No Service Tax Is Payable On Commission Received In Convertible Foreign Exchange: CESTAT

The Ahmedabad Bench of the Customs, Excise and Service Tax Appellate Tribunal (CESTAT) has held that no service tax is demandable when the commission received is in convertible foreign exchange.The two-member bench of Ramesh Nair (Judicial Member) and Raju (Technical Member) has observed that the commission agent service provided to a foreign-based entity for promoting or marketing their goods in India constitutes an export of services, given that the Indian agent's activity includes providing...

Service Tax Refund Admissible On Trenching Pipeline Installed Partly In SEZ And Partly Outside But For Use In Operation Of The SEZ: CESTAT

The Ahmedabad Bench of the Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has held that service tax refunds on trenching pipelines installed partly in SEZ and partly outside but for use in the operation of the SEZ are admissible.The two-member bench of Ramesh Nair (Judicial Member) and Raju (Technical Member) has observed that the construction service received in relation to trenching and pipeline construction was exclusively for SEZ only. A part of the same will be outside the...

Confiscated Currency Need To Be Returned With Interest On Release: CESTAT

The Delhi Bench of the Customs, Excise and Service Tax Appellate Tribunal (CESTAT) has observed that the amount seized in cash by the authorities is to be refunded along with the interest.The bench of Rachna Gupta (Judicial Member) has observed that the appellant is entitled to a refund of interest on the principal amount at the rate of 12% from the date of its seizure.The tribunal has observed that, as per Article 300A of the Constitution of India, no person shall be deprived of his property...

Directors Not Negligent; Wrong Invocation Of Section 179 IT Act: Gujarat High Court

The Gujarat High Court has ruled that the Directors of the assessee company cannot be held negligent merely because they failed to deposit before the Assessing Officer 20% of the demand raised, so as to seek stay of demand during the pendency of an appeal before the CIT(A). Thus, the Court held that jurisdiction under Section 179 of the Income Tax Act, 1961, holding the Directors of the assessee company liable to pay the company's outstanding tax dues, could not have been invoked by the...

CESTAT Allows Cenvat Credit On Parts For Efficient Functioning Of Machine For Sugar Production

The Mumbai Bench of the Customs, Excise and Service Tax Appellate Tribunal (CESTAT) has allowed the cenvat credit on parts for the efficient functioning of machines for manufacturing.The bench of Ajay Sharma (Judicial Member) has observed that the appellant is justified in availing the Cenvat credit on various items, namely, S.S. Welding Tube, Steel, Tubes, Alloy Steel Pipe, Prime HR Steel Coil, M.S. Wire, M.S. Slate, S.S. Welded Tube, HR Steel Pipe, and Link Outer, which are used in those...

AP Govt. Constitutes Committee To Examine The Grievances Of Taxpayer's High-Pitched Assessments

The Commercial Tax Department of Andhra Pradesh has constituted the State Level Committee to examine the grievances of taxpayers relating to high-pitched assessments and their demands.D. Ramesh (Commissioner, ST) Audits serves as the committee's chairman. It is made up of one member, the secretary, Y. Kiran Kumar (Jt. Commissioner, Enforcement-1), and one member, G. Kalpana (Jt. Commissioner, Enforcement-2).This committee was established with the intention of dealing with taxpayers' legitimate...

Property Transferred to Mother Through Sale Deed Is A Sale And Not Gift, Taxable As Capital Gain: ITAT

The Rajkot Bench of the Income Tax Appellate Tribunal (ITAT) has held that the property transferred by the assessee to his mother for consideration of Rs. 5 lakh is liable to be brought under the ambit of capital gain.The two-member bench of Suchitra Kamble (Judicial Member) and Waseem Ahmed (Accountant Member) has directed the AO to refer the matter to the Department Valuation Officer (DVO) to determine the value of the property in accordance with the provisions of Section 50C of the Income Tax...

Tax Cases Weekly Round-Up: 18 December to 24 December 2022

Supreme CourtSmall 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. Bombay High Court Bombay High Court Allows Deduction On Issuance Of...

Transfer Of Fintech App To Subsidiary Is Transfer Of Going Concern: Karnataka AAR

The Karnataka Authority for Advance Ruling (AAR) has held that the GST exemption is available on the transfer of an independent part of business pertaining to mobile software.The two-member bench of M.P. Ravi Prasad and Kiran Reddy T. has observed that the transfer of an independent part of business pertaining to the "Loan Front" app, a mobile software, qualifies as a transfer of going concern, and the said activity amounts to "service by way of transfer of going concerned as an independent...

Charge Of Double Benefit Sustains Only If Assessee Claims Refund, Utilises It For Paying Excise Duty: CESTAT

The Customs, Excise, and Service Tax Appellate Tribunal (CESTAT), Ahmedabad Bench has ruled that the charge of double benefit is only valid when the assessee claims a refund and uses it to pay excise duty.The bench of Ramesh Nair (a judicial member) has observed that it set aside the order passed by the Revenue Department rejecting the refund application of the assessee. The refund cannot be denied on the basis of the Appellant receiving a double benefit as a result of the non-transfer of...

Rajasthan Housing Board, A Govt. Authority - Services Exempted From GST: AAR

The Rajasthan Authority for Advance Ruling (AAR) has held that services provided by the Rajasthan Housing Board in relation to any function entrusted to a municipality under Article 243 W of the Constitution are exempt from GST.The two-member bench of Umesh Kumar Garg and M.S. Kavia has observed that the Rajasthan Housing Board is covered under the definition of "government authority."The applicant, Rajasthan Housing Board (RHB), was established on February 24, 1970, by the Rajasthan Housing...

Compensation On Cancellation Of Leasehold Rights Over A Plot, Capital Receipt: Delhi High Court

The Delhi High Court has held that the leasehold rights held by the assessee in the plot were a capital asset and that the compensation received by the assessee from the Government of Goa on the cancellation of the plot was a capital receipt and not a revenue receipt.The division bench of Justice Manmohan and Justice Manmeet Pritam Singh Arora has observed that if an agreement for the transfer of rights in an immovable property is not performed by the transferor, the transferee is entitled to...