Tax Cases Weekly Round-Up: 21 May to 27 May 2023

Update: 2023-05-28 04:19 GMT
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Supreme CourtNo Service Tax Applicable on User Development Fee collected From Passengers by Delhi, Mumbai and Hyderabad International Airports: Supreme CourtCase Title: Central GST Delhi – III vs Delhi International Airport LtdCitation : 2023 LiveLaw (SC) 457The Supreme Court has ruled that “user development fee” (UDF) levied and collected by the airport operation, maintenance,...

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Supreme Court

No Service Tax Applicable on User Development Fee collected From Passengers by Delhi, Mumbai and Hyderabad International Airports: Supreme Court

Case Title: Central GST Delhi – III vs Delhi International Airport Ltd

Citation : 2023 LiveLaw (SC) 457

The Supreme Court has ruled that “user development fee” (UDF) levied and collected by the airport operation, maintenance, and development entities from passengers departing the concerned airports, is a statutory levy, and thus, it is not subjected to levy of service tax under the provisions of the Finance Act, 1994.

Delhi High Court

Rejection Of Application Under SVLDR Scheme Without A Hearing Is Violative Of Principles Of Natural Justice: Delhi High Court

Case Title: Carpet Export Promotion Council Versus Union Of India

Citation: 2023 LiveLaw (Del) 434

The Delhi High Court has held that the summary rejection of the application under the Sabka Vishwas (Legacy Dispute Resolution) Scheme, 2019 (SVLDR Scheme) without affording the opportunity to be heard would violate the principles of natural justice.

ITAT

Income To Be Computed First After Making The Disallowance And Only 40% Resultant Income Has To Be Treated As Taxable Income: ITAT

Case Title: M/s. Stewart Holl (India) Limited Versus Assistant Director of Income Tax

The Kolkata Bench of Income Tax Appellate Tribunal (ITAT) has held that the income of the assessee should be computed first after making the disallowance and whatever the resultant income only 40% of that income has to be treated as taxable income in terms of Rule 8(1) of the Income Tax Rules, 1962.

ITAT Allows Income Tax Deduction On Effluent Water Treatment

Case Title: Dy. Commissioner of Income Tax Vs. M/s. Viral Alkalis Ltd

The Mumbai Bench of the Income Tax Appellate Tribunal (ITAT) has allowed the income tax deduction on effluent water treatment.

Dept. Failed To Prove Sundry Creditors To Be Bogus: ITAT Deletes Addition Against Buffalo Meat Trader

Case Title: ACIT Versus Al Nasir Agro Foods

The Delhi Bench of the Income Tax Appellate Tribunal (ITAT) has deleted the addition against the buffalo meat trader as the department has failed to prove sundry creditors to be bogus.

Additions Can’t Be Made In Absence Of Incriminating Material: ITAT Deletes Income Tax Addition

Case Title: DCIT Versus Bhavya Pankaj Shah

The Mumbai Bench of the Income Tax Appellate Tribunal (ITAT) has held that the additions could not have been made in the absence of any incriminating material.

Once The Existence Of Goodwill Is Established, Depreciation On Goodwill Cannot Be Questioned: ITAT

Case Title: Dy. Commissioner of Income Tax, Circle 2 Versus Blujay Solutions (India) Private Limited

The Hyderabad Bench of the Income Tax Appellate Tribunal (CESTAT) has held that once the existence of goodwill is established, depreciation on goodwill cannot be questioned.

CESTAT

Bagasse Is An Agricultural Waste: CESTAT Quashes Excise Duty

Case Title: M/s. Vithal Corporation Ltd. Versus Commissioner of Customs Excise & Service Tax

The Mumbai Bench of the Customs, Excise, and Service Tax Appellate Tribunal (CESTAT), while quashing the excise duty, held that bagasse, being an agricultural waste or residue, could not be manufactured.

CENVAT Credit Is Not Admissible On Input Services Attributable To Trading Activity: CESTAT

Case Title: M/s Woodward Governor India Limited Versus Commissioner of Central Excise

The Chandigarh Bench of the Income Tax Appellate Tribunal (CESTAT) has held that CENVAT credit is not admissible on input services attributable to trading activity.

‘Input Service’ Include Any Service Received In Or In Relation To Setting Up, Modernisation, Renovation Or Repair Of The Factory Premises: CESTAT Allows Cenvat Credit

Case Title: M/s Rico Auto Industries Ltd. Versus Commissioner of Excise

The Chandigarh Bench of the Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has held that the construction services and other services that are necessary for the renting of the business fall under the definition of ‘input service’ as provided under Rule 2(l) of the Cenvat Credit Rules, 2004.

Demand Under Service Tax On RCM, Has To Be Worked Out And Calculated Transaction-Wise And Invoice-Wise: CESTAT

Case Title: M/s. M.P. Audyogik Kendra Vikas Nigam Versus Principal Commissioner of Central Goods & Service Tax and Central Excise

The Delhi Bench of the Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has held that demand under service tax on reverse charge mechanisms has to be worked out and calculated transaction-wise and invoice-wise.

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