Tax
Central Sales Tax | Form H Must Be Filed By Time Of Assessment To Claim Tax Benefit: Andhra Pradesh High Court
The Andhra Pradesh High Court has recently held that dealers must submit Form H declarations by the time of assessment by the first assessing authority to claim a tax benefit on the last sale of goods preceding an export.The Full Bench clarified that the extended filing period available for Forms C and F under the Central Sales Tax (Registration and Turnover) Rules, 1957, does not apply to Form H declarations.A three-judge Bench of Justice Battu Devanand, Justice Maheswara Rao Kuncheam and...
Time Spent In Writ Petition Not Automatically Excluded From GST Appeal Limitation: Delhi High Court
The Delhi High Court has clarified that the time spent pursuing a writ petition cannot be automatically excluded while computing the limitation period for filing a statutory appeal against a GST adjudication order.The Division Bench of Justices Anil Kshetarpal and Bharat Parashar observed that if an assessee files an application under Section 14 of the Limitation Act, 1963, seeking exclusion of the period during which the writ petition remained pending, the Appellate Authority must consider the...
Delhi High Court Calls Taxpayer's Absence From Cross-Examination Despite 10-Day Notice “Indolent And Negligent”
The Delhi High Court has observed that an assessee's failure to remain available for cross-examination of a witness despite receiving at least 10 days' prior notice reflects an indolent and negligent approach towards the proceedings.The Division Bench of Justices Dinesh Mehta and Aditi Choudhary made the observation while setting aside an income tax assessment order passed against Petitioner and directing the Assessing Officer to provide a fresh opportunity to cross-examine two witnesses.The...
Delhi High Court Quashes Income Tax Penalty Order Passed During Pendency Of ITAT Appeal
The Delhi High Court has quashed an income tax penalty order passed against a private company under Section 270A of the Income Tax Act, 1961, during the pendency of the company's appeal before the Income Tax Appellate Tribunal (ITAT).The Division Bench of Justices Dinesh Mehta and Aditi Choudhary held that Section 275(1)(a) of the Income Tax Act mandates that penalty proceedings remain in abeyance when an appeal against the relevant assessment order is pending before the ITAT.The Court allowed...
Water Supply Agreement Is Sale Of Water, Not Taxable Service: CESTAT Delhi
The Customs, Excise and Service Tax Appellate Tribunal (CESTAT), New Delhi, has recently ruled that an agreement allowing an industrial unit to draw water directly from a water body can constitute a sale of water rather than an assignment of the right to use natural resources. The tribunal set aside a service tax demand of ₹7.29 crore against Bharat Aluminium Company Limited (BALCO), holding that the agreement was for the sale of water.A bench comprising Officiating President Rachna Gupta and...
Amounts Collected From Dhabas Under 'Yatri Plaza Yojna' Not Taxable To Service Tax: CESTAT Allahabad
The Customs, Excise and Service Tax Appellate Tribunal (CESTAT), Allahabad, has set aside a service tax demand of ₹3.85 lakh against the Uttar Pradesh State Road Transport Corporation (UPSRTC) over amounts collected from roadside dhabas under its “Yatri Plaza Yojna”. The tribunal held that the arrangement was a public welfare measure to ensure passenger safety and convenience, not a commercial transaction involving a taxable service.Under the scheme, UPSRTC designated roadside dhabas where its...
Calcutta High Court Quashes ₹25.23 Lakh GST Penalty, Orders Release Of Two Detained Trucks
The Calcutta High Court on 14 October quashed GST penalty orders totalling Rs. 25.23 lakh imposed on two detained trucks, holding that the authorities passed the orders beyond the statutory deadline under Section 129(3) of the Central Goods and Services Tax (CGST) Act, 2017. A Single-Judge Bench of Justice Aryak Dutt allowed a petition filed by truck owner Permender Singh, holding that the penalty orders were barred by limitation and passed without jurisdiction. He also held: “An appeal under...
Tender Documents Sale Not A Service, No Service Tax Payable On Fees: CESTAT Delhi
The New Delhi Bench of the Customs, Excise and Service Tax Appellate Tribunal (CESTAT), on 13 October held that fees collected for selling tender documents are not subject to service tax, as the sale of documents does not constitute a taxable service. A Bench of Judicial Member Ajay Sharma and Technical Member Hemambika R. Priya allowed the appeal filed by Rajasthan State Road Development & Construction Corporation Limited against a service tax demand of Rs. 72,071, along with interest and...
Vodafone Idea Tax Dispute: Bombay HC Directs Income Tax Dept To Pass Orders In 13 Matters In 6 Weeks
The court also continued its interim protection restraining the department from recovering ₹699.54 crore already refunded to Vodafone Idea.
CESTAT Chennai Sets Aside Service Tax Orders Against A.P. Constructions, Orders Fresh Adjudication
On Thursday, 15 October, the Customs, Excise and Service Tax Appellate Tribunal (CESTAT) at Chennai, set aside three service tax orders against A.P. Constructions India Pvt. Ltd. and its Managing Director, directing fresh adjudication within 90 days after examining the contractual arrangements, applicable statutory provisions and supporting evidence. A Bench comprising Judicial Member P. Dinesha and Technical Member M. Ajit Kumar allowed all three appeals by way of remand, holding that the...
Bombay High Court Upholds Tata Chemicals' Tax Deduction For Non-Compete Fee Paid To Former Employee
The Bombay High Court on 8 October held that payments made to a former employee under a non-compete agreement qualify as revenue expenditure for income tax purposes, even when paid in instalments across multiple financial years. A Division Bench comprising Justices Suman Shyam and Gautam A. Ankhad dismissed the Income Tax Department's appeal against Tata Chemicals Ltd., upholding deductions claimed by the company for non-compete compensation and expenditure on projects that were later written...
GSTAT Delhi Directs Builder To Pay ₹31.20 Lakh To 66 Homebuyers For Failure To Pass On ITC Benefit
The Principal Bench of the Goods and Services Tax Appellate Tribunal (GSTAT) at Delhi, on 30 September directed Mangalbela Real Estates Pvt. Ltd. to pay Rs. 31.20 lakh to 66 homebuyers of its Atri Green Valley Project in Kolkata, along with 18% annual interest. A Single Member Bench of Technical Member Anil Kumar Gupta rejected the company's objections to the re-investigation and held that it had violated Section 171(1) of the Central Goods and Services Tax (CGST) Act, 2017, by failing to pass...