Department Has No Right To File Revision Application In Case Of Refund Of Service Tax On Export Of Services: CESTAT

The Mumbai Bench of the Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has held that the department has no right to file a revision application in case of refund or rebate of service tax on the export of services since no such provision has been made for Revenue to file a revision application.The bench of S. K. Mohanty (Judicial Member) and M. M. Parthiban (Technical Member) has observed that assessees are only permitted to file the revision application before the Central...

Mere Broad-Basing Of Entries Under Central Excise Tariff Act, Cannot Justify Re-Classification, Without Change In Nature, Character Or Use Of The Product: Supreme Court

The Supreme Court has ruled that the classification of a product under the Central Excise Tariff Act, 1985, cannot be changed merely on the ground of change of tax structure or tariff entries, without showing a change in the nature and character of a product or a change in the use of the product(Commissioner of Customs, Central Excise and Service Tax, Hyderabad vs Ashwani Homeo Pharmacy).The bench of Justices Dinesh Maheshwar and Vikram Nath was dealing with an appeal against the decision of the...

In 'Works Contract', Assessee Liable To Pay Service Tax On Service Element & Sales Tax On Goods Transferred : Supreme Court

The Supreme Court has ruled that the value of the service portion in the execution of the works contract has to be determined as per Rule 2A of Service Tax (Determination of Value) Rules, 2006, or as per the Works Contract (Composition Scheme for Payment of Service Tax) Rules, 2007 (Composition Scheme), if adopted by the assessee, and that the assessee has to pay service tax on the service element and can claim CENVAT Credit only on the said amount.The bench of Justices M. R. Shah and Krishna...

Rule 5 Of Cenvat Credit Rules, 2004 Cannot Be Invoked To Sanction The Refund Of Unutilized Cenvat Credit Lying With The Assessee: CESTAT

The Delhi Bench of the Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has observed that Rule 5 of the Cenvat Credit Rules, 2004 cannot be invoked to sanction the refund of unutilized cenvat credit lying with the assessee.The bench of Rachna Gupta (Judicial Member) has observed that despite the fact that manufacturing was closed in the financial year 2016–2017 and the appellant had already moved on to the GST regime, the refund claim could not have been filed before April 16, 2017,...

Customary Amongst Married Women To Keep On Changing The Jewellery As And When New Designs Come In The Market: ITAT Deletes Income Tax Addition

The Delhi Bench of the Income Tax Appellate Tribunal (ITAT) has deleted the addition and held that it is customary amongst married women to keep on changing the jewelleryas and when new designs come on the market.The bench of Anubhav Sharma (Judicial Member) and N. K. Billaiya (Accountant Member) has observed that the assessee has given an item-wise reconciliation of Wealth Tax Return items with the valuation report prepared during the search. The AO has not pointed out any specific defect...

CA, CS And CWAs Covered Under The Ambit Of PMLA If Financial Transactions Executed On Behalf Of Client

The Government has notified that the practicing chartered accountants (CA), Company Secretary (CS) and Cost And Works Accountancy (CWAs) are covered under the Prevention of Money Laundering Act, 2002 (PMLA) if financial transactions are executed on behalf of a client.In accordance with Section 2(1)(sa)(vi) of the PMLA, the Central Government notified a select few activities when they are performed for or on behalf of another natural or legal person.Firstly, buying and selling of any immovable...

Co-Operative Banks Are Also Registered Co-Operative Societies: ITAT Allows Section 80P(2)(d) Deduction

The Ahmedabad Bench of the Income Tax Appellate Tribunal (ITAT) has allowed the income tax deduction under Section 80P(2)(d) of the Income Tax Act on the grounds that cooperative banks are also registered cooperative societies.The bench of Suchitra Kamble (Judicial Member) has observed that the provision of Section 80P(2)(d) does not make any distinction in regard to the source of the investment because this Section envisages deduction in respect of any income derived by the co-operative society...

No Excise Duty Payable On Amortization Cost Of The Cylinder: CESTAT

The Ahmedabad Bench of the Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has held that no excise duty is payable on the amortization cost of the cylinder.The bench of Ramesh Nair (Judicial Member) and C.L. Mahar (Technical Member) has observed that for the purpose of valuation of the packaging material, the amortization cost of the cylinder needs to be included in a proportionate manner depending upon the number of products manufactured by using the cylinder; therefore, the demand...

Inspection Charges Received In Connection With The Sale Of Goods Are Not Includible In Assessable Value: CESTAT

The Kolkata Bench of the Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has held that inspection charges received in connection with the sale of the goods are not includible in the assessable value in the absence of evidence.The bench of P.K. Chaudhary (Judicial Member) and K. Anpazhakan (Technical Member) observed that pre-delivery inspection charges are included in the assessable value when pre-delivery inspection is mandatory and an essential condition for the sale of the goods....

Inter-State Supply Of Ambulances To Tripura Government Attracts 28% IGST: AAR

The Telangana Authority of Advance Ruling (AAR) has held that the supply of ambulances to the Tripura government attracts 28% IGST as it is an interstate supply.The bench of Kasi Visweswara Rao and Sahil Inamdar ruled that the liability to pay tax on goods shall arise at the time of supply, as determined in accordance with the provisions of Section 12 of the CGST/TGST Act, 2017, and that of services as per Section 13 of the CGST/TGST Act, 2017.The applicant has a work order for the supply of...

Department Cannot Decide Title Of The Goods When No One Disputes Ownership: CESTAT

The Ahmedabad Bench of the Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has held that the department cannot self-assign to itself the duty of declaring bad in law the certificate issued to the importer by the Ministry of Renewable Energy or decide the title to the goods, even when no one is disputing ownership.The bench of Somesh Arora (Judicial Member) and Raju (Technical Member) has observed that the existence or otherwise of a high-seas sales agreement makes no difference...

ITC Not Allowable On Construction Of Shed Using Prefabricated Technology: Telangana AAR

The Telangana Authority of Advance Ruling (AAR) has held that input tax credit (ITC) is allowed for the construction of sheds using prefabricated technology.Sahil Inamdar has observed that the Pre-Fabricated Sheds (PFS) being constructed are, therefore, immovable property, and the input tax credit is not admissible on the inward supplies, which may include works contract services, for its construction, as the credit of such tax comes under the category of blocked credits.S.V. Kasi Visweswara Rao...