Tax
Central Excise Act - To Be "Related Person", Buyer & Seller Must Have Direct Or Indirect Interest In Each Other’s Business : Supreme Court
The Supreme Court while ascertaining who is the “Related Party” under the Central Excise Act for the purpose of valuation held that before the clause in Section 4(4)(c) could be used, the buyer and seller had to be interested in one another's businesses. Since two-way traffic is required, there shouldn't be any one-way traffic.The division bench of Justice S. Ravindra Bhat and...
AO Has Reduced The Procedure To An Empty Formality, To Be Deprecated: Calcutta High Court
The Calcutta High Court had quashed the Assessment Order and held that the assessing officer has reduced the procedure to an empty formality, which has to be deprecated.The division bench of Justice T.S. Sivagnanam and Justice Hiranmay Bhattacharyya has observed that the first 21 pages of the assessment order are a verbatim extract of the show cause notice. On pages nos.22 and 23 in...
DGFT Has No Authority To Violate The Foreign Trade Policy, Power Lies Only With Central Govt: Karnataka High court
The Karnataka High Court has held that only the Central Government can make provision for prohibiting, restricting, or regulating the import or export of goods or services, or technology and not the Director General of Foreign Trade (DGFT).The single bench of Justice S.R. Krishna Kumar has observed that only the Central Government can formulate and announce the Foreign Trade Policy...
Errors Committed Are Inadvertent, Rectification Would Enable Proper Reporting Of The Turnover And ITC: Madras High Court
The Madras High Court has held that errors committed are inadvertent and, the rectification would, in fact, enable proper reporting of the turnover and input tax credit (ITC) to enable claims to be made in an appropriate fashion by the assessees.The single bench of Justice Anita Sumanth has observed that the petitioners must be permitted the benefit of rectification of errors where there are...
Assessee Became Victim Of Lacuna In SVLDR Scheme Software: Bombay High Court Quashes Rejection Of Declaration
The Bombay High Court has quashed and set aside the rejection of the Petitioner’s declaration for SVLDRS-1.The division bench of Justice Nitin Jamdar and Justice Abhay Ahuja has observed that the petitioner/assessee was a victim of the lacuna in the software governing the Sabka Vishwas (Legacy Dispute Resolution) (SVLDR) Scheme, 2019 where the Petitioner could not have selected the option...
Income Tax Act - Date Of Panchnama Last Drawn Starting Point Of Limitation For Completing Block Assessment Proceedings: Supreme Court
The Supreme Court has held that the date on which the Panchnama was last drawn is the starting point of the two-year limitation for completing the block assessment proceedings under the Income Tax Act 1961.The division bench of Justice M.R. Shah and Justice C.T. Ravikumar has upheld the order of the Delhi High Court in which it was held that the date of the Panchnama last drawn would be...
Supply Of The Aircraft Type Rating Training Is Exigible To GST: AAR
The Karnataka Authority for Advance Ruling (AAR) has held that the supply of aircraft-type rating training is eligible for GST.The two-member bench of M.P. Ravi Prasad and Kiran T. Reddy has observed that the supply of aircraft type rating training services to commercial pilots, in accordance with the training curriculum approved by the Directorate General of Civil Aviation for obtaining...
Transaction Of Transfer/Sale Of One Of The Independent Running Business Divisions Attracts 18% GST: AAR
The Karnataka Authority for Advance Ruling (AAR) has held that the transfer or sale of one of the independently running business divisions attracts 18% GST.The two-member bench of M.P. Ravi Prasad and Kiran T. Reddy has observed that the transaction of transfer or sale of one of the independent running business divisions as a whole, along with all the assets and liabilities of the...
VAT Act, Madhya Pradesh High Court Directs Dept. To Refund Pre-Deposit With 6% Interest
The Madhya Pradesh High Court has directed the state/commercial tax department to refund the pre-deposit amount paid during the appeal with 6% interest to the assessee.The division bench of Justice Sushrut Arvind Dharmadhikari and Justice Prakash Chandra Gupta has observed that even though there is no provision for payment of interest on the refund of amounts so collected under the VAT Act,...
Supply Of Goods To The Overseas Customer Is Neither A Supply Of Goods Nor A Supply Of Services: Karnataka AAR
The Karnataka Authority for Advance Ruling (AAR) has ruled that the supply of goods to an overseas customer is treated neither as a supply of goods nor as a supply of services.The two-member bench of M.P. Ravi Prasad and Kiran T. Reddy has observed that there are two transactions involving the applicant. The first transaction is the supply of goods by the manufacturer to the applicant, and...
Tax Cases Weekly Round-Up: 19 March To 25 March 2023
Supreme Court Only Retail Sale Can Claim Assessment Benefits Under Section 4A Of Central Excise Act : Supreme Court Case Title: Commissioner Of Central Excise & Service Versus M/S. A.R. Polymers Pvt. Ltd. Etc. Citation: 2023 LiveLaw (SC) 223 The Supreme Court has held that mere affixation of MRP does not make goods eligible for central excise duty exemption, and what...
DGFT Allows Import Of Urea Through India Potash Till March 2024
The Director General Of Foreign Trade (DGFT) has notified the amendment in the import policy of urea which allowed the import of urea through India Potash Limited (IPL) till March 2024.As per the existing import policy the import of Urea is also allowed through IPL for a period up to March 31, 2023.Now, as per the revised policy import of Urea is allowed through IPL for a period up to March...