DGFT Clarifies On The Implementation Of The Paper Import Monitoring System

The Directorate General of Foreign Trade (DGFT) has issued a clarification on the Implementation of the Paper Import Monitoring System.The DGFT has received various representations from trade & industry seeking clarification on the applicability of the Notification dated May 25, 2022.The matter was examined in consultation with the Department of Commerce (DOC) and the Department for Promotion of Industry and Internal Trade (DPIIT).The DGFT clarified that in Paper, there are no small...

Can the Writ Court Condone Delay Beyond Time Limit Under GST Act: Madras High Court Refers Issue To DB

The Madras High Court has referred to the division bench the issue of the power of the high court under Article 226 to condone the delay beyond the maximum time limit stipulated under the GST Act.The single bench of Justice Abdul Quddhose has observed that there were two contradictory views expressed by two judges of the Madras High Court.The petitioners have challenged the cancellation of the respective GST registrations. The respondents have refused to entertain the appeal filed by the...

Assessing Officer Not Justified In Rejecting Audited Books Of Accounts For Producing Photocopy Of Bills: ITAT

The Delhi Bench of the Income Tax Appellate Tribunal (ITAT) has held that the assessing officer was not justified in taking drastic action and rejecting books of account that are audited solely on the basis of general remarks that photocopies of the bills have been produced instead of original bills.The two-member bench of Anubhav Sharma (Judicial Member) and Pradip Kumar Khedia (Accountant Member) has observed that an insignificant variation in the net profit ratio per se cannot lead to drastic...

No Provision In GST Act for Confiscating Currency From The Premises : Delhi High Court

The Delhi High Court ruled that there is no provision in the GST Act that would allow for the forcible removal of currency from the premises of any person.The division bench of Justice Vibhu Bakhru and Justice Amit Mahajan has observed that the powers of search and seizure are draconian powers and must be exercised strictly in terms of the statute and only if the necessary conditions are satisfied.The petitioner/assessee has challenged the search operation as unlawful. The petitioner contended...

CAAR Not Barred From Giving Ruling On The Ground Of Preliminary Exercise Being Done By Customs Officer: Delhi High Court

The Delhi High Court has ruled that merely because an officer of customs contemplates that a question may arise for consideration, does not mean that the question is “pending” consideration so as to bar the Customs Authority for Advance Ruling (CAAR) from deciding the issue in an application for advance ruling, under Clause (a) of the proviso to Section 28-I (2) of the Customs Act, 1962. The bench of Justices Vibhu Bakhru and Amit Mahajan held that in order for a question to be...

Online Gaming Not Betting/Gambling; Rajasthan High Court Grants Interim Relief to Myteam 11

The Rajasthan High Court has observed that the issue regarding the nature of gaming services provided online is no longer res-integra, adding that such gaming services have been held to be games of skill and not games in nature of betting or gambling. Noting that the matter has been settled in view of the judgments passed by various Courts, the bench of Chief Justice Pankaj Mithal and Justice Shubha Mehta remarked that issue of show cause notice to Myteam11 by the GST authorities,...

2% TDS Deductible On Common Area Maintenance Charges: ITAT

The Delhi Bench of the Income Tax Appellate Tribunal (ITAT) has held that 2% TDS is deductible on common area maintenance charges.The two-member bench of C.M. Garg (Judicial Member) and Pradip Kumar Khedia (Accountant Member) has observed that the common area maintenance charges were not part of the actual rent paid to the owner by the assessee company. Payments of rent and common area maintenance charges have been made to distinct entities or companies; therefore, the authorities below were not...

Payment Of Tax And Penalty To Release Detained Goods Can’t Be Treated As “Admission” On The Part Of Assessee: Delhi High Court

The Delhi High Court has held that the payment of tax and penalty to release the detained goods shall not be treated as "admission" on the part of the assessee.The division bench of Justice Vibhu Bakhru and Justice Amit Mahajan has observed that the petitioner had paid the tax and penalty for the release of the goods and that the said payment was not voluntary. Neither the show-cause notice nor the order of demand clearly sets out the reason for imposing the tax liability as well as the...

Presence Of Gold In Pocket Without The Appropriate Documentation Raises Suspicions Of Tax Evasion: Kerala High Court

The Kerala High Court has held that the presence of gold in your pocket without the appropriate documentation raises suspicions of tax evasion.The bench of Justice Gopinath P. has observed that there is no satisfactory explanation for the fact that there was a discrepancy in the number of documents produced by the petitioner in the evening before the department and the quantity of gold actually recovered from the petitioner.The petitioner is the proprietor of an establishment known as "One...

Administering Of COVID-19 Vaccine By Hospitals Attracts 5% GST: AAAR

The Andhra Pradesh Appellate Authority for Advance Ruling (AAAR) has ruled that hospitals must pay 5% GST when administering the COVID-19 vaccine.The two-member bench of Sanjay Pant and M. Girija Shankar has observed that the administration of the COVID-19 vaccine is not an exempt supply as it is not covered under the definition of "healthcare services." Further held, it is a composite supply wherein the principal supply is the "sale of vaccines" and the ancillary supply is the "service of...

Failure To Adjust Interest Paid By NCPA Is Hyper-Technical, Should Not Affect Sabka Vishwas Scheme: Bombay High Court

The Bombay High Court has held that failure to adjust interest paid by the National Centre for the Performing Arts (NCPA) was hyper- technical and should not come in the way of implementation of Sabka Vishwas (Legacy Dispute Resolution) Scheme, 2019 ( SVLDRS).The division bench of Justice Nitin Jamdar and Justice Abhay Ahuja has observed that the object of the SVLDR Scheme should not be lost sight of, as the scheme has itself been formulated for the smooth settlement of disputes. The...

'Premature For High Court To Opine On Tax Evasion' : Supreme Court Sets Aside HC Order Which Quashed Notice Under Section 130 CGST Act

Observing that it was "premature" on the part of the High Court to quash a show-cause notice issued under Section 130 of the Central Goods and Service Tax Act by invoking Article 226 jurisdiction, the Supreme Court recently set aside an order passed by the Punjab and Haryana High Court.The Supreme Court noted that there were allegations about evasion of tax and hence it was premature on the part of the High Court to opine anything on whether there was any evasion of the tax or not. The same was...