TMI Tax Updates - e-Newsletter
January 12, 2023
Case Laws in this Newsletter:
Articles
By: DEVKUMAR KOTHARI
Summary: A recent notification from the Central Board of Direct Taxes (CBDT) mandates the reporting of all interest paid or credited to account holders, with no minimum threshold, except for Jan Dhan accounts. This change, effective from January 5, 2023, abolishes the previous limit of 5,000 for reporting interest income. The notification aims to enhance financial transparency by requiring detailed reporting of financial transactions, including exempted interest, although it raises concerns about increased administrative burdens. The new guidelines apply to interest transactions from the financial year 2022-23 onwards.
By: DR.MARIAPPAN GOVINDARAJAN
Summary: The article discusses the role of notifications under the Goods and Services Tax (GST) laws, emphasizing the government's authority to issue notifications to implement the provisions of the GST Act. Section 164 of the CGST Act empowers the Central Government to make rules, including retrospective ones, and impose penalties for contraventions. The article details the number of notifications issued annually from 2016 to early 2023 across various tax categories. It also highlights advance rulings on the applicability of specific notifications, illustrating their impact on businesses. Notifications are subject to parliamentary review, ensuring legislative oversight.
By: Vivek Jalan
Summary: A government panel highlighted that the procedure allowing a maximum of three adjournments per case is often ignored, exacerbating case backlogs. This issue is prevalent in faceless tax assessments, where e-portals close without addressing adjournment requests. Taxpayers should document grievances on the e-portal and request hearings via video conferencing. If denied a fair hearing, taxpayers may appeal directly to the High Court under Article 226. A court ruling emphasized that authorities must respond to adjournment requests and provide opportunities for video hearings, setting aside assessments made without such provisions as arbitrary.
By: Bimal jain
Summary: The Appellate Authority for Advance Ruling (AAAR) in Telangana ruled that a sub-contractor cannot claim GST exemption for services provided to educational institutions on behalf of a main contractor. M/s Magnetic InfoTech Pvt Ltd, which offered pre and post-examination services to educational institutions, sought clarification on GST exemption eligibility under Notification No. 12/2017-Central Tax (Rate). The AAAR determined that the exemption applies only when services are provided directly to an educational institution. Since the sub-contractor provides services to the main contractor, not directly to the institution, the exemption does not apply.
By: Bimal jain
Summary: The Authority for Advance Ruling (AAR) in Kerala ruled that training services provided by a company do not qualify for Goods and Services Tax (GST) exemption as they do not meet the criteria of an 'educational institution' under the Services Exemption Notification. The company, offering online educational services, claimed their services should be exempt under Sl. No. 66(a) of the notification. However, the AAR determined that the services do not grant recognized qualifications or form part of an approved vocational course, classifying them instead as commercial training and coaching services, thus subject to GST.
News
Summary: Day 2 of Startup India Innovation Week saw significant participation from emerging entrepreneurs. Organized by DPIIT, the event featured various activities across India, including a workshop in Kochi for women entrepreneurs, attended by over 75 participants. Sessions covered topics like product validation and fundraising. A virtual pitching session for women entrepreneurs from the northeast allowed interaction with investors. A webinar on global expansion featured experts from India and abroad. In Telangana, a startup carnival highlighted innovation and acceleration themes, while a webinar in Kanchipuram focused on transitioning from academia to entrepreneurship. A three-day event in Coimbatore engaged over 1000 students and innovators.
Summary: Direct tax collections for the fiscal year 2022-23 up to January 10, 2023, reached Rs. 14.71 lakh crore, marking a 24.58% increase from the same period last year. Net collections, after refunds, were Rs. 12.31 lakh crore, 19.55% higher than the previous year, achieving 86.68% of the budget estimates. Corporate Income Tax collections grew by 19.72%, while Personal Income Tax collections, including Securities Transaction Tax, increased by 30.46%. Refunds issued totaled Rs. 2.40 lakh crore, a 58.74% rise from the prior year.
Summary: Madhya Pradesh is highlighted as an ideal investment destination by a government official, inviting global investors to participate in its growth. The state offers significant opportunities in sectors like agriculture, food processing, pharmaceuticals, automobiles, tourism, textiles, and renewable energy. With a strategic location and substantial contributions to organic cotton production and renewable energy, Madhya Pradesh is poised for economic expansion. The state's governance and infrastructure development align with national initiatives led by the Prime Minister, aiming to propel India towards becoming a top global economy. The official expressed optimism about Madhya Pradesh's role in advancing India's economic progress.
Notifications
Customs
1.
03/2023 - dated
11-1-2023
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Cus (NT)
Customs (Assistance in Value Declaration of Identified Imported Goods) Rules, 2023
Summary: The Customs (Assistance in Value Declaration of Identified Imported Goods) Rules, 2023, effective February 11, 2023, establish procedures for identifying imported goods potentially undervalued in declarations. The rules define roles for Screening and Evaluation Committees to assess and confirm such cases. Importers must declare goods using specified codes and fulfill obligations to demonstrate value accuracy. The Board may issue orders for identified goods, specifying obligations and checks. Exceptions include duty-free imports, goods with fixed tariff values, and government imports. Reviews assess the need for ongoing specification. Processes will be digitized for efficiency.
GST - States
2.
1242/XI-2-22-9(47)/ 17-T.C.205-U.P.Act-1-2017-Order- (260)-2022 - dated
31-12-2022
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Uttar Pradesh SGST
Seek to amend notification No. KA.NI.-2-836/XI-9(47)/17-U.P. Act.-1-2017-Order-(06)-2017 Dated 30.06.2017
Summary: The notification amends a previous order under the Uttar Pradesh Goods and Services Tax Act, 2017, effective from January 1, 2023. It revises tax rates on specific items in different schedules. In Schedule I (2.5%), changes include the classification of ethyl alcohol for oil companies and bran residues. Schedule II (6%) updates include fruit pulp drinks and educational boxes. Schedule III (9%) addresses ethyl alcohol and spirits, excluding those for oil companies. The amendments are made by the Governor on the Council's recommendations, aiming to refine tax classifications and rates.
3.
1241/XI-2-22-9(47)/17-T.C.204-U.P.Act-1-2017-Order- (259)-2022 - dated
31-12-2022
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Uttar Pradesh SGST
Seek to amend notification No. KA.NI.-2-837/XI-9(47)/17-U.P. Act.-1-2017-Order-(07)-2017 Dated 30.06.2017
Summary: The Governor of Uttar Pradesh, exercising powers under the Uttar Pradesh Goods and Services Tax Act, 2017, has amended a previous notification dated June 30, 2017. The amendments involve changes to the schedule of taxable goods, specifically replacing the entry for aquatic, poultry, and cattle feed with a new description that includes various types of feed and additives. Additionally, a new entry has been added for husk of pulses and related concentrates. These changes will take effect from January 1, 2023, as per the order issued by the state's Principal Secretary.
4.
1240/XI-2-22-9(47)/17-T.C.203-U.P.Act-1-2017-Order-(258)-2022 - dated
31-12-2022
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Uttar Pradesh SGST
Seek to amend notification No. KA.NI.-2-843/XI-9(47)/17-U.P. Act.-1-2017-Order-(10)-2017 Dated 30.06.2017
Summary: The notification amends a previous order under the Uttar Pradesh Goods and Services Tax Act, 2017. It introduces an explanation for an exemption related to the renting of residential dwellings to registered proprietors, specifying that the exemption applies when the dwelling is rented for personal use and not for the proprietorship concern. Additionally, entry S. No. 23A and its related entries are omitted. These amendments take effect from January 1, 2023, as ordered by the Governor, based on the Council's recommendations and in the public interest.
5.
1239 /XI-2-22-9(47)/17-T.C.202-U.P.Act-1-2017-Order- (257)-2022 - dated
31-12-2022
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Uttar Pradesh SGST
Seek to amend notification No. KA.NI.-2-851/XI-9(47)/17-U.P. Act.-1-2017-Order-(18)-2017 Dated 30.06.2017
Summary: The notification amends a prior Uttar Pradesh Goods and Services Tax (UP GST) notification dated June 30, 2017. Effective January 1, 2023, it revises the entries for essential oils in the table under S. No. 3A. The updated entries specify various essential oils, including peppermint and other mints like spearmint, water mint, horsemint, bergamot, and mentha arvensis. These changes apply to transactions involving both unregistered and registered persons. The amendment is issued under the authority of the Governor, following recommendations from the Council, and is published as per Article 348 of the Indian Constitution.
Circulars / Instructions / Orders
SEBI
1.
SEBI/HO/IMD/IMD-PoD-1/P/CIR/2023/8 - dated
10-1-2023
Change in control of Portfolio Managers providing Co-investment services
Summary: The Securities and Exchange Board of India (SEBI) has modified a previous circular regarding the procedure for obtaining prior approval in cases of changes in control of Portfolio Managers providing co-investment services. Portfolio Managers must inform existing investors about any proposed changes in management and offer them the option to exit without any exit load within 30 calendar days. This ensures investors can make informed decisions about their investments. The circular maintains all other existing requirements and is issued under the authority of the SEBI Act, 1992, and related regulations to safeguard investor interests and regulate the securities market.
2.
SEBI/HO/MRD/MRD-PoD-3/P/CIR/2023/11 - dated
10-1-2023
Introduction of future contracts on Corporate Bond Indices
Summary: The Securities and Exchange Board of India (SEBI) has authorized stock exchanges to introduce derivative contracts on corporate bond indices rated AA+ and above to enhance bond market liquidity and provide hedging opportunities for investors. Stock exchanges must submit detailed proposals to SEBI for approval, covering index methodology, contract specifications, trading mechanisms, and risk management frameworks. The circular outlines requirements for index composition, contract value, trading hours, contract tenure, settlement mechanisms, position limits, and risk management. Stock exchanges and clearing corporations must implement necessary systems and amend regulations to comply with this directive, aimed at protecting investors and regulating the securities market.
3.
SEBI/HO/MRD/MRD-PoD-3/P/CIR/2023/10 - dated
10-1-2023
Comprehensive Framework on Offer for Sale (OFS) of Shares through Stock Exchange Mechanism
Summary: The Securities and Exchange Board of India (SEBI) has revised the framework for the Offer for Sale (OFS) of shares through the stock exchange mechanism. The updated guidelines include definitions, eligibility criteria, and operational requirements for promoters, non-promoter shareholders, and investors. The OFS mechanism is available on major exchanges like BSE, NSE, and MSEI for companies with a market capitalization of INR 1,000 crore and above. The framework outlines procedures for setting floor prices, cooling-off periods, and allocation methodologies. It also includes provisions for discounts to retail investors and specifies risk management and settlement processes. The circular applies to equity shares, REITs, and InvITs, effective 30 days from issuance, replacing previous SEBI circulars.
Customs
4.
01/2023 - dated
11-1-2023
Customs (Assistance in Value Declaration of Identified Imported Goods) Rules, 2023 (CAVR, 2023)
Summary: The Customs (Assistance in Value Declaration of Identified Imported Goods) Rules, 2023 (CAVR, 2023) were introduced to address undervaluation issues in imports. The rules outline additional obligations for importers of certain goods where declared values may not be accurate. The process involves a Screening Committee and an Evaluation Committee to assess and recommend goods for scrutiny. Importers must declare specific details when filing the bill of entry and may need to fulfill additional obligations if required by the Customs Automated System. The rules emphasize compliance with the Customs Valuation (Determination of Value of Imported Goods) Rules, 2007 for further proceedings.
Companies Law
5.
02/2023 - dated
9-1-2023
Filing of Forms GNL-2 (filing of prospectus related documents) and MGT-14 (filing of Resolutions relating to prospectus related documents) due to migration from V2 Version to V3 Version in MCA 21 Portal from 7th January, 2023 to 22nd January, 2023
Summary: The Ministry of Corporate Affairs announced that due to the migration from V2 to V3 Version on the MCA-21 Portal, companies must file Forms GNL-2 and MGT-14 physically from January 7 to January 22, 2023. These forms, related to prospectus documents, should be submitted with an electronic copy to the Registrar without fees, accompanied by an undertaking to file electronically once available. No additional fees will apply during the disabled filing period. The Ministry will place these forms on its website for inspection as per the Companies Act, 2013.
6.
01/2023 - dated
9-1-2023
Release Plan of 45 company e-Forms in MCA 21 Version 3.0
Summary: The Ministry of Corporate Affairs in India announced the release of 45 company e-Forms in MCA21 Version 3.0, which will be unavailable in Version 2 from January 7 to January 22, 2023. To accommodate this transition, stakeholders are granted an additional 15 days to file these forms without incurring extra fees if their deadlines fall within this period. The forms cover various corporate procedures, including director appointments, company conversions, and foreign company filings. This decision was approved by the Competent Authority, and an annexure lists the specific forms affected by this update.
Highlights / Catch Notes
GST
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Court Overturns Rejection of Recall Application, Restores Case for Reconsideration Due to Natural Justice Violation.
Case-Laws - HC : Violation of principles of natural justice - ex-parte order - the first appellate authority was not justified in rejecting the application for recalling the ex-parte order, and thus, the order passed on the application rejecting the recall of the ex-parte order is hereby set aside - matter restored back - HC
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High Court Dismisses Appeal on Sales Suppression and Record-Keeping Violations Under CGST, TGST, and IGST Acts.
Case-Laws - HC : Allegation of suppression of sales - failure to maintain records - Non-compliance with three statutes - the CGST, TGST, IGST Acts - All the three points on which the order of Original Authority is predicated do not call for interference even if the grounds urged/raised by the writ petitioner before the second respondent-Appellate Authority are considered on merits - Petition dismissed. - HC
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AAAR reviews AAR decision on GST classification, questions jurisdiction concerning educational institution status under CGST and IGST Acts.
Case-Laws - AAAR : Classification of goods - rate of GST - educational institution or not - Question was asked about CGST Act - AAR answered the same as per CGST and IGST act - The Ruling passed by the Advance Ruling Authority, on applicability of a Notification without discussing the jurisdiction of being the case, The Ruling passed by the Advance Ruling Authority, on applicability of a Notification without discussing the jurisdiction of the said Notification, appears to be stretched beyond the legal boundary. - AAAR
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Appellate Authority Confirms Tax Exemption for Hospital Supply Services Under Article 243G, Supporting Panchayat Government Functions.
Case-Laws - AAAR : Supply or not - pure services - The service rendered by the APMSIDC is in relation to a function entrusted to a Panchayat under Article 243G of the Constitution of India. (the appellant is providing Pure Service (supply / distribution of drugs, consumables and equipment for Hospitals) to State Government by way of an activity in relation to a function entrusted to a Panchayat - Benefit of exemption allowed - AAAR
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COVID-19 Vaccinations at Hospitals Taxable Under GST at 5%; No Exemption for Supply Transactions.
Case-Laws - AAAR : Classification of supply - administering of COVID-19 vaccination by hospitals - The outlet of supply or the supplier cannot decide whether a transaction can be classified as supply or not. There is transfer of medicine to the recipient when he approaches the Covid Vaccination Centre for vaccination, the recipient of vaccine makes a conscious choice of vaccine, and also pays a price for it as per the guidelines of the government - exemption is not allowed in the instant case against the claim of the applicant. - Taxable @5% of GST - AAAR
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GST Exemption for Leasing Hostel Rooms Hinges on End-Use; No Evidence of Residential Use Found in This Case.
Case-Laws - AAAR : Exemption from GST - amount received for leasing residential hostel rooms - If there is a conditional exemption in GST based on end-use, the end-use has to be determined with respect to facts and for the recipient of the services only from the supplier directly and it is not for the department to see how the services are finally put to use by the recipient in turn and so on. In the instant case there is no evidence to show that either the building was a residential dwelling or it is going to be put to use as residence for himself by the lessee - AAAR
Income Tax
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Court Rules Reopening Tax Assessment u/s 147 Invalid; Change of Opinion Without New Evidence.
Case-Laws - HC : Reopening of assessment u/s 147 - change of opinion - The Assessing Officer simply has accorded a fresh consideration and come to a conclusion that the assessee ought to have claimed benefit of deduction under section 35ABB which would have resulted in reducing the allowance under section 32 - In the absence of any tangible material, the present case is nothing but a case of change of opinion and thus does not satisfy the jurisdictional foundation under section 147 of the Act. - HC
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High Court Quashes Tax Notice: Improper Jurisdiction in Section 147 Assessment Due to Incorrect Approval u/s 151(ii.
Case-Laws - HC : Reopening of assessment u/s 147 - Jurisdiction to issue sanction - appropriate authority to grant approval for issuance of notice u/s. 148 - the approval for issuance of notice u/s. 148 ought not have been obtained from the Additional Commissioner of Income Tax but from the authority specifically mentioned u/s. 151(ii) of the Act - Notice quashed - HC
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Assessment Notice Invalid: Lacks Officer Signature, Can't Reassess Income u/ss 147 & 148.
Case-Laws - HC : Reopening of assessment u/s 147 - notice passed u/s.148 was not signed by the AO digitally or manually - not a curable defect u/s 292B - - The notice u/s.148 having no signature affixed on it, digitally or manually, the same is invalid and would not vest the Assessing Officer with any further jurisdiction to proceed to reassess the income of the petitioner. - HC
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Reopening Assessment for 2013-14: Deceased's Undeclared Commission Income to be Taxed, TDS Credit Allowed.
Case-Laws - AT : Credit of TDS - income earned by Late assessee for services rendered by him to the two companies before his death - in the return of income filed by the legal representative of the deceased for AY 2013-14, the said commission income has not been declared - in the interest of justice, it would be fair and just if we direct the Ld. AO to re-open the assessment of the deceased (Individual) for AY 2013-14 to bring to tax the impugned commission income and allow the credit of TDS. - AT
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Tax Act Update: Banks Can Claim Deductions for Both Bad Debt Write-Offs and Provisions for Rural Advances.
Case-Laws - AT : Provision for bad and doubtful debts u/s 36(1)(viia) against the advances of rural branches - The circular mentions that the provisions of new clause (viia) of section 36(1), relating to the deduction on account of provisions for bad and doubtful debts, is distinct and independent of the provisions of section 36(l)(vii) relating to allowance of deduction of the bad debts. Scheduled commercial banks would continue to get the benefit of the write off of the irrecoverable debts under section 36(1)(vii) in addition to the benefit of deduction of the provision for bad and doubtful debts under section 36(1)(viia) - AT
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Interest Disallowance Not Justified When Own Funds Exceed Interest-Free Loans Per Section 36(1)(iii) of Income Tax Act.
Case-Laws - AT : Addition of interest attributable on the diversion of loan fund - Once own fund of the assessee exceeds the amount of interest free loans and advances, then a presumption can be drawn that the interest free loans and advances has been given by the assessee out of its own interest free fund available with it. Thus, in such a situation the disallowance of interest u/s 36(1)(iii) is not warranted. - AT
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Reassessment Challenged u/s 147 Due to Lack of New Evidence or Undisclosed Facts by Assessee.
Case-Laws - HC : Reopening of assessment u/s 147 - Reason to believe - the AO had disallowed some of the expenses which had been reflected in the break-up under the head “details of advertisement and sales promotion expenses” while passing the final order of assessment, which reflects that the AO had applied its mind to the appellant’s claim while passing the order under section 143(3) - reasons do not disclose as to what material or fact was not disclosed by the assessee. - HC
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Documents Found in Search Lead to Section 68 Addition; Section 292C Presumption Requires Contextual Evaluation, Not Mechanical Application.
Case-Laws - AT : Addition u/s 68 - unexplained cash credit - as during the course of search, certain documents were found - the presumption under section 292C of the Act is rebuttable presumption and the document has to be considered considering the totality of the facts of the case. The deeming provision cannot be applied mechanically ignoring the facts of the case and the surrounding circumstances. - AT
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Penalty u/s 271(1)(b) for Non-Compliance with Special Audit Requirement Avoided Due to Reasonable Cause u/s 273B.
Case-Laws - AT : Levy of penalty u/s. 271(1)(b) - Non compliance requirement in respect of special audit u/s. 142(2A) - Assessment proceedings furnished by the Ld. Counsel, it is evidently demonstrated that there exists a reasonable cause within the meaning of section 273B of the Act which prevented the assessee in meeting the compliance requirement in respect of special audit u/s. 142(2A) of the Act. - AT
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Section 11(4A) of Income Tax Act must align with Section 2(15); separate accounts prove compliance for tax exemption.
Case-Laws - HC : Exemption u/s 11 - Section 11(4A) must be interpreted harmoniously with Section 2(15), with which there is no conflict. Carrying out activity in the nature of trade, commerce or business, or service in relation to such activities, should be conducted in the course of achieving the GPU object, and the income, profit or surplus or gains must, therefore, be incidental. The requirement in Section 11(4A) of maintaining separate books of account is also in line with the necessity of demonstrating that the quantitative limit prescribed in the proviso to Section 2(15), has not been breached. - HC
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Trust Seeks Section 80G Approval for Charitable Status, Supporting Vedic Scholars and Heritage Education During COVID-19.
Case-Laws - AT : Approval u/s 80G - recognition as a “Charitable Institution” or “Religious Institution” - The Vedic Scholars were identified and felicitated irrespective of their caste, creed or religion. The Trust has given financial assistance to various people, irrespective of caste, creed or religion, involved in Indian Heritage Education. During Covid, many were in financial difficulty and the Trust provided financial assistance and distributed food kit, clothes, medicines for the needy Vedic scholars irrespective of their caste, religion or gender. All the expenses were met out of voluntary contributions or donations. - Thus, the activities carried on by the assessee-Trust are CHARITABLE in the nature - AT
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Section 68: Assessee's HSBC London Deposits Lacked Credible Source Evidence, Rejected by Authorities.
Case-Laws - AT : Addition u/s 68 - the deposit in HSBC London - the assessee has not been able to provide any cogent evidence for the source of deposits. The submissions of the assessee have been without any reliable material. The explanation given by the assessee is only self-serving and has correctly been rejected by the lower authorities. - AT
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Transfer Pricing Adjustment Removed for Overseas Support Fees in Securities Trading Case.
Case-Laws - AT : TP adjustment on account of payment of overseas support fee - The assessee has its head office outside India and the decision, on the basis of which the assessee gets its business viz. the decision to buy and sell securities on the Indian market are made by the head office situated outside India. The overseas sales and trading support fees are fees paid directly for such services which generate revenues for the assessee. - AO/TPO directed to delete the transfer pricing adjustment on account of the overseas support service fee. - AT
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ESPN India's income at arm's length faces no adjustments; distribution revenue not taxable in India. No additional profit needed.
Case-Laws - AT : Income deemed to accrue or arise in India - As undisputed factual position that ESPN India has been remunerated at arm’s length and there are no adjustments suggested by the TPO in any of the assessment years under dispute. That being the case, no further attribution of profit can be made to the PE. - the distribution revenue received by the assessee is not taxable in India. - AT
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Unexplained Investment Clarified as Loan from Former Employer; Department's Salary Argument Dismissed Due to AO's Original Position.
Case-Laws - AT : Unexplained investment - The basis of addition made in the present case is the source of investment remaining unexplained. Now, the assessee having explained the source of investment - DR cannot make out a new case for confirming the addition by stating that though the source of investment stands explained by loan taken by the assessee from his ex-employer, but since this loan was not repaid by the assessee, therefore, it partakes the nature of income by way of salary. This definitely was not the case of the AO- AT
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Assessee's Working Capital Adjustment Approved, Aligns with OECD Guidelines for Comparable Companies' Margin Computation.
Case-Laws - AT : TP Adjustment - Working capital adjustment for computing the margin of the comparables - in keeping with the OECD guidelines, endeavor should be made to bring in comparable companies for the purpose of broad comparison. Therefore, the working capital adjustment as claimed by the Assessee should be allowed. We hold and direct accordingly. - AT
Customs
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Refund Claims Approved Despite Missing Documents Due to Seizure; Rejection Condition Unmet for Special Additional Duty.
Case-Laws - AT : Refund of SAD - refund claims filed without requisite documents - Undisputedly the necessary documents which were required for filing this refund application were under seizure, and the refund application would not have been acknowledged by the revenue authorities without these documents. The condition which is stated to be the reason for rejection of the refund claims is something which could not have been complied with. - Claim allowed - AT
IBC
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NCLT Can Remove Resolution Professional for Violating Insolvency Code and Hindering Corporate Insolvency Process. Investigation Recommended.
Case-Laws - AT : Jurisdiction of NCLT to Remove Resolution Professional - the Appellant was proceeding contrary to the statutory provisions as contained in the IBC and also delaying the smooth conclusion of CIRP - there is no defect in the impugned order warranting interference by this Tribunal. On the contrary the conduct of the appellant/RP which was observed by the Adjudicating Authority and reflected so in the impugned order is sufficient enough to direct IBBI to conduct an inquiry regarding the role played by the RP in this matter. - AT
Service Tax
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Service Tax Not Applicable: Hospital's Mutually Beneficial Support to Doctors Exempt from Service Tax Obligation.
Case-Laws - AT : Levy of service tax - providing business support service to doctors by providing facilities and administrative support to them - the arrangement was for joint benefit of both the parties with shared obligations, responsibilities and benefits and, therefore, no service was provided by the hospital to the doctors. - AT
Central Excise
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Court Demands Scientific Method for Classifying Special Boiling Point Spirit Under Excise Rules, Rejects Anecdotal Evidence.
Case-Laws - HC : Clandestine manufacture and removal - Special Boiling Point Spirit - The issue in the case on hand relates to classification of a product which requires to be done in a scientific manner and such classification cannot be determined and concluded based on statements given by either the Director of the company or their employees - HC
VAT
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Transition to Modern Bottle Seals: New Technology, Same Purpose for Appellant's Product Line.
Case-Laws - SC : Packing materials of the glass bottles - the appellant was manufacturing / producing “Spun Line Crown Cork” used for sealing the glass bottles. With the use of modern technologies, now the appellant is manufacturing “Double Lip Dry Blend Crowns”, which is also used for sealing the glass bottles. The earlier product being manufactured by the appellant was used for sealing glass bottles and subsequently the additional product produced with the use of modern technology is also being used for the same purpose namely, “sealing glass bottles”. Therefore, the same cannot be said to be manufacturing of goods different from being manufactured before such diversification. - SC
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Court Clarifies CST Rules: Branch Transfers and Interstate Sales in Bangalore Not Automatically Stock Transfers.
Case-Laws - HC : Disallowance of branch transfer - Interstate sale - CST - Mere location of the dealer in Bangalore, Karnataka and appellants at Bangalore, ipso facto, would not justify a conclusion that there was a stock transfer first and thereafter a sale to the said dealer. Even then, a first sale would have taken place from a depot to the dealer in Karnataka, thereafter, a second sale from the dealer to its customer. - HC
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