2021-TIOL-728-HC-MAD-IT

Doosan Infracore India Pvt Ltd Vs DCIT

Whether mere intimation u/s 127 for transfer of file to jurisdictional ITO in case of merger, is not sufficient discharge of obligation on part of taxpayer to inform Tax Department about merger - YES: HC

Whether amalgamation cannot be used as tool to defeat assessment and re-assessment proceedings - YES: HC

Whether when taxpayer himself actively participated in re assessment proceedings of amalgamated company by defending the proceedings, then it cannot be said that order has been passed in name of defunct company to scuttle re-assessment proceeding - YES: HC

- Case disposed of: MADRAS HIGH COURT

2021-TIOL-727-HC-AHM-IT

Rajena Agro Products Pvt Ltd Vs ACIT

Whether once additions made during assessment stood deleted by ITAT and has attained finality, then reopening on basis of such addition presuming it to be escaped income, is without authority of law - YES: HC

- Assessee's writ application allowed: GUJARAT HIGH COURT

2021-TIOL-589-ITAT-MUM

Rolex Steel And Engineering Company Vs ITO

Whether additions on account of bogus purchases framed @ 12.5% merit being reduced to 6% where the assessee is able to file some documents in support of such purchases, while being unable to furnish other documents - YES: ITAT

- Assessee's appeal partly allowed: MUMBAI ITAT

2021-TIOL-588-ITAT-MUM

Hicon Constructions Vs DCIT

Whether hundred per cent disallowance for bogus purchase cannot be done, if sales are not doubted - YES: ITAT

- Assesee's appeal partly allowed: MUMBAI ITAT

2021-TIOL-587-ITAT-MUM

Seth Hirachand Mutha Shaikshanik Trust Vs ITO

Whether interest u/s 234E can be demanded in respect of a period which is before the date on which the provisions of Section 234E came into effect - NO: ITAT

- Assessee's appeal allowed: MUMBAI ITAT

2021-TIOL-586-ITAT-BANG

Prakash Babu Nakundhi Krishna Reddy Vs ACIT

Whether it is a fit case for remand where the assessee is required to explain the source of cash deposit in the cash account with supporting evidence - YES: ITAT

- Case remanded: BANGALORE ITAT

2021-TIOL-103-AAR-GST

Manoj Mittal

GST - The applicant runs a business divided in two sections - One section has a sweet parlour and the applicant is claimed to be engaged in selling sweetmeats, namkeens and bakery items off the counter in the form of takeaways from the said sweet parlour - In the other section of the premises, the applicant is claimed to be engaged in preparing and serving fast food snacks and beverage items which can either be consumed at the premises or allowed as takeaways - Additionally, the applicant is also providing catering services to an educational institution which provides education services up to secondary school - The applicant approached the AAR seeking to know whether sale from the portion of the sweetmeats and bakery shop should be categorized as supply of goods; whether input tax credit should be eligible on the sale of items specified in the preceding question; can the supply of food items and beverages from the facility which offers the opportunity of eating at the same premises be classified as restaurant services attracting a rate of GST of 5%; can input tax credit be availed on restaurant services; in case of receipt of common input tax credit in the form of inputs, input services and capital goods, will reversal of input tax credit be required in terms of Rule 42 and 43 of the CGST Rules 2017; and whether the catering services provided to the educational institution qualify as an exempt supply based on the agreement.

Held - The supply of food and beverages from the sweetmeats counter by the applicant, where the customers have not been provided with any services in relation to consume the same in the premises, shall be categorized as supply of goods and the applicant is eligible to avail input tax credit in respect of such supply of goods subject to conditions as laid down in Chapter V of the GST Act and rules made there under - Supply of food items and beverages by the applicant which offers the facility of eating in the same premises along with takeaway of the same shall be treated as restaurant services and shall attract tax @ 5% provided that credit of input tax charged on goods and services used in supplying the service has not been taken - Supply of catering services to the educational institution, based on the agreement, is found to be covered under entry serial number 66 (b)(ii) of the Exemption Notification No. 12/2017- CT(R), as amended from time to time (corresponding West Bengal State Notification No. 1136 F.T. dated 28.06.2017) and shall, therefore, be exempted from payment of tax - Supply of food and beverages to the auditor, guests/ parents on programme days, as it appears from the agreement shall be treated as 'outdoor catering' and shall attract tax @ 5% vide entry serial number 7(iv) of the Notification No. 11/2017- CT(R) dated the 28th June, 2017, as amended from time to time (corresponding West Bengal State Notification No. 1135 F.T. dated 28.06.2017) provided that credit of input tax charged on goods and services used in supplying the service has not been taken - The applicant shall follow the principle of apportionment of credit as laid down in sub-section (1) and (2) of section 17 of the GST Act read with rule 42 and 43 of the CGST/WBGST Rules, 2017 in respect of common input tax credit in the form of inputs, input services and capital goods: AAR

- Application disposed of: AAR

2021-TIOL-102-AAR-GST

Isotex Corporation Pvt Ltd

GST - The applicant-company is engaged in the manufacture of "Waste to Energy Plants/Devices" viz. Agro Waste Thermic Fluid Heater - These fall under Tariff Item 8402 19 90 as Tariff Item 8402 covers within its ambit Steam or other Vapour Generating Boilers - Such items are manufactured from either of two units of the applicant located in Ahmedabad & Bharuch - The applicant approached the AAR seeking to know the the classification & rate of tax payable in respect of Agro Waste Thermic Fluid Heater or Boiler and parts thereof considering the applicability of Sr. No. 234 of Schedule I to Notification No.1/2017-CT(R) and corresponding notifications issued under State GST law and IGST Act.

Held - The Agro Waste Thermic Fluid Heaters or Boilers are classifiable under heading 8402 19 19 of the First Schedule to the Customs Tariff Act, 1975 and attract 9% CGST + 9% SGST in terms of Sr. No. 310 of Schedule III of Notification No. 1/2017-CT(R) & the corresponding Notification issued under GGST Act, 2017 OR 18% IGST in terms of Sr. No. 310 of Schedule III of Notification No.1/2017- Integrated Tax (Rate), as applicable: AAR

- Application disposed off: AAR

2021-TIOL-101-AAR-GST

Dhingra Trucking Pvt Ltd

GST - The applicant is a private limited company which constructed several logistics facility space (warehouse) in Haryana, measuring 50000 sq feet - It is in process of constructing another warehouse with additional 350000 sq feet - The applicant approached the AAR seeking to know whether Input Tax Credit of GST in respect of inputs/ capital goods used or intended to be used for creation of covered logistics facility space (warehouse) to be rented out for storage purposes be eligible for Input Tax Credit under the provisions of section 16 and 17 of the CGST Act, 2017 - Also whether Input Tax Credit of GST in respect of inputs in form of goods and services be eligible if the goods and services are consumed and used in construction of covered logistic facility space when the said Input Tax Credit would be utilized in order to discharge and pay CGST and HGST/ IGST on rent received from tenants of the warehouse.

Held - The applicant is not eligible to input tax credit in respect of inputs/ capital goods used or intended to be used for creation of covered logistics facility space (warehouse) to be rented out for storage purposes - Since no credit of input tax in respect of input goods or services consumed and used in the construction of covered logistic facility space is available, there arises no possibility of utilization of the same: AAR

- Application disposed of: AAR