Tax
Tax Cases Monthly Round-Up: August 2022
Indirect TaxSupreme Court Advise States To Implement Digital DIN System : Supreme Court To Centre & GST Council Pradeep Goyal vs Union of India Citation: 2022 LiveLaw (SC) 654 The Supreme Court has directed the GST Council to issue advisory / instructions / recommendations to the respective States regarding implementation of the system of electronic (digital) generation of a Document Identification Number (DIN) in the indirect tax administration. The bench comprising ...
No Legislative Competence To Amend KVAT Act After Introduction Of GST Act: Kerala High Court
The Kerala High Court has held that legislative competence to amend the Kerala Value Added Tax (KVAT) Act after the introduction of the GST Act is impermissible.The division bench of S.V.Bhatti and Justice Basant Balaji has observed that the amendment made by the Finance Act of 2018 to the provisions of the erstwhile KVAT Act to enable the department to initiate assessment proceedings in respect of assessments pending as of March 31, 2018 was illegal because the KVAT Act has already been...
No Penalty Can Be Imposed For Introducing The Importer To IEC Holder: CESTAT
The Delhi Bench of the Customs, Excise and Service Tax Appellate Tribunal (CESTAT) has held that a penalty cannot be imposed for introducing the importer to the Importer-Exporter Code (IEC) holder.The bench of Anil Chaudhary (Judicial Member) has observed that no penalty can be imposed without proving the role of the person being charged. The appellant/assessee is working as a clearing agent of imported goods but does not have any CHA/CB licence. Until 2007, the appellant had dealings...
Bombay High Court Directs CBIC To Issue Clarification Regarding Distribution/ Reporting Of ISD Credit
The Bombay High Court has directed the Central Board of Indirect Taxes and Customs (CBIC) to issue a clarification in relation to the distribution/ reporting of the ISD credit. The Bench of Justices K.R. Shriram and Gauri Godse was dealing with a batch of writ petitions, highlighting the difficulties faced by the petitioners in the distribution/ reporting of the ISD credit. The petitioners, including Unichem Laboratories Limited and Pfizer Limited, filed writ petitions before the...
Delhi High Court Allows Deduction To PVR On Difference Between Market Price & Issue Price Of ESOP
The Delhi High Court has allowed the appeal of PVR Ltd. and allowed the deduction on the difference between the price at which stock options were offered to employees of the appellant company under ESOP and ESPS and the prevailing market price of the stock.The division bench of Justice Manmohan and Justice Manmeet Pritam Singh Arora has relied on the decision of the Karnataka High Court in the case of Commissioner of Income Tax vs. Biocon Ltd. and has observed that an assessee is entitled...
Mandatory Deposit U/S 35F Of Excise Act Cannot Be Made By Way Of Debit In Electronic Credit Ledger Maintained Under CGST Act: CESTAT
The Allahabad Bench of the Customs, Excise and Service Tax Appellate Tribunal (CESTAT) has held that a mandatory deposit under section 35F of the Excise Act cannot be made by way of debit in the Electronic Credit Ledger maintained under the CGST Act.The two-member bench headed by Dilip Gupta (President) and P. Anjani Kumar (Technical Member) has observed that as per the provisions of section 41 of the CGST Act, credit lying in the electronic credit ledger can be utilised only for...
Re-assessment Order Passed Without Considering Detailed Reply Of The Assessee: Delhi High Court
The Delhi High Court held that the significance of issuing a show cause notice prior to issuing a re-assessment notice has been lost because the order under Section 148A(d) of the Income Tax Act was made without taking into account the detailed reply filed by the assessee.The division bench of Justice Manmohan and Justice Manmeet Pritam Singh has observed that the department has not examined the petitioner's plea that the petitioner-society has included all the transactions carried out by...
If Assessee Disputes Interest Liability Then Dept. Has To Follow Procedure Laid Down u/s 73 or 74 of the CGST Act: Jharkhand High Court
The Jharkhand High Court has held that if any assessee disputes the liability of interest under Section 50 of the CGST Act, then the department has to follow the specific procedure as stipulated under Section 73 or 74 of the CGST Act.The division bench of Justice Aparesh Kumar Singh and Justice Deepak Roshan has observed that the department failed to follow the procedure as enshrined in Section 73 or 74 of the JGST Act. The petitioner/assessee found itself entitled to claim transitional...
Investigation Post Filing Application Would Not Debar Applicant From Seeking Advance Ruling: Telangana High Court
The Telangana High Court has held that the investigation post-filing of the application would not debar the applicant from seeking an advance ruling.The division bench of Chief Justice Ujjal Bhuyana and Justice C.V.Bhaskar Reddy has observed that the word "proceedings" has neither been defined in Chapter XVII nor in the definition clause, i.e., in Section 2 of the CGST Act. The inquiry or investigation would not come within the ambit of the word "proceedings". The petitioner is a...
Interface Development Services By BlackRock India - Not An 'Intermediary Service': CESTAT
The Chandigarh Bench of CESTAT has ruled that the services provided by BlackRock India, relating to development of interface for an operating system for investment managers, is not an intermediary service. The Bench of Ajay Sharma (Judicial Member) and P.V. Subba Rao (Technical Member) held that the 'Business Support Services' rendered by BlackRock to its US based clients would qualify as an export of service in terms of Rule 6A of Service Tax Rules, 1994, and thus, BlackRock was...
Dept. Failed To Establish Element Of Tax Evasion :Madhya Pradesh High Court Quashes Penalty
The Madhya Pradesh High Court quashed the penalty for the expiry of e-way bill as the department failed to establish that there existed any element of evasion of tax, fraudulent intent or negligence on the part of the petitioner.The division bench of Justice Sujoy Paul and Justice Prakash Chandra Gupta has observed that the delay of almost 4:30 hours before which the E-way Bill expired appears to be bona-fide and without establishing fraudulent intent and negligence on the part of the...
Compensation For Compulsory Acquisition Of Commercial Land Exempted From Income Tax: ITAT
The Patna Income Tax Appellate Tribunal (ITAT) has held that the compensation received in respect of an award or agreement has been exempt from the levy of income tax as per section 96 of the Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation, and Resettlement Act, 2013 (RFCTLARR Act).The two-member bench of Sonjoy Sarma (Judicial Member) and Manish Borad (Accountant Member) has observed that no distinction was made between compensation received for compulsory...