Tax
Scrap Neither Generated From Manufacturing Nor From Cenvatable Input/Capital Goods, No Excise Duty Payable: CESTAT
The Ahmedabad Bench of the Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has observed that excise duty is not payable on scrap, which is neither generated from the manufacturing process nor generated from the cenvatable input or capital goods.The two-member bench of Ramesh Nair (Judicial Member) and Raju (Technical Member) has observed that the Show Cause Notice was baldly...
Bogus Share Transaction: ITAT Denies Exemption Under Section 10(38) Of Income Tax Act
The Pune Bench of the Income Tax Appellate Tribunal has ruled that where the assessee fails to establish the genuineness of the transaction of sale and purchase of shares, and fails to rebut the findings of quasi-judicial bodies regarding the bogus transaction in shares, the said transaction is void ab initio. Thus, applying the principle of fraud, the ITAT held that the assessee was...
CBIC Issues Instructions Regarding Manner of processing and sanction of IGST refunds
The Central Board of Indirect Taxes and Customs (CBIC) has issued instructions regarding the manner of processing and sanctioning IGST refunds withheld in terms of Rule 96(4)(c), which were transmitted to the jurisdictional GST authorities under Rule 96(5) of the CGST Rules.The SOPs for verification of risky exporters and their suppliers, dated January 23, 2020, were issued to CGST and...
Allegations based on assumptions In The SCN : CESTAT Deletes Penalty
The Kolkata Bench of the Customs, Excise and Service Tax Appellate Tribunal (CESTAT) has held that the allegation of clandestine manufacture and removal of finished goods by the Appellant made in the Show Cause Notice was merely based on assumption and presumption.The bench of P.K. Choudhary (a judicial member) has observed that the charge of clandestine clearance is a serious charge, and...
Department Is Not Allowed To Travel Beyond The Issues Involved In Limited Scrutiny Cases: ITAT
The Delhi Bench of the Income Tax Appellate Tribunal (ITAT) has held that the department is not allowed to travel beyond the issues involved in limited scrutiny cases.The two-member bench of N.K. Choudhary (Judicial Member) and Pradip Kumar Kedia (Accountant Member) have observed that the assessee was selected for limited scrutiny, and the addition in hand does not emanate from the grounds...
Purchase Of ATM within India: CESTAT Deletes Penalty Under Customs Act Against CitiBank
The Mumbai Bench of the Customs, Excise and Service Tax Appellate Tribunal (CESTAT) has deleted the penalty under the Customs Act against CitiBank on the purchase of an ATM within India.The two-member bench of Suvendu Kumar Pati (Judicial Member) and Sanjeev Shrivastava (Accountant Member) has observed that a transaction concerning the purchase of an item within India, which is unrelated to...
CBIC Extends Exemption From Maintaining Deposits In ECL Under Customs Act Till 31st March, 2023
The Central Board of Indirect Taxes and Customs (CBIC) has extended the exemption from maintaining deposits in the Electronic Cash Ledger (ECL) under the Customs Act till March 31, 2023.The Board, empowered under section 51A of the Customs Act, 1962, has amended notification No. 47/2022-Customs (NT) dated May 31, 2022.The CBIC exempted deposits from the provisions of Section 51A of the...
Dispute Arising Out Of Erstwhile Central Excise Act Has To Be Dealt With Under Its Provisions And Not Under GST: Jharkhand High Court
The Jharkhand High Court has held that the initiation of proceedings by the department under section 73 (1) of the CGST Act, 2017 for alleged contravention of the Central Excise Act (C.E.A.) and Finance Act against the petitioner in terms of Section 140 of the CGST Act for the transition of CENVAT Credit as being inadmissible under GST was beyond his jurisdiction.The division bench of...
ITAT Deletes Addition On Cash Deposits Before Demonetisation
The Chennai Bench of the Income Tax Appellate Tribunal (ITAT) has directed the Assessing Officer (AO) to delete the addition made on account of cash deposits made before demonetization.The bench of G. Manjunatha (an accountant member) has observed that as per Section 5 of the Specified Bank Notes (Cessation of Liabilities) Ordinance, 2016, from December 31, 2016, no person shall, knowingly...
Section 45(4) Of Income Tax Act Applicable To Cases Of Subsisting Partners Of A Partnership Transferring The Assets In Favour Of A Retiring Partner: Supreme Court
A Supreme Court bench comprising Justices M.R. Shah and M.M. Sundresh held that Section 45(4) of the Income Tax Act was applicable to not only the cases of dissolution but also cases of subsisting partners of a partnership, transferring the assets in favour of a retiring partner.The respondent assessee, a partnership firm originally consisted of four partners (all brothers) engaging in...
Notice Under Section 148 Of Income Tax Act Against A Struck-Off Company Valid, In View Of Subsequent Order Of NCLT Restoring The Company: Delhi High Court
The Delhi High Court has ruled that the order passed by NCLT under Section 252(3) of the Companies Act, 2013, directing restoration of a struck off company, will have the effect of placing the company in the same position as if the name of the company had not been struck off from the register of companies. Thus, the Court held that the notice under Section 148 of the Income Tax Act,...
Tax Cases Weekly Round-Up: 20 November to 26 November 2022
Supreme CourtSupreme Court Declines To Grant Relief In Department's SLP Against Judgement On Countervailing Duty Case Title: Union of India versus Real Strips Ltd. The Supreme Court adjourned without issuing notice, the department's appeal against the Gujarat High Court's judgement in the case of countervailing duty (CVD). The bench of Justice Sanjeev Khanna, and Justice J...