Tax
Cenvat Credit Can't Be Denied Merely For Non-Registration Of Input Service Distributor : CESTAT
The Chennai Bench of the Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has held that cenvat credit cannot be denied on the grounds of non-registration of input service distributor registration in respect of bank charges and chartered accountant services.The bench of Sulekha Bevi C.S. (Judicial Member) observed that there is nothing in the statutory rules to disentitle...
Assessee Proved Creditworthiness Of Loan Transactions: ITAT Deletes Addition
The Kolkata Bench of the Income Tax Appellate Tribunal (ITAT) has deleted the addition as the assessee proved the creditworthiness of loan transactions.The two-member bench of Sanjay Garg (Judicial Member) and Rajesh Kumar (Accountant Member) has observed that where all the evidence were filed by the assessee proving the identity and creditworthiness of the loan transactions, the fact...
CBIC Issues Guidelines for verifying the Transitional Credit
The Central Board of Indirect Taxes and Customs (CBIC) has issued guidelines for verifying the transitional credit in light of the order of the Supreme Court in the case of Union of India vs. Filco Trade Centre Pvt. Ltd.The Supreme Court has directed that the common portal be opened for filing prescribed forms for availing of transitional credit through TRAN-1 and TRAN-2 for two months,...
Show Cause Notice Issued To The Driver Of Consignment Is Not Adequate: Madras High Court
The Madras High Court has held that the show-cause notice issued to the driver of the consignment is not adequate.The single bench of Justice S. Srimathy has quashed the demand for tax and penalty in Form GST MOV-09 and directed the department to issue a fresh notice.The petitioner is an assessee on GST MOV-09. The petitioner submitted that, mistakenly, the consignment was mentioned as if it...
Tax Paid On Purchases To Meet The CSR Obligations Is Eligible For ITC: Telangana AAR
The Telangana Authority of Advance Ruling (AAR) has ruled that the tax paid on purchases made to meet the obligations under corporate social responsibility (CSR) will be eligible for input tax credit (ITC) under the CGST and SGST Acts.The two-member bench of S.V. Kasi Visweswara Rao and Sahil Inamdar has observed that the expenditure made towards corporate responsibility under Section 135 of...
Delhi High Court Quashes Reassessment Order In The Name Of A Non-Existing Entity
The Delhi High Court has quashed the reassessment order in the name of a non-existing entity.The division bench of Justice Vibhu Bakhru and Justice Amit Mahajan has observed that not only was the notice issued in the name of the transferor company but the order under Section 148A(d) of the Income Tax Act, as well as the notice under Section 148, have been issued on the PAN of the...
CBIC Issues Clarification On Refund Related Issues
The Central Board of Indirect Taxes and Customs (CBIC) has issued a clarification on GST refund-related issues.The CBIC has received various representations from the trade and field formations seeking clarification on various issues pertaining to the implementation of the formula prescribed under Rule 89(5) of the CGST Rules, 2017 and the restriction on refund of unutilised ITC on account...
No Excise Duty Can Be Demanded On Semi-Finished Goods Lying At The Time Of Debonding Of 100% EOU: CESTAT
The Ahmedabad Bench of the Customs, Excise and Service Tax Appellate Tribunal (CESTAT) has held that excise duty cannot be demanded on semi-finished goods or work in process lying at the time of debonding of 100% Export Oriented Units (EOU).The two-member bench of Ramesh Nair (Judicial Member) and Raju (Technical Member) has observed that at the intermediate stage when the goods are not...
Finished Goods Destroyed In Fire; Bajaj Herbals Eligible For Remission Of Excise Duty: CESTAT
The Ahmedabad Bench of the Customs, Excise and Service Tax Appellate Tribunal (CESTAT) has held that Bajaj Herbals was eligible for remission of duty on the finished goods destroyed in the fire incident.The bench of Ramesh Nair (Judicial Member) has observed that short circuits are a usual cause of fire in the majority of cases; therefore, the fire due to a short circuit cannot be attributed...
Taxpayers To File Previous Tax Periods GSTR-1 Before Filing Current Period GSTR-1: CBIC
The Central Board of Indirect Taxes and Customs (CBIC) has announced the important changes that have been made in the return filing process.The CBIC stated that the taxpayers need to file previous tax periods on GSTR-1 before filing the current period on GSTR-1. GSTR-1 for the current period needs to be filed before filing GSTR-3B for the tax period.Form GSTR-1 is a statement of outward...
Reassessment Notice Based On Error Resulting From Oversight Of AO Is Not Valid: Delhi High Court
The Delhi High Court has held that the reassessment notice based on an error resulting from the oversight of the assessing officer is not valid.The division bench of Justice Vibhu Bakhru and Justice Amit Mahajan has relied on the decision of the Supreme Court in the case of Gemini Leather Stores v. Income Tax Officer, in which it was held that where the Income Tax Officer has all the...
Intentional Short Payment Of Excise Duty: CESTAT Upholds Penalty
The Ahmedabad Bench of the Customs, Excise and Service Tax Appellate Tribunal (CESTAT) has upheld the penalty under Section 11AC of the Central Excise Act, 1944, on the ground of intentional short payment of excise duty.The bench of Ramesh Nair (judicial member) observed that once the appellant had obtained the NOC and the unit was debonded, they intentionally avoided the payment of short...