Tax
S.54(11) GST Act | Assessee's Refund Can't Be Held Back On Commissioner's Opinion Alone, Twin Conditions Must Be Satisfied: Delhi HC
The Delhi High Court has held that Section 54(11) of the Central Goods and Services Tax Act, 2017 prescribes twin conditions for Revenue holding back Refund due to an Assesseee, despite an order to that effect.Section 54(11) of the Act would show that the refund can be held back on the satisfaction of the following two conditions – (i) when an order directing a refund is subject matter of...
CENVAT Credit Can't Be Denied Merely On Non-Submission Of User Test Certificate: Madras High Court
The Madras High Court stated that user test certificate is not mandatory before adjudicating show cause notice. The Division Bench of Justices R. Suresh Kumar and G. Arul Murugan opined that show cause notices cannot be adjudicated merely on the ground that the User Test Certificate has not been produced by the assessee. In this case, the respondent/assessee is a manufacturer of...
No CENVAT Credit On Training Of Employees Of GAIL By Training Institutes: CESTAT
The New Delhi Bench of Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has stated that no CENVAT credit on training of employees of Gas Authority of India Ltd. (GAIL) by training institutes. The Bench of Dilip Gupta (President) and P.V. Subba Rao (Technical) has observed that, “The term “coaching and training” must be “coaching and training” of the employees of...
Value Of Land Under Works Contract Is Not Exigible To VAT: Karnataka High Court
The Karnataka High Court stated that value of land under works contract is not exigible to VAT. The Division Bench of Justices Krishna S Dixit and Ramachandra D. Huddar was addressing the issue of whether levying tax on receipt for land cost i.e., immovable property, which does not constitute consideration for works contract under Composition Scheme of KVAT is...
S.161 DGST Act | Personal Hearing Can Be Dispensed Only If Assessee's Rectification Application Is Allowed, Not Rejected: Delhi HC
The Delhi High Court has held that in terms of proviso 3 to Section 161 of the Delhi Goods and Service Tax Act, 2017, an order rejecting the rectification application filed by an assessee cannot be passed without first hearing the assessee.A division bench of Justices Prathiba M. Singh and Rajneesh Kumar Gupta further said that the hearing can be dispensed with only where the...
ITAT Extends Relief To Owners Of Taj Hotel Group, Sets Aside Reassessment Action Initiated Based On ED Report
The Mumbai Bench of the Income Tax Appellate Tribunal has granted relief to the Indian Hotels Company Ltd, which owns the Taj hotels chain and set aside an addition of ₹8,22,25,142/- made by the Assessing Officer to its declared income of ₹107,74,26,414/- for the AY 1998-99.The issue before the Tribunal was regarding the validity of reopening for AY 1998-99 beyond a period of 4...
NOIDA Authorities Deposited Party's Tax Under Wrong Head: Allahabad HC Directs Compensation To Assessee For Penalty Imposed U/S 73 Of GST Act
Recently, the Allahabad High Court has directed the New Okhla Industrial Development Authority (NOIDA) to compensate the assesee Rs. Rs.19,22,778/- which was imposed on the assesee as tax and penalty in proceedings under Section 73 of the Goods and Service Tax Act, 2017. Petitioner rented out his property in Gautam Budh Nagar(Noida). The rent received from the property was...
Delhi HC Flags Rise In GST Litigation, Asks Department To Depute Officials To Enable Expeditious Disposal
The Delhi High Court has flagged the rise in number of GST related cases being filed before it and to ensure expeditious disposal of cases, particularly those arising out of procedural issues, has asked the Department to depute at least two officials from its litigation section.A division bench of Justices Prathiba M. Singh and Rajneesh Kumar Gupta said these officials can coordinate with...
Tax Quarterly Digest: January - March, 2025
SUPREME COURTMotor Accident Claims - Tax Returns Can Be Accepted To Determine Income Only If They Are Appropriately Produced : Supreme CourtCase name: New India Assurance Co. Ltd. V. Sonigra Juhi Uttamchand.Case no.: SLP (C) No. 30491 of 2018The Supreme Court, recently (on January 02), while deciding a motor accident compensation claim case, observed that monthly income could be fixed...
No Jurisdiction To Entertain Appeal Over Goods Imported Or Exported As Domestic Baggage Under Proviso To S.129A(1) Of Customs Act: CESTAT Chennai
The Chennai Customs, Excise and Service Tax Appellate Tribunal (CESTAT) has recently clarified that once the luggage/bag which accompanies an individual arriving from a domestic airport in India, during the aircrafts domestic run, is intercepted by the officers, there cannot be a presumption that it is covered under the Customs Act, 1962 and to which the Baggage Rules, 2016...
Delhi VAT | No Interest On Refund For Period Of Delay Attributable To Dealer: High Court
The Delhi High Court has held that if the delay in granting refund to a dealer under the Delhi Value Added Tax Act, 2004 is attributable to the dealer itself, such period of delay shall be excluded for the purposes of awarding interest on refund.Section 38(3)(a)(ii) of DVAT Act stipulates a period of two months for refund of excess tax, penalty, etc., if the period for refund is a...
Jharkhand High Court Orders ₹1.23 Crore GST Refund To Tata Steel Over ITC On Compensation Cess
The Jharkhand High Court has ordered Rs. 1,23,22,617/- GST refund to Tata Steel, whose largest steel plant is situated in State's Jamshedpur city.The amount represented Input Tax Credit (ITC) on Compensation Cess paid by the company under Section 8(2) of the Goods and Service Tax (Compensation to States) Act, 2017 for purchasing its key raw material- Coal.Finding that the refund was denied by...