Tax Cases Weekly Round-Up: 30 October To 5 November 2022

Supreme CourtIndustrial Townships Are "Local Areas" For Entry Tax Levy By States Though They Are Excluded From Municipalities : Supreme Court Case Title: OCL India Limited vs State of Orissa Citation: 2022 LiveLaw (SC) 911 The Supreme Court upheld States' power to impose entry tax from Industrial Township/Areas. The bench of CJI UU Lalit, Justices S. Ravindra Bhat and J...

No Mala Fide Intent To Evade Service Tax: CESTAT Quashes Penalty

The Delhi Bench of the Customs, Excise and Service Tax Appellate Tribunal (CESTAT) has deleted the penalty and held that the service provider receiving a commission in lieu of providing "business auxiliary services" from Adarsh Credit Cooperative Society did not have a mala fide intention to evade service tax.The bench of Rachna Gupta (Judicial Member) has held that the entire amount...

Services Of Business Promotion/Support And Marketing Service Do Not Qualify As Intermediary Service: CESTAT

The Chandigarh Bench of Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has held that the services of business promotion, support, and marketing do not qualify as intermediary services.The bench of S. S. Garg (Judicial Member) and P. Anjani Kumar (Technical Member) has observed that the place of provision of business promotion service shall be the location of the recipient...

Currency can't be confiscated if it is not Proceeds Of Goods Cleared Clandestinely: CESTAT

The Ahmedabad Bench of the Customs, Excise and Service Tax Appellate Tribunal (CESTAT) has held that the seized currency during the course of an investigation cannot be confiscated without proving that the said seized currency is the sale proceeds of excisable goods cleared clandestinely.The two-member bench of Ramesh Nair (Judicial Member) and Raju (Technical Member) has ordered that...

Characteristics Of "Consumables" Does Not Attach "Welding Electrodes", MODVAT Credit Can't Be Recovered: CESTAT

The Mumbai Bench of the Customs, Excise and Service Tax Appellate Tribunal (CESTAT) has held that characteristics of "consumables" do not attach to "welding electrodes", and, therefore, the recovery of the Modified Value Added Tax (MODVAT) credit was incorrect.The bench of C.J. Mathew has observed that MODVAT credit is available on the procurement of goods that are 'inputs' with 'capital...

Denying The Customs Duty Exemption Despite The Valid Country Of Origin Certificate Is Not Sustainable: CESTAT

The Delhi Bench of the Customs, Excise and Service Tax Appellate Tribunal (CESTAT) has held that denying the benefit of customs duty exemption despite the valid country of origin certificate is not sustainable.The bench of Rachna Gupta (Judicial Member) has noted that it will hinder the free flow of trade between agreeing nations if the exemption requested under the applicable rules is denied...

CESTAT Directs CBIC To Issue Guideline In Respect Of IBC Proceedings Initiated Against Assessee Before CESTAT

The Central Board of Indirect Taxes and Customs (CBIC) has been ordered by the Ahmedabad Bench of the Customs, Excise and Service Tax Appellate Tribunal (CESTAT) to consider issuing guidelines or procedures for handling cases before the CESTAT in which an IBC proceeding has been brought against the assessee's company.The two-member bench of Ramesh Nair (Judicial Member) and Raju...

Job Of Bottling, Blending And Labelling Indian Made Foreign Liquor Does Not Amount To Taxable Service Under 'Business Auxiliary Service': CESTAT

The Kolkata Bench of the Customs, Excise and Service Tax Appellate Tribunal (CESTAT) has held that the job of bottling, blending and labelling Indian Made Foreign Liquor (IMFL) does not amount to taxable service under "Business Auxiliary Service".The two-member bench of P. Dinesha (Judicial Member) and Sanjiv Shrivastava (Technical Member) have observed that if the Completely Built-Up Unit...

Service Tax is Payable On Computer Education Service Under Vocational Training: CESTAT

The Ahmedabad Bench of the Customs, Excise and Service Tax Appellate Tribunal (CESTAT) has held that service tax is payable on computer education services under vocational training.The two-member bench of Ramesh Nair (Judicial Member) and Raju (Technical Member) has observed that the computer education service has been excluded from the Vocational Training service by Notification No....

Benefit Of Abatement Notification Can't Be Denied Merely For Mismatch In Quantum Of Purchase: CESTAT

The Ahmedabad Bench of the Customs, Excise and Service Tax Appellate Tribunal (CESTAT) has ruled that the benefit of abatement notification cannot be denied solely because of a difference in the amount of purchase shown in the profit and loss account and invoices.The two-member bench of Ramesh Nair (Judicial Member) and Raju (Technical) has observed that Notification No. 15/2004-ST or, for...

CESTAT Deletes Penalty On Availment of Credit Of Input Services Used In Co-Generation Plant For Generation Of Electricity Sold Outside

The Chennai Bench of the Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has deleted the penalty imposed with regard to credit availed in respect of input services used in the co-generation plant for the generation of electricity sold outside.The bench of Sulekha Beevi C.S. (Judicial Member) has upheld a penalty imposed with regard to an input service tax credit on the services...

Tax Cases Weekly Round-Up: 16 October To 22 October, 2022

Supreme Court Valuation Of Shares For The Purpose Of Gift Tax Should Take Into Consideration Limitation And Restrictions: Supreme Court Case Title: Deputy Commissioner of Gift Tax Versus M/s BPL Limited Citation: 2022 LiveLaw (SC) 848 The Supreme Court has held that the valuation of shares for the purpose of gift tax must take into consideration the limitations...