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Home e-Newsletters Index Year 2017 March Day 17 - Friday

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TMI Tax Updates - e-Newsletter
March 17, 2017

Case Laws in this Newsletter:

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



Highlights / Catch Notes

    Income Tax

  • Interest expenditure on borrowed fund advanced to its sister concern u/s 36(1)(iii) - Assessee did not give any explanation as to how there is a commercial expediency in advancing the money to sister concerns - AO to re-adjudicate the facts and details - AT

  • Disallowance u/s. 40A(3) - assessee has made cash payment of ₹ 2 Lakhs to a sister concern - this amount was not claimed as an expenditure, no disallowance is called for u/s. 40A(3) - AT

  • Rejection of books of accounts - the assessee is not maintaining the proper books of account with regard to stock - to plug the leakage of revenue, certain disallowance is inevitable - the lower authorities are justified in rejecting the books of account of the assessee by invoking the provisions of Section 145(3) - AT

  • Rental income from the property - income from other sources OR income from house property - By not recording construction expenses in books of account, the rights of ownership of the assessee over the property cannot be taken away and it remains the owner of the property - rental income from the property to be assessed under the head “income from house property” - AT

  • Customs

  • Increase in the rate of duty vide notification dated 21.01.2013 - goods were assessed and cleared was 21.01.2013 - admittedly the Notification was printed, published and offered for public only on 04.02.2013 as such the affect of the Notification cannot be given to any day prior to that date - demand of differential duty unjustified - AT

  • Valuation - transaction value was enhanced on the basis of certain alleged emails of third party - under-valuation must be established through proper methods under the law and that burden cannot be shifted to the importer - AT

  • DFIA benefits - validity of transfer of DFIA issued under SION E-5 (Biscuits) - There is no actual user condition in existence prior to the issue of PN 84 - There is no merits in the arguement of revenue that the amendments in the DFIA licenses have been obtained through fraudulent means and suppression of facts before the licensing authorities. - AT

  • Exemption from Cost Recovery Charges - The denial of exemption to the appellant on the ground that the due application was not filed in time and the matter was not followed-up is not justifiable. - CBEC to decide the issue - AT

  • Indian Laws

  • Offence punishable under Sections 138 read with 142 of the Negotiable Instruments Act - petitioner is the independent non-executive nominee director - No vicarious liability can be fastened on the petitioner in the absence of specific role being attributed to the petitioner. - HC

  • Co-operative Bank jurisdiction to invoke the provisions of SARFAESI Act, 2002 - load was taken by the father who has died - the petitioner, who has approached this Court, with unclean hands, suppressed knowledge of the loan transaction, steps taken by the bank for recovery, is not entitled to any equitable relief. - HC

  • Service Tax

  • CENVAT credit - goods imported for providing taxable services - Lighting equipments - Gloves and Tissues - the imported goods fall within the definition of parts and accessories of capital goods - credit allowed - AT

  • The dual approach by the Revenue is not legally sustainable. Having accepted the appellant assessee as advertising agency, a portion of the consideration in the same bill cannot be taxed under Business Auxiliary Service (BAS) - AT

  • Classification of services - additional activity related to main activity which is production process - Unloading of coal is only incidental operation in work, that cannot be only reason to categories the work order for taxing under cargo handling service - AT

  • Central Excise

  • 100% EOU - Valuation - The whole proceedings for demanding differential duty was solely on the ground that LME price of copper ingot as well as tariff value for import of brass scrap which were much higher and accordingly, the transaction value is held to be not correct - demand is not legal, set aside - AT

  • Exemption from duty - building a body or fabrication or mounting or fitting of structure or equipment on a chassis - denial of exemption on the premise that the car carrier trailer manufactured by the appellant is not mounted on the duty paid chassis is not correct - AT

  • CENVAT credit - eligible inputs - drawings and designs imported from Germany for setting up the plan - The property of designs and drawings are intangible and do not fall within the description of either inputs or capital goods - credit not allowed - AT

  • Refund claim - unjust enrichment - the price charged by the appellant did not include the element of duty - though they have mentioned the duty element, the same has not been received from the dealer - refund allowed - AT

  • Refund claim - when invoice showed duty and ex-duty price separately in invoice and on scrap being held non-excisable, refund of duty shown in invoice is not hit by bar of unjust enrichment as contracted price for scrap was inclusive of duty - AT

  • Transfer of CENVAT credit - Large Tax Payers Units (LTU) - the denial is only on the ground that such transfer was done before formal addition of Pune Unit in the revised registration - - there is no violation of any provisions or any serious threat to the Revenue of the Govt - transfer of credit allowed - AT

  • Manufacture - They are merely the scum thrown out in the process of manufacture of aluminium sheets. Therefore it cannot be said that dross and skimmings are transformation resulting in a new and different article with a distinctive name, character or use or that they ordinarily come to the market to be bought and sold and are known to the market, and duty cannot be levied - AT

  • CENVAT credit - bought out item - Without saree guard, the vehicle ( motor cycle) will remain incomplete and the same cannot be said to the finished goods ready for sale - credit allowed - AT

  • Imposition of penalty u/r 26 - wrongly passing of fraudulent cenvat credit - Issuance of cenvatable invoices without supply of goods for passing out fraudulent credit - Levy of penalty u/r 26 confirmed through reduced - AT

  • “Saree” which has undergone further processing such as embroidery, stitching of lace and tikki etc. and stitched with two or more kinds of fabrics will be classifiable as “Saree” under Chapter 50, 52 and 54 of the Central Excise Tariff Act, 1985 (CETA) depending upon the material of the fabrics, and not as made-ups under Chapter 63

  • VAT

  • Natural justice - The petitioner is right in contending that he had no clue as to whether or not his request for adjournment had been considered. Therefore, quite naturally, the petitioner would have been taken by surprise, when the impugned orders were passed - matter restored - HC


Articles


Notifications


Circulars / Instructions / Orders


News


Case Laws:

  • Income Tax

  • 2017 (3) TMI 667
  • 2017 (3) TMI 666
  • 2017 (3) TMI 665
  • 2017 (3) TMI 664
  • 2017 (3) TMI 663
  • 2017 (3) TMI 662
  • 2017 (3) TMI 661
  • 2017 (3) TMI 660
  • Customs

  • 2017 (3) TMI 633
  • 2017 (3) TMI 632
  • 2017 (3) TMI 631
  • 2017 (3) TMI 630
  • 2017 (3) TMI 629
  • 2017 (3) TMI 628
  • Service Tax

  • 2017 (3) TMI 659
  • 2017 (3) TMI 658
  • 2017 (3) TMI 657
  • 2017 (3) TMI 656
  • 2017 (3) TMI 655
  • 2017 (3) TMI 654
  • Central Excise

  • 2017 (3) TMI 653
  • 2017 (3) TMI 652
  • 2017 (3) TMI 651
  • 2017 (3) TMI 650
  • 2017 (3) TMI 649
  • 2017 (3) TMI 648
  • 2017 (3) TMI 647
  • 2017 (3) TMI 646
  • 2017 (3) TMI 645
  • 2017 (3) TMI 644
  • 2017 (3) TMI 643
  • 2017 (3) TMI 642
  • 2017 (3) TMI 641
  • 2017 (3) TMI 640
  • 2017 (3) TMI 639
  • 2017 (3) TMI 638
  • 2017 (3) TMI 637
  • 2017 (3) TMI 636
  • 2017 (3) TMI 635
  • 2017 (3) TMI 634
  • CST, VAT & Sales Tax

  • 2017 (3) TMI 669
  • 2017 (3) TMI 668
  • 2017 (3) TMI 627
  • 2017 (3) TMI 626
  • 2017 (3) TMI 625
  • Indian Laws

  • 2017 (3) TMI 624
  • 2017 (3) TMI 623
 

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