Absence Of Formal Communication U/S 148A Of Income Tax Act Not Fatal When Opportunity To Question Reassessment Had Been Provided: Delhi HC

The Delhi High Court observed that absence of a formal notice under Section 148A of the Income Tax Act, 1961 was not fatal to reassessment proceedings initiated in the twilight zone when the inquiry provisions were introduced by the Finance Act, 2021. A division bench of Justices Yashwant Varma and Dharmesh Sharma noted that the Department had provided an opportunity...

GST Act | Notification Not Needed For Cross-Empowerment Of State Officials : Kerala High Court

In a significant judgment having a wide impact on several pending cases, the Kerala High Court on Wednesday (January 15) ruled that separate notification is not necessary for the cross-empowerment of State officials under the Goods and Services Tax Act.A division bench comprising Justice Dr AK Jayasankaran Nambiar and Justice S Easwaran delivered this significant judgment while answering...

'Will Pull You Up' : Supreme Court Asks GST Department To Rectify Issues Over Fake Invoices, Asks How Genuine Purchasers Are Liable

The Supreme Court on Wednesday flagged a recurring problem in GST matters whereby genuine purchasers who paid Goods and Services Tax (GST) face issues because their suppliers raised fictitious bills to evade crediting the GST to the department.The Court orally wondered how could the purchaser be held liable for the incorrect GST registration of the suppliers when they have genuinely...

Interim Release Of Goods Can Be Ordered Pending Adjudication Of Notice U/S 130 GST Act In Lieu Of Fine: Kerala High Court

The Kerala High Court has held that interim release of goods can be ordered pending adjudication of notice under section 130 GST Act in lieu of fine.The Bench of Justice Murali Purushothaman observed that “….the adjudication can be proceeded even if the goods are released pending adjudication. Even if confiscation is ordered, there is an option to the owner of the goods to pay fine...

Subsidiary Supplying To Parent Company In Independent Capacity Cannot Be Considered 'Intermediary Service' U/S 2(13) IGST Act: Gujarat HC

The Gujarat High Court has made it clear that where a subsidiary company provides goods or services to its parent company in its independent capacity, it cannot be said that such services fall under 'intermediary service' under Section 2(13) of the Integrated Goods and Service Tax Act, 2017. The provision defines “intermediary” as a broker, an agent or any other person who arranges...

[Municipal Corporation Act] Writ Petition Against District Judge's Order Upholding Imposition Of Property Tax Not Maintainable: Chhattisgarh HC

The Chhattisgarh High Court has held that it cannot exercise writ jurisdiction against an order by the District Judge, which is the Appellate Authority under the Municipal Corporation Act 1956, upholding imposition of property tax. In doing so, single judge Justice Narendra Kumar Vyas cited Section 149 of the Act which prescribes that the Appellate Authority is amenable to...

Seized Gold Cannot Be Confiscated Just For Having An Invalid Letter Of Approval: CESTAT

The Allahabad Bench of Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has stated that seized gold cannot be confiscated just for having an invalid letter of approval. There was a difference in the opinion between the P.K. Choudhary (Judicial Member) and Sanjiv Srivastava (Technical Member) on the issues involved in the case. Therefore, the matter was place before...

[Income Tax] Allahabad HC To Examine Whether Proceedings U/S 148A(b) Initiated Prior To 01.09.2024 Would Be Saved After Enforcement Of The Finance (No.2) Act, 2024

The Lucknow Bench of the Allahabad High Court has sought state response on the question of maintainability of proceedings under Section 148A(b) of the Income Tax Act initiated prior to 01.09.2024, if at all, would be saved after enforcement of the Finance (No.2) Act, 2024 w.e.f. 01.09.2024 especially in view of sub-Section- (4) of Section 152 of the Income Tax Act, 1961 which has...

If Assessee Produces Accounts, AO Must Be Satisfied That Accommodation Entries Exist Before Proceeding U/S 148 Of Income Tax Act: Delhi HC

The Delhi High Court has held that an Assessing Officer is required to be satisfied that accommodation entries as alleged in show cause notice under Section 148A(b) of the Income Tax Act 1961 exist, particularly where the assessee produces its accounts. In doing so, a division bench of Acting Chief Justice Vibhu Bakhru and Justice Swarana Kanta Sharma heavily relied on its...

Investigation Report Is Not An Appealable Order; No Statutory Right For Hearing At Stage Of Preparation Of Investigation Report: CESTAT

The Chennai Bench of Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has stated that investigation report is not an appealable order and there is no statutory right for a hearing at the stage of preparation of investigation report. The Bench of P. Dinesha (Judicial Member) and M. Ajit Kumar (Technical Member) has observed that “the assessee has also not...

Supply Of Solar Generating Power Station Is A Composite Supply, Would Not Amount To Works Contract; Attracts 5% GST: Andhra Pradesh High Court

The Andhra Pradesh High Court stated that the supply of solar generating power station is a composite supply and it would not amount to a works contract. Also, it is a moveable property and attracted 5% GST. The Division Bench of Justices R Raghunandan Rao and Maheswara Rao Kuncheam observed that “a 'works contract' is also a composite supply. However, there could be a...

Service Tax Liability Cannot Be Fastened On Implementation Of Govt Projects: Calcutta High Court

The Calcutta High Court has held that construction of canals/ pipelines/ conduits to support irrigation, water supply or for sewerage disposal, when provided to the Government, cannot be exigible to service tax. A division bench of Chief Justice TS Sivagnanam and Justice Hiranmay Bhattacharyya relied on two Circulars issued by the Central Board of Indirect Taxes and Customs...