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Requisite Checks for Appeals - Court FeeI-T - Members of Settlement Commission appointed amongst persons of integrity & outstanding ability & having special knowledge in/experience of direct taxes; unfortunate that SETCOM's orders are challenged without establishing them to be contrary to law or lacking in jurisdiction: HCThe 'taxing' story of Malabar Parota, calories notwithstanding!I-T - Unless a case of bias, fraud or malice is alleged, then Department cannot assail SETCOM's order: HCCentre allows export of 99,150 MT onion to Bangladesh, UAE, Bhutan, Bahrain, Mauritius & LankaI-T- Re-assessment vide Faceless Assessment u/s 144 of I-T Act, is barred by Section 31 of IBC 2016, which is binding upon all creditors of corporate debtor: HCPension Portals of all Pension Disbursing Banks to be integratedI-T- Resolution Plan under IBC, once approved, nullifies any claims pertaining to a period prior to approval of said Plan: HCβ€˜Flash Mob’ drive in London seeks support for PM ModiI-T - Once assessee has produced all supporting documents which includes profit & loss account, balance sheet and copy of ITR of creditors, then identity & creditworthiness is established: ITATTo deliver political message, Pak Sessions judge abducted and then released: KPKI-T - Assessee shall provide monthly figures to arrive at year-end average of deposits received from members, interest paid thereon & investments made in FDs from external funds, for calculating Sec 80P deduction: ITATMaersk to invest USD 600 mn in Nigerian seaport infraI-T - It shall not be necessary to issue authorization u/s 132 separately in name of each person where authorization has been issued mentioning thereon more than one person: ITATChile announces 3-day national mourning after three police officers killedI-T- Since facts have not yet been verified by AO, issue of CSR expenditure can be remanded back for reconsideration: ITATIndian Coast Guard intercepts Pakistani boat with 86 kg drugs worth Rs 600 CroreI-T - Failure to substantiate cash deposits by employer during festival will not automatically lead to additions u/s 68, in absence of any opportunity of hearing: ITATGold watch of richest Titanic pax auctioned for USD 1.46 millionGST - There is no material on record to show as to why the registration is sought to be cancelled retrospectively - Order cannot be sustained: HCIraq is latest to criminalise same-sex marriage with max 15 yrs of jail-termGST - SCN does not put the petitioner to notice that the registration is liable to be cancelled retrospectively, therefore, petitioner did not have any opportunity to object to the same - Order modified: HCUndersea quake of 6.5 magnitude strikes Java; No tsunami alert issuedGST - A taxpayer's registration can be cancelled with retrospective effect only where such consequences are intended and are warranted: HCZelensky says Russia shelling oil facilities to choke supply to EuropeGST - Rule 86A - Single Judge was correct in relegating appellant to his alternate remedy of replying to SCNs and getting matter adjudicated by adjudicating authority: HC20 army men killed in blasts at army base in CambodiaST -Simultaneous filing of refund applications by service provider/KSFE and the service recipients/petitioners for same amount - Applications ought not to be rejected on technical issue when applications filed in time: HC3 Indian women from Gujarat died in mega SUV accident in USST - Court cannot examine the issue, which is only a question of fact and evidence and not of the law - Petition dismissed: HCJNU switches to NET in place of entrance test for PhD admissionsCX - Department ought not to have waited for rebate proceedings to get finalized and ought to have issued SCN within normal period: CESTATGST - fake invoice - Patanjali served Rs 27 Cr demand noticeCus - As Section 149 prior to its amendment, does not prescribe any time limit, the Board vide Circular 36/2010 cannot impose a time limit so as to decline the request for amendment of shipping bill: CESTAT
 
ST –90% of water supplied through pipeline was to Panchayats at non-commercial rate – no profit motive – not taxable under CICS: HC

By TIOL News Service

AHMEDABAD, OCT 07, 2017: THE CESTAT 2017-TIOL-1081-CESTAT-AHM had while allowing the appeal of the assessee held –

ST - Assessee laid down pipelines in execution of a contract with M/s Gujarat Water Supply and Sewerage Board (GWSSB) - Revenue sought to classify said activity under heading "Commercial or Industrial Construction" service and imposed duty demand with penalty - What is to be examined in order to determine taxability is whether the pipeline was laid for some commercial purpose - In this case, sale/purchase of water are incidental objectives, but the primary objective is to supply water to needy citizens - Hence not taxable: CESTAT

The department is in appeal before the Gujarat High Court and presents the following questions for consideration –

i) Whether the activities of M/s GWSSB i.e. purchasing and selling water falls within the meaning of 'commerce' or a 'commercial activity' as defined under 'Commercial or Industrial Construction Service' in Sec. 65 (25b) of Chapter V of the Finance Act, 1994?

ii) Whether the activities of M/s GWSSB and its status as an 'industry' under Industrial Disputes Act, 1947 falls within the meaning of 'industry' or 'industrial activity' as defined under 'Commercial or Industrial Construction Service in Sec. 65(25b) of Chapter V of the Finance Act, 1994?

iii) Whether the usage of pipelines laid/constructed by M/s. BMS Projects Pvt. Ltd. for M/s GWSSB for transporting the traded water, falls within the scope of the expressions 'used, occupied, or engaged, primarily in, commerce of industry or work intended for commerce or industry as specified in the above mentioned definition of Commercial or Industrial Construction Service?

iv) Whether CESTAT was justified in treating the activities of M/s GWSSB as not being commercial or industrial activities or that the usage of Pipelines laid by Ms/. BMS Projects Pvt. Ltd., were not for use in commerce or industry?"

v) Whether CESTAT was justified in holding that all activities which are concerned with welfare of citizens are excluded from liability of Service tax?

The High Court observed that for a service to be included within the meaning of Commercial or Industrial construction services, different activities specified in clauses (a) to (d) thereof are such which are used or to be used primarily for commerce or industry.

It was further observed that High Court was broadly in agreement with the view of the Tribunal that -

+ GWSSB discharged an important duty and responsibility of providing drinking water to the people, industries etc.

+ The Board was constituted mainly to supply drinking water and maintenance of sewerage system.

+ The usage charges recovered by the Board from Gram Panchayats, Nagar Palikas and Nagar Panchayats are at highly subsidized rates and therefore, cannot be considered as an industry in the sense that the said word is used in the definition of taxable entry. Only a small portion of the water was provided to the industries at commercial rates.

+ The Board was sustaining on the grants released by the State Government, therefore, the pipelines were not laid to facilitate any commercial or industrial activity.

Holding that no question of law arises, the Tax Appeal filed by Revenue was dismissed.

(See 2017-TIOL-2112-HC-AHM-ST)


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