GST To Remain @5% On Popcorn Sold In Theatres, Clarifies Govt

The Finance Ministry in its 55th Meeting of the GST Council, clarified that ready to eat popcorn which is mixed with salt and spices are classifiable under HS 2106 90 99 and attracts 5% GST if supplied as other than pre-packaged and labelled and 12% GST if supplied as pre-packaged and labelled.However, when popcorn is mixed with sugar thereby changing its character to sugar confectionary...

Belated Filing Of Form 9A Is Not Attributable To Trust: Bombay HC Allows Exemption U/S 11 After Condoning Delay Under IT Act

The Bombay High Court held that bonafide delay in filing Form 9A on part of trust, has to be construed as procedural lapse and shall be condoned by exercising powers u/s 119(2) of Income tax Act.The Division Bench of Justice G S Kulkarni and Justice Advait M Sethna observed that that the jurisdictional AO completely lost sight of the fact that at the time when assessee claimed deductions...

ICEGATE E-Payment Platform Enables Voluntary Payment Electronically: Finance Ministry

The CBIC on 23.12.2024 has issued a circular informing that the ICEGATE e-payment platform has enabled voluntary payments electronically. As per the circular, the new functionality will replace the existing TR-6 payments which are currently being done manually at various Customs Stations. The functionality will enable the users to generate a self-initiated challan...

Mark-Up Earned By Purchasing & Selling Cargo Space To Importers/Exporters On Principal-To-Principal Basis Is Not Liable To Service Tax: CESTAT

The New Delhi Bench of Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has stated that mark-up earned by purchasing and selling cargo space to importers/exporters on principal-to-principal basis in freight business is not liable to service tax as it amounts to trading activity and not provision of service as intermediary. The Bench of Binu Tamta (Judicial Member) and...

S.147 Of IT Act Doesn't Postulate Review Jurisdiction Such That Assessment Can Be Reviewed By AO Intending To Form Different Opinion: Bombay HC

The Bombay High Court ruled that the materials which were already available before AO and which ultimately were considered in passing assessment order u/s 143(3), cannot form basis of reopening, on ground that such materials were ignored in finalizing assessment.Section 147 does not postulate review jurisdiction, so that assessment can be reviewed by the Assessing Officer intending to...

Interest Earned On Borrowed Funds Kept For Acquiring Coal Mine Is Not Revenue Receipt If Coal Mine Is Aborted, Borrowings Are Repaid: Delhi HC

The Delhi High Court recently accepted that the interest received on borrowed funds, which were temporarily held in interest bearing deposit, is a part of the capital cost and is required to be credited to Capital Work In Progress.The Division Bench of Acting Chief Justice Vibhu Bakhru and Justice Swarana Kanta Sharma observed that if the interest is earned on the amounts temporarily kept...

ITO Acted On Complete Change Of Opinion On Same Material With Intent To Review Assessment Order Passed By Him: Bombay HC Quashes Reopening

While setting aside the reassessment proceedings, the Bombay High Court held that 'change of opinion' or 'review of already completed assessment', is not permitted to AO.While holding so, the Division Bench of Justice G.S Kulkarni and Justice Advait M Sethna observed that there is no whisper of allegations against the assessee that income that has escaped assessment was attributable to...

No Penalty Can Be Levied U/S 271B Of IT Act If No Prejudice Is Caused To Dept On Account Of Belated Furnishing Of Audit Report: Kerala HC

The Kerala High Court held that circumstances under which AO can absolve a taxpayer from payment of penalty u/s 271B are discernible from a reading of Sec 273B, which states that no penalty can be imposed on an assessee u/s 271B for breach of the provisions, if he proves that there was "reasonable cause" for the said failure.The provision of Section 44AB of Income tax Act prescribes a...

Amendment In Finance Act Can't Retrospectively Affect Vested Right Of Taxpayer To Adjudicate Settlement Application U/S 245(D): Calcutta HC

The Calcutta High Court recently reiterated that when the settlement applications were filed before the date on which the Finance Act 2021 did not come into effect, then taxpayers had vested right of preferring the application in absence of any statute prohibiting the said application.The Division Bench of Justice Harish Tandon and Justice Hiranmay Bhattacharyya reiterated that...

Discounts Received From Manufacturer & Passed On To Customers During Car Sale Doesn't Constitute Service, Not Liable To Service Tax: CESTAT

The New Delhi Bench of Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has stated that discounts/incentives received from manufacturer and passed on to customers during car sales constitute sale of goods, not service, hence not liable to service tax. The Bench of Binu Tamta (Judicial Member) and Rajeev Tandon (Technical Member) has observed that...

GST Department's Effective Adjudication Of Matter Cannot Be Scuttled By Seeking Writ Remedy: Calcutta High Court

While reiterating that it shall not interfere in matters requiring fact-finding and adjudication, which fall squarely within the statutory domain, the Calcutta High Court advised the manufacturer/ supplier to exhaust the statutory remedies provided under the CGST Act, 2017 including submitting a detailed response to the SCN.“The statutory framework under the CGST Act provides...

Tax Weekly Round-Up [16th December - 22nd December 2024]

SUPREME COURT Coconut Oil Classifiable As 'Edible Oil' For Central Excise Tariff; If Sold As Cosmetic, Taxable As 'Hair Oil' : Supreme Court Case : Commissioner of Central Excise, Salem v. M/s Madhan Agro Industries (Pvt) Ltd Case no.: CIVIL APPEAL NO. 1766 OF 2009 The Supreme Court has held that pure coconut oil, packaged and sold in small quantities ranging from 5 ml to 2 litres, would be classifiable as 'Edible oil' for the purposes of the Central Excise Tariff Act, 1985. It...