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...

Designated Authority Under Direct Tax Vivad Se Vishwas Act Cannot Reopen Assessment After Issuance Of Final Certificate: Delhi HC Reiterates

The Delhi High Court has reiterated that a designated authority under the Direct Tax Vivad Se Vishwas Act, 2020 cannot reopen an assessment after a final certificate is issued under Section 5 of the Act and all disputes with regard to the 'tax arrear' stand concluded. Section 5 stipulates a designated authority to determine the amount payable by a declarant under the Act within 15 days and grant a certificate (in Form no.5) containing particulars of the tax arrear and the amount payable...

Co-Accused Can Apply Separately For Compounding Of Offences Committed By Company Or HUF Under Income Tax Act: Delhi High Court

The Delhi High Court has held that co-accused are entitled to apply separately for compounding of offences committed by a Company or a Hindu Undivided Family under the Income Tax Act, 1961. A division bench of Acting Chief Justice Vibhu Bakhru and Justice Tushar Rao Gedela ruled that the co-accused need not await filing of application for compounding by the company or the HUF. In doing so, it relied upon the guidelines issued by the Central Board of Direct Taxes, stipulating that...

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...

S.28 Customs Act | Keeping Matter In Call Book, Taking It Up After Several Years Is Not Permissible: Delhi HC Quashes SCN

The Delhi High Court has cautioned the Customs Authorities against keeping show-cause notices pending in call-book only to take them up after several years, leaving the assessee in lurch. A division bench of Justices Prathiba M. Singh and Amit Sharma observed that in the absence of any “glaring impossibility”, such an approach of the authorities would not be permissible. In the case at hand, Petitioner challenged the delay of almost eight years in adjudication of the show-cause notice...

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 Monthly Digest: December 2024

SUPREME COURT Subsequent Purchaser Of Imported Vehicle Cannot Be Asked To Pay Customs Duty; Liability On Importer : Supreme Court Case Title: Nalin Choksey v. The Commissioner Of Customs, Kochi The Supreme Court ruled that the 'subsequent purchaser' of an imported motor car cannot be called an 'importer' to attract the liability under the Customs Act, 1962 to pay customs duty on the import of the vehicle. The bench comprising Justice BV Nagarathna and Justice N Kotiswar Singh...

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 ...

Phrase "Where It Is Possible To Do" U/S 73(4B) Of Finance Act Doesn't Make Timeline To Determine Service Tax Dues 'Suggestive': Delhi HC

The Delhi High Court has held that the usage of expression "where it is possible to do so" doesn't make the timeline stipulated under Section 73(4B) of the Finance Act, 1994 to determine service tax dues 'suggestive' in nature. A division bench of Acting Chief Justice Vibhu Bakhru and Justice Swarana Kanta Sharma observed, “...Section 73(4B) was framed and introduced in the Finance Act to ensure effective administration of taxation. While there cannot be denying that the taxation...

Tax Weekly Round-Up [23rd December - 29th December 2024]

HIGH COURTS Bombay HC ITO Acted On Complete Change Of Opinion On Same Material With Intent To Review Assessment Order Passed By Him: Bombay HC Quashes Reopening Case Title: Imperial Consultants and Securities vs. Deputy CIT Case no.: Writ Petition No. 1783 of 2022 While setting aside the reassessment proceedings, the Bombay High Court held that 'change of opinion' or 'review of already completed assessment', is not permitted to AO. While holding so, the Division Bench of...

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...

Income From Capital Gains On Certain Assets Which Are Excluded U/S 10(38) Of IT Act Must Be Included While Computing Book Profits: Delhi HC

The Delhi High Court held that proviso to Sec 10(38) cannot be read in reverse to mean that if gains are not included as book profits u/s 115JB, the same are liable to be included as income for purposes of assessment to tax under the normal provisions.Even though, the gains are required to be excluded from income chargeable to tax u/s 10(38), added the Court. As per Section 10(38) of Income tax Act, in computing the total income of a previous year of any person, any income arising from the...