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.
Jurisdiction of revenue intelligence officers affirmed: legislative validation sustains past customs show cause notices as constitutionally permissible. The Court concluded the defect identified in Canon India is unfounded when Notification No. 44/2011 and amended Section 17 are read together, ... Summary
Jurisdiction of revenue intelligence officers affirmed: legislative validation sustains past customs show cause notices as constitutionally permissible.
The Court concluded the defect identified in Canon India is unfounded when Notification No. 44/2011 and amended Section 17 are read together, distinguishing assessment functions under Section 17 from recovery under Section 28, and held that Section 97 of the Finance Act, 2022 validly and purposively validates past show cause notices issued by DRI and similarly situated officers, with retrospective application limited to the object of validation and passing Article 14 tests of reasonable classification and proportionality.
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