Tax
Bombay High Court Allows Taxpayer To Utilise Amount Available In Electronic Credit Ledger to Pay Pre-Deposit
The Bombay High Court has held that the taxpayer may utilise the amount available in the Electronic Credit Ledger to pay the 10% of tax in dispute as prescribed under Sub-section (6) of Section 107 of the CGST Act.The division bench of Justice K.R. Shriram and Justice A.S. Doctor restored the appeal on the taxpayer's promise to debit the Electronic Credit Ledger within one week of the order being uploaded towards the 10% payable under Section 107(6)(b).The court noted that Section 107(6)(b)...
Calcutta High Court Directs State Government To Make Scheme Providing Industrial Incentives GST- Compliant
The Calcutta High Court has ruled that industrial units cannot be kept in a limbo and denied the incentives, which were specifically promised to them, on the ground of change of the tax regime from VAT to GST. The Single Bench of Justice Moushumi Bhattacharya held that the issue of legitimate expectation was involved in the case, and hence, the Court directed the Department of Industry, Commerce and Enterprises, Government of West Bengal and the Finance Department, to make the Scheme...
GST Proceedings Initiated By Anti Evasion And Range Office For The Same Period Is Not Permissible: Calcutta High Court
The Calcutta High Court has held that since the audit proceedings under Section 65 of the CGST Act have already commenced, it is appropriate that the proceedings should be taken to their logical end. The proceedings initiated by the Anti-Evasion and Range Office for the same period will not be continued.The division bench of Justice T.S. Sivagnanam and Justice Supratim Bhattacharya has observed that three wings of the same department are proceeding against the appellants for the same period.The...
Income From Operating And Maintaining IT Park To Be Assessed Under "Income from Business": ITAT
The Mumbai Bench of the Income Tax Appellate Tribunal (ITAT) has held that the income from operating and maintaining an IT park is to be assessed under the head "Income from Business".The two-member bench of Vikas Awasthy (Judicial Member) and M. Balaganesh (Accountant Member) has observed that the income from letting out the premises/developing space along with other facilities in an industrial park, SEZ is to be charged to tax under the head "profits and gains of business."The...
Customs Broker Is Responsible For Acts Of The Employees: CESTAT
The Mumbai Bench of the Customs, Excise and Service Tax Appellate Tribunal (CESTAT) has held that for the act of an employee, direct responsibility is fixed on the customs broker.The bench of Dr. Suvendu Kumar Pati (Judicial Member) has confirmed the penalty and relied on para 13(12) of the CHA Licencing Regulation, 2004 which says, "the customs broker shall exercise such supervision as may be necessary to ensure proper conduct of his employees in the transaction of business and he shall be held...
Andhra Pradesh High Court Quashes Rejection Of GST Refund Application By Axis Bank
The Andhra Pradesh High Court has quashed the rejection of a GST refund application by Axis Bank and remanded the matter back to the original authority.The division bench of Justice C. Praveen Kumar and Justice A.V. Ravindra Babu has referred to a circular dated 25.09.2021 issued clarifying that the insertion of rule (1A) to Rule 89 provides a time limit of 2 years. The two-year time limit would apply from the date of the introduction of the said rule and not from the date of payment of GST.The...
CBIC Rescinds Notification Extending Due Date To File GST Refund Application From 1 October 2022
The Central Board of Indirect Taxes and Customs (CBIC) has rescinded the notification extending the due date to file Goods and Service Tax (GST) refund applications from 1 October 2022."It is necessary for the recommendation of the Council, hereby rescind the notification of the Government of India, Ministry of Finance (Department of Revenue), No.20/2018-Central Tax, dated the 28th March 2018, published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-Section(i), vide number...
Tax Cases Weekly Round-Up: 25 September To 1 October, 2022
Delhi High Court Physical Verification Of Business Premises For GST Registration Without Issuing Notice Is Violation Of Principle Of Natural Justice: Delhi High Court Case Title: Curil Tradex Pvt. Ltd. Versus The Commissioner Citation: 2022 LiveLaw (Del) 905 The Delhi High Court has held that the physical verification of business premises for GST registration without issuing a notice is a violation of the principle of natural justice. The division bench of Justice Rajeev...
Tax Cases Monthly Round-Up: September 2022
Indirect TaxesSupreme Court Disputes Related To Tax Concessions Are Not Arbitrable: SupremeCourt Case Title: M/s Shree Enterprise Coal Sales Pvt Ltd. Versus Union Of India Citation: 2022 LiveLaw (SC) 774 The Supreme Court has held that disputes related to tax concessions are not arbitrable. The division bench of Justice Dhananjaya Y Chandrachud and Justice Hima Kohli has observed that the High Court was in error in holding that the terms of e-auction provided that any...
Reassessment Notice Issued Against A Dead Person Would Be Invalid: Bombay High Court
The Bombay High Court has held that a reassessment notice against a dead person would be invalid unless the legal representatives submit to the jurisdiction of the Assessing Officer without raising any objection.The division bench of Justice Dhiraj Singh Thakur and Justice Valmiki Sa Menezes has observed that where the legal representatives do not waive their right to a notice under Section 148 of the Income Tax Act, it cannot be said that the notice issued against the dead person is in...
CBDT Extends Due Date For Filing Various Reports Of Audit For AY 2022-23 To October 7
The Central Board of Direct Taxes (CBDT)has extended the timeline for filing various reports of audit for Assessment Year 2022-23 under the Income Tax Act, 1961, for certain categories of assessees. The CBDT, vide Circular No. 19/2022, dated 30.09.2022, has extended the due date from 30th September, 2022 to 7th October, 2022. "On consideration of difficulties faced by the taxpayers and other stakeholders in electronic filing of various reports of audit under the provisions of the ...
GST Not Payable On Renting Of A Residential Dwelling For Personal Use: Delhi High Court
The Delhi High Court has held that Goods and Service Tax is not payable on renting a residential dwelling for personal use.The division bench of Justice Manmohan and Justice Manmeet Pritam Singh has observed that the rental of a residential dwelling to a proprietor of a registered proprietorship firm who rents it in his personal capacity for use as his own residence and not for use in the course or furtherance of the business of his proprietorship firm and such renting is on his own account and...