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Home e-Newsletters Index Year 2022 April Day 9 - Saturday

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TMI Tax Updates - e-Newsletter
April 9, 2022

Case Laws in this Newsletter:

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



Highlights / Catch Notes

    GST

  • Provisional attachment order of property - section 83 of the CGST Act, 2017 - This Court did not approve the provisional attachment of the goods, stock and receivables, more particularly, when the entire stock and receivables have been pledged and a floating charge has been created for the purpose of availing the cash credit facility with the provisional attachment of the goods, stock and receivables the entire business will come to a standstill. - Further dement account is also released - So far the prayer of the writ applicants with regard to release of electronic items including Mobile Phone, laptop and other documents seized during the search proceedings are concerned, same is also directed to be released forthwith, subject to conditions - HC

  • Classification of goods - Tertiary Treated Water - ‘purified water’, or not - the term “purified”, mentioned under the exemption clause of the relevant entry, will definitely not include the TTW. Hence, the impugned product, i.e., TTW, is rightfully eligible for exemption under entry at SI. No. 99 of the exemption notification no. 02/2017-C.T. (Rate) - AAAR

  • Valuation of service - contract for construction of road to the applicant by NHAI - time of supply - the escalated value shall be added to the original value of the contract and the total of the escalated value plus the original value of the contract will be the transaction/taxable value u/s 15 of the Act, on which GST must be discharged by the applicant. - AAR

  • Classification of supply - the applicant is supplying Composite supply of works contract as defined in clause (119) of section 2 of the Central Goods and Services Tax Act, 2017, involving predominantly earth work (that is, constituting more than 75per cent, of the value of the works contract) and such supply is being provided to the Central Government, i.e. Central railways. Therefore, the impugned supply of the applicant is covered under the provisions of Sr. No. 3 (vii) of Notification No. 11/2017 - CTR dated 20.06.2017 as amended from time to time. - Taxable @5% of IGST - AAR

  • Valuation of supply - supply of Superior Kerosene Oil (SKO) made by the applicant to MR Dealers (ration dealers) in terms of the license granted by the Director of Consumer Goods, Government of West Bengal - in respect of supply of goods, any amount charged for anything done by the supplier at the time of, or before delivery of goods shall be a part of the value of supply. - AAR

  • Seeking grant of Default Bail - availment and passing input tax credit fraudulently - The evidence in this case is mostly of documentary nature and also consists of digital record and it is in the custody of GST department and therefore, there does not appear any chances of tampering with the prosecution evidence, if the accused is released on bail - applicant-accused can be released on bail subject to certain conditions. - DSC

  • Income Tax

  • Exemption u/s 11 and 12 - The entire amount spent by the Assessee is through societies and trusts. It also runs its own project for the welfare of HIV and AIDS patients. In the above circumstances it has been held that merely because the Assessee charges management fees to defray the administrative costs it would not make its essential activity a business activity - HC

  • Characterization of income - rental income earned by the assessee as income from the business - The parting of possession of godown, particularly in the circumstances of the case, is more as an owner of a business asset, but not for exploiting a commercial asset. Assessing Officer, the Appellate Authority, and the Tribunal have considered the case in the right perspective and disallowed the claim of rental income as business income. - HC

  • Revision u/s 263 - disallowance of expenses - AO had after deliberating at length arrived at a plausible view i.e., allowing of the assessee’s claim for deduction of expenses to the extent the same were genuinely incurred in the course of its coal trading transactions on a non-delivery basis. In sum and substance, the Assessing Officer had after due application of mind restricted the assessee’s claim for deduction to only those expenses which were related to its non-delivery based transactions or paper transactions. - Pr.CIT had approached the issue in question absolutely on the basis of misconceived and incorrect facts - AT

  • Rectification of mistake - Computation of income u/s. 154 - the non adjustment of brought forward depreciation from profits and gains of business and profession, for determining the quantum of deduction u/s 80IA of the Act is a patent mistake amenable to rectification u/s 154 - The rectification so effected in the present case by adjusting brought forward depreciation against profits of the business before granting deduction u/s 80IA of the Act is therefore upheld. - AT

  • Revision u/s 263 by CIT - reopening on the basis of letter written by JCIT - In the case in hand the Ld. Revisional Authority has done no homework on its end but merely on basis of letter of JCIT pointing short comings, held that enquiry done by Ld. AO was not satisfactory. Infact where the Revisional Authority intends to set aside assessment order for lack of enquiry the direction in the order exercise of Revisional power should set or indicate the possible and prospective path of enquiry that the AO should follow further. Which is also not done in present case. - AT

  • Revision u/s 263 by CIT - unaccounted sales/purchases - AO took a view which was legally plausible and possible at that point of time. Subsequent information could be a basis for initiating new re-assessment proceedings but not the basis for a revisionary proceedings u/s. 263 of the Act. Therefore, the exercise of revisional jurisdiction by the Ld. PCIT is without any justification. As far as the alternate plea of the assessee challenging the re-assessment proceedings is concerned, we are not inclined to go into the same as we have already held the proceedings u/s. 263 of the Act to be bad in law. - AT

  • Customs

  • Valuation of imported goods - enhancement of value on the basis of contemporaneous goods - the assessed value of bill of entry of similar goods cannot be the basis of enhancement of declared value by the appellant - AT

  • Indian Laws

  • Dishonor of Cheque - acquittal of the accused - abatement of proceedings on death of the original complainant - there is no provision in the Code of Criminal Procedure or in the Negotiable Instruments Act laying down that on account of death of payee, trial must be abate and merely because original complainant payee has died, there could not be abatement of the proceedings and legal heirs of original complainant are entitled to come forward and ask for their substitution in place of the complainant so as to proceed further with the trial. - HC

  • Service Tax

  • Refund of Service tax paid under protest - legal consultancy services received for winding up of business - business entity or not - Merely because the appellant is still registered under the Companies Act and has not get the said registration cancelled does not mean that they are carrying out business activity. It is nowhere the case of the Revenue that the appellant is indulged into any activity relating to its business after the year 2008. The learned Commissioner has specifically recorded in the impugned order that there is no dispute that the appellant have stopped their business activity and are in the process of winding up - The appellant cannot be saddled with any tax liability only on the basis of apprehension. - AT

  • Classification of services - business auxiliary services or not - Toll Charges - Applicability of Circular No.152/3/2012 - No fixed amount has been retained by the Appellant, on the contrary, he is required to pay a fixed amount on weekly basis to NHAI. Thus, consideration is flowing from the Appellant to NHAI and not vice-versa. Therefore, the said circular is not applicable in the scenario and the department has erred in applying the circular in the present case. - AT

  • Condonation of delay of 595 days in filing the appeal - sufficient cause for delay existing or not - declaration under “Arrears category” of the Sabka Vishwas Legacy Dispute Resolution Scheme, 2019 (SVLDRS) - Section 5 of Limitation Act - Doctrine of Equality - None of the said two grounds explains the delay that occurred between 11.12.2018 and 11.03.2019. The non-filing of appeal by the consultant also is not the ‘sufficient cause’ because appellant was required to pursue his consultant and to ensure that his appeal gets filed before 11.03.2018 but appellant failed - the same is definite inaction on part of appellant resulting out of his negligence. - AT

  • Central Excise

  • Levy of duty of excise - captive consumption of by-production - It is observed that CO2 herein is produced in the fermentation tank during fermentation of a mixture called “wort” which ultimately ferments to Beer, the final product however with the simultaneous inevitable emission of CO2 gas. This particular observation is sufficient to hold that formation of CO2 cannot be called as manufacture - no separate treatment is given to “wort” mixture for emission of CO2 which is inevitable consequence of fermentation of said “wort” mixture into Beer that CO2 in the present facts and circumstances cannot be held to have been manufactured product which is excisable. - AT


Articles


Notifications


Circulars / Instructions / Orders


News


Case Laws:

  • GST

  • 2022 (4) TMI 411
  • 2022 (4) TMI 410
  • 2022 (4) TMI 409
  • 2022 (4) TMI 408
  • 2022 (4) TMI 407
  • 2022 (4) TMI 406
  • 2022 (4) TMI 405
  • 2022 (4) TMI 404
  • 2022 (4) TMI 403
  • 2022 (4) TMI 402
  • 2022 (4) TMI 401
  • 2022 (4) TMI 400
  • 2022 (4) TMI 399
  • Income Tax

  • 2022 (4) TMI 398
  • 2022 (4) TMI 397
  • 2022 (4) TMI 396
  • 2022 (4) TMI 395
  • 2022 (4) TMI 394
  • 2022 (4) TMI 393
  • 2022 (4) TMI 392
  • 2022 (4) TMI 391
  • 2022 (4) TMI 390
  • 2022 (4) TMI 389
  • 2022 (4) TMI 388
  • 2022 (4) TMI 387
  • 2022 (4) TMI 386
  • 2022 (4) TMI 385
  • 2022 (4) TMI 384
  • 2022 (4) TMI 383
  • 2022 (4) TMI 382
  • 2022 (4) TMI 381
  • 2022 (4) TMI 380
  • 2022 (4) TMI 379
  • 2022 (4) TMI 355
  • 2022 (4) TMI 354
  • Customs

  • 2022 (4) TMI 378
  • 2022 (4) TMI 377
  • 2022 (4) TMI 376
  • 2022 (4) TMI 375
  • Insolvency & Bankruptcy

  • 2022 (4) TMI 374
  • 2022 (4) TMI 373
  • 2022 (4) TMI 372
  • 2022 (4) TMI 371
  • Service Tax

  • 2022 (4) TMI 370
  • 2022 (4) TMI 369
  • 2022 (4) TMI 368
  • 2022 (4) TMI 367
  • 2022 (4) TMI 366
  • Central Excise

  • 2022 (4) TMI 365
  • 2022 (4) TMI 364
  • 2022 (4) TMI 363
  • 2022 (4) TMI 362
  • 2022 (4) TMI 361
  • CST, VAT & Sales Tax

  • 2022 (4) TMI 360
  • Indian Laws

  • 2022 (4) TMI 359
  • 2022 (4) TMI 358
  • 2022 (4) TMI 357
  • 2022 (4) TMI 356
  • 2022 (4) TMI 353
 

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