Contract For Construction Of New Railway Siding Is Covered Under “Works Contract”, Attracts 12% GST: West Bengal AAR

The West Bengal Authority for Advance Ruling (AAR) has ruled that the contract for the construction of new railway siding is covered under the definition of a "works contract" and attracts 12% GST.The two-member bench of Brajesh Kumar Singh and Joyjit Banik has observed that the work executed by the applicant in connection with the construction of a Railway siding at Jhanjra Area by Eastern Coalfields Limited (ECL) pertains to railways.The applicant is a private corporation and is engaged in the...

Vedanta Claimed Unutilized ITC Refund, No Scope For Supplementary Refund Application Based On Fresh Calculation: Orissa High Court

The Orissa High Court has held that Vedanta has claimed the refund of the unutilized input tax credit on account of zero-rated supplies by clubbing up all the transactions relating to three units. There is no scope to insist on consideration of a supplementary refund application based on a fresh calculation made by taking individual unit-wise transactions into account.The division bench headed by Chief Justice S. Muralidhar and Justice Murahari Sri Raman has observed that Rule 89(4) of the...

It Is A PAN Which Follows The Jurisdiction And Not The Jurisdiction Which Follows PAN: Bombay High Court

The Bombay High Court ruled that the transfer of PAN is a result of the order transferring jurisdiction and that the PAN follows the jurisdiction rather than the other way around.The division bench of Justice Dhiraj Singh Thakur and Justice Valmiki SA Menezes has observed that after the CIT in Mumbai passed an order on December 19, 2014, transferring the assessment jurisdiction from Mumbai to Pune, the AO in Mumbai had no jurisdiction to pass an assessment order.The assessee/respondent had...

No Promissory Estoppel Involved In Grant Of Temporary Reprieve From Service Tax On Works Contract; Madras High Court

The Madras High Court has dismissed a batch of writ petitions challenging Notification No.6/2015-Service Tax, dated 01.03.2015, which withdrew service tax exemption on services in nature of works contract, as granted under the Mega Exemption Notification No.25/2012-Service Tax, dated 20.06.2012. The bench of Justices S. Vaidyanathan and C. Saravanan observed that “works contract” services are “declared services” under the Finance Act, 1994 and thus, the services provided by the...

Sabka Vishwas Scheme : Supreme Court Grants Relief To Company Which Missed Deadline Due To IBC Moratorium

No one can be expected to do the impossible, the Supreme Court remarked while granting relief to a company which could not avail the benefit of settlement of tax dues under “Sabka Vishwas (Legacy Dispute Resolution) Scheme, 2019, due to moratorium imposed on it.Shekhar Resorts Limited was required to pay Rs.1,24,28,500/-. on or before 30.06.2020 for availing the benefit of “Sabka Vishwas (Legacy Dispute Resolution) Scheme, 2019. It could not make the payment as (a moratorium was imposed under...

18% GST Payable On The Composite Supply Of Welding Services On Railway Tracks Along With Labour Services: West Bengal AAR

The West Bengal Authority of Advance Ruling (AAR) has ruled that the conversion of short weld rails (SWR) to long weld rails (LWR) by flash butt welding on the railway tracks along with the supply of labour services shall be treated as composite supplies.The two-member bench of Brajesh Kumar Singh and Joyjit Banik has observed that 18% GST shall be payable on the composite supply of welding services on the railway tracks along with labour services.The applicant was awarded a sub-contract from...

Supply Of Services For Right To Use Car Parking Space Attracts 18% GST: West Bengal AAR

The West Bengal Authority for Advance Ruling (AAR) has held that the supply of services for the right-to-use car parking spaces attracts 18% GST.The two-member bench of Brajesh Kumar Singh and Joyjit Banik has observed that the supply of services for the right to use a car parking space is a separate supply and not to be construed as a composite supply of construction of residential apartment services.The applicant is in the business of constructing residential apartments intended for sale to...

Medical Monitoring Services To Senior Citizens At Door Step Attract 18% GST: West Bengal AAR

The West Bengal Authority for Advance Ruling (AAR) has ruled that services of regular medical monitoring, along with other logistical support, provided by the applicant to senior citizens at their doorsteps, attract 18% GST.The two-member bench of Brajesh Kumar Singh and Joyjit Banik has observed that supply by way of health care services qualifies for exemption if it is provided by a clinical establishment, an authorised medical practitioner, or paramedics. The applicant does not fall under any...

When AO Has Taken One Of The Possible Views The PCIT Is Prohibited From Adopting Different View: ITAT

The Mumbai Bench of the Income Tax Appellate Tribunal (ITAT), while quashing the revision order, held that when the Assessing Officer (AO) has taken one of several possible views, the Principal Commissioner of Income Tax (PCIT) is prohibited from adopting a different view.The two-member bench of Aby V. Varkey (Judicial Member) and B.R. Baskaran (Accountant Member) relied on the decision of the Supreme Court in the case of Malabar Industrial Co., Ltd. v. CIT, in which it was ruled that if the AO...

GST Dept. Can’t Retain Disputed Amount Paid Due To Inadvertent Error: Andhra Pradesh High Court

The Andhra Pradesh High Court has held that the GST department cannot retain the disputed amount that is paid to them due to an inadvertent error.The division bench of Justice C. Praveen Kumar and Justice A.V. Ravindra Babu has observed that the amounts that were paid by the assessee or petitioner who furnished the incorrect details cannot be taken as a tax due from the department or respondents, legally. The department cannot contend that the claim, if any, of the petitioner is barred by...

Customs Broker Is Not Liable For Undervaluation Of Exported Goods: CESTAT

The Chennai Bench of the Customs, Excise and Service Tax Appellate Tribunal (CESTAT) has held that customs brokers cannot be held liable for the undervaluation of exported goods.The bench of P. Dinesha (a judicial member) has observed that the valuation of any goods could never be the domain of a customs broker as it depends upon the contract between the exporter and the importer, in which the customs broker has no say.The appellant or assessee is a customs broker. The show cause notice was...

Income From Domain Name Registration Not Taxable As “Royalty”; Registrar Merely An Intermediary: Mumbai ITAT

The Mumbai bench of the Income Tax Appellate Tribunal (ITAT) has ruled that a domain name registrar does not have any right in the domain name, which is registered by it merely as a facilitator. Thus, the income received by it from domain name registration is not taxable as “Royalty”, the ITAT ruled. The bench of G.S. Pannu (President) and Sandeep Singh Karhail (Judicial Member) held that the assessee, who offered domain name registration services to customers, merely acted as an...