Tax
Delhi High Court Orders Customs To Release 'Name Engraved' Gold Jewellery Of Indian Tourist
The Delhi High Court has ordered the Customs Department to release the gold kada of an Indian tourist, which was seized upon his return to the country after a visit to the Republic of Mali.Petitioner had argued that the jewellery was a personal effect, as evident from engraving of his first name on the same, and was thus exempted from duty.A division bench of Justices Prathiba M. Singh...
'Comedy Of Errors': Delhi HC On CESTAT Passing Contradictory Orders In Appeal Which Did Not Meet Its Pecuniary Jurisdiction
The Delhi High Court recently took a critical view of the Customs Excise And Service Tax Appellate Tribunal at New Delhi for repeatedly passing contradictory orders in an appeal, which should have been dismissed for want of pecuniary jurisdiction.“This order reveals a complete comedy of error…The petition reveals an unfortunate situation wherein the CESTAT while intending to correct an...
Service Tax Leviable On RIICO And RASMB For Commercial And Industrial Construction Services: CESTAT
The New Delhi Bench of Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has stated that there is a service tax liability on RIICO and RASMB for commercial and industrial construction services. The Bench of Dr. Rachna Gupta (Judicial) and Hemambika R. Priya (Technical) was addressing the issue of the tax liability of the service provider providing “Commercial...
Tax Weekly Round-Up: March 17 - March 23, 2025
HIGH COURTSAllahabad HCProceedings U/S 129 Of GST Act Are Summary Proceedings, Burden To Prove Actual Movement Of Goods Lies On Assesee: Allahabad High CourtCase Title: M/S Jaya Traders Through Its Proprietor Mr. Vishwanath Tiwari v. Additional Commissioner Grade-2 And Another Case no.: WRIT TAX No. - 1022 of 2021The Allahabad High Court has held that proceedings under section 129 of the GST...
No Penalty Leviable If Assessee Fails To Discharge Tax Liability Under Bonafide Belief That No Tax Needed To Be Paid: CESTAT
The New Delhi Bench of Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has held that if an assessee fails to discharge his tax liability under the bonafide belief that tax did not need to be paid, no penalty is leviable. The Bench of Dr. Rachna Gupta (Judicial) and Ms. Hemambika R. Priya (Technical) has observed that, “even if payment is made through CENVAT for...
Revenue Cannot Re-Assess Time Barred Assessment Under KVAT Act Based On CAG Report: Kerala High Court
The Kerala High Court stated that revenue cannot re-assess time barred assessment under KVAT Act based on CAG report. The Division Bench of Justices A.Y. Jayasankaran Nambiar and Easwaran S. observed that “there cannot be an exercise of power under Section 25A of the KVAT Act beyond the period of limitation prescribed under Section 25(1) of the KVAT Act. In fact the provisions...
Advertising Agency Not Liable To Pay Service Tax On Amount Payable To Media Companies On Behalf Of Their Clients: CESTAT
The New Delhi Bench of Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has stated that the advertising agency being a pure agent is not liable to pay service tax on amount payable to media companies on behalf of their clients. The Bench of Dilip Gupta (President) and P. V. Subba Rao (Technical) has observed that, “The assessee has conceded about their liability to...
Joint Commissioner Has Jurisdiction To Initiate Proceedings Against Assessment Order Passed Pursuant To Remand: Kerala High Court
The Kerala High Court stated that Joint Commissioner has jurisdiction to initiate proceedings under Section 56 of the KVAT Act against assessment order passed pursuant to remand. The Division Bench of Justices A.K. Jayasankaran Nambiar and Easwaran S. observed that “when the fresh assessment order was passed consequence to the remand, the original assessment order ceased to exist...
Ayurvedic Treatment Is Only Incidental To Facilities Provided By Assessee In Resort, Liable To Be Taxed: Kerala High Court
The Kerala High Court stated that ayurvedic treatment is only incidental to facilities provided by assessee in a resort, hence liable to be taxed. “the main activities of the assessee as per the brochures produced before the assessing officer, are canoeing, motor boat cruises, houseboat stay, trekking, Alleppey beach visit, coir factory visit, elephant ride, Kathakali,...
Vehicles Registered As Goods Carriage Vehicles Can't Be Classified Under Different Head For Demanding One-Time Tax: Kerala High Court
The Kerala High Court stated that vehicles registered as goods carriage vehicles, could not be classified under a different head for the purposes of demanding one-time tax under the second proviso to Section 3(1) of the Kerala Motor Vehicles Taxation Act. The Division Bench of Justices A.K. Jayasankaran Nambiar and Easwaran S. stated that “the department cannot alter their...
Activity Of “Chilling Of Milk” Is A Service, Leviable To Service Tax: CESTAT
The New Delhi Bench of Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has stated that activity of chilling of milk is leviable to service tax. The Bench of Binu Tamta (Judicial Member) and P.V. Subba Rao (Technical Member) has observed that “the activity of chilling of milk during the post negative period amounts to rendering 'services' as defined in section 65B...
NRI's Entitled To Benefits Provided To 'Eligible Passengers' Under 2016 Baggage Rules: Delhi High Court
The Delhi High Court has held that a non-resident Indian is fully entitled to the benefit provided to an “eligible passenger” under the Baggage Rules, 2016 for the purposes of Customs on arrival to India.Eligible passenger was defined by the Finance Ministry via a Notification dated June 30, 2017, to mean a passenger of Indian origin or a passenger holding a valid Indian passport, coming...