Galvanised Solar Structure Manufactured And Cleared For Initial Setting Up Of Solar Power Plants Exempted From Excise Duty: CESTAT

The Delhi Bench of the Customs, Excise and Service Tax Appellate Tribunal (CESTAT) has held that galvanised solar structures manufactured and cleared for the initial setting up of solar power plants are exempted from excise duty.During an audit, the department noticed that the clearance of galvanised solar structures (module mounting structures and hot dip galvanised structures) falling under Central Excise Tariff Heading 5 7308 2019 was being done by availing the benefit of the exemption...

Rajasthan High Court Refuses To Grant Priority of Government Dues Over Debts Due To Secured Creditors

The Rajasthan High Court bench of Justice Ashok Kumar Gaur has refused to grant the priority of the government dues over the debts due to secured creditors.The petitioner/department has pleaded that the company M/s. Punsumi India Ltd. is under liquidation and the Officer Liquidator (OL) had invited claims with regard to outstanding dues against the company. The department had sent its claim via communication and the OL communicated that the claim was not in the prescribed format and the...

Applicability of GST On Royalty On Mining: Allahabad High Court Directs Assessee To Reply To SCN

The Allahabad High Court bench of Justice Devendra Kumar Upadhyaya and Justice Brij Raj Singh, while dealing with the issue of the applicability of GST on royalties on mining, has directed the assessee to reply to the show cause notice issued by the department.The petitioner/assessee is in the business of mining sand from the sites licenced to them by the government and is also engaged in the trading of sand. The petitioner has been issued a Demand-cum-Show Cause Notice alleging...

Incomplete GSTR-2B: GSTN Issues Advisory

The Goods and Service Tax Network has issued the advisory on the issues arising from incomplete GSTR-2B. The GSTN noticed that in a few cases, certain records are not reflected in the GSTR-2B statement for the period of April 2022. However, such records are visible in GSTR-2A of such recipients. The GSTN has stated that the technical team is working to resolve the issue for the impacted taxpayers and generate fresh GSTR-2B at the earliest. "In the interim, affected taxpayers...

Prohibition Of Wheat Export: DGFT Directs Regional Authorities To Issue Registration Of Contracts To Wheat Exporters

The Directorate General of Foreign Trade (DGFT) has issued directions for the export of wheat for the implementation of the notification prohibiting the export of wheat under the Foreign Trade Policy, 2015-2020 (FTP).The DGFT has directed the regional authorities to issue registration of contracts (RCs) to the wheat exporters who have irrevocable letters of credit, so that they can honour their contracts. The Notification No.06/2015-2020 dated May 13, 2022 amended the export policy of...

Time Of 8 Hours To File Reply To Show Cause Notice, Not Reasonable: Delhi High Court

The Delhi High Court bench of Justice Manmohan and Justice Dinesh Kumar Sharma has held that the time of eight hours to file a reply to the show cause notice was neither reasonable nor effective. The assessee could not have provided relevant information and documents to establish his case in such a short period of time. The petitioner/assessee submitted that the reasonable time was not given to file a reply to the show cause notice, which was issued only on March 30th, 2022 at 16:21...

Applicability Of GST On Royalty Paid For Mining Limestone: Meghalaya High Court Stays GST Recovery

The Meghalaya High Court bench headed by Chief Justice Sanjib Banerjee and Justice W. Diengdoh has stayed the recovery of GST on royalty paid for mining limestone. The issue raised was in respect of the applicability of goods and services tax on royalty paid for mining limestone in the State. The petitioner/assessee agreed that the larger issue as to whether tax had to be paid on mining royalty was pending before the Supreme Court. The petitioner has relied on an order dated...

Compensation Received For Cancellation Of Coal Blocks Under Supreme Court Order, Not Liable To Pay Service Tax: Kolkata CESTAT

The Kolkata Bench of Customs, Excise and Service Tax Appellate Tribunal (CESTAT) has ruled that compensation received under a statute for cancellation of coal blocks/mines vide an order of the Supreme Court, cannot be considered as a taxable service of tolerating a situation and is thus not exigible to Service Tax. The Bench, consisting of members P.K. Choudhary (Judicial Member) and P.V. Subba Rao, (Technical Member), held that the question of tolerating something and receiving a...

SCN Issued By DRI Was Without Authority of Law: Chhattisgarh HC Stays Proceedings

The Chhattisgarh High Court bench of Justice Parth Prateem Sahu has quashed the show cause notice which was issued by the DRI and stayed the proceedings.The petitioner/assessee submitted that pursuant to the arrest made by DRI of two persons at Railway Station-Raipur. The DRI searched the house of the petitioner on the same date and seized gold bars, silver ingots, fine silver, and cash amounts also amounting to Rs. 32 lakhs. The petitioner has challenged the seizure proceedings...

Commission Paid To Persons Who Are Not Beneficial To Business Of Assessee Is Taxable : Orissa High Court

The Orissa High Court has dismissed a challenge against an order of the Income Tax Appellate Tribunal, Cuttack (ITAT) which disallowed commission expenses as claimed by the appellant. It held that the appellant was not able to prove the expertise of persons to help him in business to whom the said commission was paid. Denying the arguments of the appellant, a Division Bench of Chief Justice Dr. S. Muralidhar and Justice Radha Krishna Pattanaik observed, "Nevertheless, claiming that...

Tax Cases Weekly Round-Up: 8 May To 14 May, 2022

Delhi High Court Bail Amount Can Be Paid By Cash Ledger, Debit Ledger Of ITC:Delhi High Court Refuses To Cancel Bail Of A Person Accused of FraudulentlyAvailing ITC Case Title: Amit Gupta Vs Directorate General of GST Intelligence Headquarters Citation: 2022 LiveLaw (Del) 426 The Delhi High Court bench of Justice Mukta Gupta has ruled that the bail amount can be paid by cash ledger and debit ledger of the Input Tax Credit (ITC). Sufficiency Of The Correctness Of Material Is...

Reassessment Order Passed Without Issuance of Section 148 Notice Is Not Valid: Calcutta High Court

The Calcutta High Court bench of Justice Md. Nizamuddin has ruled that the reassessment order passed without issuance of notice under Section 148 of the Income Tax Act is not valid. The petitioner/assessee challenged the assessment order on the ground that it was passed without serving any notice under Section 148 of the Income Tax Act, 1961 which is a condition precedent for initiating proceedings under Section 147 of the Act. The petitioner after getting the assessment order has...