natural gas

Oil Min wants courts to decide on gas-tax holiday

Stung by rejection of its demand for restoration of tax breaks on production of natural gas, the Oil Ministry has asked the Finance Ministry to let courts decide if 7-year tax holiday should apply only to oil and not on gas produced from the same well.
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Assessee entitled to Cenvat credit on inputs utilized in the generation of electricity to the extent to which they are using the produced electricity within their factory

SUMMARY OF CASE LAW The definition of “input” brings within its fold, inputs used for generation of electricity or steam, provided such electricity or steam is used within the factory of production for manufacture of final products or for any other purpose.
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Poor drafting of Cenvat credit Rules leading to litigations and conflicting decisions by various benches: SC

The Supreme Court has said the CENVAT Credit Rules were not properly drafted causing huge rise in litigations and conflicting decisions by various benches of Custom Excise & Service Tax Appellate Tribunal (CESTAT). The apex court said that repeated amendments in the CENVAT Credit Rules has given a further fillip in rising number of litigations in the country.
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Notional Liability On Account Of Change In Exchange Rates Could Not Be Allowed On Notional Basis

CIT vs Oil and Natural Gas Corpn. Ltd.- Business loss: Business expenditure - Notional Liability: Loss due to fluctuations in foreign exchange rates The assessee had borrowed funds in foreign exchange for the purpose of capital outlay. No liability for repayment of loan was quantified nor any payment was made. The notional liability on account of change in exchange rates could not be allowed on notional basis, nor this could be taken into account for determining actual ..
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