Tax
CESTAT Weekly Round-Up: 7 To 13 July 2024
Black Sand Not A By-Product, Just A Waste; CESTAT Quashes Excise DutyCase Title: M/s. Ashok Leyland Ltd. Versus Commissioner of GST & Central ExciseThe Chennai Bench of Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has clearly erred in fastening the appellant with duty liability on black sand, which was not manufactured.Assessee Entitled To Cash Refund Of Cenvat Credit On Amount Of CVD And SAD Paid After 01.07.2017: CESTATCase Title: Assistant Commissioner Versus Shakti...
Direct Tax Weekly Round-Up: 7 To 13 July 2024
Delhi High CourtLoans Extended By NOIDA Is Not Commercial Activity, Eligible For Section 10(46) Exemption: Delhi High CourtCase Title: New Okhla Industrial Development Authority Versus Union Of India & Ors.The Delhi High Court has held that the loans and advances extended by the New Okhla Industrial Development Authority (NOIDA) are not commercial activities and are eligible for exemption under Section 10(46) of the Income Tax Act.TPO Lacks Jurisdiction To Question Commercial Expediency Or...
Indirect Tax Weekly Round-Up: 7 To 13 July 2024
Delhi High CourtUploading Of Notices By GST Department Under Heading 'Additional Notices' Is Sufficient Service: Delhi High CourtCase Title: Kamla Vohra Versus Sales Tax OfficerThe Delhi High Court has held that the uploading of notices by the GST department under the heading 'additional notices' amounts to sufficient service.Bombay High Court Bombay High Court Quashes Customs Duty Reassessment Against Patanjali Foods On Crude Palm Oil ImportCase Title: Patanjali Foods Ltd. Versus UOIThe Bombay...
Once Revision Order Become Final, No Question Of Passing Another Order Will Arise: Meghalaya High Court
The Meghalaya High Court has held that once the revision order becomes final, no question of passing another order will arise.The bench of Chief Justice S. Vaidyanathan and Justice W. Diengdoh has observed that the Assessing Officer had passed an order under Section 263 of the Income Tax Act, 1961, which was set aside by the Principal Commissioner of Income Tax, Shillong. The order of reassessment was passed by the assessing officer. Once the order under Section 263 of the Income Tax Act, 1961,...
Uploading Of Notices By GST Department Under Heading 'Additional Notices' Is Sufficient Service: Delhi High Court
The Delhi High Court has held that the uploading of notices by the GST department under the heading 'additional notices' amounts to sufficient service.The bench of Justice Vibhu Bakhru and Justice Sachin Datta, while remanding the matter to the authority to adjudicate the Show Cause Notice afresh, observed that the GST Authorities had addressed the issue and had re-designed the portal to ensure that the 'View Notices' tab and the 'View Additional Notices' tab were placed under one heading. The...
Suncros UVA Lotion/Gel/Hyclean Cream Classifiable As Medicaments: CESTAT
The Ahmedabad Bench of Customs Excise and Service Tax Appellate Tribunal (CESTAT) has held that Suncros UVA Lotion, Gel, and Hyclean Cream are classifiable as medicaments.The bench of Ramesh Nair (Judicial Member) and C. L. Mahar (Technical Member) has observed that the appellant-assessee produced ample evidence, such as the ingredients used in the manufacture of UVA Lotion, Gel, and Hyclean Cream. The package of the product and label state that the product is to be sold by retail on the...
CBIC Issues Guideline To Address Recovery Of Outstanding Dues Till GSTAT Becomes Functional
The Central Board of Indirect Taxes and Customs (CBIC) has issued the guidelines for recovery of outstanding dues, in cases in which first appeal has been disposed of, till the Goods and Service Tax Appellate Tribunal (GSTAT) comes into operation.The Board has received doubts from the trade and the field formations in respect of recovery of outstanding dues, in cases where the first appellate authority has confirmed the demand created by the adjudicating authority, fully or partially, and where...
Activity Of Electroplating Amounts To Manufacture, No Service Tax Payable: CESTAT
The Chandigarh Bench of Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has held that the activity of electroplating amounts to manufacture and no service tax is payable.The bench of S. S. Garg (Judicial Member) and P. Anjani Kumar (Technical Member) has observed that electroplating of electrical contacts by the appellant amounts to manufacture, and therefore they are not liable to pay service tax in view of the specific exclusion in the definition of business auxiliary service,...
Section 254(2) Applies Only Rectification Of Mistake, Can't Be Utilised For Recall And Review Order: ITAT
The Ahmedabad Bench of Income Tax Appellate Tribunal (ITAT) has held that the provision of Section 254(2) of the Income Tax Act is intended to only rectify the mistake apparent from the records, and the power of Section 254(2) of the Income Tax Act cannot be utilized to recall and review the order on its merit.The bench of Raghunath Kamble (Judicial Member) and Narendra Prasad Sinha (Accountant Member) has observed that the order passed by the ITAT recalling its earlier order, which was passed...
Scrip Can't Be Called Penny Stock When Shares Retained For More Than 10 Years; ITAT Deletes Addition
The Mumbai Bench of Income Tax Appellate Tribunal (ITAT), while deleting the addition, held that scrip cannot be called penny stock when shares are retained for more than 10 years.The bench of Kavitha Rajagopal (Judicial Member) and Amarjit Singh (Accountant Member) has observed that the assessee, being a SEBI-registered FPI, is engaged in investment in various companies out of which the assessee earns income and is also the only source of income for the assessee. The A.O. has failed to...
Reassessment Notice Not Complying Section 148 Pre-Conditions Is Beyond Jurisdictional: Bombay High Court
The Bombay High Court at Goa has held that the reassessment notice issued without complying with the pre-conditions mentioned in Section 148 of the Income Tax Act was beyond jurisdiction.The bench of Justice M. S. Karnik and Justice Valmiki Menezes has observed that the substantive rights of the original petitioner were governed by the provisions of the Portuguese Civil Code. The fact that the original petitioner is governed by the Portuguese Civil Code has been duly brought before the...
TPO Lacks Jurisdiction To Question Commercial Expediency Or Genuineness Of Need: Delhi High Court
The Delhi High Court has held that the statutory authority conferred upon the Transfer Pricing Officer (TPO) can only extend to an examination of the appropriateness of the method adopted for the purposes of determining arm's length pricing (ALP) or evaluating the enlistment of comparables. However, the TPO would neither be justified nor could it be countenanced to have the jurisdiction to question commercial expediency or genuineness of need.The bench of Justice Yashwant Varma and Justice...