Tax
Suncros UVA Lotion/Gel/Hyclean Cream Classifiable As Medicaments: CESTAT
The Ahmedabad Bench of Customs Excise and Service Tax Appellate Tribunal (CESTAT) has held that Suncros UVA Lotion, Gel, and Hyclean Cream are classifiable as medicaments.The bench of Ramesh Nair (Judicial Member) and C. L. Mahar (Technical Member) has observed that the appellant-assessee produced ample evidence, such as the ingredients used in the manufacture of UVA Lotion, Gel, and...
CBIC Issues Guideline To Address Recovery Of Outstanding Dues Till GSTAT Becomes Functional
The Central Board of Indirect Taxes and Customs (CBIC) has issued the guidelines for recovery of outstanding dues, in cases in which first appeal has been disposed of, till the Goods and Service Tax Appellate Tribunal (GSTAT) comes into operation.The Board has received doubts from the trade and the field formations in respect of recovery of outstanding dues, in cases where the first...
Activity Of Electroplating Amounts To Manufacture, No Service Tax Payable: CESTAT
The Chandigarh Bench of Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has held that the activity of electroplating amounts to manufacture and no service tax is payable.The bench of S. S. Garg (Judicial Member) and P. Anjani Kumar (Technical Member) has observed that electroplating of electrical contacts by the appellant amounts to manufacture, and therefore they are not liable...
Section 254(2) Applies Only Rectification Of Mistake, Can't Be Utilised For Recall And Review Order: ITAT
The Ahmedabad Bench of Income Tax Appellate Tribunal (ITAT) has held that the provision of Section 254(2) of the Income Tax Act is intended to only rectify the mistake apparent from the records, and the power of Section 254(2) of the Income Tax Act cannot be utilized to recall and review the order on its merit.The bench of Raghunath Kamble (Judicial Member) and Narendra Prasad Sinha...
Scrip Can't Be Called Penny Stock When Shares Retained For More Than 10 Years; ITAT Deletes Addition
The Mumbai Bench of Income Tax Appellate Tribunal (ITAT), while deleting the addition, held that scrip cannot be called penny stock when shares are retained for more than 10 years.The bench of Kavitha Rajagopal (Judicial Member) and Amarjit Singh (Accountant Member) has observed that the assessee, being a SEBI-registered FPI, is engaged in investment in various companies out of which the...
Reassessment Notice Not Complying Section 148 Pre-Conditions Is Beyond Jurisdictional: Bombay High Court
The Bombay High Court at Goa has held that the reassessment notice issued without complying with the pre-conditions mentioned in Section 148 of the Income Tax Act was beyond jurisdiction.The bench of Justice M. S. Karnik and Justice Valmiki Menezes has observed that the substantive rights of the original petitioner were governed by the provisions of the Portuguese Civil Code. The fact that...
TPO Lacks Jurisdiction To Question Commercial Expediency Or Genuineness Of Need: Delhi High Court
The Delhi High Court has held that the statutory authority conferred upon the Transfer Pricing Officer (TPO) can only extend to an examination of the appropriateness of the method adopted for the purposes of determining arm's length pricing (ALP) or evaluating the enlistment of comparables. However, the TPO would neither be justified nor could it be countenanced to have the jurisdiction...
Loans Extended By NOIDA Is Not Commercial Activity, Eligible For Section 10(46) Exemption: Delhi High Court
The Delhi High Court has held that the loans and advances extended by the New Okhla Industrial Development Authority (NOIDA) are not commercial activities and are eligible for exemption under Section 10(46) of the Income Tax Act.The bench of Justice Yashwant Varma and Justice Purushaindra Kumar Kaurav has observed that the respondent department has erred in holding that the loans and...
Bagasse Is Not A Manufactured Item And Not Dutiable: CESTAT
The Allahabad bench of the Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has held that bagasse is not a manufactured item and hence not dutiable and does not attract Rule 6(3) of the CENVAT Credit Rules, 2002 (CCR 2004).The bench of P.K. Choudhary (Judicial Member) has observed that the department should have suo-motu refunded the amount paid by them on clearance of Bagasse...
Reassessment Notice Not Issued In Terms Of Procedure Prescribed Under Faceless Assessment; Karnataka High Court Grants Interim Stay
The Karnataka High Court has granted an interim stay on a reassessment notice issued under Section 148 of the Income Tax Act, 1961 which was not issued in terms of the procedure prescribed under Faceless Assessment.The bench of Justice Sunil Dutt Yadav has stayed the reassessment notice issued by the jurisdictional assessing officer under Section 148 of the Income Tax Act, 1961 since the...
Assessee Can't Be Expected To Deduct TDS From Payments Which Became Taxable Owing To Retrospective Amendment: Bombay High Court
The Bombay High Court at Goa, while upholding the order of the Income Tax Appellate Tribunal (ITAT), has held that the assessee cannot be expected to deduct tax at source from payments that became taxable owing to a retrospective amendment.The bench of Justice M.S. Karnik and Justice Valmiki Menezes has observed that it is not open to the department to take a divergent view on the expenditure...
Meghalaya High Court Directs Customs Commissioner To Refund Rs. 60 Lakhs For Destroying Seized Betel Nuts
The Meghalaya High Court has directed the customs commissioner to refund Rs. 60 lakh for destroying seized betel nuts.The bench of Justice H. S. Thangkhiew has observed that the Tribunal found that the goods were neither imported nor proved to be smuggled. Though the case was assailed before the Division Bench and ultimately before the Supreme Court, it was dismissed.The goods of the...