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 Not To Be Considered While Issuing Reassessment Notice: Delhi High Court Case Title: Kedar Nath Babbar Versus Assistant Commissioner of Income Tax Citation: 2022 LiveLaw (Del) 434 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. Bombay High CourtCredit Worthiness Of The Creditor And Genuineness Of Transaction Explained By The Assessee: Bombay High Court Quashes Re-assessment Notice Case Title: Vapi Infrastructure and Industrial Township LLP Versus Income Tax Officer Ward The Bombay High Court has quashed the reassessment notice. The assessee explained the credit worthiness of the creditor and the genuineness of the transaction. The division bench of Justice K.R. Shriram and Justice N.R. Borkar observed that the re-opening proposed was purely based on a change of opinion. The assessing officer was also satisfied with the credit worthiness and details provided by third party lenders. Karnataka High Court No Conflict Between Power To Levy GST And Power Of Municipal Corporation To Levy Advertisement Fee Or Advertisement Tax: Karnataka HighCourt Case Title: Hubballi Dharwad Advertisers Association (R) Vs State of Karnataka 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. Kerala High CourtKVAT Registration Once Cancelled Has To Be Published In Two Leading Daily Newspapers: Kerala High Court Case Title: The State of Kerala Versus Raseena K.K. Citation: 2022 LiveLaw (Ker) 215 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. Allahabad High Court Allahabad High Court Stays GST Demand On Payment Of Royalty To Conduct Mining Activity Case Title: M/s Jitendra Singh Versus Union of India The Allahabad High Court bench of Justice Saumitra Dayal Singh has stayed the GST demand on payment of royalty to conduct mining activity. Madras High Court Transition Of ITC cannot Be Denied Merely For Technical Difficulties: Madras High Court Case Title: M/s.Vetrivel Explosives Pvt. Ltd. Versus Union of India Citation: 2022 LiveLaw (Mad) 208 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. Calcutta High Court Genuine Transactions With Suppliers Whose GST Registration Cancelled: Calcutta High Court Allows GST ITC To Assessee Case Title: Sanchita Kundu & Anr. Vs. The Assistant Commissioner of State Tax, Bureau of Investigation, South Bengal & Ors. The Calcutta High Court bench of Justice Md. Nizamuddin has held that the Input Tax Credit (ITC) cannot be denied on genuine transactions with suppliers whose GST registration was cancelled after the transaction. Gujarat High Court Bonafide Mistake In Selection Of Wrong ODC Vehicle Type While Generating E-Way Bill: Gujarat High Court Quashes Detention Order Case Title: Dhabriya Polywood Limited Vs Union of India 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 was the selection of the wrong ODC vehicle type while generating the e-Way Bill. ITAT Subscription Money Received In Advance By DTH Operators Is Taxable Only When Services Are Provided To The Subscribers: Chennai ITAT Case Title: ACIT versus M/s Sun Direct TV Pvt Ltd ...

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

Mariya Paliwala

Tags