Tax
Notice And Assessment Order Passed In The Name Of Non-Existing Company Is Illegal And Without Jurisdiction: Karnataka High Court
The Karnataka High Court has held that a notice and assessment order passed in the name of a non-existing company is substantively illegal and is an order passed without jurisdiction.The bench of Justice S. Sunil Dutt Yadav has relied on the decision of the Supreme Court in the case of Principal Commissioner of Income Tax v. Maruti Suzuki India Limited, in which it was held that the assessment order framed in the name of a non-existing person was void ab initio.The petitioner, Coffee Day Resorts...
Rule 89(4) Under CGST Rules Inapplicable On Refund Of Integrated Tax Paid On Zero-Rated Supply: Delhi High Court
The Delhi High Court has held that Rule 89(4) of the Central Goods and Services Tax Rules, 2017 is inapplicable to cases of refund of integrated tax paid on zero-rated supply.The bench of Justice Vibhu Bakhru and Justice Amit Mahajan has noted that the opening sentence of Rule 89(4) makes it amply clear that it applies only in cases of zero-rated supply of goods or services without payment of tax under a bond or letter of undertaking.Rule 89(4) of the Rules applies only to refunds with respect...
GST Tribunal Not Constituted: Orissa High Court Condones Delay And Stays GST Demand
The Orissa High Court stayed the Goods and Service Tax (GST) demand subject to deposit of tax as the GST Tribunal is not constituted.The bench of Justice B.R. Sarangi and Justice M.S. Raman has observed that since the petitioner wants to avail the remedy under the provisions of law by approaching the 2nd appellate tribunal, which has not yet been constituted, as an interim measure subject to the petitioner depositing the entire tax demand within a period of four weeks, the rest of the...
Income Tax Not Chargeable On Interest Subsidy Received Under Technology Upgradation Fund Scheme: ITAT
The Mumbai Bench of the Income Tax Appellate Tribunal (ITAT) has held that income tax is not payable on the interest subsidy received under the technology upgradation fund scheme.The bench of Kuldip Singh (Judicial Member) and Prashant Maharishi (Accountant Member) has observed that interest subsidy received under the technology upgradation fund scheme, though credited in the net off against the interest expenditure in the books of account, is still capital in nature.The assessee is a company...
Delhi High Court Quashes SCN For Being Devoid Of Reasons, Restores GST Registration
The Delhi High Court has quashed the show cause notice as it was devoid of reasons and restored the GST registration.The bench of Justice Vibhu Bakhru and Justice Tushar Rao Gadela observed that the show cause notice was deficient. It does not sufficiently disclose the reasons why the petitioner’s GST registration was suspended or was proposed to be canceled. It is well settled that a show cause notice must clearly set out the reasons for proposing an adverse action in order for the noticee to...
CBDT Liberalises Signing Requirement For Advance Ruling Applications
The Central Board of Direct Taxes and Customs (CBDT) has liberalized the signing requirement for Advance Ruling applications.The CBDT has notified the Income-tax (Ninth Amendment) Rules, 2023, by which it has amended Rule 44E of the Income Tax Rules, 1962.As per the amended Rule 44E of the Income Tax Rules of 1962, applicants seeking advance rulings may send their applications to the Secretary of the Board for Advance Rulings via electronic mail with their signatures or digital signatures.Prior...
CBIC Notifies The Guidelines For Processing Of Applications For GST Registration
The Central Board of Indirect Taxes And Customs (CBIC) notified the guidelines for processing applications for registration.The instances have come to notice regarding unscrupulous elements obtaining fake/ bogus registration under GST and defrauding the Government exchequer. The fake/non-genuine registrations are being used to fraudulently pass on input tax credits to unscrupulous recipients by issuing invoices without any underlying supply of goods or services or both.The menace of fake...
Kerala High Court Quashes Property Tax Demand Raised Without The Assessment Of The Property
The Kerala High Court has quashed the property tax demand raised without an assessment of the property.The bench of Justice Anu Sivaraman has observed that the property tax was demanded at the maximum rate possible without considering any relevant aspect, including the age of the building.The petitioner has challenged the demand raised against him for property tax. The petitioner had constructed a building that was assessed property tax in the year 2000, and the petitioner was paying the...
Land To Be Re-assessed For Fixing Basic Tax Rate After Change In The Nature Of Land: Kerala High Court
The Kerala High Court has held that as the nature of the land of the petitioner has been permitted to be changed pursuant to the passing of a statutory order under the Kerala Land Utilisation Order, 1967, the competent authority is bound to re-assess the rate of basic tax and to make necessary entries in the Basic Tax Register after verifying the veracity and genuineness of the permission obtained.The bench of Justice N. Nagaresh, while relying on the decision in Mary Abraham v. State of Kerala...
'Refrain From Issuing Service Tax /GST Notices To Lawyers Rendering Legal Services': Allahabad HC Directs Lucknow GST Commissionerate
The Allahabad High Court has ordered the Commissioner, GST to issue clear direction to the GST Commissionerate in Lucknow that no notices regarding payment of service tax /GST are issued to the lawyers rendering legal service falling in the negative list so far as service tax is concerned. The bench of Justice Alok Mathur and Justice Jyotsna Sharma directed thus while hearing a writ plea filed by an Advocate Pankaj Khare challenging a May 2023 order passed by Dy. Commissioner, CGST...
CESTAT Allows Service Tax Refund On Advance Amount Returned To The Buyer, Upon The Cancellation Of The Flats Booking
The Mumbai Bench of the Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has allowed service tax refunds on advance amounts returned to the buyer upon cancellation of the flat booking.The bench of Ajay Sharma (a judicial member) has observed that once the buyer cancelled the booking and the consideration for service was returned, the service contract got terminated, and once it is established that no service is provided, then a refund of tax for such a service becomes admissible.The...
GST Registration Cancellation With Retrospective Effect Can’t Be A Ground To Deny GST ITC To The Buyer: Calcutta High Court
The Calcutta High Court, while noting that at the time of the transaction, the name of the supplier as a registered taxable person was already available with the government record, and the buyer/petitioner had paid the amount of the purchased articles as well as tax through the bank and not in cash, remanded the matter back to the department.The bench of Justice Krishna Rao has observed that in the absence of proper verification, it cannot be said that there was any failure on the part of the...