Allegations Of Clandestine Removal Of Goods Merely Based On Entries In Diaries Not Sustainable: CESTAT

The Allahabad Bench of the Customs, Excise and Service Tax Appellate Tribunal (CESTAT) has held that the allegation of clandestine removal is merely based on the entries in diaries, etc. is not sustainable.The bench of P. Anjani Kumar (Technical Member) has observed that the department has not adduced any additional evidence, even on a sample basis, to substantiate the allegation of clandestine removal.The appellants/assessee are in the manufacture of iron flats, spring leaves, and agricultural...

Parathas Different from Plain Chapatti, Attracts 18% GST: Gujarat AAAR

The Gujarat Appellate Authority of Advance Ruling (AAAR), while upholding the ruling of AAR, has held that 18% GST is applicable on parathas.The two-member bench of Vivek Ranjan and Milind Torawane has observed that the parathas are different from plain chapatti or roti and cannot be treated as or covered under the category of plain chapatti or roti. The appropriate classification of parathas would be under Chapter Heading 2106.The appellant is in the business of producing eight varieties of...

CENVAT Credit Eligible On Service Tax Paid By Registered Premises Even If Invoices Raised In The Name Of Unregistered Branch Office: CESTAT

The Mumbai Bench of the Customs, Excise and Service Tax Appellate Tribunal (CESTAT) has held that the assessee is eligible for CENVAT Credit on service tax paid by registered premises even if invoices raised are in the name of an unregistered branch office.The single bench of Suvendu Kumar Pati (Judicial Member) has observed that in the event of centralised billing and centralised accounting systems, when one registration is permissible under Section 4(2), discharging Service Tax liability from...

Income Tax On Interest Income From FD, Ownership Need To Te Determined By Arbitral Tribunal: Delhi High Court

The Delhi High Court has held that income tax cannot be levied on the interest income from fixed deposits till the ownership is determined by the arbitral tribunal.The division bench of Justice Manmohan and Justice Manmeet Pritam Singh Arora has agreed with the finding of the two Appellate Authorities below that till the final award was passed by the Arbitral Tribunal determining the ownership of the fixed deposits and interest, it could not be said that the interest income had crystallised in...

CESTAT Allows Refund Of Amount Reversed In CENVAT Credit Account To Reliance Industries

The Mumbai Bench of the Customs, Excise and Service Tax Appellate Tribunal (CESTAT) has held that Reliance Industries Ltd. was ineligible for a refund of amounts that had, inadvertently, been reversed in the CENVAT credit account under rule 6(3A) of the CENVAT Credit Rules, 2004 between April 2010 and March 2011.The two-member bench of Ajay Sharma (Judicial Member) and C.J. Mathew (Accountant Member) has observed that Reliance Industries has not used any incremental input and input services for...

Preventing Docket Explosion - Pre-SCN Consultation Should Be Held : Delhi High Court

The Delhi High Court has held that it is obligatory on the part of the concerned officer to ensure that prior to the issuance of the show-cause notice (SCN), a pre-notice consultation is held with the person chargeable with customs duty or interest.The division bench of Justice Rajiv Shakdher and Justice Tara Vitasta Ganju has observed that the person chargeable with duty or interest was required to be given fifteen days to make his submission, in writing, concerning the grounds communicated to...

Delhi High Court Directs IGST Refund After Deducting Differential Amount Of Duty Drawback

The Delhi High Court has directed the department to grant IGST refund paid on the goods exported after deducting the differential amount of duty drawback.The division bench of Justice Manmohan and Justice Manmeet Pritam Singh Arora has observed that the Jurisdictional Commissionerates shall be entitled to verify the extent of duty drawback availed by the petitioners and also whether they have availed duty drawback/CENVAT Credit of Central Excise & Service Tax component in respect of the...

ITAT Allows Deduction On Credit Facilities Given By Co-operative Society To Its Members

The Ahmedabad Bench of the Income Tax Appellate Tribunal (ITAT) has allowed the deduction under Section 80P of the Income Tax Act on the credit facilities given by the co-operative society to its members as they were directly related to the business while deriving interest.According to the two-member bench of Suchitra Kamble (Judicial Member) and Waseem Ahmed (Accountant Member), unlike Nationalised Banks, co-operative credit societies/cooperative banks have different setups where deduction...

Clean Energy Cess To Be Imposed For Collection Of Cess On Polluting Fossil Fuels: CESTAT

The Delhi Bench of the Customs, Excise and Service Tax Appellate Tribunal (CESTAT) has held that the Clean Energy Cess has been imposed for the collection of cess on polluting fossil fuels so as to create additional funds for taking measures to reduce carbon emissions and pollution.The two-member bench of Anil Choudhary (Judicial Member) and P.V. Subba Rao (Technical Member) has observed that under the Clean Energy Cess Rules, the cess has to be deposited through cash/PLA and cannot be deposited...

CBIC Issues Instructions Regarding Changes To Import Policy for Fresh (Green) Areca Nut

The Central Board of Indirect Taxes and Customs (CBIC) has notified the instructions regarding changes to the import policy for fresh (green) areca nuts.The CBIC directed the Kolkata Customs Zone to develop an appropriate mechanism for the registration of registration certificates (RC), debit/utilisation of the quantity in the RC, and monitoring the validity of the RC.The Kolkata Customs Zone was instructed to develop an overall monitoring mechanism for the effective implementation of the...

Travel Agent's Booking Function Is Not Substantial Business Activity And Not Taxable: Delhi High Court

The Delhi High Court has held that the travel agents in India were merely connected to the extent that they could perform a booking function but were not capable of processing the data of all the airlines together in one place.The division bench of Justice Manmohan and Justice Manmeet Pritam Singh Arora has held that a booking function is not covered under substantial business activity and, therefore, not taxable.The ITAT and CIT(A) has held that, out of several activities, the activities of...

Tax Cases Weekly Round-Up: 2 October To 8 October, 2022

Delhi High Court Rate Reduction Benefit By Reduction In Prices: Delhi High Court Directs Loreal To Deposit Principal Profiteered Amount Case Title: Loreal India Private Limited Versus Union Of India The Delhi High Court has directed Loreal to deposit the principal profiteered amount after deducting the GST imposed on the net profiteered amount in six equal instalments. The division bench of Justice Manmohan and Justice Dinesh Kumar Sharma has observed that the interest amount...