Offices Not To Issue Reassessment Notices To Small Taxpayers, Instructs CBDT

In the light of the Supreme Court's judgement saving 9000 reassessment cases, the Central Board of Direct Taxes (CBDT) has issued instructions directing the officer not to issue reassessment notices to small taxpayers if the income escaping assessment, in that case for that year, amounts to or is likely to amount to less than Rs. 50 lakhs. The CBDT has directed that information and materials be provided in all cases within 30 days. However, it has also been noticed that notices cannot...

Bonafide Mistake In Selection Of Wrong ODC Vehicle Type While Generating E-Way Bill: Gujarat High Court Quashes Detention Order

The Gujarat High Court has quashed the detention order as there was a bonafide mistake in the selection of the wrong ODC vehicle type while generating the e-way bill.The division bench of Justice J.B. Pardiwala (as then was) and Justice Nisha M. Thakore observed that the goods were in transit with all the necessary documents, including the E-way bill generated from the GST portal. The goods were moved by a truck whose registration number was also correct. The only mistake in this case...

Sufficiency Of The Correctness Of Material Is Not To Be Considered While Issuing Reassessment Notice: Delhi High Court

The Delhi High Court held that the court was only required to see whether there was prima facie some material on the basis of which the department could reopen the assessment. The sufficiency of the correctness of the material cannot be considered while issuing the reassessment notice. The division bench of Justice Manmohan and Justice Dinesh Kumar Sharma observed that the courts should exercise their writ jurisdiction very sparingly if there is an "alternative efficacious remedy." The...

Telangana Govt. Notifies One-Time Settlement Scheme For Pending Tax Cases

The Telangana government has introduced the Telangana State One-Time Settlement Scheme 2022 to realise the locked up revenue. As per the Commissioner of Commercial Taxes, Telangana, Hyderabad, there is an arrear amount of around Rs. 3000 crores pending in various stages of litigation and that the amount is not readily recoverable. The state government has introduced a One-Time Settlement Scheme to settle disputed taxes under legacy Acts such as the Andhra Pradesh General Sales Tax...

GSTN Issues Advisory On Reporting 6% Rate In GSTR-1

The Goods and Service Tax Network (GSTN) has issued an advisory on reporting 6% rate in GSTR-1.On some commodities, a new 6% IGST or 3% CGST, and 3% SGST tax rate has been implemented. The GST interface is being updated to accommodate a 6% rate in GSTR-1. As a temporary measure, taxpayers who have to report goods at this rate may do so by reporting the entries in the 5% heading and then manually increasing the system computed tax amount to 6%. This can be done by entering the value in...

Subscription Money Received In Advance By DTH Operators Is Taxable Only When Services Are Provided To The Subscribers: Chennai ITAT

The Chennai Bench of ITAT has ruled that subscription money received in advance by the DTH operators is not taxable. The Bench, consisting of members V. Durga Rao (Judicial Member) and Manoj Kumar Aggarwal (Accountant Member), held that the subscription money received by DTH operators is taxable only when the said amount is accrued to them, i.e., when the services are rendered by the DTH operators to the subscribers. The assessee M/s Sun Direct TV Pvt Ltd is a 'Direct To Home' (DTH)...

Transition Of ITC cannot Be Denied Merely For Technical Difficulties: Madras High Court

The Madras High Court held that in case the department is unable to permit the filing of TRAN-1 belatedly, they have to credit the corresponding amount in the electronic cash register provided that the credit remained unutilized on the cut-off date.The single judge bench of Justice C. Saravanan observed that since the input tax credit is equivalent to cash meant to be used for discharging the tax liability, the transition of the input tax credit cannot be restricted or denied merely...

KVAT Registration Once Cancelled Has To Be Published In Two Leading Daily Newspapers: Kerala High Court

The Kerala High Court ruled that once a Kerala Value Added Tax (KVAT) registration is cancelled, it must be published in at least two major daily newspapers, and the dealer must be notified in accordance with Form No.5 B.Then only will the cancellation of registration be effective.The division bench of Justice S.V. Bhatt and Justice Basant Balaji observed that as per Rule 19 of KVAT Rules, the application was filed on 20.2.2014. The registering authority, after cancelling the registration,...

CESTAT Allows Refund Of CENVAT Credits On Service Tax Paid During GST Regime Under Reverse Charge Mechanism On Import Of Services

The Mumbai Bench of the Customs, Excise and Service Tax Appellate Tribunal (CESTAT) consisting of Dr. Suvendu Kumar Pati (Judicial Member) allowed the refund of CENVAT credits against payment of Service Tax paid during the GST regime under the Reverse Charge Mechanism on the import of services.The appellant/assessee was required to pay service tax under the Reverse Charge Mechanism in terms of the provisions of Section 68 (2) of the Finance Act, 1994 read with Notification No. 30/2012-ST...

Compensation Paid By Employee To Employer For Resigning From Service Without Giving Requisite Notice Is Not A Taxable Service: CESTAT

The Bangalore Bench of Customs, Excise and Service Tax Appellate Tribunal (CESTAT) consisting of S.K. Mohanty (Judicial Member) and P.Anjani Kumar (Technical Member) has held that any compensation paid by the employee to the employer for resigning from the service without giving the requisite notice, would not be termed as consideration for the contract of employment and would not fall within the preview of taxable service. The appellants/assessee collected an amount as 'Notice Period...

Liquidated Damages Does Not Attract Service Tax: CESTAT Hyderabad

The Hyderabad Bench of the Customs, Excise and Service Tax Appellate Tribunal (CESTAT) has ruled that receipt of liquidated damages by the service provider for breach of conditions under an agreement to provide services would not attract Service Tax. The Bench, consisting of members P.K. Choudhary (Judicial Member) and P.V. Subba Rao (Technical Member), held that claim for penalty/liquidated damages does not emanate from any obligation on the part of the service provider to 'tolerate an...

No Conflict Between Power To Levy GST And Power Of Municipal Corporation To Levy Advertisement Fee Or Advertisement Tax: Karnataka High Court

The Karnataka High Court bench of Justice Suraj Govindraj held that there is no conflict between the power to levy GST under the GST Act and the power of a municipal corporation to levy an advertisement fee or advertisement tax under Section 134 of the Karnataka Municipal Corporations Act.The petitioner, Hubballi Dharwad Advertisers Association, is a registered association of advertising agencies who are in the business of advertising on the advertisement hoardings licenced by the...