Cash Deposits Related To 'Shroff Business' Is Not An Undisclosed Income: ITAT

The Rajkot Income Tax Appellate Tribunal (ITAT), consisting of TR Senthil Kumar (Judicial Member) and Annapurna Gupta (Accountant Member), has ruled that the cash deposits related to the Shroff business are not an undisclosed income. The assessee/respondent is in a Shroff business and derives income from commission. The AO had information that there was a cash deposit of Rs.224.53,23,993 during the year in 16 bank accounts of the assessee. Accordingly, the assessee was asked to...

CESTAT Allows Credit Of CVD And SAD Paid For Imports Made Prior To The GST Regime

The Chennai Bench of CESTAT has allowed credit of CVD and SAD paid after 30.06.2017 for the imports made prior to 30.06.2017, i.e., prior to the GST regime, under the advance authorisation scheme. The Single Bench of Judicial Member Ms. Sulekha Beevi held that credit of CVD and SAD paid by the importer could not be denied on the ground that the duties were paid by the appellant only after an intimation letter was issued to it. The CESTAT observed that the said intimation letter had not...

Mandatory Pre-Deposit U/S 129E of the Customs Act Is Constitutional: Bombay High Court

The Bombay High Court has ruled that by virtue of section 129E of the Customs Act, the right to appeal is a conditional right. The legislature, in its wisdom, has imposed a condition of deposit of a percentage of duty demanded or penalty levied or both. The three-judge bench of Justice R.D. Dhanuka, Justice Nitin W. Sambre, and Justice Abhay Ahuja has observed that the fiscal legislation can very well stipulate as a requirement of law a mandatory pre-deposit as a condition precedent for...

"Tobacco & Tobacco Products" In Schedule To Odisha Entry Tax Act Include 'Bidi': Orissa High Court

The Orissa High Court has held that 'bidi' comes under the purview of "tobacco and tobacco products" as provided under Entry 16, Part I of the Schedule to the Odisha Entry Tax Act, 1999 ('OET Act'). A Division Bench of Chief Justice Dr. S. Muralidhar and Justice Radha Krishna Pattanaik observed, "Although learned counsel for the Petitioner sought to contend that under Entry 31 'cigarette and lighter' is a separate item and therefore unless there is a separate entry for 'bidi' it would...

Renting Land For Fish/Prawn Farming Attracts 18% GST : AAR

The Andhra Pradesh Authority of Advance Ruling (AAR), consisting of D. Ramesh and RV Pradhamesh Bhanu, has ruled that 18% GST is payable on the rental of land for fish or prawn farming as the purpose of use of land was not mentioned in the lease agreement. The applicant had executed an agreement with Grobest Feeds Corporation (India) Private Limited for the purpose of taking a vacant land with a water channel meant for fish/prawn farming. The applicant approached the Authority seeking...

Twin Conditions In Section 10B (8) Income Tax Act Has To Be Fulfilled To Claim Exemption Relief: Supreme Court

For claiming the benefit under Section 10B (8) of the Income Tax Act, the twin conditions of furnishing a declaration before the assessing officer and that too before the due date of filing the original return of income under section 139(1) are to be satisfied and both are mandatorily to be complied with, the Supreme Court observed in a judgment delivered yesterday. Section 10B (8) IT ActThe Section 10B (8) IT Act reads as follows: Notwithstanding anything contained in the foregoing...

Services Provided With Respect To A Government Sports Stadium, Not A Commercial Service; Would Not Attract Service Tax: CESTAT Delhi

The CESTAT Delhi has ruled that an activity undertaken in a stadium, which belongs to the Government and which is used for non-commercial activities, would not be covered under the definition of 'Commercial or Industrial Construction' services, as defined in Section 65 (25b) of the Finance Act, 1994, and hence, it would not attract service tax. The Bench, consisting of Justice Dilip Gupta (President) and Mr. Raju (Technical Member), held that the activity of laying Synthetic Athletic...

Cancellation Of GST Registration Affects Right To Livelihood, Writ Petition Is Maintainable: Uttarakhand High Court

The Uttarakhand High Court has held that the cancellation of GST registration affects the right to livelihood and the writ petition is maintainable. The division bench headed by the Acting Chief Justice Sanjaya Kumar Mishra and Justice Ramesh Chandra Khulbe has observed that the appellant is denied his right to livelihood because of the cancellation of his GST Registration number. He has no remedy to appeal. It shall be violative of Article 21 of the Constitution as the right to...

Erroneous Recording of Place Of Supply As The Location Of Unregistered Recipient: Telangana High Court Remands The Matter

The Telangana High Court ruled that, while the department referred to Section12(9) of the IGST Act, the department erroneously recorded that, in the instance of an unregistered receiver, the place of supply should be the recipient's location. It prima facie appears to be in contravention of Section 12(9) of the IGST Act. The division bench of Justice Ujjal Bhuyan and Justice Surepalli Nanda said, "it is prima facie evident that if the passenger is not registered under GST and avails...

Summary of Show Cause Notice In Form DRC-01 Is Not A Substitute Of Section 74(1) Show Cause Notice: Jharkhand High Court

The Jharkhand High Court held that the summary of show cause notice in Form DRC-01 is not a substitute for show cause notice under Section 74(1) of the CGST Act. The division bench of Justice Aparesh Kumar Singh and Justice Deepak Roshan has observed that though the petitioner submitted their concise reply, the respondent cannot take benefit of the action as a summary of show cause notice cannot be considered as a show cause notice as mandated under Section 74(1). It is well settled...

CESTAT Set Aside Demand Of Service Tax On Ocean Freight Charges

The Chennai Bench of the Customs, Excise and Service Tax Appellate Tribunal (CESTAT) consisting of Sulekha Beevi C.S. (Judicial Member) and P. Anjani Kumar (Technical Member) has held that the ocean freight charges collected from customers are not subject to the levy of Service Tax under Business Support Services.The appellant/assessee is a freight forwarder and is engaged in freight forwarding of import and export shipments. They provide various services and collect charges in the nature...

C&F Agent Service Is Admissible Input Service Under Cenvat Credit Rules: CESTAT

The Ahmedabad Bench of the Customs, Excise and Service Tax Appellate Tribunal (CESTAT) consisting of Ramesh Nair (Judicial Member) has held that the C & F Agent Service is an admissible input service in the terms of Rule 2(l) of the Cenvat Credit Rules, 2004. The appellant submitted that in respect of C & F Agent service, the service is provided up to the place of removal. As per the definition of input service provided under Rule 2(l) of the Cenvat Credit Rules, 2004, all the...