DGFT Has No Authority To Violate The Foreign Trade Policy, Power Lies Only With Central Govt: Karnataka High court

The Karnataka High Court has held that only the Central Government can make provision for prohibiting, restricting, or regulating the import or export of goods or services, or technology and not the Director General of Foreign Trade (DGFT).The single bench of Justice S.R. Krishna Kumar has observed that only the Central Government can formulate and announce the Foreign Trade Policy by ‘Notification’ in the Official Gazette and may also, in like manner, amend that policy. The power of the Central...

Errors Committed Are Inadvertent, Rectification Would Enable Proper Reporting Of The Turnover And ITC: Madras High Court

The Madras High Court has held that errors committed are inadvertent and, the rectification would, in fact, enable proper reporting of the turnover and input tax credit (ITC) to enable claims to be made in an appropriate fashion by the assessees.The single bench of Justice Anita Sumanth has observed that the petitioners must be permitted the benefit of rectification of errors where there are no malafides attributed to the assesses.The petitioner/assessee is a dealer under the provisions of the...

Assessee Became Victim Of Lacuna In SVLDR Scheme Software: Bombay High Court Quashes Rejection Of Declaration

The Bombay High Court has quashed and set aside the rejection of the Petitioner’s declaration for SVLDRS-1.The division bench of Justice Nitin Jamdar and Justice Abhay Ahuja has observed that the petitioner/assessee was a victim of the lacuna in the software governing the Sabka Vishwas (Legacy Dispute Resolution) (SVLDR) Scheme, 2019 where the Petitioner could not have selected the option of Navi Mumbai Commissionerate which was earlier Commissionerate of the petitioner.The petitioner has...

Income Tax Act - Date Of Panchnama Last Drawn Starting Point Of Limitation For Completing Block Assessment Proceedings: Supreme Court

The Supreme Court has held that the date on which the Panchnama was last drawn is the starting point of the two-year limitation for completing the block assessment proceedings under the Income Tax Act 1961.The division bench of Justice M.R. Shah and Justice C.T. Ravikumar has upheld the order of the Delhi High Court in which it was held that the date of the Panchnama last drawn would be the relevant date for considering the period of limitation of two years and not the last date of...

Supply Of The Aircraft Type Rating Training Is Exigible To GST: AAR

The Karnataka Authority for Advance Ruling (AAR) has held that the supply of aircraft-type rating training is eligible for GST.The two-member bench of M.P. Ravi Prasad and Kiran T. Reddy has observed that the supply of aircraft type rating training services to commercial pilots, in accordance with the training curriculum approved by the Directorate General of Civil Aviation for obtaining the extension of aircraft type ratings on their existing licenses, does not result in a qualification as the...

Transaction Of Transfer/Sale Of One Of The Independent Running Business Divisions Attracts 18% GST: AAR

The Karnataka Authority for Advance Ruling (AAR) has held that the transfer or sale of one of the independently running business divisions attracts 18% GST.The two-member bench of M.P. Ravi Prasad and Kiran T. Reddy has observed that the transaction of transfer or sale of one of the independent running business divisions as a whole, along with all the assets and liabilities of the independent business division on a going concern basis, constitutes a transaction of "supply" under Section 7 of the...

VAT Act, Madhya Pradesh High Court Directs Dept. To Refund Pre-Deposit With 6% Interest

The Madhya Pradesh High Court has directed the state/commercial tax department to refund the pre-deposit amount paid during the appeal with 6% interest to the assessee.The division bench of Justice Sushrut Arvind Dharmadhikari and Justice Prakash Chandra Gupta has observed that even though there is no provision for payment of interest on the refund of amounts so collected under the VAT Act, the petitioner would be eligible for 6% interest per annum w.e.f. April 17, 2017, until the date of...

Supply Of Goods To The Overseas Customer Is Neither A Supply Of Goods Nor A Supply Of Services: Karnataka AAR

The Karnataka Authority for Advance Ruling (AAR) has ruled that the supply of goods to an overseas customer is treated neither as a supply of goods nor as a supply of services.The two-member bench of M.P. Ravi Prasad and Kiran T. Reddy has observed that there are two transactions involving the applicant. The first transaction is the supply of goods by the manufacturer to the applicant, and the second transaction is the supply of the same goods by the applicant to an overseas customer.In the...

Tax Cases Weekly Round-Up: 19 March To 25 March 2023

Supreme Court Only Retail Sale Can Claim Assessment Benefits Under Section 4A Of Central Excise Act : Supreme Court Case Title: Commissioner Of Central Excise & Service Versus M/S. A.R. Polymers Pvt. Ltd. Etc. Citation: 2023 LiveLaw (SC) 223 The Supreme Court has held that mere affixation of MRP does not make goods eligible for central excise duty exemption, and what is required along with the affixation is a mandate of law that directs the seller to affix such MRP. Delhi...

DGFT Allows Import Of Urea Through India Potash Till March 2024

The Director General Of Foreign Trade (DGFT) has notified the amendment in the import policy of urea which allowed the import of urea through India Potash Limited (IPL) till March 2024.As per the existing import policy the import of Urea is also allowed through IPL for a period up to March 31, 2023.Now, as per the revised policy import of Urea is allowed through IPL for a period up to March 31, 2024.The import of Urea (for agricultural purposes) into the Government Account shall be allowed...

Characterization Of Share Application Money By AO As Unexplained Cash Credit Is Devoid Of Necessary Verifications: ITAT

The Raipur Bench of the Income Tax Appellate Tribunal (ITAT) has held that the characterization of the share application money of Rs. 25 lac by the AO as an unexplained cash credit under Section 68 of the Income Tax Act is clearly devoid and bereft of necessary verifications.The bench of Ravish Sood (Judicial Member) has observed that the matter, in all fairness, requires to be restored to the file of the AO, with a specific direction that he shall, in the course of set-aside proceedings, call...

Husband Entitled To TDS Credit On Interest Earned From Amount Gifted To His Wife: ITAT

The Income Tax Appellate Tribunal's (ITAT), Pune Bench ruled that the husband is entitled to TDS credit on interest earned on the amount gifted to his wife.The two-member bench of R.S. Syal (Vice President) and S.S. Viswanethra Ravi (Judicial Member) has held that where the income on which tax has been deducted at source is assessable in the hands of someone other than the deductee, credit for the proportionate tax deducted at source shall be given to that other person rather than the...