Karnataka High Court Permitted Superintendent of Central Tax To Pass Orders For Revoking Cancellation Of GST Registration On Filing Returns

The Karnataka High Court has permitted the Superintendent of Central Tax to pass suitable orders for revocation of the cancellation of the GST registration, if the petitioner/assessee files returns.The single bench of Justice B. M. Shyam Prasad has observed that the cancellation of GST registration was without due opportunity and was arbitrary.The petitioner submitted that the respondent visited his business premises on October 11, 2022, and seized certain invoices/documents under a mahzaar. The...

Calcutta High Court Quashes Income Tax Notices Issued In The Name Of Non-Existing Company

The Calcutta High Court has quashed the income tax notice issued in the name of a non-existing company, in spite of the department having notice and knowledge of non-existence of the company.The single bench of Justice Md. Nizamuddin observed that the notice has been issued in the name of the company, which has already been amalgamated on December 12, 2016 with effect from April 1, 2015, and that the department has been intimated about this amalgamation, which is a matter of record, and that...

Architect Service, Telephone Expenses For Construction Of Hotel Are Input Services: CESTAT Allows Cenvat Credit On Service Tax

The Mumbai Bench of the Customs, Excise, and Service Tax Tribunal (CESTAT) has allowed the Cenvat Credit on Service Tax paid on architect services; telephone expenses, etc. for construction of hotel are input services.The bench of Anil G. Shakkarwar (Technical Member) has observed that CENVAT Credit on input services used to bring immovable property into existence is eligible for CENVAT Credit.The appellant/assessee provides taxable services and is registered in Mumbai. They have constructed two...

CESTAT Allows Cenvat Credit Of Service Tax Paid On Services Of Toilets Located In Port User Building

The Mumbai Bench of the Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has allowed the CENVAT credit of service tax paid on services of toilets located in port-user buildings.The bench of Anil G. Shakkarwar (Technical Member) has observed that the territorial location cannot decide the admissibility of CENVAT credit under the provisions of Rule 2(l) of the CENVAT Credit Rules, 2004. The department has failed to establish that the services used in port user buildings are not used...

Only Retail Sale Can Claim Assessment Benefits Under Section 4A Of Central Excise Act : Supreme Court

The Supreme Court has held that mere affixation of MRP does not make goods eligible for central excise duty exemption, and what is required along with the affixation is a mandate of law that directs the seller to affix such MRP.The Division Bench of Justice Krishna Murari and Justice Sudhanshu Dhulia has observed that where the purchaser institution is deemed to not be a consumer, the sale also cannot be held to be a retail sale as per the Act. Since the sale was not a retail sale, there is no...

Mere NBFC Registration Not Enough Under Provision Of Service Tax For Levy: CESTAT

The Hyderabad Bench of the Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has held that mere registration as an NBFC is not enough under the provision of service tax to levy.The two-member bench of Anil Choudhary (judicial member) and P. V. Subba Rao (technical member) has observed that the service provider should be both a company and have the principle business of receiving deposits and lending.The appellant/assessee is a subsidiary of Qualcomm Inc., USA. Qualcomm Inc. in the USA...

ITAT Bangalore Holds Expenditure Incurred By Flipkart Towards ESOP Is Eligible For Deduction Under S. 37 Of ITA

The Bangalore Bench of the Income Tax Appellate Tribunal (ITAT) has allowed the appeal of Flipkart India against disallowance of over Rs.15.5 Crore of expenses claimed by it under Section 37 of the Income Tax Act, 1961, towards Employee Stock Ownership Plan (ESOP). Flipkart had claimed that the ESOP cross charge payments made to its Singapore based Holding Company were mere reimbursements, and the same were eligible for deduction under Section 37. The ITAT relied upon the decision...

28% GST Payable On Supply PVC Floor Mats For Cars: AAR

The Gujarat Authority for Advance Ruling (AAR) has ruled that 28% GST is payable on the supply of PVC floor mats for cars.The two-member bench of Amit Kumar Mishra and Milind Kavatkar has observed that the floor mats used for four-wheel motor vehicles (cars) supplied by the applicant are principally for use in motor vehicles.The applicant is in the business of manufacturing and supplying floor mats for four-wheel motor vehicles (cars). The floor mats are essentially made of PVC material.The...

5% GST Payable On RCM Basis On Purchase Of Tobacco Leaves/Bhukko From The Agriculturist: Gujarat AAR

The Gujarat Authority for Advance Ruling (AAR) has ruled that 5% GST on reverse charge mechanisms (RCM) shall be applicable on the purchase of tobacco leaves/bhukko from the agriculturist.The two-member bench of Amit Kumar Mishra and Milind Kavatkar has observed that, in terms of Notification No. 4/2017-Central Tax (Rate), in the case of intrastate supply of tobacco leaves, falling under 2401, by an agriculturist to a registered person, GST is to be paid under RCM by the recipient.The AAR noted...

CESTAT Rejects The Refund Claim Of Krishi Kalyan Cess Worth Rs. 5 Lakhs Paid On Services Received For Manufacturing Of Goods

The Hyderabad Bench of Customs, Excise and Service Tax Appellate Tribunal (CESTAT) has rejected the refund claim of Krishi Kalyan Cess (KKC) worth rs. 5 lakhs paid on services received for manufacturing of goods.The two-member bench of Anil Choudhary (Judicial Member) and P.V. Subba Rao (Technical Member) has observed that an unused portion of Cenvat credit cannot be claimed as a refund in cash.The appellant/assessee claimed the refund of Krishi Kalyan Cess paid on services received for the...

Cooperative Banks Qualified As Cooperative Societies : CESTAT Allows Section 80P Deduction On Interest Received From Co-Operative Banks

The Ahmedabad Bench of the Income Tax Appellate Tribunal (ITAT) has held that cooperative banks qualified as cooperative societies and the interest received from cooperative banks by the assessee in the present case qualified for deduction under section 80P(2)(d) of the Income Tax Act.The two-member bench of Madhumita Roy (Judicial Member) and Annapurna Gupta (Accountant Member) has observed that the order passed under section 263 of the Income Tax Act was not in accordance with the law.The...

Tax Cases Weekly Round-Up: 12 March To 18 March, 2023

Supreme Court Non-Service Of Assessment Orders Inconsequential If Assesee Had Knowledge About Them Otherwise : Supreme Court Case Title: Commercial Tax Officer Versus Neeraja Pipes Pvt. Ltd. Citation: 2023 LiveLaw (SC) 199 Attachment orders issued by the revenue for tax arrears will not be vitiated merely because the assessment orders were not served on the assessee, if the assessee had otherwise got knowledge about the assessment orders, held by the Supreme Court recently. ...