Losses Of Upto 1% Can Be Allowed Without Detailed Scrutiny : CESTAT

The Hyderabad Bench of the Customs, Excise and Service Tax Appellate Tribunal (CESTAT) has quashed the demand of excise duty against Hindustan Petroleum and held that losses of up to 1% can be allowed without detailed scrutiny.The two-member bench headed by Justice Dilip Gupta (President) and P.V. Subba Rao (Technical Member) has observed that there was no allegation, let alone evidence, that the losses were not genuine or that the products were suspected to have been diverted or pilfered.The...

Serving Of Liquor Is Not A Charitable Activity, Income Tax Exemption Can't Be Granted: ITAT

The Delhi Bench of the Income Tax Appellate Tribunal (ITAT) has held that serving liquor is not a charitable activity and the income tax exemption cannot be granted.The two-member bench of Yogesh Kumar (Judicial Member) and Shamim Yahaya (Accountant Member) has observed that the Commissioner of Income Tax (Exemption) has relied on various bills of the Appellant wherein the service of liquor has been mentioned. However, CIT(A) has not mentioned the details of the clarification/reply given by the...

GST Department Did Not Recognize Concept Of 'Working Day' And 'Holiday' In Matters Of Interception, Seizure, Detention: Madras High Court

The Madras High Court has held that in the matters of interception, seizure, and detention, the GST Department did not recognise the concept of "working day" and "holiday" since substantial civil rights of the parties were at stake.The single bench of Justice Anitha Sumanth has observed that neither the assessee nor the department could have the luxury of reference to a holiday to delay or protract the proceedings. The acts of interception and retention, though an invasion of the rights of...

ITAT Allows Wastage Loss Due To Diesel & Petrol Tank Breakage

The Pune Bench of the Income Tax Appellate Tribunal (ITAT) has allowed the wastage loss due to diesel and petrol tank breakage.The two-member bench headed by R.S.Syal (Vice President) has observed that where the assessee demonstrates specific reasons for excess wastage/evaporation, such reasons cannot be thrown to the dustbin. They need to be examined on a case-by-case basis."Simply because the wastage/evaporation turned out to be a little higher in comparison with the standards, the authorities...

'Mistake In E-way Bill Was Human Error' | Madhya Pradesh High Court Quashes Penalty Under CGST Act

The Madhya Pradesh High Court recently quashed the penalty imposed under the Central Goods and Service Tax Act, 2017 on a private company after the petitioner argued that the mistake while generating the e-way bill was an inadvertent human error.The division bench of Justice Sheel Nagu and Justice Virendra Singh, while allowing the appeal, observed that the mistake in the e-way bill was bonafide. However, the court said the authorities will be at liberty to consider the case of...

Reassessment Notices Issued Between 1st April 2021 To 30th June, 2021 Not Time Barred: Delhi High Court

The Delhi High Court has held that the reassessment notices issued between 1st April 2021 and 30th June 2021, will be deemed to have been issued under Section 148A of the Income Tax Act.The division bench of Justice Manmohan and Justice Manmeet Pritam Singh Arora has observed that the re-assessment notice dated 29.06.2021, which has been issued within the extended period of limitation, is not time-barred.The petitioner/assessee stated that the information regarding the petitioner's alleged...

GST Registration, FSSA License Cannot Be Granted If The Premise Is Under Dispute: J&K&L High Court

The High Court of Jammu & Kashmir and Ladakh has held that the GST Registration cannot be granted if the ownership of the business owner's premise is under dispute.The single bench of Justice Sanjeev Kumar observed that until the dispute is settled between the parties amicably or through intervention of the Court of competent jurisdiction, neither the designated authority under the Food Safety and Standard Act, 2006 shall issue the licence nor registration shall be accorded under...

CBIC extends The Validity Of E-Scrip From 1 year To 2 years

The Central Board of Indirect Taxes and Customs (CBIC) has extended the validity from 1 year to 2 years.The Board has amended the Electronic Duty Credit Ledger Regulations, 2021 by notifying Electronic Duty Credit Ledger (Amendment) Regulations, 2022.In the Electronic Duty Credit Ledger Regulations, 2021, in regulation 6(2), for the words "one year", the words "two years" shall be substituted.As per Regulation 6(2) of the Electronic Duty Credit Ledger Regulations, 2021, the e-scrip shall be...

Tax Cases Weekly Round-Up: 11 September To 17 September, 2022

Supreme Court Disputes Related To Tax Concessions Are Not Arbitrable: SupremeCourt Case Title: M/s Shree Enterprise Coal Sales Pvt Ltd. Versus Union Of India Citation: 2022 LiveLaw (SC) 774 The Supreme Court has held that disputes related to tax concessions are not arbitrable. The division bench of Justice Dhananjaya Y Chandrachud and Justice Hima Kohli has observed that the High Court was in error in holding that the terms of e-auction provided that any dispute was ...

Jharkhand High Court Sets Aside Demand Notice For Payment Of Service Tax On Legal Services Provided By A Senior Advocate

The Jharkhand High Court on Thursday quashed a demand notice issued by the tax authorities to a Senior Advocate seeking payment of service tax on legal services provided by him to a legal firm.The bench of Chief Justice Ravi Ranjan and Justice Sujit Narayan Prasad, however, did not allow the prayer seeking to quash Notification No.18/2016-ST dated 1.3.2016 and Notification No. 9/2016-ST dated 1.3.2016 issued by the tax authorities to the extent that it sought to recover service tax directly from...

EOU Entitled To Claim Deemed Export Drawback On Inputs Which Remained Unutilized With Then-Existing DTA Unit: Delhi High Court

The Delhi High Court has held that duty drawback for goods should extend to unutilized goods which were available at the time of conversion of the Domestic Tariff Area (DTA) unit into a 100% Export Oriented Unit (EOU).The division bench of Justice Rajiv Shakhdher and Justice Tara Vitasta Ganju has observed that the restriction against the claim of concession in duties and taxes applied only vis-à-vis plants, machinery and equipment that had already been installed. The petitioner was...

CESTAT Allows Cenvat Credit To Indian Oil On Excise Duty Paid Towards Manufacturing Activity

The Kolkata Bench of the Customs, Excise and Service Tax Appellate Tribunal (CESTAT) has allowed the cenvat credit to Indian Oil on excise duty paid towards manufacturing activity.The bench of P.K. Choudhary (Judicial Member) has observed that once duty is paid by the assessee, treating the activity as manufacturing activity by the Department, Cenvat credit is available and there is no question of denial of Cenvat credit. The Appellant/Indian Oil is engaged in the manufacture and sale...