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...

Onus To Prove The Goods Were Smuggled Lies On The Department: CESTAT

The Delhi Bench of the Customs, Excise and Service Tax Appellate Tribunal (CESTAT) has ruled that the department bears the burden of proving that the goods are smuggled.The bench of Anil Choudhary (a judicial member) has observed that the show cause notice is vague as the valuation of the goods has been done by the Revenue without any relied-upon documents, i.e., copy of any retrieved documents from the mobile/CPU of the appellant/assessee.A search was conducted on the premises of the appellant,...

Scrap Neither Generated From Manufacturing Nor From Cenvatable Input/Capital Goods, No Excise Duty Payable: CESTAT

The Ahmedabad Bench of the Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has observed that excise duty is not payable on scrap, which is neither generated from the manufacturing process nor generated from the cenvatable input or capital goods.The two-member bench of Ramesh Nair (Judicial Member) and Raju (Technical Member) has observed that the Show Cause Notice was baldly issued without carrying out any investigation as to whether the appellant has availed of the Cenvat Credit in...

Bogus Share Transaction: ITAT Denies Exemption Under Section 10(38) Of Income Tax Act

The Pune Bench of the Income Tax Appellate Tribunal has ruled that where the assessee fails to establish the genuineness of the transaction of sale and purchase of shares, and fails to rebut the findings of quasi-judicial bodies regarding the bogus transaction in shares, the said transaction is void ab initio. Thus, applying the principle of fraud, the ITAT held that the assessee was not eligible for exemption of capital gains under Section 10(38) of the Income Tax Act, 1961. The bench...

CBIC Issues Instructions Regarding Manner of processing and sanction of IGST refunds

The Central Board of Indirect Taxes and Customs (CBIC) has issued instructions regarding the manner of processing and sanctioning IGST refunds withheld in terms of Rule 96(4)(c), which were transmitted to the jurisdictional GST authorities under Rule 96(5) of the CGST Rules.The SOPs for verification of risky exporters and their suppliers, dated January 23, 2020, were issued to CGST and Customs formations, as well as the Directorate General of Analytics and Risk Management (DGARM), and an SOP...

Allegations based on assumptions In The SCN : CESTAT Deletes Penalty

The Kolkata Bench of the Customs, Excise and Service Tax Appellate Tribunal (CESTAT) has held that the allegation of clandestine manufacture and removal of finished goods by the Appellant made in the Show Cause Notice was merely based on assumption and presumption.The bench of P.K. Choudhary (a judicial member) has observed that the charge of clandestine clearance is a serious charge, and the onus to prove the same is on the department to adduce concrete and cogent evidence. In the absence of...

Department Is Not Allowed To Travel Beyond The Issues Involved In Limited Scrutiny Cases: ITAT

The Delhi Bench of the Income Tax Appellate Tribunal (ITAT) has held that the department is not allowed to travel beyond the issues involved in limited scrutiny cases.The two-member bench of N.K. Choudhary (Judicial Member) and Pradip Kumar Kedia (Accountant Member) have observed that the assessee was selected for limited scrutiny, and the addition in hand does not emanate from the grounds on which the case of the assessee was picked up for limited scrutiny.The appellant/assessee filed its...

Purchase Of ATM within India: CESTAT Deletes Penalty Under Customs Act Against CitiBank

The Mumbai Bench of the Customs, Excise and Service Tax Appellate Tribunal (CESTAT) has deleted the penalty under the Customs Act against CitiBank on the purchase of an ATM within India.The two-member bench of Suvendu Kumar Pati (Judicial Member) and Sanjeev Shrivastava (Accountant Member) has observed that a transaction concerning the purchase of an item within India, which is unrelated to its importation and to the importer as the transaction is confined between the Appellant Citibank and...

CBIC Extends Exemption From Maintaining Deposits In ECL Under Customs Act Till 31st March, 2023

The Central Board of Indirect Taxes and Customs (CBIC) has extended the exemption from maintaining deposits in the Electronic Cash Ledger (ECL) under the Customs Act till March 31, 2023.The Board, empowered under section 51A of the Customs Act, 1962, has amended notification No. 47/2022-Customs (NT) dated May 31, 2022.The CBIC exempted deposits from the provisions of Section 51A of the Customs Act until November 29, 2022, according to notification No. 47/2022-Customs (NT) dated May 31, 2022.As...

Dispute Arising Out Of Erstwhile Central Excise Act Has To Be Dealt With Under Its Provisions And Not Under GST: Jharkhand High Court

The Jharkhand High Court has held that the initiation of proceedings by the department under section 73 (1) of the CGST Act, 2017 for alleged contravention of the Central Excise Act (C.E.A.) and Finance Act against the petitioner in terms of Section 140 of the CGST Act for the transition of CENVAT Credit as being inadmissible under GST was beyond his jurisdiction.The division bench of Justice Aparesh Kumar Singh and Justice Deepak Roshan has observed that if proceedings for the transition of...

ITAT Deletes Addition On Cash Deposits Before Demonetisation

The Chennai Bench of the Income Tax Appellate Tribunal (ITAT) has directed the Assessing Officer (AO) to delete the addition made on account of cash deposits made before demonetization.The bench of G. Manjunatha (an accountant member) has observed that as per Section 5 of the Specified Bank Notes (Cessation of Liabilities) Ordinance, 2016, from December 31, 2016, no person shall, knowingly or voluntarily, hold, transfer, or receive any Specified Bank Notes. There was no prohibition on dealing...

Section 45(4) Of Income Tax Act Applicable To Cases Of Subsisting Partners Of A Partnership Transferring The Assets In Favour Of A Retiring Partner: Supreme Court

A Supreme Court bench comprising Justices M.R. Shah and M.M. Sundresh held that Section 45(4) of the Income Tax Act was applicable to not only the cases of dissolution but also cases of subsisting partners of a partnership, transferring the assets in favour of a retiring partner.The respondent assessee, a partnership firm originally consisted of four partners (all brothers) engaging in the business of Dyeing and Printing, Processing, Manufacturing, and Trading in Clothing. Under the family...