KVAT Act | Dealer Claiming Input Tax Credit Must Prove Transaction Beyond Reasonable Doubt : Supreme Court

The Supreme Court has held that under Section 70 of the Karnataka Value Added Tax Act, 2003, a dealer claiming Input Tax Credit on purchase ought to prove and establish actual physical movement of goods and genuineness of transaction. It noted that in order to establish the same, the dealer should furnish the name and address of the selling dealer, details of the vehicle which has delivered...

Reassessment Notice Issued By The AO Merely On The Basis Of Change Of Opinion: Bombay High Court Quashes Order

The Bombay High Court has quashed the reassessment order on the grounds that the only reason for issuing the notice under Section 148 of the Income Tax Act appeared to be that the Assessing Officer had come to a different opinion on the question of valuation than the one adopted by the petitioner.The division bench of Justice Dheeraj Singh Thakur and Justice Valmiki SA Menezes has observed...

GST Under Reverse Charge Mechanism Is Applicable On Services Of Renting Residential Premises as Guest House: AAR

The Odisha Authority of Advance Ruling has held that GST under the reverse charge mechanism is applicable to services by way of taking residential premises on rent for use as its guest house.The two-member bench of Gopal Krishna Pati and P.K. Mohanty has observed that the nature of rented properties clearly appeared to be residential properties used for commercial purposes.The applicant has...

No Disallowance Shall Be Made With Respect To Chargeable Sum Paid To A Foreign Company Without Deduction Of Tax: ITAT.

The Delhi Bench of Income Tax Appellate Tribunal has held that no disallowance shall be made to the assessee in regards to the chargeable sum paid by the assessee to a foreign company without deduction of tax. The division bench of N.K. Billaiya (Accountant Member) and Yogesh Kumar (Judicial Member) held that the second proviso to clause (i) of S. 40 of the Income Tax Act (IT)...

Imported Coal Does Not Attract Customs Education Cess And Higher Education Cess: CESTAT

The Chennai Bench of the Customs, Excise and Service Tax Appellate Tribunal (CESTAT) has held that imported coal would not attract the Customs Education Cess and the Higher Education Cess.The two-member bench of Sulekha Beevi C.S. (Judicial Member) and Vasa Sheshagiri Rao (Technical Member) has observed that the adjudicating court erred by including the clean energy cess component with...

Builder/Developer/Promoter Not Liable To Pay Service Tax On Construction Of Complex Service Or Works Contract Prior To July 2010: CESTAT

The Chennai Bench of Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has held that no liability for paying tax under ‘construction of complex service’ or ‘works contract’ would lie on the builder, developer, or promoter during the period prior to July 2010.The two-member bench of P. Dinesha (Judicial Member) and M. Ajit Kumar (Technical Member) has observed that it was...

CESTAT Allows Cenvat Credit On Service Tax Paid By Automotive Dealers

The Mumbai Bench of the Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has allowed the cenvat credit on service tax paid by automotive dealers.The two-member bench of S. K. Mohanty Member (Judicial Member) and C.J. Mathew (Technical Member) has relied on the Supreme Court's decision in the case of CCE & C versus MDS Switchgear Ltd., in which it was held that once the...

Tax Cases Weekly Round-Up: 5 March to 11 March 2023

Delhi High Court Issuance Of SCN in Customs Brokers Licensing Regulations, Contemplates Dispatch Of Notice And Not Its Receipt: Delhi High Court Case Title: Commissioner of Customs (Airport & General) vs M/s R.P. Cargo Handling Services The Delhi High Court has ruled that the expression ‘issuance of show cause notice’ in Regulation 20(1) of the Customs...

Applications For Refund Of ITC Cannot Be Denied On Mere Suspicion: Delhi High Court

The Delhi High Court has held that applications for refund of Input Tax Credit (ITC) cannot be rejected merely on suspicion and without any cogent material. The division bench of Justice Vibhu Bakhru and Justice Amit Mahajan directed the department to initiate a refund of ITC of Rs. 72,03,961/-based on the goods that the petitioner has exported. In this case, the petitioner filed...

Bombay High Court Quashes Reassessment Proceedings Against Jetair

The Bombay High Court has quashed the reassessment proceedings against Jetair Pvt Ltd, a group entity of Jet Airways (India) Ltd, and has set aside the notice issued by the revenue department under Section 148 of Income Tax Act, 1961 against Jetair, seeking to reopen assessment for the relevant assessment year. The bench of Justices Dhiraj Singh Thakur and Kamal Khata rejected...

Body Cam Jackets For Customs Boarding Officers: CBIC Emphasis On The Need For Transparency

A circular from the Central Board of Indirect Taxes and Customs (CBIC) outlines how to increase transparency by using boarding jackets equipped with body-worn cameras (BWCs) that can record video and audio for use by the boarding officer.Every ship that enters the country notifies the Customs and Port Authorities of its arrival. Boarding officers are typically the first members of the...

The Amount Which Is Lower Of Unabsorbed Depreciation And Business Loss Will Be Set-Off Against Book Profits: ITAT

The Delhi Bench of Income Tax Appellate Tribunal has clarified the provisions of clause (iii) of Explanation-1 to Section 115JB (2) for computation of book profits for taxation. The Tribunal held that amount which is lower between unabsorbed depreciation and business loss deserves to be set off against the current Assessment Year (A.Y.) book profits in terms of the provisions of Income...