Tax
Govts Should Collect Taxes Like Honeybee, Without Disturbing Petals: Allahabad High Court While Quashing Penalty Order Against Hawkins
Recently, while quashing penalty order passed under Section 129 of the Goods and Service Tax Act, 2017 against M/s Hawkins Cookers Limited, the Allahabad High Court cited the Arthashastra by Chanakya.“Governments should collect taxes like a honeybee collects honey from a flower without disturbing its petals.”The Court held that in absence of any other discrepancy, incorrect address entered in four out of eight e-way bills is of the principal place of business of the petitioner, the same does not...
S.75(4) UPGST Act | Failure To File Reply To Show-Cause Notice Does Not Take Away Right Of Personal Hearing: Allahabad High Court
The Allahabad High Court has held that not filing a reply to a show cause notice does not take away the opportunity for personal hearing mandated under Section 75(4) of the Uttar Pradesh Goods and Service Tax Act, 2017.Section 75(4) of the UPGST Act provides that an opportunity for a hearing must be granted if requested in writing or where any adverse action is contemplated against such person.The bench comprising of Justice Saumitra Dayal Singh and Justice Manjive Shukla held that there is a...
CESTAT Quashes Excise Duty Demand Against Pepsico Scrap-Veg-Refuse Arising From Manufacture Of Exempted Goods
The Chandigarh Bench of Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has quashed the excise duty demand against Pepsico Scrap-Veg-Refuse arising from the manufacture of exempted goods.The bench of S. S. Garg (Judicial Member) and P. Anjani Kumar (Technical Member) has observed that waste pairing and scrap arising during the manufacture of exempted goods were exempt from the payment of excise duty.The appellant/assessee is engaged in the manufacturing of potato chips, Kurkure,...
Obligation Of CHA Cannot Be Stretched To Undertake Background Check Of Client, Revoking Customs Brokers License Not Sustainable: CESTAT
The Delhi Bench of Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has held that the obligation of the Customs House Agent under Section 13(e) of the CHALR, 2004 cannot be stretched to it being obliged to undertake a further background check of the client. The bench of Binu Tamta (Judicial Member) and Hemambika R. Priya (Technical Member) has observed that Regulation 10(n) requires the customs broker to verify the identity of the client using reliable, independent, authentic...
Period Spent In Disposal Of Appeal Before CESTAT Shall Not Be Counted Towards Period Stipulated Under Section 28 (9) Of Customs Act: Delhi High Court
The Delhi High Court has held that the period spent in the disposal of the appeal before the CESTAT, i.e., between the filing and the final order being passed, shall not be counted towards the period stipulated under Section 28 (9) of the Customs Act.The bench of Justice Sanjeev Sachdeva and Justice Ravinder Dudeja has observed that the Tribunal has already heard the appeal of the petitioner and the order is reserved. The petitioner had filed an interim reply to the Show Cause Notice on August...
Madras High Court Quashes Revision Order Passed Under TNGST Act Against Renault Nissan For Travelling Beyond The Scope Of Revision Proceedings
The Madras High Court has quashed the revision order passed under the Tamil Nadu Goods and Service Tax Act (TNGST Act) against Renault Nissan for travelling beyond the scope of revision proceedings.The bench of Justice Senthilkumar Ramamoorthy has quashed the revision order and remanded the matter for reconsideration. The respondent department was directed to provide a reasonable opportunity, including a personal hearing, to the petitioner and thereafter issue a speaking order. The exercise...
Assessee Ought Not To Have Meted Out Discriminatory Treatment Of Denying Clearance: Bombay High Court Allows Provisional Release Of Premium Cold Coffee
The Bombay High Court has held that the petitioner ought not to have been meted out such discriminatory treatment as denying clearance. The harsh and unreasonable conditions cannot be imposed, and more so when there is not an iota of material on the part of the department, as placed before the Court, indicating as to why a different yardstick would be required to be applied to the present consignments when earlier seven consignments were released at 16% to 28% bank guarantee.The bench of Justice...
UPVAT Act | Revision Jurisdiction Of High Court Limited To Questions Of Law, Jurisdictional Errors Or Procedural Irregularities: Allahabad High Court
The Allahabad High Court has held the revision jurisdiction under Section 58 of the Uttar Pradesh Value Added Tax Act, 2008 is limited to questions of law, jurisdictional errors, or procedural. The Court held that the High Court must refrain from going into questions of facts which have been decided by the Tribunal.Section 58 of the Uttar Pradesh Value Added Tax Act, 2008 provides that any person aggrieved by the order passed under Section 57(7) or Section 57(8) of the UPVAT Act can file a...
After Amendment Mere Reason To Believe Can't Be Ground For Carrying Out Reassessment: Karnataka High Court
The Karnataka High Court has held that the Assessing Officer has to be prima facie satisfied that there is “escapement of income”, unlike earlier law which permitted action based on mere reason to believe. Now mere reason to believe, cannot be a ground for carrying out assessment under section 147 of the Income Tax Act.The bench of Justice Krishna S Dixit has observed that under the old section, the opening words were “If the Assessing Officer has reason to believe that any income chargeable to...
Provisions Of Section 148 Under Old Regime Including TOLA Can't Be Applied To New Regime: Calcutta High Court
The Calcutta High Court has held that if the provisions of the old regime of Section 148 of the Income Tax Act, including Taxation and other Laws (Relaxation and Amendment of Certain Provisions) Act, 2020 (TOLA), are read into or applied to the new regime applicable from 01.04.2021, it would also necessarily mean that a provision repealed by the Parliament without any savings and exception clause is applied by the department even after its life has come to an end, which is clearly not...
Imparting Practical Training To Nurses And Psychologists Not A 'Healthcare Services', No GST Exemption Available: AAR
The Karnataka Authority of Advance Ruling (AAR) has ruled that fees collected from nurses and psychologists for 'imparting practical training' are not exempted from GST.The bench of M.P. Ravi Prasad and Kiran Reddy T. has observed that 'healthcare services' can be defined as a service by way of diagnosis, treatment, or care for illness, injury, deformity, abnormality, or pregnancy. But the applicant is providing practical training to nursing students and psychologists, and hence the same is not...
Special Economic Zones (Amendment) Rules, 2024: Govt. Provides Sourcing Options To Gems And Jewellery Units
The government has extended the sourcing options for gem and jewellery units by allowing them to obtain gold, silver, or platinum "or free of charge from foreign buyers and export thereof to the same foreign buyer.The Ministry of Commerce and Industry has amended the Special Economic Zones Rules, 2006, under section 55 of the Special Economic Zones Act, 2005. The Special Economic Zones (Amendment) Rules, 2024, introduces a change to sub-rule (6) of rule 27 of the SEZ Rules.Rule 27 of the SEZ...