Taxation Law - Export Supply – Compensation Cess – Exemption Denied – Levy Deferred – Petitioners challenged the levy of Compensation Cess at 160% on supply of branded tobacco to merchant exporters for export, which was otherwise taxed at a concessional GST rate of 0.1% under Notification Nos. 40/2017 and 41/2017 – Held: Though no separate exemption notification was i...
Taxation Law - Capital Gains – Timing of Transfer under JDA – Section 2(47)(v) – Substantive Assessment from A.Y. 2007–08 – Not Taxable in A.Y. 2006–07 - Held: The transaction under the unregistered Joint Development Agreement dated 23.11.2005 did not amount to “transfer” under Section 2(47)(v) read with Section 53A of the Transfer of Property Act in...
Service Tax – Exemption for Legal Practitioners – Demand Raised Based on Third-Party Disclosure – Notice Quashed - Petitioner, an individual practicing advocate, was issued a service tax demand notice and recovery order based on third-party income disclosure – Court reiterated settled law that legal services provided by individual lawyers are exempt under the negative list ...
Customs Law – Section 14(1), 14(2), 27, 142 of the Customs Act - Refund of Duty – Encashment of Bank Guarantee Not ‘Payment’ – Refund Allowed – Appellant furnished bank guarantees for differential customs duty under High Court orders—Upon High Court’s dismissal, department encashed guarantees—Supreme Court held: Bank guarantee encashment ...
Taxation Law - Customs – Duty Drawback – Circular No. 35/2010-Cus. – Clarificatory Nature – Retrospective Application – Dispute over denial of 1% AIR duty drawback to exporters of Soyabean Meal who availed Central Excise rebate – Supreme Court held that CBEC Circular No. 35/2010-Cus. was clarificatory in nature and must apply retrospectively – Circular did...
Taxation Law - Income Tax – Reassessment Proceedings – Section 148A and 149 of Income Tax Act – Reassessment Proceedings Quashed - Initiation of reassessment based on incorrect premise that the petitioner was a non-filer despite evidence of filing Income Tax Return for A.Y. 2015-16 – Issuance of notice under Section 148A(b) without furnishing material supporting allegations...
Taxation Law - Sales Tax – Purchase from Exempt Dealers – Liability of Purchaser – Upheld – The appellants contended that purchase tax under Section 5A of the Kerala Act and Section 7A of the Tamil Nadu Act was not payable when the seller was exempt from sales tax – The Court held that these sections are independent charging provisions and purchase tax is leviable on ...
Taxation Law - Income Tax Settlement – Grant of Immunity – Scope under Section 245H – Immunity Upheld – The Revenue assailed the Settlement Commission’s order only to the extent it granted immunity from prosecution and penalty to the assessee company and its directors – Held: The Settlement Commission’s satisfaction on full and true disclosure, manner of d...
Taxation Law - Income Escaping Assessment – Validity of Reopening – Prima Facie Material Justifying Reassessment – Reopening of assessment for AY 2012-13 challenged on grounds that original assessment under Section 143(3) was already concluded and that reassessment notice was issued based solely on third-party information – Held: Department acted on tangible material receiv...
Income Tax Law - Business Loss and Commercial Expediency – Deduction for Expenditure on Group Company – Permitted – Appellant incurred Rs.200.47 lakh in deposits and interest and Rs.49.18 lakh as expenses in connection with its group company MMC – Court held that these were for commercial expediency to protect reputation and business continuity – Following earlier dec...