Madhya Pradesh High Court Directs Department To Issue Fresh Reassessment Order For Not Considering Reply

The Madhya Pradesh High Court bench of Justice Sujoy Paul and Justice Prakash Chandra Gupta has held that the reassessment order was passed without considering the reply to the show cause notice and directed the department to pass a fresh order. The petitioner/assessee claimed that after receiving a notice under Section 148A(b) of the Income Tax Act, he filed a reply on March 15, 2022, but the reply was not considered by the respondent/department. The department submitted that...

Madras High Court Allows Re-Exportation Of Betelnut Products Subject To Execution Of A Bond To Cover Value Of Goods

The Madras High Court bench of Justice S.S. Sundar and Justice S.Srimathy has allowed the re-exportation of betelnut products subject to the execution of a bond to cover the value of the goods. The respondent/assessee imported betelnut products with a particular description. The department stated that the assessee had imported goods by mistake. The appellants sought to levy duty by classifying the goods under Chapter VIII. However, the assessee, stating that he cannot afford to pay tax...

No Excise Duty On Ethanol Blended Petrol: CBIC

The Central Board of Indirect Taxes and Customs (CBIC) has notified that no excise duty is leviable on ethanol blended petrol. The government is empowered under sub-section (1) of section 5A of the Central Excise Act, 1944, amended the notification No. 11/2017-Central Excise, dated the 30th June, 2017. The CBIC has notified that no excise duty is leviable on 12% ethanol blended petrol that is a blend. The ethanol blended petrol consists, by volume, of 88% motor spirit (petrol), on...

Limitation Period Is Not Applicable On Personal Ledger Account: CESTAT

The Ahmedabad Bench of the Customs, Excise and Service Tax Appellate Tribunal (CESTAT) has held that the limitation period is not applicable on personal ledger accounts (PLA). The bench of Ramesh Nair (Judicial Member) has observed that in the case of PLA balance, it is not deposited as a duty but it is deposited as an advance towards the duty. The PLA amount takes the colour of excise duty only when it is utilised for payment of duty on clearance of excisable goods. The unspent balance...

Licit Possession Of Confisticated Gold Bars Received By Way Of Succession: CESTAT Set Aside Penalty

The Delhi Bench of Customs, Excise and Service Tax Appellate Tribunal (CESTAT) has set aside the penalty under section 114AA of the Customs Act on the ground of licit possession of confisticated gold bars received by way of succession. The two-member bench of Anil Choudhary (Judicial Member) and Raju (Technical Member) has observed that the appellant has reasonably explained the licit possession of the two gold bars, as received by way of succession under the will of his father. But...

DGFT Exempts IGST And Compensation Cess Under Advance Authorisation, EPCG And EOU Scheme

The Directorate General of Foreign Trade (DGFT) has exempted Integrated Goods And Service Tax (IGST) and Compensation Cess under Advance Authorisation, Export Promotion Capital Goods (EPCG) Scheme and Export Oriented Units (EOU) Scheme.The government empowered under Section 5 of the FT (D&R) Act 1992, read with Paragraph 1.02 of the Foreign Trade Policy, 2015–2020, has amended the Foreign Trade Policy, 2015–2020. The Integrated Tax and Compensation Cess under Advance Authorization...

Imparting Skill Development Is Akin To Providing Education, Eligible For Section 12AA Registration: ITAT

The Delhi Bench of the Income Tax Appellate Tribunal (ITAT) consisting of Yogesh Kumar U.S. (Judicial Member) and B.R.R. Kumar (Accountant Member) has held that the assessee is eligible for registration under section 12AA of the Income Tax Act for imparting skill development, which is akin to providing education. The appellant/assessee, C.R. Dadhich Memorial Society was established under the Haryana Registration and Regulation of Societies Act, 2012 on 02.03.2016. The objective of the...

GST Circular Contra To GST Act, Can't Deny The Claim For ITC refund; Rajasthan High Court

The Rajasthan High Court has held that the GST circular dated 31.03.2020, repugnant to the parent legislation, cannot be applied to oust the legitimate claim for an accumulated ITC refund. The division bench of Justice Sandeep Mehta and Justice Vinod Kumar Bharwani has observed that the supplying dealer would be entitled to claim a refund of accumulated unutilised tax credit under Section 54 (3) (ii) of the CGST Act irrespective of the fact that the input and output supplies are the...

Rajasthan High Court Grants Bail To Person Accused Of GST Evasion

The Rajasthan High Court bench of Justice Narendra Singh Dhaddha has granted bail to the person accused of GST evasion of Rs. 8.64 crore. The petitioner has filed a bail application. The petitioner was charged with the offence punishable under Section 132 (1) of the Central Goods and Services Tax Act, 2017. The petitioner submitted that he had been falsely implicated in the case. He has been behind bars since May 26, 2002. The offence against the petitioner is compoundable and he had...

Non-Submission Of Certified Copy of GST Order Appealed Against Within 7 Days Is A Mere Technical Defect: Orissa High Court

The Orissa High Court has held that the non-submission of a certified copy of the GST order appealed against within 7 days is a mere technical defect. The division bench of Justice Krushna Ram Mohapatra and Justice Murahari Shri Raman has observed that on the altar of default in compliance of a procedural requirement, the merit of the matter on appeal cannot be sacrificed. "Since the petitioner has enclosed the copy of the impugned order as made available to it in the GST portal...

No Demand Of GST, Interest And Penalty Can Be Made In Form DRC-01A Without Issuance of Section 74(1) Notice: Madras High Court

While quashing the assessment order, the Madras High Court held that a demand for GST, interest, and penalty on Form DRC-01A cannot be made without the issuance of a notice under Section 74(1) of the CGST Act. The single bench of Justice M.Nirmal Kumar has observed that the department/respondent has not followed the procedure. After the issuance of notice on Form DRC-01A, the department issued Form GST DRC-01A. If the petitioner has any objections and has not paid the tax as determined,...

Voluntary Statement Made Before The Revenue Authorities Cannot Substitute A Statutory Pre-Show Cause Consultation Notice: Delhi High Court

The Delhi High Court has reiterated that a voluntary statement made before the revenue authorities cannot substitute a statutory pre-show cause consultation notice, as contemplated under Rule 142(1A) of the CGST Rules, 2017, as it stood before 15.10.2020. The Division Bench of Justices Rajiv Shakdher and Tara Vitasta Ganju dismissed the contentions of the revenue department that because the petitioner's authorized representative gave a voluntary statement before the concerned officer,...