Maharashtra LBT Notification | Delhi & Himachal Pradesh: Amendment in Schedule | Nagaland: Change in rate of tax | Punjab: Extension in last date of e-filing of VAT-15 for the 1st quarter | Karnataka: Extension of revision option under e-UPaSS module | Himachal Pradesh: Amendment in HPVAT Schedule A & B | West Bengal: Extension in due date for submission of return for quarter ending June '15 | Haryana VAT (Amendment) Rules, 2015 | Uttarakhand: Amendment in VAT Schedule | Delhi: Extension in date for filing of online return for 1st quarter of 2015-16 | Guest Column: Confusion towards measure of VAT on Builders and Developers & Highlights of Report on the GST Bill by Select Panel of Rajya Sabha [see 'Notes & News'] | Madhya Pradesh VAT (Amendment) Bill, 2015 | Uttar Pradesh: Change in rate of tax on Petrol & Diesel | Goa: Extension in date for filing of returns for first quarter of 2015-16 | Report of The Select Committee on GST Bill [see 'Notes & News'] | Bihar Tax on Entry of goods int

Recent Updates

2015-VIL-397-CESTAT-CHE-CE|CENTRAL EXCISE |CESTAT Cases | 03.08.2015

... n ground of unjust enrichment – Contract price - HELD - In the present case, since the rates are fixed by TWAD Board which is applicable for full year, there is no variation in the price and the supplier fixes the rate contract every financial year, clearances cannot be stopped and the appellant has to clear on a higher price till receipt of the fresh rate contract - When appellant had paid excise duty at higher price for the intervening period based on the previous year rate pending the receipt of the rate contract for the year 1998-99. Therefore, the appellants are eligible for refund of excise duty paid for the period 2... [Read more]

... n ground of unjust enrichment – Contract price - HELD - In the present case, since the rates are fixed by TWAD Board which is applicable for full year, there is no variation in the price and the supplier fixes the rate contract every financial year, clearances cannot be stopped and the appellant has to clear on a higher price till receipt of the fresh rate contract - When appellant had paid excise duty at higher price for the intervening period based on the previous year rate pending the receipt of the rate contract for the year 1998-99. Therefore, the appellants are eligible for refund of excise duty paid for the period 28.5.98 to 31.8.98 - Refund is time barred for the period from 28.3.1998 to 27.5.1998 (ii) the appellant is eligible for refund for the period 28.5.98 to 31.8.98. Assessee appeal is partly allowed [Read less]

2015-VIL-308-ALH|VAT |High Court Cases | 03.08.2015

... forging of steel and metal fabricated goods. The petitioner is also doing job works for other parties on the basis of labour charge - rebate of entry tax on the goods - "reasons to believe" to initiate proceedings for re-assessment – HELD – The words "any deduction or exemptions have been wrongly allowed" would also include a rebate which has wrongly been allowed - We have perused the assessment order and we find that there is no discussion or any finding as to how rebate was permissible to the petitioner. Section 4 (6) of the Entry Tax Act clearly indicates that the goods brought into the local area has to be sold or re-... [Read more]

... forging of steel and metal fabricated goods. The petitioner is also doing job works for other parties on the basis of labour charge - rebate of entry tax on the goods - "reasons to believe" to initiate proceedings for re-assessment – HELD – The words "any deduction or exemptions have been wrongly allowed" would also include a rebate which has wrongly been allowed - We have perused the assessment order and we find that there is no discussion or any finding as to how rebate was permissible to the petitioner. Section 4 (6) of the Entry Tax Act clearly indicates that the goods brought into the local area has to be sold or re-sold in the same form in the course of inter-state trade and commerce in order to be eligible for a rebate. If any manufacturing activity is carried on, rebate is not permissible. What would be the effect of forging is left open to be decided in the assessment proceedings as it requires evidence - there was sufficient reasons to believe for the assessing authority to seek permission for reopening the assessment. The belief was based on valid and cogent reasons - The re-assessment on the same material was permissible for valid reasons inasmuch as we find that there was no discussion or any finding as to whether in the given case rebate was permissible to the petitioner - The writ petition fails and is dismissed [Read less]

2015-VIL-309-GUJ|VAT |High Court Cases | 03.08.2015

... xcess payment of input tax credit – HELD – Following the ratio of State of Gujarat V. Cosmos International Ltd assessee cannot be held to pay the interest and penalty on the tax levied since the assessee has already paid excess Input Tax Credit – Revenue appeal dismissed

2015-VIL-396-CESTAT-MUM-ST|SERVICE TAX |CESTAT Cases | 03.08.2015

... t - Rule 3(i) & Rule 9 of CCR, 2004 - Availment of credit without obtaining the input service distributor registration by head office and without following procedure laid down for said purpose – Document for availing Cenvat credit – Demand of 27.79 Cr and penalty of 40.57 Cr - HELD – The important aspect for availing the credit is that service which has been provided by the service provider, it should have service tax paid character, invoices as against sale of service should be tax paid. The registration and issuance of input service distributor invoices is merely a procedural requirement. In this procedure neither input ... [Read more]

... t - Rule 3(i) & Rule 9 of CCR, 2004 - Availment of credit without obtaining the input service distributor registration by head office and without following procedure laid down for said purpose – Document for availing Cenvat credit – Demand of 27.79 Cr and penalty of 40.57 Cr - HELD – The important aspect for availing the credit is that service which has been provided by the service provider, it should have service tax paid character, invoices as against sale of service should be tax paid. The registration and issuance of input service distributor invoices is merely a procedural requirement. In this procedure neither input service distributor makes any payment of service tax nor utilized credit for payment of any duty. Procedure for input service distributor is only, in order to maintain co-relation between the purchase of service and distribution thereof to the unit of the registered person who are under same entity. As per the facts of the present case, the case of the appellant is on better footing for the reason that they have availed cenvat credit on the valid invoices issued by input service distributors - Appellant has availed Cenvat Credit on the invoices issued by the input service distributor after obtaining the registration, therefore the invoices on which credit was taken are valid documents. Since, there is no even procedural lapse on the part of the appellant, Cenvat credit taken on the invoices issued by registered input service distributor is correct and legal – Impugned order aside, assessee appeal allowed [Read less]

2015-VIL-395-CESTAT-MUM-ST|SERVICE TAX |CESTAT Cases | 03.08.2015

... 004 - Credit on the common input services which are used in relation to the goods manufactured and cleared on payment of duty as well as motor vehicle imported as such and traded in the domestic market - whether appellant is required to pay 5% of total sale value of the goods traded by them in terms of Rule 6(3)(i) when the appellant paid the actual credit attributed to the quantum trading sale in terms of Rule 6(3A) alongwith interest following the option available under Rule 6(3)(ii) – HELD - Appellant has availed Cenvat Credit in respect of common input services, which has been used in relation to the manufacture of the... [Read more]

... 004 - Credit on the common input services which are used in relation to the goods manufactured and cleared on payment of duty as well as motor vehicle imported as such and traded in the domestic market - whether appellant is required to pay 5% of total sale value of the goods traded by them in terms of Rule 6(3)(i) when the appellant paid the actual credit attributed to the quantum trading sale in terms of Rule 6(3A) alongwith interest following the option available under Rule 6(3)(ii) – HELD - Appellant has availed Cenvat Credit in respect of common input services, which has been used in relation to the manufacture of the final product as well as for trading of bought out cars. Therefore they are supposed to pay an amount equivalent to Cenvat Credit which is attributed to the input service used for exempted service i.e. sale of car. In our view, three options have been provided under rule 6(3) and it is up to the assessee that which option has to be availed. Revenue could not insist the appellant to avail a particular option. In the present case the appellant have admittedly availed option as provided under Rule 6(3)(ii) and paid an amount as required under sub rule (3A) of Rule 6 – Since the payment on monthly basis is provisional basis, therefore it is not mandatory that whole amount or part of the amount as required to be paid on every month. The appellant though belatedly calculated the amount required to be paid in terms provided under Rule (3A) of Rule 6, therefore to fulfil the condition, assessee should pay the said amount, which has been complied by the appellant - Assessee appeal allowed [Read less]

2015-VIL-74-SC-CE|CENTRAL EXCISE |Supreme Court Cases | 03.08.2015

... nd Salt Act, 1944, can continue against the legal representatives/estate of a assessee after he is dead - whether the dead person's property, in the form of his or her estate, can be taxed without the necessary machinery provisions in a tax statute – Recovery of sums due to Government - HELD - The argument that Section 11A of the Central Excises and Salt Act is a machinery provision which must be construed to make it workable can be met by stating that there is no charge to excise duty under the main charging provision of a dead person - While interpreting the provisions of the Central Excises and Salt Act, legal heirs who... [Read more]

... nd Salt Act, 1944, can continue against the legal representatives/estate of a assessee after he is dead - whether the dead person's property, in the form of his or her estate, can be taxed without the necessary machinery provisions in a tax statute – Recovery of sums due to Government - HELD - The argument that Section 11A of the Central Excises and Salt Act is a machinery provision which must be construed to make it workable can be met by stating that there is no charge to excise duty under the main charging provision of a dead person - While interpreting the provisions of the Central Excises and Salt Act, legal heirs who are not the persons chargeable to duty under the Act cannot be brought within the ambit of the Act by stretching its provisions – Assessee appeal allowed [Read less]

2015-VIL-73-SC-CE|CENTRAL EXCISE |Supreme Court Cases | 03.08.2015

... ortation cost and transit insurance cost to arrive at the transaction value in terms of Section 4(3)(d) of the Act – Place of removal - HELD – ‘Place of removal', in a given case becomes a crucial determinative factor for the purpose of valuation. In the present context, if it is found that transportation charges and transit insurance charges were incurred after the 'place of removal', then they are not to be included. On the other hand, if these charges are incurred before the 'place of removal' then they are to be included while arriving at the transaction value. Again, in the context of the present case, what is to be d... [Read more]

... ortation cost and transit insurance cost to arrive at the transaction value in terms of Section 4(3)(d) of the Act – Place of removal - HELD – ‘Place of removal', in a given case becomes a crucial determinative factor for the purpose of valuation. In the present context, if it is found that transportation charges and transit insurance charges were incurred after the 'place of removal', then they are not to be included. On the other hand, if these charges are incurred before the 'place of removal' then they are to be included while arriving at the transaction value. Again, in the context of the present case, what is to be determined is as to whether the 'place of removal' was the factory gate of the respondent or it was the premises of the purchaser at the time of delivery of these goods - Perfunctory manner in which the appeal of the assessee is allowed by Tribunal, cannot be countenanced. In the instant case, there is a detailed discussion in the order of the Commissioner on the facts of the case. Those facts are not adverted to or dealt with - Those facts are not adverted to or dealt with. The decision of the Commissioner is overruled with single observation that the case is covered by the judgment in Escorts JCB Ltd., without discussing as to how it was so covered. This is notwithstanding the fact that the decision as to which is the 'place of removal' depends upon the facts of each case - We may record that as per the Commissioner, place of removal was the place of delivery at the buyer's premises. However, since no documents are produced before us, we are not in a position to comment as to whether the aforesaid view taken by the Commissioner is proper or not - Accordingly, the appeals are allowed by remitting the cases to the Tribunal for fresh consideration - Revenue Appeal allowed by way of remand [Read less]