Secured Creditors Shall Take Priority Over Government Dues Under SARFAESI Act: Bombay High Court

The Bombay High Court has held that the rights of secured creditors to realise secured debts shall have priority over government dues, including revenues, taxes, cesses, and rates due to the Central Government, State Government, or local authority under the SARFAESI Act.The three judge bench headed by Chief Justice Dipankar Dutta, Justice M.S.Karnik and Justice N.J. Jamadar has observed that the Sales Tax Commissioners did not claim that they registered the claim with the CERSAI to adhere...

CBIC Issues Guidelines For Prosecution Under GST

The Central Board of Indirect Taxes and Customs (CBIC) has issued instructions regarding the prosecution under GST.Section 132 of the Central Goods and Services Tax Act, 2017 (CGST Act, 2017) codifies the offences under the Act which warrant the institution of criminal proceedings and prosecution. As per the guidelines, prosecution should not be filed merely because a demand has been confirmed in the adjudication proceedings. Prosecution should not be initiated in cases of a technical...

Registering Authority Responsible For Establishing Genuineness Of Taxpayers : Rajasthan GST Dept circular

The Rajasthan Goods and Service Tax (GST) departmenthas issued a circular regarding the verification of applications for grant of new GST registration.The registration of any business entity under the GST Law implies obtaining a unique GSTIN from the concerned tax authorities for the purpose of collecting tax on behalf of the government and availing ITC for the taxes paid on the inward supplies. The Registering Authority has the responsibility to establish the genuineness of the...

ITAT Rejects The Claim Of NDTV To Treat Expenditure As Pre- Operative In Nature For The Assessment Year 2009- 2010

The Delhi Bench of the Income Tax Appellate Tribunal (ITAT) has held that the business of the NDTV Studios had not been set up during the assessment year 2009- 2010 and all the expenses claimed by the assessee were pre-operative in nature, which should have been capitalised.The two-member bench of Yogesh Kumar U.S. (Judicial Member) and N.K.Billaiya (Accountant Member) has observed that the expenses claimed by the assessee are not deductible as business expenditure and have been...

Intention To Evade Tax Is Absent, Taxpayer Needs To Be Given Another Chance: Delhi High Court

The Delhi High Court has held that the petitioner/taxpayer needs to be given another chance to establish why the subject goods did not reach their designated designation before the expiry of the e-way bill.The division bench of Justice Rajeev Shakdher and Justice Tara Vitasta Ganju has remanded the matter to the respondent to take a fresh decision on the matter, after giving the petitioner due opportunity to produce relevant material and evidence to establish its case. The petitioner...

Assessee Entitled To Avail Cenvat Credit Of Service Tax Already Paid During Transitional Period: Madras High Court

The Madras High Court, consisting of Justice R. Ramdevan and Justice Mohammed Shaffiq, has held that the assessee is entitled to avail cenvat credit of the service tax already paid but the assessee was unable to claim due to a transitional provision that has come into effect from 01.07.2017.The respondent/assessee is engaged in the manufacture of GI Tower Parts, ERW Black and GI Pipes falling under Chapter 73 of the Central Excise Tariff Act, 1985. During the period April 2016 to June ...

ITAT Quashes Time Barred TDS Default Order Passed Against Google India

The Bangalore Bench of the Income Tax Appellate Tribunal (ITAT) has quashed the TDS default order passed against Google India on the grounds that it was time barred. The two-member bench of George George K. (Judicial Member) and Padmavathy S. (Accountant Member) has observed that for the years under consideration, the period of four years from the end of the financial year in which payment was made or credit was given expired on 31.03.2012, whereas the notice was issued by the AO on...

CBIC Introduces Standardised Risk-Based Faceless Assessment System For Clearance Of Imported Consignments

The Central Board of Indirect Taxes and Customs (CBIC) has decided to implement system-generated centralised examination orders in a phased manner in the case of risk-based selection for examination after assessment from the 5th of September, 2022.The National Customs Targeting Centre (NCTC), in consultation with DG Systems and the respective NACs, has developed a system. As per the system, the standardised examination orders will be centrally generated by RMS and populated on the...

Show Cause Notice Containing "NA" In Column Of Date, Time, Venue Of Personal Hearing: Jharkhand High Court Quashes Adjudication Order

The Jharkhand High Court has quashed the adjudication order and held that the notice issued under notice under Section 73 of the CGST Act, in the column of date, time and venue of personal hearing, was indicated by the respondents as "NA", which means not applicable.The division bench of Justice Aparesh Kumar Singh and Justice Deepak Roshan has observed that the adjudication order was not in accordance with the procedure prescribed in law. The order deserves to be quashed on the grounds of...

SCOMET Policy for the export of drones/ UAVs: DGFT Invites Public Comments

The Directorate General of Foreign Trade (DGFT) has invited comments from the public and industry on a proposed amendment in Category 5B of the Special Chemicals, Organisms, Materials, Equipment, and Technologies (SCOMET) list related to the export of drones and unmanned aerial vehicles (UAVs) and General Authorization for Export of Drones (GAED) and UAVs . "With the aim of simplifying the policy of Unmanned Aerial Vehicles (UAVs)/Drones under the SCOMET list, a draft policy amendment...

Attempt By CIT To Exclude Genuine Disputes Under The VSV Act Is Extremely Hyper-Technical: Delhi High Court

The Delhi High Court has held that the attempt by the CIT to exclude genuine disputants of tax liability from the possibility of settlement under the Direct Tax Vivad Se Vishwas Act (VSV) is extremely hyper-technical.The division bench of Justice Mukta Gupta and Justice Anish Dayal has observed that any proceeding challenging a decision by the department in respect of tax, interest, penalty, fee, etc. would come within the purview of a "dispute", which would enable a party to approach...

Sum Received By Bank Under Liquidation, Whose Liability Towards DICGCI Not Cleared- Not Taxable Due To Diversion Of Income At Source: ITAT

The Ahmedabad Bench of the ITAT has ruled that the sum received by a bank who is under liquidation, and whose statutory liability to repay the Deposit, Insurance and Credit Guarantee Corporation of India (DICGCI) is not fully satisfied, is not taxable since all the income received by the assessee bank is diverted at source. The Bench of Members T.R. Senthil Kumar (Judicial Member) and Annapurna Gupta (Accountant Member) held that in view of the mandatory condition contained in Section...