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GST
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2023 (6) TMI 93
Applicability of GST Act - works contract commenced prior to 01.07.2017 and completed partially before 1.7.2017 or payment received partially before 1.7.2017 - Scope of the contract - inclusive of tax / exclusive of tax - jurisdiction of respondent Nos 4 to 8 to either issue notice or to take any coercive steps against the Petitioners under the provisions of the GST Act dated 01.07.2017 - constitutional validity of provisions of Section 7 (3) read with clause 6 of Schedule II of the GST Act - vires of Article 366 (12A), (26A) (29A) (b) (f) the Constitution in view of and settled principles of law laid down by the Hon ble Supreme Court regarding works contract. HELD THAT:- It is an undisputed fact that the Petitioners herein are class-I contractors who have entered into works contract with various State Govt agencies and that the....... + More
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2023 (6) TMI 92
Cancellation of GST registration of petitioner - applicability of Notification dated 31.03.2023 - HELD THAT:- It is seen that this Notification dated 31.03.2023 enables a registered person, whose registration has been cancelled under the provisions of Section 29(2)(b) or (c) of the Central Goods and Services Tax Act, 2017 [CGST Act] on or before 31.12.2022 and who has not filed any application for revocation of cancellation of such registration within the specified time under Section 30 of the CGST Act, to file an application for revocation in terms of the specific procedure notified. In these circumstances, the petitioner will have to make necessary application as provided for in the aforesaid notification. Petition disposed off.
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2023 (6) TMI 91
Additional tax liability incurred by the petitioner - additional payment on account of the introduction of the GST law - compliance of order of State Government dated 10.10.2018 - HELD THAT:- Reliance placed in the case of M/s D.A.Enterprises v. State of Chhattisgarh and others [ 2022 (12) TMI 1136 - CHHATTISGARH HIGH COURT ] where it was held that The plain reading of the new amended Order of the State Government dated 30.09.2022 would reflect that the State Government has now for the Water Resources Department has taken a decision to ensure that the Additional Tax burden that has suffered by a Contractor in the event of a new tax that is imposed, the additional burden shall be reimbursed to the contract, subject to the Contractor furnishing the details of the difference of the tax liability and the additional tax that was required t....... + More
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Income Tax
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2023 (6) TMI 88
Penalty u/s 271(1) (c) - disallowance of Impact Fees, interest on late payment of TDS and payment towards material purchase - HELD THAT:- Issue under consideration is no longer res integra, and the amount Impex Fees paid to SMC is allowable as business expense. Impex Fees is not penal in nature, thus there is no any violation of any law, for that reliance can be placed on the order of Shree Khodiyar Corporation [ 2009 (9) TMI 870 - ITAT AHMEDABAD] Penalty should not be levied on account of technical error which was committed by the assessee and there was no intention to furnish inaccurate particulars of income for that reliance can be placed on the judgment of M/s Price Waterhouse Copers ( P) Ltd [ 2012 (9) TMI 775 - SUPREME COURT] wherein it was held that imposition of penalty would be unwarranted in a case, where the assessee ha....... + More
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2023 (6) TMI 87
Addition u/s 68 - proceeds from the sale of shares by treating the scrips as penny stocks - Whether any link between the assessee with the entry operators/exit providers? - HELD THAT:- Despite the Revenue having the information regarding the stockbrokers through whom the shares were sold, there is no evidence on record that even these shareholders were named in the investigation conducted by the Investigation Wing of the Department. AO has not given any adverse comments or drawn adverse inferences on the documentary evidence submitted by the assessee. Revenue has failed to prove with any cogent evidence on record that the assessee was involved in converting his unaccounted money into long-term capital gains and short-term capital gains by conniving with any entry operator/exit provider, who was involved in artificial price rig....... + More
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2023 (6) TMI 86
Foreign Tax Credit (FTC) - amount pertains to the taxes paid by the assessee in USA on the income offered to tax in India - HELD THAT:- CIT(A) had stated that prima facie the contentions of the assessee appears to be correct and directed the AO to verify the factual position of the assessee s plea and to allow the claim of the assessee in accordance with law. The directions of the CIT(A) are clear and we see no reason to interfere with the order of the CIT(A) on the said issue. AO is directed to pass the appropriate orders in compliance with the directions of the CIT(A). Interest u/s 234C - AO s action in levying interest on the assessed income instead of the returned income - HELD THAT:- As in the case of Aishwarya K. Rai Vs. DCIT[ 2009 (1) TMI 860 - ITAT, MUMBAI] had held that interest u/s 234C of the Act is to be levied on th....... + More
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2023 (6) TMI 85
Maintainability of appeal before the ld. CIT(A) - Violation of section 249(4) - non-payment of admitted tax - HELD THAT:- The appeal before the ld. CIT(A) is caused the violation of section 249(4) and the appeal order U/s 250 is caused nullity which will be not maintainable before the bench. Tribunal is without jurisdiction if the first appeal is not maintainable on account of non-payment of admitted tax. In terms of section 249(4)( a ), appeal against such order of the CIT(A) is not maintainable before the Tribunal. The orders against which appeals are maintainable before the Tribunal U/s 253 include an order passed under section 250 of the Act which is an order in appeal passed by the CIT(A) on merits after entertaining the appeal. However, no appeal is provided against order of the CIT(A) declining to entertain appeal as defec....... + More
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2023 (6) TMI 84
Late fees levied u/s 234E - interest thereon charged under section 220(2) - whether late fee u/s 234E cannot be charged relating to period of tax deduction prior to 01.06.2015? - HELD THAT:- There is no dispute that the issues involved in these appeals are squarely covered in favour of the assessee by the aforesaid orders in the cases of Shivansh Infraestate Pvt. Ltd. vs. ACIT [ 2022 (8) TMI 439 - ITAT LUCKNOW ], Executive Engineer, Tubewell Division Barabanki vs. Income Tax Officer(TDS)-II [ 2022 (11) TMI 1359 - ITAT LUCKNOW] , Dr. Saumya Singh vs. ACIT [ 2018 (10) TMI 1960 - ITAT LUCKNOW ], Fatheraj Singhvi vs. Union of India [ 2016 (9) TMI 964 - KARNATAKA HIGH COURT ], United Metals vs. Income-tax Officer (TDS) [ 2021 (12) TMI 1349 - KERALA HIGH COURT ] and Additional DIGP vs. Dy. CIT (TDS) [ 2020 (9) TMI 285 - ITAT DELHI ] wherein ....... + More
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2023 (6) TMI 83
Characterization of income - Treating the agriculture income declared by the assessee as Business income - CIT (A) deleted the addition observing that the income derived from similar activities in the past previous years had been accepted by the Revenue without any adverse finding and the same has been treated as agricultural income - HELD THAT:- No valid reason to reverse the findings of the CIT (A) for the reason that in the past assessment years while making scrutiny assessments u/s 143(3) AO has accepted the stand of the assessee that activities of cultivating of sugar cane seeds as agricultural activity and the income derived therefrom is agricultural income. No valid reasons to deviate from the stand taken by the revenue from earlier years as there was no change in facts. Ratio of the decision of Radhasoami Satsang [ 1991 (11)....... + More
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2023 (6) TMI 82
Penalty u/s 271(1)(b) - non-compliance of notice u/s 142(1) - reasonable cause for non-compliance u/s 273B - HELD THAT:- As no compliance on the date of hearing though notice was sent through Speed Post. However, it is observed that there is no finding by the AOthat any of the above notices was served on the assessee and the assessee did not comply. Even before us no evidence was furnished by the Revenue suggesting that the above notices were in fact served on the assessee and there was no compliance by assessee. Assessee submission that he was attending to his ailing father and no notice was served on him as he was not residing in the premises cannot be brushed aside in view of the death certificate of his father who passed away on 22.02.2018 and medical reports dated 18.05.2017 and 09.08.2017. All this goes to show that there is r....... + More
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2023 (6) TMI 81
Adhoc addition of 20% of mobilization advance u/s 68 r.w.s. 115BBE - CIT(A) deleted the addition observing that details regarding mobilization advances were fully filed before the assessing officer and thus the conclusion of Ld. AO of absence of the evidences was factually incorrect - HELD THAT:- The Bench is of considered opinion that the genuineness, identity and creditworthiness of the parties making mobilization advances was never questioned so no addition could have been made by Ld. AO by invoking provisions of section 68 - there seems to be no justification to make an adhoc disallowance u/s 68 of the Act. Ld. AO was suppose to either accept mobilization advance as a whole on the basis of running account or to a disbelieve the whole. Ad hoc disallowance without pointing out any shortcoming in accounting method or books is not sust....... + More
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2023 (6) TMI 94
Denial of cross-examination process of witness - Importance of cross examination of the witnesses whose statements have been utilized by the Assessing Officer in the assessment order - ACIT restricted cross examination process by denying the questions asked by the Petitioner during cross examination - petitioner submits that the petitioner has not been provided complete copies of statements made by the witnesses who are being cross-examined, copy of entire order sheets, remand reports, etc. despite repeated requests - HELD THAT:- After going through the documents available on record it is profitable to refer the order passed by this Court in [ 2023 (2) TMI 1146 - JHARKHAND HIGH COURT] wherein this Court has made it very clear that there is no doubt that the control of the proceedings lies with the Presiding Officer, the Assessing Offi....... + More
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2023 (6) TMI 80
Short grant of TDS credit - CPC has denied the TDS credit on the ground that amount is not reflected in 26AS - whether credit of TDS can be allowed to the assessee, i.e., Late Russi Dinshaw Bahadurji having offered the income and have been taxed on the same for the TDS amount - conditions provided in Rule 37BA - in the case of the Trust, nil return was filed and no TDS credit has been filed - HELD THAT:- Deduction is allowed for the amount paid to the Treasury of Central Government which shall be treated as payment of tax on behalf of the person from whose income, the deduction was made where the TDS was deducted on income which has been shown and offered to tax by the assessee, Late Russi Dinshaw Bahadurji even though TDS has been deducted in the case of Deed of Settlement / Trust. There is no provision of Section 199(1) that deduct....... + More
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2023 (6) TMI 95
Denial of deduction u/s 80P - interest income earned from various cooperative banks - HELD THAT:- The Pune Bench in Rena Sahakari Sakhar Karkhana Ltd. [ 2022 (1) TMI 419 - ITAT PUNE ] that though co-operative banks, other than primary agricultural credit society or a primary co-operative agricultural and rural development bank, are not eligible for deduction pursuant to insertion of section 80P(4) w.e.f. 1.4.2007, but this provision does not dent the otherwise eligibility u/s 80P(2)(d) of a co-operative society on interest income on investments/deposits parked with a co-operative bank, which is a registered co-operative society as per section 2(19) defining co-operative society to mean a co-operative society registered under the Co-operative Societies Act, 1912 or under any law for the time being in force. The payer of interest is a....... + More
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2023 (6) TMI 79
Assessment u/s 153C - validity of the notice issued u/s. 153C of the Act and completion of assessment u/s 143(3) r.w.s 153C - scope of curable defect u/s. 292BB - HELD THAT:- Search operation u/s.132 was conducted in the premises of M/s. Apex Frozen Foods Limited and subsequently in the premises of the assessee. AO has issued a notice u/s.153C wherein it was stated that the AO has required the assessee to prepare the true and correct return of the total income in pursuance of the provisions of section 153C r.w.s 153A of the Act for the impugned assessment year. As per the provisions of the Act, consequent to the search, as per the requirement of law, in case the premises of the persons have been searched, then the proceedings to be initiated are by way of issue of notice u/s. 153A of the Act. In the instant case, the documents....... + More
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2023 (6) TMI 78
Addition u/s 68 - Bogus LTCG from share transactions - HELD THAT:- AO has failed to appreciate that the shares were originally acquired in the year 1995 which fall outside the period commencing from January 2011 and ending on January 2015 examine/analysed by the Investigation Wing and/or the AO - The shares under consideration were not purchased by the Assessee and were acquired by way of gift during the relevant previous year. Assessment has been framed on the Assessee without carrying out any independent enquiry or investigation by the AO by merely relying upon the report of the investigation, and on the basis of incorrect understanding of the relevant facts. Accordingly, we overturn the findings returned by the AO and CIT(A) that the transactions entered into by the Assessee resulting in Long Term Capital Gains in the hands of....... + More
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2023 (6) TMI 90
Income deemed to accrue or arise in India - make available clause - Fee received by assessee for technical services rendered to its Associated Enterprises in India - interpretation of Article 12(4) of the DTAA - Whether no transfer of technology in the case of assessee as the make available clause is not satisfied ? - HELD THAT:- As fee paid is for the evaluation of risk factor by the assessee company which is based in USA. As argued that the results of such activities are made available to the other entities with ABB group, we may record the explanation given that the word made available used in portion of the agreement extracted of DRP s directions refers only to the results which the entities in the group companies may use and the same cannot be interpreted or equated to any other technical design or consultancy, the benefi....... + More
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2023 (6) TMI 89
UnexplaIned cash credit u/s. 68 - assessee had obtained accommodation entries in form of loan and advances - AO held that the assessee could not satisfy the conditions of sections 68 of the Act to show the identity, creditworthiness and genuineness of the transaction - allegation against the assessee that it had obtained accommodation entry in form of loan from a party not genuine company [one of the 20 fake companies amongst the group of companies created by one Dalmiya] HELD THAT:- As could be seen from the facts noted and recorded by the appellate authority and the Income Tax Appellate Tribunal, the said party extending loan to assessee has been held to be a genuine party. Its identity, genuineness and creditworthiness were established. When party as found to be a genuine lender, the entire basis for proceedings against the ....... + More
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2023 (6) TMI 77
Unexplained investment - Unaccounted cash for purchase - admission of the third party / addition based on the statement of the third party - HELD THAT:- Except the admission of the vendor, that the assessee had paid unaccounted cash for purchase of villa in Green City Project of Vizag Profiles group, there is no supporting evidence placed before us by the revenue establishing that the assessee has paid extra amount. The revenue authorities has placed one appraisal report, where name of the assessee was mentioned showing that the assessee has paid an amount in cash. Case was reopened and the AO examined the issue and came to conclusion that the assessee has not established an amount therefore, he treated the said amount as unexplained investment. The assessee was not given the copy of the said statement of admission, nor he was gi....... + More
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2023 (6) TMI 76
Reopening of assessment u/s 147 - AO jurisdiction to re-open the assessment when normal procedure of assessment of income u/s. 143(3) was available which are otherwise within time - whether the assessment could be reopened by the issuance of notice u/s. 148 of the Act prior to the expiry of time limit for issuance of notice u/s. 143(2)? - HELD THAT:- This issue is no longer res integra in view of the decision of the Hon ble Jurisdictional High Court in the case of Smt Suman [ 2017 (8) TMI 567 - BOMBAY HIGH COURT] time to issue notice under Section 143(3) of the Act had expired, it is only thereafter that the AO could have reason to believe that the income chargeable to tax has escaped assessment. It is in such cases that the Assessing Officer would not be prohibited under Section 147/148 of the Act from seeking to recover tax on ....... + More
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2023 (6) TMI 75
TP Adjustment - specified domestic transaction of project management and supervision - Capitalized expenditure - effect of omission of the clause (i) of Section 92BA - adjustment being disallowance of depreciation - HELD THAT:- We carefully find that that provision of section 40A (2) applies only with respect to the expenditure incurred by the assessee, which are otherwise allowable to the assessee. Here it is not the expenditure but depreciation allowance claimed by the assessee , therefore, it is not hit by provisions of Section 40A (2) of the act. As also enquired whether AO has any power to substitute Actual cost of an assets by the arm s-length price of purchase or acquisition of a capital asset u/s 32 Vis a Vis of Section 43(1) of the act in similar situation. On careful perusal of provisions of section 32 as well as t....... + More
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Customs
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2023 (6) TMI 74
Classification of imported goods - Renadyl bulk probiotic dietary supplement capsules - to be classified under tariff item 3002 90 30 of First Schedule to Customs Tariff Act, 1975 or not - applicability of concessional rate of duties of customs, extended by notification no. 50/2017-Cus dated 30th June 2017 - extended period of limitation - penalty u/s 112 of CA - HELD THAT:- The concessional rate of duties of customs, extended by notification no. 50/2017-Cus dated 30th June 2017, is available to imported probiotics corresponding to tariff item specified therein; probiotics that are cultures of micro-organisms (excluding yeast) , corresponding to heading 3002 of First Schedule to Customs Tariff Act, 1975, are, doubtlessly, eligible to the benefit thereof which, being the default classification and as set out by the Hon ble Supreme ....... + More
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Corporate Laws
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2023 (6) TMI 73
Seeking grant of Regular Bail - alleged illegal movement of the goods worth Rs. 1,023 crores from the plant without raising invoices inter alia caused wrongful loss to BPSL - Fraud with the intent to injure interest of company punishable under Section 447 of the Companies Act - Siphoning off funds from BPSL in the form of bogus capital advances and routing the same as equity or unsecured loans to related entities of BPSL - Siphoning off funds from BPSL in the form of bogus advances to suppliers - Siphoning of funds through purchase of property through Assurity Real Estate LLP at Mumbai - Fraudulently availing the credit facilities from banks through the instrument of LCs by using false documents and other fraudulent activities punishable under Section 36(c) read with 447 of the Companies Act - Cheating upon the banks liable to be punish....... + More
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2023 (6) TMI 72
Seeking restoration of the name of the Company in the Register maintained by the Registrar of Companies (RoC) - HELD THAT:- The impugned order dated 17.12.2021, the NCLT has rightly held that the Audited Financial Statements of the two immediately preceding Financial Years i.e., 2015-16 and 2016-17 filed by the Appellant Company reflected Zero revenue from its operations and have come to the conclusion that the Appellant Company was neither in operation nor carrying out its business at the time of its name was struck off from the register of Registrar of Companies. There are no merit in the instant Appeal to interfere with the order impugned passed by the NCLT. The impugned order dated 17.12.2021 passed by the National Company Law Tribunal (New Delhi Bench, Court-II) is hereby affirmed - The instant Appeal is hereby dismissed.
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2023 (6) TMI 71
Compounding of offences - default in holding Annual General Meeting the company - non-compliance of Section 166/96 of the Companies Act, 1956/2013 - HELD THAT:- The fact remains that it was a joint application filed by the applicant alongwith other six persons including the company in question under Section 441 of the Companies Act, 2013. Section 441 of the Companies Act, 2013 deals with the compounding of offences. From the materials on record particularly the application filed before the NCLT which was number as CP 155/441/ND/2020 it is evident that the appellant has admitted default and days of default to the extent of 2905 days was admitted by the appellant. At this juncture it would be apt to reproduce Section 96 of the Companies Act, 2013 which mandate annual general meeting by the company and also consequences for non-compliance....... + More
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Insolvency & Bankruptcy
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2023 (6) TMI 70
Initiation of CIRP - NCLT admitted the application - pre-existence of dispute - non-compliance with GST Rules - operational debt in default - It is submitted that whether the GST rules were complied or not by the Operational Creditor, did not vitiate the fact that there was an operational debt in default without there any pre-existing dispute raised in respect of that debt. HELD THAT:- Appellant did not file any Written Submissions in fact the order was passed on 04.05.2023 by this Appellate Tribunal that the Parties have to file their Written Submissions within two weeks. Counsel for the Appellant did not file any submissions, till date. The Learned Adjudicating Authority had admitted Section 9 Petition filed on behalf of the Respondent Operational Creditor and initiated CIRP proceedings. There are no irregularities and therefore accordingly there are no merits in this Appeal - appeal dismissed.
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2023 (6) TMI 69
Resolution Plan implemented - liability for power connection on account of which, the Resolution Applicant was made to pay an additional amount of Rs.40,43,001/- to KSEB for the bills raised for the month of October 2018 - It was submitted by the RP before the Adjudicating Authority that the Resolution Plan does not include this amount of Rs.40 Lakhs but was paid by the Resolution Applicant to keep the Company as a going concern. HELD THAT:- The RP has categorically admitted that this amount which was paid towards the electricity bill was not a part of the Resolution Plan and that the Resolution Applicant had paid this amount of Rs.40 Lakhs for the month of October 2018, only to avoid disconnection of the Power Supply. It is an admitted fact that this electricity bill is for the period when the power was not consumed by the Resoluti....... + More
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2023 (6) TMI 68
Initiation of CIRP for the resolution of an unresolved financial debt - NCLT Admitted to the application - time limitation - it is alleged that though the Financial Creditor had mentioned that the default occurred on 31.03.2014 but the date of default mentioned in part IV of the application filed under Section 7 of the Code is 01.06.2015. HELD THAT:- In the present case, the claim w.e.f. 01.06.2015 till 01.06.2018 was live because the Financial Creditor could have filed a petition under Section 7 of the Code during this period and the occurrence of one time settlement/compromise, initiated at the instance of the Corporate Debtor during this period vide its letter dated 31.01.2018 had revived the period of limitation from 31.01.2018 to 31.01.2021 in terms of Section 18 of the Limitation Act and the application under Section 7 of the ....... + More
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PMLA
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2023 (6) TMI 67
Seeking grant of Regular Bail - Money Laundering - predicate Offence - siphoning off of funds on the basis of fake/fictitious invoices - main thrust of the petitioner's submission is that the petitioner exercised no control over the affairs of Phoenix FZC; and that he was neither an employee, nor did he hold any key position in the management of the company - HELD THAT:- It cannot be gainsaid that the offence comprised in section 3 of the PMLA is a grave and serious economic offence, and has been couched in the widest of terms. However, before proceeding to consider the rival submissions of the parties, it is necessary to briefly set-out the position of law as enunciated by the Supreme Court as regards the considerations that must inform the grant or denial of bail in matters under the PMLA. In its recent decision in Ashish Mi....... + More
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Service Tax
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2023 (6) TMI 66
Valuation of services - photocopying services - whether cost of consumables used in the photocopying services is includible in the assessable value or not, while the Service Tax is to be paid - period involved is April, 2001 to March, 2006 - extended period of limitation - HELD THAT:- Admittedly, the issue as to whether the cost of consumables is includible in the assessable value or not was under dispute and was being litigated in various coordinate Benches of the Tribunal, who have taken varying stands and decisions. The matter had also gone up to the Hon ble Supreme Court and the matter was resolved by way of Larger Bench which shows that even the coordinate Benches were not on the same page on this issue. In the case of Nice Colour Lab vs CCE, Jaipur [ 2013 (5) TMI 201 - CESTAT NEW DELHI ] and Laxmi Colour Lab vs CCE [ 2012 (7) ....... + More
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2023 (6) TMI 65
Levy of interest and penalty - entire payment of Service Tax even before the issue of Show Cause Notice - Manpower services - cum-tax benefit in terms of Section 67(2) of the Finance Act, 1994 - HELD THAT:- It is seen that there is no dispute that entire amount of Service Tax as demanded in the Show Cause Notice has been paid by the Appellant even before issue of the Show Cause Notice. It is not known as to whether the Appellant was even made aware of the fact that if the interest is paid by them, the Appellant would get complete waiver of the penalties. It is also seen that the Appellant has claimed that they have not charged the Service Tax on their clients and they have paid the Service Tax based on the quantification done by the Department wherein cum-tax benefit has not been granted. From the Show Cause Notice and Order-in-Orig....... + More
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2023 (6) TMI 64
Levy of Service tax alongwith interest and penalty - Business Auxiliary services - service of procurement of space on the vessel - HELD THAT:- Reliance placed in the case of GREENWICH MERIDIAN LOGISTICS (INDIA) PVT. LTD. VERSUS COMMISSIONER OF SERVICE TAX MUMBAI [ 2016 (4) TMI 547 - CESTAT MUMBAI ] where it was held that The notional surplus earned thereby arises from purchases and sale of space and not by acting for a client who has space or slot on a vessel. Section 65(19) ibid will not address these independent principal-to-principal transactions of the appellant and, with the space so purchased being allocable only by the appellant, the shipping line fails in description as client whose services are promoted or marketed. Therefore, the demands, with interest thereon, and penalties are set aside. There are no merits in the impugned order - appeal allowed.
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Central Excise
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2023 (6) TMI 62
Levy of interest on the differential duty paid during the relevant period - issuance of supplementary invoices enhancing the value declared at the time of clearance of the goods - suppression of facts - extended period of limitation - HELD THAT:- The issue has been settled by the Hon ble Supreme Court in the case of COMMISSIONER OF CENTRAL EXCISE, PUNE VERSUS M/S SKF INDIA LTD. [ 2009 (7) TMI 6 - SUPREME COURT] , wherein it has been observed that at the time of sale the goods carried a higher value and those were cleared on short payment of duty. The differential duty was paid only later when the assessee issued supplementary invoices to its customers demanding the balance amounts. Seen thus it was clearly a case of short payment of duty though indeed completely unintended and without any element of deceit etc. The payment of differen....... + More
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2023 (6) TMI 61
Denial of adjustment of excess payment against the alleged short payment of duty - denial on the ground that the appellant had passed on the excess amount of duty as CENVAT Credit to M/s. BPCL through Central Excise cenvatable invoices issued under Rule 11 of the Central Excise Rules, 2002 - Rule 7 of the Central Excise Rules, 2002 - HELD THAT:- On a conjoint reading of Rule 7 of the Central Excise Rules, 2002 along with the Instructions given in Chapter 3 of the C.B.E.C. s Excise Manual for Supplementary Instructions issued under Rule 31 of the Central Excise Rules, it is clear that finalization of provisional assessment is required to be done on monthly basis. Finalization of provisional assessment means finalization of an issue or ground and thereafter, finalization of each E.R.-1. It is to be noted that in the scheme of Central Exc....... + More
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2023 (6) TMI 60
Method of Valuation - Section 4 (1) (a) of Central Excise Act, 1944 or Rule 10A of Valuation Rules, 2000? - clearances made to M/s. Mira Textiles Industries (I) Ltd. and M/s. Mohan Breweries under the instructions of M/s. Mira - appellant was getting the kraft paper (raw material) under the cover of Central Excise invoices from M/s.Mira and after availing the credit of craft paper, the same was being converted into carton boxes (finished products) - job-work or not - Department was of the view that amount received by the appellant was only compensation of the expenditure incurred by them and received by them through the sale invoices raised. HELD THAT:- It has to be noted that there is no free supply of raw materials to the appellant by M/s. Mira Textiles and it is actually purchased by raising invoices and paying the value of the....... + More
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2023 (6) TMI 63
Levy of penalty under Section 11AC of the Central Excise Act, 1944 - demand was made on the basis of the return submitted by the assessee and within normal period of time - HELD THAT:- The contention of the appellant before the Tribunal was that the delay in payment on account of financial difficulties and prayed for waiver of the penalty altogether. The learned Tribunal rightly noted that the decision of the Hon ble Supreme Court in UNION OF INDIA AND OTHERS VERSUS DHARMENDRA TEXTILE PROCESSORS AND OTHERS [ 2008 (9) TMI 52 - SUPREME COURT ] and dismissed the appeal. Appeal dismissed.
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2023 (6) TMI 59
Extended period of limitation - Excisability - manufacture of Cable Jointing Kits which comprises of various components - suppression of facts - extended period of limitation - HELD THAT:- By remanding the matter Tribunal has vide order no A/1008-1010/12/EB/C-II has held that The present demands are made by issuing different show-cause notices on the ground that the appellants were clearing the compounds to independent buyers and also captively consuming the same and therefore the appellants were wrongly paying duty under Rule 8 of the Central Excise Valuation Rules. The provisions of Rule 8 of Central Excise Valuation Rules are applicable when the goods manufactured are captively consumed only. In the order of Commissioner (Appeals) that earlier show-cause notices were issued on the issue of valuation also which have been adjudge....... + More
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2023 (6) TMI 58
Recovery of credits which were excluded from the definition of inputs through Explanation 2 of Rule 2(k) of CENVAT Credit Rules, 2004 - finding of the Larger Bench of this Tribunal in Vandana Global Ltd. giving retrospective effect was given to the Notification No. 16/2009-CE(NT) - HELD THAT:- As could be understood the entire dispute is based on the finding of the Larger Bench of this Tribunal in VANDANA GLOBAL LTD. VERSUS CCE [ 2010 (4) TMI 133 - CESTAT, NEW DELHI (LB)] by which retrospective effect was given to the Notification No. 16/2009-CE(NT) and accordingly Respondent-Department had issued periodic notices demanding recovery of credits which were excluded from the definition of inputs through Explanation 2 of Rule 2(k) of CENVAT Credit Rules, 2004. However, the said judgment of the Larger Bench had been reversed by the Hon....... + More
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CST, VAT & Sales Tax
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2023 (6) TMI 57
Classification of goods - applicable rate of tax - LAN Connection Cable (CAT-5, CAT-6) - taxable under S. No. 3 or 24 of Part A of Entry No. 65 of Schedule-IV or at General Rate as per Schedule-V appended to the Rajasthan Value Added Tax Act, 2003? - HELD THAT:- The word computer system and peripheral is not defined anywhere in the RVAT Act. At this juncture, it would be apt to consider the way in which it has been interpreted by different Courts. In the case of KORES (INDIA) LIMITED VERSUS ASSISTANT COMMISSIONER, COMMERCIAL TAXES, ANTI EVASION [ 2016 (2) TMI 1363 - RAJASTHAN HIGH COURT] , Coordinate Bench of this Court observed that That as a matter of fact, the entry is wider, which includes not only computer printers, but computer peripherals also. This Court finds no justification in the contention raised by the learned counse....... + More
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2023 (6) TMI 56
Condonation of delay in filing of appeal - Service of order - order was sent to old address - Revenue s main contention is that the orders were served at the address given by assessee and it is assessee s duty to intimate the change in the address if any - HELD THAT:- It is relevant to note that the assessee s address mentioned in the memorandum of petition, the application for condonation of delay and written submissions filed before the KAT are the same as mentioned in the postal acknowledgement receipt. This clearly shows that assessee s main contention that he had changed his address is factually incorrect. Therefore, the contention urged by assessee that the orders were sent to his old address is untenable. The learned KAT has analyzed the facts in extenso and rightly recorded a finding that there was no proper explanation for ....... + More
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Indian Laws
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2023 (6) TMI 55
Dishonour of Cheque - matter settled in National Lok Adalat - Validity of Award passed in Lok Adalat - the case of the petitioner is that when the matter had already been settled between the parties before the National Lok Adalat in terms of a Memorandum of Understanding/Settlement Agreement entered into between the parties, the learned Trial Court could not have proceeded with the trial by allowing the applications filed by the respondents - HELD THAT:- As far as challenge to an award passed by Lok Adalat is concerned, the Hon ble Apex Court in Bhargavi Constructions v. Kothakapu Muthyam Reddy [ 2017 (9) TMI 1731 - SUPREME COURT ], while following the decision rendered by its Three-judge Bench in SSTATE OF PUNJAB ANR. VERSUS JALOUR SINGH ORS. [ 2008 (1) TMI 960 - SUPREME COURT ], held that an award of Lok Adalat can only be challe....... + More
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2023 (6) TMI 54
Auction bid - bid applications rejected on the ground of insufficient documents - quotation of highest price of Rs. 589/- as additional charge and the petitioner had quoted Rs. 221/- - no dues certificate from GST authority not submitted - HELD THAT:- On perusal of the endorsement of the committee, it is made clear that opposite party no. 4 had quoted additional charge at the rate of Rs. 589/-, but, so far as its income tax return for the assessment year 2021- 22 is concerned, a clarification was to be given by the competent authority in consultation with the concerned department/authority, and, as regards no dues certificate obtained from the CGST department, confirmation was to be made by the concerned authority. Similarly, it was observed that the petitioner had quoted additional charge of Rs. 221/-, but, however, the no dues certif....... + More
