Tax
No Mala Fide Intent To Evade Service Tax: CESTAT Quashes Penalty
The Delhi Bench of the Customs, Excise and Service Tax Appellate Tribunal (CESTAT) has deleted the penalty and held that the service provider receiving a commission in lieu of providing "business auxiliary services" from Adarsh Credit Cooperative Society did not have a mala fide intention to evade service tax.The bench of Rachna Gupta (Judicial Member) has held that the entire amount...
Industrial Townships Are "Local Areas" For Entry Tax Levy By States Though They Are Excluded From Municipalities : Supreme Court
The Supreme Court upheld States' power to impose entry tax from Industrial Township/Areas.The bench of CJI UU Lalit, Justices S. Ravindra Bhat and J B Pardiwala held that industrial townships are 'local area' for the purposes of entry tax. The court dismissed appeals against filed against (1) Orissa High Court Judgment by OCL India Ltd. and Steel Authority of India Ltd. and (2) the...
Sale Of Scrap By Trader, Not Engaged In Any Manufacturing Activity, Will Also Attract TCS: ITAT
The Ahmedabad Bench of the Income Tax Appellate Tribunal (ITAT) has ruled that sale of scrap by a trader, who is not engaged in any manufacturing activity from which the scrap arose, will also attract TCS. The Bench of Judicial Member Suchitra Kamble, after referring to the Circular No. 18, dated 21.05.2012, issued by the CBDT, held that for the applicability of TCS on sale of scrap,...
Services Of Business Promotion/Support And Marketing Service Do Not Qualify As Intermediary Service: CESTAT
The Chandigarh Bench of Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has held that the services of business promotion, support, and marketing do not qualify as intermediary services.The bench of S. S. Garg (Judicial Member) and P. Anjani Kumar (Technical Member) has observed that the place of provision of business promotion service shall be the location of the recipient...
Use Of Word 'Mediation' In Arbitration Clause Is Immaterial, Clause Does Not Lose Its Character : Delhi High Court
The Delhi High Court has held that nomenclature of an arbitration clause is immaterial when all the elements are present. The bench of Justice Prateek Jalan held that an arbitration clause would not loose its character merely because the word 'mediation' has been used as its nomenclature. It held that, in construction of a contractual clause, the Court should be guided by the...
Delhi High Court Condones Delay In Payments Under VSV Due To Covid and Death Of Managing Director
The Delhi High Court, while exercising its extraordinary writ jurisdiction under Article 226 of the Constitution of India, has condoned the delay in payments under Direct Tax Vivad Se Vishwas (VSV) due to COVID and the death of the managing director of the company.The division bench of Justice Manmohan and Justice Manmeet Pritam Singh Arora has observed that the power to condone the delay...
Parking Services Of Cycle, Scooters Doesn't Attract Service Tax: Punjab & Haryana High Court
The Punjab and Haryana High Court has held that the service tax is not payable on the parking services for cycles and scooters.The single bench of Justice Vinod S. Bhardwaj has directed the department to release the security amount along with the interest within four weeks.The petitioner/assessee had taken vacant land on lease at Bus Stand, Karnal, for parking of cycles/scooters during the...
Currency can't be confiscated if it is not Proceeds Of Goods Cleared Clandestinely: CESTAT
The Ahmedabad Bench of the Customs, Excise and Service Tax Appellate Tribunal (CESTAT) has held that the seized currency during the course of an investigation cannot be confiscated without proving that the said seized currency is the sale proceeds of excisable goods cleared clandestinely.The two-member bench of Ramesh Nair (Judicial Member) and Raju (Technical Member) has ordered that...
Applicant Withheld Information Regarding Commencement Of Investigation: AAAR Declares AAR's Ruling Void
The Gujarat Appellate Authority of Advance Ruling (AAAR) declared the AAR ruling void as the appellant had withheld information regarding the commencement of an investigation against them on the issue raised by them in the application for an advance ruling.The two-member bench of Vivek Ranjan and Milind Torawane has observed that the term "proceeding" is a very comprehensive term and,...
No Tax Implications On Business Profits Earned On Reinsurance Business In Absence Of Fixed Place PE in India: ITAT
The Mumbai Bench of the Income Tax Appellate Tribunal (ITAT) has held that there are no tax implications on business profits earned on account of the reinsurance business in the absence of a fixed place permanent establishment (PE) in India.The two-member bench headed by Pramod Kumar (Vice President) and Anikesh Banerjee (Judicial Member) has observed that the existence of the dependent...
CBIC Exempts Export Duty On Several Varieties of Rice From November 1, 2022
The Central Board of Indirect Taxes and Customs (CBIC) has exempted several varieties of rice from export duty with effect from November 1, 2022.The varieties of rice that are exempt from export duty include husked (paddy or rough) rice, husked (brown) rice, and semi-milled or wholly-milled rice subjected to certain conditions.Firstly, goods meant for export to Nepal when exported through...
Capitation Fee collected indirectly by educational institutions, no tax exemption: Madras High Court
The Madras High Court has lifted the corporate veil of the educational institution for collecting involuntary capitation fees.The division bench of Justice R. Mahadevan and Justice Mohammed Shaffiq, while cancelling the registration under Section 12A of the Income Tax Act, noted that the amounts collected by the assessees were capitation fees for allotment of seats in deviation of the Tamil...