No Illegality In Initiation Of Reassessment Proceedings After 10 Years Post-Search Under New Regime: Jharkhand High Court

The Jharkhand High Court had held that A.O. was justified in reopening the assessment for A.Y. 13–14 for 10 years as they had rightly taken previous sanction from the competent authority.The bench of Justice Rongon Mukhopadhyay and Justice Deepak Roshan has observed that w.e.f. April 1, 2022, the legislature expanded the scope for revenue in search proceedings via amendment in Section...

VAT Applicable On Sale Of Repossessed Vehicles: Delhi High Court

The Delhi High Court has held that the sale of repossessed vehicles is subject to the charge of value-added tax (VAT).The bench of Justice Vibhu Bakhru and Justice Amit Mahajan has observed that notices have been issued to the petitioner demanding VAT on the sale of repossessed vehicles and not on the transaction of financing the vehicles at the initial purchase.The petitioner/assessee,...

Roving Inquiry As Per Order Of Special Judge (PC Act) By GST Dept. Delhi High Court Quashes Order

The Delhi High Court has quashed the special judge's directions for conducting a roving inquiry by the GST department in the absence of any statutory provisions.The bench of Justice Vibhu Bakhru and Justice Amit Mahajan has observed that apart from the directions issued in terms of the order dated April 5, 2023, there were no reasons for the respondent to initiate the search against...

Delhi High Court Directs GST Dept. To Pay GST ITC To IOCL

The Delhi High Court has allowed the refund of accumulated Input Tax Credit (ITC) due to the inverted duty structure to Indian Oil Corporation Limited (IOCL).The bench of Justice Vibhu Bakhru and Justice Amit Mahajan has observed that the rate of tax chargeable on inputs other than LPG, which are higher than the rate of GST chargeable on bottled LPG. The ITC has accumulated on account of the...

Tea Stored In Warehouse Is An Agricultural Produce, Not Exigible To Service Tax: Bombay High Court

The Bombay High Court has issued a writ of certiorari against the Appellate Authority of Advance Ruling (AAAR) and held that “tea” stored in warehouses is agricultural produce and is not eligible for service tax.The bench of Justice G. S. Kulkarni and Justice Jitendra Jain has observed that a writ of certiorari can be issued only when there is a failure of justice and that it cannot be...

Patna High Court Grants Relief to Cooperative Society, Rules Solid Waste Management Activity Exempt from BGST

In a recent legal development, the Patna High Court has ruled in favor of a Cooperative Society registered under the Bihar Goods and Services Tax Act, 2017 (BGST Act), stating that the Solid Waste Management Activity undertaken by the petitioner is exempt from BGST. The court quashed assessment orders and demand notices against the Cooperative Society, emphasizing that there is no supply of...

Delhi High Court Quashes Final Assessment Order Passed By AO Without Waiting For DRP's Directions Mandated U/s 144C

The Delhi High Court has set aside the final assessment order and the consequent notices and computations that were passed without waiting for the directions issued by the Dispute Resolution Panel (DRP) as per the mandate of Section 144C of the Income Tax Act.The bench of Acting Chief Justice Manmohan and Justice Mini Pushkarna has observed that once the objections have been filed by the...

GST Officers Should Not Pressurise Taxpayers To Pay Tax Not Following Procedure: Delhi High Court

The Delhi High Court has held that it is impermissible for the officers to pressurize the taxpayers to pay tax without following the requisite procedure, notwithstanding that it may be apparent that such tax is due and payable.The bench of Justice Vibhu Bakhru and Justice Amit Mahajan has observed that the assessee's statement cannot be read as acknowledgement of any liability to pay ITC....

Delhi High Court Allows Exemptions Claim Of Amazon On Echo Show 5, Echo Dot 4th Generation Under Customs Notification

The Delhi High Court has held that Echo Show 5, Echo Dot 4th Generation, and Echo Dot 4th Generation with Clock are eligible to claim exemptions in accordance with SI. No. 20 of the Notification dated June 30, 2017.The bench of Justice Yashwant Varma and Justice Dharmesh Sharma has observed that merely because these devices could, if so chosen by the user, also be used as mere speakers, the...

Assessee Coerced To Deposit GST During Search: Delhi High Court Orders Refund

The Delhi High Court has directed the department to refund the amount deposited by the petitioner by making a payment of Rs. 23,70,000 in cash along with interest at a rate of 6% per annum.The bench of Justice Vibhu Bakhru and Justice Amit Mahajan has observed that payments aggregating to Rs. 28,20,000 were made at 11:49 PM and at 12:38 PM during the search operations. The payments made by...

ITC Reversal During Late Night Search Involuntarily: Delhi High Court Directs Dept. To Reverse ITC In Assessee's ECL

The Delhi High Court has directed the department to reverse the input tax credit (ITC) amounting to Rs. 22,14,226 in the petitioner's electronic credit ledger (ECL).“We do not find it difficult to accept that the petitioner may have found the circumstances intimidating and had, accordingly, agreed to reverse the ITC. We are unable to accept that the reversal of ITC was made voluntarily...

SCN Lacked Time Or Date For Personal Hearing: Delhi High Court Directs Restoration Of GST Registration

The Delhi High Court has directed the restoration of GST registration as no opportunity for a hearing was accorded to the petitioner or assessee.The bench of Justice Vibhu Bakhru and Justice Amit Mahajan has observed that the show cause notice (SCN) does not mention any time or date for a personal hearing. Thus, the petitioner was not afforded a hearing to contest the SCN. The order...