Show Cause Notice U/s 37C Of Central Excise Act Issued At Wrong Address Cannot Be Proceeded: Gauhati High Court

The Gauhati High Court recently held that the recourse to Sub-Clauses (b) & (c) of Clause 37C (1) of the Central Excise Act, is not permitted if the show cause notice was not sent at the proper address of the registered taxpayer.The High Court also clarified that Sub-Clause (b) and Sub-Clause (c) of Section 37(C)(1) of the Act of 1944 can only be pressed into service, if the service of notice under Sub-Clause (a) cannot be affected.As per Section 37C of the Central Excise Act, 1944, any...

Enterprise Contracting With Assignee Of Govt Recognised Concessionaire For Developing “Infrastructural Facility” Can Claim Deduction U/S 80IA(4) Of Income Tax Act: Calcutta HC

The Calcutta High Court has held that an enterprise contracting with the assignee of a government recognised concessionaire for infrastructure development can, based on facts and circumstances of the case, be given the benefit of deduction under Section 80IA(4) of the Income Tax Act 1961.The provision prescribes deductions in respect of enterprises engaged in infrastructure development. Sub-section (b) of the provision stipulates that the enterprise claiming deduction must have entered into an...

S.110 Customs Act- Failure To Disclose Reasons For Confiscating Goods 'Draconian', Violates Article 14, Renders Provisional Attachment Illegal: Patna HC

The Patna High Court has held that failure on part of the customs officer to record reasons for confiscating goods under Section 110 of Customs Act, renders the provisional attachment “illegal”.The provision empowers a customs officer to seize goods if he has 'reason to believe' that such goods are liable to confiscation under the Act, and prescribes subsequent procedure.Bench of Justices PB Bajanthri and Alok Kumar Pandey observed, “For seizure of goods, unless there are strong and compelling...

Assessing Officer Can't Issue Reassessment Notice On Mere 'Change Of Opinion' About Material Already Available At Time Of Scrutiny: Gujarat HC

The Gujarat High Court has reiterated that an Assessing Officer under the Income Tax Act 1961 cannot issue notice for re-assessment of income under Section 148, on mere “change of opinion” on the material which was already furnished by the assessee at the time of scrutiny under Section 143(2).Division bench of Justice Bhargav D. Karia and Justice Niral R. Mehta observed, “In our considered opinion, the assessee– petitioner at the time of filing the original return and thereafter in the scrutiny,...

Continuation Of Order Of Attachment And Garnishee Notice Is Impermissible When Appeal Filed Against Order Of Assessment: Andhra Pradesh High Court

The Andhra Pradesh High Court stated that when the assessee files an appeal against an order of assessment, the enforcement actions that have been taken, such as property attachment and garnishment notices, should not continue.The Division Bench of Justices R Raghunandan Rao and Harinath. N observed that the assessee has preferred an appeal and has paid 10% of the disputed tax, as required under Section 107 of the CGST Act, no further tax can be recovered from the assessee, in pursuance of...

Appeal Dismissed For Non-Payment Of Pre-Deposit; Revenue Can't Challenge Restoration After Accepting Deposit: Punjab and Haryana High Court

The Punjab and Haryana High Court stated that if the appeal of the assessee was previously dismissed due to non-payment of the pre-deposit, and they have since made that payment, which has been accepted by the Revenue, then the Revenue cannot later challenge the restoration of the appeal.The Division Bench of Justices Sanjeev Prakash Sharma and Sanjay Vashisth observed that “Tribunal can be said to be functus officio only after it decides any appeal on merits. If the appeal has been only...

Gujarat HC Pulls Up GST Authority Over “Cryptic” SCN For Cancelling Registration Despite 2022 Directions

The Gujarat High Court on Friday criticized the GST authorities over their failure to comply with two years old guidelines issued by it in Aggrawal Dyeing & Printing vs. State of Gujarat (2022) for issuance of reasoned show cause notices (SCN) for cancellation of GST registration.In that case, the HC had directed the authorities to include all necessary particulars in the SCN and had cautioned them against “travelling beyond” the notice in their final order.The Division bench of Justice...

AP High Court Dismisses Plea Alleging “Double Taxation” On Sale Of Basmati Rice, Says Fees Collected By Agricultural Market Committee For Its Services Is Not Tax

The Andhra Pradesh High Court has dismissed a petition alleging that cess levied by State's Agricultural Market Committee on sale of 'Basmati rice' amounts to “double taxation”.One of the petitioners, a trader of Basmati rice, claimed that it sources the rice from Punjab where it already pays agricultural market committee tax and thus contended that if the State of Andhra Pradesh imposes tax on the very same stock, it amounts to double taxation.The Market Committee argued they are not collecting...

Educational Trust Using Earnings For Educational Advancement Entitled To Benefits Under Section 12AA Of Income Tax Act: Punjab & Haryana High Court

The Punjab and Haryana High Court ruled that an institute registered as an educational trust, using its earnings solely for educational advancement, should not be denied the benefits of Section 12AA of the Income Tax Act, 1961.The Bench of Justices Sanjeev Prakash Sharma and Sanjay Vashisth observed that “the institute is a duly registered educational trust and whatever earnings it receives are also utilized for the purpose of advancement of education, the institution could not have been...

“Notification Issued Without GST Council's Recommendation”: Gauhati HC Sets Aside Notification Extending Time Line For Issuance Of Order For A.Y. 2018-19 And 2019-20

The Gauhati High Court allowed the batch of writ petitions challenging the Notification No. 56/2023 dated 28.12.2023 extending the period of limitation for issuance of Order u/s 73(10) of the CGST Act, 2017 for the Assessment Year 2018-19 and 2019-20.The Court opined that the existence of the recommendation is a sine qua non for exercising the power under Section 168A to extend the timelines and without the recommendations, the exercise of the power would be legally not sustainable. The Bench...

Madras High Court Stays Instruction Of Specified Officer Removing General Insurance Services From Default List Of Input Services For GST Exemption

The Madras High Court has stayed an instruction issued by the Specified Officer, Office of Development Commissioner, MEPZ Special Economic Zone, through which the officer had unilaterally removed General Insurance services from the default list of input services which are eligible for GST exemption. Justice Anita Sumanth noted that assumption of jurisdiction by the specified officer to amend the instructions which was issued by the Government of India was suspectable. “Prima facie...

Non-Filing Of Declaration & Input-Output Ratio Is Procedural Requirement But Not Pre-Condition For Claiming Rebate On Excise Of Exported Goods: Bombay HC

The Bombay High Court recently clarified that just because the verification of input-output ratio was not submitted before the export of goods, it does not mean that same cannot be verified post export of goods.While giving such relaxation, the Division Bench of Justice K. R. Shriram and Justice Jitendra Jain observed that the procedure for submitting input-output ratio is inconsequential for claiming rebate under Central Excise Act when the claim of petitioner/ assessee is only qua excise duty...