Tax
CBIC Prohibits Import Policy Of The Pocket Lighters, Gas Fuelled, Non-Refillable
The Central Board Of Indirect Taxes and Customs (CBIC) has amended the import policy for pocket lighters that are gas-fueled and non-refillable.As per the existing policy, the import of Pocket lighters, gas-fueled, non-refillable, and refillable, was free.As per the revised policy, the import of pocket lighters that are gas-fueled, non-refillable, or refillable is prohibited. However, import is "Free" if the CIF value is Rs. 20 or above per lighter.Instruction No. 21/2023-Customs Date: July 5,...
Fair Price Shops Supplying Essential Commodities To Ration Card Holders Are Not Liable To Charge GST To The State Government: West Bengal AAR
The West Bengal Authority of Advance Ruling (AAR) has ruled that Fair Price Shops (FPS) supplying essential commodities, specifically Super Kerosene Oil (SKO), under the Public Distribution System (PDS) to ration card holders are not liable to charge GST to the State Government.The bench of Sarthak Saxena and Joyjit Banik has observed that Entry 11A of Notification No. 12/2017-Central Tax (Rate), which offers a nil tax rate for FPS supplying services to the state government against commission or...
No Liability Of Knight Riders To Pay Service Tax On Coaching Service Provided In Relation To Sports: CESTAT
The Mumbai Bench of the Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has held that Knight Riders are not liable to pay service tax on coaching services provided in relation to sports.The bench of S.K. Mohanty (Judicial Member) and M.M. Parthiban (Technical Member) has observed that coaching in the field of sports has been specifically excluded from the applicability of service tax under the definition of ‘commercial training or coaching centre under Section 65(27) of the Finance...
No Case Of Tax Evasion Made Out As Goods Meant For Export Were Taken Back To The Factory For Repairs: Calcutta High Court
The Calcutta High Court has held that no case of tax evasion was made out as goods meant for export were taken back to the factory for repairs.The bench of Chief Justice T. S. Sivagnanam and Justice Uday Kumar has observed that as per the e-Way Bill, no tax was payable since the goods, which were owned by the appellants, were taken back to their factory at Ranchi for repairs. The goods were detained while in transit at about 8.20 a.m. on September 13, 2019. In terms of Rule 138(10) of the WBGST...
Correctness Of Information Available Cannot Be Gone Into Prior To Issuance Of Notice U/S 148 Income Tax Act: Allahabad High Court
The Allahabad High Court has dismissed a writ petition challenging the validity of the order under Section 148A(d) of the Income Tax Act, 1961 and the consequential notice under Section 148 of the Act on the grounds that the correctness of the information based on assessee’s defense can be determined in the assessment proceedings under Section 148 of the Act. The scope of enquiry under Section 148A(d) is only to the extent of (un)availability of information suggesting that income has escaped...
Self-Assessment Of Assessee Not Rendered Malafide Merely Because It Was Based On A CETSTAT View Which Was Later Overturned : Supreme Court
The Supreme Court has upheld the decision of the Ahmedabad bench of the Customs, Excise & Service Tax Appellate Tribunal (CESTAT) by holding the demand for differential excise duty raised against the assessee, M/s Reliance Industries Ltd, as time barred.The court dismissed the contention that Reliance had deliberately suppressed and withheld material information and documents from the departmental officers by not filing the same and thus, the ground for invoking the extended period of...
Compensation Paid By Builder For Delay In Handing Over Possession Of Flat Is Part Of Work-In-Progress: ITAT Allows Deduction
The Pune bench of the Income Tax Appellate Tribunal (ITAT) has held that compensation paid by a builder for the delay in handing over possession of a flat should be considered part of work-in-progress. As a result, the ITAT allowed the deduction of the compensation. The case pertains to Mr. Jayant Hari Mulay, a promoter and builder who had purchased a plot of land for the construction of flats. According to the agreement, Mulay was obligated to hand over certain completed flats to the...
Gujarat High Court Quashes Reopening Of Assessment Order And Notice In Land Acquisition Case, Rules Compensation Not Taxable As Capital Gains
The Gujarat High Court while quashing the reopening of an assessment order and notice issued to the petitioner in a land acquisition case, has ruled that compensation received for compulsory acquisition of land is not taxable as capital gains. While passing the above ruling, the division bench of Justices Ashutosh Shastri and C. Doshi underscored that the authorities' action was based on a mere change of opinion and lacked justification. The case centered around Anilaben Rohitbhai...
Interest Is Payable Only If Wrongly Availed ITC Is Utilised: CBIC
The Central Board of Indirect Taxes and Customs (CBIC) has notified that interest is payable only if wrongly availed ITC is utilized.On the occasion of the six-year anniversary of the introduction of the GST, the CBIC explains that taxpayers are only liable to pay interest if they used an incorrectly claimed Input Tax Credit (ITC) to satisfy their GST due.A decision from the retrospective date (01.07.2017) has been taken to provide relief to the taxpayers where interest has to be paid from the...
Taxation Classification | Specific Provision Will Prevail Over General Provision In A Statute : Supreme Court In ‘Maize Starch’ Case
The Supreme Court has ruled that if in any statutory rule or statutory notification, two expressions are used - one in general words and the other in special terms – then, as per the rules of interpretation, the special terms are not meant to be included in the general expression. Alternatively, the court said that where a statute contains both a general provision as well as a specific provision, the latter must prevail.The bench of Justices S. Ravindra Bhat and Dipankar Datta made the...
Charges Of Clandestine Removal Not Sustainable Merely On The Basis Of Difference In Figures Of Audit Report And ER-1 Return: CESTAT
The Kolkata Bench of the Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has held that charges of clandestine removal are not sustainable merely on the basis of the difference in figures between the audit report and the ER-1 return.The bench of Ashok Jindal (Judicial Member) and K. Anpazhakan (Technical Member) has observed that merely on the basis of the difference in the figures of the audit report and the ER-1 return without establishing the parameters of clandestine...
Bombay High Court Allows IGST Refund On Zero Rated Supply Along With 7% Interest
The Bombay High Court has allowed the refund of IGST on zero-rated supply along with 7% interest.The bench of Justice G.S. Kulkarni and Justice Jitendra Jain has observed that the petitioner was entitled to a refund of the IGST paid on the exports in question, as it is certain that this is not a case where the petitioner is availing of any double benefit, that is, the IGST refund and a higher duty drawback.The petitioner/assessee claimed an amount of Rs. 21,41,451 in respect of the zero-rated...