Supreme Court Allows 2-Months Extra Window For Availing Transitional Credit; Directs GSTN To Open Portal For TRAN-1/TRAN-2 Forms

In a relief to several assessees who missed the statutory deadline, the Supreme Court has directed the Goods and Services Tax Network (GSTN) to allow a 2-month additional window from September 1, 2022 to October 31, 2022 for claiming Transitional Credit.TRAN-1 and TRAN-forms were brought to allow assessees to carry forward pre-GST credits to the GST system. As per the GST Rules, such claims had to be filed within 90 days from the date when the GST Act came into force (July 1, 2017)....

Inapplicability Of MOOWR Scheme On Solar Power Generating Units: Delhi High Court Stays SCN Seeking To Revoke MOOWR License

The Delhi High Court bench of Justice Rajiv Shakdher and Justice Vitasta Ganju has stayed the show cause notice issued by the commissioner to revoke the licence under the Manufacturing and Other Operations in Warehouse (no. 2) Regulations, 2019 (MOOWR). The MOOWR Scheme grants a benefit of duty deferment without any interest on capital goods and inputs imported by a person holding a licence under Section 65 of the Customs Act, 1962 for undertaking manufacturing or other operations in a...

Inspection Report Does Not Fulfil The Ingredients Of Proper Show-Cause Notice: Jharkhand High Court

The Jharkhand High Court has held that the inspection report does not fulfil the ingredients of a proper show-cause notice; it amounts to a violation of principles of natural justice.The division bench of Justice Aparesh Kumar Singh and Justice Deepak Roshan has observed that the adjudication order is null and void in the eye of the law if it is passed without the issuance of proper show-cause notice. On 11.1.2020, by the order of the Joint Commissioner of State Tax, an inspection was...

Tax payment Software Has To Be Tailor-Made According To The Legal Rights Of The Taxpayers: Delhi High Court

The Delhi High Court has held that the tax payment software has to be tailor-made according to the needs, aspirations, and legal rights of the taxpayers and not that the taxpayers' legal rights have to be tailor-made in accordance with the software being used by the Tax Department. The division bench of Justice Manmohan and Justice Manmeet Pritam Singh Arora has held that as the petitioners have paid the taxes, they should be given credit for the challans paid on Form 3 under the Direct...

Finance Ministry Confirms That Some States Have Sought Extension Of GST Compensation For A Further Period Of Five Years.

The Finance Ministry has confirmed that some states have sought extension of GST compensation for a further period of five years. As per section 18 of the Constitution (One Hundred and First Amendment) Act, 2016, Parliament shall, on the recommendation of the GST Council, provide for compensation to the States for loss of revenue arising on account of the GST for a period of five years. The Union Minister of State for Finance, Shri Pankaj Chaudhary, has given a written reply to a...

GST Demand On Events Posted On Facebook: Andhra Pradesh High Court Directs Company To Approach Appellate Authority

The Andhra Pradesh High Court, while considering a petition challenging GST demand based on events posted on social media, held that information available on the social media platform of the petitioner shows that the event was conducted. The division bench of Justice C. Praveen Kumar and Justice Tarlada Rajasekhar Rao dismissed the petition by giving liberty to the petitioner to approach the Appellate Authority. The petitioner is in the business of event management. It is said that...

CBIC Authorises Principal Director General/ Director General Of DGARM For Withholding Of IGST Refund For Verification Purposes

The Central Board of Indirect Taxes and Customs (CBIC) has authorised the Principal Director General/Director General of the Directorate General of Analytics and Risk Management (DGARM) to withhold the refund of integrated tax paid on goods or services exported out of India. "In exercise of powers conferred by clause (c) of sub-rule (4) of rule 96 of the Central Goods and Services Tax Rules, 2017 (hereinafter referred to as the CGST Rules), the Board, hereby authorises the Principal ...

Tax Cases Weekly Round-Up: 17 July To 23 July, 2022

Delhi High Court Inapplicability Of MOOWR Scheme On Solar Power Generating Units: Delhi High Court Says No Coercive Action Case Title: ACME Heergarh Powertech Private Limited vs. Central Board of Indirect Taxes and Customs and Anr. The Delhi High Court bench of Justice Rajiv Shakdher and Justice Tara Vitasta Ganju issued notice and restrained the customs officer from taking any coercive action against the petitioners assailing the legality of Board Instruction No. 13/2022 dated...

CBIC Clarifies On Concessional BCD Rate On Import Of Parts Used In Manufacturing LCD/LED TV Panels

The Central Board of Indirect Taxes and Customs (CBIC) has issued a clarification on the concessional Basic Custom Duty (BCD) rate on parts used in the manufacturing of Liquid Crystal Device (LCD) and Light Emitting Diode (LED) TV panels. S. Nos. 515A and 515B of notification No. 50/2017-Customs dated June 30, 2017 provides for a concessional BCD rate of 5% for specified parts and subparts of LCD and LED TV panels. According to representations received by the Board, the terms in the...

No Section 40(a)(ia) Disallowance In Case Of Short Deduction Of TDS: Delhi High Court

The Delhi High Court has held that no disallowance under Section 40 (a)(ia) of the Income Tax Act is called for in the case of a short deduction of TDS and the correct course of action would have been to invoke Section 201 of the Income Tax Act. The division bench of Justice Manmohan and Justice Manmeet Pritam Singh Arora has observed that disallowance under section 40A(2)(b) has to be based on cogent material or reasoning by the Assessing Officer. The appellant/department has...

Explanation To Section 14A Of Income Tax Act Will Not Apply Retrospectively: Delhi High Court

The Delhi High Court has ruled that the Explanation to Section 14A of the Income Tax Act, 1961, added vide the Finance Act, 2022, cannot be presumed to be retrospective in nature since it is clarificatory in nature and alters the law as it stood earlier. The Division Bench of Justices Manmohan and Manmeet Pritam Singh Arora held that in view of the law laid down by the Supreme Court in Sedco Forex International Drill. Inc. versus CIT (2005), the amendment to Section 14A, which is "for ...

Karnataka High Court Quashes CBIC Circular Imposing GST On Annuity Payments Awarded By Highway Authorities To concessionaires

The Karnataka High Court has quashed the circular issued by the Central Board of Indirect and Customs (CBIC) clarifying that GST is not exempt on the annuity (deferred payments) paid for the construction of roads and allowed the Writ Petition filed by the petitioner. The single bench of Justice M.I. Arun observed that a circular which clarifies the notification cannot have the effect of overruling the notification. The petitioners are concessionaires who have been entrusted with the...