News
Zinc sulphate (agriculture grade) is a fertilizer – Sulphuric acid for manufacture of said item is eligible for exemption
18 December 2024
The Larger Bench of the CESTAT has on 12 December 2024 held that an assessee is eligible for benefit under Sl. No. 32 of Notification No. 4/2006-C.E., dated 1 March 2006 on procurement of sulphuric acid for manufacture of zinc sulphate (agriculture grade). Sl. No. 32 of the notification provided for nil rate of central excise duty on sulphuric acid used in the manufacture of fertilizers.
Patents – Filing of Divisional Application on the day of grant of patent in original application is not fatal
11 December 2024
The Madras High Court has quashed the Order passed by the Deputy Controller of Patents and Designs refusing to grant patent in respect of a Divisional Application on the ground that the same was filed after the grant of patent in respect of the original patent application filed by the applicant-appellant.
Cenvat credit available on mobile towers and pre-fabricated buildings installed for providing output services
22 November 2024
The Supreme Court has on 20 November 2024 held that the telecom companies are entitled to avail Cenvat credit of the central excise duty paid on towers and shelters/Pre-fabricated buildings (PFBs) procured by them and installed/erected for providing output services of telecommunication services.
Extension of time limits provided by TOLA applies to limitation period provided for reopening of assessment and for grant of sanction
23 October 2024
The provisions relating to reopening of assessments, as they stood prior to the Finance Act, 2021, were contained in Sections 147 to 151 of the Act (‘Old Law’). Under the Old Law, if the AO had reasons to believe that an income chargeable to tax has escaped assessment, then the AO could reopen the assessment by issuing a notice u/s. 148 of the Act. Such notice could have been issued within 4 / 6 years from end of relevant assessment year.
GST – ITC is available on construction of ‘plant’ for letting out
10 October 2024
The Supreme Court has held that if the building in which the premises are situated qualifies for a ‘plant’, Input Tax Credit (ITC) can be allowed on goods and services used in setting up the immovable property, which is a plant.
Compressors used in car air-conditioners are classifiable under TI 8414 80 11 – SC decision in Westinghouse distinguished
03 October 2024
The CESTAT Bench at Chennai has held that air compressors for use in car air-conditioners are classifiable under Tariff Item 8414 80 11 of the Customs Tariff Act, 1975 wherein Heading 8414 covers ‘Air or vacuum pumps, air or other gas compressors and fans; ventilating or recycling hoods incorporating a fan, whether or not fitted with filters’. The assessee was represented by Lakshmikumaran & Sridharan Attorneys here.
GST Council’s recommendation is mandatory if Central/State Act stipulates an act to be done on such recommendations
26 September 2024
The Gauhati High Court has held that the recommendations to be made by the GST Council, if required as per the provisions of the Central Act or the State Act, has to be construed to be a sine qua non for exercise of power by the Union or the State Government.
Free electricity to States is prima facie not ‘consideration’ – HP HC grants interim relief on GST demand, observing that service tax demand dropped
25 September 2024
The Himachal Pradesh High Court has granted interim relief to the assessee in a case where the Revenue department had alleged that the supply of free electricity/power @12% to the States was nothing but ‘consideration’ towards licensing services rendered by the State governments.
Competition law in India – Deal Value Threshold and other changes notified
12 September 2024
By way of five separate notifications dated 9 September 2024, the Ministry of Corporate Affairs (‘MCA’) has notified the following provisions, rules and regulations under the Competition Act, 2002 (‘Act’).
54th Meeting of GST Council – Highlights of important recommendations
10 September 2024
The GST Council has yesterday (9th of September) in its 54th Meeting recommended a number of changes in rates of GST for various goods and services, while also recommending various measures for facilitation of trade and for streamlining compliances in GST. A few important measures and changes are highlighted below. It may be noted that these changes will come into force only after a suitable notification(s) and circular(s) are issued by the CBIC for the purpose.