Gold Balas Are Gold Ornaments Having Definite Shape To Be Worn By The Local People: CESTAT

The Kolkata Bench of the Customs, Excise and Service Tax Appellate Tribunal (CESTAT) has released the gold balas from custody and held that gold balas are gold ornaments having a definite shape to be worn by the local people.The bench of P.K. Choudhary (Judicial Member) has observed that the Gold Control Act of 1968 has already been repealed since 1990. Under the new fiscal policy, the possession of gold is not an offense.Following the raid on the Appellant's residential premises by the Central...

Taxpayer Cannot Be Compelled To Pay Tax On The Services Rendered By It Twice: Rajasthan High Court

The Rajasthan High Court has held that the taxpayer cannot be compelled to pay tax on the services rendered twice.The division bench of Justice Pankaj Mittal and Justice Subha Mehta ruled that the petitioner's supply of manpower to a company in Rajasthan is either an inter-state transaction subject to CGST+RGST or an intra-state transaction subject to IGST. The petitioner has deposited 18% of the IGST, and the respondents or department has recovered 35% of the CGST and RGST by attaching the...

Notice Under Customs Act Can Be Issued Only After The Assessment Is Modified On Appeal: CESTAT

The Delhi Bench of the Customs, Excise and Service Tax Appellate Tribunal (CESTAT) has held that once an assessment is made, it stands unless it is reviewed under Section 28 of the Customs Act or modified in an appeal.The two-member bench headed by Justice Dilip Gupta (President) and P.V. Subba Rao (Technical Member) has observed that any assessment can be modified in two ways: first, through an appeal, and second, through a process of review under Section 28.The appellant importers imported the...

Nothing New Happened Between The Date Of Reassessment Order And The Date Of Forming The Opinion By AO: Bombay High Court Quashes Reassessment Order

The Bombay High Court has quashed the Reassessment Order and held that between the date of the order of assessment sought to be reopened and the date of the formation of an opinion by the Assessing Officer, nothing new has happened. There was no new information received, nor was there any mention of new material on file.The division bench of Justice Dhiraj Singh Thakur and Justice Valmiki SA Menezes has observed that the Assessing Officer has simply accorded a fresh consideration and come to the...

GSTN Issued Advisory On Facility Of ‘Initiating Drop Proceedings’ Of Suspended GSTINs Due To Non-filing Of Returns

The Goods and Service Tax Network (GSTN) has issued an advisory on the facility of ‘Initiating Drop Proceedings’ of Suspended GSTINs due to Non-filing of Returns.On the GST Portal, a feature known as "Automated Drop Proceedings" has recently been introduced for GSTINs that have been suspended because returns have not been filed.For taxpayers who have submitted their pending returns, such as their six-month or two quarterly returns, the functionality is available.The system will automatically end...

Rajasthan High Court Grants Bail To Accused On The Payment Of GST Evasion Amount

The Rajasthan High Court has granted bail to the accused as he has already paid the amount of alleged GST evasion.The single bench of Justice Mahendra Kumar Goyal has released the accused on bail on furnishing a personal bond of Rs. 1,00,000 together with two sureties in the sum of Rs. 50,000 each to the satisfaction of the trial court.The petitioner was arrested in connection with the offense committed under Section 132(1) of the Rajasthan Goods and Services Tax Act, 2017. The petitioner filed...

Assessee Not Entitled for Deduction without A Certificate Declaring The Warehouse as Part Of The Port: Bombay High Court

The Bombay High Court has held that the assessee cannot claim the deduction under Section 80IA(4) of the Income Tax Act in the absence of a certificate declaring the warehouse to be part of the port.The division bench of Justice Dhiraj Singh Thakur and Justice Kamal Khata has observed that the Jawaharlal Nehru Port Trust (JNPT) has declined to issue a certificate that the warehousing of the assessee is part of the port.The assessee/respondent is a state government undertaking that had set up an...

Impossible For A Company To Get Its Accounts Audited On 31st March And Get The Approval In AGM On The Same Date: ITAT Upholds Addition

The Delhi Bench of the Income Tax Appellate Tribunal (ITAT) has held that it is impossible for a company to get its accounts audited on 31st March and present the same for approval in the Annual General Meeting on March 31st.The two-member bench of Kul Bharat (Judicial Member) and N.K. Billaiya (Accountant Member), while upholding the addition under Section 56(2)(viib), observed that the certificate of the auditors nowhere says that the valuer has considered the audited balance sheet. The...

Consideration For Advisory Services Not Taxable As Fees For Included Services Under India-US DTAA: Calcutta High Court

The Calcutta High Court has reiterated that consideration for advisory services cannot be treated as Fees for Included Services under Article 12(4)(b) of the India-US Double Taxation Avoidance Agreement (DTAA). The Court thus upheld the ITAT’s order setting aside the additions made to the foreign assessee Company’s income for the compensation received by it for rendering advisory services to its Indian subsidiary. The bench of Justices T.S. Sivagnanam and Hiranmay Bhattacharyya also...

Tax Cases Weekly Round-Up: 08 January To 14 January 2023

Supreme Court Income Tax Act | Writ Petition Can Be Entertained To Examine If Conditions To Issue Section 148 Notice Are Satisfied : Supreme Court Case Title: Red Chilli International Sales Versus ITO Citation: 2023 LiveLaw (SC) 16 The Supreme Court recently set aside an order of the Punjab and Haryana High Court which dismissed a writ petition filed by an assessee against a notice issued under Section 148A of the Income Tax Act 1961 for reopening assessment. The High Court...

18% GST Applicable On Services Of Project Management Consultancy Services: Maharashtra AAAR

The Maharashtra Appellate Authority for Advance Ruling (AAAR) has ruled that project management consulting services are subject to 18% GST.The two-member bench of D.K. Srinivas and Rajiv Kumar Mittal has upheld the AAR’s ruling and observed that services provided through their professionals are in the nature of professional and technical services as the services provided require technically qualified and trained professionals and staff. Thus, the services provided by the appellant will merit...

Salted, Flavoured Potato Chips, Chivda, Sev, Hing Bhujiya Attracts 12% GST: Gujarat AAR

The Gujarat Authority for Advance Ruling (AAR) has observed that 12% GST is applicable on salted and flavouring potato chips, chivda, sev, and hing bhujiya.The two-member bench of Amit Kumar Mishra and Milind Kavatkar has observed that the supply of food products namely salted and flavoured Potato Chips, Potato Sev (Aloo Sev), Potato Chivda (Potato Salli Mixture), Hing Bhujiya, Sev Mamra (Roasted Puffed Rice with Nylon Sev), Chana Daal (Fried split Bengal Gram), Gathiya and Khatta Mitha Chivda...