CESTAT Allows Vodafone Idea To Avail CENVAT Credit Against Debit Notes

The Mumbai Bench of the Customs, Excise and Service Tax Appellate Tribunal (CESTAT) has allowed Vodafone Idea Limited to avail CENVAT credit on the debit notes issued to it, pertaining to reimbursements of diesel and electricity costs, on which service tax liability under Finance Act, 1994 had been discharged. The Bench of Ajay Sharma (Judicial Member) and C J Mathew (Technical Member) ruled that CENVAT credit can be availed against invoices or debit notes that contain substantially...

Change In Taxation Regime Should Not Affect Credit Availment Right Of Assessee: CESTAT

The Delhi Bench of the Customs, Excise and Service Tax Appellate Tribunal (CESTAT) has held that a change in the taxation regime should not affect the credit availment right of the assessee.The bench of Rachna Gupta (Judicial Member) observed that, under Section 174(2)(c) of the CGST Act, the appellant's right, privilege, and right to credit cannot be affected solely because the refund was rejected due to the limitation being passed after December 27, 2017.The appellant/assessee is the...

ITAT Allows 60% Depreciation On ATM machines As Applicable To Computer Software

The Chennai Bench of the Income Tax Appellate Tribunal (ITAT) has allowed the 60% depreciation on ATM machines as applicable to computer software.The two-member bench of Sonjoy Sharma (Judicial Member) and G. Manjunatha (Accountant Member) has observed that once the assessee is entitled to 60% of depreciation on ATM machines, the Assessing Officer has to work out the depreciation right from the beginning at 60% to compute WDV.The appellant/assessee is in the business of providing automated...

Hike In GST Rate On Renewable Energy Devices, Imposition of Basic Customs Duty On Cells To Be Treated As Change In Law: MNRE

The Ministry of New & Renewable Energy (MNRE) has issued a circular stating that the increase in the rate of GST on renewable energy devices and the imposition of Basic Customs Duty (BCD) on cells and modules would be treated as changes in the law.BCD at the rate of 25% has been imposed on imports of solar PV cells and BCD at the rate of 40% has been imposed on imports of solar PV modules with effect from April 1, 2022.As per the notification dated September 30, 2021, the GST rate for...

Service Tax Not Leviable On Business Exhibition Service Performed Outside India: CESTAT

The Ahmedabad Bench of the Customs, Excise and Service Tax Appellate Tribunal (CESTAT) has held that service tax is not leviable on business exhibition services performed outside India.The two-member bench of Ramesh Nair (Judicial Member) and Raju (Technical Member) observed that as per Rule 3 of Sub Rule (II) of the Taxation of Services (Provided from Outside India and Received in India) Rules 2006, a service can be taxable in the hand of the recipient of the service in India only when the part...

Self-Certified Copies Of Documents Are Sufficient For Claiming Exemption Under Section 12AA of the Income Tax Act: ITAT

The Jaipur Bench of the Income Tax Appellate Tribunal (ITAT) has held that the self-certified copies of documents are sufficient for the purpose of claiming exemption under section 12AA of the Income Tax Act.The two-member bench of Dr.S. Seethalakshmi (Judicial Member) and Rathod Kamlesh Jayantbhai (Accountant Member) have observed that CIT(E) has erroneously passed the order without considering that the assessee has submitted all the necessary documents which were raised in the form of...

DGFT Issues Clarification On Export Policy of Rice

The Director General of Foreign Trade (DGFT) has issued a trade notice regarding the export policy of rice.The government changed the export policy for broken rice from "free" to "prohibited" with immediate effect by notification dated September 8, 2022, which was followed by trade notices dated September 28, 2022.The DGFT received complaints about rice (5% and 25%) have been made, claiming that irrevocable letters of credit that were issued before September 8, 2022, are also being stopped at...

ITAT Disallows Cost of improvement As Assessee Did Not Produce Supporting Bills, Vouchers, Source Of Funds

The Mumbai Bench of the Income Tax Appellate Tribunal (ITAT) has disallowed the cost of improvement as the assessee failed to produce supporting bills, vouchers, sources of funds, etc.The two-member bench of Sandeep Singh Karhail (Judicial Member) and Om Prakash Kant (Accountant Member) noted that the claim of the assessee was denied by the lower authorities in the absence of proof with regard to the cost of improvement claimed by the assessee.The assessee, being an individual, expired on June...

CBIC Issues Clarification On Extended Timelines For GST Compliance

The Central Board of Indirect Taxes and Customs (CBIC) has issued a clarification on the extended timelines for GST compliance.The CBIC has issued the notification dated 28.09.2022 by which it appointed 01.10.2022 as the date on which the provisions of sections 100 to 114, except clause (c) of section 110 and section 111, of the Finance Act, 2022, shall come into force.Section 100(b) of the Finance Act of 2022 deals with claiming ITC in the return for any invoice or debit note.Section 102 of the...

ITAT Allows Deduction To ICICI Bank On Interest Expense On Perpetual Bonds

The Mumbai Bench of the Income Tax Appellate Tribunal (ITAT) has allowed ICICI Bank the deduction on interest expense on perpetual bonds.The two-member bench of Kavitha Rajagopal (Judicial Member) and Amarjit Singh (Accountant Member) has observed that merely that RBI recognises treating the said debt instruments as additional tier/capital would not change the nature of Innovative Perpetual Debt Instruments, which were of the nature of long-term borrowings and the interest paid was debited to...

CBIC Extends Concessional Custom Duty On Import Of Edible Oil Till March 2023

The Central Board of Indirect Taxes and Customs (CBIC) has extended concessional customs duty on the import of edible oil till March 31, 2023, to keep domestic prices under control.The concessional customs duty on edible oil imports has been extended by another 6 months, which means that the new deadline will now be March 2023. Prices of edible oil have been on a declining trend, driven by a fall in global prices. With falling global rates and lower import duties, retail prices of edible oils...

Bombay High Court Allows Taxpayer To Utilise Amount Available In Electronic Credit Ledger to Pay Pre-Deposit

The Bombay High Court has held that the taxpayer may utilise the amount available in the Electronic Credit Ledger to pay the 10% of tax in dispute as prescribed under Sub-section (6) of Section 107 of the CGST Act.The division bench of Justice K.R. Shriram and Justice A.S. Doctor restored the appeal on the taxpayer's promise to debit the Electronic Credit Ledger within one week of the order being uploaded towards the 10% payable under Section 107(6)(b).The court noted that Section 107(6)(b)...