Bogus donation receipts justified commission income assessment and defeated political-party tax exemption for inaccurate accounts and reporting failur...
Pure reimbursement without income element escapes tax withholding, while delayed withholding and unsupported provisions face deferred or renewed scrut...
Public benefit requirement defeats charitable registration where residents' association services are reciprocal, member-only facilities governed by mu...
Exempt-income expenditure disallowance is confined to investments that actually generated exempt income, while supported business expenses remain dedu...
Recovery of service tax from the appellant, where the turnover reported in the balance sheet exceeded the amount reported in the belatedly filed Form ST-3 returns. The key points are: Section 66B imposed tax on services, except those listed in the negative list u/s 66D. Clause (p) of Section 66D excluded transportation services by road for goods, except when rendered by a Goods Transport Agency (GTA) or courier agency. The revenue treated the services as taxable transportation by a GTA, but failed to provide consignment notes issued by the appellant as required by the GTA definition. Without such evidence, the turnover cannot be attributed to GTA services. The ST-3 returns, filed after inquiry initiation without late fees, lack evidentiary value and cannot ascertain tax liability. Being defective, the returns and facts therein are non est for investigation and adjudication. The CENVAT credit demand, rooted in the invalid service tax demand, is also unsustainable. The extended period of limitation was incorrectly invoked as there was no suppression of facts. The entire demand, based on the extended period, is invalid and time-barred. The pre-show cause notice consultation requirement was not met, but as the show cause notice itself failed on various grounds, this aspect became infructuous. Ultimately.
Recovery of service tax from the appellant, where the turnover reported in the balance sheet exceeded the amount reported in the belatedly filed Form ST-3 returns. The key points are: Section 66B imposed tax on services, except those listed in the negative list u/s 66D. Clause (p) of Section 66D excluded transportation services by road for goods, except when rendered by a Goods Transport Agency (GTA) or courier agency. The revenue treated the services as taxable transportation by a GTA, but failed to provide consignment notes issued by the appellant as required by the GTA definition. Without such evidence, the turnover cannot be attributed to GTA services. The ST-3 returns, filed after inquiry initiation without late fees, lack evidentiary value and cannot ascertain tax liability. Being defective, the returns and facts therein are non est for investigation and adjudication. The CENVAT credit demand, rooted in the invalid service tax demand, is also unsustainable. The extended period of limitation was incorrectly invoked as there was no suppression of facts. The entire demand, based on the extended period, is invalid and time-barred. The pre-show cause notice consultation requirement was not met, but as the show cause notice itself failed on various grounds, this aspect became infructuous. Ultimately.
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