Indirect Tax Case Laws - July 23.

 

·       Tribunal in the case of M.N. Dastur & Company Pvt. Ltd. v. CST, (ST Appeal 75128 of 2017), held that compensation received for termination of an agreement is not a consideration and hence, not exigible to Service Tax (‘ST’) 

 

·      Telengana  AAR holds ITC reversal not required on commercial credit note received towards post-sale discount  

 

·      Salary Is Out Of The Purview Of Service Tax & hence Mumbai CESTAT Quashes Service Tax Demand Against Kellogg. 

 

·      The Hon’ble Calcutta High Court in Earthmark Traders v. Joint Commissioner, State Tax, Chinabazar & Rajakatra Charge & anr. (MAT 791 OF 2023) set aside the order passed by Appellate Authority vide its order dated 12.05.2023 and held that the Appellate Authority cannot travel beyond the allegations made in the Show Cause Notice (“the SCN”)

 

·      AP AAR held that No reversal of ITC on post supply discount if there is no corresponding reduction in outward liability by supplier 

 

·      The Supreme Court in Commissioner of Central Excise and Service Tax v. M/s Reliance Industries Ltd. [Civil Appeal No. 6033 of 2009] held that the assessee was bonafide and has correctly discharged duty liability by relying on the CESTAT decision even though the same was later overturned by the Hon’ble Supreme Court

 

·      The Department has withdrawn its Civil Appeal no. 2372 of 2021 before Supreme Court in terms of Board Circular dtd. 28.02.2023. This Appeal was filed by Department against decision dated 22.12.2020 whereby Service Tax demand was set aside by CESTAT, New Delhi, on Liquidated Damage & Penal Charges under Declared Service u/s 66E(e). The issue now stands concluded in favour of Assessee

 

·       AP AAR held that 𝐈𝐓𝐂 𝐫𝐞𝐯𝐞𝐫𝐬𝐚𝐥 𝐢𝐬 𝐧𝐨𝐭 𝐫𝐞𝐪𝐮𝐢𝐫𝐞𝐝 𝐟𝐨𝐫 𝐟𝐢𝐧𝐚𝐧𝐜𝐢𝐚𝐥/ 𝐜𝐨𝐦𝐦𝐞𝐫𝐜𝐢𝐚𝐥 𝐜𝐫𝐞𝐝𝐢𝐭 𝐧𝐨𝐭𝐞𝐬 𝐫𝐞𝐜𝐞𝐢𝐯𝐞𝐝 𝐚𝐬 𝐚 𝐩𝐨𝐬𝐭-𝐬𝐚𝐥𝐞 𝐝𝐢𝐬𝐜𝐨𝐮𝐧𝐭

 

·       Gujarat HC held that refund application can be filed for the same period again when refund for the same period has been sanctioned earlier. (Shree Renuka Sugars Ltd)

 

·      AP High court in the case of Thirumalakonda Plywoods held that merely late fees was paid while filing GST return does not exonerate the delay and hence no reason for rejection of input credit.