‘Duty Credit Scrips’ To Be Excluded From The Value Of Exempt Supply To Compute ITC Reversal: AAR

The Telangana Authority of Advance Ruling (AAR) has ruled that "duty credit scrips" shall be excluded from the value of exempt supply.The bench of S.V. Kasi Visweswara Rao and Sahil Inamdar has observed that the relevancy of the turnover pertaining to the sale of "duty credit scrips" does not arise in the computation of the refund of an input tax credit, availed in respect of inputs received.The applicant deals in the export of cotton lint-fully pressed cotton bales. They have submitted that...

18% GST Payable On Target-Based Incentive Received By Intel Reseller: AAAR

The Maharashtra Appellate Authority of Advance Ruling (AAAR), while upholding the Order of the AAR, ruled that 18% GST is payable on target-based incentives received by Intel resellers.The bench of D.K. Srinivas and Rajeev Kumar Mital has observed that The incentive received by the reseller from a US company is not a "trade discount."The appellant is a reseller of Intel Products. The Appellant is having their main place of business in Maharashtra. The Appellant purchases the products from...

GST Act Has An Inbuilt Mechanism And Impliedly Excludes The Application Of The Limitation Act: Kerala High Court

The Kerala High Court has held that Section 107 of the CGST Act is an inbuilt mechanism and has impliedly excluded the application of the Limitation Act.The bench of Justice C.S. Dias has observed that the Limitation Act will apply only if it is extended to the special statute. It is also rudimentary that the provisions of a fiscal statute have to be strictly construed and interpreted.The assessee/petitioner is a firm engaged in direct marketing. The petitioner had a GST registration. Due to the...

Life Tax On Vehicle Should Be On The Cost, Excluding GST And Cess: Andhra Pradesh High Court Directs Refund

The Andhra Pradesh High Court has held that life tax is to be collected from the vehicle owner upon sale based on the net invoice price of the vehicle and not the ex-showroom price of the vehicle.The bench of Justice V. Sujatha has observed that the life tax can be levied only on the cost of the vehicle under the 6th schedule of the A.P. Motor Vehicles Taxation Act, 1963.The assessee or petitioner has purchased the Hyundai Venue. At the time of purchase, the petitioner paid 14% CGST and 14%...

Excise Commissioner Is Duty Bound To Cancel Liquor Licence On The Application Of Legal Heirs Of The Deceased: Bombay High Court

The Bombay High Court, Goa Bench has held that when the legal heirs of the deceased license holder applied for cancellation, the excise commissioner was duty-bound to cancel it.The bench of Justice Bharat P. Deshpande has observed that the transfer of liquor licenses is at the discretion of the concerned authority.The petitioner challenged the order passed by the Commissioner of Excise, who canceled the liquor license for the retail sale of IMFL and CL for consumption standing in the name of the...

No Service Tax Payable On Administrative Charges Received From Coal Mine Companies By Coal Mines PF Organization: CESTAT

The Kolkata Bench of the Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has held that service tax is not payable on administrative charges received from coal mine companies by the Coal Mines Provident Fund Organisation.The bench of P.K. Choudhary (Judicial Member) and K. Anpazhakan (Technical Member) observed that since there is no service provider-service recipient relationship and in the absence of ‘consideration’ which condition is a sine qua non as per the definition of...

Bogus Long-Term Capital Gains From Transaction In Penny Stocks: ITAT Upholds Addition

The Ahmedabad Bench of the Income Tax Appellate Tribunal (ITAT) has upheld the addition of bogus long-term capital gains from transactions in penny stocks.The bench of T.R. Senthil Kumar (Judicial Member) and Annapurna Gupta (Accountant Member) has observed that the assessees' failure to show how they were prejudiced by not providing the report cannot be held to be an infraction of the principle of natural justice to invalidate the order of the AO.The appellant/assessee has challenged the order...

Tax Cases Weekly Round-Up: 11 June to 17 June 2023

Delhi High Court Delhi High Court Quashes SCN For Being Devoid Of Reasons, Restores GST RegistrationCase Title: Rishiraj Aluminium Private Limited Versus Goods And Service Tax OfficerThe Delhi High Court has quashed the show cause notice as it was devoid of reasons and restored the GST registration.Rule 89(4) Under CGST Rules Inapplicable On Refund Of Integrated Tax Paid On Zero-Rated Supply: Delhi High CourtCase Title: Ohmi Industries Asia Private Limited Versus Assistant CommissionerThe...

Movement Of Goods Between Branches In Different States Taxable Under 'Lease Rental Service': AAAR

The Maharashtra Appellate Authority of Advance Ruling (AAAR) has ruled that the movement of goods between branches in different states is taxable under 'lease rental service'.The bench of D.K. Srinivas and Rajeev Kumar Mital has observed that the movement of equipment from CIPL Karnataka to CIPL Tamil Nadu on the instruction of CIPL Maharashtra cannot be said to be a mere movement of goods not amounting to a supply in terms of Section 7 of the CGST Act, 2017 as the transaction would fall under...

VAT Leviable On Entire ‘Entry-Coupon’ Amount Charged By Chokhi Dhani Resort Is Adjustable Against Food: Rajasthan High Court

The Rajasthan High Court, Jaipur Bench, has held that Value Added Tax (VAT) is leviable on the entire ‘entry-coupon’ amount charged by Chokhi Dhani Resort, which is adjustable against food.The bench of Justice Sameer Jain has observed that since the assessee is charging separately for the services, it cannot be said that the dominant purpose of the entry coupon was for providing entertainment or services where the supply of food is only incidental. Because of the bifurcation of the amount...

Expenses For Community Development, Environment Health & Safety : ITAT Allows CSR Expenditure

The Mumbai Bench of the Income Tax Appellate Tribunal (ITAT) has held that once the expenditure has been accepted to be for community development and environmental health and safety expenses, the same cannot be held to have not been incurred wholly and exclusively for the purpose of business in the year under consideration.The bench of Sandeep Singh Karhail (Judicial Member) and Amarjit Singh (Accountant Member), while allowing the expenditure, observed that expenditure incurred on community...

CBDT Notifies Special Courts Under Income Tax & Black Money Act For State Of Jharkhand

The Central Board of Direct Taxes (CBDT) has notified Special Courts under section 280A of the Income-tax Act, 1961 and section 84 of the Black Money (Undisclosed Foreign Income and Assets) and Imposition of Tax Act, 2015 for the state of Jharkhand at Ranchi, Jamshedpur, and Dhanbad.The Special Court (Economic Offences) at Ranchi is notified for the areas of Ranchi, Lohardaga, Gumla, Simdega, Khunti, Palamau, Latehar, and Garhwa.The Special Court (Economic Offences) at Jamshedpur will have the...