Penalty Leviable Under S. 45 of the Gujarat Sales Tax Act, 1969 Is Statutory And Mandatory; Commissioner/AO Has No Discretion: Supreme Court

The Supreme Court has ruled that the penalty and interest leviable under Sections 45(6) and 47(4A) of the Gujarat Sales Tax Act, 1969, respectively, are statutory and mandatory in nature and there is no discretion vested in the Commissioner/Assessing Officer to levy or not to levy the penalty and interest other than as prescribed.The bench of justices M.R. Shah and B.V. Nagarathna held that the moment it is found that a dealer is to be deemed to have failed to pay the tax to the extent...

Credit Of CVD Paid Through Debit In DEPB Scheme Is Admissible: CESTAT Allows Cenvat Credit To Hindustan Zinc

The Delhi Bench of the Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has allowed the Cenvat Credit to Hindustan Zinc and held that credit of CVD paid through debit in the Duty Entitlement Passbook Script (DEPB) Scheme is admissible, and the bills of entry assessed by the customs authorities have not been bifurcated between CVD and Cess.The bench of Ajay Sharma (Judicial Member) has observed that the Notification No. 89/2005-Cus dated October 4, 2005 specifically permits an...

Reimbursable Expenses Are Not Includible In The Taxable Value Of The Service: CESTAT

The Kolkata Bench of the Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has held that reimbursable expenses are not includible in the taxable value of the service in terms of Rule 5(1) of the Service Tax (Determination of Value) Rules, 2006.The bench of Ashok Jindal (Judicial Member) and Rajeev Tandon (Technical Member) has relied on the decision of the Delhi High Court in the case of Intercontinental Consultants and Technocrats Pvt.Ltd. versus Union of India, in which it was held...

Tax Cases Weekly Round-Up: 9 April to 15 April, 2023

Supreme CourtMere Delay In Remittance Of TDS Doesn’t Attract Penalty Under S 271C Income Tax Act: Supreme CourtCase Title: M/s US Technologies International Pvt Ltd vs. The Commissioner of Income Tax Citation : 2023 LiveLaw (SC) 285The Supreme Court has ruled that no penalty is leviable under Section 271C of the Income Tax Act, 1961 on mere delay in remittance of the tax deducted at source (TDS) after the same has been deducted by the assessee.Income Tax Act | For A Company To Be A "Resident" In...

Suspension Of The Licence Of Broker Is Not Warranted After The Investigation And Issue Of Show Cause Notice: CESTAT

The Kolkata Bench of the Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has held that suspension of the license is not warranted after investigation and the issuing of a show cause notice.The bench of P.K. Choudhary (Judicial Member) and K. Anpazhakan (Technical Member) has observed that immediate suspension of the customs broker is warranted when there is an apprehension that the customs broker may interfere in the investigation or tamper with any evidence that will be detrimental...

CESTAT Allows Service Tax Refund On Construction Services Of Complex Provided By The Cooperative Housing Society

The Ahmedabad Bench of the Customs, Excise, and Services Tax Appellate Tribunal (CESTAT) has allowed the service tax refund on the construction of complexes provided by the appellant’s cooperative housing society.The bench of Ramesh Nair (judicial member) and C.L. Mahar (technical member) has noted that cooperative societies have not taken the services of a contractor for the construction of residential complexes but have chosen to construct complexes on their own. Where they have taken a...

Services Provided By Branch Office To Head Office And Vice Versa Will Attract GST: AAR

The Tamil Nadu Authority for Advance Ruling (AAR) has held that the services, including those of common employees of a person, provided by branch offices to the head office and vice versa, each having a separate GST registration, will attract GST.The bench of R. Gopalsamy and N. Usha has observed that even the services of employees deployed from a registered place of business to another registered premises of the same person will attract GST, as the employees are treated as related persons in...

Allahabad High Court Directs Department To Release The Seized Goods On The Condition Of Payment Of 200% Of The Tax Payable

The Allahabad High Court has directed the department to release the seized goods on the condition of payment of 200% of the tax payable on the goods valued at the same on the basis of the valuation as shown in the invoice.The bench of Justice Pankaj Bhatia has observed that the value of the goods in transit is to be determined in accordance with the provisions of Section 15 declared in an invoice, a bill of supply, or a delivery challan in respect of the consignment. Even Section 15(1)...

Cricket Player Providing Brand Promotion Services Not Liable To Pay Service Tax: CESTAT

The Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has quashed the demand for service tax on remuneration received by the cricket player from M/s. Nike India Pvt. for brand promotion.The bench of Ramesh Nair (judicial member) and C. L. Mahar (technical member) relied on the decision of the Calcutta High Court in the case of Sourav Ganguly vs. UOI & Others, in which it was held that the arrangement between the owner company and the cricket player is one of employment, and hence...

Freight And Handling Charges Shown Separately In The Invoice Is Not Includable In The Assessable Value Of The Excisable Goods: CESTAT

The Ahmedabad bench of the Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has held that freight and handling charges shown separately in the invoice of the appellant are also not includable in the assessable value of the excisable goods.The two-member bench of Ramesh Nair Member (Judicial) and Raju Member (Technical) has observed that the amount charged as freight and handling charges and separately shown in the invoices cannot be included in the assessable value under Section 4 of...

Rajasthan High Court Upholds GST Demand On Royalty Paid To The Mining Department Towards Mining Lease

The Rajasthan High Court has upheld the GST demand on royalty paid to the Mining Department towards mining lease.The Bench of Justice Vijay Bishnoi and Justice Praveer Bhatnagar has relied on the decision of the Rajasthan High Court, Jaipur Bench in the case of Sudershan Lal Gupta & Ors. versus Union of India & Ors. in which a batch of writ petitions were dismissed challenging the levy of GST on reverse charge basis on royalty of mining extraction.The petitioner challenged the show...

ITAT Disallows Income Tax Deduction On Employees’ Contribution To PF & ESI Beyond The Due Dates

The Mumbai Bench of the Income Tax Appellate Tribunal (ITAT) has disallowed income tax deduction on employees’ contributions to PF and ESI beyond the due dates.The bench of Amit Shukla (Judicial Member) and Prashant Maharishi (Accountant Member) has observed that the auditor in the audited accounts only pointed out the date of payment and the due date prescribed under the PF and ESI Act, and it is incumbent upon the assessee that, while computing the income, he has to disallow the said payment...