Pre-amendment reassessment limitation bars late notices under the preserved regime, invalidating consequential reassessment for affected earlier asses...
Cash-sales explanations for bank deposits require documentary reconciliation; reassessment notice survived where effective response time was available...
Functional comparability in transfer pricing prevents ad hoc arm's length adjustments where functions, assets, risks and reliable comparables are unes...
CESTAT held that remittances made by the appellant to overseas subsidiaries/licensees during April 2014-June 2017 did not constitute consideration for any "service" under s.65B(44) and were merely inter-company commercial settlements; no import of service arose and, applying POPS Rules, any performance-based activities occurred outside the taxable territory. The demand of service tax under RCM of Rs.36,77,40,000/- with interest and penalties was set aside on merits; extended limitation and penalties under ss.77-78 were also held unsustainable due to absence of suppression/intent and revenue-neutrality. A separate demand of Rs.1,16,11,766/- for Dec 2016 was remanded for verification of claimed tax payment/clerical omission in returns. Appeal partly allowed and partly remanded.
CESTAT held that remittances made by the appellant to overseas subsidiaries/licensees during April 2014-June 2017 did not constitute consideration for any "service" under s.65B(44) and were merely inter-company commercial settlements; no import of service arose and, applying POPS Rules, any performance-based activities occurred outside the taxable territory. The demand of service tax under RCM of Rs.36,77,40,000/- with interest and penalties was set aside on merits; extended limitation and penalties under ss.77-78 were also held unsustainable due to absence of suppression/intent and revenue-neutrality. A separate demand of Rs.1,16,11,766/- for Dec 2016 was remanded for verification of claimed tax payment/clerical omission in returns. Appeal partly allowed and partly remanded.
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