Tax
Mid-Day Meal Scheme: CESTAT Grants Service Tax Relief To Government Catering Institute
The Chandigarh Bench of the Customs, Excise and Service Tax Appellate Tribunal (CESTAT) has granted relief to a government-run catering institute that supplies Mid-Day meals to the UT education department. It reiterated that the preparation and supply of cooked food under the Mid-Day Meal Scheme does not amount to 'outdoor catering' and is therefore not liable to service tax.The coram, consisting of Judicial Member SS Garg and Technical Member P Anjani Kumar stated that the...
Used Car Dealers Can Claim ITC On Repairs, Rent and Capital Goods Under GST Margin Scheme: Kerala AAR
The Kerala Authority for Advance Ruling (AAR) has held that dealers trading in second-hand motor vehicles under the GST margin scheme can claim Input Tax Credit (ITC) on inward supplies used in the course of business, except on the purchase of used vehicles. The ruling was delivered by IRS Jomy Jacob, Member (CGST), and Mansur M.I., Member (SGST), on an application filed by Goexotic Plus91 Motors Private Limited, a GST-registered dealer in old and used luxury vehicles. The applicant purchases...
Heavy Earth Moving Machinery Not 'Motor Vehicles' Liable For Road Tax: Supreme Court
The Supreme Court has recently held that Heavy Earth Moving Machinery (HEMM) and construction equipment vehicles used exclusively within private premises are not 'motor vehicles' liable to be taxed within the ambit of the Motor Vehicles Act, 1988 (the Act).A Bench of Justice Pankaj Mithal and Justice Prasanna B. Varale held,“We are of the conclusive opinion that the vehicles used by the appellants are vehicles of special types, precisely construction equipment vehicles which are suitable and are...
Differential GST On Pre-GST Works Contracts To Be Reimbursed By State Agencies: Karnataka High Court
The Karnataka High Court ruled that the additional GST liability arising out of the shift from the pre-GST VAT (Value Added Tax) regime to the GST regime in ongoing works contracts cannot be imposed on contractors.The bench consists of Justice M Nagaprasanna, who directed the State Departments and government agencies to reimburse the differential GST to contractors.All the contracts were awarded prior to July 2017 under the KVAT regime, where the contract rates factored in VAT and...
GST Registration Cancelled For Non-Filing Of Returns Can Be Revived On Compliance: Gauhati High Court
The Gauhati High Court has reaffirmed that cancellation of a GST registration for continuous non-filing of returns does not permanently shut the door on restoration, so long as the taxpayer later files all pending returns and clears tax dues along with interest and late fees. A Single Judge Bench of Justice Sanjay Kumar Medhi observed that even where registration has been cancelled for prolonged non-compliance, the proper GST officer continues to have the authority to revive it upon full...
Cash Not 'Goods' Under GST; Authorities Cannot Seize It Without Evidentiary Link: Calcutta High Court
The Calcutta High Court reiterated that cash does not fall within the definition of “goods” under the Goods and Services Tax (GST) law and, therefore, GST authorities have no power to seize cash unless it is directly relevant to proceedings under the Act.A bench comprising Justice Om Narayan Rai referred to Section 2(52) of the CGST Act, which expressly excludes money from the definition of “goods.” The court observed, "A perusal of the said definition clearly reveals that money stands...
Gauhati High Court Rejects Bail Plea In ₹8.59 Crore GST Fraud Case
The Gauhati High Court has recently denied bail to a petitioner in Rs. 8.59-crore fake Input Tax Credit (ITC) scam, observing that the allegations disclose an organized and well-planned fraud involving misuse of the GST system. A bench comprising Justice Pranjal Das noted that custodial interrogation was necessary as the investigation was at a crucial stage and that granting bail could hamper efforts to unearth the larger conspiracy. Bahadur Islam, the petitioner, was arrested for alleged...
GST Refund Cannot Be Withheld Over Proposed Appeal: Bombay High Court
The Bombay High Court has held that GST authorities cannot refuse to comply with an appellate order directing a refund merely because an appeal against the order is contemplated. Such refusal is impermissible unless the appellate order is stayed or set aside. A Division Bench of Justice M. S. Sonak and Justice Advait M. Sethna was hearing a writ petition filed by Ma Agro Proprietor alleging non-compliance with an appellate order directing refund of GST along with interest. The court observed,...
CESTAT Mumbai Allows CENVAT Credit On Kinder Joy Plastic Toys Despite Excise Exemption On Toys
The Mumbai Bench of the Customs, Excise and Service Tax Appellate Tribunal (CESTAT) has allowed CENVAT credit on duty paid inputs and capital goods used to make plastic toys supplied with Kinder Joy chocolates. It held that such credit cannot be denied only because the toys were exempt from central excise duty. A coram of Judicial Member C.J. Mathew and Technical Member Ajay Sharma said that entitlement to CENVAT credit arises once duty-paid inputs or capital goods enter the factory. It can be...