Tax
Non-Availability Of GSTAT Cannot Be Used To Bypass Mandatory Pre-Deposit U/S 112(8) CGST Act: Orissa High Court
The Orissa High Court held that while a writ petition may be entertained when the Goods and Services Tax Appellate Tribunal (GSTAT) is not constituted or functional, such non-availability cannot be used to bypass the mandatory pre-deposit under Section 112(8) of the CGST Act. Section 112(8) of the Central Goods and Services Tax (CGST) Act, 2017, outlines the mandatory...
Service Tax | Extended Limitation Cannot Be Invoked Without Mens Rea, Deliberate Intent To Evade Duty To Be Proven: CESTAT Chandigarh
The Chandigarh Bench of the Customs, Excise and Service Tax Appellate Tribunal (CESTAT) has set aside a service tax demand of ₹18.95 crore raised against the assessee, KEC International, holding that the Department wrongly invoked the extended period of limitation without establishing any intent to evade tax . A Bench comprising Hon'ble Mr. S.S. Garg (Judicial Member) and Hon'ble Mr....
Commission Earned On Sale Of Agricultural Produce Attracts Service Tax Under 'Business Auxiliary Service': CESTAT Ahmedabad
The Ahmedabad Bench of Customs, Excise and Service Tax Appellate Tribunal (CESTAT) confirmed demand of service tax on commission earned on account of sale of agricultural produce, Indian Raw Cotton under the head 'Business Auxiliary Service'. The CESTAT upheld order by the lower authority fastening service tax liability of ₹71.75 lakhs and ₹90.56 lakhs for the periods 2010-11...
Income Tax Act | Sikkim High Court Allows S.80P(2)(d) Deduction On Interest Earned From Co-operative Banks By Non-Bank Co-operative Society
The Sikkim High Court has held that a non-bank co-operative society is entitled to claim deduction under Section 80P(2)(d) of the Income Tax Act, 1961, on interest income earned from investments made with co-operative banks, and that Section 80P(4) does not bar such deduction. A Division Bench of Chief Justice Biswanath Somadder and Justice Meenakshi Madan Rai allowed the tax appeal...
Customs | Alleged Export Through Non-Specified Routes Must Be Proved; Presumption Insufficient To Uphold Seizure: CESTAT Kolkata
The Kolkata Bench of Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) held that seizure of goods cannot be sustained merely on the assumption that they were intended for export through non-specified routes. In the absence of any corroborative evidence establishing intent to export illegally, such presumption alone is insufficient to justify such...
Clause 8 Of Assam GST Reimbursement Scheme Prima Facie Ultra Vires: Gauhati High Court Stays SCN Against Patanjali Foods
The Gauhati High Court found that Clause 8 of the Assam Industries [Tax Reimbursement for Eligible Units] Scheme, 2017, which restricts input tax credit, runs contrary to the Constitutional framework and the provisions of the CGST Act. Consequently, the bench stayed the operation of the show-cause notices (SCN) issued to Patanjali Foods Limited. Justice Manish Choudhury was addressing...
Cryptic Show Cause Notice Without Factual Details Invalidates GST Registration Cancellation: Gauhati High Court
The Gauhati High Court held that a GST registration cannot be cancelled on the basis of a cryptic show cause notice, which merely quotes statutory provisions without disclosing the factual grounds. Justice Sanjay Kumar Medhi noted that apart from stating the provisions of Section 29(2)(e) of the CGST Act, there are no facts or any details stated in the show cause notice. In the...
CGST Act | Once Returns Are Filed Within Time Period U/S 16(5), Limitation U/S 16(4) Loses Significance: Kerala High Court Allows ITC Claim
The Kerala High Court held that Section 16(5) of the CGST Act (Central Goods and Services Tax Act, 2017), being a non-obstante provision, overrides the time limit prescribed under Section 16(4) once returns are filed within the cut-off date specified therein. Section 16(4) of the Central Goods and Services Tax Act, 2017 specifies that no registered person can take Input Tax Credit...
Homeopathic Medicines Having Single, Two Or More Constituents Attract 5% GST Post Rate-Revision: West Bengal AAR
The West Bengal Authority for Advance Ruling (AAR) has held that homeopathic medicines having a single, two or more components formulated exclusively in alignment with the Drugs and Cosmetics Act, irrespective of retail sale, attracted 5% GST. In a ruling by Shri. Shafeeq S (Member- Central Tax) and Shri. Jaydip Kumar Chakrabarti (Member-State Tax) from the two Tariff Entries 3003...
Manpower-Based Municipal Services For Ganges Ghat Special Cleanliness Drive Exempt From GST: West Bengal AAR
The West Bengal Authority for Advance Ruling (AAR) has held that supply of unskilled labour for special cleanliness drive for cleaning Ganga ghats would qualify as 'Pure Service'. In a ruling by Shri. Shafeeq S (Member- Central Tax) and Shri. Jaydip Kumar Chakrabarti (Member-State Tax) it was observed that operation and maintenance services to various Corporations and Municipalities...
Customs | Refund Cannot Be Rejected Merely For Not Filing Chartered Accountant Certificate In Prescribed Format: CESTAT
The Chennai Bench of Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) held that a refund claim cannot be rejected solely because the Chartered Accountant certificate was not submitted in a prescribed or revised format. The bench opined that the format prescribed under the public notice is only indicative, and once the assessee has produced documents evidencing...
Sending Imported Goods To Job Worker For Manufacture Does Not Defeat Exemption Benefit: CESTAT Chennai Grants Relief To Godrej
The Chennai Bench of Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) held that merely sending imported goods to a job worker for manufacture does not violative exemption conditions. Since there was no allegation of the sale of goods, the exemption of benefit under Notification No. 73/2006-Cus dated 10.07.2006 cannot be denied to Godrej. Notification No. 73/2006-Cus...