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...

Non-Banking Finance & Leasing Companies Not Liable To Pay Interest Tax On Instalments Paid Under Hire Purchase Agreement : Supreme Court

The Supreme Court has held that non-banking finance and leasing companies are not liable to pay tax on the interest component included in the hire-purchase instalment paid under the hire purchase agreement.Issue for Consideration in the Civil AppealA bench of Justices Sanjiv Khanna and M M Sundresh were considering the issue as to whether the appellants/assessees are liable to pay tax under the Interest-Tax Act, 1974 on the interest component included in the hire-purchase instalments paid under...

All India Annual Digest of Tax Cases 2022-Supreme Court, High Courts And Tribunals

Indirect Tax Supreme Court Small Tax Effect: Monetary Limit To Prefer An Appeal Before The Supreme Court Is Rs. 2 crores: Supreme Court Case Title: CIT Versus Swapnil Finance Pvt. Ltd. The Supreme Court disposed of the appeal on the ground of low tax effects. The division bench of Justice M.R. Shah and Justice Sudhanshu Dhulia observed that the monetary limit to file an appeal before the Supreme Court is Rs. 2 crores. Concessional Rate Of Sales Tax Not Applicable On Oxygen As...

ITAT Sustains Disallowance As Cash Payment Exceeds Rs. 20,000 To Single Party In Single Day

The Chennai Bench of the Income Tax Appellate Tribunal (ITAT) has sustained the disallowance under section 40A(3) of the Income Tax Act as a cash payment exceeds INR 20,000 to a single party in a single day.The two-member bench headed by Mahavir Singh (Vice President) and G. Manjunatha (Accountant Member) has observed that Section 40A(3), which has been amended w.e.f. 01.04.2009 by the Finance Act, 2008, provides that the provisions of sub-section (3) of Section 40A of the Act shall be attracted...

Refund Or Carry Forward The ITC To GST Regime Is Dealer’s Choice: Madras High Court

The Madras High Court has held that the dealer has two options: refund or carry forward the ITC to the GST regime.The single bench of Justice M. Sundar has observed that the dealer cannot be compelled to opt for one of the two, i.e., refund or carry forward the ITC to the GST regime. It is, after all, an option given to the dealer. The provisional refund order issued by the department and the issuance of what is known as "Form-P" clearly defined the entitlement of the dealer.The petitioner...

Clause Contained In The Tax Invoice Amounts To An Arbitration Clause: Bombay High Court

The Bombay High Court has held that the clause contained in the invoices, which clearly stipulates a reference to arbitration, deserves to be construed as an arbitration clause.The single bench of Justice Bharati Dangre has observed that any document in writing exchanged between the parties that provide a record of the agreement and in respect of which there is no denial by the other side would squarely fall within the ambit of Section 7 of the Arbitration and Conciliation Act, 1996, and would...

Entities Evading Tax Payment Are Liable To Be Punished Under Criminal Charges With Penalties: Madras High Court

The Madras High Court, while analysing the growing trend of tax evasion, has stated that companies, firms, or entities that evade tax payments are liable to be punished under criminal charges with substantial penalties.The division bench of Justice S. Vaidyanathan and Justice C. Saravanan has observed that the hotel business is the fastest-growing one in the world. Despite the growth, hotel and restaurant owners show no desire to pay taxes meant for the public, and a few hotels not only evade...

Decision Of CG Not To Impose Anti-Dumping Duty, Quasi-Judicial In Nature; Principles Of NJ Must Be Followed: CESTAT

The New Delhi bench of the Customs, Excise & Service Tax Appellate Tribunal (CESTAT) has reiterated that the decision taken by the Central Government to not impose anti-dumping duty under Section 9A of the Customs Tariff Act, 1975, is quasi-judicial in nature and not legislative, and thus, the requirement of a reasoned order must be compiled with. The Tribunal ruled that the decision taken by the Central Government, vide its Office Memorandum dated 06.06.2022, to not impose...

No GST Payable On Afforestation Carried Out By Charitable Organisation: Gujarat AAR

The Gujarat Authority for Advance Ruling (AAR) has held that the afforestation carried out by the charitable organisation is exempt from GST.The two-member bench of Amit Kumar Mishra and Milind Kavatkar observed that the activities of mangrove plantations are covered under charitable activity. The applicant is registered under Section 12AA of the Income-tax Act, 1961, as a charitable trust, and thus the service of planting mangroves by the applicant is eligible for exemption from the payment of...

Training, Coaching Services Does Not Come Under ‘Educational Institution’, No GST Exemption Available: Kerala AAR

The Kerala Authority for Advance Ruling (AAR) has ruled that training and coaching services do not come under the definition of "educational institution" to claim GST exemption.The two-member bench of S.L. Sreeparvathy and Abraham Renn S has observed that institutions providing services by way of education as a part of the curriculum for obtaining a qualification recognised by any law for the time being in force and those engaged in providing education as a part of an approved vocational...