Indirect Tax Cases Weekly Round-Up: 5 To 11 May 2024

Delhi High Court Delhi High Court Quashes MOOWR Instructions Denying Benefit To Solar Power Generation Units Case Title: Acme Heergarh Powertech Private Limited Versus CBIC The Delhi High Court has held that the statutory scheme underlying the Manufacture and Other Operations in Warehouse Regulations, 2019 (MOOWR) cannot be construed as seeking to exclude solar power...

SBI Not Liable To Deduct TDS On Transactions Related To Assignment Of Loans By NBFC: ITAT

The Mumbai Bench of Income Tax Appellate Tribunal (ITAT) has held that the State Bank of India (SBI) is not liable to deduct tax at source (TDS) on transactions related to the assignment of loans by non-banking financial companies (NBFC).The bench of Om Prakash Kant (Accountant Member) and Sandeep Singh Karhail (Judicial Member) has observed that since the NBFC is not acting as an agent of...

Advertising And Marketing Expenses For Sale Of Post-Import Goods Can't Be Included In Value Of Goods: CESTAT

The Delhi Bench of Customs, Excise and Service Tax Appellate Tribunal (CESTAT) has held that expenses related to advertising and marketing are expenses in respect of activities carried out in India for sale of the goods in India which is post-import and, therefore, expenses cannot be part of the value of the imported good.The bench of Justice Dilip Gupta (President) and P.V. Subba Rao...

No Service Tax Payable By National Co-Operative Consumers' Federation Of India For Selling Coal To End Consumers: CESTAT

The Delhi Bench of Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has held that whatever is charged by the coal companies for coal, the appellant, the National Co-Operative Consumers' Federation of India, is adding 5% margin money, collecting the sale price from the consumers, and paying the sales tax on the entire amount received from the end consumers; therefore, the...

Agreement For Supply Of Water Is Not Covered Under Right To Use Natural Resources; CESTAT Quashes Rs. 10 Crores Service Tax Demand

The 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 drawn, and it is not a case of the assignment of the right to use natural resources by the government.The bench of Justice...

Loss Due To Sale Of Government Securities By Bank Is “Business Loss”; ITAT Allows Income Tax Deduction

The Ahmedabad Bench of Income Tax Appellate Tribunal (ITAT) has held that loss due to the sale of government securities by banks is a “business loss” and the income tax deduction is allowable under Section 37 of the Income Tax Act.The bench of T.R. Senthil Kumar (Judicial Member) and Narendra Prasad Sinha (Accountant Member) have observed that the depreciation of government securities was...

Condition Of Pre-Deposit Duly Complied, Delhi High Court Restores Appeal On Board Of CESTAT

The Delhi High Court has held that the appeal itself may be restored on the Board of the Customs, Excise, and Service Tax Appellate Tribunal (CESTAT), bearing in mind the undisputed position that the condition of pre-deposit has been duly complied with.The bench of Justice Yashwant Varma and Justice Purushaindra Kumar Kaurav has allowed the instant writ petition and set aside the impugned...

AO Can't Draw An Adverse Inference For Mere Non-Response From Directors To Notices: Calcutta High Court

The Calcutta High Court, while deciding whether the addition made under Section 68 of the Income Tax Act, 1961, was justified or not, held that only because the directors failed to respond to the notices issued, the Assessing Officer could draw an adverse inference.The bench of Chief Justice T.S. Sivagnanam and Justice Hiranmay Bhattacharyya has observed that the assessing officer failed...

Non-Compliance Of Notification Conditions For Export Of Banned Non-Basmati White Rice; Delhi High Court Dismisses Exporter's Appeal

The Delhi High Court while dismissing the rice exporter's appeal, upheld the decision of the single bench holding that the exporter cannot be permitted to export 11,000 MT of banned non- basmati white rice, due to the non-fulfilment of the conditions entitling it to an exemption from the ban on export imposed by Notification bearing no. 20/2023 dated 20th July, 2023 issued by the Department...

Merely Brandishing Newspaper Cuttings Doesn't Prove Sharing Commercial Expertise: Bombay High Court

The Bombay High Court has held that merely brandishing newspaper cuttings does not amount to proof of sharing commercial expertise with its French counterpart as mandated by Section 80-O of the Income Tax Act.The bench of Justice K. R. Shriram and Justice Neela Gokhale has observed that Section 80-O was inserted in place of Section 85C, which was deleted by the Finance (No. 2) Act, 1967....

Delhi High Court Quashes MOOWR Instructions Denying Benefit To Solar Power Generation Units

The Delhi High Court has held that the statutory scheme underlying the Manufacture and Other Operations in Warehouse Regulations, 2019 (MOOWR) cannot be construed as seeking to exclude solar power generation in terms of permissions granted under Section 65 of the Customs Act, 1962. The bench of Justice Yashwant Varma and Justice Ravinder Dudeja has observed that the activities undertaken by...

Rectification Application U/s 154 Can't Be Termed As Time-Barred If Taxpayer Duly Responded To Notices Issued In Consequence To Intimation U/S 143(1): Ahmedabad ITAT

Observing that the assessee was all along, from the beginning since it became aware of some intimation having been made u/s 143(1) of the Income tax Act, seeking rectification in the same, the Ahmedabad ITAT held that rejection of said rectification application as being time barred is not in conformity with law. The Bench of Annapurna Gupta (Accountant Member) observed that...