Tax
Supreme Court Affirms Penalty On 'Zarda' Manufacturers For Misclassifying Product As 'Chewing Tobacco' For Central Excise Duty
The Supreme Court while adjudicating a matter wherein the Assesssee deliberately misclassified the ‘Zarda’ produced by it as ‘Chewing Tobacco’ for evading payment of a high duty as applicable to ‘Zarda’, has affirmed the imposition of penalty and demand for payment of differential duty raised by the Central Excise Department from the Assessee.The Bench comprising Justice S....
GST | No Inherent Lack Of Jurisdiction, Adjudication Proceedings May Not Be Interjected In Extraordinary Writ Jurisdiction: Allahabad High Court
The Allahabad High Court has held the allegations of violations of law cannot be dealt with in extraordinary jurisdiction of the Court under Article 226 of the Constitution of India unless inherent lack of jurisdiction is claimed.The bench comprising of Justices Saumitra Dayal Singh and Surendra Singh-I held “Once allegations of infraction of law arise, adjudication proceedings may not...
Service Tax Not Leviable On Freight Brokerage: CESTAT
The Chennai Bench of Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has held that service tax is not leviable on freight brokerage.The bench of Sulekha Beevi C.S. (Judicial Member) and Vasa Seshagiri Rao (Technical Member) observed that the demand is raised on the markup made, which is the profit out of the difference in the value of ocean freight collected by the shipping line...
Tax Cases Monthly Round Up: October 2023
Direct Taxes Supreme Court U.P. Trade Tax Act | ‘Tinted Glass’ To Be Taxed As “Goods Or Wares Made Of Glass”, As it is Different from ‘Plain Glass’: Supreme Court Case Title: M/S Triveni Glass Limited v COMMISSIONER OF TRADE TAX, U.P. Case No.: 2023 LiveLaw (SC) 896 The Supreme Court has held that ‘Tinted Glass Sheet’ is different from ‘Plain...
Electricity Charges Received By Malls, Airport Operators Etc. From Lessees Bundled With Renting, Forms Composite Supply: CBIC
The Central Board of Indirect Taxes and Customs (CBIC) has clarified that whenever electricity is being supplied bundled with renting of immovable property and/or maintenance of premises it forms a part of the composite supply and shall be taxed accordingly.The Board has issued the clarification in respect of the recommendations of the GST Council in its 52nd meeting held on October 7, 2023,...
GST Exemption On Pure Services And Composite Supplies By Way Of Horticulture/Horticulture Works Made To CPWD: CBIC
The Central Board of Indirect Taxes and Customs (CBIC) has clarified that supply of pure services and composite supplies by way of horticulture/horticulture works (where the value of goods constitutes not more than 25 per cent of the total value of supply) made to Central Public Works Department (CPWD) are eligible for exemption from GST.Public parks in government residential colonies,...
DMFT Set Up By The State Governments Are Governmental Authorities, Eligible For GST Exemptions: CBIC
The Central Board of Indirect Taxes and Customs (CBIC) has clarified that District Mineral Foundations Trusts (DMFTs) set up by the state governments are eligible for GST exemptions.DMFTs work for the interest and benefit of persons and areas affected by mining-related operations by regulating receipt and expenditure from the respective Mineral Development Funds created in the concerned...
5% GST Applicable On Job Work For Processing Of “Barley” Into “Malted Barley”: CBIC
The Central Board of Indirect Taxes and Customs (CBIC) has clarified that 5% GST is applicable on job work for processing of “barley” into “malted barley”.The Board has issued the clarification in respect of the recommendations of the GST Council in its 52nd meeting held on October 7, 2023, in New Delhi with reference to the GST levy.The issue raised was whether job work for...
Passenger Transportation And Renting Of Motor Vehicle With Operator Attracts Same GST Rate Or Compensation Cess As Supply Of Motor Vehicles By Way Of Sale: CBIC
The Central Board of Indirect Taxes and Customs (CBIC) has clarified that input services in the same line of business include transport of passengers (SAC 9964), renting of motor vehicles with operators (SAC 9966), and not leasing of motor vehicles without operators (SAC 9973), which attracts GST and/or compensation cess at the same rate as supply of motor vehicles by way of sale.The Board...
Penalty Is Payable On Failure To Deposit Tax Collected Within A Period Of Thirty Days From The Due Date: Kerala High Court
The Kerala High Court has held that the penalty is payable on failure to deposit the tax collected by him within a period of thirty days from the due date of the payment of the tax.The bench of Justice Dinesh Kumar Singh observed that in Sub-sections 6, 8, and 9 of Section 73 of the GST Act, 2017, it is provided that if a person chargeable to tax fails to deposit the tax collected by him within...
GST Appellate Tribunal Constituted But Not Functional: Gujarat High Court Stays Recovery Of Dues
The Gujarat High Court has stayed the order for recovery of dues on the grounds that, though the GST Appellate Tribunal was constituted, it was not functional.The bench of Justice Biren Vaishnav and Justice Mauna M. Bhatt has observed that though the Tribunal is constituted, it is still not functioning, and the competent authorities think it fit to issue orders of recovery, asking the...
System Default Is The Standard Excuse Of Department When It Comes To Giving Refunds: Bombay High Court
The Bombay High Court has stated that system default is the standard excuse of the department when it comes to giving refunds.The bench of Justice K. R. Shriram and Justice Neela Gokhale has observed that the excuse used is that the system under the control of the Centralized Processing Center (CPC), Bangalore, has some issues and, therefore, amounts are not being released to assessees....