Madras High Court Quashes The Criminal Proceedings Against Guarantor Of Assessee, For Assessee’s Failure To Pay Tax; States It's Only Contractual Liability And Not Criminal

The Madras High Court has quashed criminal proceedings against the guarantor of the assessee for failing to pay the tax dues of the latter to the Commercial Tax Department. The Commercial Tax Officer (CTO) filed a private complaint before the Judicial Magistrate against the assessee as well as the petitioner, who stood as a guarantor with respect to the tax arrears of the business done by the assessee. The Court remarked that though the petitioner had executed an undertaking or a...

KVAT Act | Dealer Claiming Input Tax Credit Must Prove Transaction Beyond Reasonable Doubt : Supreme Court

The Supreme Court has held that under Section 70 of the Karnataka Value Added Tax Act, 2003, a dealer claiming Input Tax Credit on purchase ought to prove and establish actual physical movement of goods and genuineness of transaction. It noted that in order to establish the same, the dealer should furnish the name and address of the selling dealer, details of the vehicle which has delivered the goods, payment of freight charges, acknowledgement of taking delivery of goods, tax invoices and...

Dealers, Applying For Government Tenders To Verify GSTIN Status Through Peridot App: Jammu & Kashmir Govt.

The Finance Department of Jammu and Kashmir has issued a circular directing the dealers or contractors applying for government tenders to verify their GSTIN status and authenticate their GST return through the Peridot App.The government stated that dealers and contractors whose GSTINs have been canceled or deactivated are applying for government tenders with the submission of fake or forged GST returns. This occurs because tender-inviting departments do not cross-check tenderer documents with...

GSTN Issues Advisory On Taxpayers Facing Issue In Filing GSTR-3B

The Goods and Service Tax Networks (GSTN) has issued an advisory on taxpayers facing issues in filing GSTR-3B.The filing of TRAN forms was made available for aggrieved taxpayers between 01.10.2022 and 30.11.2022, in accordance with the Supreme Court's directive.It has been noted that a small number of taxpayers have started the filing process for TRAN forms on the portal but have not finished it within the allotted time. The only step that required an e-sign was filing after submitting the Tran...

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...