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Home e-Newsletters Index Year 2019 November Day 16 - Saturday

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TMI Tax Updates - e-Newsletter
November 16, 2019

Case Laws in this Newsletter:

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



Highlights / Catch Notes

    GST

  • Zero rated supply or not - The supply of stores imported or otherwise, to foreign going vessels cannot, therefore, be construed as export unless it is marked specifically for a location outside India. It is not a zero-rated supply.

  • Exemption from GST - Supply of biscuits, soaps etc. earmarked ‘FOR PDS SUPPLY ONLY’ to fair price shops/PDS distributors - Supply of goods through PDS is not exempted

  • Detention of goods - the conveyance in question has been detained on the ground of discrepancy in transport certificate which is not a requirement prescribed under the statute. Under the circumstances, the second respondent was not justified in passing the order of detention under section 129(1) of the CGST Act.

  • Input tax credit - shifting to GST regime - transitional credit - The respondents (Govt) are directed to either open the online portal so as to enable the petitioner to again file the rectified FORM GST TRAN-1 electronically or accept the manually filed FORM GST TRAN-1 with corrections on or before 30th November, 2019

  • Income Tax

  • Reversal of profits declared in earlier years on account of estimated loss expected - valuation of work in progress (WIP) - The matching principle requires recording expenses in the same accounting period in which the revenues were earned as a result of the expenses. Expense recognition, similar to revenue recognition, has a balance sheet effect. - The action of the assessee upsets the applecart of mercantile system of accounting, the matching principles.

  • TDS u/s 195 - appealable order u/s 246A - there being a specific provision under section 248 of the Act for filing appeal against order passed u/s 195(2) of the Act, that too by payer / deductor of tax at source the said order cannot be challenged under section 246A of the Act by the assessee.

  • Not only that the appeal is ill conceived, but, even after pointing out the legal position, rather than explaining his stand or expressing remorse for having filed this appeal, the assessee did not even bother to attend the court proceedings any further, and submitted this note pointing out, on the basis of, what appears to be, fallacious logic, as to why special bench is required to be constituted in this case. Such an approach cannot meet any judicial approval, including by this forum. - Appeal dismissed with cost.

  • Rejection of books of account - Instead of making the assessment by considering the provisions of section 145(3) read with section 144, the AO has proceeded to make specific disallowance after rejection of books of account. This action of the AO is not permitted under law

  • TDS u/s 195 - Retrospective amendment - The amendment brought in by the Finance Act with retrospective effect, which was passed in the year subsequent to the year under consideration, should not be considered for penalizing the assessee by treating him as an Assessee in default.

  • TDS u/s 195 - Royalty - The fact that the charges for use of the simulator is separately quantified on hourly basis does not mean that the Assessee is hiring the same or making payment for a right to use the same. Without the imparting of training by the instructors, the hiring of simulator on its own does not have any purpose. It cannot therefore be said that the Assessee paid royalty for use of simulator.

  • Customs

  • Prohibited goods or not - powers conferred by Clause 8(1) of the Imports (Control) Order, 1986 - For, a quasi judicial order passed in exercise of powers under the Statutory Order which stands repealed along with the repealed Act, is not saved especially when it will be per se repugnant to 1992 Act and defeat the spirit of opening of the import regime for the stated goods

  • Provisional release of gold stock in trade - Advance Authorisation Scheme - Exhibition Export Scheme - Due to seizure of almost the whole working capital (Goods, raw material, W.I.P.), for over 6 months, the appellant is facing difficulty of livelihood, it’s workmen, and others too. - The provisional release of goods allowed on certain terms.

  • Indian Laws

  • Rejection of Arbitration application - If the court were to take a contrary approach and minutely examine the plea and judge its credibility or reasonableness, there would be a danger of its denying a forum to the applicant altogether, because rejection of the application would render the finding (about the finality of the discharge and its effect as satisfaction) final, thus, precluding the applicant of its right event to approach a civil court.

  • Service Tax

  • Extended period of limitation - the appellant itself has chosen to follow the procedure laid down under Rule 6 (3A) on and from 01.04.2014 by reversing the proportionate input service credit attributable to the exempted service of trading, which clearly shows the knowledge of the appellant as to the requirement of law, which was also done prior to the issuance of the Show Cause Notice - extended period rightly invoked.

  • Erection, Commissioning or Installation Service (ECIS) - Had there been a break up of the material and the service components in the contract itself, the demand would have been raised on the service component ignoring the material. - it is found that the contract in question is a composite works contract - The demand in this case has been made under Erection, Commissioning and Installation Service. ECIS does not include the contract where transfer of materials is involved. - Demand set aside.

  • Central Excise

  • Scope of SCN - Manufacturing activity taking place or not - the scheme of Section 11A does not contemplate that before issuance of any show cause notice, there must, prima facie, be: (a) a preliminary determination that the process or activity undertaken in the matter amounts to manufacture; and (b) before arriving at such preliminary determination, any hearing to the concerned person is contemplated.

  • In the present case, eligibility to benefit of the notification is not in dispute and therefore the strict interpretation of the notification is not to be followed because once the appellant is found to be eligible for the benefit of the notification thereafter liberal procedure to be followed, is permissible - the substantive benefit should not be denied for procedural infractions

  • Rate of Interest on Refund of duty paid - once there is a notification of Central Government fixing 6% as the rate of interest same has to be followed as having power of statute. - The error of adjudication which is very much apparent irrespective once committed cannot be repeated.

  • VAT

  • Recovery of outstanding tax arrears from the purchaser of the property - The petitioner being a bona fide purchaser who has purchased the subject property in sale proceedings under the Securitisation Act prior to any charge having been created in favour of the first respondent has no liability to discharge the debts of the third respondent.


Articles


Notifications


Circulars / Instructions / Orders


News


Case Laws:

  • GST

  • 2019 (11) TMI 715
  • 2019 (11) TMI 714
  • 2019 (11) TMI 713
  • 2019 (11) TMI 712
  • 2019 (11) TMI 711
  • 2019 (11) TMI 710
  • Income Tax

  • 2019 (11) TMI 709
  • 2019 (11) TMI 708
  • 2019 (11) TMI 707
  • 2019 (11) TMI 706
  • 2019 (11) TMI 705
  • 2019 (11) TMI 704
  • 2019 (11) TMI 703
  • 2019 (11) TMI 702
  • 2019 (11) TMI 701
  • 2019 (11) TMI 700
  • 2019 (11) TMI 699
  • 2019 (11) TMI 698
  • 2019 (11) TMI 697
  • 2019 (11) TMI 696
  • 2019 (11) TMI 695
  • 2019 (11) TMI 694
  • 2019 (11) TMI 693
  • 2019 (11) TMI 692
  • 2019 (11) TMI 691
  • 2019 (11) TMI 690
  • 2019 (11) TMI 689
  • Customs

  • 2019 (11) TMI 688
  • 2019 (11) TMI 687
  • Insolvency & Bankruptcy

  • 2019 (11) TMI 686
  • 2019 (11) TMI 685
  • 2019 (11) TMI 684
  • 2019 (11) TMI 683
  • Service Tax

  • 2019 (11) TMI 682
  • 2019 (11) TMI 681
  • 2019 (11) TMI 680
  • 2019 (11) TMI 679
  • 2019 (11) TMI 678
  • 2019 (11) TMI 677
  • 2019 (11) TMI 676
  • 2019 (11) TMI 675
  • Central Excise

  • 2019 (11) TMI 674
  • 2019 (11) TMI 673
  • 2019 (11) TMI 672
  • 2019 (11) TMI 671
  • 2019 (11) TMI 670
  • 2019 (11) TMI 669
  • 2019 (11) TMI 668
  • CST, VAT & Sales Tax

  • 2019 (11) TMI 667
  • 2019 (11) TMI 666
  • 2019 (11) TMI 665
  • 2019 (11) TMI 664
  • Indian Laws

  • 2019 (11) TMI 663
  • 2019 (11) TMI 662
 

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