UP VAT Act | Enhancement Of Turnover Not A Necessary Consequence To Rejection Of Books Of Accounts: Allahabad High Court

The Allahabad High Court has held that turnover cannot be enhanced merely based on rejection of books of accounts. There has to be material as to suppression of turnover by the assesee to indicate evasion of tax.Relying on various judgments of the Allahabad High Court, Justice Piyush Agrawal held “Once the findings of fact has been recorded in favour of the petitioner, there is no cogent...

Biscuits Can Qualify As ‘Food Stuff’ To Be Eligible For Service Tax Refund: CESTAT

The Kolkata Bench of Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has held that biscuits can qualify as foodstuff so as to be eligible for the service tax exemption.The bench of R. Muralidhar (Judicial Member) and K. Anpazhakan (Technical Member) has allowed the refund, which was rejected by the adjudicating authority on the ground of limitation. The limitation would not...

Service Tax Liability Can’t Be Fastened On Compensation Received By Fabindia For Loss Caused By Breach Of Contract: CESTAT

The Delhi Bench of Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has held that service tax liability cannot be fastened on compensation received by Fabindia for loss caused by breach of contract.The bench of Binu Tamta (Judicial Member) observed that any penalty or compensation received for any loss or damage caused by breach or non-performance of the terms of the contract is...

Rejection Of Books Of Accounts Under UPVAT Act Will Not Necessarily Lead To Rejection Of Books Under Central Sales Tax Act: Allahabad HC Reiterates

The Allahabad High Court has reiterated that in absence of any material on record, rejection of books of accounts under local laws cannot be the sole ground for rejection of books of accounts under Central Sales Tax Act.“Merely because books of account under local sales have been rejected, the same will not necessarily be the ground for rejecting the books of account under Central Sales Tax...

Tax Payable After Credit Of Prepaid Taxes Is Less Than Rs.3,000, Prosecution Not Sustainable; Madras High Court

The Madras High Court has held that prosecution under Section 276CC of the Income Tax Act is not sustainable as the tax payable after crediting prepaid taxes was less than the prescribed sum of Rs. 3,000.The bench of Justice G.K. Ilanthiraiyan has observed that proviso (ii)(b) to Section 276CC takes care of genuine assessees who either file the returns belatedly but within the end of...

Kerala High Court Rejects Assessee ’s Claim For Service Tax Refund To Meet VAT Demand On Pest Control Contract

The Kerala High Court has rejected the assessee's claim for a service tax refund to meet the VAT demand on the pest control contract.The bench of Justice Anu Sivaraman has observed that the claim of the petitioner that the service tax authorities must be directed to meet the demand for VAT, if any, found payable by the petitioner cannot be accepted.The petitioner or assessee is in the business...

UPVAT Rules | Stricter Approach To Be Followed Before Giving Benefit Of Exemptions/ Deductions: Allahabad High Court

The Allahabad High Court has held that though in case of doubt, taxing statues are to be interpreted in favour of the assesee. However, a stricter approach needs to be followed before giving the benefit of exemptions and deductions.“The general rule of law in taxing statutes is that in case of any doubt the benefit should be given to the assessee. However, in case of exemption and deduction...

IGST Refund On Exported Goods Being Zero Rated Supplies Admissible As Excess Drawback Repaid: Gujarat High Court

The Gujarat High Court has ruled that the surplus drawback resulting from the utilization of the Cenvat Credit facility was repaid along with interest, and thus, the refund of Integrated Goods and Services Tax (IGST) paid on goods and services for exported goods, classified as zero-rated supplies, is deemed eligible.The petitioner, ADF Foods Ltd., challenged the inaction on the part of...

Jharkhand High Court Rules In Favor of Revenue In Clean Energy Cess Case

The Jharkhand High Court has ruled in favor of the Revenue in a case involving the demand for Clean Energy Cess on coal production.The petitioner, a subsidiary of Coal India Limited and a Category-I Mini Ratna Company since 2007, had challenged the order dated 29.09.2020 passed by respondent no. 3, the Principal Commissioner, Goods & Services Tax-CX, Ranchi. In the said order, respondent...

Punjab And Haryana High Court Quashes Section 69 Addition On HSBC Geneva Deposits As Sufficient Explanation About Source Of Investments Given On Affidavit

The Punjab and Haryana High Court has quashed the addition under Section 69 of the Income Tax Act on HSBC Geneva deposits as a sufficient explanation about the source of investments given in the affidavit.The bench of Justice G.S. Sandhawalia and Justice Harpreet Kaur Jeewan have observed that the explanation offered by the Assessee that the amount in the bank account belonged to his nephew...

Andhra Pradesh High Court Dismisses Plea Challenging Denial Of GST ITC Claim On The Basis Of Transfer Done Manually Not Electronically

The Andhra Pradesh High Court has dismissed the plea challenging the denial of the GST input tax credit (ITC) claim on the basis that the transfer was done manually, not electronically.The bench of Justice Ravi Nath Tilhari and Justice A V Ravindra Babu has observed that the petitioner’s plea to read down the provisions of Rule 41 of the CGST Rules and to direct to accept the manual...

No Recovery Towards TAS Can Be Made Towards Deductee Even If Deductor Is Undergoing CIRP: Delhi High Court

The Delhi High Court has held that no recovery towards Tax at Source (TAS) can be made towards the deductee even if the deductor is undergoing the Corporate Insolvency Resolution Process (CIRP).The bench of Justice Rajiv Shakdher and Justice Girish Kathpalia has observed that the deductee (petitioner) followed the regime framed in the Act for collecting TAS through an agent (Ninex) of...