Issuance Of Repeated Summons Without Ensuring Service Of The Summons Must Be Avoided: CBIC

The Central Board of Indirect Taxes and Customs (CBIC) has issued guidelines on the issuance of summons under section 70 of the Central Goods and Services Tax Act, 2017. It has been brought to the Board's attention that summons under Section 70 of the CGST Act have been routinely issued by field formations to top senior officials of companies to request material evidence or documents. Besides, summons have also been issued to call for statutory records, viz. GSTR-3B, GSTR-1, etc.,...

Assessee Required To Substantiate Claim Of TDS, In Absence Of TDS Certificate: ITAT

The Mumbai Bench of ITAT has ruled that where the assessee has no TDS certificate available with it, it is required to discharge its responsibility of proving whether TDS was deducted by the payer of income or not in order to avail credit of TDS. The Tribunal ruled that the onus is on the assessee to substantiate its claim of tax deducted at source on the payments received by it. The Bench, consisting of Rahul Chaudhary (Judicial Member) and Om Prakash Kant (Accountant Member),...

Gujarat High Court Grants Bail To Person Alleged Of Creating Fictitious Entity To Pass Ineligible ITC

The Gujarat High Court has granted bail to a person alleged to have created a fictitious entity to pass an ineligible Input Tax Credit (ITC).The single bench of Justice Ilesh J. Vora has directed the release of the applicant on bail, subjected to a deposition of Rs. 2 crore before the office of the Deputy Commissioner of State Tax, Division 8, Enforcement, Surat within a period of 2 months from the applicant's release. The department has found that the applicant engaged in activities of...

Tax Cases Weekly Round-Up: 14 August To 20 August, 2022

Bombay High Court Customs Authorities Cannot Encash Bank Guarantee Before Expiry Of The Limitation Period For Filing An Appeal: Bombay High Court Case Title: S. J. Enterprises & Anr. versus Union of India The Bombay High Court has reiterated that Customs Authorities cannot encash the Bank Guarantee furnished by the assessee before the expiry of the statutory period available for filing an appeal. The Division Bench consisting of Chief Justice Dipankar Datta and Justice M....

Avoid Arrest In GST Cases Of Technical Nature, Don't Use This Power Mechanically : CBIC Issues Guidelines

The Central Board of Indirect Taxes and Customs (CBIC) has issued guidelines for arrest and bail in relation to offences punishable under the Central Goods & Services Tax Act, 2017 (CGST Act). The CBIC has issued guidelines in the light of the decision of the Supreme Court in the case of Siddharth vs. The State of Uttar Pradesh, dated August 16, 2021. The Supreme Court held that if arrests are made routine, they can cause incalculable harm to the reputation and self-esteem of a person. If...

CBIC Revises Threshold Limits For Launching Prosecution In Relation To Offences Punishable Under Customs Act, 1962

The Central Board of Indirect Taxes and Customs (CBIC) has issued the guidelines for the launching of prosecution in relation to offences punishable under the Customs Act, 1962. The CBIC has decided to revise the threshold in the case of baggage and outright smuggling. The arrest and prosecution can be made in cases involving unauthorised importation of baggage/cases under the Transfer of Residence Rules, where the market value of the goods involved is Rs. 50,00,000. The outright...

Activity Of Chemist/Pharmacy Is Incidental To Dominant Object For Running A Hospital: ITAT

The Mumbai Bench of the Income Tax Appellate Tribunal (ITAT) consisting of Rahul Choudhary (Judicial Member) and M. Balaganesh (Accountant Member) has held that the activity of a chemist or pharmacy is incidental or ancillary to the dominant object of running a hospital. The assessee/respondent is a charitable trust duly registered under section 12A of the Income Tax Act. The main objectives of the assessee trust are education and medical relief to the public at large. The AO had sought...

CBIC Issues Guidelines For Arrest And Bail In Relation To Offences Punishable Under Customs Act, 1962

The Central Board of Indirect Taxes and Customs (CBIC) has issued the revised guidelines for arrest and bail in relation to offences punishable under the Customs Act, 1962. The Customs Act of 1962 does not specify any value limits for exercising the powers of arrest. The Board has clarified that arrest in respect of an offence should be effected only in exceptional situations. The arrest can be made in cases involving unauthorised importation of baggage or cases under Transfer of...

Goods Or Conveyance Can't be Detained Without Service of detention Order: Jharkhand High Court

The Jharkhand High Court has held that no goods or conveyance shall be detained or seized without serving an order of detention or seizure on the person transporting the goods. The division bench of Justice Aparesh Kumar Singh and Justice Deepak Roshan has observed that the adjudication order and the appellate order both suffered from procedural infirmities and lacked proper opportunity for the person transporting to defend himself. The alleged violation of Section 129 of the CGST...

Non- Deliberate Delay In Late Filing SFT Return : ITAT Quashes Penalty

The Delhi Bench of the Income Tax Appellate Tribunal (ITAT) has quashed the penalty on the grounds that the delay in the late filing of the Statement of Financial Transaction (SFT) return was not deliberate.The two-member bench of Yogesh Kumar (Judicial Member) and Shamim Yahya (Accountant Member) observed that an order imposing a penalty for failure to carry out a statutory obligation is the result of a quasi-criminal proceeding. The penalty will not ordinarily be imposed unless the...

Non-Existence Of Parties Who Gave Loan To Assessee Is Indication Of Its Prima Facie Bogus Nature: ITAT

The Delhi Bench of the Income Tax Appellate Tribunal (ITAT) has held that the non-existence of the parties who have given loans to the assessee is a clear indication of their nature being prima facie bogus.The two-member bench of Yogesh Kumar US (Judicial Member) and Shamim Yahya (Accountant Member) has observed that in the entire proceeding, there is no discussion about the loan documentation and terms of condition of the loan, the issue of TDS, and nothing has been examined. The...

Imported Milk, Pork, And Fish Products To Accompany Health Certificate: CBIC

The Central Board of Indirect Taxes and Customs (CBIC)has issued instructions requiring the import of food consignments to be accompanied by a Health Certificate.The Food Safety and Standards Authority of India (FSSAI) has issued the instruction. FSSAI stated that with effect from November 01, 2022, imported food consignments of food categories as specified in FSS (Food Product Standards & Food Additives) shall be accompanied by a Health Certificate issued by the Competent Authority of...