Service Tax Not Applicable On Amount Received As Discount From Vehicle Manufacturer By The Dealer: CESTAT

The Ahmedabad Bench of the Customs, Excise and Service Tax Appellate Tribunal (CESTAT) has held that the amount received as a discount or incentive from the vehicle manufacturer by the dealer is not liable for service tax.The two-member bench of Ramesh Nair (judicial member) and Raju (technical member) has observed that a dealer purchased the vehicles from Maruti Suzuki India Ltd. and subsequently sold the same to various customers. The transaction between Maruti Suzuki India Ltd. and the dealer...

No Need Of Any "Occasion" For Receipt Of Gift By The Assessee: ITAT

The Ahmedabad Bench of the Income Tax Appellate Tribunal (ITAT) has held that there need not be any "occasion" for the assessee to receive a gift.The two-member bench of T.R. Senthil Kumar (judicial member) and Annapurna Gupta (accountant member) noted that the assessee received the gift from his own brother, who has been a non-resident since 1966. The allotment of shares was made under the NRI quota to the assessee's brother in the USA. Thus, the source and genuineness are being proved beyond...

CESTAT Allows Customs Duty Refund Claim Paid Through DEPB Scrip

The Mumbai Bench of the Customs, Excise and Service Tax Appellate Tribunal (CESTAT) has allowed the customs duty refund claim paid through the Duty Entitlement Pass Book (DEPB) scrip.The bench of Ajay Sharma (Judicial Member) has observed that the department has failed to establish through any kind of document or case law that debit of any amount under the DEPB scheme is not a mode of payment of duty, and therefore the benefit cannot be denied to the appellant.DEPB Scrips could also be used to...

Cancellation Of GST Registration On Health Issues; Madras High Court Revokes

The Madurai Bench of the Madras High Court has lifted the cancellation of the GST registration as the tax returns were not filed by the taxpayer due to health-related issues.The single bench of Justice Mohammed Shafiq, while considering the directions issued in the cases of Tvl. Suguna Cutpiece Vs Appellate Deputy Commissioner (ST) (GST) and others, has directed the department to revoke the cancellation of the GST registration.The petitioner has challenged the order of cancellation of the...

DGFT Extends Validity Of Pre-Shipment Inspection Agency Till December 31, 2022

The Directorate General of Foreign Trade (DGFT) has extended the validity of the Pre-Shipment Inspection Agency."The validity of recognition of the Pre-Shipment Inspection Agency (PSIAS) included in Appendix 2G of Appendices and Aayat Niryat Forms (A & ANF) of Foreign Trade Policy 2015-20, which are completing their original tenure of three years as of December 3, 2022, is extended up to December 31, 2022," the notification read.The DGFT, empowered under Foreign Trade Policy 2015–20, has...

Revocation of GST Registration Can't Be Rejected Solely For Delay In Moving Revocation Application: Allahabad High Court

The Allahabad High Court has held that the rejection of registration solely on the ground of delay in moving the revocation application is not sustainable in law when the entire tax is deposited.The single bench of Justice Rohit Ranjan Agarwal has observed that once the department has accepted the return and there are no outstanding dues, the department should not obstruct the business of an assessee.The petitioner/assessee is registered under the U.P. Goods and Services Tax Act, 2017. Due to...

Export Proceeds Not Remitted Within Time; Duty Drawback To Be Recovered: Delhi High Court

The Delhi High Court has held that the exporter is otherwise not entitled to duty drawback and, if already paid, is liable to be reimbursed because the buyer did not send any export proceeds within the required time frame.The division bench of Justice Rajiv Shakdher and Justice Tara Vitasta Ganju has observed that since the amount that is lying credited to the petitioner's account, concededly, represents a part of the duty drawback sanctioned in favor of the petitioner against 20 shipping bills,...

Tax Cases Monthly Round-Up: November, 2022

Indirect Taxes Supreme Court Industrial Townships Are "Local Areas" For Entry Tax Levy By States Though They Are Excluded From Municipalities : Supreme Court Case Title: OCL India Limited vs State of Orissa Citation: 2022 LiveLaw (SC) 911 The Supreme Court upheld States' power to impose entry tax from Industrial Township/Areas. The bench of CJI UU Lalit, Justices S. Ravindra Bhat and J B Pardiwala held that industrial townships are 'local area' for the purposes of entry...

Freight Charges Are Not Includible In Assessable Value Of Liquid Carbon Dioxide: CESTAT

The Delhi Bench of the Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has ruled that freight charges are not deductible from the assessable value of liquid CO2, despite the fact that they were separately charged in the invoices and the gas was sold at the time of clearance from the appellant's factory.The two-member bench of Rachna Gupta (Judicial Member) and P. Venkata Subba Rao (Technical Member) has observed that the authorities below are held to have wrongly confirmed the duty...

Wrong VAT Rate Can Be Rectified: Kerala High Court

The Kerala High Court has held that the mistake of applying the wrong value-added tax (VAT) rate can be rectified.The single bench of Justice Gopinath P. has observed that, as per Section 66 of the KVAT Act, once it is brought to the notice of the officer that there is a mistake in applying the correct rate of tax, it is within the power conferred on the officer to rectify the mistake.The petitioner/assessee has submitted that goods that were taxable at the rate of 5% were assessed at the rate...

Credit Accumulated Due To Clearance Of Excisable Goods, Bar Of Unjust Enrichment Is Not Attracted: CESTAT

The Delhi Bench of the Customs, Excise and Service Tax Appellate Tribunal (CESTAT) has observed that the credit has been accumulated due to the clearance of excisable goods during the Excise Law Regime for export and that the bar of unjust enrichment is not attracted.The bench of Anil Choudhary (a Judicial Member) found that the appellant had not begun production or manufacturing activities, nor had any taxable goods been cleared, on or after 1.7.2017. The debit recorded by the appellant in the...

GST ITC Is Not Admissible On Amount Paid To Canteen Service Providers, Amount Recovered From The Employees: Uttarakhand AAR

The Uttarakhand Authority of Advance Ruling (AAR) has ruled that the Input Tax Credit (ITC) is not admissible on the amount paid to the canteen service providers and on the amount recovered from the employees.The two-member bench of Rameshwar Meena and Anurag Mishra has observed that the nominal amount of recoveries made by the applicant from the employees who are provided food in the factory canteen would be considered a "supply."The applicant is an engineering company engaged in the...