GST | Circular Does Not Override Statutory Provisions: Allahabad High Court Quashes Demand Of Rs. 235 Crores Against Vivo Mobile

The Allahabad High Court has quashed demand of Rs. 235.52 Crores raised against Vivo Mobile India Private Limited by GST Authorities vide order under Section 74(9) of the Goods and Service Tax Act 2017.The bench comprising of Justices Saumitra Dayal Singh and Vinod Diwakar while granting relief to Vivo Mobile held that Input Tax Credit is a substantive right granted to the assesee under...

DPPIT Recognized Start-Ups Not to Face Verification On Account Of Angel Taxation: CBDT

The Central Board of Direct Taxes (CBDT) has notified that the Department for Promotion of Industry and Internal Trade (DPIIT) recognized start-ups will not face verification on account of angel taxation.When an unlisted company sells shares to a buyer for more than their fair market worth, angel tax, which is income tax at a rate of 30.6%, is assessed. It used to be restricted to...

Tax Cases Weekly Round-Up: 8 To 14 October, 2023

Supreme Court Customs Duty - Undervaluation Must Be Proved By Evidence Of Prices Of Contemporaneous Imports; Else Benefit Of Doubt Goes To Importer : Supreme Court Case Title: Commissioner of Customs (Imports), Mumbai v. M/s Ganpati Overseas Citation : 2023 LiveLaw (SC) 864 The Supreme Court has recently highlighted that the transaction value (the price actually paid...

Services Provided to IIT & NIT Exempt From Service Tax: Supreme Court Holds After Interpreting 'Or' & Semicolon In Exemption Notification

In an interesting judgment, the Supreme Court held that the Indian Institute of Technology and the National Institute of Technology will come under the Mega Service Tax Exemption Notification issued by the Department of Revenue in 2012(and amended and clarified by a subsequent notification issued in 2014).The issue in the case related to the service tax liability of M/s Shapoorji Pallonji...

CENVAT Credit Availed On ‘Banking And Financial Services’ Used In Providing Renting Of Immovable Property Service Is Admissible: CESTAT

The Banglore Bench of Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has held that CENVAT credit availed on ‘banking and financial services’ used in providing renting of immovable property is admissible.The bench of D. M. Misra (Judicial Member) has relied on the decision of the Karnataka High Court in the case of Oberon Edifices & Estates Pvt. Ltd. vs. CC CE & ST,...

Pollution Control Services Of Factory Are Input Services, Eligible For Cenvat Credit: CESTAT

The Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has held that services that are in relation to pollution control in the factory are input services in terms of Rule 2(l) of the Cenvat Credit Rules, 2004 and hence are eligible for Cenvat credit.The bench of Ramesh Nair (Judicial Member) and C.L. Mahar (Technical Member) has observed that services related to pollution control...

Recipient Of GTA Services Not Liable To Pay Service Tax Which Was Already Paid By Transport Agency: CESTAT

The Ahmedabad Bench of Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has held that recipients of goods transport agency (GTA) services are not liable to pay service tax that was already paid by the transport agency.The bench of Ramesh Nair (Judicial Member) and Raju (Technical Member) has observed that once the service provider discharges the service tax where the service...

Travelling Expenses Incurred By Directors For Business Purposes And Not Personal, Delhi High Court Allows Travel Expenses

The Delhi High Court has held that the travelling expenses were incurred by the directors for business purposes of the company.The bench of Justice Rajiv Shakdher and Justice Girish Kathpalia noted that there was no information brought on record by the AO that could prove that these expenses were of a personal nature; therefore, the assessing officer was not justified in disallowing the...

Wrong Collection Of TCS On Purchase Of Coal For Generation Of Power: Jharkhand High Court Directs Refund

The Jharkhand High Court has directed the Tax Collected as Source (TCS) refund wrongfully collected despite verifying purchase of coal was used for the generation of power.The bench of Justice Rongon Mukhopadhyay and Justice Deepak Roshan has observed that the root cause lies in the illegality committed by the Revenue in compelling Central Coalfields Limited (CCL) in effecting TCS qua...

Active Involvement In Customs Duty Evasion: Delhi High Court Dismisses Plea Seekings Directions For Pre-Deposit Waiver

The Delhi High Court, while dismissing the petition seeking directions for waiver of the pre-deposit requirement as placed in terms of Section 129E of the Customs Act, 1962, noted that the case of the petitioner does not fall under the category of rare and exceptional cases.The bench of Justice Yashwant Varma and Justice Dharmesh Sharma has observed that the petitioner was complicit and...

Return Not Filed Within Time Due To Unavoidable Circumstances: Allahabad High Court Directs Restoration Of GST Registration

The Allahabad High Court has directed restoration of GST registration of a firm as return could not be filed in time due to unavoidable circumstances. The Court noted that mother and sister of the petitioner died of prolonged illness, due to which petitioner suffered both mentally and financially, which were unavoidable circumstances.Petitioner was registered under Goods and Service Tax...

Allahabad High Court Sets Aside Non-Speaking Order Cancelling GST Registration, Says Reason Is 'Heart Beat' Of Every Conclusion

The Allahabad High Court has held that any order devoid of reasons will become lifeless as reasons are the heartbeat of every order.“Reason is the heart beat of every conclusion. In the absence of reasons the order becomes lifeless. Non recording of reasons renders the order to be violative of principles of natural justice. Reasons ensures transparency and fairness in decision making....