VAT Defaulter Not Liable To Pay Collection Charges If Opts Amnesty Scheme: Kerala High Court

The Kerala High Court has held that collection charges are not payable if a VAT defaulter opts for the Kerala Amnesty Scheme, 2017.The single bench of Gopinath P. has noted that the petitioner had settled the liabilities in terms of the provisions contained in the Amnesty Scheme of 2017, which was introduced by the provisions contained in the Kerala Finance Act 2017.The court stated that as per the provisions of Section 31A(2) of the Kerala Finance Act, 2017, the assessee/defaulter will not be...

Benefit Of Abatement Notification Can't Be Denied Merely For Mismatch In Quantum Of Purchase: CESTAT

The Ahmedabad Bench of the Customs, Excise and Service Tax Appellate Tribunal (CESTAT) has ruled that the benefit of abatement notification cannot be denied solely because of a difference in the amount of purchase shown in the profit and loss account and invoices.The two-member bench of Ramesh Nair (Judicial Member) and Raju (Technical) has observed that Notification No. 15/2004-ST or, for that matter, 01/2006-ST, does not require proof of purchase of raw material to the extent of the abatement....

"Coal rejects" Attracts 5% GST: Punjab AAR

The Punjab Authority of Advance Ruling (AAR) has held that "coal rejects" are to be classified under HSN 2701 and are taxable at 5% GST.The two-member bench of Varinder Kaur and Viraj Shyamkarn Tidke has observed that where the goods are being received in lots or instalments, the registered person shall be entitled to take credit upon receipt of the last lot or instalment. Thus, if the applicant fulfils the eligibility conditions as prescribed under Section 16 of the CGST Act and if the type of...

CESTAT Deletes Penalty On Availment of Credit Of Input Services Used In Co-Generation Plant For Generation Of Electricity Sold Outside

The Chennai Bench of the Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has deleted the penalty imposed with regard to credit availed in respect of input services used in the co-generation plant for the generation of electricity sold outside.The bench of Sulekha Beevi C.S. (Judicial Member) has upheld a penalty imposed with regard to an input service tax credit on the services used in the manufacture of ethyl alcohol.The appellant/assessee is engaged in the manufacture of sugar,...

Income Tax Exemption Eligible On Activities Undertaken For Advancement Of General Public Utility: ITAT

The Mumbai Bench of the Income Tax Appellate Tribunal (ITAT) has held that the income tax exemption under Section 11 of the Income Tax Act is eligible for activities undertaken for the advancement of general public utility.The two-member bench headed by Pramod Kumar (Vice President) and Rahul Chaudhary (Judicial Member) has observed that the activities of the appellant were directed toward the benefit of investors and potential investors, forming part of the general public and not limited to the...

Tax Cases Weekly Round-Up: 16 October To 22 October, 2022

Supreme Court Valuation Of Shares For The Purpose Of Gift Tax Should Take Into Consideration Limitation And Restrictions: Supreme Court Case Title: Deputy Commissioner of Gift Tax Versus M/s BPL Limited Citation: 2022 LiveLaw (SC) 848 The Supreme Court has held that the valuation of shares for the purpose of gift tax must take into consideration the limitations and restrictions. The division bench of Justice Sanjiv Khanna and Justice J.K. Maheshwari has observed that the...

CESTAT Allows Refund Of Unutilised Cenvat credit of Education Cess For Payment Of Output Tax

The Delhi Bench of the Customs, Excise and Service Tax Appellate Tribunal (CESTAT) has allowed the refund of unutilised cenvat credit of education cess and secondary and higher education cess for payment of output tax.The bench of Anil Choudhary (Judicial Member) has relied on the order passed by the Tribunal in the case of Bharat Heavy Electricals Ltd. Vs. Commissioner, CGST and held an assessee is entitled to a refund of unutilized cess under the existing law, lying in credit as on...

Subleasing Of Containers; Deemed Sale , Service Tax Not Applicable ; Bombay High Court

The Bombay High Court has ruled that service tax would be applicable on transfer of goods only in cases where there is no "transfer of right to use" the said goods. The bench of Justices K. R. Shriram and A. S. Doctor ruled that in view of Article 366(29A)(d) of the Constitution of India, transfer of right to use goods is a deemed sale, which is subject to Sales Tax/VAT. The Court added that Article 366 (29A) of the Constitution does not distinguish between an owner or a lessor of the...

Works contract services provided to Malabar Cancer Centre Attracts 18% GST: Kerala AAR

The Kerala Authority of Advance Ruling (AAR) has held that work contract services provided to Malabar Cancer Centre attract 18% GST with effect from 01.01.2022.The two-member bench of S.L. Sreeparvathy and Abraham Renn S. has observed that Malabar Cancer Centre is a society established by the State Government with 100 per cent participation by way of equity or control, to carry out the function of public health, a function entrusted to a municipality as well as a panchayat under Article 243W and...

GST Payable On Value Of Free Diesel Filled By Service Recipient In Vehicle: Uttarakhand AAR

The Uttarakhand Authority of Advance Ruling (AAR) has ruled that when the transaction value of the goods transport agency (GTA) service is added to the free value of diesel, the value of free diesel filled by the service recipient in the vehicle(s) provided by the applicant will be subject to GST.The two-member bench of Anurag Mishra and Rameshwar Meena has observed that the input, i.e., fuel, to run and operate the vehicle, provided free of cost by the recipient of the service, for...

Commercial Vehicle Body Building On Chassis Supplied By The Customer Is A Supply Of Service, Attracts 18% GST: Kerala AAR

The Kerala Authority of Advance Ruling (AAR) has ruled that commercial vehicle body building on chassis supplied by the customer is a supply of service.The two-member bench of S.L. Sreeparvathy and Abraham Renn S. has observed that commercial vehicle body building on chassis supplied by the customer attracts 18% GST.The applicant is in the business of bodybuilding commercial vehicles used for carrying goods. In the normal course of trade, the customers purchase the chassis and hand it over to...

CBIC Extends Due Date For Filling GSTR 3B to 21 October, 2022

The Central Board of Indirect Taxes and Customs (CBIC) has extended the due date for filing GSTR 3B to October 21, 2022."The Commissioner, on the recommendations of the Council, hereby extends the due date for furnishing the return in FORM GSTR-3B, for the registered persons required to furnish a return under sub-section (1) of section 39 read with clause (i) of sub-rule (1) of rule 61 of the Central Goods and Services Tax Rules, 2017, for the month of September, 2022, till the 21st day of...