Tax
Service Tax Not Payable On The Amount Collected From The Member Units For Treatment Of Effluent Water: CESTAT
The Hyderabad Bench of the Customs, Excise and Service Tax Appellate Tribunal (CESTAT) has held that service tax is not payable on the remuneration collected from the member units for the activity of treating effluent water.The two-member bench of Sulekha Beevi C.S. (Judicial Member) and Vasa VASA Seshagiri Rao (Accountant Member) has observed that as per Notification No. 08/2017-S.T....
Chokad Is Not An Industrial Input: Orissa High Court Quashes Order Imposing 4% VAT
The Orissa High Court has quashed the order imposing a 4% value-added tax (VAT) on the wheat bran (chokad) as it is not an industrial input.The division bench of Chief Justice S. Muralidhar and Justice M. S. Raman has observed that it was necessary for the Department to show that there was a notification issued by the State Government identifying ‘Chokad’ as an ‘industrial input'. In...
Kinley Water Falls Within Water, Not Aerated Or Mineral Water, Comes Within Tax Free List: Orissa High Court
The Orissa High Court held that the sale of packaged drinking water under the brand name Kinley Water falls within the expression "water but not aerated or mineral water sold in bottles or sealed containers," which is covered under Entry No.39 of the Tax-Free List.The division bench of Chief Justice S. Murlidhar and Justice Murhari Sri Raman has observed that the packaged drinking water...
Issuance Of SCN in Customs Brokers Licensing Regulations, Contemplates Dispatch Of Notice And Not Its Receipt: Delhi High Court
The Delhi High Court has ruled that the expression ‘issuance of show cause notice’ in Regulation 20(1) of the Customs Brokers Licensing Regulations, 2013 (CBLR), merely contemplates the dispatch of the notice and not its receipt by the Customs Broker, within the stipulated period. The bench of Justices Vibhu Bakhru and Amit Mahajan observed that there is a distinction...
Payment Received From Foreign Company On Account Of Business Support Services Not Taxable As FTS: ITAT
The Delhi Bench of the Income Tax Appellate Tribunal (ITAT) has held that payments received from foreign companies on account of business support services are held to be taxable as fees for technical services (FTS).The two-member bench of Anubhav Sharma (Judicial Member) and Shamim Yahya (Accountant Member) has observed that Article 12(5) of the India-Netherlands DTAA reveals that it does...
Lease Rent Paid For Acquiring Mining Rights Is Capital In Nature, Income Tax Deduction Not Allowable: ITAT
The Pune Bench of the Income Tax Appellate Tribunal (ITAT) has observed that lease rent paid for acquiring mining rights is capital in nature and income tax deductions cannot be allowed.The two-member bench of Partha Sarthi Choudhary (Judicial Member) and Inturi Rama Rao (Accountant Member) disallowed the amount of Rs. 24,33,339 towards amortization of leasehold premium paid in respect of...
CBDT Notifies Income Tax Exemption To Karnataka State Building and Other Construction Workers Welfare Board
The Central Board of Direct Taxes (CBDT) has notified the income tax exemption under section 10(46) of the Income Tax Act to the Karnataka State Building and Other Construction Workers Welfare Board.The state government framed rules in the interest of the construction laborers in 2007 in order to take up many welfare and development schemes. Keeping in mind the interest of the...
Transporting Goods In A Vehicle Without Proper E-Way Bill Is A breach, Reasons Irrelevant: Calcutta High Court Upholds Penalty
The Calcutta High Court upheld the penalty and stated that there was no requirement in law to verify the reason for transporting goods in a vehicle without a proper e-way bill.The bench of Justice Amrita Sinha has observed that the vehicle in which the goods stood transferred for being transported allegedly to the pre-recorded destination, did not have an e-way bill. The provision of Section...
Bombay High Court Directs Release Of Seized Gutka And Pan-Masala On Furnishing The Bank Guarantee Of Rs. 27.84 Lakhs
The Bombay High Court has directed to release the Gutka and Pan-Masala, which were banned in the state of Maharashtra, after furnishing the bank guarantee of Rs. 27,84,000The single bench of Justice Kishore C. Sant has modified the order passed by the Revisional Court by adding an additional condition that the respondent shall furnish the bank guarantee in the sum of Rs. 27,84,000 instead...
Supply Of Ice Cream From The Outlets Cannot Be Considered As Supply Of “Restaurant Services”: AAR
The Gujarat Authority for Advance Ruling (AAR) has ruled that the supply of ice cream from the outlets cannot be considered as the supply of restaurant services.The two-member bench of Amit Kumar Mishra and Milind Kawatkar has observed that the readily available ice creams that are not prepared in the outlets and sold over the counter are supplies of goods. However, an ice cream that is...
Vouchers Are Neither Goods Nor Services, No ITC Available To Myntra: AAAR
The Karnataka Appellate Authority of Advance Ruling (AAAR) has held that input tax credit (ITC) is not available on the vouchers and subscription packages procured by Myntra from third-party vendors.The two-member bench of Ranjana Jha and Shikha C. has relied on the decision of the Karnataka High Court in the case of M/s Premier Sales Promotion Pvt Ltd versus Union of India & Ors., in...
Cenvat Credit Allowable On The Service Of Repair & Maintenance During Warranty Period: CESTAT
The Ahmedabad Bench of the Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has held that cenvat credit is allowable on the service of repair and maintenance during the warranty period.The two-member bench of Ramesh Nair (Judicial Member) and C.L. Mahar (Judicial Member) observed that Rule 2(l) of the Cenvat Credit Rules, 2004, particularly in the inclusion clause, covers...