Grant Of Section 153D Approval Can't Be Merely Ritualistic Formality, Rather It Must Reflect Appropriate Application Of Mind: Delhi High Court

The Delhi High Court has held that a grant of approval under Section 153D of the Income Tax Act, 1961, cannot be merely a ritualistic formality or rubber stamping by the authority; rather, it must reflect an appropriate application of mind.The bench of Justice Yashwant Varma and Justice Purushaindra Kumar Kaurav has observed that a single approval has been granted for AYs 2011–12 to 2017–18 in the case of the assessee. The order failed to make any mention of the fact that the draft assessment...

Accumulated Cenvat Credit Refund Allowable On Export Of Goods Even If Exempted From Central Excise Duty: CESTAT

The Allahabad Bench of Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has held that refund of accumulated Cenvat Credit is allowable on export of goods even if they are exempted from payment of Central Excise Duty. The bench of P.K. Choudhary (Judicial Member) has observed that exporting under bond is only a procedure. The claim for refund should not be disallowed when the fact of the export is not in dispute.The appellant/assessee is engaged in the manufacture of menthol crystals,...

Gujarat High Court Grants Bail To Metal Industries Proprietor In Rs. 6.67 Crore GST Evasion Case

The Gujarat High Court has granted bail in a case of GST evasion amounting to Rs. 6.67 Crores to the proprietor of Metal Industries, a business engaged in manufacturing and trading brass products, metal scrap, etc. in Jamnagar after 79 days of costJustice MR Mengdey presiding over the case, held, “In the facts and circumstances of the case and considering the nature of the allegations made against the applicant in the FIR, without discussing the evidence in detail, prima facie, this Court is of...

Gujarat High Court Upholds 12% GST On Mango Pulp Since GST Inception, Rejects Petitioner's Claims For Lower Tax Rate

The Gujarat High Court has upheld the imposition of a 12 percent tax on Mango Pulp since the inception of GST. The court clarified that Circular No. 179/11/2022-GST dated August 3, 2022, and Notification No. 06/2022 dated July 13, 2022, simply reinforce that mango pulp falls under the 12 percent GST bracket, specifically after the inclusion of "Mangoes (other than mangoes, sliced, dried)" following guava.The petitioner, Vimal Agro Products Pvt. Ltd., specializes in supplying mango pulp to a...

Notified Area Authority, Vapi Is Neither A 'Local Authority' Nor 'Governmental Authority: Gujarat High Court

The Gujarat High Court has ruled that the Notified Area Authority, Vapi, does not qualify as a local authority or governmental authority. As a result, the Solid Waste Management and recycling services provided to it are not eligible for exemption under Notification No. 12/2017-State Tax (Rate) dated 30th June 2017.The division bench, comprising Justice Bhargav D. Karia and Justice Niral M. Mehta, held, “considering the conspectus of law laid down by the Hon'ble Apex Court in the case of New...

Broomsticks Made Up Of Plastic Not Using Vegetable Material Taxable w.e.f 22.09.2017: CESTAT

The Ahembadad bench of the Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has held that broomsticks made up of plastic not using vegetable material are taxable with effect from September 22, 2017.The bench of Somesh Arora (Judicial Member) and Raju (Technical Member) has held that broomsticks are made up of plastic and do not use a vegetable material alone are taxable w.e.f. September 22, 2017 in Notification No. 01/2017 since, after amendment, the broomsticks fall under Serial No....

[S.85 Finance Act 1994] Limitation Period Prescribed In Special Statutes Prevails Over Limitation Act: Allahabad High Court

The Allahabad High Court has held that the limitations prescribed under special statutes, such as Finance Act, 1994 will prevail over the limitations mentioned in the Limitation Act, 1963.The Court held that statutes such as the Finance Act, 1994 or the Central Excise Act, 1944 were enabled to address specific areas of law and that they often contained detailed provisions regarding procedural aspects such as limitation. “The rationale underlying this principle is rooted in the notion that the...

Final Assessment Made By AO After Expiry Of One Month Of Receiving Directions From Dispute Resolution Panel, Is Time Barred: Chennai ITAT

The Chennai ITAT recently held that the final assessment order dated Nov 21, 2017 passed after expiry of one month from the end of the month in which the DRP directions were received by the Revenue is barred by limitation and hence, “passed wholly without jurisdiction and therefore, null in the eyes of law”. Section 144C(13) of Income tax Act mandates the completion of the assessment within one month from the end of the month in which DRP directions are received. Rule 11 of the Dispute ...

Once Cash Deposits In Bank A/C Of Lender Firm Is Accepted As Coming From Explained Sources, No addition Is Permitted U/s 68 As Unsecured Loan: Delhi ITAT

The Delhi ITAT deleted the addition made u/s 68 being unsecured loan obtained from a firm by the Assessee for further investment in a company on the ground that the identity, creditworthiness, and genuineness of the transaction stands proved. Section 68 of Income tax Act aims to ensure individuals and corporations transparently disclose their income by addressing unexplained cash credits in their books of accounts, placing the responsibility on the taxpayer to prove the legitimacy of...

Receipts By Foreign Entity From Provision Of Software Services In India Are Not Taxable U/s 44BB In Absence Of Its PE In India: Delhi ITAT

The Delhi ITAT held that receipts by a foreign entity from provision of software services to oil companies in India being in the nature of business profits are not taxable in India in the absence of its Permanent Establishment (PE) during the relevant AYs. Section 44BB of Income tax Act contains special provisions for computation of taxable income of a non-resident assessee engaged in the business of providing services or facilities in connection with, or supplying plant and machinery...

CESTAT Cases Weekly Round-Up: 12 To 18 May 2024

Agreement For Supply Of Water Is Not Covered Under Right To Use Natural Resources; CESTAT Quashes Rs. 10 Crores Service Tax DemandCase Title: Sasan Power Limited Versus Commissioner, Central Excise & Central Goods and Services TaxThe Delhi Bench of Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has held that the agreement executed between the appellant and the government is for the supply of water, for which charges are paid by the appellant on the basis of the volume of water...

Refusal To Condone Delay In filing Revised ITR by CBDT , Filed Post-NCLT Order Is Unreasonable: Bombay High Court

The Bombay High Court quashes the CBDT's order rejecting the application filed by CG Power and Industrial Solutions Ltd seeking condonation of delay in filing returns of income based on recast of accounts pursuant to NCLT's order. The High Court clarified that any assessment order passed under Sections 143(3) or 144C as well as the consequent notices or orders for AYs for which re-casted accounts have been filed, will not survive. The Division Bench comprising Justice K.R. Shriram...