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...

Bail Amount Can Be Paid By Cash Ledger, Debit Ledger Of ITC: Delhi High Court Refuses To Cancel Bail Of A Person Accused of Fraudulently Availing ITC

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). It has been alleged by the department that the petitioner is one of the directors/key persons in M/s Brilliant Metals Pvt. Ltd., M/s Progressive Alloys India Pvt. Ltd. and M/s JBN Impex Pvt. Ltd. and allegedly the mastermind behind devising a mechanism of availing ITC on the strength of bills of various suppliers which were...

Foreign Origin Gold Bar With Unexplained Source Is Liable For Absolute Confiscation As It amounts To Importation Of Prohibited Goods: CESTAT

The Chennai Bench of the Customs, Excise and Service Tax Appellate Tribunal (CESTAT) consisting of P.Dinesha (Judicial Member), while remanding the matter back, held that the gold bar with a foreign marking, the source of which is not explained, is liable for absolute confiscation since the same would amount to the importation of a prohibited good. A specific intelligence was gathered that foreign-origin gold was being smuggled into India by way of concealment, cleared through Anna ...

Weekly Round Up Of Tax Cases : 1 May To 7 May, 2022

Supreme CourtSupreme Court Saves Over 90,000 Income Tax Reassessment NoticesIssued After 2021 Amendment By Deeming Them As Notices Under Section 148A Case Title: Union of India v. Ashish Agarwal Citation : 2022 LiveLaw (SC) 444 The Supreme Court, on Wednesday, directed that reassessment notices under Section 148 of the unamended Income Tax Act which were issued beyond 01.04.2021 (the effective date of amendment of the said provision by the Finance Act, 2021) to be deemed to have...

GST Refund To Be Granted To The Entity Who Borne The Tax Burden: Gujarat High Court Allows GST Refund To Service Recipient

The Gujarat High Court bench of Justice J.B.Pardiwala and Justice Nisha M.Thakore has held that, as per Section 54 of the CGST Act, a claim of refund may be made directly by the recipient if he has borne the burden of tax.The writ applicant is a practising advocate in the High Court. The writ applicant entered into an agreement with the respondent, Navratna Organisers & Developers Pvt. Ltd., for the purchase of a plot. The agreement encompassed the construction of a bungalow on the...

Composite Supply Of Hospital Construction Works For Govt Entity Attracts 18% GST: Maharashtra AAR

The Maharashtra Authority of Advance Ruling (AAR), consisting of members Rajiv Magoo and T.R. Ramnani, has ruled that 18% GST is payable on the composite supply of hospital construction works for government entities. The Uttar Pradesh Rajkiya Nirman Nigam Ltd. (UPRNN), a Government of Uttar Pradesh Undertaking, has floated online global open e-tenders for the construction of a 200-bed ESI Hospital at Butibori, Nagpur, Maharashtra for which, M/s. KPC Projects Ltd. The applicant was...

Form GST DRC-16 Merely Attaches Immovable Properties & Not Bank Account: Madras High Court Refuses To Quash Attachment Notice

The Madras High Court bench of Justice C. Saravanan has held that form GST DRC-16 merely attaches immovable properties. There was no attachment to any bank accounts. The assessee appeared to be interested in dragging on the proceeding, though it appeared to be in arrears of huge amounts of tax. The petitioner/assessee had earlier filed writ petitions challenging the order passed by the department for the assessment years 2017-2018, 2018-2019, and 2019-2020. After discussing the case on...

Prosecution By Revenue Department Malicious And Patently Malafide, Madras High Court Quashes Complaint

The Madras High Court has quashed the complaints filed by the income tax department against the assessee for wilfully attempting to evade payment of tax under Section 276 C (2) of Income Tax Act, 1961 on the ground of malicious prosecution, non-application of mind and abuse of power. The Single Bench of Dr. Justice G. Jayachandran ruled that to invoke the deeming provision of Section 140A (3) to hold the assessee as an assessee in default, there should be a default in payment of tax in...

Bombay High Court Directs Assessee To Pay Rs.25,000 to Assessing Officer As The Stay Order Was Not Proactively Communicated

The Bombay High Court bench of Justice K.R.Shriram and Justice N.R.Borkar held that the petitioner should have been proactive and promptly communicated the stay granted by the Court to the Assessing Officer so that he would have had enough time to make enquiries with his advocate and also check on the website about orders passed. The Assessing Officer, G.S. Naveen Kumar, filed an Affidavit in compliance with this Court's directions. The Order came to be passed because the...

Reassessment Order Not Valid If Notice By Assessing Authority Is Without Jurisdiction: Allahabad High Court

The Allahabad High Court bench of Justice Surya Prakash Kesarwani and Justice Jayant Banerji has ruled that once the notice under Section 148 of the Income Tax Act, 1961, issued by the assessing authority was declared without jurisdiction, the subsequent proceedings, including the re-assessment order, cannot be sustained. The petitioner/assessee submitted an objection to the "reason to believe" recorded by the assessing authority. In his objection, the petitioner has specifically stated...

No Excuse For Not Paying GST In Time From Its Electronic Cash Register: Madras High Court Upholds Interest Demand

The Madras High Court bench of Justice C. Saravanan held that the taxpayer is liable to pay interest if there is a belated payment of tax declared in the returns filed. The petitioner was issued with a notice by which a sum of Rs. 6,58,233/- was demanded from the petitioner as interest payable under Section 50(1) of the CGST Act, 2017 read with Notification dated 28.06.2017. The petitioner was directed to pay the amount by 10.03.2020. The petitioner has challenged the demand notice. ...

Transfer Of Business Unit Shall Be Treated As A Supply Of Services: West Bengal AAR

The West Bengal Authority of Advance Ruling (AAR), consisting of members Brajesh Kumar Singh and Joyjit Banik, has ruled that the transfer of business units shall be treated as a supply of services. The applicant, Cosmic Ferro Alloys Limited, is in the business of manufacturing ferro alloys and cold rolled formed sections with its factories at Barjora (FERRO Unit) and Singur (CRF business) respectively. The entire operations of the applicant were segmented into two units, i.e., the...