Calcutta High Court Stays Demand Order Confirming Payment Reversal Of ITC Due To Cancellation Of Supplier's Registration

The Calcutta High Court stayed the demand order confirming the payment reversal of the ITC due to the cancellation of the supplier's registration.The bench of Justice Raja Basu Chowdhury has observed that the prima facie case was made by the petitioner/assessee, and there shall be a stay of the demand raised by the proper officer as is reflected in the order, subject to the petitioners' depositing 10% of the disputed tax amount with the GST authorities.The petitioner/assessee has challenged the...

Undervaluation Can't Lead To Seizure Of Goods In Transit By Inspecting Authority: Karnataka High Court

The Karnataka High Court has held that undervaluation cannot be a ground for seizure of goods in transit by the inspecting authority.The bench of Justice Krishna S. Dixit and Justice Ramachandra D. Huddar upheld the single bench order in which the obligation to pay tax and penalty has been quashed coupled with a direction to release the vehicle.The conveyance bearing Registration No. AP21-TY-3126 was intercepted by the CTO (Vig) on December 2, 2021, at the Bommasandra industrial area, more than...

Providing Capital Goods To Contractor For Use In Captive Mines Doesn't Amount To 'Removal': CESTAT

The Delhi Bench of Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has held that Hindustan Zinc is not required to reverse credit availed as merely providing capital goods to contractors for use within captive mines does not amount to 'removal'.The bench of Binu Tamta (Judicial Member) and Hemambika R. Priya (Technical Member) has observed that there is no sale and no removal of inputs and capital goods when the assessee supplied the same to the contractor, which was used for mine...

Section 80P(2)(d) Deduction Allowable To Co-operative Society On Interest Earned From Co-operative Bank: Delhi ITAT

The Delhi bench of Income Tax Appellate Tribunal (ITAT) has held that the deduction under Section 80P(2)(d) of the Income Tax Act is allowable to the co-operative society on interest earned from co-operative banks.The bench of Kul Bharat (Judicial Member) has observed that the assessee is a Co-operative society and it has earned interest and dividend income by making deposits with the Delhi State Co-operative Bank Ltd. which is registered under Co-operative Societies Act and the Division Bench...

Screening Of Films Can't Be Categorised Under Business Support Service: CESTAT Quashes Service Tax Demand PVS Multiplex India

The Allahabad Bench of Customs, Excise, and Service Tax Appellate Tribunal (CESTAT), while quashing the service tax demand against the PVS Multiplex India, held that screening of films cannot be categorised under business support service.The bench of P.K. Choudhary (Judicial Member) and Sanjiv Srivastava (Technical Member) has relied on the decision of Allahabad Bench of CESTAT in the case of Inox Leisure Ltd., in which it was held that by definition, 'Business Support Service' is a generic...

Hybrid/Pure Matrix Cards For PTN Equipment Classifiable Under CTI 8517 70 10: CESTAT Quashes Customs Duty Against Vodafone Idea

The Delhi Bench of Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has held that Hybrid/Pure Matrix Cards for PTN Equipment would be classifiable under CTI 8517 70 10 as “parts of goods, and Small Form Factor Pluggable for Packet Transport Network (PTN) Equipment would be classifiable under CTI 8517 70 90.The bench of Justice Dilip Gupta (President) and P.V. Subba Rao (Technical Member) has observed that NIC is effectively a translator, which allows a computer to communicate with a...

Direct Tax Cases Monthly Round Up: June 2024

Delhi High CourtInterest Received By Indian PE On Deposit Maintained With Head Office/Overseas Branch Is Not Taxable In India: Delhi High CourtCase Title: The Commissioner Of Income Tax-International Taxation-3 Versus The Bank Of Tokyo-Mitsubishi UFJ Ltd.The Delhi High Court has held that interest received by the Indian PE on deposits maintained with the Head Office/Overseas Branch is not taxable in India.Once Issue Of Arm's Length Remuneration Settled By TPO, Question Of Ascertaining Existence...

Indirect Tax Cases Monthly Round Up: June 2024

Bombay High CourtNon-Communication Of SCN To Call Book Is Fatal; Bombay High Court Quashes SCNs Against ICICI Home FinanceCitation: 2024 LiveLaw (Bom) 305Case Title: ICICI Home Finance Company Ltd. Versus UOIThe Bombay High Court, while quashing the show cause notices against ICICI Home Finance Company Ltd., held that non-communication of show cause notices transferred to the call book is fatal.Slump Sale Doesn't Amount To Sale Of Goods Within MVAT Act: Bombay High CourtCitation: 2024 LiveLaw...

CESTAT Monthly Round Up: June 2024

Minimum Import Price Paid On Prime Pre-painted Steel Coils; CESTAT Quashes Redemption Fine, PenaltyCase Title: M/s Hindustan Distributors Versus Commissioner of Customs, LudhianaThe Chandigarh Bench of Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has held that the minimum import price (MIP) paid on prime pre-painted steel coils is not payable; therefore, a redemption fine and penalty are not payable.Royalty Not Includible In Transaction Value Of Imported Raw Materials To Demand...

ITAT Cases Monthly Round Up: June 2024

Salary Reimbursements Of Seconded Employees Is Not Taxable As Fees For Technical Services: ITATCase Title: IBM Canada Limited Versus DCITThe Bangalore Bench of Income Tax Appellate Tribunal (ITAT) has held that salary reimbursements of seconded employees are not taxable as fees for technical services.ITAT Quashes Assessment Order Against Bret Lee As Reassessment Notice Not Served Within Limitation PeriodCase Title: M/s. Valeo Friction Materials India Ltd. Versus Commissioner of CustomsThe...

GST Regime At Nascent Stage; Bombay High Court Quashes Order Rejecting IGST Refund

The Bombay High Court has quashed the order rejecting Integrated Goods and Service Tax (IGST) on the grounds that the order was passed without any reason and without application of mind.The bench of Justice K.R. Shriram and Justice Jitendra Jain have observed that the CGST Commissioner does not have the power to condone the delay, but the writ court does. The bench further observed, “Our judicial conscience does not permit us to reject this cause shown as bogus, particularly in view of the fact...

Transportation Of Machinery From JNPT To Factory Doesn't Constitute Supply, GST Not Payable: Bombay High Court

The Bombay High Court has held that transportation of machinery from Jawaharlal Nehru Port Authority (JNPT) to the factory of the assessee does not constitute supply, and hence GST is not payable.The bench of Justice K.R. Shriram and Justice Jitendra Jain has observed that the first limb of Section 129(1)(a), which provides for a penalty equal to one hundred percent of the tax payable, cannot be invoked in the present case. The State GST Authority in the impugned order has erroneously applied...