Tax
ITAT Imposes Cost On Assessee For Being Delinquent And Lethargic In Pursuing The case Before The Authorities
The Mumbai Bench of the Income Tax Appellate Tribunal (ITAT) has imposed a fine of Rs. 2000 for being delinquent and lethargic in pursuing the matter before the tax authorities."Since the assessee has not appeared before any of the tax authorities below, in the interest of justice, we are of the view that the assessee may be provided with an opportunity to present his case properly before the...
Excise Duty To Be Demanded From Job Worker, Not From Principal Manufacturer, When Transaction Is On Principal To Principal Basis: CESTAT
The Delhi Bench of the Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has held that there has to be excise duty demanded from the job worker and not from the principal manufacturer when transactions between the two are on a principal-to-principal basis.The bench of Anil Choudhary (Judicial Member) and Hemambika R. Priya, (Technical Member) remanded the matter to the...
CESTAT Allows Interest On Auction Sale Proceeds From The Date The Amount Has Been Received By The Customs Dept., Till The Date Of Disbursal
The Delhi Bench of the Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has allowed interest on the auction sale proceeds from the date the amount was received by the Customs Department until the date of disbursal.The Bench of Anil Choudhary, (Judicial Member), has observed that the department shall disburse the number of sale proceeds pursuant to auction sales by only adjusting...
No GST On The Difference Between Purchasing, Selling Price Of Second Hand Gold Jewellery: AAR
The Karnataka Authority of Advance Ruling (AAR) has ruled that purchasing second-hand gold in the form of jewellery and parts of jewellery from unregistered individuals and selling it to registered or unregistered dealers after melting it in the form of lumps of gold cannot be subject to GST on the margin difference between the sale price and purchase price as stipulated in Rule 32(5) of the...
TDS Will Not Be Attracted On Interest Below Rs. 40,000 Earned From Mahila Samman Certificate: CBDT
The Central Board of Direct Taxes (CBDT) has notified that TDS will not be attracted on interest below Rs. 40,000 earned from Mahila Samman Certificate.“In exercise of the powers conferred by sub-clause (c) of clause (i) of sub-section (3) of section 194A of the Income-tax Act, 1961 (43 of 1961), the Central Government hereby notifies that the Scheme namely the Mahila Samman...
ITAT Deletes Income Tax Addition Towards ESOP
The Mumbai Bench of the Income Tax Appellate Tribunal (ITAT) has deleted the income tax addition towards ESOP.The bench of Amit Shukla (Judicial Member) and Padmavathy S. (Accountant Member) has observed that ESOP expenses are capital in nature.The appellant/assessee company is engaged in the manufacturing of branded FMCG products, namely foods and beverages and home and personal care...
Agricultural Operations Cannot Be Dubbed As ‘Commercial Activity’ Merely For Commercially Selling Hybrid Seeds And Open Pollinated Seed Varieties: ITAT
The Hyderabad Bench of the Income Tax Appellate Tribunal (ITAT) has held that when agricultural activity is conducted and seeds are produced, merely because the seeds were sold commercially, the basic agricultural operations also cannot be dubbed "commercial activities" and not ‘agricultural activities’.The bench of K. Narasimha Chary (Judicial Member) and Rama Kanta Panda (Accountant...
No Service Tax Payable On Education Services By Way Of Pre-School Education And Education Up To Higher Secondary School: CESTAT
The Delhi Bench of the Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has held that service tax is not payable on education services by way of preschool education and education up to higher secondary school.The bench of Justice Dilip Gupta (President) and Hemambika R. Priya (Technical Member) has observed that the hostel service and education services are naturally bundled in...
Online Rummy Games Played Are Not Taxable As ‘Betting’ And ‘Gambling: Karnataka High Court Quashes GST Intimation Notice Demanding Rs. 21,000 Crores Against Gameskraft
The Karnataka High Court has quashed the GST Intimation Notice to the tune of Rs 21,000 crore and held that online/electronic/digital Rummy games and other Online/Electronic/Digital games played on Gameskraft’s platforms are not taxable as "betting" and "gambling".The bench of Justice S.R. Krishna Kumar has observed that online, electronic, and digital games, which are also substantially...
Credit Note Issued By Automobile Manufacturer To Dealer, In Consideration Of Replacement Of Defective Part, Attracts Sales Tax: Supreme Court
The Supreme Court has ruled that a credit note issued by an automobile manufacturer to a dealer of automobiles, in consideration of the replacement of a defective part done by the dealer pursuant to a warranty agreement, is exigible to sales tax.The court has held that when a dealer replaces a defective part of the automobile by a spare part maintained in its stock or when the same is...
Department Should Not Have Invoked The Extended Time Period For Issuance Of Second Show Cause Notice Demanding Service Tax: CESTAT
The Ahmedabad Bench of the Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has held that the second show cause notice should have been for a normal period of demand and the department should not have invoked the extended time period for demanding service tax.The bench of C.L. Mahar (technical member) has observed that a show cause notice has been issued on March 20, 2009,...
Penal Provision Of Central Excise Rules, 1944 Cannot Be Invoked Against The Accountant: CESTAT
The Ahmedabad Bench of the Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has held that the penal provision of Rule 209 A of the Central Excise Rules, 1944, cannot be invoked against a person who is only involved in maintaining the accounts of the company.The bench of C.L. Mahar (technical member) has observed that as per Rule 209 A, the person who is to be penalized under...