Exporter Not Required To Hold IEC Number To Avail Benefits Under 'Service Exports From India' Scheme: Bombay High Court

The Bombay High Court has ruled that the requirement of holding an Import Export Code (IEC) number at the time of rendering services in order to avail the benefits under the Services Export from India Scheme (SEIS), as imposed by the Foreign Trade Policy 2015-2020 (FTP), is against the intent and purpose of the Foreign Trade (Development and Regulation) Act, 1992 (FTDR Act). The Division Bench of Justices S.V. Gangapurwala and Vinay Joshi held that the said condition cannot be termed as...

Definition Of Relative Under Senior Citizens Act Can't Be Treated At Par With Income Tax Act, 1961: Delhi High Court

The Delhi High Court has held that the petitioner's real intent was to ensure that gift tax is not levied on donee. The petition does not promote the maintenance and welfare of senior citizens.The division bench of Justice Manmohan and Justice Manmeet Preetam Singh Arora has observed that as per the object of the Maintenance and Welfare of Parents and Senior Citizens Act, 2007 and the Income Tax Act, 1961, the expression "relative" is not used in a similar context. The term "relative"...

CBIC Issues Advisory For AEM For Delayed Bill Of Entry Under Faceless Assessment

The Central Board of Indirect Taxes and Customs (CBIC) has issued the advisory for the Anonymised Escalation Mechanism (AEM) for delayed Bill of Entry under Faceless Assessment. The Board has endeavoured to provide an anonymized escalation mechanism for ICEGATE registered users where they can submit their grievance for delay in Bill of Entry clearance under faceless assessment. The delay in clearance would subsequently be escalated to the concerned Faceless Assessment Officers. The...

Service Of Preparation Of Scalp, Fitment And Maintenance Of Wig- Indivisible Contact: Madras High Court

The Madras High Court has held that the primary activity is the manufacture of the wig, for which the central excise duty is remitted. The fitment of the wig, including the preparation of the scalp and optional maintenance of the wig itself, is incidental to the manufacturing and supply of the wig.The single bench of Justice Anitha Sumanth has relied on the decision of the Supreme Court in the case of Imagic Creative Pvt. Ltd. Vs. Commissioner of Commercial Taxes. The Supreme Court has...

Gujarat High Court Directs CBIC To Refund IGST On Ocean Freight

The Gujarat High Court has directed the Central Board of Indirect Taxes and Customs (CBIC) to refund the Integrated Goods and Service Tax (IGST) on ocean freight within six weeks along with the statutory rate of interest.The division bench of Justice N.V. Anjaria and Justice Bhargav D. Karia has relied on the decision of the Supreme Court in the case of Mohit Minerals Pvt. Ltd. vs. Union of India in which GST on ocean freight was struck down. The Gujarat High Court, in response to a...

Tax Cases Weekly Round-Up: 31 July To 6 August, 2022

Supreme Court Advise States To Implement Digital DIN System : Supreme Court To Centre & GST Council Pradeep Goyal vs Union of India Citation: 2022 LiveLaw (SC) 654 The Supreme Court has directed the GST Council to issue advisory / instructions / recommendations to the respective States regarding implementation of the system of electronic (digital) generation of a Document Identification Number (DIN) in the indirect tax administration. The bench comprising Justices MR...

Recovery Of Tax Dues Of A Company From Its Directors Under Section 179 Of Income Tax Act, Cannot Be Invoked Casually: Bombay High Court

The Bombay High Court has ruled that exercise of jurisdiction under Section 179 of the Income Tax Act, 1961 against the director of a public company, to recover the tax dues of the said company, is violative of the principles of natural justice, where the Income Tax Authority has failed to give any opportunity of hearing to the director before applying the principle of 'lifting the corporate veil'. The Bench, consisting of Justices Dhiraj Singh Thakur and Abhay Ahuja, held that the...

Tax Exemptions Given With Benevolent Object, Approach For 'Exempting' & 'Including' Subject Matters Under Tax Purview Can't Be Same: Orissa HC

The Orissa High Court has held that the approach which is employed to exempt a commodity from the purview of taxation is not the same which is used to bring a good under the umbrella of taxation. While applying this principle, a Division Bench of Chief Justice Dr. S. Muralidhar and Dr. Justice Sanjeeb Kumar Panigrahi held that 'Chuni' is different from 'Cattle feed' under entry 66 of para-I of the Schedule attached to the Odisha Entry Tax Act, 1999 ('OET Act') and thus, the former is not...

CESTAT Allows CENVAT Credit On Service Tax Paid On Input Services Received By The SEZ Unit

The Allahabad Bench of the Customs, Excise and Service Tax Appellate Tribunal (CESTAT) has allowed the CENVAT credit on service tax paid on input services received by the SEZ unit. The two-member bench headed by Justice Dilip Gupta (President) and Raju (Technical Member) has observed that the assessee could forego exemption and claim the benefit of the CENVAT credit on the amount of service tax paid on input services as would have been available as a refund to an SEZ Unit. The...

Recovery Of Demand Against Issues Decided In Favour Of Assessee Is Unwarranted: Delhi High Court

The Delhi High Court has held that the recovery of demand against issues decided in favour of the assessee is unwarranted.The division bench of Justice Manmohan and Justice Manmeet Singh Arora has found that the Central Board of Direct Taxes (CBDT) has itself issued an Instruction dated February 2, 1993, giving guidelines for Stay of Demand. One of the guidelines for the grant of complete stay was "if the demand in dispute relates to issues that have been decided in assessee's favour by an...

Charges For Transportation Of Goods From Factory To Buyer's Premises, can't be Assessed: CESTAT

The Delhi Bench of the Customs, Excise and Service Tax Appellate Tribunal (CESTAT) has quashed the service tax demand and penalty and held that the freight charges incurred for transportation of goods from the place of removal to the buyer's premises cannot be included in the assessable value.The two-member bench headed by Justice Dilip Gupta (President) and P.V. Subba Rao (Technical Member) has observed that the "place of removal" continues to be the seller's premises, whether it be the...

CCI Approves Acquisition Of stake In IDFC by Bandhan Financial Holdings Limited, Chrys Capital and GIC

The Competition Commission of India (CCI)has approved the acquisition of a stake in IDFC Asset Management Company Limited and IDFC AMC Trustee Company Limited by Bandhan Financial Holdings Limited, ChrysCapital and GIC.During late trading hours, IDFC Ltd shares climbed more than 4% to trade at Rs 60.25 per share on the BSE. The proposed divestment remains subject to receipt of approval from the Reserve Bank of India (RBI) and the Securities and Exchange Board of India (SEBI). The...