Tax
Allahabad High Court Imposes Cost Of Rs. 50000 For Arbitrary Cancellation of GST Registration
The Allahabad High Court has imposed a cost of Rs. 50,000 for the arbitrary cancellation of GST registration. The single bench of Justice Pankaj Bhatia observed that the arbitrary exercise of power to cancel the registration in the manner in which it has been done has adversely affected the petitioner. It has also had a negative impact on the revenues that could have flowed into...
Cut/Sized Shade Trees Constitutes "Agricultural Produce", No Sales Tax Applicable: Madras High Court
The Madras High Court bench of Justice R. Mahadevan and Justice Mohammed Shaffiq has held that the cut and sized shade trees would constitute "agricultural produce" and, therefore, fall outside the purview of the Tamil Nadu General Sales Tax Act, 1959 (TNGST Act, 1959).The issue raised was whether the sales of cut/sized Silver Oak grown as shade trees in the Tea Estates would...
Issuance Of Repeated Summons Without Ensuring Service Of The Summons Must Be Avoided: CBIC
The Central Board of Indirect Taxes and Customs (CBIC) has issued guidelines on the issuance of summons under section 70 of the Central Goods and Services Tax Act, 2017. It has been brought to the Board's attention that summons under Section 70 of the CGST Act have been routinely issued by field formations to top senior officials of companies to request material evidence or...
Assessee Required To Substantiate Claim Of TDS, In Absence Of TDS Certificate: ITAT
The Mumbai Bench of ITAT has ruled that where the assessee has no TDS certificate available with it, it is required to discharge its responsibility of proving whether TDS was deducted by the payer of income or not in order to avail credit of TDS. The Tribunal ruled that the onus is on the assessee to substantiate its claim of tax deducted at source on the payments received by...
Gujarat High Court Grants Bail To Person Alleged Of Creating Fictitious Entity To Pass Ineligible ITC
The Gujarat High Court has granted bail to a person alleged to have created a fictitious entity to pass an ineligible Input Tax Credit (ITC).The single bench of Justice Ilesh J. Vora has directed the release of the applicant on bail, subjected to a deposition of Rs. 2 crore before the office of the Deputy Commissioner of State Tax, Division 8, Enforcement, Surat within a period of 2...
Tax Cases Weekly Round-Up: 14 August To 20 August, 2022
Bombay High Court Customs Authorities Cannot Encash Bank Guarantee Before Expiry Of The Limitation Period For Filing An Appeal: Bombay High Court Case Title: S. J. Enterprises & Anr. versus Union of India The Bombay High Court has reiterated that Customs Authorities cannot encash the Bank Guarantee furnished by the assessee before the expiry of the statutory period...
Avoid Arrest In GST Cases Of Technical Nature, Don't Use This Power Mechanically : CBIC Issues Guidelines
The Central Board of Indirect Taxes and Customs (CBIC) has issued guidelines for arrest and bail in relation to offences punishable under the Central Goods & Services Tax Act, 2017 (CGST Act). The CBIC has issued guidelines in the light of the decision of the Supreme Court in the case of Siddharth vs. The State of Uttar Pradesh, dated August 16, 2021. The Supreme Court held that if...
CBIC Revises Threshold Limits For Launching Prosecution In Relation To Offences Punishable Under Customs Act, 1962
The Central Board of Indirect Taxes and Customs (CBIC) has issued the guidelines for the launching of prosecution in relation to offences punishable under the Customs Act, 1962. The CBIC has decided to revise the threshold in the case of baggage and outright smuggling. The arrest and prosecution can be made in cases involving unauthorised importation of baggage/cases under the Transfer...
Activity Of Chemist/Pharmacy Is Incidental To Dominant Object For Running A Hospital: ITAT
The Mumbai Bench of the Income Tax Appellate Tribunal (ITAT) consisting of Rahul Choudhary (Judicial Member) and M. Balaganesh (Accountant Member) has held that the activity of a chemist or pharmacy is incidental or ancillary to the dominant object of running a hospital. The assessee/respondent is a charitable trust duly registered under section 12A of the Income Tax Act. The...
CBIC Issues Guidelines For Arrest And Bail In Relation To Offences Punishable Under Customs Act, 1962
The Central Board of Indirect Taxes and Customs (CBIC) has issued the revised guidelines for arrest and bail in relation to offences punishable under the Customs Act, 1962. The Customs Act of 1962 does not specify any value limits for exercising the powers of arrest. The Board has clarified that arrest in respect of an offence should be effected only in exceptional...
Goods Or Conveyance Can't be Detained Without Service of detention Order: Jharkhand High Court
The Jharkhand High Court has held that no goods or conveyance shall be detained or seized without serving an order of detention or seizure on the person transporting the goods. The division bench of Justice Aparesh Kumar Singh and Justice Deepak Roshan has observed that the adjudication order and the appellate order both suffered from procedural infirmities and lacked...
Non- Deliberate Delay In Late Filing SFT Return : ITAT Quashes Penalty
The Delhi Bench of the Income Tax Appellate Tribunal (ITAT) has quashed the penalty on the grounds that the delay in the late filing of the Statement of Financial Transaction (SFT) return was not deliberate.The two-member bench of Yogesh Kumar (Judicial Member) and Shamim Yahya (Accountant Member) observed that an order imposing a penalty for failure to carry out a statutory obligation is...