Informer Of GST Evasion Cannot Seek Reward As A Matter Of Right: Delhi High Court

The Delhi High Court has prima facie observed that an informer, who apprises the Department about evasion of goods and services tax by an entity, cannot seek reward for sharing such information as a matter of right.A division bench of Justices Prathiba M. Singh and Shail Jain were of the prima facie view that no such right vests in any informer.“In the opinion of this Court, the grant of an award or a reward to an informer is a discretionary grant,” it said.The development comes in a petition...

GST Dept Can't Raise Fresh Demand U/S 73 If Explanation Offered By Assessee U/S 61(2) Was Accepted: Delhi High Court

The Delhi High Court has made it clear that Section 61(2) of the Goods and Service Tax Act, 2017 bars further action against an assessee, including any demand under Section 73.For context, Section 61 empowers the proper officer to scrutinize the return furnished by the registered person and inform him of the discrepancies noticed.Sub-section (2) thereof provides that in case the explanation offered by the registered person is found to be acceptable, no further action shall be taken.A division...

Income Tax Act | Reassessment Beyond Four Years Invalid When Original Assessment Finalised U/S 143(3): Punjab & Haryana High Court

The Punjab and Haryana High Court has held that re-assessment proceedings beyond four years are invalid when the original assessment has been finalised under Section 143(3) of the Income Tax Act. In case of an Assessment under Section 143(3) of the Income Tax Act, a scrutiny is carried out to confirm the correctness and genuineness of various claims, deductions, etc., made by the taxpayer in the return of income. Justices Lisa Gill and Meenakshi I. Mehta stated that the assessing ...

Delhi High Court Sets Aside Reassessment Order Against Vedanta; Orders Fresh Consideration After GST Case Over Alleged ₹424-Crore ITC Fraud Closed

In granting relief to Vedanta Limited, the Delhi High Court has set aside an order of the the Income Tax Department for initiation of reassessment action against the Copper manufacturer, over alleged fraudulent availment of Input tax credit worth over ₹424 Crore.A division bench of Justices Prathiba M. Singh and Shail Jain observed that the GST Department had already closed the case.“Closing of the proceedings by the GST Department would have an impact and bearing on the Section 148A proceedings...

Externally Procured Parts Supplied To Customer For Assembly, But Not Used By Manufacturer, Aren't Liable To Excise Duty : Supreme Court

The Supreme Court on Monday (November 10) dismissed the Revenue Department's excise duty demand against a company that had manufactured and erected a large boiler at a customer's site, holding that the full contract value could not be subjected to central excise duty. The Court clarified that parts bought out externally and supplied to the customer for assembly, but not actually used by the manufacturer, would not attract excise duty. “we arrive at the finding that the final product that...

Conduct Inter-Ministerial Consultation On Whether Import Of Massagers/Sex Toys Is Allowed Or Not: Delhi High Court Tells CBIC

The Delhi High Court has directed the CBIC (Central Board of Indirect Taxes and Customs) to conduct inter-ministerial consultation in respect of coming up with a uniform policy permitting or prohibiting the import of products declared as 'body massagers' or sex toys. The bench opined that the question as to whether any product is obscene or not cannot, obviously, be left at the discretion of the Commissioner of Customs and other individual officials in the absence of uniform guidelines...

Private Hospitals Liable To Pay VAT On Supply Of Medicines & Implants To In-Patients: Gujarat High Court

The Gujarat High Court has held that the supply of medicines and implants by private hospitals to in-patients amounts to 'deemed sale' and is liable to VAT (Value Added Tax). The issue before the bench was whether the supply of medicines, stents, implants, consumables, etc., during the course of treatment of patients amounts to 'sale' as defined in section 2(23) of the VAT Act. The bench, consisting of Justices Bhargav D. Karia and D.N. Ray, observed that after the 46th Amendment...

Working Men/Women's Hostels Are Residential Properties, Cannot Be Taxed At Commercial Rates: Madras High Court

The Madras High Court has recently ruled that hostels providing accommodation to working men and women are residential properties and, therefore, property tax, water tax, and electricity charges cannot be levied at commercial rates. The ruling came in response to petitions filed by hostel owners in Chennai and Coimbatore challenging Chennai municipal authorities and the Chennai Metropolitan Water Supply and Sewerage Board (CMWSSB) for reclassifying their hostels from residential to commercial...

CENVAT Rules Cannot Apply Retrospectively To Concluded MODVAT Proceedings: Allahabad High Court

Recently, the Allahabad High Court has held that where proceedings under the MODVAT (Modified Value Added Tax) Scheme had concluded prior to the introduction of the CENVAT (Central Value Added Tax) Rules, it would not be open to the revenue department to issue fresh notices against the assessee under the new scheme. The MODVAT scheme, allowing manufacturers a tax credit on input duties, was replaced on 01.07.2001 by the CENVAT scheme. This was later codified as the CENVAT Credit Rules...

'Twaron Para Aramid Pulp' Classified As 'Textile Flock', Importers Liable For Higher Customs Duty: CESTAT

The New Delhi Bench of Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has held that Twaron Para Aramid Pulp is classified as 'textile flock', hence, the importers are liable for a higher customs duty. Justice Dilip Gupta (President) and P.V. Subba Rao (Technical Member) were addressing the issue of whether the Twaron Para Aramid Pulp imported by the assessee was classified under Customs Tariff Item (CTI) 5601 22 00 or under CTI 5601 30 00. The case was whether the...

Transfer Of Title In Immovable Property Doesn't Attract Service Tax : Supreme Court

The Supreme Court has clarified that an activity which merely involves the transfer of title in immovable property by way of sale cannot be treated as a “service” under the Finance Act, 1994. Consequently, such transactions lie outside the ambit of service tax.A bench comprising Justices JB Pardiwala and Sandeep Mehta delivered the verdict while dismissing an appeal filed by the Commissioner of Service Tax, New Delhi against M/s Elegant Developers, a partnership firm based in Allahabad. The...

Supreme Court Issues Notice On Patanjali Foods' Rs 2.97 Crore Excise Duty Refund Appeal

The Supreme Court has recently issued notice in an appeal filed by Patanjali Foods Limited (formerly Ruchi Soya Industries Ltd.) seeking a refund of Rs 2.97 crore charged by the tax department in connection with an excise duty dispute. A Division Bench of Justice Pamidighantam Sri Narasimha and Justice Atul S Chandurkar issued notice on both the main appeal and the application seeking condonation of delay. The appeal challenges the Karnataka High Court's judgment dated September 30, 2024, and...