18% GST Payable On Pizza Topping As Pizza Topping Is Not Pizza: AAAR

The Haryana Appellate Authority of Advance Ruling (AAAR) bench consisting of Amit Kumar Aggarwal and Anil Kumar Jain held that 18% Goods and Service Tax (GST) is payable on pizza topping as pizza topping is not pizza.The appellant is in the business of distributing various dairy and non-dairy products and is registered with the jurisdictional GST authorities. The product "pizza topping," which is sold by the appellant under the brand "Goodrich," is a proprietary food consisting of water,...

Show Cause Notice Without Containing Allegations Of Violations, Amounts To Violation Of Principles Of Natural Justice: Jharkhand High Court

The Jharkhand High Court bench consisting of Justice Aparesh Kumar Singh and Justice Deepak Roshan has quashed the show cause notice issued under Goods and Service Tax (GST) for not containing the allegations of violation, amounting to a violation of principles of natural justice.The petitioner/assessee challenged the impugned show cause notice issued by the respondent/department under Section 73 of the Jharkhand Goods & Services Tax Act, 2017 and the summary of show cause notice in...

Reply Of The Taxpayer Not Considered: Bombay High Court Quashes Income Tax Faceless Assessment

The Bombay High Court bench, consisting of Justice A.S. Chandurkar and Justice Pushpa V. Ganediwala, has quashed the income tax faceless assessment as the reply of the taxpayer was not considered by the department/respondent.The income tax department has launched the Faceless Facility for income tax appeals. Under the facility, all the cases will be completed in a faceless way in a faceless environment, except for appeals that are related to evasion of tax, serious fraud, black money,...

LTCG On Penny Stock Transaction Cannot Be Denied Exemption In Absence Of Incriminating Material: ITAT Mumbai

The Mumbai Bench of ITAT, consisting of members Rahul Chaudhary (Judicial Member) and Shamim Yahya (Accountant Member), has ruled that long term capital gains arising from a penny stock transaction cannot be denied exemption under the Income Tax Act, 1961 on the ground that the said transaction is bogus and pre-arranged in the absence of any incriminating material. The Assessee, Vipul Suresh Kumar Modi, had filed an income tax return. Subsequently notice under Section 153A of the Income...

Allegations Contained in SCN Were Vague: Calcutta High Court Suspends Order Cancelling GST Registration

The Calcutta High Court bench consisting of Justice ​​Md. Nizamuddin has suspended the order cancelling GST registration on the grounds that the allegations contained in the show cause notice were vague.The petitioner/assessee challenged the show-cause notice for cancellation of the GST registration of the petitioner and suspended the registration of the petitioner by the show-cause notice itself. The petitioner challenged the impugned show-cause notice on the ground that the show-cause...

CESTAT Allows CENVAT credit Even If Goods Were not Classified as "Capital Goods" By The Supplier

The Mumbai Bench of the Customs, Excise and Service Tax Appellate Tribunal (CESTAT) consisting of Dr. Suvendu Kumar Pati (Judicial Member) has allowed the CENVAT credit even when the goods were not classified as "capital goods" by the supplier. The appellant/assessee has received invoices from the supplier which were of the nature of components of machinery used for manufacturing goods-machinery falling under Chapter 84798970, but CENVAT credit was denied to the appellant on the...

MP High Court Grants Custody Of Looted Property Recovered By Police To Income Tax Department As The Same Was Not Disclosed By Complainant

The Madhya Pradesh High Court, Gwalior Bench recently dismissed an application moved by a Complainant in a dacoity case, seeking custody of the recovered stolen cash to the tune of Rs. 45 Lakhs. The Court held that since the said amount was not disclosed before the Income Tax Department (IT Department) prior to the incident, the same was liable to be handed over to the IT Department for assessment. Justice Anand Pathak was essentially dealing with an application under Section 482 CrPC...

AO's claim That The Assessee Is Only Into Job Work And Not Manufacturing Rejected, Deduction Allowed By ITAT Delhi

The Delhi Bench of the Income Tax Appellate Tribunal (ITAT) while allowing the deduction under Income Tax Act has rejected the claim of AO that the assessee is only into job work and not manufacturing.The two-member bench consisting of Anubhav Sharma (Judicial Member) and Anil Chaturvedi (Accountant Member) held that the transformation of articles to bring new articles into existence amounts to "manufacturing" and allowed deduction under section 80IC of the Income Tax Act, 1961. The...

Banks Exempted From Deducting Tax At Source While Paying Interest To Statutory Corporations : Supreme Court Reiterates

The Supreme Court has reiterated that Banks are exempted from the mandate of Section 194A of the Income Tax Act, 1961, to deduct tax at the source (TDS), on payment of interest to corporations established by a statute. In the facts of the present case, the Apex Court held that in terms of the notification dated 22.10.2022 issued by the Central Government, the Union Bank of India (appellant) was exempted from the requirement under Section 194A, Income Tax Act, 1961, to deduct tax at ...

Interest On Income Tax Refund Not Connected To Permanent Establishment Under DTAA, Cannot Be Taxed As Business Income: Dehradun ITAT

The Dehradun Bench of ITAT, consisting of members Amit Shukla (Judicial Member) and Dr. B. R. R. Kumar (Accountant Member), has ruled that interest on income tax refund received by a foreign enterprise is not effectively connected to its Permanent Establishment in India and therefore it cannot be taxed as its business income under Income Tax Act, 1961. The ITAT also held that receipts from Service Tax and VAT could not be included in the gross taxable receipts of an assessee under the...

CESTAT Directs Central Excise Dept. To Reconsider Refund of Cenvat Credit To Tata Consumer Products

The Banglore Bench of the Customs, Excise and Service Tax Appellate Tribunal (CESTAT) consisting of P.Dinesha (Judicial Member) directed the Central Excise Department to reconsider the refund of cenvat credit to Tata Consumer Products. The appellant/assessee, a 100% export-oriented unit (EOU), has been engaged in the manufacture and export of tea bags and packet tea. The appellant filed a refund claim for an amount of Rs. 14,11,916 for the period April 2015 to June 2015 under ...

Additional/Joint Commissioner Now Empowered to pass Order on Notices issued by DGGSTI: CBIC

The Central Board of Indirect Taxes and Customs (CBIC) while notifying the jurisdiction of central tax officers, empowered additional or joint commissioners to pass orders on notices issued by Directorate General of Goods and Services Tax Intelligence (DGGSTI). In exercise of the powers under section 3 read with section 5 of the Central Goods and Services Tax Act, 2017 and section 3 of the Integrated Goods and Services Tax Act, 2017, the Central Government amended the notification...