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Customs jurisdiction over EPCG condition breaches survives export-obligation discharge certificates, requiring alleged fraud and misdeclaration to be ...
Contractual tolerance requires consideration; breach recoveries, qualifying public infrastructure services and road works escape service tax liability...
ITAT held that where the payee has declared the receipts and discharged tax liability, the payer cannot be treated as an assessee in default under s.201/201(1A); the AO must first ascertain default before invoking disallowance. Applying this principle, the Tribunal found the taxpayer's contract involved a 4% supervision margin payable to the contractor for construction of an institutional facility and, given the charitable context and non-commencement of the project, afforded the assessee the benefit of doubt. The AO was directed to treat only the 4% margin as fees chargeable under s.194J. Other administrative and allied payments were sustained. Grounds were accordingly partly allowed.
ITAT held that where the payee has declared the receipts and discharged tax liability, the payer cannot be treated as an assessee in default under s.201/201(1A); the AO must first ascertain default before invoking disallowance. Applying this principle, the Tribunal found the taxpayer's contract involved a 4% supervision margin payable to the contractor for construction of an institutional facility and, given the charitable context and non-commencement of the project, afforded the assessee the benefit of doubt. The AO was directed to treat only the 4% margin as fees chargeable under s.194J. Other administrative and allied payments were sustained. Grounds were accordingly partly allowed.
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