GST Order Need Not Elaborately Deal With Every Submission In Taxpayer's Reply: Delhi High Court

The Delhi High Court has held that merely because a GST adjudicating authority does not elaborately deal with every submission made by an assessee in reply to a show cause notice (SCN), the same cannot lead to a conclusion that the representation was not considered.A division bench of Justices Anil Kshetrapal and Shail Jain observed that while Section 74(9) of the Central Goods and Services Tax Act, 2017 obligates the proper officer to consider the noticee's representation before determining...

Karnataka High Court Upholds Bengaluru's Uniform Property Tax On Five-Star Hotels, Rejects Article 14 Challenge

The Karnataka High Court has recently upheld the application of a uniform property tax slab to Five-Star Hotels under the Bruhat Bengaluru Mahanagara Palike (BBMP) Property Tax Rules, ruling that such hotels constitute a distinct and uniform class irrespective of where they are located in Bengaluru. A Division Bench of Justice D.K. Singh and Justice T.M. Nadaf dismissed an intra-court appeal filed by M.R. Kodandaram, owner of Gokula Grand Hotel & Spa, challenging a Single Judge's refusal to...

CESTAT Mumbai Sets Aside Customs Broker Licence Revocation For Lack Of Independent Findings

The Mumbai Bench of the Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has set aside the revocation of a Customs Broker's licence. It found that the customs department failed to establish that the broker had breached its obligations while handling exports that were later alleged to have been overvalued to claim higher duty drawback. A tribunal comprising Judicial Member S.K. Mohanty and Technical Member M.M. Parthiban held that the licensing authority had failed to independently...

CESTAT Mumbai Holds Investment Advice To Overseas Client Is Export, Allows Tata Realty Refund

The Mumbai Bench of the Customs, Excise and Service Tax Appellate Tribunal (CESTAT) on 7 July held that investment advisory services provided by an Indian company to an overseas client qualify as export of service, even if the advice relates to investment opportunities in India. Judicial Member S.K. Mohanty and Technical Member M.M. Parthiban allowed the appeal filed by Tata Realty & Infrastructure Ltd. and held that the company was entitled to refund of accumulated CENVAT credit as the...

CESTAT Mumbai Allows KSB's Concessional Duty Claim For Boiler Feed Pumps Classified As Water Pumps

On 8 July, the Mumbai Bench of the Customs, Excise and Service Tax Appellate Tribunal (CESTAT) held that boiler feed pumps and condensate extraction pumps primarily designed to handle water are eligible for concessional excise duty under Serial No. 235 of Notification No. 12/2012-CE. Judicial Member S.K. Mohanty and Technical Member M.M. Parthiban held that such pumps are classifiable under Central Excise Tariff Item (CETI) 84137010 and not under CETI 84137095 as claimed by the Department and...

Kerala High Court Reiterates Interest Under Kerala Luxury Tax Act Cannot Be Demanded For Pre-2009 Period

The Kerala High Court has recently reiterated that interest under the Kerala Tax on Luxuries Act cannot be demanded for any period before the statutory provision enabling such recovery came into force on April 1, 2009. It dismissed the State's appeal, following its earlier ruling in Casino Hotel v. State of Kerala, which had already settled the issue. The Kerala Tax on Luxuries Act imposes a tax on charges collected for specified luxury accommodation and services. A Division Bench of Justice...

Section 263 Assessment Cannot Survive After Original Order Is Quashed As Time Barred: ITAT Kolkata

On 8 July, the Kolkata Bench of the Income Tax Appellate Tribunal (ITAT) held that a fresh assessment order passed pursuant to revision proceedings cannot survive once the original assessment has been quashed as time barred. It becomes “invalid and void ab initio” since the original assessment no longer exists in law. Judicial Member Pradip Kumar Choubey and Accountant Member Rajesh Kumar allowed the cross objection filed by Dozco India Private Limited and dismissed the Revenue's appeal as...

ITAT Delhi Deletes ₹13.97 Crore TP Adjustment Against Coca-Cola India Over Delayed Receivables

The Delhi Bench of the Income Tax Appellate Tribunal (ITAT) has recently held that Coca Cola India Inc.'s Indian branch cannot be subjected to a transfer pricing adjustment over delayed recovery of receivables from its Associated Enterprises (AEs) where it had no borrowings and its working capital requirements were entirely funded by its US head office. A bench of Judicial Member Vimal Kumar and Accountant Member S. Rifaur Rahman partly allowed the Revenue's appeal only on the issue of interest...

ITAT New Delhi Quashes NIIT Revision, Says Action Was Triggered By Higher Authorities' 'Pressures'

The Delhi Bench of the Income Tax Appellate Tribunal (ITAT) on 8 July held that revision proceedings under Section 263 of the Income Tax Act cannot be sustained when the Commissioner of Income Tax acts under the pressure of higher authorities instead of independently applying his mind. Judicial Member Satbeer Singh Godara and Accountant Member M. Balaganesh partly allowed NIIT Ltd.'s appeals for Assessment Years 2000-01 to 2005-06 and quashed the revision proceedings initiated against the...

Revenue Cannot Disallow Purchases As Bogus After Accepting Corresponding Sales: ITAT Ahmedabad

The Ahmedabad Bench of the Income Tax Appellate Tribunal (ITAT) has recently quashed the reopening of an assessment and deleted an addition of ₹22.47 crore made against a trader in copper scrap and ingots, holding that the Revenue failed to establish that the purchases were bogus despite accepting the corresponding sales. A tribunal comprising Judicial Member Sanjay Garg and Accountant Member Annapurna Gupta observed: "If the assessee has made the sales, it is obvious that he has also made the...

Delhi High Court Refuses Higher Interest On Service Tax Refund Beyond Statutory 6% Rate

The Delhi High Court has dismissed an appeal seeking enhancement of interest from 6% to 12% per annum on the refund of a service tax deposit made during investigation, holding that once the statute prescribes the rate of interest payable, courts cannot award a higher rate in the absence of any challenge to the statutory provision or the notification issued thereunder.A Division Bench of Justices Anil Kshetrapal and Shail Jain upheld a CESTAT order granting interest at 6% per annum under Section...

CESTAT Allahabad Upholds ₹5.22 Lakh Service Tax Demand, Holds Services To Non-Educational Institutions Not Exempt

The Allahabad bench of the Customs, Excise and Service Tax Appellate Tribunal (CESTAT) has recently upheld a service tax demand of ₹5.22 lakh, along with interest and penalties, against DK Infosolutions Pvt. Ltd. It held that the company was not entitled to claim exemption meant for services provided to educational institutions because its services were rendered to commercial entities. A single-member bench of Technical Member Sanjiv Srivastava dismissed the company's appeal. The tribunal...