Tax
GST Not Payable On MGO Charges Collected By ONGC From GAIL For Shortfall In Gas Offtake: Tamil Nadu AAR
The Authority for Advance Ruling of Tamil Nadu recently held that Minimum Guaranteed Off-take (MGO) charges collected by ONGC from GAIL for short-lifting natural gas are not liable to Goods and Services Tax (GST).In a clarification key for the oil and gas sector, the authority ruled that these charges are in the nature of liquidated damages for breach of contract and do not constitute a...
Input Tax Credit Not Admissible On Electricity Supplied To Township Maintained By Bharat Aluminium: Chhattisgarh High Court
The Chhattisgarh High Court has stated that the ITC is not admissible on electricity supplied to a township maintained by Bharat Aluminium. The bench, consisting of Chief Justice Ramesh Sinha and Ravindra Kumar Agrawal stated that Input Tax Credit (ITC) is not admissible on the electricity supplied to the township maintained by Bharat Aluminium/appellant. This is because such...
Non-Resident Company Need Not Have Permanent Office In India To Be Taxed On Income Accruing Here : Supreme Court
The Supreme Court has clarified that under the Income Tax Act, a non-resident company can be taxed in India on income that accrues or arises from a business connection within the country, even if it does not maintain a permanent office or physical establishment here.A Bench of Justice Manoj Misra and Justice Joymalya Bagchi, in its judgment examined the scope of Sections 4, 5(2), and 9(1)(i)...
Assessment Order Not Void Solely Because It Was Passed in Deceased's Name: ITAT Chandigarh
The Income Tax Appellate Tribunal (ITAT), Chandigarh Bench, recently held that an appellate order passed by the Commissioner of Income Tax (CIT), reassessing the income tax liability of an assessee, is not invalid merely because it was issued in the name of a deceased person. The Tribunal noted that since the appeal itself was filed under the deceased's name, the order cannot be quashed on...
Mens Rea Not Prerequisite For Imposing Penalty U/S 117 Of Customs Act: Karnataka High Court
The Karnataka High Court held that mens rea is not a prerequisite for imposing a penalty under Section 117 of the Customs Act. Section 117 of the Customs Act, 1962, addresses penalties for contraventions not specifically mentioned elsewhere in the Act. Justices S.G. Pandit and K.V. Aravind stated that a plain reading of Section 117 of the Act makes it clear that whenever...
Show Cause Notice Cannot Be Issued Solely On Basis Of Voluntary Disclosure Under SVLDRS Scheme: CESTAT
The Bangalore Bench of Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has stated that a show cause notice cannot be issued solely based on voluntary disclosure by the assessee under the SVLDRS Scheme [Sabka Vishwas (Legacy Dispute Resolution) Scheme, 2019]. The bench, consisting of P.A. Augustian (Judicial Member) and R. Bhagya Devi (Technical Member), agreed with...
Information Regarding GST Returns Of Company Cannot Be Disclosed Under RTI Act: Bombay High Court
The Bombay High Court on Tuesday (October 14) held that a company's Goods and Services Tax (GST) returns filing cannot be disclosed under the Right To Information (RTI) Act. Sitting at Aurangabad bench, single-judge Justice Arun Pednekar noted that section 158(1) of the GST Act prohibits disclosure of information of GST returns to third parties and that section 8(1)(j) of the RTI Act too...
ITC Cannot Be Denied To Bona Fide Purchasers If Seller Defaults On Tax Payment : Supreme Court
The Supreme Court recently held that the Input Tax Credit (ITC) on goods purchased from registered dealers cannot be denied to bona fide purchasers merely because the seller failed to deposit the Value Added Tax (VAT) with the government.A bench of Justice Manoj Misra and Justice Nongmeikapam Kotiswar Singh observed that there was no infirmity in the order of Delhi High Court granting credit...
SARFAESI Charge Created Before GST Charge Takes Precedence Over It: Karnataka High Court
'If a claim is made under the IBC Act and there is no claim under the SARFAESI Act, RDB Act, or GST Act, the claim under the IBC Act can be implemented without issue. Similarly, if a claim is made under the GST Act and there are no claims under the SARFAESI Act, RDB Act, or IBC Act, the claim under the GST Act can be executed without difficulty'
Income Tax Act | Deputy Commissioner Cannot Act Beyond DRP Directions; Assessment After S.144C(13) Time Limit Invalid: Bombay High Court
The Bombay High Court stated that the Deputy Commissioner cannot act beyond the dispute resolution panel (DRP) directions; assessment completed beyond Section 144C(13) of the Income Tax Act, 1961, the time limit is invalid. Section 144C(13) of the Income Tax Act, 1961 mandates the completion of the assessment within one month from the end of the month in which DRP directions are...
Property Tax Is First Charge On Property; Auction Purchaser Liable To Pay It Before Sale: Calcutta High Court
The Calcutta High Court has held that property tax is a first charge on property and the auction purchaser is liable to pay property tax prior to sale. The bench stated that where a statutory first charge is created on the property, such as in respect of property tax under Section 232 of the Kolkata Municipal Corporation Act, 1980, the municipal authority is entitled to...
IRCTC's Food Plaza Licenses Not 'Renting Of Immovable Property': CESTAT Quashes ₹2.88 Crore Service Tax Demand
The Customs, Excise & Service Tax Appellate Tribunal (CESTAT), New Delhi, recently held that the arrangement between Indian Railway Catering and Tourism Corporation Ltd. (IRCTC) and private vendors for operating Food Plazas at railway premises does not amount to 'renting of immovable property' and, thus, does not attract service tax under that category.A two-member coram comprising...