Income Tax – Section 43B – Deduction Disallowed – Bottling Fee – Actual Payment Required – Held that furnishing of bank guarantee does not amount to “actual payment” under Section 43B – Requirement is for actual outflow of funds to the exchequer – Bottling fees are not tax, duty, cess or fee but consideration for exclusive privilege under excis...
Taxation Law - Income from Property – Section 9(1)(iv) – “Annual charge not being a capital charge” – Deductibility of Bombay municipal property tax and urban immovable property tax – The assessee, an investment company, claimed deduction of municipal property tax and urban immovable property tax paid during the year – Held: Both levies are annual liabilit...
Customs – Duty Drawback – DEPB Scheme – Re-export of Defective Goods – Refund Mechanism – Appellant imported watch parts, paid duty via DEPB debit – Upon finding parts defective, re-exported the same and claimed duty drawback under Section 74 – Department rejected claim on ground that duty was not paid in cash – Held: Once goods are re-exported, asse...
Income Tax – Reference under Section 66 – Scope of Jurisdiction – High Court’s jurisdiction under Section 66 is confined to questions of law arising out of the Tribunal's order – Such questions must have been raised before or dealt with by the Tribunal – Held: A question neither raised before the Tribunal nor dealt with by it cannot be said to arise out of i...
Taxation – Classification – Article 14 – Validity of taxing only Virginia Tobacco – Andhra Act XIV of 1955 amended Section 5 of Madras General Sales Tax Act to impose tax on Virginia tobacco while exempting country tobacco (Nattu tobacco) – Held: Classification based on clear and intelligible differentia such as taste, texture, cultivation, usage, and marketability &n...
Taxation Law - Goods and Services Tax – Cross-Empowerment – Jurisdiction of CGST Officers – Petitioners assigned to State Tax Authorities challenged issuance of show cause notices by Joint Commissioner, CGST – Held: Section 6(1) of CGST Act provides inherent and automatic cross-empowerment to officers of Centre and States – Notification required only when conditions a...
Entertainment Tax – Discrimination Based on Language – Article 14 Violation – Andhra Pradesh levied 24% entertainment tax on Hindi films while levying only 10% on Telugu films – Held: Classification based solely on language is arbitrary – No reasonable nexus with object of taxation – Violates Article 14 of the Constitution – Impugned notification struck do...
Taxation – Works Contract – Transfer of Property in Goods – Printing of Lottery Tickets – Appellant engaged in printing lottery tickets using ink and chemicals procured by itself while paper was supplied by contractee – Assessing Authority levied tax under Section 3F(1)(b) of U.P. Trade Tax Act on ink and chemicals – Appellate Authority and Tribunal deleted levy...
Taxation Law - Sale vs Works-Contract – Installation of Lifts – Held to be Sale – Assessee entered into contracts for manufacture, supply, erection and installation of elevators – Claimed deduction under Sections 5F and 5G of the APGST Act treating transactions as works-contracts – Assessing authority treated it as sale under Entry 82 – Supreme Court held: Predo...
Excise Valuation – Cost of Wooden Crates – Section 4 of the Central Excises and Salt Act, 1944 – Packing costs includible unless durable and returnable – Assistant Collector included cost of wooden crates in assessable value of glass sheets – Collector (Appeals) and CEGAT held otherwise – Allahabad High Court reversed, holding crates necessary for marketability ...