Tax
Staff Reimbursement, Training, And Hospital Management In Joint Venture Not Taxable Under Service Tax: CESTAT Chennai
The Chennai Bench of Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has stated that staff reimbursement, training, and hospital management in a joint venture are not taxable under the service tax. P. Dinesha (Judicial Member) and Vasa Seshagiri Rao (Technical Member) stated that the receipts characterised as “royalty”/“management fee” are integrally connected...
Income Tax Act | Long Term Capital Gain On Shares Cannot Be Branded Bogus Without Evidence: ITAT Mumbai
The Income Tax Appellate Tribunal (ITAT), Mumbai has held that long-term capital gains (LTCG) arising from the sale of listed shares cannot be treated as unexplained cash credit under Section 68 of the Income Tax Act, 1961 merely on the basis of general allegations of penny-stock manipulation, when the assessee has supported the transactions with complete documentary evidence. A...
Revenue-Sharing With Diagnostic Labs Not 'Business Support Service': CESTAT Sets Aside Service Tax Demand
The Customs, Excise and Service Tax Appellate Tribunal (CESTAT), Chandigarh has held that revenue-sharing arrangements between a hospital and diagnostic service providers (DSPs) do not amount to provision of “Business Support Service” (BSS) under the Finance Act, 1994, and are therefore not liable to service tax. A Division Bench comprising Justice S.S. Garg (Judicial Member) and...
Zinc EDTA Is Fertiliser, Not A Chemical; Lower Customs Duty Applicable: CESTAT Chennai
The Chennai Bench of Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has stated that Zinc EDTA is classifiable as a fertiliser under Customs Tariff Item (CTI) 3105 9090, and not a chemical salt under CTI 29224990 as stated by the revenue.Ajayan T.V. (Judicial Member) and Ajit Kumar (Technical Member) noted that Zinc EDTA contains Nitrogen, which is an essential...
Service Tax Not Payable On Royalty Received For Group Companies' Use Of Copyrighted Logo: CESTAT
The Chennai Bench of Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has stated that service tax is not payable on royalty received for group companies' use of the copyrighted 'TTK' Logo founded by T.T. Krishnamachari & Co. (assessee). Ajayan T.V. (Judicial Member) and Ajit Kumar (Technical Member) examined whether the demand of service for the 'TTK' logo of the...
Mere Paper Trail Or Endorsed Bills Of Entry Without Actual Movement Of Goods Not Enough To Claim CENVAT Credit: CESTAT Chennai
The Chennai Bench of Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has stated that mere paper trail or endorsed bills of entry without actual movement of goods is not enough to claim CENVAT (Central Value Added Tax) Credit. Vasa Seshagiri Rao (Technical Member) opined that mere creation of paperwork or paper trail to indicate movement of goods, or mere...
Service Tax Refund Cannot Be Denied On Limitation When Deposit Was Made During Investigation: Chhattisgarh High Court
The Chhattisgarh High Court has held that service tax deposited during the course of investigation cannot be denied refund merely on the ground of limitation under Section 102(3) of the Finance Act, 1994, especially when the department itself later drops proceedings and acknowledges non-liability. The Division Bench of Justice Rajani Dubey and Justice Amitendra Kishore Prasad...
Internal Dispute Among Directors Of Company Not 'Genuine Hardship' Preventing Timely Filing Of ITR: Delhi High Court
The Delhi High Court has held that internal disputes between the Directors of a company is not 'genuine hardship' under Section 119(2)(b) of the Income Tax Act 1961, preventing timely filing of its Income Tax Return, particularly in absence of convincing evidence.A division bench of Justices V. Kameswar Rao and Madhu Jain observed,“The internal dispute among the Directors of the company is...
Logistics Operator Can Charge GST At 5% For Transporting Empty Containers By Rail, ITC Inadmissible: Gujarat AAR
The Gujarat Authority for Advance Ruling (AAR) has held that GST at 5% was applicable for transportation of empty containers by rail, but without Input Tax Credit (ITC) and same would be covered by general entry (i) at Serial No. 09 viz. Transport of goods by rail (other than services specified at item no. (iv)). The Gujarat AAR comprising Mr. Vishal Malani (Member- Central Tax) and...
LiveLawBiz: Business Law Daily Round-Up: December 08, 2025
TAX Revenue Cannot Adjudicate Decade-Old SCNs On NPV Sales Tax Retention: Bombay High Court KeralaHigh Court Upholds Over ₹15 Lakh Motor Vehicle Tax Demand OnPuducherry-Registered Car Found Used In Kerala Customs| Bills Of Entry Cannot Be Reassessed After Clearance Merely To Claim Refund Based On Later SC Judgment: CESTAT Mumbai Sales Tax Discharged Through NPV Under State Incentive Scheme...
Revenue Cannot Adjudicate Decade-Old SCNs On NPV Sales Tax Retention: Bombay High Court
The Bombay High Court at Goa has set aside two show cause notices issued to a manufacturer seeking to levy central excise duty on the differential amount of sales tax/VAT retained by it under a Net Present Value (NPV) incentive scheme, holding that the Revenue cannot be permitted to adjudicate stale notices after an unexplained and inordinate delay. A Division Bench of Justice...
Kerala High Court Upholds Over ₹15 Lakh Motor Vehicle Tax Demand On Puducherry-Registered Car Found Used In Kerala
The Kerala High Court upheld the motor vehicle tax demand on a car registered in Puducherry after finding no evidence that it was actually used there. Justices A. Muhamed Mustaque and Harisankar V. Menon noted that the NIL returns do not reflect any business being carried out by the assessee from Puducherry. The bench opined that the onus shifts to the assessee to show that...