Prickly Heat Powder Is Not A ‘Medicine’ For The Purpose Of Sales Tax In Kerala & Tamil Nadu: Supreme Court

The Supreme Court Bench has held that prickly heat powders fall under the category of ‘medicated talcum powder’ and not ‘medicine’ for the purpose of sales tax under Kerala General Sales Tax Act, 1963 (“KGST Act”). Whereas, under the Tamil Nadu General Sales Tax Act, 1959 (“TNGST Act”), prickly heat powder would be taxed as a cosmetic.

Can Tax Exemption Be Claimed Based On Doctrine Of Legitimate Expectation? Supreme Court Delivers Split Verdict

The Supreme Court bench comprising Justices M.R. Shah and Krishna Murari has rendered a split verdict on the issue concerning the applicability of the doctrine of legitimate expectation where a tax holiday/ sales tax exemption granted to the appellant- manufacturer was stopped pursuant to the amendments made to the West Bengal Sales Tax Act, 1994.

Supreme Court Upholds Withdrawal Of Customs Notification Granting Concession On Import Of Printing Machinery, On The Ground Of Indigenous Angle

The Supreme Court has upheld the withdrawal of a customs notification which granted customs duty concession to “Rotary Printing Machine” of ‘single width two plate variety’, on the ground of indigenous angle, i.e., availability of the equipment in India. The top court remarked that the same cannot be characterized as an irrelevant factor for withdrawing tax concession.

Bombay High Court

Bombay High Court Directs Dept. To Issue A Fresh Form-3 Under DTVSV After Giving Credit Of The Amount Paid Under The IDS

Case Title: Sunil Wamanrao Sakore Versus Union Of India

The Bombay High Court has held that the money lying in the corpus of the revenue had simply to be adjusted by way of a mathematical exercise and benefit accorded to the petitioner under the Direct Tax Vivad Se Vishwas Act, 2020 (DTVSV).

Department Adjusting The Refund Amount Under Amnesty Scheme Without Notice Violates Principles of Natural Justice: Bombay High Court

Case Title: TML Business Services Limited Versus The Deputy Commissioner of State Tax

The Bombay High Court has held that the action of the department in making the adjustment of a refund due to the petitioner while considering the application under the Amnesty Scheme without notice to the petitioner is in utter disregard of the well-established principles of natural justice and has caused grave prejudice to the petitioner.

Madras High Court

Madras High Court Upholds The Cancellation Of Customs Duty Exemption Certificate Issued To Apollo Hospitals

The Madras High Court has cancelled the cancellation of the customs duty exemption certificate (CDEC) issued to the Apollo Hospitals.

Chhattisgarh High Court

Chhattisgarh High Court Grants 3 Months Time To The Assessee For Depositing Pre-Deposit Before CESTAT

The Chhattisgarh High Court grants 3 months time to the assessee for depositing pre-deposit before the Customs, Excise, and Service Tax Appellate Tribunal (CESTAT).

ITAT

No Requirement Of Disallowing Part Of Director’s Remuneration And Depreciation When The Business Was Stopped Due To Temporary Lull: ITAT

Case Title: Shri Devkripa Textile Mills (P) Ltd. Versus ACIT

The Jodhpur bench of the Income Tax Appellate Tribunal (ITAT) has held that there is no requirement for disallowing part of the director’s remuneration and depreciation when the business is stopped due to a temporary lull.

ITAT Allows Income Tax Deduction On The Interest Income Received From The Co-Operative Bank

Case Title: Oberoi Spring Co–operative Versus Income Tax Officer

The Mumbai Bench of the Income Tax Appellate Tribunal (ITAT) has allowed the income tax deduction under Section 80P(2)(d) of the Income Tax Act on the entire amount of interest income received from the Co-operative Bank.

Section 14A Disallowance Cannot Be More Than Exempted Income: ITAT

Case Title: Royal Twinkle Star Club Pvt. Ltd. Versus Dy. Commissioner of Income Tax

The Mumbai Bench of Income Tax Appellate Tribunal (ITAT) has held that section 14A disallowance cannot be more than exempted income.

AO Without Rejection Of Books Of Accounts Estimated The Income Based On Profit Margin Method: ITAT Deletes Addition

The Ahmedabad Bench of the Income Tax Appellate Tribunal (ITAT), while upholding the addition, has held that A.O. without rejection of books of accounts under Section 145 but estimated the income based on the Profit Margin Method.

Department Can Bring Expenditure Incurred In Earlier Years To Be Taxed In Subsequent Years On Grounds Of Bogus Expenditure: ITAT

The Delhi Bench of the Income Tax Appellate Tribunal (ITAT) has observed that the department can bring expenditures incurred in earlier years to be taxed in subsequent years on grounds of bogus expenditure.

Payment Of Compensation To CSA Under Termination Agreement Is Not Taxable Under India-South Africa DTAA, BCCI Not Liable To Deduct TDS: ITAT

Case Title: The Board of Control for Cricket in India Versus Dy. Commissioner of Income Tax

The Mumbai bench of the Income Tax Appellate Tribunal (ITAT) has held that payment of compensation to Cricket South Africa (CSA) under the Termination Agreement is not taxable under the provisions of the India-South Africa DTAA.

Any Adjustment Against Bad And Doubtful Debts Amounts To Actual Writing Off The Bad Debts: ITAT Deletes Addition

Case Title: Integra Engineering India Ltd Versus Asstt. Commissioner of Income-tax

The Ahmedabad bench of the Income Tax Appellate Tribunal (ITAT) has deleted the addition and held that any adjustment for bad and doubtful debts amounts to actual writing off the bad debts.

There Cannot Be Any Addition Of The Regular Items Which Were Disclosed By The Assessee In The Regular Books Of Accounts: ITAT

Case Title: DCIT Versus Shri Basant R. Agarwal

The Ahmedabad Bench of the Income Tax Appellate Tribunal (ITAT) has held that there cannot be any addition of the regular items that were disclosed by the assessee in the regular books of accounts.

CESTAT

Department Has No Right To File Revision Application In Case Of Refund Of Service Tax On Export Of Services: CESTAT

Case Title: Commissioner of Service Tax, Mumbai-II Versus Mail Order Solutions (I) Ltd.

The Mumbai Bench of the Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has held that the department has no right to file a revision application in case of refund or rebate of service tax on the export of services since no such provision has been made for Revenue to file a revision application.

Departmental Action Demanding Service Tax At Visakhapatnam Unit Does Not Warranted Any Action In Kolkata Unit: CESTAT

Case Title: Commissioner of Service Tax, Kolkata Versus M/s. Walzen Strips Private Limited

The Kolkata Bench of the Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has held that departmental action demanding service tax at the Visakhapatnam unit does not warrant any action in the Kolkata unit.

Once The Importers/Exporters Are Granted Immunity From Prosecution, Fine, Penalty It Is Unfair To Continue The Proceedings: CESTAT

Case Title: M/s.Evergreen Shipping Agency India Pvt. Ltd. Versus Commissioner of Customs

The Delhi Bench of the Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has held that once the importers and exporters have been granted immunity from prosecution, fines, and penalties, and proceedings against them have come to an end, it is discriminatory and unfair to continue the proceedings against the co-notices.

Bank Officials Failed To Detect Fake Documents, How Can One Expect From CHA To Unearth The Dubious Plan Of Exporter: CESTAT

Case Title: M/S Kvs Cargo Versus Commissioner, Customs (Export)- New Delhi

The Delhi Bench of the Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has held that the bank officials, despite verification, are not able to detect the fraudulent nature of the documents. How can one expect a Customs House Agent (CHA), who is not even a public official, to unearth the dubious plan of the exporter?

CESTAT Allows Income Tax Deduction On Account Of Octroi And Additional Sales Tax

Case Title: M/s Fresenius Kabi Oncology Limited Versus The Commissioner of Central Excise

The Chandigarh Bench of the Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has allowed the income tax deduction on account of octroi and additional sales tax.

Service Tax Paid On Insurance Of Plant, Machinery For Manufacture Is Admissible As Cenvat Credit: CESTAT

Case Title: M/s Bhaurao Chavan SSK Ltd. Versus Commissioner of Central Excise & Customs, Aurangabad

The Mumbai Bench of the Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has held that the service tax paid on the insurance of plant, machinery, and equipment required for manufacture is admissible as CENVAT Credit.

Godrej Zymegold Contains Can Be Characterised As Fertilizer, Classified Under CTH 3101: CESTAT

Case Title: M/s. Godrej Agrovet Ltd. Versus Commissioner of CGST, Kolhapur

The Mumbai Bench of the Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has held that Godrej Zymegold, which contains nitrogen and chlorine, suffices to characterize the product as fertilizer, classified under CTH 3101.

AAR

12% GST Payable On Accommodation Building Located Outside The Boundary Of The Religious Place: AAR

Applicant’s Name: Nandini Ashram Trust

The Ahmedabad Bench of the Authority of Advance Ruling (AAR) has ruled that GST is payable on accommodation buildings located outside the boundary of the religious place.

18% GST Payable On The Commission If Commission Is Deducted On The Bonus Amount As An Intermediary: AAR

Applicant’s Name: M/s. Foodsutra Art Of Spices Private Limited

The Telangana Authority of Advance Ruling (AAR) has ruled that 18% of the commission will be deducted from the bonus amount as an intermediary.

GST Exemption On Architectural Consultancy Service Provided To Surat Municipal Corporation: AAR

Applicant’s Name: Ajit Babubhai Jariwala

The Gujarat Authority of Advance Ruling (AAR) has held that the "Architectural Consultancy Service" provided to Surat Municipal Corporation (SMC) for the construction of SMIMER Hospital and College Campus is exempt from GST.