Information Regarding GST Returns Of Company Cannot Be Disclosed Under RTI Act: Bombay High Court

The Bombay High Court on Tuesday (October 14) held that a company's Goods and Services Tax (GST) returns filing cannot be disclosed under the Right To Information (RTI) Act. Sitting at Aurangabad bench, single-judge Justice Arun Pednekar noted that section 158(1) of the GST Act prohibits disclosure of information of GST returns to third parties and that section 8(1)(j) of the RTI Act too exempts certain information from being made public unless the information officer is satisfied that the...

Officer Appointed Under State GST Act Is Authorised To Discharge Duties As Proper Officer For IGST & CGST: Allahabad High Court

The Allahabad High Court has held that an officer appointed under the State Goods & Service Tax Act will be Proper Officer under the Integrated Goods & Service Tax Act as well as the Central Goods & Service Tax Act. Perusing Section 4 of the IGST Act read with rule 20 of the CGST Act, Justice Piyush Agrawal held that “The provision provides that the Officer appointed under the State Goods & Service Tax is authorized to discharge their duties as Proper Officer for the...

Patna High Court Upholds ₹25 Lakh Service Tax Demand Against Travel Agency Which Failed To Disclose Transactions & Claimed Records Were Lost In Fire

The Patna High Court has recently upheld a service tax demand of ₹25.25 lakh against a travel agency, dismissing its defence that crucial business records had been lost in a fire. The Division Bench comprising Justice Rajeev Ranjan Prasad and Justice Ashok Kumar Pandey observed, “this petitioner having surrendered his service tax registration had not disclosed the transactions in ST-3. The Taxing Authority were not aware of this, they were looking for cooperation on the part of the petitioner,...

Lawyers Running Individual Practice Exempt From Levy Of GST, Service Tax: Orissa High Court

The Orissa High Court has reminded the GST and Service tax authorities not to harass practicing lawyers by issuing them notices for levy of GST or service tax.A Chief Justice Harish Tandon and Justice BP Routray thus quashed the notices issued to a Bhubaneswar based lawyer demanding service tax of Rs.2,14,600/- and penalty of Rs.2,34,600/- plus interest.It observed, “in view of the admitted fact that the Petitioner is a practicing lawyer…the Department the Petitioner is exempted from levy of...

Finance Act, 1994 | Mere Non-Registration Under Service Tax Isn't Fraud Or Suppression To Justify 5 Year Limitation: Patna High Court

The Patna High Court has recently quashed a service tax demand raised against a government contractor, ruling that merely not registering for service tax could not be equated with fraud or suppression of facts warranting the application of the five-year extended limitation period under the Finance Act, 1994.The Division Bench comprising Justice Rajeev Ranjan Prasad and Justice Sourendra Pandey, observed, “the plea of the respondent that the petitioner had not taken registration of the service...

Short Tax | Timeline For Issuing Show Cause Notice U/S 73(2) Is Mandatory, Not Discretionary: Andhra Pradesh High Court

The Andhra Pradesh High Court has held that the time permit set out under 73(2) of the AP GST Act for issuance of show cause notice in relation to alleged short payment of tax, etc. is mandatory in nature.A division bench of Justices R Raghunandan Rao and Harinath N. added that any violation of that time period cannot be condoned and would render the show cause notice otiose.It observed, “The GST Act, has put in place certain protections for tax payers. One of the primary protections is that...

Service Tax Liability Cannot Be Fastened On Implementation Of Govt Projects: Calcutta High Court

The Calcutta High Court has held that construction of canals/ pipelines/ conduits to support irrigation, water supply or for sewerage disposal, when provided to the Government, cannot be exigible to service tax. A division bench of Chief Justice TS Sivagnanam and Justice Hiranmay Bhattacharyya relied on two Circulars issued by the Central Board of Indirect Taxes and Customs to observe, “Even in case of works contract, if the nature of the activities is such that they are excluded from...

Charitable Society Looking After Socio-Economic And Welfare Matters Of Ex-Servicemen, Their Families Can Levy Service Tax: Kerala HC

The Kerala High Court stated that services by charitable society who look after socio-economic and welfare matters of ex-serviceman and their families is liable to service tax. The Division Bench of Justices A.K. Jayasankaran Nambiar and Easwaran S. observed that “for an association like the assessee, the embarking on a transaction that is designed to earn income for its members, would have to be seen as a commercial venture and the assessee who embarks on such a venture, a ...

Service Tax Not Prima Facie Leviable On Amounts Claimed As Performance Linked Incentives/Commission: Delhi High Court

The Delhi High Court has prima facie observed that service tax is not leviable on amounts claimed by an Assessee as commission or performance linked benefit. A division bench of Justices Yashwant Varma and Dharmesh Sharma cited the decision of a Larger Bench of the CESTAT in Kafila Hospitality & Travels Pvt. Ltd. vs. Commr. Of S.T., Delhi (2023). In that case, the Tribunal dealt with the issue of whether the incentives paid by airlines to travel agents for achieving targets was ...

Laying Down Optical Fibre Cables To Enhance Communication Network For Defence Forces Is Exempt From Service Tax: Delhi High Court

The Delhi High Court recently declared that Telecommunications Consultants India Limited, a central public sector undertaking which secured a Project floated by BSNL for laying down Optical Fibre Cable Network, is exempt from service tax since the service is in the nature of setting up a civil infrastructure so as to benefit the defence forces in having a better communication network. A division bench of Justices Yashwant Varma and Dharmesh Sharma observed, “The said services are...

[S.74 GST Act] Adjudicating Authority Must Record Prima Facie Satisfaction Regarding Assessee Wrongfully Obtaining Input Tax Credit: Allahabad HC

The Allahabad High Court has held that for initiating proceedings under Section 74 of the Goods and Service Tax Act, 2017, it is necessary for the adjudicating authority to record prima facie satisfaction regarding the assessee having wrongfully availed input tax credit (ITC) by fraud, willful misstatement or suppression of facts. The Court held that once the proceedings under Section 73 have been closed regarding wrongful availment of ITC, proceedings for the same cannot be initiated...

Arbitral Tribunal Acted With Patent Illegality, Against Indian Law In Awarding Reimbursement Of Service Tax Along With Interest: Calcutta High Court

The Calcutta High Court Bench of Justice Sabyasachi Bhattacharyya observed that award passed by Arbitral Tribunal was tainted with patent illegality and contravened the fundamental policy of Indian law. The award was challenged under section 34 of the Arbitration and Conciliation Act (act). The court set aside the award in which South Eastern Railway (railway) was directed to reimburse the respondent towards service tax and interest. Brief Facts The dispute emerged from the contract...