Dept. To Decide Whether Corrected Form TRAN-1 Would Be Entertained As Per Transitional Provision Under GST: Bombay High Court Allows Taxpayers To Correct Form TRAN-1

The Bombay High Court bench of Justice S.G. Mehare and Justice R.D. Dhanuka has allowed the taxpayers to correct Form TRAN-1. The court has directed the department to consider the issue of whether Form TRAN-1 and other forms that would be filed or corrected by the petitioner can be entertained in accordance with provisions of section 140 of the Central Goods and Services Tax Act, 2017 and Rule 117 (1) of the Central Goods and Services Tax Rules, 2017 or not. The petitioner/assessees...

Benefit Of MEIS Scheme Can't Be Availed If Not Opted In Shipping Bill At The Time Of Export: Madhya Pradesh High Court

The Madhya Pradesh High Court bench of Justice Vivek Rusia and Justice Amarnath Kesharwani has held that the benefit of the Merchandise Exports From India Scheme (MEIS) cannot be availed if it is not opted for in the shipping bill at the time of export. The petitioner/assessee, a private limited company, is in the business of manufacturing automobile parts. The petitioner has sought the declaration for relaxation/condonation of the procedure lapse of non-mentioning of MEIS scheme in the...

Interest Free Security Deposits Are Not Exigible To Service Tax: CESTAT Ahmedabad

The Ahmedabad Bench of the Customs, Excise & Service Tax Appellate Tribunal (CESTAT) has ruled that interest free refundable security deposits are not exigible to service tax since they are not collected in consideration for providing a service. The Bench, consisting of members Ramesh Nair (Judicial Member) and Raju (Technical Member), held that there is no provision in the Service Tax law that allows notional interest on refundable security deposits to be added to the value of...

ITC Can Be Availed on IGST Paid Both On Imports Intra & Inter-State Sales: AAR

The Telangana Authority of Advance Ruling (AAR) consisting of members B. Raghu Kiran and S.V. Kasi Visweswara Rao has ruled that IGST paid on imports is eligible to be availed as an Input Tax Credit (ITC) both on intra-state and inter-state sales. The applicant, M/s. Euroflex Transmissions (India) Private Limited, wishes to supply imported goods directly from the port of importation to customers located throughout India, rather than bringing such goods to the applicant's registered...

Weekly Digest Of Tax Cases: April 10 To April 17, 2022

High CourtDelhi High Court Scholarship By Hamdard Foundation, Exemption Under Income Tax Act Can't Be Denied: Delhi High Court Case Title: Commissioner of Income Tax (Exemptions) Delhi versus Hamdard National Foundation (India) Citation: 2022 LiveLaw (Del) 302 The Delhi High Court has upheld the factual findings made by the CIT (A) and ITAT that the merit-cum scholarship/financial assistance provided by Hamdard National Foundation was not confined to students of a particular...

Post Facto Changes In GST Registration: Madras High Court Quashes Penalty Imposed For Mismatch Of Address In Invoice And RC

The penalty imposed for mismatch of address in invoice and RC was quashed by the Madras High Court bench of Justice C. Saravanan on the grounds that there was a post facto alteration in GST registration. The petitioner, a new start-up company, is in the business of research and development on Alage and its utilisation. The petitioner placed a purchase order on October 7, 2021, for the supply of a specialised spray dryer and the parts with M/s.ABV Engineering, Ahmedabad, who had consigned...

Rajasthan High Court Refuses To Exempt Assessee From Personal Appearance Under GST

The Rajasthan High Court consisting of Justice Manindra Mohan Shrivastava and Justice Sameer Jain has refused to exempt the assessee from personal appearance under Section 70 of the CGST Act. The petitioner/assessee sought the direction of exemption from personal appearance pursuant to summons issued to the petitioner under Section 70 of the Central Goods and Services Tax Act, 2017 issued by Respondent/department. The assessee has sought its representation through an authorised...

Liquidated Damages And Penalties Due To Breach Of Conditions Of Contract From The Contractor Are Exigible To GST: AAR

The Telangana Authority of Advance Ruling (AAR) consisting of members K.V. Kasi Visweswara Rao and B. Ragu Kiran has ruled that the liquidated damages and penalties received by the applicant due to breach of conditions of the contract by the contractor are exigible to tax under the CGST and SGST Acts. The applicant, M/s. Singareni Collieries Company Limited, is entering into contracts with a host of vendors and suppliers for the extraction of coal. The applicant is recovering...

No TDS Required To Be Deducted On Enhanced Compensation Awarded By Court Under Land Acquisition Act: Delhi ITAT

The Delhi Bench of ITAT, consisting of members Astha Chandra (Judicial Member) and N.K. Billaiya (Accountant Member), has ruled that interest received by land owners on enhanced compensation awarded to them by the Court under Section 28 of the Land Acquisition Act, 1894 is not in the nature of 'income from other sources' under the Income Tax Act, 1961, therefore, no TDS is required to be deducted with respect to it. The Assistant Commissioner of Income Tax (ACIT) conducted TDS ...

TPO To Mandatorily Pass Order Determining Arm's Length Pricing Within 60 Days: Madras High Court

The Madras High Court bench of Justice R.Mahadevan and Justice J.Sathya Narayan Prasad has held that the transfer pricing officer (TPO) must mandatorily pass the order determining arm's length pricing within 60 days.In the writ petition, the appellant/department has disputed the judge's order. The judge ruled that the TPO's decision or inability to issue an order within 60 days will have an influence on the order issued by the Assessing Officer, for which an outer time limit has been...

Plea In Supreme Court Challenges The Constitutional Validity Of Levy Of GST On Lease/ Rent Payments

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. Justice M.R. Shah and Justice B.V. Nagarathna, while hearing the matter, observed, "Let one advance copy be served on Shri N. Venkataraman, learned ASG, who may take the instructions in the matter and file the counter affidavit." In the present matter, the ...

Delhi High Court Grants Bail To Person Accused Of Fraudulently Claiming ITC

The Delhi High Court bench of Justice Prateek Jalan has granted bail to the person accused of fraudulently claiming an input tax credit (ITC) under the CGST Act who has already undergone 9 months in custody.The applicant, Pulkit, has sought bail in respect of the offence of setting up a number of fictitious companies, which were being used for the purposes of defrauding the government. The accused have allegedly opened bank accounts in fictitious names and provided their telephone numbers ...