Tax
Failure To Comply Provision Of Sec 75(4) Of CGST Act 2017 Vitiates Entire Order: Calcutta High Court
The Calcutta High Court held that failure to comply with statutory provision which mandates consideration of explanation on the part of assessee before passing adverse order, vitiates such order. The High Court held so while considering that the petitioner was prevented from filing his response to the show cause notice, due to a reasonable cause. Referring to Section 75(4) of...
CENVAT Credit Can't Be Denied For Belatedly Filing ER1 Returns: CESTAT
The Chennai Bench of Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has held that under cenvat credit cannot be denied for belatedly filing ER1 Returns.The bench of M. Ajit Kumar (Technical Member) has observed that in the CENVAT scheme, there is no one-to-one correlation between the inputs and the final product. There was no time limit during which credit had to be taken...
No IGST Is Payable On Ocean Freight Under Reverse Charge Mechanism; Madras High Court Directs Refund
The Madras High Court has directed the department to refund the GST paid by the assessee on the ocean freight under the reverse charge mechanism.The bench of Justice Mohammed Shaffiq has relied on the decision of the Supreme Court in the case of Mohit Minerals Private Limited, in which it was held that no IGST is payable on ocean freight under the reverse charge mechanism for cost, insurance,...
Commercial Tax Officer Not Obligated To Physically Verify E-Way Bills: Madras High Court
The Madras High Court has quashed the suspension order of a commercial tax officer who issued refunds to fake exporters without verification.The bench of Justice N. Anand Venkatesh has observed that, as a quasi-judicial authority, if the petitioner has fulfilled all the requirements that are provided under the relevant Act and the circular, that by itself is sufficient compliance before...
Reasons To Believe Of Income Escaping Assessment Must Have Nexus With Information Before AO Which Led To Formation Of Such Belief: Ahmedabad ITAT
The Ahmedabad ITAT held that at the stage of reopening, conclusive proof of income escaping assessment is not required rather a prima-facie formation of a belief that income of assessee has escaped assessment of the AO is required based on tangible material.The said reasons to believe that income have escaped assessment should have a live link or nexus with the information before the AO which...
Refund Claim Can't Be Rejected On The Basis Of Mismatch In SAD And VAT/CST: CESTAT
The Chennai Bench of Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has held that the refund claim cannot be rejected on the basis of a mismatch between Special Additional Duty of Customs (SAD) and Value Added Tax (VAT).The bench of M. Ajit Kumar (Technical Member) has observed that minor discrepancies of description mentioned in the invoice vis-à-vis the bill of entry do not go...
Word 'Approved' By PCCIT For Reopening Of Assessment Not Enough, Reasons Necessary, Delhi High Court
The Delhi High Court has held that mere appending of the word “approved” by the PCCIT while granting approval under Section 151 of the Income Tax Act to the reopening under Section 148 is not enough.The bench of Justice Yashwant Varma and Justice Ravinder Dudeja has observed that while the Principal Chief Commissioner of Income Tax (PCCIT) is not required to record elaborate reasons, he...
Non-Submission Of “Bill Of Export” Can't Be Treated As Non-Discharge Of Export Obligation, If Supply To SEZ Unit Is Proved: Bombay High Court
The Bombay High Court has held that if the party is able to show proof of supply to the Special Economic Zone (SEZ) Unit, then non-submission of the “Bill of Export” cannot be treated as non-discharge of proof of export obligation (EO).The bench of Justice K. R. Shriram and Justice Jitendra Jain has observed that failure to produce a copy of the assessed bill of export in respect of...
Not All Persons Are Required To Obtain Tax Clearance Certificate Before Leaving India: CBDT
The Central Board of Direct Taxes (CBDT) has issued a clarification in respect of the income-tax clearance certificate (ITCC).“It is being erroneously reported that all Indian citizens must obtain an income-tax clearance certificate (ITCC) before leaving the country-a position that is factually incorrect,” the Board clarified.Section 230 (1A) of the Income-tax Act, 1961, relates to...
12% GST Applicable On Geo Membrane For Waterproof Lining Fabrics, Not 18%: Gujarat High Court Directs Refund Of Excess GST Paid
The Gujarat High Court has ruled that the Geo Membrane, a textile fabric used for waterproof lining, is subject to a 12% GST rate rather than the previously applied 18%. The court has directed the GST department to refund the excess 6% GST paid by the petitioner.The case involved a partnership firm that manufactures Geo Membrane, a type of textile fabric. The firm is registered under the...
Boro Plus Ayurvedic Cream Is Medicated Ointment, Taxable At 5% Under Entry 41 Schedule II UPVAT Act: Allahabad High Court
The Allahabad High Court has upheld the Commercial Tax Tribunal, Lucknow's finding that Boro Plus Ayurvedic Cream is a 'medicated ointment' and not an 'antiseptic cream'. It was held that Boro Plus Ayurvedic Cream is taxable at 5% under Entry 41 Schedule II of the Uttar Pradesh Value Added Tax Act, 2008. Heading “Drugs and Medicines” in Entry 41, with effective from October 11,...
Service Tax Not Payable On Revenue Sharing Arrangement Between Exhibitors & Distributors Of Films: CESTAT
The Mumbai Bench of Customs, Excise, and Service Tax (CESTAT) has held that the no service tax is payable on revenue sharing arrangements between exhibitors and distributors of films.The bench of Justice Dilip Gupta (President) and C. J. Mathew (Technical Member) has observed that the theatre owner screens or exhibits a movie that has been provided by the distributor. Such an exhibition is not...