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...

No Sales Tax On Supply Of Goods For Erecting Transmission Lines, Substations & Power Grids Before 15.05.1997: Jammu & Kashmir And Ladakh High Court

The Jammu & Kashmir And Ladakh High Court has held that no sales tax is exigible for the supply of goods for erecting transmission lines, substations, and power grids.The bench of Justice Sanjeev Kumar and Justice Rajesh Sekhri has observed that the transaction between the assessee and the contractors in which the assessee has supplied the goods and material purchased by it from outside the State against C-Forms for the purpose of erecting transmission lines, sub-stations, and power grids...

Bombay High Court Directs Sales Tax Commissioner To Determine Applicability Of VAT On Road Tax, Insurance Premium, Octroi Duty

The Bombay High Court has directed the sales tax commissioner to determine the applicability of VAT on road tax, insurance premiums, and octroi duty.The division bench of Justice Nitin Jamdar and Justice Abhay Ahuja has observed that Section 55 of the MVAT Act provides for an advance ruling, which allows an applicant to apply to the Commissioner for an advance ruling on the specified question. The application must be made in the prescribed form and manner, stating the question on which the...

Department Recovering Tax Without Any Authority Of Law Cannot Be Permitted To Retain The Amount: CESTAT

The Delhi Bench of the Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has held that just as an assessee cannot be permitted to evade payment of rightful tax, the authority that recovers tax without any authority of law cannot be permitted to retain the amount merely because the taxpayer was not aware at that time.The bench of Binu Tamta (Judicial Member) has observed that the date on which the prayer for reassessment and refund of excess duty paid was made has to be treated as the...

Bombay High Court Upholds The Validity Of Goa Tax on Entry of Goods Act, 2000

The Bombay High Court has upheld the validity of the Goa Tax on Entry of Goods Act, 2000.The bench of Justice M. S. Sonak & Justice Valmiki Sa Menezes relied on the decision of the 9-judge bench of the Supreme Court in the case of Jindal Stainless Limited and another vs. State of Haryana and ors. which upheld the constitutional validity of entry taxes imposed by states on goods coming in from other states.The petitioners/assessee challenged the constitutional validity of the Goa Tax on Entry...

Delhi High Court Allows Appeal Of Poor Daily Wage Earners Against Seizure Of Goods Without Pre-Deposit

The Delhi High Court has allowed the appeals of poor daily wage earners against the seizure of goods without insisting on the requirement of pre-deposit.The bench of Justice Rajiv Shakdher and Justice Tara Vitasta Ganju has observed that the statute may, at times, impose conditions as a requirement of filing an appeal. However, a condition that is unduly onerous will render the right to appeal null and void.The petitioners belong to poor families, live in Islam Nagar, Hojai, Assam, and are not...

Tax Cases Monthly Round Up: April 2023

Indirect Taxes Supreme Court Same Activity Can Be Taxed As ‘Goods’ & ‘Services’ : Supreme Court Upholds Levy Of Service Tax On “Engineering Design & Drawings” Case Title: Commissioner of Customs, Central Excise & Service Tax v M/S Suzlon Energy Citation : 202LiveLaw(SC) 298 The Supreme Court has held that the import of “Engineering Design & Drawings” falls under the category of “design services” under section 65(35b) read with Section 65(105)...

Assessee Was Given Only 13 Hours Time To Reply To The Show-Cause Notice: Madras High Court Quashes Assessment

The Madras High Court has quashed the assessment as the assessee was given only 13 hours to reply to the show-cause notice.The bench of Justice M. Dhandapani has directed the department to consider the matter afresh and, after providing an opportunity to the petitioner, pass appropriate orders within a period of four weeks.The petitioner/assessee was issued with a first show cause notice on March 6, 2023, and the time to file a reply was given until March 9, 2023. The petitioner filed a reply on...

Penalty Under Section 114 A Of The Customs Act Is Invariably Linked To The Quantum Of Duty Evaded: CESTAT

The Chandigarh Bench of the Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has held that the penalty under Section 114 A of the Customs Act is invariably linked to the quantum of duty evaded.The bench of S. S. Garg (Judicial Member) and P. Anjani Kumar (Technical Member) has observed that the appellant has not violated the provisions intentionally and that there is no mens rea or any motive that can be attributed to the appellant. Neither Section 111 nor Section 112 of the Customs...

Tax Cases Weekly Round-Up: 23 April To 29 April, 2023

Bombay High Court Goa Value Added Tax (12th Amendment) Act, 2020 Defies The Doctrine Of Separation Of Powers: Bombay High Court Case Title: Rohan Lobo Versus State Of Goa The Bombay High Court has held that the Goa Value Added Tax (12th Amendment) Act, 2020, is an impermissible judicial override defying the doctrine of separation of powers. Material Triggering Reassessment Must Be Furnished To The Assessee: Bombay High Court Case Title: Anurag Gupta Versus ITO The...