Routine Business Support Services Are Not Taxable As Fees For Technical Services: Delhi ITAT

The Delhi Bench of ITAT, consisting of members Astha Chandra (Judicial Member) and N.K. Billaiya (Accountant Member), has ruled that routine business support services are not taxable as fees for technical services (FTS) since they do not make any technology or skill available to the recipient of the services. The Bench held that when a tax rate is prescribed under the Double Taxation Avoidance Agreement (DTAA), education cess and surcharge cannot be levied. The appellant/assessee...

Unsubstantiated Show Cause Notice And Cancellation Of Licence: CESTAT Restore Customs Broker's Licence

The Delhi bench of the Customs, Excise and Service Tax Appellate Tribunal (CESTAT) headed by Justice Dilip Gupta (President) and P.V. Subba Rao (Technical Member) has restored the customs broker's licence as the show cause notice or the inquiry report lacked details about the non-existence of the exporter. The appellant, M/s. Perfect Cargo and Logistics, is licenced as a customs broker under the Customs Broker Licensing Regulation, 2018 (CBLR). The appellant's licence was revoked by...

Rajasthan High Court Restrains GST Dept. From Recovery Of GST On Royalty Paid On Account Of Excavation Of Sand For Brick

The Rajasthan High Court bench of Justice Madan Gopal Vyas and Justice Vijay Bishnoi has restrained the GST department from recovering GST on royalty paid on account of the excavation of sand for brick. The petitioner/assessee has filed the writ petition challenging the demand GST on the royalty paid on account of excavation of sand for brick. The petitioner has submitted that, as per the decision of the Supreme Court in the case of India Cement Ltd. Etc. Vs. State of Tamil Nadu, the...

Interest On Delayed Refunds Covered Under Principal Provision Of Section 56 Of CGST Act Cannot Exceed 6%: Supreme Court

The Supreme Court, on Tuesday, held that in cases of delayed refund of integrated tax paid on export of goods governed by the principal provision of Section 56 of the Central Goods and Services Tax Act, 2017, the interest would be payable at the rate of 6% as prescribed by the statute, especially when the delay was not inordinate. "...wherever a statute specifies or regulates the interest, the interest will be payable in terms of the provisions of the statute. Wherever a statute, on...

Claim of GST Refund Wrongly Paid To The Government: Uttar Pradesh Govt. Issues Clarification

The Uttar Pradesh GST department has issued a clarification on the refund of GST, which was wrongly paid to the government. The department has received submissions requesting clarity on matters pertaining to the refund of incorrectly paid taxes, as mentioned in sections 77(1) of the Uttar Pradesh Goods and Services Tax Act, 2017 (UPGST Act) and section 19(1) of the Integrated Goods and Services Tax Act, 2017 (IGST Act). Section 77 of the UPGST Act and Section 19 of the IGST Act,...

Pre-Deposit Payment Made By Parent Company Having Separate Service Tax Registration Amounts To Proper Compliance: Madras High Court

The Madras High Court bench of Justice R. Subramanian and Justice N.Sathish Kumar has held that the pre-deposit payment made by the parent company having a separate service tax registration amounts to proper compliance. The petitioner/assessee has appealed against the final order passed by the Customs, Central Excise and Service Tax Appellate Tribunal, dismissing the appeal filed by the assessee for non-compliance with the conditions imposed for the grant of stay. The Tribunal...

GST ITC Refund Can't Be Denied Even If Taxpayer Has Claimed Duty Drawback: Madras High Court

The Madras High Court bench of Justice C. Sarvanan has held that the refund of input tax credit (ITC) cannot be denied even if the taxpayer has claimed duty drawback. The petitioner/assessee had exported consignments of goods classifiable under Customs Heading No.8483-40-00 of the Customs Tariff Act 1975 and claimed duty drawback under Section 75 of the Customs Act, 1962. Additionally, the petitioner claimed a refund of the input tax credit availed on the input and input services used...

Rajasthan High Court Directs GST Dept. To Reimburse The Pre Deposit In View Of CIRP Of Binani Cement

The Rajasthan High Court bench of Justice Vinod Kumar Bharwani and Justice Sandeep Mehta has directed the GST department to reimburse amounts deposited by Binani Cement as a mandatory statutory obligation to the Ultra Tech Nathdwara Cement. The petitioner, UltraTech Nathdwara Cement Ltd., has taken over Binani Cement. The petitioner has filed a revision petition assailing the order passed by the Rajasthan Tax Board, Ajmer, rejecting the applications for a refund of the mandatory...

Mere Ignorance Of Law With Respect To Compulsory Audit Under Section 44AB Is Not A Reasonable Cause For Deleting Penalty: ITAT Hyderabad

The Hyderabad Bench of ITAT, consisting of members S.S. Godara (Judicial Member) and A. Mohan Alankamony (Accountant Member), has ruled that mere ignorance of law with respect to the provisions of Section 44AB of the Income Tax Act for compulsory audit of accounts, cannot be said to be a reasonable cause under Section 273B for deleting the penalty imposed on the Assessee for failure to audit accounts. The Assessee Mohd Zaheeruddin was involved in trading of shares and derivatives. In the...

The Assessing Officer And Inspecting Person Need Not Be Same Person Under The Electricity Act: Gauhati High Court

The Gauhati High Court bench of Justice Devashis Baruah has held that Section 126 of the Electricity Act, 2003 empowers the Assessing Officer as designated to carry out the provisional assessment and pass the order of provisional assessment.The petitioner/assessee is a consumer of electricity with a contracted demand of 1001 KVA. A technical inspection of the petitioner's electrical installation was undertaken, and after the inspection, an inspection report was prepared by the visiting APDCL...

Mere Signing Of Statement Admitting Tax Liability, Making Payments Under Stress Of Investigation Doesn't Amount To Self-Ascertainment: Madras High Court

The Madras High Court bench of Justice Anita Sumanth has held that merely because an assessee has, under the stress of investigation, signed a statement admitting tax liability and having also made a few payments as per the statement, it cannot lead to self-assessment or self-ascertainment. The petitioner/assessee is registered as a small-scale industry under the MSME Act. An investigation was conducted into the premises of the petitioner and various documents and registers were seized....

Issuance Reassessment Notice Valid On Ground Disclosure Of Bogus Purchase Bills: Chhattisgarh High Court

The Chhattisgarh High Court bench of Justice Parth Prateem Sahu has held that the reassessment notice under Section 148 of the Income Tax Act is valid on the grounds of disclosure of bogus purchase bills. The petitioner/assessee is running a rice mill in the name of M/s Shri Ji Rice Product. The petitioner filed his return for the assessment year 2016-17, declaring his total income as Rs. 13,330,000. His case was selected for compulsory scrutiny based on information received regarding...