No Service Tax Leviable On Toll Collection, Toll Collector Not A Commission Agent: CESTAT Mumbai

The Mumbai Bench of Customs, Excise and Service Tax Appellate Tribunal (CESTAT) has ruled that any amount retained by a toll collector while undertaking toll-collection activity does not attract service tax since the said activity does not constitute a service rendered by a commission agent and thus it does not fall within the purview of a 'business auxiliary service' under the erstwhile Section 65(19) of the Finance Act, 1994. The Bench, consisting of Justice Dilip Gupta (President) and...

CBIC Waives Late Fees For Delayed Filing Of GSTR-4 Till 30 June, 2022

The Central Board of Indirect Taxes and Customs (CBIC) has waived the late fees for delayed filing of GSTR-4 from May 1, 2022 till June 30, 2022. The CBIC, empowered under section 128 of the Central Goods and Services Tax Act, 2017 on the recommendations of the Council, amended notification No. 73/2017–Central Tax, dated the 29th of December, 2017. "Provided also that the late fee payable for delay in furnishing of FORM GSTR-4 for the Financial Year 2021-22 under section 47 of the...

ITC Transfer From One State To Another Is Not An Inward Supply: Orissa High Court

The Orissa High Court bench of Justice Jaswant Singh and Justice M.S. Raman has ruled that an input service distributor (ISD) can claim ITC only in the case of an inward supply, and an ITC transfer from one state to another is not an inward supply. The petitioner/assessee, JSW Steel, is a public limited company. The assessee is in the business of manufacturing and selling hot and cold rolled coils and sheets, galvanised coils and sheets, and plates. The assessee has been allotted GSTIN...

Constitutionality Of First Proviso To Section 148 Of Income Tax Act, Rajasthan High Court Issues Notice To Govt.

The Rajasthan High Court bench headed by Acting Chief Justice Manindra Mohan Shrivastava and Justice Sameer Jain has issued the notice to the government on a plea challenging the validity of the first proviso to section 148 of the Income Tax Act by granting arbitrary powers to the AO. The petitioner/assessee has filed this Writ Petition under Article 226 of the Constitution of India challenging the notice issued under clause (b) of Section 148A of the Income Tax Act, 1961. Firstly,...

Credit Notes Not Affecting Input Tax Can't Be Treated As Taxable Turnover: Kerala High Court

The Kerala High Court bench of Justice S.V. Bhatti, Bechu Kurian Thomas, and Justice Basant Balaji has held that credit notes not affecting input tax already deposited cannot be treated as taxable turnover by the extended meaning of Section 2 subsection (iii) Explanation VII of the Kerala Value Added Tax Act. The writ petitioner/assessee is a registered dealer under the Kerala Value Added Tax Act 2003. The petitioner is a trader in cement. As per the trade practice, the suppliers...

Alleged Coercion By GST Officers For Making 'Recovery' During Course Of Search: GST Investigation Wing Issues Instructions

The GST Investigation Wing has issued an instruction on the allegation of coercion by the GST officers for making "recovery" during the course of search.During the course of a search, the taxpayers may choose to deposit a portion or all of their GST liability stemming from a problem identified by the department during the search by submitting DRC-03. There have been reports of taxpayers alleging use of force and coercion by officials during the course of a search, examination, or ...

CA Allegedly Involved In Preparation Of Forged Certificates For Bogus Companies To Claim GST Refund: Gurugram Court Refuses Bail

The Gurugram Court has refused to grant bail to the CA who is accused of preparing forged certificates for bogus companies claiming GST refunds. The Bench of Manoj Kumar Rana (Additional Chief Judicial Magistrate) observed that the CA is involved in causing a loss to the government treasury to the tune of Rs.7,60,89,626/-. Thus, he has committed an offence under Section 132 (1) (i) read with 132(1) (b) (c) (e) (f) CGST Act 2017. CA has actively participated in the preparation of forged...

Taxpayers Have Independent Statutory Right To File A Reply To Show Cause Notice And Draft Assessment Order: Delhi High Court

The Delhi High Court bench of Justice Manmohan and Justice Manmeet Preetam Singh Arora, while directing the National Faceless Assessment Centre (NFAC) to pass the fresh assessment order, held that the taxpayers have an independent statutory right to file a reply to the show cause notice and draft assessment order. The Assessing Officer had extended the timeframe for filing objections to the show cause notice and draft assessment order dated April 22nd, 2021, from April 26th, 2021, to...

Sale Of Second Hand 'Paintings' Attracts 12% GST: Maharashtra AAR

The Maharashtra Authority of Advance Ruling (AAR) consisting of Rajiv Magoo and T.R. Ramnani has ruled that the 12% GST is payable on the sale of second-hand paintings. The applicant, M/s. Saffron Art Private Limited, is in the business of procuring paintings on an approval basis from unregistered and registered persons and selling them by auction to the highest bidder. The applicant displays the paintings on its website and conducts a sale by way of an online auction to the...

Air Circulation Fans Supplied To Poultry House For Providing Ventilation To Livestock Attracts 18% GST: Gujarat AAR

The Gujarat Authority of Advance Ruling (AAR)consisting of Arun Richard and Atul Mehta has ruled that the 18% GST is payable on air circulation fans supplied to poultry houses for the purpose of providing ventilation to livestock. The applicant, M/s. Star Enterprise is in the business of supplying air circulation fans mainly to poultry houses for the purpose of providing ventilation to livestock, and few fans are supplied to industry. The applicant has sought the advance ruling on the...

CESTAT Allows Cenvat Credit On Insurance Services

The Ahmedabad Customs, Excise and Service Tax Appellate Tribunal (CESTAT) consisting of Ramesh Nair (Judicial Member) has allowed the Cenvat credit on insurance services. The appellant/assessee has raised the issue of whether the appellant is entitled to Cenvat credit in respect of input services. Construction services; fee for architectural and structural works for factory plant building; group Medi-claim Insurance; group personal accident insurance; insurance; motor car or vehicle...

Haryana Govt. To Share Data Of Commercial Rent Or Lease Deed with Haryana Excise and Taxation Dept. To Curb GST Evasion

To combat GST avoidance, the Haryana government would exchange data on business rent or lease documents with the Haryana Excise and Taxation Department. Pranab Kishore Das, ACS and FCR, and Anurag Rastogi, ACS (E & T), met to discuss the subject of GST avoidance in the rental of immovable property other than those rented out for residential reasons. Any rental of immovable property, other than those rented for residential reasons, is subject to 18% GST under the GST Act. As a...