CESTAT Kolkata Sets Aside Service Tax Demand On Railway Cleaning and Housekeeping Services

The Customs, Excise, and Service Tax Appellate Tribunal (CESTAT), Kolkata, has set aside the service tax demand raised against Khagaul Loco Labour Co-Operative Society after holding that the services provided by it to the Indian Railways were either not taxable, exempt from service tax, or part of the demand was barred by limitation.The tribunal also rejected the Department's allegation that the society had collected and retained service tax from the Railways, finding no evidence to support the...

Telangana High Court Restores Relief To Radiant Digital Solutions, Says Bona Fide Lapse Can't Deny Benefit

The Telangana High Court on 2 July held that a company cannot be denied the benefit of the concessional corporate tax regime under Section 115BAA of the Income Tax Act due to a bona fide delay in filing Form 10-IC, where it has substantially complied with the statutory requirements. A Division Bench of Justices P. Sam Koshy and Narsing Rao Nandikonda allowed the writ petition filed by Radiant Digital Solutions Pvt. Ltd. and set aside the Income Tax Department's order rejecting the company's...

One-Day Delay In Revised Service Tax Return Filing Bars Refund Claim Under CGST Act: CESTAT New Delhi

The New Delhi Customs, Excise and Service Tax Appellate Tribunal (CESTAT) on 21 July held that a one-day delay in filing a revised ST-3 return under Rule 7B of the Service Tax Rules, 1994 cannot be condoned as a procedural lapse for claiming refund of transitional CENVAT credit under Section 142(9)(b) of the Central Goods and Services Tax (CGST) Act, 2017.A Bench comprising Judicial Member Binu Tamta and Technical Member Hemambika R. Priya upheld the order rejecting the refund claim of TV Today...

Madras High Court Directs SVLDRS Relief To SB Aditya Power Projects In CENVAT Credit Dispute

The Madras High Court on 25 June held that authorities cannot reject a CENVAT credit claim on a ground that was not raised in the original show cause notice, and set aside the order denying credit under the Sabka Vishwas (Legacy Dispute Resolution) Scheme (SVLDRS). Justice Senthilkumar Ramamoorthy allowed the petition filed by SB Aditya Power Projects and directed the Designated Committee to reconsider the declaration and issue the discharge certificate after taking into account the Court's...

ITAT Delhi Deletes ₹5.19 Crore AMP Adjustment Against Fujifilm India Following Sony Ericsson Ruling

The Delhi Income Tax Appellate Tribunal (ITAT) on 20 July held that a transfer pricing adjustment for Advertising, Marketing and Promotion (AMP) expenditure cannot be sustained when it is computed by applying the Bright Line Test (BLT), following the Delhi High Court's ruling in Sony Ericsson Mobile Communications India Pvt. Ltd. A Bench of Accountant Member Ramit Kochar and Judicial Member Sudhir Kumar partly allowed the appeal filed by Fujifilm India Pvt. Ltd. and deleted the Rs. 5.19 crore...

CESTAT Delhi Upholds Inclusion Of Downloaded Software Licence Value In Imported Dongles' Customs Value

The Principal Bench of the Customs, Excise, and Service Tax Appellate Tribunal (CESTAT), New Delhi, has upheld the inclusion of the value of software licences downloaded from the internet in the assessable value of imported hardware locks (dongles). It held that the downloaded software formed an integral part of the imported product and that its value formed part of the transaction value.A coram of Officiating President Dr. Rachna Gupta and Technical Member Hemambika R. Priya dismissed the...

Excise Evasion Prosecution Cannot Rest Solely On Departmental Proceedings: Himachal Pradesh High Court

The Himachal Pradesh High Court on 7 July held that criminal prosecution for alleged evasion of central excise duty cannot continue merely on the basis of departmental proceedings, show cause notices or penalty orders, unless independent evidence establishes the alleged evasion. Justice Rakesh Kainthla dismissed the revision petition filed by the Excise Department and upheld the trial court's order discharging Seamx Industries and its directors from the criminal case alleging evasion of central...

Cisco India's Support Services To Overseas Affiliates Are Export, Not Intermediary: CESTAT Bengaluru

The Bengaluru Customs, Excise and Service Tax Appellate Tribunal (CESTAT) on 20 July held that marketing support, technical support, manufacturing support, management support and other business support services provided by Cisco Systems (India) Pvt. Ltd. to its overseas group entities qualify as export of services and cannot be treated as intermediary services under the Place of Provision of Services Rules, 2012. A Bench of Judicial Member P.A. Augustian and Technical Member R. Bhagya Devi...

ITAT Delhi Remands Partnership Firm's Reassessment, Faults Authorities' Cryptic Orders

The Delhi Bench of the Income Tax Appellate Tribunal (ITAT) has remanded a reassessment involving a partnership firm's write-back of a retired partner's capital balance after finding that the tax authorities passed cryptic orders without specifying the provision under which the amount was chargeable to tax.A coram of Judicial Member Yogesh Kumar US and Accountant Member Ramit Kochar partly allowed the appeal for statistical purposes. While upholding the reopening of the assessment, it restored...

CESTAT Chennai Allows Hindustan Unilever Excise Refund, Holds CA Certificate Rebuts Unjust Enrichment

The Customs, Excise and Service Tax Appellate Tribunal (CESTAT), Chennai, has allowed Hindustan Unilever Ltd.'s refund claims arising from the finalisation of provisional assessments. It found that the company had established, through a Chartered Accountant's certificate, that the excess excise duty had not been passed on to customers. The tribunal held that the refund claims were therefore not barred by the doctrine of unjust enrichment. A coram of Judicial Member P. Dinesha and Technical...

Reimbursement Of Stipend Paid To Apprentices Not Liable To Service Tax: CESTAT Chennai

The Chennai bench of the Customs, Excise and Service Tax Appellate Tribunal (CESTAT) has held that reimbursement of 50% of the stipend paid to apprentices by the Board of Apprenticeship Training (BOAT) is not liable to service tax. It held that the reimbursement is akin to a statutory welfare grant rather than consideration for any taxable service.A bench of Judicial Member Ajayan T.V. and Technical Member Vasa Seshagiri Rao allowed the appeal filed by India Nippon Electricals Ltd. against the...

Indian Authorities Cannot Assail Authenticated Thailand Certificate Of Origin: Bombay High Court

The Bombay High Court has dismissed the Customs Department's appeal against a jewellery importer, holding that once the designated authority in Thailand has authenticated a Certificate of Origin (CoO), Indian Customs authorities cannot reopen its authenticity or deny the benefit of concessional duty under the Indo–Thailand Free Trade Agreement (FTA). The court also held that statements recorded under Section 108 of the Customs Act, 1962, cannot override an authenticated Certificate of Origin.A...