Tax
Taxation Classification | Specific Provision Will Prevail Over General Provision In A Statute : Supreme Court In ‘Maize Starch’ Case
The Supreme Court has ruled that if in any statutory rule or statutory notification, two expressions are used - one in general words and the other in special terms – then, as per the rules of interpretation, the special terms are not meant to be included in the general expression. Alternatively, the court said that where a statute contains both a general provision as well as a...
Charges Of Clandestine Removal Not Sustainable Merely On The Basis Of Difference In Figures Of Audit Report And ER-1 Return: CESTAT
The Kolkata Bench of the Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has held that charges of clandestine removal are not sustainable merely on the basis of the difference in figures between the audit report and the ER-1 return.The bench of Ashok Jindal (Judicial Member) and K. Anpazhakan (Technical Member) has observed that merely on the basis of the difference in the figures...
Bombay High Court Allows IGST Refund On Zero Rated Supply Along With 7% Interest
The Bombay High Court has allowed the refund of IGST on zero-rated supply along with 7% interest.The bench of Justice G.S. Kulkarni and Justice Jitendra Jain has observed that the petitioner was entitled to a refund of the IGST paid on the exports in question, as it is certain that this is not a case where the petitioner is availing of any double benefit, that is, the IGST refund and a...
Priority Of The Secured Creditor Over Govt. Dues Under SARFAESI Act, 2002: Bombay High Court
The Bombay High Court held that priority belongs to the secured creditor in respect of the dues of the Central government, state government, or local authority under Section 26-E of the SARFAESI Act, 2002.The bench of Justice B. P. Colabawalla and Justice M.M. Sathaye has observed that the statute goes quite far, and it is not only revenues, taxes, cesses, and other rates payable to the...
Consideration Received By Colgate Palmolive Malaysia From It’s Indian Entity For Providing Access To SAP System Is Not Royalty, Not Taxable : Bombay High Court
The Bombay High Court has held that consideration received by assessee Colgate Palmolive's Malaysian arm from its Indian entity for providing access to System Analysis Program Development (SAP) system is not taxable as royalty.The bench of Justice K.R.Shriram and Justice Firdosh P. Pooniwalla has observed that the payment of USD 11,80,500 made by Colgate Palmolive (India) Limited (CPI) to...
Income-Tax Dept. Cannot Ignore The Valid TRC Issued By The Govt.: Bombay High Court Allows DTAA-Benefits To Alibaba Singapore
The Bombay High Court has granted the benefit of the India-Singapore Double Tax Avoidance Agreement (DTAA) to the e-commerce platform Alibaba Singapore.The bench of Justice K.R. Shriram and Justice Firdosh P. Pooniwalla upheld the order of the ITAT that if the Revenue was so convinced that the assessee’s activity in India with various subscribers was carried out by Alibaba Hong Kong, then...
CTO For Enhanced Production Capacity Issued After SC’s Order Fixing Total Import Limit; Importer Not Entitled To Proportionate Increase In Import Quota: Supreme Court
The Supreme Court has upheld the decision of the Delhi High Court which set aside the increased quota allocated for import of raw pet-coke (RPC) based on the “Consent to Operate” (CTO) issued to the importer for an enhanced production capacity, after the top court’s order dated 09.10.2018. The bench of Justices S. Ravindra Bhat and Dipankar Datta remarked that the Andhra Pradesh...
Purchase And Sale Of Liquor By The Corporation Will Not Fall Within The Ambit Of BAS And Is Not Taxable: CESTAT
The Delhi Bench of the Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has held that the corporation will not fall within the ambit of Business auxiliary services (BAS) and would, therefore, not be taxable.The bench of Justice Dilip Gupta (President) and Hemambika R. Priya (Technical Member) has observed that if the Corporation was engaged in the sale and purchase of liquor for...
Excavation And Raising Of Ore Classifiable Under “Business Auxiliary Service” And Not Under “Mining Service”: CESTAT
The Delhi Bench of the Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has held that excavation and raising of ore are classifiable under "business auxiliary service" and not under "mining service".The bench of Justice Dilip Gupta (President) and Hemambika R. Priya (Technical Member) has observed that where there is excavation or raising of ore, the same would not be...
Bombay High Court Quashes Reassessment Proceedings Initiated To Tax 'Share Premium' Of Rs. 679.32 Crores
The Bombay High Court has quashed the reassessment proceedings initiated to recover the tax share premium of Rs. 679 crores.The bench of Justice Dhiraj Singh Thakur and Justice Kamal Khata has observed that the AO had only lagged the share premium amount of Rs.679.32 crores, which according to him was chargeable to tax that had escaped assessment, and did not question the amount of Rs.68...
No Tax Can Be Levied On The Principle Of Estoppels: ITAT
The Delhi Bench of the Income Tax Appellate Tribunal (ITAT) has held that no tax can be levied on the principle of estoppel. Just because the Assessee has shown the receipt or income in the wrong head does not make him liable for tax.The bench of N. K. Choudhry (Judicial Member) has observed that management licence fees are taxable under the heading "Income from Business" and not "Income...
Once The Export Obligation Is Discharged, Customs Dept. Could Not Initiate Proceedings Against Assessee: Punjab & Haryana High Court
The Punjab and Haryana High Court has held that once the export obligation is discharged, the customs department cannot initiate proceedings against the assessee.The bench of Justice Ritu Behari and Justice Manisha Batra observed that 50 MT of Coco Butter was lost during transit from the port to the factory, and this information was given to the department. But the lost quantity had been...