Obesity Is Not A Disease: 12% GST Payable On Pharmaceutical Pellets, Granules Except Orlistat Pellet: AAR

The Telangana Authority of Advance Ruling (AAR) has ruled that 12% GST payable on pharmaceutical pellets, and granules except Orlistat Pellet as obesity is not a disease. The two-member bench of B. Raghu Kiran (Central Tax) and S.V. Kasi Visweswara Rao (State Tax) has relied on the decision of the Supreme Court in the case of Commissioner of Central Excise Vs Wockhardt Life Sciences Ltd, wherein it was held that 'therapeutic or prophylactic' would apply to substances used, "to prevent,...

Construction Of Administrative Buildings For TSIIC Attracts 18% GST: AAR

The Telangana Authority of Advance Ruling (AAR) has ruled that 18% GST is applicable on construction of administrative buildings for Telangana State Industrial Infrastructure Corporation Limited (TSIIC).The two-member bench of B. Raghu Kiran (Central Tax) and S.V. Kasi Visweswara Rao (State Tax) has observed that the works contract executed by the applicant for construction of Administrative building for TSIIC falls under Sr. No. 3(vi) of Notification No. 11/2017-CT (Rate) as amended till...

Interest Of Buyer In Assessee's Business Not Established for Valuation of Excisable Goods: CESTAT Rejects Department's Appeal Seeking Valuation Of Goods Sold Prior To 2013

The Delhi Bench of Customs, Excise and Service Tax Appellate Tribunal (CESTAT) has rejected the department's appeal seeking valuation of goods sold prior to 2013 on the grounds that the interest of buyer in assessee's business was not established.The two member bench of Justice Dilip Gupta (President) and P.V.Subba Rao (Technical Member) has observed that as Rule 10 (b) squarely covers the transaction, value has to be determined as per this Rule. For the goods cleared to the buyer, it...

Dept. Can't Raise Their Hands In Despair For Technical Glitches In GST Portal: Gujarat HC Directs Dept. To Allow Manual Furnishing Of GSTR-6

The Gujarat High Court has come down heavily on the Goods and Service Tax Department for technical glitches in the portal. The division bench of Justice J.B.Pardiwala and Justice Nisha M. Thakore observed that the writ petitioner/ taxpayer has been running from pillar to post requesting the respondents/ department to provide a solution and take care of the technical error and glitch that occurred as regards furnishing the GSTR-6 return for recording and distributing the Input Service...

Issuance Of 2 SCN Demanding Short Paid Duty, Denying Cenvat Credit For Same Period Doesn't Amounts To 2 Assessments: CESTAT

The Delhi Bench of Customs, Excise and Service Tax Appellate Tribunal (CESTAT) has upheld the issuance of two show cause notices demanding the duty, which was short paid, and denying Cenvat credit respectively for the same period.The two-member bench of Justice Dilip Gupta (President) and P.V. Subba Rao (Technical Member) did not find any illegality in Revenue issuing two show cause notices; one for recovery of irregularly availed Cenvat credit and another show cause notice for recovery of...

ITAT Delhi: Income Tax Act Does Not Prohibit HRA Exemption On Rent Paid To Wife

The Delhi Bench of ITAT, consisting of members A. D. Jain (Vice President) and Dr. B. R. R. Kumar (Accountant Member), has ruled that HRA exemption under Income Tax Act, 1961 cannot be denied on the ground that the Assessee pays rent to its spouse. The Assessing Officer (AO), while making assessment, clubbed the rental income earned by Assessee's wife in the hands of the Assessee on the ground that she had no independent source of income to purchase the house property. The Commissioner...

Issue Norms As To How Many Times Summons Can Be Issued During Investigations: Bombay High Court Directs GST Dept

The Bombay High Court has directed the Goods and Service Tax (GST) Department to issue norms as to how many times summons can be issued during investigations. The division bench of Justice S.M.Modak and Justice R.D.Dhanuka has directed the Department/respondents to indicate as to how many time summons were issued by the respondents to the petitioners, for what purpose and the progress of the investigation during this period. Affidavit shall also indicate as to when the investigation...

Madras High Court Remands Matter To AO To Determine Whether IL&FS Is Public Financial Institution

The Madras High Court has remanded the matter to the Assessing Officer (AO) for determination to determine whether M/s. Infrastructure Leasing and Financial Services Limited (IL&FS) is a Public Financial Institution.The division bench of Justice R.Mahadevan and Justice J.Satyanarayana Prasad set aside the order of the ITAT and remanded to the AO to examine, whether IL&FS is a public financial institution; and if it is in affirmative, then, section 43B(d) read with explanation 3C...

Input/Output Ratios To Be Considered For Determining Quantum Of Refund Of Unutilized GST ITC: Gujarat High Court

The Gujarat High Court has ruled that the input or output ratios to be considered for determining the quantum of refund of unutilized Input Tax Credit (ITC).The division bench of Justice J.B.Pardiwala and Justice Nisha M.Thakore has directed Assistant Commissioner to adjudicate the claim of the writ applicants in accordance with Sub Rule (4B) of Rule 89 of the CGST Rules, but keeping in mind the formula of input or output ratio of the inputs or raw materials used in the manufacturing of...

Embossing Customer Name On Goods Not Amount To 'Branding' If Goods Are Not Sold By Customers: CESTAT Deletes 1% Excise Duty

The Chennai Bench of Customs, Excise and Service Tax Appellate Tribunal (CESTAT) while deleting the 1% of Excise Duty, held that embossing customer name on goods does not amount to 'Branding' if goods are not sold by customers. The two member bench consisting Sulekha Beevi C.S. (Judicial Member) and P.Anjani Kumar (Technical Member) has noted that as long as the goods are not sold by the customers of the appellant/assessee in the brand name which they are manufactured, the same cannot...

Gujarat High Court Releases Confisticated Cash, Goods As GST Dept. Delayed Issuance Of SCN Beyond Statutory Time Period

The Gujarat High Court has released the confisticated ​​cash and goods as the Goods and Service Tax (GST) Department delayed issuance of Show Cause Notice (SCN) beyond statutory time period.The division bench of Justice Sonia Gokani and Justice Hemant M. Prachchhak has observed, "it is quite unfathomable as to why the time limit is not adhered to and issuance of the show cause notice has been delayed beyond the statutory time period and hence, intervention will be necessary at the end of...

'Reasons To Believe' Ought To Spell Out All Reasons, Grounds For Reopening Income Tax Assessment: Bombay High Court Comes Down Heavily On Income Tax Dept

The Bombay High Court has come down heavily on the Income Tax Department for not being transparent with tax payers in sharing the requested information basis of reopening action.The division bench of Justice N.J.Jamadar and Justice K.R.Shriram relied on the judgement of the Delhi High Court in case of Sabh Infrastructure Ltd. vs. Assistant Commission of Income Tax wherein the guidelines has been laid down on reopening cases for assessing officers (AO) for strict compliance. As per the...