CESTAT Allows Cenvat Credit To The Member Of Industries Association Who Received Services And Borne Expenditure

The Ahmedabad Bench of the Customs, Excise and Service Tax Appellate Tribunal (CESTAT) consisting of Ramesh Nair (Judicial Member) has held that the member of an industry association who has received the services and borne the expenditure is entitled to the cenvat credit.The appellant/assessee is a member of the Valia Industries Association. Service provider Shree Rang Services provided the services and issued invoices in favour of Valia Industries Association. The Valia Industries ...

Failure Of Assessee To Reply To Income Tax Notice Due To COVID: ITAT Directs Fresh Adjudication

The Bangalore bench of the Income Tax Appellate Tribunal (ITAT) held that the assessee could not respond to the notices in view of the pandemic situation, which has to be accepted as a reasonable cause.The two-member bench headed by N.V. Vasudevan (Vice President) and Chandra Poojari (Accountant Member) set aside the orders of the CIT (A) and remanded the issue to the CIT (A) for a decision afresh after affording the assessee an opportunity to be heard. The ITAT directed the assessee to...

Indian Company Liable To Service Tax On Secondment Of Employees From Overseas Group Entities As Recipient Of Manpower Supply: Supreme Court

The Supreme Court has held that when the Overseas group companies providing skilled employees, on secondment basis, to its Indian counterparts amounts to supply of manpower services, the Indian company would be considered as service recipient. Therefore, the Indian company is liable to pay service tax on the salaries of the seconded employees reimbursed to the overseas company.While the judgment related to the service tax regime, it can have impact on the GST regime as well in view of the...

New ITR Forms Issued For Assessment Year 2022-23: Know 6 Additional Information Which Taxpayers Will Now Have To Give

The Income Tax Department recently announced new ITR (Income Tax Return) forms for the assessment year 2022–23. The information which the taxpayers will now have to disclose is the source of pension, interest received from the EPF account, date of purchase or sale of land, and many other items. If you are not aware of these changes, then you may face difficulties in filling out the return form.1.Details Of A Pension Pensioners must disclose the source of their pension on ITR...

Failure Of Customs Broker To Observe Due Diligence Leading To Facilitate Fake Importers: CESTAT Revokes Licence

The Mumbai Bench of the Customs, Excise and Service Tax Appellate Tribunal (CESTAT) affirmed the revocation of the customs broker's licence because the customs broker failed to conduct due diligence, allowing fake importers to operate.The two-member bench of S.K. Mohanty (Judicial Member) and P. Anjani Kumar (Technical Member) observed that the institution of customs brokers was created to facilitate the import and export of trade and, at the same time, to take care of the interests of...

Personal Hearing By Way Of Exchange Of Chat Messages Not An Effective Opportunity Of Personal Hearing: Calcutta High Court

The Calcutta High Court has ruled that personal hearing conducted by way of exchange of chat messages cannot be said to be an effective opportunity of personal hearing to the assessee and that it does not satisfy the test of fairness or the principles of fair play. The Bench, consisting of Justices T.S. Sivagnanam and Hiranmay Bhattacharyya, reiterated that the moment an insolvency petition is admitted, in view of the moratorium that comes into effect under Section 14(1)(a) of the...

LNG Jetties Is Not In The Nature Of 'Plant And Machinery', ITC Not Eligible: Gujarat AAAR

The Gujarat Appellate Authority of Advance Ruling (AAAR), comprised of Seema Arora and Milind Torawane, ruled that LNG jetties are not in the nature of "plant and machinery," but rather serve as the foundation for the installation of re-gasification equipment, apparatus, and machinery.The input tax credit on inputs, input services, and capital goods for the purpose of building these LNG jetties is not admissible. The appellant has entered into a concession agreement with the Gujarat...

Proceedings Can't Be Initiated When Excise Duty Was Paid Prior To Issuance Of Show Cause Notice: CESTAT

The Kolkata Bench of the Customs, Excise and Service Tax Appellate Tribunal (CESTAT) consisting of P.K. Choudhary (Judicial Member) has held that the authorities had no jurisdiction to initiate proceedings as the assessee had paid the excise duty along with the interest prior to the issuance of the show cause notice.The appellant/assessee made clearance of 460 numbers of 'Fish Plate' during the month of August 2008 to M/s. Era Infra Engg. Ltd., availing exemption under Notification dated...

Composition Scheme On Works Contract Cannot Be Denied On The Ground That Service Tax Was Discharged Earlier: CESTAT Bangalore

The Bangalore Bench of Customs, Excise & Service Tax Appellate Tribunal (CESTAT) has reiterated that Composition Scheme for payment of Service Tax on Works Contract cannot be denied merely on the ground of discharge of Service Tax under a different head prior to 01.06.2007. The Bench, consisting of members P Dinesha (Judicial Member) and P. Anjani Kumar (Technical Member), held that Works Contract Services are liable to Service Tax only from 01.06.2007. The CESTAT ruled that the...

GST Not Leviable On Services By Security Manager Located Outside India For Subscription To Secured Notes : Gujarat AAR

The Gujarat Authority of Advance Ruling (AAR), consisting of members Atul Mehta and Arun Richard, has ruled that GST is not leviable on services by security managers located outside India for subscription to secured notes placed in the USA.The applicant, M/s. Adani Green Energy Ltd. (AGEL), submitted that it requires substantial working capital to undertake its supplies. The applicant has raised USD 750 million by issuing Senior Secured Notes (Notes) carrying an interest coupon of 4.375%...

Separate IGST On Indian Importers For Ocean Freight Against Concept Of "Composite Supply", Violates Section 8 CGST Act : Supreme Court

The Supreme Court has held when the Indian importer is liable to pay Integrated Goods and Services Tax (IGST) on the 'composite supply', which includes supply of goods and supply of services of transportation, insurance, etc. in a CIF contract, a separate levy on them for the 'supply of services' by the shipping line would be in violation of Section 8 of the CGST Act(Union of India versus Mohit Minerals). A Bench comprising Justices D.Y. Chandrachud, Surya Kant and Vikram Nath passed...

Licensing Of Software Products By Microsoft Is Not Taxable In India As Royalty: Delhi High Court

The Delhi High Court bench of Justice Manmohan and Justice Sudhir Kumar Jain has ruled that licensing of software products by Microsoft in the Territory of India by Microsoft is not taxable in India as royalty. The department has challenged the order passed by the ITAT for the assessment years 1997-98 and 1999-2000. The ITAT ruled that the licencing of software products of Microsoft in the Territory of India by the respondent/assessee, i.e., Microsoft, was not taxable in India as royalty...