Time Relevance of Expense: commission deductible when incurred; restructuring transfers, lease obligations upheld; unenforceable sale agreement bars l...
Abuse of dominant position allegations against an exchange found not prima facie; regulator reliance on sectoral expertise upheld and no investigation...
CESTAT held that the expression "transmission or distribution of electricity" has wide amplitude and covers services having a direct, proximate and integral nexus with that activity. On that basis, works contract services for erection, commissioning, installation and allied works, and manpower services used for movement, safeguarding and operational support, were treated as indispensable to electricity transmission and distribution and were not taxable under reverse charge. By contrast, rent-a-cab service for official use lacked the required direct nexus and was not exempt; however, the demand on that service was barred by limitation because mere non-payment or non-registration, without fraud, suppression or wilful misstatement, could not justify the extended period.
CESTAT held that the expression "transmission or distribution of electricity" has wide amplitude and covers services having a direct, proximate and integral nexus with that activity. On that basis, works contract services for erection, commissioning, installation and allied works, and manpower services used for movement, safeguarding and operational support, were treated as indispensable to electricity transmission and distribution and were not taxable under reverse charge. By contrast, rent-a-cab service for official use lacked the required direct nexus and was not exempt; however, the demand on that service was barred by limitation because mere non-payment or non-registration, without fraud, suppression or wilful misstatement, could not justify the extended period.
Note: It is a system-generated summary and is for quick reference only.
TaxTMI 
TaxTMI 
of 4811 
Join Channel 
