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...

Rate Reduction Benefit By Reduction In Prices: Delhi High Court Directs Loreal To Deposit Principal Profiteered Amount

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 directed to be paid by the department as well as the penalty proceedings and investigation by the National Anti-Profiteering Authority (NAA) in respect of other products sold by Loreal has stayed till further orders.The...

Health Certificate To Be Accompanied With Import Of Food Consignments: CBIC

The Central Board of Indirect Taxes and Customs (CBIC) has clarified that the health certificate must be accompanied by the import of certain food consignments.The Board by the instructions dated 12.08.2022 relating to the requirement of a Health Certificate to be accompanied with the import of certain food consignments, based on a reference from the Food Safety and Standards Authority of India (FSSAI).FSSAI has further clarified that an integrated/single certificate, incorporating food...

RBI To Soon Release e₹, releases Concept Note on Central Bank Digital Currency

The Reserve Bank of India (RBI) has issued the concept note on Central Bank Digital Currency.The Reserve Bank will soon commence pilot launches of e₹ for specific use cases.Central Bank Digital Currency (CBDC) is a digital form of currency notes issued by a central bank. While most central banks across the globe are exploring the issuance of CBDC, the key motivations for its issuance are specific to each country's unique requirements.The Concept Note explains the objectives, choices, benefits...

No GST On Subsidised Deduction made From Employees Availing Food In Factory Or Corporate Office: Gujarat AAR

The Gujarat Authority of Advance Ruling (AAR) has ruled that GST is not payable on the subsidised deduction made by the applicant from the employees who are availing food in the factory/corporate office.The two-member bench of Amit Kumar Mishra and Milind Kavatkar has observed that the subsidised deduction made by the applicant from the employees who are availing food in the factory/corporate office would not be considered a supply.The applicant is in the business of manufacturing, supplying,...

No Liability On Vivo To Pay Customs Duty On Import Of Microphones Forming Part Of Mobile Phones: CESTAT

The Delhi Bench of the Customs, Excise and Service Tax Appellate Tribunal (CESTAT) has held that Vivo is not liable to pay customs duty on the import of microphones as they form a part of cellular mobile phones.The two-member bench of Rachna Gupta (Judicial member) and P. Venkata Subba Rao (Technical Member) has observed that only 10% of customs duty is being imposed upon such goods which are part of cellular mobile phones, except for microphones/wired headsets/receivers.The appellant/assessee,...

HTP Kirloskar Power Sprayer Attracts 18% GST: AAR

The Gujarat Authority of Advance Ruling (AAR) has ruled that the 18% GST is payable on HTP Kirloskar Power Sprayer.The two-member bench of Amit Kumar Mishra and Milind Kavatkar has observed that HTP Kirloskar Power Sprayer's merit classification under HSN 8424 89 90 is covered under Entry No. 325 of Schedule-III of Notification No. 1/20l7-Central Tax (Rate), dated 28.6.2017.The applicant is in the business of manufacturing pump sets and diesel engines at its Rajkot plant and intends to sell. The...

TDS Provisions Not Applicable To Commission Paid To Bank: ITAT

The Delhi Bench of the Income Tax Appellate Tribunal (ITAT) has held that TDS provisions are not applicable to commissions paid to banks.The two-member bench of Saktijit Dey (Judicial Member) and Dr B.R.R. Kumar (Accountant Member) has observed that commission paid to partners is not covered under Section 194H of the Income Tax Act as there is no employer and employee or principal-agent relationship between the partners and the firm.The assessee/respondent is a resident partnership firm engaged...

Extracts of Land Revenue Records, Not Sufficient Evidence To Prove Agricultural Activity: ITAT

The Mumbai Bench of the Income Tax Appellate Tribunal (ITAT) has upheld that the assessee is against the addition made on account of short-term capital gains by treating the land as a capital asset.The two-member bench headed by Pramod Kumar (Vice President) and Sandeep Singh Karhail (Judicial Member) has observed that apart from the purchase and sale deeds of conveyance and 7/12 extracts from land revenue records, no other evidence has been brought on record by the assessee of having cultivated...

Minimum 30 Days Time To Be Granted To File Reply To GST SCN: Bombay High Court

The Bombay High Court has held that Section 73(8) of the Maharashtra Goods and Service Tax Act (MGST Act) permits a person chargeable with tax for a period of 30 days from the issuance of the show-cause notice to make payment of such tax along with interest payable. If he does not wish to make payment, then within the 30 day period he could file a reply to the show-cause notice.The division bench of Justice K.R. Shriram and Justice A.S. Doctor has observed that to file a reply to the show-cause...