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Home e-Newsletters Index Year 2022 December Day 13 - Tuesday

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TMI Tax Updates - e-Newsletter
December 13, 2022

Case Laws in this Newsletter:

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



Highlights / Catch Notes

  • GST:

    Seeking provisional release of detained goods alongwith vehicle - when the goods are in transit and are to be confiscated they are required to be seized for the purpose of invocation of section 130 of the GST Act. Therefore, in such circumstances, provisions of section 67(2) of the GST Act comes into play and seizure of goods under section 129 then becomes seizure u/s 67 of the GST Act so as to confiscate the same u/s 130 of the GST Act. - Once the goods are to be treated as seized u/s 67(2) of the GST Act, the same would be liable to be provisionally released u/s 67(6) - HC

  • GST:

    Classification of services - rate of tax - works contract service - The structures constructed by the applicant will be used for the purpose of business and therefore these contracts are not qualified for concessional rate of tax made to Government Entity. Hence the rate of tax applicable on supply of these contract services is 9% CGST & SGST each from the inception of the contracts. - AAR

  • GST:

    Supply of services or not - leasing of goods from one unit to other units in different states of the same assessee - pallets, crates and containers - In the current case, Cl PL, Maharashtra can enter into lease transaction with CIPL branches in other States registered under the respective State GST legislation across India say for e.g., Cl PL, Karnataka and such transaction would be taxable under GST as a lease transaction between the two branches which are deemed to be distinct entities for the purpose of GST legislation. - AAR

  • GST:

    ssification of goods - Glaze Gels - The impugned product (which is semi solid in nature) is definitely a 'Sugar Confectionery' but cannot be termed as a Sugar Boiled Confectionery - attracts GST rate of 18% - AAR

  • GST:

    Classification of goods - Tata Ace Garbage Tipper vehicle - Special Purpose Motor Vehicles or not - As shown in underlined portion above the applicant admitted that it can be used for transportation of goods. The starting words of Entry 8704 are “Motor Vehicles for the transport of goods”. Thus rate of tax applicable shall be 28%; as only refrigerated vehicles are taxable at 18%; and remaining all trucks covered under heading 8704 are taxable at 28%. - AAR

  • GST:

    Input Tax Credit - inputs are consumed in the construction of an immovable property outside MAFFFL's licensed premises - The sole issue involved in the present case is regarding entitlement of ITC with regard to the said pipeline. The applicant has failed to establish how it is entitled to ITC in the presence of the express legal bar to claim such ITC. Apart from the entitlement of ITC, in respect of said 90% of the pipeline outside their premises, there is no other issue involved in the present case. - AAR

  • GST:

    Advance Ruling - question raised without any further information or documents - The answer to the question can only be given after considering the underlying facts. If no records. bills. tender documents or correspondence. or agreement which govern the transaction or any document whatsoever related to transaction being undertaken or proposed to be undertaken is produced, it is not possible to comprehend the transaction. Hence. there is no other alternative. but to hold that the answer to the question cannot be given in the absence of proper details. - AAR

  • GST:

    Levy of IGST - reverse charge mechanism (RCM) - import of service - In the subject case other than the service provided by the applicant to MCGM, there is a very definite service being provided by IVL Sweden, located outside India - on account of its experience, credentials and expertise to the applicant, located in India that enables the applicant to perform under the contract. Further, there is no doubt that the services are being supplied in taxable territory i.e. in India - the applicant has to pay GST on the money proceeds which is being transferred to IVL Sweden. - AAR

  • GST:

    Supply of goods on High Sea Sales - Supply of goods or supply of services - Supply of imported goods on High Sea Sales basis will not be treated as supply of "goods" - However, the supply of "services" in relation thereto, if any, will fall under the purview of "supply" as defined under Section 7 of the CGST Act. - AAAR

  • Income Tax:

    Additions towards cash payment against the purchase of the flat - disclosure made by such 3rd party before the settlement commission - in the absence of such cross-examination opportunity, to our understanding the addition is not sustainable despite the fact that there are material evidence available before the AO which are against the assessee - AT

  • Customs:

    Revocation of CB license - Mis-declaration of value of goods - Use of IEC code of others - Although the Respondent failed to discharge its obligation under CBLR, 2013, yet it cannot be denied that efforts were made by the said Respondent to discharge a part of its obligations under the said Regulations and, therefore, the Order with regard to revocation of the Broker Licence would be excessive in the facts and circumstances of the case - HC

  • Customs:

    Interest on the delayed transmission of refund of IGST - Interest will be paid on the shipping bills, the details with regard to which are given, at the rate of 6 percent p.a., commencing from 24.05.2021, till the date of remittance - HC

  • Customs:

    Levy of penalty on an authorised courier - failure to collect KYC - There is no violation of the provisions of Regulation 12(i), (iv) and (v) as the appellant has obtained the prescribed documents for identity and have maintained proper records. Further, there is no case of lack of due diligence made out, as the appellant has kept a proper record of address of delivery as the same was different from the address contained in the Aadhar Card. - AT

  • Customs:

    Levy of penalty - existence of mens rea or not - The orders merely proceed on speculations as it uses the terms like ‘the appellant must have experience’ or ‘must have been aware’. No penalty or conviction can be based merely on speculations. There has to be some role assigned to that person corroborated by some concrete evidence on record. In my view no one can be penalised merely on the basis of speculations/doubt. - AT

  • Customs:

    Change in classification of goods - warehoused goods - ex-bond bills of entry for home consumption - It is settled law that in case of warehousing goods at the time of ex-bond clearance for home consumption, the goods have to be re-assessed under section 2(2) of Customs Act, 1962 - Revenue has no authority to question the change of classification at the time of filing ex-bond bills of entry in the present case which is the correct one as compared to the classification declared in the into-bond bill of entry. - AT

  • Customs:

    Project import - warehoused goods - contract registered after filing an into bond Bill of Entry but before filing of an ex-bond bills of entry for home consumption - merely because the project was registered prior to clearance of goods for home consumption from warehouse there is no contravention on the part of the appellant and they are legally entitled for the exemption available to the project import. - AT

  • Customs:

    Revocation of Customs Broker License - Scope of the obligation of the Customs Broker under Regulation 10 (n) - Even when the reports say “Nonexistent”, they do not clarify if the exporter never functioned from that premises and GSTIN has been wrongly issued or the exporter ceased to function at that address after the exports. Therefore we do not find any evidence to prove that the Customs broker violated Regulation 10 (n). The impugned order, therefore, cannot be sustained. - AT

  • Customs:

    Levy of penalty on the Company as well as on the Director under Section 114(i) of the Customs Act, 1962 - seizure of Red Sandal Wood - illegal export out of India - The allegation of abetting in the attempted illegal export of prohibited goods are not supported by any direct, corroborative or cogent evidence - It has been held time and again that separate penalty on the company and the Director for the same default should not be imposed. - AT

  • Corporate Law:

    Validity of allotment of shares to majority shareholders of private limited company - The stand of the Company is that since it is a family Company and the decisions are taken in an informal manner by the members and no formal notices were required to be issued in view of the closely held family company. - Be that as it may, between the equity and law, the law will prevail. In the present case, the NCLT and this Tribunal is firm opinion that the company has not followed the principles of natural justice by issuing notice for the EOGM and issue letter of offer to the existing shareholders of the Company for allotment of shares. - AT

  • IBC:

    Nature of relationship between appellant and respondent - buyer-seller relationship or not - source document - Financial Creditor or not - the Adjudicating Authority has not erred in treating High Seas Sale Agreement as source document and other two agreements can be treated as part of full documentation. - AT

  • Service Tax:

    CENVAT Credit - inputs/ inputs services used for construction of immovable property - While constructing the immovable properties, assessee would have availed various services and paid input tax. The said building is used by the assessee in its business. Therefore, assessee must be entitled to avail the input services to discharge services on various output services. - HC

  • Service Tax:

    Termination fee - demand of service tax under the category of “permitting commercial use or exploitation of any event service” - The tripartite agreement which has been entered into has effectively circumvented this situation by transferring the rights from ZEEL to IMGR directly with the concurrence of the appellant for a consideration known as the termination fee paid by IMGR to ZEEL. The appellant has not rendered any service in this agreement, but has concurred to the agreement whereby the rights were transferred from ZEEL to IMGR. - demand set aside - AT

  • Service Tax:

    Export of services - intermediary services or not - Refund of unutilized input service - The telecommunication service provided by SGIPL qualify for export since it is providing telecommunication services to SingTel which is outside India and is receiving convertible foreign exchange for such services. SGIPL is not a privy to the Agreement entered into between SingTel and its end customers. Merely because SGIPL is charging handling fee on SingTel would not mean it is an intermediary. - AT

  • Service Tax:

    Job Work - Manpower Recruitment and Supply Agency Services or not - charges were calculated on per ton basis therefore, the number of manpower, man-days or man-hours is not relevant for carrying out the activities of harvesting, transportation etc. The arrangement is job specific and not the manpower specific. - AT


Articles


Notifications


Circulars / Instructions / Orders


News


Case Laws:

  • GST

  • 2022 (12) TMI 515
  • 2022 (12) TMI 514
  • 2022 (12) TMI 519
  • 2022 (12) TMI 518
  • 2022 (12) TMI 513
  • 2022 (12) TMI 512
  • 2022 (12) TMI 511
  • 2022 (12) TMI 510
  • 2022 (12) TMI 509
  • 2022 (12) TMI 508
  • 2022 (12) TMI 507
  • 2022 (12) TMI 517
  • 2022 (12) TMI 520
  • 2022 (12) TMI 496
  • 2022 (12) TMI 516
  • Income Tax

  • 2022 (12) TMI 505
  • 2022 (12) TMI 495
  • 2022 (12) TMI 494
  • 2022 (12) TMI 504
  • 2022 (12) TMI 493
  • 2022 (12) TMI 506
  • 2022 (12) TMI 503
  • 2022 (12) TMI 502
  • 2022 (12) TMI 501
  • 2022 (12) TMI 492
  • 2022 (12) TMI 500
  • 2022 (12) TMI 491
  • Customs

  • 2022 (12) TMI 486
  • 2022 (12) TMI 485
  • 2022 (12) TMI 490
  • 2022 (12) TMI 484
  • 2022 (12) TMI 483
  • 2022 (12) TMI 482
  • 2022 (12) TMI 489
  • 2022 (12) TMI 488
  • 2022 (12) TMI 481
  • 2022 (12) TMI 487
  • Corporate Laws

  • 2022 (12) TMI 480
  • Insolvency & Bankruptcy

  • 2022 (12) TMI 478
  • 2022 (12) TMI 477
  • 2022 (12) TMI 499
  • 2022 (12) TMI 498
  • 2022 (12) TMI 479
  • 2022 (12) TMI 476
  • Service Tax

  • 2022 (12) TMI 471
  • 2022 (12) TMI 470
  • 2022 (12) TMI 469
  • 2022 (12) TMI 468
  • 2022 (12) TMI 467
  • 2022 (12) TMI 473
  • 2022 (12) TMI 466
  • 2022 (12) TMI 475
  • 2022 (12) TMI 474
  • 2022 (12) TMI 472
  • 2022 (12) TMI 465
  • Central Excise

  • 2022 (12) TMI 464
  • CST, VAT & Sales Tax

  • 2022 (12) TMI 463
  • 2022 (12) TMI 462
  • 2022 (12) TMI 461
  • 2022 (12) TMI 460
  • Indian Laws

  • 2022 (12) TMI 497
 

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