CESTAT Upholds Service Tax Demand Against The Service Provider Based On ONGC’s Reply

The Kolkata Bench Of Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has upheld the service tax demand against the service tax provider based on ONGC’s reply.The bench of Ashok Jindal (Judicial Member) and K. Anpazhakan (Technical Member), while dealing with the issue of whether the appellant has recovered service tax from ONGC or not, noted that the only evidence available on record is that ONGC has stated in reply to a query made by the respondent department that the amount has...

Bill Discounting Facility Could Be Offered Not Only By Banking Company But Also By A Body Corporate: CESTAT

The Chennai Bench of the Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has observed that bill discounting facilities could be offered not only by a banking company or a financial institution but also by a body corporate.The bench of P. Dinesha (Judicial Member) and M. Ajit Kumar (Technical Member) has observed that service tax is payable on ‘bill discounting’ under banking and other financial services (BFS).The appellant/assessee is a registered service provider for the Goods...

CBDT Allows Income Tax Exemption To Joint Electricity Regulatory Commission

The Central Board of Direct Taxes (CBDT) has exempted the Joint Electricity Regulatory Commission from Income tax under clause 46 of Section 10 of the Income-tax Act, 1961.The Central Government notified income tax exertion to the Joint Electricity Regulatory Commission, a commission constituted by the Government of India, in respect of petition fees, licence fees, other income in respect of reimbursement of Ombudsman expenses, profit on sale or disposal of assets, and interest earned.The...

Central Board Of Direct Taxes Issues Guidelines For Compulsory Selection Of Returns For Complete Scrutiny In FY 2023-24

The Central Board of Direct Taxes (CBDT) has recently issued comprehensive guidelines for the compulsory selection of income tax returns for Complete Scrutiny during the Financial Year 2023-24.The notification said that , based on Guidelines dated 24.05.2023 issued from F.No. 225/66/2023 /ITA-II, various letters/queries have been received in the Board from DsGIT(Inv.) and CCsIT(Central) regarding centralization of cases u/s 127 of the Income-tax Act,1961 (`the Act’) subsequent to issuance of...

Shifting Of Commissionerates, Re-Organisation Of Office, Not A Valid Justification For Inordinate Delay In SCN Adjudication: Bombay High Court

The Bombay High Court has held that the belated hearing of the show cause notice would amount to a violation of the principles of natural justice."Merely for the reason that there was shifting of the Commissionerates and reorganisation of its office, there would be no reason to abdicate and/or not comply with the obligations under the Act to promptly and/or expeditiously adjudicate the show cause notice, to be taken to its logical conclusion," the bench of Justice G.S. Kulkarni and Justice...

Weighment Of Goods By FCI Is Not Covered Under “Business Auxiliary Service”: CESTAT

The Chandigarh Bench of the Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has held that undertaking the weighment of goods by the Food Corporation Of India (FCI) is not covered under "business auxiliary service".The bench of S. S. Garg (Judicial Member) And P. Anjani Kumar (Technical Member) has observed that weighment by the FCI is done to ensure that the declared quantity of grains is supplied by the agencies. Therefore, it cannot be said that the weighment is a service, let...

Income Tax Department Introduces Young Professional Scheme to Assist Officers in Income Tax Appellate Tribunal (ITAT)

In a bid to bolster its resources and streamline tax litigation management, the Income Tax Department, under the Ministry of Finance, Government of India, has launched the Young Professional Scheme. This scheme aims to engage young graduates in Law and Accountancy on a full-time basis, providing valuable support to Departmental Officers across various benches of the Income Tax Appellate Tribunal (ITAT) nationwide.The Young Professional Scheme is designed to leverage the expertise and domain...

Tax Cases Weekly Round-Up: 30 July To 5 August, 2023

Delhi High Court No TDS Deductible On Commission Payment To Non-Resident Agent Overseas: Delhi High Court Case Title: PCIT Versus Maharani Enterprises The Delhi High Court has held that commission payments to non-resident agents overseas are not chargeable to tax and there is no TDS required to be deducted under Section 195 of the Income Tax Act. Bombay High Court No Order On Merits Can Be Passed If Appeal Is Defective For Non-Production Of Certified Copy: Bombay High Court ...

Gujarat High Court Quashes Orders Rejecting Declaration Under SVLDRS Scheme, Directs Acceptance Of Declaration

The Gujarat High Court has rendered a verdict in favor of M/S Fta Hsrp Solutions Pvt, setting aside the rejection of their declaration filed under the Sabka Vishwas (Legacy Dispute Resolution) Scheme, 2019 (SVLDRS). The court has directed the designated committee, Sabka Vishwas Dispute Resolution Scheme, to accept the petitioner's declaration and bring closure to the tax dispute. The petitioner, a private limited company engaged in providing taxable service of installation of...

Gujarat High Court Orders Refund Of IGST With Interest In An Inadvertent Tax Payment Case

The Gujarat High Court has directed the refund of the Integrated Goods and Service Tax (IGST) amount, along with applicable interest, to a petitioner who inadvertently paid IGST at a higher rate than the concessional rate applicable.The petitioner, Tagros Chemicals India Pvt. Ltd., had been registered under GST since its introduction, and the case pertained to a purchase order received from Quality Biz Chem India Pvt. Ltd., Mumbai, for the supply of goods intended for export.The petitioner,...

CESTAT Allows CENVAT Credit To Hero Motocorp On Helmet Locks Supplied Along With Motorcycles

The Chandigarh Bench of Customs, Excise and Service Tax Appellate Tribunal (CESTAT) has allowed the CENVAT Credit to Hero Motocorp on helmet locks supplied along with motorcycles.The bench of S. S. Garg (Judicial Member) and P. Anjani Kumar (Technical Member) observed that as per the provisions of the Motor Vehicle Act, a Helmet and lock are required to be supplied along with the motorcycles. It is a statutory provision, helmet lock is an “input” for the manufacture of Motorcycles.The...

DGFT Imposes Import Restrictions On Laptops, Tablets, Computers & Servers With Immediate Effect

The Directorate General Of Foreign Trade (DGFT) has notified the import restrictions on laptops, tablets, computers & servers with immediate effect.The import of Laptops, Tablets, All-in-one Personal Computers, and Ultra small form factor Computers and Servers falling under HSN 8471 shall be ‘Restricted’ and their import would be allowed against a valid Licence for Restricted Imports.The Restriction shall not be applicable to Imports under Baggage Rules, as amended from time to...