No Suppression Of Facts, Show Cause Notice Based On Balance Sheet: Karnataka High Court

The Karnataka High Court bench of Justice P.S. Dinesh Kumar and Justice Anant Ramanath Hedge has held that the assessee is not liable for the suppression of facts as the show cause notice was issued on the basis of the disclosures made in the balance sheet.The respondent/assessee is in the business of manufacturing and clearing turbochargers, electric motors, transformers, etc. falling under Chapter 85 of the Central Excise Tariff Act, 1985 (CETA). The assessee has been providing taxable...

Tax Cases Weekly Round-Up:26 June To 2 July, 2022

High Courts: Madras High Court: IBC Proceedings Can't Dilute Rights Of The Income Tax Department To Reopen Assessment: Madras High Court Case Title: M/s. Dishnet Wireless Limited versus the Assistant Commissioner of Income Tax (OSD) The Madras High Court has ruled that proceedings under the Insolvency and Bankruptcy Code (IBC), 2016 cannot dilute the rights of the Income Tax Department to reopen the assessment under Section 148 of the Income Tax Act, 1961. The Court noted...

Officers Of DGGI Are "Central Excise Officers"; Can Issue Show Cause Notices And Adjudicate Service Tax Demand: Madras High Court

The Madras High Court has ruled that officers of the Directorate General of GST Intelligence (DGGI) are "Central Excise Officers" for the purpose of Rule 3 of the Service Tax Rules, 1994 since they are vested with the powers of Central Excise Officers by the Central Board of Excise and Customs (CBEC). The Single Bench of Justice C. Saravanan, while considering a bunch of writ petitions, held that that the definition of "Central Excise Officer" in Section 2(b) of Central Excise Act, 1944...

Tax Cases Monthly Round-Up: June 2022

Direct Tax: Delhi High Court: Underreporting Of Income Due To Re-Computation Of Disallowance By The AO, Does Not Amount To Misreporting Of Income: Delhi High Court Case Title: Prem Brothers Infrastructure LLP. versus National Faceless Assessment Centre & Anr. Citation: 2022 LiveLaw (Del) 568 The Delhi High Court has ruled that where the underreporting of income allegedly done by the assessee is due to the re-computation of the disallowance under Section 14A of the Income...

Extended Period Of Limitation Can Be Invoked Only When "Suppression Of Facts" Is Wilful To Evade Tax :CESTAT

The Allahabad Bench of the Customs, Excise and Service Tax Appellate Tribunal (CESTAT) has held that even when an assessee has suppressed facts, the extended period of limitation can be evoked only when "suppression" is shown to be wilful with intent to evade the payment of service tax. The two-member bench headed by Justice Dilip Gupta (President) and Raju (Technical Member) has observed that the show cause notice merely mentions that the appellant suppressed the value of taxable...

Fee Paid For Client Referral Services Is A Normal Business Payment And Not FTS: ITAT Delhi

The Delhi Bench of ITAT has ruled that fees paid by the assesssee to a non-resident for providing services of introduction of clients would fall in the definition of payments made to an intermediary and the same cannot be said to be a technical service. The Bench, consisting of Anubhav Sharma (Judicial Member) and Shamim Yahya (Accountant Member), held that the remittances made by the assessee to its intermediary for providing client referral services would not come within the scope of...

Empty Packaging Material Of Cenvatable Input Is Not Liable For Payment As Excise Duty Or As CENVAT Credit: Reiterates Ahmedabad CESTAT

The Ahmedabad Bench of CESTAT has ruled that empty packaging material of cenvatable input is not liable for payment either as excise duty or as CENVAT credit under Rule 6(3) of the CENVAT Credit Rules, 2004. The Single Bench of Judicial Member Ramesh Nair held that the assessee was not liable to pay any amount on the clearance of the said empty drums. The revenue authorities had passed an order against the assessee Cadila Healthcare Ltd. that in terms of Rule 6(3) of the...

Haryana Electric Vehicle (EV) Policy, 2022; Several Incentives For Manufacturers And Buyers

The Haryana Government has approved the Haryana Electric Vehicle (EV) Policy, 2022, declaring 2022 as the "Year of the Electric Vehicles" in Haryana. "The EV Policy aims to protect the environment, reduce carbon footprint, make Haryana an EV manufacturing hub, ensure skill development in EV field, encourage uptake of EV vehicles, provide EV charging infrastructure and encourage R&D in EV technology", the Haryana government in a press release issued on 27th June said. The policy...

IBC Proceedings Can't Dilute Rights Of The Income Tax Department To Reopen Assessment: Madras High Court

The Madras High Court has ruled that proceedings under the Insolvency and Bankruptcy Code (IBC), 2016 cannot dilute the rights of the Income Tax Department to reopen the assessment under Section 148 of the Income Tax Act, 1961. The Court noted that the Resolution Plan submitted by the assessee did not contemplate any concession from the Income Tax Department, even though notice under Section 148 of the Income Tax Act was issued to the assessee prior to the submission of the Resolution...

Key Highlights Of The Recommendations Made By The GST Council In Its 47th Meeting

The GST Council, in its 47th Meeting held on the 28th and 29th of June, 2022, has made certain recommendations relating to changes in the GST rate. Certain changes were also recommended relating to the GST law and procedure. GST on supply of printing, writing or drawing ink, knives, and power- driven pumps, including deep tube-well turbine pumps and bicycle pumps, is recommended to be increased from 12% to 18%. The supply of cleaning machines as well as machines used in the milling ...

GST Council Constitutes GoM For GST Appellate Tribunal; Supreme Court Had Directed The Centre That A Tribunal Must Be There

The GST Council, in its 47th Meeting held on the 28th and 29th of June, 2022, has decided to constitute a Group of Ministers (GoM) to address the concerns raised by the States relating to the constitution of the GST Appellate Tribunal as well as for recommending appropriate amendments to the CGST Act, 2017. The Supreme Court, in a PIL filed in 2021 by Advocate Amit Sahni, seeking constitution of the GST Appellate Tribunal, had directed the Central Government that an Appellate Tribunal has...

Appointment Committee Approves The Appointment of Nitin Gupta As CBDT Chairman

The Appointment Committee of the Cabinet has approved the appointment of IRS Officer Nitin Gupta as the chairperson of the Central Board of Direct Taxes (CBDT). "The Appointments Committee of the Cabinet has approved the appointment of Shri Nitin Gupta, IRS (IT:86), Member, Central Board of Direct Taxes (CBDT) as Chairman, Central Board of Direct Taxes (CBDT) from the date of assumption of charge of the post," the notification read. Nitin Gupta, a 1984 batch officer, is currently a...