If Principles Of Natural Justice Are Violated, Writ Remedy Is Available Despite Statutory Appeal: Delhi High Court

The Delhi High Court has quashed an assessment order passed by the revenue department without issuing a prior show cause notice and draft assessment order to the assessee. The High Court has ruled that the assessment order was passed in violation of the principles of natural justice as well as the mandatory procedure prescribed under the "Faceless Assessment Scheme" under the Income Tax Act. The Bench, consisting of Justices Manmohan and Dinesh Kumar Sharma, held that when there is a...

CBIC Issues Revised Guidelines Of NRMC Or LRMC For Effective Implementation Of The Risk Management System In Customs And GST

The Central Board of Indirect Taxes and Customs (CBIC) has issued the revised guidelines for the National Risk Management Committee (NRMC) or Local Risk Management Committee (LRMC) for Customs and GST. The CBIC's Circulars dated 28.06.2007 and 24.11.2005 on the Risk Management System and Charter of Functions for the National Customs Targeting Centre (erstwhile Risk Management Division (2005-2017) and Risk Management Centre for Customs (2017-2020)) and the constitution of the ...

Denial Of Availment Of CENVAT Credit On Performa Invoices, Despite All Information, Is Absolutely Wrong: CESTAT

The Delhi Bench of the Customs, Excise and Service Tax Appellate Tribunal (CESTAT) consisting of Rachna Gupta (Judicial Member) held that the denial of availment of Cenvat Credit on performa invoices was absolutely wrong.The appellant/assessee is in the business of manufacturing zinc concentrate, lead concentrate, etc. and is also engaged in providing and receiving goods transport agency service, legal consultancy service, manpower supply service, rent-a-cab service, etc. During the course...

Initiation Of Adjudication Proceeding Without Issuance Of Show Cause Notice Is Void Ab Initio: Jharkhand High Court

The Jharkhand High Court bench of Justice Aparesh Kumar Singh and Justice Deepak Roshan has held that the initiation of an adjudication proceeding without the issuance of a show cause notice is void ab initio.The petitioner/assessee, a public limited company, is in the business of trading coal. For the purpose of trading in coal, the petitioner purchases coal primarily from various subsidiaries of Coal India Limited, including various government entities like Jharkhand State Mineral...

Bonafide Error In Format Of Date On E-Way Bill, Warrants Only Minor Penalty: Kerala High Court

The Kerala High Court bench of Justice Bechu Kurian Thomas has held that a minor penalty can be imposed for a bona fide mistake in the date on an e-way bill. The petitioner/assessee has a valid GST registration and carries on business in electrical contract work. In connection with the work of a hospital in Assam, some goods were transported by a vehicle after paying the required tax. During the course of transportation from Ernakulam, the goods were intercepted by the department, who...

Service Tax Not Payable On Liquidated Damages: CESTAT

The Delhi Bench of the Customs, Excise and Service Tax Appellate Tribunal (CESTAT) consisting of S.K. Mohanty (Judicial Member) and P.V. Subba Rao (Technical Member) has held that service tax is not payable on liquidated damages recovered on the failure to fulfil the contract.The appellants/assessees are public sector undertakings established by the Government of Madhya Pradesh for the distribution of electricity. Madhya Pradesh Poorva Kshetra Vidyut Vitran Co. Ltd. deals with the Eastern...

Exported Goods Cannot Be Confiscated Under Section 113 Of Customs Act: CESTAT Hyderabad

The Hyderabad Bench of Customs, Excise and Service Tax Appellate Tribunal (CESTAT) has ruled that Section 113 of the Customs Act only provides for confiscation of goods that are to be exported and not for goods which have already been exported. The Bench, consisting of P.K. Choudary (Judicial Member) and P. Venkata Subba Rao (Technical Member), held that the purpose of the Drugs and Cosmetics Act, 1940 is not to regulate exports, but only to regulate the import, manufacture, sale and...

Outright Rejection Of Stay Application Is Not Justified, Need To Exercise The Appellate And Revisional Jurisdiction Judicially:Telangana High Court

The Telangana High Court has held that the appellate and revisional authorities must judiciously exercise their discretionary power to grant a stay under the Telangana VAT Act.A division bench of Justice Ujjal Bhuyan and Justice Surepalli Nanda, while staying the demand in terms of the assessment order, directed the petitioner to deposit twelve and a half percent of the disputed tax within a period of 30 days. The petitioner/assessee was a registered dealer under the Telangana Value...

Assessee To Claim Refund of Tax Collected By State Without Authority Within 3 Years From The Date of Payment: Madras High Court

The Madras High Court bench of Justice R.Mahadevan and Justice Mohhammed Shaffiq has held that any tax collected without authority would certainly amount to unjust enrichment and the assessees must claim a refund of the tax collected or retained by the state within three years from the date of their payments to the department.The assessee has sought the order to quash the orders passed by the respective Assessing Officers as it relates to reversal of Input Tax Credit (ITC) under the...

Weekly Round-Up Of Tax Cases: 17 April to 23 April 2022

Supreme Court1.Plea In Supreme Court Challenges The Constitutional Validity Of Levy Of GST On Lease/ Rent Payments Case Title: Myrayash Hotels Pvt. Ltd. v. Union of India & Ors. The Supreme Court of India has asked the petitioner(s) to serve an advance copy to the Additional Solicitor General to seek instructions in a plea challenging constitutional validity of levy of GST on lease/ rent payments.2.Interest On Delayed Refunds Covered Under Principal Provision Of Section 56 Of CGST...

Clerical Mistake In Address On E-Way Bill: Madhya Pradesh High Court Imposes Minor Penalty

The Madhya Pradesh High Court bench of Justice Sheel Nagu and Justice Manindar Bhatti has held that a minor penalty can be imposed for a clerical mistake in the address on an e-way bill.The petitioner/assessee, a private company in the business of steel as well as HT wires, entered into an agreement with Reva Engineering Pvt. Ltd., Jabalpur, for the supply of goods. As per the agreement, the goods had to be delivered to the factory at Rewa. The agreement ultimately resulted in the...

E-Filing Of ITR-4 For A.Y. 2022-23: CBDT Issues Validation Rules

The Central Board of Direct Taxes (CBDT) has issued the validation rules for e-Filing of ITR-4 for A.Y. 2022–23. The Income Tax Department has provided free return preparation software in the downloads pages that is fully compliant with data quality requirements. However, there are certain commercially available software or websites that offer return preparation facilities as well. In order to ensure the data quality of ITRs prepared through such commercially available software,...