Cricket Player Providing Brand Promotion Services Not Liable To Pay Service Tax: CESTAT

The Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has quashed the demand for service tax on remuneration received by the cricket player from M/s. Nike India Pvt. for brand promotion.The bench of Ramesh Nair (judicial member) and C. L. Mahar (technical member) relied on the decision of the Calcutta High Court in the case of Sourav Ganguly vs. UOI & Others, in which it was...

Freight And Handling Charges Shown Separately In The Invoice Is Not Includable In The Assessable Value Of The Excisable Goods: CESTAT

The Ahmedabad bench of the Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has held that freight and handling charges shown separately in the invoice of the appellant are also not includable in the assessable value of the excisable goods.The two-member bench of Ramesh Nair Member (Judicial) and Raju Member (Technical) has observed that the amount charged as freight and...

Rajasthan High Court Upholds GST Demand On Royalty Paid To The Mining Department Towards Mining Lease

The Rajasthan High Court has upheld the GST demand on royalty paid to the Mining Department towards mining lease.The Bench of Justice Vijay Bishnoi and Justice Praveer Bhatnagar has relied on the decision of the Rajasthan High Court, Jaipur Bench in the case of Sudershan Lal Gupta & Ors. versus Union of India & Ors. in which a batch of writ petitions were dismissed challenging the...

ITAT Disallows Income Tax Deduction On Employees’ Contribution To PF & ESI Beyond The Due Dates

The Mumbai Bench of the Income Tax Appellate Tribunal (ITAT) has disallowed income tax deduction on employees’ contributions to PF and ESI beyond the due dates.The bench of Amit Shukla (Judicial Member) and Prashant Maharishi (Accountant Member) has observed that the auditor in the audited accounts only pointed out the date of payment and the due date prescribed under the PF and ESI Act, and...

Procedural Lapse Cannot Be The Basis To Deny Service Tax Refund, Defeating The Object Of SEZ: CESTAT

The Delhi Bench of the Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has held that the beneficial object of establishing the SEZ tax-free, without any burden of duties, means that the procedural lapse, if any, cannot be the basis to deny the refund.The bench of Binu Tamta (Judicial Member) and P. V. Subba Rao (Technical Member) has observed that the general principles...

Relevancy Of Assessment Year For Taxing Foreign Assets And Income Under The Black Money Act - A Legal Conundrum

While presenting the Union Budget in 2015, the then Finance Minister announced, that in order to evade taxes in India some people had stashed away their money outside India (which is commonly referred to as Black Money) and in order to curb this malaise a new legislation will be introduced to tackle the undisclosed assets and income of Indian citizens located outside India. To achieve this objective The Black Money (Undisclosed Foreign Income and Assets) and Imposition of Tax Act (BMA) was...

Mortein Spray, Harpic & Lizol Cleaner- Not Classifiable as ‘Insecticide’ Under KVAT; Dettol A 'Medicament': Supreme Court

The Supreme Court bench comprising Justices M. R. Shah and Krishna Murari has ruled that Mosquito Mats, Coils and Vaporizers, Mortein Insect Killers, Harpic Toilet Cleaner and Lizol Floor Cleaners, are not be classifiable under Entry 44(5) of the 3rd Schedule to the Kerala VAT Act (KVAT), 2003 as ‘insecticides’.While observing that Entry 44(5) of the 3rd Schedule to the Act is a...

Expenditure Made On Ice Boxes Are Capital Expenditure: ITAT Upholds Disallowance Against Hindustan Coca-Cola Beverages

The Delhi Bench of the Income Tax Appellate Tribunal (ITAT) has held that the expenditure made on ice chests or ice boxes was made for acquiring or bringing into existence an asset for the enduring benefit of the business and was of the nature of capital expenditure.The two-member bench of Anubhav Sharma (Judicial Member) and N.K. Billaiya (Accountant Member) has observed that if the...

ITAT Quashes Penalty Notice Which Was Silent On Specification Of Charges

The Delhi Bench of the Income Tax Appellate Tribunal (ITAT) has quashed the penalty notice, which was silent on the specification of charges.The bench of Astha Chandra (a judicial member) and Shamim Yahya (an accountant member) has observed that no specification of charge in the penalty notice leads to the same becoming void, and the penalty on that count is to be deleted.The penalty...

S. 80-IB Of Income Tax Act - Assessee Not Entitled To Deduction Under On Profit Derived From DEPB And Duty Drawback Schemes: Supreme Court

The Supreme Court has ruled that the assessee is not entitled to deduction under Section 80- IB of the Income Tax Act, 1961 on the amount received / profit derived from the Duty Entitlement Pass Book Scheme (DEPB) and the Duty Drawback Schemes.The bench of Justices M.R. Shah and B.V. Nagarathna held that the profit from DEPB and the Duty Drawback claims cannot be said to be an income...

CESTAT Allows CENVAT Credit Of Service Tax Paid On Corporate Membership Of Club

The Customs, Excise, and Service Tax Appellate Tribunal (CESTAT), Mumbai, has allowed the CENVAT credit of service tax paid on corporate memberships of clubs.The bench of Anil G. Shakkarwar (Technical) has observed that corporate membership of the club is utilized for business meetings and sales meetings, and therefore, for the period prior to April 1, 2011, service tax paid on...

Income Tax Exemption On The Voluntarily Payment Made By The Employer To The Employee Out Of Appreciation: ITAT

The Pune Bench of the Income Tax Appellate Tribunal (ITAT) has held that the payment has been made voluntarily by them out of appreciation for the employee and thus falls outside the rigours of Section 17(3)(iii) of the Income Tax Act.The two-member bench of R.S. Syal (Vice President) and Partha Sarathi Chaudhury (Judicial Member) has observed that the department could not produce any...