GST Council Notifies Authorities On Actions To Be Taken Consequential To The Issuance Of A Show Cause Notice And Recurring SCNs In The Case Of Enforcement Actions

The Goods and Service Tax Council has notified the authorities regarding action consequential to the issuance of a Show Cause Notice and for the issuance of a recurring Show Cause Notice in the case of an enforcement action initiated by the Central authorities against a taxpayer assigned to a State and vice versa.It has been noted that varied practices are followed by the field formations regarding the issuance of recurring SCN and other consequential actions in cases where an investigation has...

MSO Liable To Pay Service Tax For Providing Cable Operator Services To LCO: CESTAT

The Chandigarh Bench of the Customs, Excise and Service Tax Appellate Tribunal (CESTAT) has held that Multi System Operators (MSOs) are liable to pay service tax for providing cable operator services to Local Cable Operators (LCOs).The two-member bench of Ajay Sharma (Judicial Member) and P.V. Subba Rao (Accountant Member) has observed that owing to the business model of the cable operator industry, the MSO is providing cable operator services to LCOs and not to ultimate consumers, and hence the...

ITAT Deletes Disallowance u/s 14A Against Toyota As No Exempted Income Was Earned

The Banglore Bench of the Income Tax Appellate Tribunal (ITAT) has deleted the disallowance under section 14A of the Income Tax Act against Toyota as no exempted income was earned.The two-member bench headed by N.V. Vasudevan (Vice President) and Padmavathi S (Accountant Member) has noted that the AO has made the disallowance on the basis that the investment could potentially earn income, which substantiates the contention of the assessee that in the year under consideration the assessee has not...

CESTAT Allows CENVAT Credit On Welding Electrodes And Dissolved Acetylene Gas As Inputs In Cement Manufacturing Process

The Mumbai Bench of the Customs, Excise and Service Tax Appellate Tribunal (CESTAT) consisting of Suvendu Kumar Pati (Judicial Member) has allowed the CENVAT Credit on Welding Electrodes and Dissolved Acetylene Gas (D.A. Gas) as inputs in the Cement Manufacturing Process.The appellant/assessee is a manufacturer of cement and clinker having a Central Excise registration. For the process of manufacture of cement and clinker, due to grinding and heating, components of coal mills as well as kiln and...

5% GST Payable On GTA Services Availed For Transporting Cotton Seed: Punjab AAR

The Punjab Authority of Advance Ruling (AAR) has ruled that the 5% GST is chargeable on goods transport agency (GTA) services availed by the applicant for transporting cotton seed (Banaula) provided that the credit of input tax charged on goods and services used in supplying the service has not been taken, else 12% GST is applicable.The two-member bench of Varindra Kaur and Viraj Shyamkarn Tidke has observed that Cotton Seed (Banaula) is not eligible for exemption from payment of GST on GTA...

Service Tax Demand Can't Be Sustained On Ocean Freight Under RCM: CESTAT

The Delhi Bench of the Customs, Excise and Service Tax Appellate Tribunal (CESTAT) has held that the service tax demand is not sustainable as the appellant has purchased fertilisers, which are their inputs, at cost, insurance, and freight (CIF) value, which includes the ocean freight element.The appellant has paid custom duty on CIF value, which includes ocean freight, according to the single bench of Anil Choudhary (Judicial Member). Thus, there can be no demand for service tax on the purchase...

Failure To Issue ASMT 10 In Respect Of Aspects Forming Subject Matter Of Proceedings Vitiates Entire Proceedings: Madras High Court

The Madras High Court has held that ASMT 10 is mandatory before proceeding to issue GST DRC-01. Failure to issue ASMT 10 in respect of the discrepancies forming the subject matter in GST DRC-01 culminating in GST DRC-07 would vitiate the entire proceedings.The single bench of Justice Mohammed Shaffiq has observed that any proceeding in GST DRC-01A/1 culminating in an Order in GST DRC-07, if pursuant to scrutiny under Section 61 of the TNGST Act, ought to be preceded by the issuance of Form ASMT...

Appellate Authority To Bear In Mind The Predicaments Faced By Taxpayers On Introduction Of GST Procedures: Orissa High Court

The Orissa High Court has held that the Appellate Authority should have borne in mind the predicament faced by taxpayers on the introduction of a new set of procedures by way of the promulgation of the CGST Act and rules and that time is required to be taken to get acquainted.The division bench of Justice Jaswant Singh and Justice Murahari Sri Raman has observed that it preferred to exercise its writ jurisdiction to undo prejudice and injustice caused to the petitioner as the Appellate Tribunal...

Operation And Maintenance Of Municipal Wet Waste Processing Facility Attracts 18% GST: West Bengal AAR

The West Bengal Authority of Advance Ruling (AAR) has ruled that the 18% GST is payable on the operation and maintenance of municipal wet waste processing facilities.The two-member bench of Varindra Kaur and Viraj Shyamkarn Tidke observed that the supply of services to be provided to the State Urban Development Agency for the design, build, finance, operation, and transfer of municipal wet waste processing facility based on composting and bio-methanation technology; setting up a semi-automatic...

Statutory Authorities, Professional Bodies Like ICAI Entitled To Income Tax Exemption If Amounts Charged By Them Are Nominal To Cover Costs : Supreme Court

The Supreme Court has pronounced a significant judgment on the scope of exemption for "charitable purposes" under Section 2(15) of the Income Tax Act 1961 in relation to statutory authorities and professional bodies.With effect from 01.04.2009, after the Finance Act 2009, a proviso was added to the section to state : "Provided that the advancement of any other object of general public utility shall not be a charitable purpose, if it involves the carrying on of any activity in the nature of...

Vodafone Idea Not Liable To Deduct TDS On Discount Allowed To Distributors On Purchase Of Prepaid SIM Cards And Recharge Vouchers: ITAT

The Mumbai Bench of the Income Tax Appellate Tribunal (ITAT) has ruled that Vodafone Idea is not liable to Deduct Tax at Source (TDS) on the discount allowed to the distributors on purchase of prepaid SIM Cards and recharge vouchers. The Bench of Vikas Awasthy (Judicial Member) and M. Balaganesh (Accountant Member) held that since the relationship between the assessee Company and the distributors was only that of a principal to principal and not that of a principal to agent, therefore,...

Advancement Of General Public Utility Won't Be "Charitable Purpose" For Income Tax Exemption If It Is Done As Business : Supreme Court

In a significant judgment, the Supreme Court has held that entities created with the object of advancing general public utility cannot seek exemption under the Income Tax Act 1961 under the head "charitable purposes" if they are engaging in any trade, business, commerce or providing any service for any consideration.However, in the course of carrying out the general public utility, the assessee can engage in incidental trade or business or provide services for consideration and can generate...