Commercial vehicle depreciation, scientifically determined warranty provisions and exempt-income disallowances were resolved in favour of the taxpayer...
Inherited property sale proceeds require capital-gains treatment where ownership is supported by evidence, not suspicion or unverified signature doubt...
Cross-examination of retracted statements is essential where foundational evidence supports a benami allegation and documented funding explanations re...
Capital-goods exemption covers plant-modernisation accessories, while the import restriction applies only to earlier capital-goods components and spar...
Constitutional judicial review permits challenges to ECIRs and connected money-laundering proceedings where coercive action affects fundamental intere...
The CESTAT allowed the appeal of M/s X against the impugned order, setting aside the service tax demand of Rs. 2,22,51,053/- on amounts wrongly treated as taxable advances, holding them to be refundable loans not linked to any taxable service. The Tribunal further held that the service tax demand of Rs. 16,44,878/- under RCM on imported services was unsustainable, being a revenue-neutral situation, and also barred by limitation as the extended period could not be invoked through a third SCN on the same issue. Consequently, interest and penalties under Sections 77 and 78 of the Finance Act, 1994 were quashed. However, late fee of Rs. 21,700/- for delayed ST-3 returns was upheld, subject to adjustment of Rs. 7,900/- already paid.
The CESTAT allowed the appeal of M/s X against the impugned order, setting aside the service tax demand of Rs. 2,22,51,053/- on amounts wrongly treated as taxable advances, holding them to be refundable loans not linked to any taxable service. The Tribunal further held that the service tax demand of Rs. 16,44,878/- under RCM on imported services was unsustainable, being a revenue-neutral situation, and also barred by limitation as the extended period could not be invoked through a third SCN on the same issue. Consequently, interest and penalties under Sections 77 and 78 of the Finance Act, 1994 were quashed. However, late fee of Rs. 21,700/- for delayed ST-3 returns was upheld, subject to adjustment of Rs. 7,900/- already paid.
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