Revisional power in block assessment upheld, undisclosed search income sustained, freight suppression addition restored, accrued lorry hire liability ...
Reassessment and fee-for-technical-services classification: reopening upheld, but certain reimbursements and mobilization charges fell outside treaty ...
Section 80P deduction for co-operative societies remains available despite nominal members and housing society status, with limited interest income tr...
Recoveries from transporters for transit loss, damage, shortage, contamination, theft, delay and negligence were treated as liquidated damages arising from breach or non-performance of the transport contracts. Because the contracts themselves allocated liability for losses and provided for deduction and recovery, the amounts were compensatory rather than payment for any independent service. Applying Circular No. 178/10/2022-GST, the Authority held that where payment merely compensates injury or loss and there is no agreement to tolerate an act, refrain from an act, or do anything in return, it is not consideration for a supply. The recoveries were therefore outside GST as non-taxable and not a supply of services under para 5(e) of Schedule II.
Recoveries from transporters for transit loss, damage, shortage, contamination, theft, delay and negligence were treated as liquidated damages arising from breach or non-performance of the transport contracts. Because the contracts themselves allocated liability for losses and provided for deduction and recovery, the amounts were compensatory rather than payment for any independent service. Applying Circular No. 178/10/2022-GST, the Authority held that where payment merely compensates injury or loss and there is no agreement to tolerate an act, refrain from an act, or do anything in return, it is not consideration for a supply. The recoveries were therefore outside GST as non-taxable and not a supply of services under para 5(e) of Schedule II.
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