Tax
SGST Dept. Can Initiate Proceedings Against The Unit Situated In SEZ: Gujarat High Court Imposes Rs.10K Cost
The Gujarat High Court has held that the state GST department can initiate proceedings against the unit situated in the Special Economic Zone (SEZ).The bench of Justice Ashutosh Shastri and Justice J. C. Doshi has observed that respondent departments are empowered to carry out proceedings in SEZ. Their jurisdiction is unquestionable, as the Central Government has already authorized those...
Delhi High Court Directs Dept. To Reconsider Travelport UK’s Refund Adjustment
The Delhi High Court has directed the department to reconsider Travelport UK’s refund adjustment on the basis of the contents of the writ petition.The bench of Justice Vibhu Bakhru and Justice Amit Mahajan has set aside the department’s action in adjusting a sum of Rs. 6,27,20,736 under Section 245 of the Income Tax Act and remanded the matter to the concerned authority to decide...
Dept. To Reconsider The Application Under Karasamadhana Scheme: Karnataka High Court Quashes Recovery From The Banker
The Karnataka High Court has quashed the recovery from the banker and directed the department to reconsider the application under the Karasamadhana Scheme.The bench of Justice S. Sunil Dutt Yadav has observed that in the event that the application is rejected, it is needless to state that the petitioner cannot be placed in a position worse off, and the petitioner is entitled to the restoration...
Certificates Issued By Qualified Professionals Like CAs Can’t Be Brushed Aside Merely For Lack Of Corroborative Evidence: CESTAT
The Ahmedabad Bench of the Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has observed that certificates issued by qualified professionals like cost accountants, chartered accountants, and chartered engineers should not be brushed aside merely with the statement that corroborative evidence was not produced.The bench of Ramesh Nair (Judicial Member) and C. L. Mahar (Technical...
Bombay High Court Upholds The Validity of Provisions Dealing With Place Of Supply Under IGST
The Bombay High Court has upheld the validity of Section 13(8)(b) and Section 8(2), which deal with place of supply under the Integrated Goods and Service Tax Act, 2017 (IGST Act).The Bench of Justice Sunil B. Shukre and Justice Abhay Ahuja has observed that the provisions of Section 13(8)(b) and Section 8(2) of the IGST Act are legal, valid, and constitutional, provided that the provisions...
Manufacturing Without Proper Manufacturing Facilities: CESTAT Upholds Excise Duty Demand, Penalty
The Ahmedabad Bench of the Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has held that manufacture and clearances made by the four units availing the benefit of Notification No. 8/2003-CE have to be clubbed together as these units are one and the same. Their operations are under common management/family members and financial control, and they have mutual financial interests...
Provisions Of Section 44BB Not Applicable In Absence Of PE: ITAT
The Delhi Bench of the Income Tax Appellate Tribunal (ITAT) has held that the provisions of Section 44BB of the Income Tax Act are not applicable in the absence of a permanent establishment (PE).The bench of Kul Bharat (Judicial Member) and Shamim Yahya (Accountant Member) has observed that the burden of proving the existence of PE lies on the department, which has not been discharged. There...
GST ITC Available On Work Contract Services For The Construction Of Hotel Building: Tripura High Court
The Tripura High Court has held that in providing taxable work contract services for the said construction of a hotel building, the assessee is entitled to take an input tax credit on the goods and services being utilized for providing the taxable work contract services.The bench of Acting Chief Justice Aparesh Kumar Singh and Justice Arindam Lodh has observed that the assessee has fulfilled...
Deemed Dividend Cannot Be Taxed In The Hands Of Non-Shareholders: ITAT
The Ahmedabad Bench of the Income Tax Appellate Tribunal (ITAT) has held that deemed dividends cannot be taxed in the hands of non-shareholders.The bench of Annapurna Gupta (Accountant Member) has observed that the deeming fiction envisaged in Section 2(22)(e) of the Income Tax Act is only with respect to dividends, and its scope, therefore, cannot be enlarged to extend to shareholders also....
CBIC Re-Organises Of National Assessment Centres And Faceless Assessment Groups
The Central Board of Indirect Taxes and Customs (CBIC) has issued a circular regarding the reorganization of National Assessment Centres (NACs) and Faceless Assessment Groups (FAGs), which shall be effective June 15, 2023.Recently, the board has reviewed the performance of the Faceless Assessment and deliberated upon certain aspects relating to the functioning and structure of the NACs and...
GST Payable Only On The Cost of Construction and Not On The Cost Of Land: Gujarat High Court
The Gujarat High Court, while giving major relief to the buyers, has held that GST is payable only on the cost of construction and not on the cost of land.The bench of Justice J.B. Pardiwala and Justice Nisha M. Thakore has observed that in the sale of a flat, villa, or commercial property, the actual land value or undivided share is not at all subject to GST. The value of the land or...
Burden To Prove That A Specific Product Falls Within A Particular Tariff Is Always On The Department: Rajasthan High Court
The Jaipur Bench of the Rajasthan High Court has held that the burden to prove that a specific product falls within a particular tariff is always on the revenue, more so when the revenue is trying to classify products in the residual entry as against the specific entry.The bench of Justice Sameer Jain has observed that the department has utterly failed to adduce any evidence, technical...