Commissioner Cannot Use Its Power U/S 107(2) CGST Act To Review Order Passed By Appellate Authority: Delhi High Court

The Delhi High Court has made it clear that a Commissioner under the Central Goods and Services Tax Act 2017 cannot, in purported exercise of its powers under Section 107(2), sit in appeal over an order passed by the Appellate Authority. Section 107(2) empowers the Commissioner to call for and examine the record of any proceedings in which an adjudicating authority has passed any order, for the purpose of satisfying himself of its legality. A division bench of Justices Yashwant Varma...

When Investigation Is Substantially Completed By Improper Officer, SCN Issued U/S 74 Of CGST Act Is Liable To Be Set Aside: Karnataka HC

The Karnataka High Court held that when investigation is substantially completed by improper officer, show cause notice issued by proper officer u/s 74 of CGST Act is liable to be set aside. The Bench of Justice M.I. Arun observed that “…..substantial part of the investigation including search and seizure of the materials has been done by respondent no.2 who is not the proper Officer and under the circumstances, the said investigation, inspection, search and seizure in respect of the...

Delay In Filing Certified Copy Of Impugned Order Doesn't Render Appeal Filed Electronically U/S 107 CGST Act Time-Barred: Delhi HC

The Delhi High Court has held that delay in filing certified copy of impugned order in an appeal preferred by Assessee under Section 107 of the Central Goods and Services Tax Act, 2017 would not render the appeal time-barred, if it was filed online within prescribed time. A division bench of Justices Prathiba M. Singh and Amit Sharma reasoned, “the condition to physically file the certified copy of the impugned decision/order is not mandatory…where the certified copy was submitted...

Tax Law : Important Judgments By Supreme Court In 2024

As the year 2024 nears its end, LiveLaw brings to you a summary of important Supreme Court judgments of the year rendered in connection with Tax Law. The same are as follows:1. Hiring Of Motor Vehicle Or Cranes Is Not 'Sale Of Goods' If Control Over Equipment Is Retained By Contractor, VAT Can't Be Levied: Supreme CourtCase: M/s. K.P. Mozika v Oil and Natural Gas Corporation Ltd. & Ors. [2024 LiveLaw (SC) 26]In this case, a bench of Justice Abhay S Oka and Justice Rajesh Bindal held that...

Application For Revocation Of Cancellation Of GST Registration Rejected Just Because Taxpayer Did Not Respond To SCN: Delhi HC Revives Application

The Delhi High Court held that the application for revocation of cancellation of GST registration could not have been dismissed, when apart from using the phrase “any supporting documents” and “others”, no further reason was assigned as to why the said application was dismissed.The High Court held so, while observing that the solitary reason which has weighed upon the respondent to reject that application was a failure on the part of petitioner to respond to a SCN. While rendering the order of...

GST To Remain @5% On Popcorn Sold In Theatres, Clarifies Govt

The Finance Ministry in its 55th Meeting of the GST Council, clarified that ready to eat popcorn which is mixed with salt and spices are classifiable under HS 2106 90 99 and attracts 5% GST if supplied as other than pre-packaged and labelled and 12% GST if supplied as pre-packaged and labelled.However, when popcorn is mixed with sugar thereby changing its character to sugar confectionary (e.g. caramel popcorn), it would be classifiable under HS 1704 90 90 and attract 18% GST. By this...

GST Department's Effective Adjudication Of Matter Cannot Be Scuttled By Seeking Writ Remedy: Calcutta High Court

While reiterating that it shall not interfere in matters requiring fact-finding and adjudication, which fall squarely within the statutory domain, the Calcutta High Court advised the manufacturer/ supplier to exhaust the statutory remedies provided under the CGST Act, 2017 including submitting a detailed response to the SCN.“The statutory framework under the CGST Act provides adequate mechanisms for addressing the petitioner's concerns, including responding to the SCN, participating in...

Rapido Liable To Pay GST On Services Provided By Independent Four-Wheeler Cab Service Provider: Karnataka AAR

The Karnataka Authority of Advance Ruling has held that the Rapido is liable to pay GST on services provided by independent four-wheeler taxi service providers.The bench of Dr. M.P. Ravi Prasad and Kiran Reddy T has observed that Rapido satisfies the definition of an “e-commerce operator” and the nature of supply as conceptualized in Section 9(5) of CGST Act 2017 read with notification No. 17/2017 dated 28.06.2017.The applicant stated that it is a registered private limited company, also...

ITAT & AAR Weekly Round-Up: 21 To 27 July 2024

ITATITAT Allows Depreciation Claim On Non Compete Fee, Deletes PenaltyCase Title: Metro Tyres Limited Versus ACITThe Delhi Bench of Income Tax Appellate Tribunal (ITAT) has allowed the claim of depreciation on non-competing fees.Long Term Capital Gain On Sale Of Shares By Mauritius Company Is Not Liable To Be Taxed In India: ITATCase Title: M/s. Superb Mind Holdings Ltd. Versus Assistant Commissioner of Income TaxThe Delhi Bench of Income Tax Appellate Tribunal (ITAT) has held that long-term...

GST Payable On Advance Received Against Supply Portion Of Work Contract: Gujarat AAR

The Gujarat Authority of Advance Ruling (AAR) has held that the GST is payable in advance received against the supply portion in respect of the work contract.The bench of Amit Kumar Mishra and Milind Kavatkar has observed that the turnkey contract entered into by the applicant has been held to be a work contract.The applicant is in the engineering, procurement, and construction (EPC) contract business with various distribution companies (DISCOMS).The applicant stated that they have a turnkey...

Deduction Of Nominal Amount From Employee's Salary For Availing Food Facility Is Not 'Supply': Gujarat AAR

The Gujarat Authority of Advance Ruling (AAR) has ruled that deduction of nominal amount from employee's salary for availing food facility is not 'supply' under the provisions of Section 7 of the CGST Act, 2017.The bench of Amit Kumar Mishra and Milind Kavatkar has observed that the exceptions are Schedule-I, which includes activities made or agreed to be made without consideration, and Schedule-III, which includes activities that shall not be treated as a supply of goods or services. The...

ITC Available On Capital Goods Used For Transmission Of Electricity From Power Station Of DISCOM To Factory Premises: Gujarat AAR

The Gujarat Authority of Advance Ruling (AAR) has ruled that the Input Tax Credit (ITC) available on capital goods used for transmission of electricity from power stations of Distribution Companies (DISCOM) to factory premises.The bench of Amit Kumar Mishra and Milind Kavatkar has observed that there is no provision under the CGST Act, 2017 which bars availment of ITC by the applicant if subsequently the capitalised goods are handed over to Gujarat Energy 'Transmission Corporation Ltd....