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Home e-Newsletters Index Year 2021 April Day 15 - Thursday

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TMI Tax Updates - e-Newsletter
April 15, 2021

Case Laws in this Newsletter:

GST Income Tax Customs Insolvency & Bankruptcy Service Tax Central Excise CST, VAT & Sales Tax



Highlights / Catch Notes

    GST

  • Local Authority or not - Ahmedabad Municipal Transport Service - applicant being a “local authority” is providing advertisement service to the business entity, accordingly as per the aforesaid Notification applicant is not liable to payment of GST but under reverse charge mechanism recipient of Service is liable to payment of GST. - AAR

  • Classification of goods - rate of GST - Supply of products such as frontal frames with fascia pads along with fixture as a complete set, would qualify as a mixed supply for the reasons discussed hereinabove. The said ‘mixed supply’ can be classified as supply of any of the three supplies i.e. Frontal frames (Tariff heading 73269080) OR Fascia pads (Tariff heading 39201099) OR Fixtures (Tariff heading 73181500/73181600/73182200), for the reasons discussed hereinabove and the GST applicable thereon will be 18%(9% SGST + 9% CGST). - AAR

  • Utilisation of Input Tax Credit - The applicant cannot use the Input Tax Credit Balance available in the Electronic Credit Ledger legimately earned on the inputs/raw-materials/inward supplies(meant for outward supply of Bullions) towards the GST liability on ‘Castor Oil Seed’ which were procured from Agriculturists and subsequently meant for onward supply. - AAR

  • Governmental Authority or not - National Institute of Design, Paldi, Ahmedabad (NID) - Since it has been established from the discussions hereinabove, that NID has been formed by an Act of Parliament, the applicant will have to register themselves as a tax deductor under the provisions of Section 24 of the CGST Act, 2017 read with Section 51 of the Act, if they fulfil the condition of ‘fifty-one percent, or more participation of Government by way of equity or control, to carry out any function’. - AAR

  • Classification of goods - rate of GST - Plastic Toys - The Toys of plastic manufactured and supplied by the applicant fall under 95030030 - the GST applicable on the said product is 12% - AAR

  • Classification of services - Health Care Services - The medicines, consumables and implants used in the course of providing health care services to in-patients for diagnosis or treatment for patient opting with or without packages along with allied services i.e. (room rent/food/doctor fees Etc.) provided by hospital is a "Composite Supply” - Exempt from GST - AAR

  • Seeking grant of Bail - vicarious liability - evasion of GST - The economic offence having deep rooted conspiracies and involving huge loss of public funds needs to be viewed seriously and considered as grave offences affecting the economy of the country as a whole and thereby posing serious threat to the financial health of the country. - HC

  • Income Tax

  • Declaration filed under section 4(1) of the DTVSV Act - From a plain reading of the provisions of the DTVSV Act and the Rules it emerges that the Respondent- Designated Authority would have to issue Form-3 as referred to in Section 5 (1) specifying the amount payable in accordance with section 3 of the DTVSV Act in the case of declarant who is an eligible appellant not falling under section 4(6) nor within the exceptions in section 9 of the DTVSV Act, which fact appears to be undisputed. - HC

  • Estimation of income - Accommodation entry provider - the only material with the Revenue authorities is that of the statement of entry operators confirming that they have received brokerage/commission at the rate of 0.25% to 0.5% from the assessee, which fact has not been doubted by the authorities. Though the ld.CIT(A) has to some extent justified to restrict the impugned disallowance, but he has not given due weightage to the only evidence available on record in form of statement of entry operators has not been considered logically. - AT

  • Legality of approval granted by the designated superior authority u/s 153D - The addl. CIT in short appears to have adopted a short cut in the matter and an undertaking from AO was considered adequate by him/ her to accord approval in all assessments involved. Manifestly, the Additional CIT, without any consideration of merits in proposed adjustments with reference to appraisal report, incriminating material collected in search etc. has proceeded to grant a simplicitor approval. - AT

  • Unaccounted income disclosed during the course of survey - In the present case, not only one partner of the assessee made discloser of additional undisclosed income, but it was endorsed by two other partners in presence of their CA. - During first appellate stage the assessee try to introduce new facts that the undisclosed additional income was earned from the business of sarees and dress material for which no separate accounts were maintained. - If the mistake was realised later on the statement should have been retracted immediately. - Additions confirmed - AT

  • Allowability of development expenses - CIT(A) was justified in allowing the claim of estimated development expenses booked by the assessee in the Profit & Loss Account on matching concept by adopting scientific method allowable u/s 37(1) of the Act and thus the theory adopted by the Ld. A.O of the assessee having received the development charges in cash is just in air and has no legs to stand for since there is no evidence to prove it and it is merely on surmises and conjectures. - AT

  • Customs

  • Benefit of advance authorisations - There are several matters in dispute between parties, viz. petitioner and respondents. Petitioner claims that imported goods undergo certain process, which is a manufacturing process, whereas test reports and factual position contended by the other side has been stated to be otherwise. In such disputed scenario, it is not be a case where it can be said that the revenue department is acting without powers or authority having regard to provisions referred to - HC

  • Territorial Jurisdiction - Levy of penalty u/s 112(a) of the Customs Act, 1962 - import of confectionery items from Dubai - Allegation of under valuation by DRI - As Section 1, sub section (2) of the Customs Act, 1962 admittedly is having jurisdiction in only within whole of India and its territories and cannot be extended beyond India and the appellant is located outside of India, therefore, no penalty can be imposed on the appellant under Customs Act, 1962 - AT

  • IBC

  • Initiation of CIRP - Since it has been categorically covenanted that the payment had to be made on or before 31/03/2020, on failure to do so it would then be held to be in default. The date of default thus has to be construed only as 31/03/2020 and not otherwise. The contention of the Petitioner that the default has occurred on 31/07/2019 cannot be accepted. - Tri

  • Service Tax

  • Issuance of pre-show cause notice consultation - demand of service tax - The contesting respondents were mandatorily required to have a pre-show cause notice consultation with the petitioner-company and that having not being done in the instant matter, the proceedings initiated by the contesting respondents via the impugned show cause notice are non-est in law. - HC

  • Violation of principles of natural justice - SVLDRS - The scheme has been brought in to have amicable resolution of disputes securing interest of revenue and start the new GST regime and to give benefit to eligible persons participating in the scheme of waiver of interest, fine, penalty, immunity from prosecution. It has been observed that non compliance of principles of natural justice would impeach the decision making process rendering the decision invalid in law. - HC

  • Levy of penalty u/s 78 of FA - allegation of evasion of service tax - The assessee being a public sector undertaking of the Government of India is an additional factor to hold that any mala fide intention to evade payment of Service Tax would not be attributed, to levy penalty under Section 78 ibid. - AT

  • Central Excise

  • Quantification of CENVAT Credit reversed - common Input/Input Services used - There is indeed serious error in calculation of the amount to be paid under Rule 6(3). As regard the terms “total Cenvat Credit” to be considered for the formula as provided under Rule 6 (3A)- AT

  • VAT

  • Levy of Interest - The respondent is not justified in levying interest from the original assessment year - In the case on hand, Rathna Residency is not the petitioner before this Court. It is only Rainbow Restaurant that is the petitioner before this Court. Rainbow Restaurant is contending that it cannot be considered as “a restaurant attached to a star hotel”. Thus the petitioner was under a bonefide impression that they are not liable to pay tax at a higher rate. Therefore, as per Section 42 of the Act, only from the date on which the petitioner's liability is quantified, the question of paying tax would arise. - HC


Articles


Notifications


Circulars / Instructions / Orders


News


Case Laws:

  • GST

  • 2021 (4) TMI 568
  • 2021 (4) TMI 567
  • 2021 (4) TMI 566
  • 2021 (4) TMI 565
  • 2021 (4) TMI 564
  • 2021 (4) TMI 563
  • 2021 (4) TMI 562
  • 2021 (4) TMI 561
  • 2021 (4) TMI 560
  • 2021 (4) TMI 559
  • 2021 (4) TMI 558
  • 2021 (4) TMI 557
  • 2021 (4) TMI 556
  • 2021 (4) TMI 555
  • 2021 (4) TMI 554
  • 2021 (4) TMI 553
  • 2021 (4) TMI 552
  • 2021 (4) TMI 551
  • Income Tax

  • 2021 (4) TMI 550
  • 2021 (4) TMI 549
  • 2021 (4) TMI 548
  • 2021 (4) TMI 547
  • 2021 (4) TMI 546
  • 2021 (4) TMI 545
  • 2021 (4) TMI 544
  • 2021 (4) TMI 543
  • 2021 (4) TMI 542
  • 2021 (4) TMI 541
  • 2021 (4) TMI 540
  • 2021 (4) TMI 539
  • 2021 (4) TMI 538
  • 2021 (4) TMI 537
  • 2021 (4) TMI 536
  • 2021 (4) TMI 535
  • 2021 (4) TMI 534
  • 2021 (4) TMI 533
  • 2021 (4) TMI 532
  • 2021 (4) TMI 531
  • 2021 (4) TMI 530
  • 2021 (4) TMI 529
  • 2021 (4) TMI 528
  • 2021 (4) TMI 527
  • Customs

  • 2021 (4) TMI 526
  • 2021 (4) TMI 525
  • Insolvency & Bankruptcy

  • 2021 (4) TMI 524
  • 2021 (4) TMI 523
  • 2021 (4) TMI 522
  • 2021 (4) TMI 521
  • Service Tax

  • 2021 (4) TMI 520
  • 2021 (4) TMI 519
  • 2021 (4) TMI 518
  • 2021 (4) TMI 517
  • 2021 (4) TMI 516
  • 2021 (4) TMI 515
  • Central Excise

  • 2021 (4) TMI 514
  • 2021 (4) TMI 513
  • 2021 (4) TMI 512
  • CST, VAT & Sales Tax

  • 2021 (4) TMI 511
  • 2021 (4) TMI 510
 

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