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Home e-Newsletters Index Year 2021 April Day 16 - Friday

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TMI Tax Updates - e-Newsletter
April 16, 2021

Case Laws in this Newsletter:

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



Highlights / Catch Notes

    GST

  • Liability of GST - rate of GST - pure agent services or not - The supplier of the applicant does not fulfil/satisfy all the conditions required for being a ‘Pure agent’ in terms of the provisions of Rule 33 of the CGST Rules, 2017 and therefore, the expenditure or costs incurred by the supplier of the recipient of supply cannot be excluded from the value of supply in terms of the provisions of Rule 33 of the said rules and is liable to GST on reverse charge basis. - AAR

  • Classification of goods - Flavored Milk sold under trade name of Power Sip - The word “beverage”, though not defined under CGST Act, 2017, is considered, in common parlance, as a drink that can be consumed directly and the instant product “flavored milk” can be consumed as it is and hence is a beverage with a basis of milk. Therefore, the product is appropriately classifiable under CTH 2202 99 30. - ‘flavoured milk’ is classifiable under Tariff Item 2202 99 30 of the First Schedule to the Customs Tariff Act, 1975 as a “beverage containing milk”. - AAR

  • Classification of supply of goods - Aluminium Foil Type Winding Inverter Duty Transformer - by devising certain clauses, it is sought to bring about a splitting up of the intended purchase of the Transformer, as a one whole, into a purchase of goods and a purchase of services. However, the intended purpose to present the agreement as a contract for supply of goods ONLY has not achieved the desired purpose. The agreement is for supply of an effectively running Transformer. - out of the gross value of the supply, 70% shall be deemed to be on account of goods and 30% deemed to be on account of service. Accordingly, the effective rate came to 8.9%. - AAR

  • Classification of goods - HSN Code - rate of tax - Flavored Milk - ‘flavoured milk’ is classifiable under Tariff Item 2202 99 30 of the First Schedule to the Customs Tariff Act, 1975 as a “beverage containing milk” - AAR

  • Income Tax

  • tay of demand - whether AO can grant deposit orders of a lesser amount than 20% pending appeal without making reference to the administrative Pr.CIT/CIT? - Since the Assessing Officer is exercising quasi-judicial power by virtue of Section 220(6) of the Act, the implication of the clarification of the legal position by the Hon'ble Supreme Court is that the assessing officer can grant deposit orders of a lesser amount than 20% pending appeal without making reference to the administrative Pr.CIT/CIT. Reference of course has to be made if he is of the view that deposit order of a higher amount than 20% pending appeal is warranted. - HC

  • Condonation of delay of 248 days in filing cross-objections - it is apparent that the ITAT has not focused on the issue of whether there was sufficient cause for explaining 248 days delay in instituting cross-objections, but rather the ITAT has faulted the assessees for not raising the issue of non-compliance with jurisdictional parameters, either soon after they received notices under Section 153C of the IT Act or before the Assessing Officer in the first instance. - HC

  • Applications u/s 119(2)(b) for condoning the delay and accepting the return - The department ought to have taken a justice-oriented approach instead of taking a highly pedantic approach in refusing to condone the delay on the part of the petitioner in filing the return for the assessment year 2015-16. - HC

  • Addition u/s 56(2)(viib) - Thus the issue of shares at ‘face value’ by the amalgamated company (assessee) to the shareholders of amalgamating company in pursuance of scheme of amalgamation legally recognized in the Court of Law neither falls with scope & ambit of clause (viib) to S. 56(2), when tested on the touchstone of objects and purpose of such insertion i.e. to deem unjustified premiums charged on issue of shares as taxable income; nor does it fall in its sweep when such deeming clause is subjected to interpretative process having regard to the scheme of the Act. - AT

  • Penalty u/s 271(1)(c) - failure on the part of legal heir of the deceased assessee to explain the source of part of the deposits - The mere failure on the part of the assessee/legal representative to explain the deposits in the bank accounts would not ipso facto lead to the conclusion that the assessee has either furnished inaccurate particulars of income or concealed the particulars of income. The explanation during the assessment proceedings by the legal representative of the deceased assessee is bona-fide as provided in Explanation 1(B) to section 271(1)(c) - AT

  • Disallowance of expenses u/s 40A(3) - ertain payments in excess of ₹ 20,000/- by cash - The assessee was bound to procure the coal to keep the furnace going to sustain the production. Therefore, procurement of coal against cash payment was a business necessity. Further, the assessee has also paid CST on purchases and the C-Form issued to the supplier is also produced before the lower authorities. - Freight inward expenses find the same is mainly related to purchase of coal. - AT

  • Customs

  • Rejection of refund claim - Customs Duty paid in excess - period of limitation - it is crystal clear that when the customs duty is paid in excess, the department is liable to refund the same and the limitation provided under Section 27 of the said Act of 1962 will not be applicable. Therefore, the Tribunal has erred in law and fact, solely relying on Section 27 of the said Act of 1962 while dismissing the application of the appellant-Company - HC

  • Valuation of imported goods - The appellant had indeed declared the value of the goods incorrectly and on being pointed out agreed to reassessment of duty and waived his right to show cause notice and personal hearing. The appellant also undertook to pay the fine and penalty. Therefore, the Assessing Officer is not required to issue a speaking order. - AT

  • IBC

  • The NCLAT being the duly constituted Appellate Tribunal, under the IBC, is free to regulate its procedure and the manner in which it wishes to hear matters, including issuing of directions for filing of written submissions and judgments. These procedural issues are to be regulated by the NCLAT on its own. This Court does not deem it appropriate to interfere with the same - The manner in which the Petitioner seems to be making repeated representations and submissions before the NCLAT clearly shows that the Petitioner is not being bonafide in his conduct. - HC

  • Approval of resolution plan - change the main business of the ‘Corporate Debtor’ form printing business to running Data Centers - Thus, it can be seen from the Sections 30(2) & 31 and Regulations 37, 38 and 39 that there is nothing in the Code which prevents a ‘Resolution Applicant’ from changing the present line of business to adding value or creating ‘Synergy’ to the existing assets and converting an obsolete line of business to a more ‘viable and feasible’ option. - AT

  • Service Tax

  • Recovery of CENVAT Credit - recipient of service - payment of service tax under wrong head - in terms of Rue 2 (l) of CCR, the appellant is entitled to take cenvat credit of any input service, which is received, by whatever name called, which is utilised in the manufacture of dutiable goods, or providing of taxable output service - credit allowed - AT

  • Central Excise

  • CENVAT Credit - Input service distribution - unit exclusively engaged in the manufacture of exempted goods - On perusal of the order passed by the Tribunal, it is evident that the aforesaid order is cryptic and suffers from vice of non-application of mind. The Tribunal has not assigned any reasons in respect of its finding and has merely recorded the conclusions - Matter restored before the CESTAT - HC

  • VAT

  • Refund of Input Tax Credit - failure to reverse the input tax credit in respect of the invisible loss ratio - The petitioner himself has come forward and given in writing that the invisible loss is at 5% - the order passed by the respondent accepting the same cannot be said to suffer from any error apparent on the face of the record. - HC


Articles


Notifications


News


Case Laws:

  • GST

  • 2021 (4) TMI 618
  • 2021 (4) TMI 617
  • 2021 (4) TMI 616
  • 2021 (4) TMI 615
  • 2021 (4) TMI 614
  • 2021 (4) TMI 595
  • 2021 (4) TMI 569
  • Income Tax

  • 2021 (4) TMI 612
  • 2021 (4) TMI 610
  • 2021 (4) TMI 609
  • 2021 (4) TMI 605
  • 2021 (4) TMI 596
  • 2021 (4) TMI 593
  • 2021 (4) TMI 592
  • 2021 (4) TMI 591
  • 2021 (4) TMI 590
  • 2021 (4) TMI 587
  • 2021 (4) TMI 586
  • 2021 (4) TMI 584
  • 2021 (4) TMI 581
  • 2021 (4) TMI 580
  • 2021 (4) TMI 576
  • 2021 (4) TMI 573
  • 2021 (4) TMI 572
  • 2021 (4) TMI 570
  • Customs

  • 2021 (4) TMI 608
  • 2021 (4) TMI 603
  • 2021 (4) TMI 598
  • 2021 (4) TMI 575
  • 2021 (4) TMI 571
  • Corporate Laws

  • 2021 (4) TMI 578
  • Insolvency & Bankruptcy

  • 2021 (4) TMI 613
  • 2021 (4) TMI 611
  • 2021 (4) TMI 594
  • 2021 (4) TMI 589
  • 2021 (4) TMI 588
  • 2021 (4) TMI 585
  • 2021 (4) TMI 583
  • 2021 (4) TMI 582
  • 2021 (4) TMI 577
  • 2021 (4) TMI 574
  • PMLA

  • 2021 (4) TMI 607
  • Service Tax

  • 2021 (4) TMI 579
  • Central Excise

  • 2021 (4) TMI 604
  • CST, VAT & Sales Tax

  • 2021 (4) TMI 606
  • 2021 (4) TMI 602
  • 2021 (4) TMI 601
  • 2021 (4) TMI 600
  • 2021 (4) TMI 599
  • 2021 (4) TMI 597
 

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