Supply Of Printed Leaflet Product As Per Content Supplied By Recipient Is A "Composite Supply": AAR

The Tamil Nadu Authority of Advance Ruling (AAR) comprising of T.G.Venkatesh and K. Latha has held that the supply of printed leaflet products as per content supplied by the recipient is a composite supply as defined under Section 2(30) of the CGST/TNGST Act 2017 with "Supply of service of printing" as the principal supply. The applicant is one of the suppliers of printed leaflet products to M/s. Hindustan Latex Ltd, a government of India enterprise, who in turn supplies the leaflet...

Supply Of U-Bolt And Front Spring Bolt Made Up Of Steel Attracts 18% GST: AAR

The Uttarakhand Authority of Advance Ruling (AAR) consisting of members Anurag Mishra and Rameshwar Meena has ruled that 18% GST is payable on the supply of U-Bolt and Front Spring Bolt made up of steel.The applicant is in the business of manufacturing and supplying goods such as nuts, bolts, and springs, etc., and the application for advance ruling relates to the classification of U-bolt, Front Spring Bolt, and Spring Pin. The applicant submitted that an U-bolt is an industrial...

Chip Import Monitoring System Is Applicable For Air/Sea Shipments: DGFT

The Director General of Foreign Trade has issued the following clarifications regarding the Chip Import Monitoring System (CHIMS). The Notification No. 05/2015-2020 dated May 10, 2021 was issued amending the import policy of items covered under ITC (HS) codes 85423100, 85423200, 85423300, 85423900, and 85429000 falling under Chapter-85 of ITC (HS). As per the notification, the import policy was changed from 'Free' to 'Free subject to compulsory registration under the Chip Import...

Reassessment Proceedings Can't Be Initiated On Same Set Of Facts Available: ITAT

The Mumbai Bench of the Income Tax Appellate Tribunal (ITAT) has held that the reassessment proceedings cannot be initiated by applying a fresh application of mind to the same set of facts available at the time of the original scrutiny assessment proceedings.The assessee is in the business of real estate. The assessee e-filed its return of income, declaring a total loss. The assessee was engaged in the activity of development of one ongoing project and has unsold flats in ...

Expenditure Incurred After Set-Up of Business Is Allowable As Deduction, Even If No Business Income Is Earned By The Assessee : ITAT Chennai

The Chennai Bench of ITAT has ruled that once the business of an assessee is set-up, all the expenditure incurred by it would be allowable as deduction, notwithstanding the fact that no business income was earned by the assessee during the relevant year. The Bench, consisting of Mahavir Singh (Vice President) and Manoj Kumar Aggarwal (Accountant Member), reiterated that there may be an interval between the setting-up of a business and the commencement of a business, however, all the...

Assessee To Be Given Minimum 7 Days Time To Respond To The Reassessment Notice: Meghalaya High Court

The Meghalaya High Court bench of Chief Justice Sanjib Banerjee and Justice W. Diengdoh has held that the assessee should be given a minimum of 7 days' time to respond to the reassessment notice.The petitioner/assessee has challenged the notice under Section 148 of the Income Tax Act, 1961 on the grounds that it has been issued without following the mandatory procedure under Section 148A of the Income Tax Act. The petitioner submitted that the AO ought to have afforded the assessee seven...

Short Payment Of Excise Duty Is Not Sufficient To Invoke The Extended Period: CESTAT

The Mumbai Bench of the Customs, Excise and Service Tax Appellate Tribunal (CESTAT) consisting of Ajay Sharma (Judicial Member) has held that a short payment of excise duty is not sufficient in order to invoke the extended period.The appellant/assessee is in the business of manufacturing colour TVs, LCDs, LEDs, washing machines, split air conditioners, and their spare parts. The appellant has been availing Cenvat Credit as per Rule 3 of the Cenvat Credit Rules, 2004. The appellant is...

Scrap Generated After The Process Of Manufacture Is Not Includible In Assessable Value Of The goods Cleared By The Job Worker: CESTAT

The Chennai Bench of Customs, Excise and Service Tax Appellate Tribunal (CESTAT) has ruled that the scrap is generated after the process of manufacture and the same is not includible in the assessable value of the goods cleared by the job worker to the principal manufacturer.The appellants/assessee are engaged in the manufacture of tractor parts and components on a job work basis for M/s. TAFE Ltd. and are clearing it to M/s. TAFE Ltd. The department was of the view that the appellants...

TCS Collected Under Income Tax Act On Sale Of Goods Cannot Be Included In The Assessable Value For Charging Excise Duty: Ahmedabad CESTAT

The Ahmedabad Bench of CESTAT has ruled that the amount of TCS collected under theIncome Tax Act, 1961 on the sale of goods cannot be considered as an additional consideration flowing to the assessee from the buyer of the goods and, therefore, the TCS collected by the assessee cannot be included in the assessable value for charging Excise Duty. The Bench, consisting of Mr. Ramesh Nair (Judicial Member) and Mr. Raju (Technical Member), held that since the TCS was collected by the assessee...

Writ Petition Not Maintainable If Alternative Statutory Remedy Was Available With The Taxpayer: Madras High Court Reiterates

The Madras High Court has reiterated that a writ petition is not maintainable if an alternative statutory remedy was available to the taxpayer. The single bench of Justice C. Saravanan has observed that there are a few exceptions to the rule of alternative remedy. Firstly, where the statutory authority has not acted in accordance with the provisions of the enactment in question. Secondly, in defiance of the fundamental principles of judicial procedure. Thirdly, authorities have resorted...

Protection Plea: Rajasthan High Court Permits Police To Charge Married Couple If It Has Adequate Income

While hearing a protection petition filed by a married couple, the vacation bench of Rajasthan High Court observed that if the petitioner's income is more than taxable income under the Income Tax Act, 1961, the Superintendent of Police after considering the financial aspect may charge appropriate financial charges from them.Essentially, the petitioners got married on 22.03.2022. However, this marriage was not approved by their relatives and respondents No. 4 to 14 and fearing them, they had...

Tax Cases Weekly Round-Up: 19 June To 25 June, 2022

Delhi High Court Right To File Objection To SCN Can't Be Denied Due To One Day Delay: Delhi High Court Case Title: Ernst & Young, US LLP Versus ACIT Citation: 2022 LiveLaw (Del) 586 The Delhi High Court bench of Justice Manmohan and Justice Manmeet Pritam Singh Arora ruled that the right to file an objection to the Show Cause Notice cannot be denied owing to a one-day delay. Just 3 Days' Time Granted To Respond To The Income Tax Notice: Delhi High Court Remands The Matter...