existent assessment order.The bench of Justice Rajiv Shakdher and Justice Girish Kathpalia has observed that the department had issued a show cause notice for penalty under Section 271 F on the strength of an assessment order dated May 9, 2023, which was already set aside by the Division Bench of the Delhi High Court vide judgement dated May 31, 2023.The petitioners are the legal heirs of the deceased assessee,...

Notice Lacked Reasons to Show Wrongful Availment Of ITC: Delhi High Court Releases Seized Currency, Other Valuable Assets

The Delhi High Court has directed the release of the currency and other valuable assets seized from the petitioner during the search proceedings.The bench of Justice Vibhu Bakhru and Justice Purushaindra Kumar Kaurav has observed that the notice under Section 74 of the CGST Act does not specify any particular reasons to show that "input tax credit has been wrongly availed of or utilised."The petitioner carries on business trading in non-ferrous metals. The petitioner/assessee sought directions...