Binding effect of government circulars: administrative clarifications do not bind courts or quasi judicial authorities and cannot create estoppel. Government circulars and clarifications represent administrative understanding of statutory provisions and do not bind courts or quasi judicial authorities; they cannot create an estoppel against the statute and do not prevent recovery of tax lawfully leviable despite prior communications to taxpayers.
Service elements in works contracts taxable when classifiable under construction or erection services, not limited to a new label. Service elements within a composite works contract that correspond in nature to Commercial or Industrial Construction Service, Construction of Complex Service or Erection, Commissioning or Installation Service are taxable under those service heads; such service elements need not be classified exclusively under the subsequently inserted sub clause, and levy under the existing defined service categories is proper based on the substantive character of the activities.
Resident firm classification for advance ruling expands eligible applicants under service tax advance ruling framework. Notification declares resident firm as a class of persons eligible for advance rulings under section 96A of the Finance Act, 1994 for service tax. It defines "firm" to include partnerships under the Indian Partnership Act, limited liability partnerships (including those without a company partner), sole proprietorships, and One Person Companies, and links the term "resident" to the meaning in the Income-tax Act as applicable to a resident firm.
IGST on ocean freight invalid where IGST already paid on import value, preventing double taxation under valuation rules. The court held that where IGST has been paid on the value of imported goods inclusive of cost, freight and insurance under Section 5(1) of the IGST Act ... Summary
IGST on ocean freight invalid where IGST already paid on import value, preventing double taxation under valuation rules.
The court held that where IGST has been paid on the value of imported goods inclusive of cost, freight and insurance under Section 5(1) of the IGST Act read with the Customs Act, the CIF/FOB distinction is immaterial and a notification provision seeking separate IGST on ocean freight for FOB imports cannot be sustained, reinforcing fiscal neutrality and preventing double taxation.
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