Empty Packaging Material Of Cenvatable Input Is Not Liable For Payment Of Excise Duty Or Cenvat Credit: CESTAT

The Ahmedabad Bench of the Customs, Excise and Service Tax Appellate Tribunal (CESTAT) consisting of Ramesh Nair (Judicial Member) has held that empty packaging material of cenvatable input is not liable for payment either as excise duty or as cenvat credit under Rule 6(3) of the Cenvat Credit Rules, 2004. The appellant/assessee submitted that the adjudicating authority and Commissioner (Appeals) confirmed the demand, considering the drum as non-excisable goods. The lower...

Toll Charges Are Included In The Value Of Outward Supply: Tamil Nadu AAR

The Tamil Nadu Authority of Advance Ruling (AAR) consisting of T.G.Venkatesh and K.Latha has ruled that the value of toll charges, being incidental expenses incurred while providing outward supply, is liable to be included in the value of outward supply of service. The applicant is in the business of providing support services in relation to the rental of road vehicles, including buses, coaches, cars, and other motor vehicles. The operator is classified as HSN Code 996601, while other...

Tax Cases Weekly Round-Up: 3 July To 9 July, 2022

Delhi High Court Voluntary Statement Made Before The Revenue Authorities Cannot Substitute A Statutory Pre-Show Cause Consultation Notice: Delhi High Court Case Title: Gulati Enterprises versus Central Board of Indirect Taxes and Customs & Ors. Citation: 2022 LiveLaw (Del) 604 The Delhi High Court has reiterated that a voluntary statement made before the revenue authorities cannot substitute a statutory pre-show cause consultation notice, as contemplated under Rule 142(1A)...

Reopening of IT Assessment By Officer Having No Jurisdiction: Madras High Court Invalidates Proceedings

The Madras High Court invalidated the reassessment procedures on the basis that the reopening of the income tax assessment was conducted by an officer without jurisdiction.The division bench of Justice R. Mahadevan and Justice J.Sathya Narayana Prasad has observed that the ACIT Mumbai, who recorded the reasons for reopening the assessment, has no jurisdiction over the appellant, to issue a notice dated 28.03.2018. Though the files pertaining to the reassessment proceedings of the appellant...

Exporter Not liable For 'Change Of Landing Port' Instructions Given By Importer: CESTAT

The Ahmedabad Bench of the Customs, Excise and Service Tax Tribunal (CESTAT) has ruled that the exporter is not responsible for the instructions given by the importer regarding the change in the port after the issuance of a "Let Export Order" by the customs authority. The two-member bench of Ramesh Nair (Judicial Member) and Raju (Technical Member) has observed that the appellant lost the ownership of the goods as soon as the "let export order" was issued by the Customs authorities....

Govt. Constitutes GoM On GST Appellate Tribunal

The government notified the constitution of the Group of Ministers (GoM) on the Goods and Services Tax Appellate Tribunal (GSTAT). At its 47th meeting, held on June 28 and 29, 2022 in Chandigarh, the GST Council discussed the changes required in provisions pertaining to the GST Appellate Tribunal in the GST laws. At the meeting, the Council decided to constitute a GoM to look into the issues involved. The Finance Ministry has constituted a Group of Ministers on the Goods and Services...

Contracts With Municipalities Towards Supply Of Solid Waste Management, Except Bio-CNG Is Exempted From GST: AAR

The Tamil Nadu Authority of Advance Ruling (AAR) has ruled that contracts with municipalities towards supply of solid waste management, except Bio-CNG carried on at the Central Asphaltic Plant for the Greater Chennai Corporation, are exempted from GST. The two-member bench of G. Venkatesh and K. Latha has ruled that contracts entered into with various city corporations and municipalities towards the supply of pure services towards the removal of legacy waste dumped at dump sites...

CBIC Revokes Circular Relating To Excisability Of Waste Arising During The Process Of Manufacture

The Central Board of Indirect Taxes and Customs (CBIC) has revoked the circular relating to the excisability of waste arising during the process of manufacture.Rule 6 of the CENVAT Credit Rules, 2004 was amended with effect from March 01, 2015 by inserting Explanation 1 and 2 in sub-rule (1) of rule 6. It provides that exempted goods or final products shall include non-excisable goods cleared for consideration from the factory. A Circular No. 1027/15/2016-CX dated April 25, 2016 was ...

Sale Of Renewable Energy Certificate Of Income Received By The Assessee Is A Capital Receipt: ITAT

The Mumbai Bench of the Income Tax Appellate Tribunal (ITAT) has held that the sale of renewable energy certificates (carbon credit) of income received by the assessee is a capital receipt. The two-member bench of Kuldip Singh (Judicial Member) and Gagan Goyal (Accountant Member) has observed that the sale of carbon credit could not be a business receipt or income, nor is it directly linked with the business of the assessee, nor any asset is generated in the course of business, but it...

Approval Of Demerger Would Not Entail The Benefit Of Set-Off Under Section 72A Of Income Tax Act: ITAT

The Pune Bench of ITAT has ruled that the mere fact that the scheme of demerger or amalgamation was approved by the High Court, does not automatically entitle the assessee to claim the set-off of brought forward business losses relating to the demerged or amalgamating undertaking. The Bench, consisting of S. S. Viswanethra Ravi (Judicial Member) and Inturi Rama Rao (Accountant Member), held that Section 72A (5) of the Income Tax Act, 1961 has been enacted empowering the Assessing...

E-Rickshaw Sold Without Battery Classifiable As An "Electrically Operated Motor Vehicle" : West Bengal AAR

The West Bengal Authority of Advance Ruling consisting of Brajesh Kumar Singh and Joyjit Banik has ruled that a three-wheeled electrically operated vehicle, commonly known as an e-rickshaw, when supplied without a battery, is classifiable as an "electrically operated motor vehicle" under HSN 8703. The applicant is in the business of importing spare parts for electrically operated vehicles. The applicant intends to enter into the business of manufacturing and reselling electrically...

Calcutta High Court Sets Aside The Order Of Asst. commissioner, GST, For Not Complying Natural Justice

The Calcutta High Court bench of Justice Md. Nizamuddin has held that an order passed without granting a personal hearing violates principles of natural justice. The petitioner/assessee has challenged the order passed by the Assistant Commissioner. The order was passed on the basis of a show-cause notice under Section 74 of the WBGST Act, 2017, on the ground of violation of the principle of natural justice by not providing an opportunity of personal hearing in spite of the specific...