No Service Tax Applicable On Providing Repair, Management And Maintenance Of Roads Services To NHAI: CESTAT

The Hyderabad Bench of the Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has held that no service tax is applicable to the repair, management, and maintenance of road services for the National Highway Authority of India (NHAI).The bench of Anil Choudhary (Judicial Member) and A.K. Jyotishi (Technical Member) has observed that the assessee has provided repair, management, and maintenance of roads services for NHAI and others, which fall under the category of maintenance or repair...

Reusing E-way Bills Demonstrates Intention Of Tax Evasion: Punjab And Haryana High Court Upholds Penalty Against Transporter

The Punjab and Haryana High Court has upheld the penalty against the transporter and ruled that reusing e-way bills demonstrates the intention of tax evasion.The bench of Justice G.S. Sandhawalia and Justice Harpreet Kaur Jeewan has observed that the ‘intention to evade payment of tax’ is an essential ingredient for initiating proceedings against a person under Section 130. The transporter had tried to reuse the e-way bills and the tax invoices; as such, the intention to evade the payment of tax...

Allahabad High Court Imposes 10K Cost On Income Tax Authority For Violation Of Principles Of Natural Justice

The Allahabad High Court on Wednesday imposed a cost of Rs. 10,000 to be paid by an erring officer of the Income Tax Department for violating the principles of natural justice while cancelling the earlier Assessment Order and initiating fresh proceedings under Section 263 of the Income Tax Act, 1961. Assessment of the Petitioner was completed under section 143(3) of the Income Tax Act. Thereafter, a notice under Section 263 (Revision of order pre-judicial to revenue) of the Act was issued to the...

Officer Concerned Not Authorized To Administer Oath, No Evidentiary Value: Delhi High Court

The Delhi High Court while upholding the ITAT’s ruling held that the addition of Rs. 10 crore was made purely on the basis of the statement made by directors without corroborative evidence.The bench of Justice Rajiv Shakdher and Justice Girish Kathpalia has observed that there is a qualitative difference between the statement recorded under Section 133A and Section 132(4) of the Income Tax Act. The statement recorded under Section 133A of the Act has no evidentiary value since the officer...

No Service Tax Payable On Penal Interest & Cheque Bouncing Charges Received By Bajaj Finance: CESTAT

The Mumbai Bench of the Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has held that penal interest and cheque bouncing charges received by Bajaj Finance as "consideration" for "tolerating an act" are not leviable to service tax under Section 66E(e) of the Finance Act, 1994.The Bench of S.K. Mohanty (Judicial Member) and M. M. Parthiban (Technical Member) has observed that demand for service tax in respect of the amount collected on account of bouncing of cheques cannot be...

Flue Gas Generated During Manufacturing Metallurgical Coke Is Not A Manufactured Product, Tata Steel Not Liable To Pay Excise Duty: CESTAT

The Kolkata Bench of Customs, Excise and Service Tax Appellate Tribunal (CESTAT) has held that the flue gas generated during the course of manufacturing metallurgical coke is not a manufactured product and is also not marketable.The bench of Ashok Jindal (Judicial Member) and K. Anpazhakan (Technical Member) has observed that the burden of proof that the product is marketable is on the department to prove that the flue gas in question is a marketable product. There is no market enquiry conducted...

Services For Drain Hole Drilling In The Existing Oil Wells Qualify As “Mining Services”: CESTAT

The Kolkata Bench of the Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has held that services for drain hole drilling in existing oil wells qualify as "mining services".The bench of Ashok Jindal (Judicial Member) and K. Anpazhakan (Technical Member) has observed that the activity of drilling core holes and test wells was held to be taxable only w.e.f. 01.06.2007 as services in relation to mining of minerals, oil, or gas. The activities qualify as "mining services", which came...

For Computing Holding Period For Capital Gain The Period To Be Taken From Date Of Allotment Of The Flat: ITAT

The Mumbai Bench of the Income Tax Appellate Tribunal (ITAT) has held that for computing the holding period for capital gain, the period is to be taken from the date of allotment of the flat.The bench of Aby T. Varkey (Judicial Member) and Om Prakash Kant (Accountant Member) has observed that for computing the holding period for capital gain, the period should not be taken from the date of the application of the flat. The rights of the assessee arise in the said flat only on the allotment and...

Delhi High Court Directs Adjudicating Authority To Process Blackberry’s Claim Of Interest Under Section 11BB Of The Excise Act

The Delhi High Court has directed the adjudicating authority to process Blackberry’s claim of interest under Section 11BB of the Excise Act.The bench of Justice Vibhu Bakhru and Justice Amit Mahajan has observed that there is no cavill that the petitioner would be entitled to interest in terms of Section 11BB of the Excise Act from the date immediately after the expiry of three months from the date of receipt of an application for a refund if it is not processed within the said period of three...

Defects In Statement Of Reportable Account Rectified Within The Time Limit: ITAT Deletes Penalty

The Chennai Bench of the Income Tax Appellate Tribunal (ITAT) has deleted the penalty as the defects in the statement of the reportable account were rectified within the time limit.The Bench of V. Durga Rao (Judicial Member) and Manjunatha, G. (Accountant Member) has observed that the provisions of sub-section (4) of Section 285BA of the Income Tax Act mandate that the defect be rectified within a period of one month from the date of intimation. The Reporting Entity has rectified the defects...

Classification Of Dr.Reddy’s Senquel-AD As A Mouthwash Or A Medicament: Kerala High Court Remands The Matter Back

The Kerala High Court has remitted the issue of the classification of Dr.Reddy’s Senquel-AD as a mouthwash or a medicament for fresh consideration.The bench of Justice A.K. Jayasankaran Nambiar and Justice Mohammed Nias C.P. has directed the authority to follow the decision of the Supreme Court in the case of Collector of Central Excise v/s CIENS Laboratories, in which it was held that if a product's primary function is "care" and not "cure," it is not a medicament. Cosmetic products are used to...

CBDT Allows Income Tax Exemption To State Pollution Control Board Odisha

The Central Board of Direct Taxes (CBDT) has notified income tax exemption under clause 46 of Section 10 of the Income-tax Act, 1961, to the State Pollution Control Board, Odisha.The income generated in respect of Regulatory charges under different Environmental Acts & Rules, penalties & Levies collected under governing statutes, grant-in-aid received from Central & State Governments; grant in Aid received on behalf of Central & State Governments in the capacity of nodal...