VAT Department Not To Initiate Coercive Measures Against PSU Pawan Hans: Delhi High Court

The Delhi High Court has granted a stay to helicopter charterer PSU Pawan Hans Ltd. against a VAT demand of Rs. 176 crores.The division bench of Justice Vibhu Bakhru and Justice Amit Mahajan has observed that the issue needs consideration and directed the VAT department not to initiate coercive measures for recovery of the VAT demand confirmed by the Delhi VAT Tribunal in the interim.The appellant/assessee stated that it is in the business of chartering helicopters and has entered into...

GSTN Issued Advisory On Facility Of ‘Initiating Drop Proceedings’ Of Suspended GSTINs Due To Non-filing Of Returns

The Goods and Service Tax Network (GSTN) has issued an advisory on the facility of ‘Initiating Drop Proceedings’ of Suspended GSTINs due to Non-filing of Returns.On the GST Portal, a feature known as "Automated Drop Proceedings" has recently been introduced for GSTINs that have been suspended because returns have not been filed.For taxpayers who have submitted their pending returns, such as their six-month or two quarterly returns, the functionality is available.The system will automatically end...

GSTN Issues Advisory On “Initiating Drop Proceeding” By Taxpayers

The Goods and Service Tax Networks (GSTN) has issued an advisory on “Initiating Drop Proceeding” by taxpayers.On the GST Portal, a feature known as Automated Drop Proceedings of GSTINs suspended due to non-filing of returns has recently been introduced. The taxpayers who have submitted their pending 6 monthly or 2 quarterly returns are eligible for this functionality.The GSTN has instructed the taxpayers to click "Initiate Drop Proceeding" to end the suspension once the required returns have...

State Of Tripura Has No Jurisdiction To Levy VAT For Supply Of LPG Cylinder Under Work Orders Executed Outside The State: Tripura High Court

The Tripura High Court has ruled that the State of Tripura has no jurisdiction to levy VAT under the Tripura Value Added Tax Act, 2004 (TVAT), on transport or supply of LPG cylinders to Tripura under the work orders executed outside the State. The bench of Acting Chief Justice T. Amarnath Goud and Justice Arindam Lodh held that that the situs of the sale would be the place where the contracts were executed. The Court further held that transport of LPG cylinders by the assessee under the...

VAT Act Do Not Provide For The Registration Of FIR: Punjab And Haryana High Court Quashes FIR For Alleged Tax Evasion

The Punjab and Haryana High Court has held that the provisions of the VAT Act do not provide for the registration of the FIR, and since the VAT Act is a code in itself, the provisions of the IPC also cannot be invoked. Therefore, an FIR could not have been registered against a person who has allegedly evaded tax.The single bench of Justice Jasjit Singh Bedi has observed that there is no provision for the registration of an FIR in matters such as those of alleged tax evasion. The provisions of...

RBI Includes GSTN As A Financial Information Provider Under Account Aggregator Framework

The Reserve Bank of India has included the Goods and Service Tax Network (GSTN) as a financial information provider under the account aggregator framework.It was decided to include the Goods and Services Tax Network (GSTN) as a Financial Information Provider (FIP) under the Account Aggregator (AA) framework in order to facilitate cash flow-based lending to the Ministry of Micro, Small, and Medium Enterprises (MSMEs).GST returns filed in GSTR-1 and GSTR-3B will be treated as financial data.GSTR-1...

GSTN Issues Advisory on Filing TRAN forms for Taxpayers from Daman and Diu And Ladakh

The Goods and Service Tax Networks (GSTN) has issued an advisory on filing TRAN forms for taxpayers from Daman, Diu, and Ladakh.Due to the reorganisation of the state of Jammu & Kashmir and the merger of the Union territories of Dadra and Nagar Haveli and Daman and Diu, the taxpayers of Ladakh and the earlier "Daman and Diu" region have been allotted new GSTINs. There was therefore doubt as to how to file the TRAN-1 and whether it would be linked with the old TRAN-1 or not.The GSTN has...

VAT Defaulter Not Liable To Pay Collection Charges If Opts Amnesty Scheme: Kerala High Court

The Kerala High Court has held that collection charges are not payable if a VAT defaulter opts for the Kerala Amnesty Scheme, 2017.The single bench of Gopinath P. has noted that the petitioner had settled the liabilities in terms of the provisions contained in the Amnesty Scheme of 2017, which was introduced by the provisions contained in the Kerala Finance Act 2017.The court stated that as per the provisions of Section 31A(2) of the Kerala Finance Act, 2017, the assessee/defaulter will not be...

CBIC Issues Guidelines For Filing/Revising TRAN-1/TRAN-2

The Central Board of Indirect Taxes and Customs (CBIC) has issued the guidelines for filing/revising TRAN-1/TRAN-2.The CBIC has issued the guidelines in terms of the order passed by the Supreme Court in the case of Union of India vs. Filco Trade Centre Pvt. Ltd. The Supreme Court directed the Goods and Service Tax Network (GSTN) to open a common portal for filing concerned forms for availing Transitional Credit through TRAN-1 and TRAN-2 for two months from 01.09.2022 to 31.10.2022. The...

No Legislative Competence To Amend KVAT Act After Introduction Of GST Act: Kerala High Court

The Kerala High Court has held that legislative competence to amend the Kerala Value Added Tax (KVAT) Act after the introduction of the GST Act is impermissible.The division bench of S.V.Bhatti and Justice Basant Balaji has observed that the amendment made by the Finance Act of 2018 to the provisions of the erstwhile KVAT Act to enable the department to initiate assessment proceedings in respect of assessments pending as of March 31, 2018 was illegal because the KVAT Act has already been...

10% VAT Payable On Insulated Glass: Allahabad High Court

The Allahabad High Court has held that 10% Value Added Tax (VAT) is payable on insulated glass.The single judge bench of Justice Saumitra Dayal Singh has observed that insulated glass is nothing but double glazed dual sheet (DGDS). The department has filed the revision against the order passed by the Trade Tax Tribunal. In that order, the Tribunal has allowed the assessee's appeal and held that insulated glass manufactured and sold by the assessee falls within the general description of...

Dept. To Follow Procedure Set Out In Circular On The Issues Of Mismatch: Madras High Court Quashes VAT Assessment

The Madras High Court bench of Justice Anitha Sumnath has quashed the VAT assessment and directed the department to follow the procedure set out in the circular regarding the issue of mismatch. The petitioner has challenged the assessment order passed under the provisions of the Tamil Nadu Value Added Tax Act, 2006 for the period 2013–14. The substantial addition to turnover was on the ground of a mismatch of particulars between the details contained in the returns filed by the...