28 August, 2014
Certain changes in service tax provisions announced in this year’s Union Budget will come into effect from 1st October, 2014. As per Finance (No. 2) Act, 2014, changes relating to negative list will come into effect from a date to be notified and this date has now been notified as 1-10-2014. The Central Board of Excise & Customs (CBEC) has issued Notification No. 18/2014-S.T.,...
19 August, 2014
Interest is not payable by the importer when provisional assessment was made before 13-7-2006 but the same was finalized much later. Provisions for interest on finalization of assessments were introduced under Section 18(3) of Customs Act, 1962 from 13-7-2006. The dispute which was decided by New Delhi Bench of Customs, Excise and Service Tax Appellate Tribunal (CESTAT) by its...
20 June, 2014
The Tax Administration Reform Commission (TARC) headed by Dr. Parthasarathi Shome has suggested merging of two Boards – Central Board of Excise & Customs (CBEC) and Central Board of Direct Taxes (CBDT). The panel says such integration of management can be achieved in 5 years time. Having separate Boards is not in tune with global best practices as per the first report of the com...
5th June, 2014
The High Court of Punjab & Haryana recently examined warp and weft to judge if HDPE woven fabric is artificial silk [A.R. Plastic P. Ltd. v. State of Haryana]. Disposing the batch of appeals by various dealers, it held that HDPE / PP woven fabric falls within entry 51 of Schedule B of Haryana VAT Act, 2003, (the Act) and is exempt from VAT.
Goods at issue
The appellant s...
16 May, 2014
The Calcutta High Court in Joyrath Projects P ltd v. Sales Tax Officer [W. P. No. 19185 (w) of 2013], had occasion to examine ‘transfer of property’ and determine whether good purchased for use in works contract being a building contract amounted to sale as per the Central Sales Tax Act.
At issue was refusal by the Sales Tax Officer to issue C form to the dealer who had purchas...
18th February, 2014
In the Indian Interim Budget 2014 certain changes have been made in the tariff structure in respect of excise and customs duties besides extending exemption from service tax to two sectors.
As per the Press Release issued by the Government of India, excise duty on all goods falling under Chapter 84 & 85 of the Schedule to the Central Excise Tariff Act has been red...
4 February, 2014
Dealing with an interesting basket of disputes, the ITAT, Jaipur, on 27th January, 2014, decided two important questions. One related to the ‘market price’ of power purchased (consumed) calculated at ‘arm’s length’ by the assessee, and other relating to carbon credits.
The facts in Shree Cement v. ACIT
Power produced by the assessee in its power undertaking was consumed b...
16 January, 2014
The CESTAT in a recent case has held that service of gym instructor is essential for the physical fitness of employees and being necessary inputs, Cenvat credit of Service Tax would be admissible on such service.
Reasoning that the benefit of Cenvat credit is concomitant with liability to service tax the tribunal also held that registration is not essential to avail cred...
16 January, 2014
In its recent decision dated 10-1-2014, [Tesco International Sourcing v. DDIT] the ITAT (Bangalore) had occasion to examine ‘Purchase of goods in India for the purpose of export’. Earlier this year the Karnataka High Court in Nike Inc, had observed that the purpose of the said clause was to encourage exports and the activity of the assessee in assisting Indian manufacturers ...
13 December, 2013
Is loss on derivative transactions assessable as business loss? This was the question before the Tribunal in Platinum Asset Management Ltd v. DDIT. The department treated loss from derivative transactions as business loss as against the assessee’s claim of the same being capital loss. The assessee argued that was eligible to set off the same against short-term capital gains ...
15th November, 2013
Reinforcing, perhaps, the significance of finer distinctions in fact situations and observing that tax laws have to be interpreted at times with a touch of equity, the Delhi High court in DIT –I v. Alcatel Lucent held that interest under Section 234 B of Income Tax Act was payable by the assessee, since tax was payable and neither payment had been made nor TDS deducted.
25th October, 2013
Catering service provided in canteen maintained in a factory has been exempted from service tax. Notification No. 14/2013-S.T. dated 22-10-2013 has been issued by CBEC to insert entry no. 19A in the mega exemption Notification No. 25/2012-ST.
The new entry extends benefit of exemption to services provided in relation to serving of food or beverages by a canteen maintained...
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