All India Tax Cases Half Yearly Digest: January To June 2022

Indirect Tax Supreme Court GST Council Recommendations Not Binding On Centre & States; Both Parliament & State Legislatures Can Legislate On GST : Supreme Court Case Title : Union of India and Anr versus M/s Mohit Minerals Through Director Citation : 2022 LiveLaw (SC) 500 In a significant verdict, the Supreme Court held that the recommendations of the GST council are not binding on the Union and the State Governments. A bench led by Justice DY Chandrachud held...

In The Absence Of A Full And True Disclosure, Reassessment Is Not Barred By Limitation: Madras High Court

The Madras High Court has held that the criminal investigation wing is separate and distinct from the assessment wing and that disclosure made before one wing will not exonerate the assessee from the requirement of making a "full and true disclosure" before the assessing officer in an assessment.The single bench of Justice Anitha Sumanth has observed that in the absence of full and true disclosure in the first instance, the assumption of jurisdiction by the assessing authority beyond the period...

Contract For Extended Warranty Of Bentley Cars, Entered Into By Exclusive Dealer With Indian Customers, Does Not Constitute A Dependent Agent PE In India: ITAT

The Delhi Bench of the Income Tax Appellate Tribunal (ITAT) has ruled that contract for extended warranty of Bentley Cars, entered into by an exclusive dealer with the Indian customers, does not constitute a dependent agent PE in India. The Bench of Saktijit Dey (Judicial Member) and Dr. Brr Kumar (Accountant Member) noted that the assessee/exclusive dealer of Bentley Cars purchased the extended warranty from a unit of the Bentley Pre-Administrative Services, which it further sold to...

Liquidated Damages Received By Shipping Company, Not Exempt Under 'Tonnage Tax Scheme': ITAT

The Visakhapatnam Bench of theIncome Tax Appellate Tribunal (ITAT)has ruled that liquidated damages received by a shipping company cannot be included in computation of tonnage tax and therefore, they are not exempt under the 'Tonnage Tax Scheme', as provided under Chapter XIIG of the Income Tax Act, 1961. The bench of Duvvuru RL Reddy (Judicial Member) and S Balakrishnan (Accountant Member) held that the liquidated damages are not directly received from the shipping activity and that...

Job Of Bottling, Blending And Labelling Indian Made Foreign Liquor Does Not Amount To Taxable Service Under 'Business Auxiliary Service': CESTAT

The Kolkata Bench of the Customs, Excise and Service Tax Appellate Tribunal (CESTAT) has held that the job of bottling, blending and labelling Indian Made Foreign Liquor (IMFL) does not amount to taxable service under "Business Auxiliary Service".The two-member bench of P. Dinesha (Judicial Member) and Sanjiv Shrivastava (Technical Member) have observed that if the Completely Built-Up Unit (CBU) undertakes the complete process of manufacture of alcoholic beverages under the 'contract bottling...

CBDT Extends Due Date For Furnishing Income Tax Return for AY 2022-23

The Central Board of Direct Taxes (CBDT) has notified the extension of the due date for furnishing the return of income for the Assessment Year 2022–23 to November 7, 2022, for certain categories of assessees in consequence of the extension of due dates for filing various reports of an audit.Prior to the notification, the due date for furnishing the return of income under sub-section (1) of section 139 of the Act for the Assessment Year 2022–23 was October 31st, 2022.The due date has been...

Affordable Residential Apartments Attracts 1.5% GST: Kerala AAR

The Kerala Authority of Advance Ruling (AAR) has held that affordable residential apartments attract 1.5% GST.The bench of Sreeparvathi and Abraham Renn has held that a new tax structure for the real estate sector was introduced with effect from 01.04.2019 onwards by the amendment of Notification No. 11/2017 – Central Tax (Rate) dated 28.06.2017 by Notification No. 03/2019 – Central Tax (Rate) dated 29.03.2019. The construction services are being rendered by the applicant after 01.04.2019 and...

5% GST On Fishing Vessel Marine Engine And Its Spare Parts: Kerala AAR

The Kerala Authority of Advance Ruling (AAR) has observed that 5% GST is applicable on fishing vessel marine engines and their spare parts.The two-member bench of S.L. Sreeparvathy and Abraham Renn S. has observed that marine engines and their spare parts are supplied for use in vessels falling under Customs Tariff Heading 8902. If it is supplied for use other than as part of fishing vessels, GST at the applicable rate and the respective Customs Tariff Headings in which it is classified will...

GSTN Issues Advisory on Filing TRAN forms for Taxpayers from Daman and Diu And Ladakh

The Goods and Service Tax Networks (GSTN) has issued an advisory on filing TRAN forms for taxpayers from Daman, Diu, and Ladakh.Due to the reorganisation of the state of Jammu & Kashmir and the merger of the Union territories of Dadra and Nagar Haveli and Daman and Diu, the taxpayers of Ladakh and the earlier "Daman and Diu" region have been allotted new GSTINs. There was therefore doubt as to how to file the TRAN-1 and whether it would be linked with the old TRAN-1 or not.The GSTN has...

Service Tax is Payable On Computer Education Service Under Vocational Training: CESTAT

The Ahmedabad Bench of the Customs, Excise and Service Tax Appellate Tribunal (CESTAT) has held that service tax is payable on computer education services under vocational training.The two-member bench of Ramesh Nair (Judicial Member) and Raju (Technical Member) has observed that the computer education service has been excluded from the Vocational Training service by Notification No. 19/2005-ST dated 07.06.2005. The period involved was from 21.06.2006 to 30.11.2009. Therefore, the appellant is...

Dividends Received By IFFCO From OMIFCO Oman Can't Be Disallowed Under Income Tax Act: Delhi High Court

The Delhi High Court has held that the dividends received by Indian Farmers Fertiliser Cooperative (IFFCO) from Oman India Fertiliser Company S.A.O.C (OMIFCO) Oman cannot be disallowed under the Income Tax Act.The division bench of Justice Manmohan and Justice Manmeet Pritam Singh Arora has observed that since the dividend received by the assessee from OMIFCO, Oman is chargeable to tax in India under the head "Income from other sources" and forms part of the total income, it is included in...

GSTIN Linking Cannot Be Denied Merely For Providing Information In Wrong Form: Rajasthan High Court

The Rajasthan High Court has held that the Goods and Service Tax Identification Number (GSTIN) link cannot be denied merely for providing information in the wrong form.The division bench, Justice Sandeep Mehta and Justice Kuldeep Mathur, has observed that absolute hyper-technical ground cannot be considered valid so as to deny the petitioner the opportunity to link the GSTIN of his father's firm with the new GSTIN number of the firm.The erstwhile proprietor of the firm, Abdul Hameed Bhati,...