Delhi High Court

Issuance Of SCN in Customs Brokers Licensing Regulations, Contemplates Dispatch Of Notice And Not Its Receipt: Delhi High Court

Case Title: Commissioner of Customs (Airport & General) vs M/s R.P. Cargo Handling Services

The Delhi High Court has ruled that the expression ‘issuance of show cause notice’ in Regulation 20(1) of the Customs Brokers Licensing Regulations, 2013 (CBLR), merely contemplates the dispatch of the notice and not its receipt by the Customs Broker, within the stipulated period.

Orissa High Court

Kinley Water Falls Within Water, Not Aerated Or Mineral Water, Comes Within Tax Free List: Orissa High Court

Case Title: State of Odisha Versus M/s. Hindustan Coca-Cola

The Orissa High Court held that the sale of packaged drinking water under the brand name Kinley Water falls within the expression "water but not aerated or mineral water sold in bottles or sealed containers," which is covered under Entry No.39 of the Tax-Free List.

Chokad Is Not An Industrial Input: Orissa High Court Quashes Order Imposing 4% VAT

Case Title: M/s. Kamadhenu Cattle & Poultry Feed Unit versus The State of Odisha

The Orissa High Court has quashed the order imposing a 4% value-added tax (VAT) on the wheat bran (chokad) as it is not an industrial input.

Unrealistic To Expect GST Return Filing Without Actual Commencement Of Business: Orissa High Court Directs Dept. To Process Licence Application

Case Title: M/s. Galaxy Bar and Restaurant, Nayagarh Versus State of Odisha and others

The Orissa High Court has held that the license application should not be rejected only because a GST return has not been filed yet, since it is unrealistic to expect that to happen without the actual commencement of its business.

Bombay High Court

Who Is The Proper Authority To Decide IGST Refund? Bombay High Court Directs The Dept. To Decide

The Bombay High Court has directed the department to decide who has the proper authority to decide on an IGST refund.

The division bench of Justice Nitin Jamdar and Justice Abhay Ahuja has noted that the customs authorities claimed that the GST authority is the proper officer for processing refund claims, whereas the GST authorities claim that it is the customs officer.

Madras High Court

Personal Hearing To Be Granted In All Matters Prior To Finalisation Of Assessment: Madras High Court

Case Title: SKS Builders and Promoters Versus Assistant Commissioner (ST)

The Madras High Court has held that personal hearings shall be granted in all matters prior to the finalization of assessments, except where the stand of the assessee is intended to be accepted by the department.

Calcutta High Court

Transporting Goods In A Vehicle Without Proper E-Way Bill Is A breach, Reasons Irrelevant: Calcutta High Court Upholds Penalty

Case Title: Asian Switchgear Private Limited Versus State Tax Officer

The Calcutta High Court upheld the penalty and stated that there was no requirement in law to verify the reason for transporting goods in a vehicle without a proper e-way bill.

AO Issued Income Tax Assessment Notice To Non-Existent Company: Calcutta High Court Imposes Cost

Case Title: Orbit Projects Private Limited Vs Income Tax Officer

The Calcutta High Court has imposed a fine of Rs. 20,000 on the assessing officer for issuing the income tax assessment notice to the non-existent company.

Dept. Vacillating Whether Goods Were In Transit Or In Godown: Calcutta High Court Directs Refund Of Penalty

Case Title: Sandip Kumar Singhal Versus Deputy Commissioner, Revenue, Bureau of Investigation North Bengal Headquarter & Ors.

The Calcutta High Court has directed the refund of the penalty and held that the department was vacillating between Sections 67 and 68 of the GST Act, depending on whether the goods are in transit or in the godown.

Gujarat High Court

Reversal of ITC At Midnight During Search And Seizure Operation Can't Be Treated As Voluntary Payment: Gujarat High Court Directs Refund

Case Title: Shree Ganesh Molasses Trading Company Versus Superintendent

The Gujarat High Court has held that the reversal of input tax credit (ITC) at midnight during search and seizure operations can't be treated as a voluntary payment.

The division bench of Justice Sonia Gokani and Justice Sandeep S. Bhatt has directed the department to reverse the ITC to the tune of Rs. 37,68,300 along with 6% interest.

ITAT

Lease Rent Paid For Acquiring Mining Rights Is Capital In Nature, Income Tax Deduction Not Allowable: ITAT

Case Title: ZF Steering Gear (India) Ltd. Versus DCIT

The Pune Bench of the Income Tax Appellate Tribunal (ITAT) has observed that lease rent paid for acquiring mining rights is capital in nature and income tax deductions cannot be allowed.

Payment Received From Foreign Company On Account Of Business Support Services Not Taxable As FTS: ITAT

Case Title: Inteva Products Netherlands BV Versus ACIT

The Delhi Bench of the Income Tax Appellate Tribunal (ITAT) has held that payments received from foreign companies on account of business support services are held to be taxable as fees for technical services (FTS).

Expenses Of Solid Waste Disposal Is An Accrued Liability As It Was Disposed At Temporary Site: ITAT Allows Claim Worth Rs. 7.77 Crores

Case Title: ACIT Versus The Green Environment Services Co-op Society Ltd.

The Ahmedabad Bench of the Income Tax Appellate Tribunal (ITAT) has allowed the assessee’s claim of Rs. 7,77,73,600 as a provision for expenses of solid waste disposal.

NFAC Bound By The Decision Of Jurisdictional High Court: ITAT

Case Title: Nagesh Consultants Versus The Deputy Commissioner of Income Tax

The Bangalore Bench of the Income Tax Appellate Tribunal (ITAT) has held that the National Faceless Appeal Centre (NFAC) was bound by the binding decision of the jurisdictional high court, where the AO was situated.

ITAT Upholds Income Tax Addition On Amount Received For Arbitration Settlement

Case Title: TGE Gas Engineering GmbH Versus DCIT

The Delhi Bench of the Income Tax Appellate Tribunal (ITAT) has upheld the income tax addition on the amount received for arbitration settlement from Indian Oil Infrastructure & Energy Services.

An Order Is Not Prejudicial To The Interest Of Revenue U/S 263 If It Is Based On An Uncertain Issue Of Entitlement Of Treaty Benefit: ITAT

Case Title: M/s. Tata NYK Shipping Pte. Ltd. vs. Commissioner of Income Tax, International Taxation-3, New Delhi.

The Delhi Bench of Income Tax Appellate Tribunal (ITAT) has held that an order by assessing officer on whether a particular entity is entitled to a treaty benefit or not is a highly contentious issue and cannot be considered to be erroneous and prejudicial to the interest of revenue under section 263 of Income Tax Act, 1961.

The Amount Which Is Lower Of Unabsorbed Depreciation And Business Loss Will Be Set-Off Against Book Profits: ITAT

Case title: M/s PVR Pictures Ltd. v. Dy. CIT, Circle 19(2), New Delhi

The Delhi Bench of Income Tax Appellate Tribunal has clarified the provisions of clause (iii) of Explanation-1 to Section 115JB (2) for computation of book profits for taxation. The Tribunal held that amount which is lower between unabsorbed depreciation and business loss deserves to be set off against the current Assessment Year (A.Y.) book profits in terms of the provisions of Income Tax Act.

CESTAT

Service Tax Not Payable On The Amount Collected From The Member Units For Treatment Of Effluent Water: CESTAT

Case Title: M/s. Perundurai Common Effluent Treatment Plant Versus The Commissioner of Central Excise and Service Tax

The Hyderabad Bench of the Customs, Excise and Service Tax Appellate Tribunal (CESTAT) has held that service tax is not payable on the remuneration collected from the member units for the activity of treating effluent water.

AAR

Building And Fabricating Tipper Body If Chassis Is Owned, Supplied By The Customer Attracts 18% GST: Punjab AAR

Applicant’s Name: Raj Agro AIDS

The Punjab Authority of Advance Ruling (AAR) has held that the building and fabricating of a tipper body if the chassis is owned and supplied by the customer attracts 18% GST.

Purchaser Is Not Entitled To ITC On The Purchases Made From The Seller Who Had Discharged Its Tax Liability: AAR

Applicant’s Name: Vimal Alloys Ltd.

The Punjab Authority of Advance Ruling (AAR) has held that the purchaser is not entitled to claim Input Tax Credit (ITC) on the purchases made by it from the seller, who had discharged its tax liability.