Tax
DGFT Exempts IGST And Compensation Cess Under Advance Authorisation, EPCG And EOU Scheme
The Directorate General of Foreign Trade (DGFT) has exempted Integrated Goods And Service Tax (IGST) and Compensation Cess under Advance Authorisation, Export Promotion Capital Goods (EPCG) Scheme and Export Oriented Units (EOU) Scheme.The government empowered under Section 5 of the FT (D&R) Act 1992, read with Paragraph 1.02 of the Foreign Trade Policy, 2015–2020, has amended...
Imparting Skill Development Is Akin To Providing Education, Eligible For Section 12AA Registration: ITAT
The Delhi Bench of the Income Tax Appellate Tribunal (ITAT) consisting of Yogesh Kumar U.S. (Judicial Member) and B.R.R. Kumar (Accountant Member) has held that the assessee is eligible for registration under section 12AA of the Income Tax Act for imparting skill development, which is akin to providing education. The appellant/assessee, C.R. Dadhich Memorial Society was established...
GST Circular Contra To GST Act, Can't Deny The Claim For ITC refund; Rajasthan High Court
The Rajasthan High Court has held that the GST circular dated 31.03.2020, repugnant to the parent legislation, cannot be applied to oust the legitimate claim for an accumulated ITC refund. The division bench of Justice Sandeep Mehta and Justice Vinod Kumar Bharwani has observed that the supplying dealer would be entitled to claim a refund of accumulated unutilised tax credit...
Rajasthan High Court Grants Bail To Person Accused Of GST Evasion
The Rajasthan High Court bench of Justice Narendra Singh Dhaddha has granted bail to the person accused of GST evasion of Rs. 8.64 crore. The petitioner has filed a bail application. The petitioner was charged with the offence punishable under Section 132 (1) of the Central Goods and Services Tax Act, 2017. The petitioner submitted that he had been falsely implicated in the case....
Non-Submission Of Certified Copy of GST Order Appealed Against Within 7 Days Is A Mere Technical Defect: Orissa High Court
The Orissa High Court has held that the non-submission of a certified copy of the GST order appealed against within 7 days is a mere technical defect. The division bench of Justice Krushna Ram Mohapatra and Justice Murahari Shri Raman has observed that on the altar of default in compliance of a procedural requirement, the merit of the matter on appeal cannot be sacrificed. "Since...
No Demand Of GST, Interest And Penalty Can Be Made In Form DRC-01A Without Issuance of Section 74(1) Notice: Madras High Court
While quashing the assessment order, the Madras High Court held that a demand for GST, interest, and penalty on Form DRC-01A cannot be made without the issuance of a notice under Section 74(1) of the CGST Act. The single bench of Justice M.Nirmal Kumar has observed that the department/respondent has not followed the procedure. After the issuance of notice on Form DRC-01A, the...
Voluntary Statement Made Before The Revenue Authorities Cannot Substitute A Statutory Pre-Show Cause Consultation Notice: Delhi High Court
The Delhi High Court has reiterated that a voluntary statement made before the revenue authorities cannot substitute a statutory pre-show cause consultation notice, as contemplated under Rule 142(1A) of the CGST Rules, 2017, as it stood before 15.10.2020. The Division Bench of Justices Rajiv Shakdher and Tara Vitasta Ganju dismissed the contentions of the revenue department that...
No Suppression Of Facts, Show Cause Notice Based On Balance Sheet: Karnataka High Court
The Karnataka High Court bench of Justice P.S. Dinesh Kumar and Justice Anant Ramanath Hedge has held that the assessee is not liable for the suppression of facts as the show cause notice was issued on the basis of the disclosures made in the balance sheet.The respondent/assessee is in the business of manufacturing and clearing turbochargers, electric motors, transformers, etc....
Tax Cases Weekly Round-Up:26 June To 2 July, 2022
High Courts: Madras High Court: IBC Proceedings Can't Dilute Rights Of The Income Tax Department To Reopen Assessment: Madras High Court Case Title: M/s. Dishnet Wireless Limited versus the Assistant Commissioner of Income Tax (OSD) The Madras High Court has ruled that proceedings under the Insolvency and Bankruptcy Code (IBC), 2016 cannot dilute the rights of the Income...
Officers Of DGGI Are "Central Excise Officers"; Can Issue Show Cause Notices And Adjudicate Service Tax Demand: Madras High Court
The Madras High Court has ruled that officers of the Directorate General of GST Intelligence (DGGI) are "Central Excise Officers" for the purpose of Rule 3 of the Service Tax Rules, 1994 since they are vested with the powers of Central Excise Officers by the Central Board of Excise and Customs (CBEC). The Single Bench of Justice C. Saravanan, while considering a bunch of...
Tax Cases Monthly Round-Up: June 2022
Direct Tax: Delhi High Court: Underreporting Of Income Due To Re-Computation Of Disallowance By The AO, Does Not Amount To Misreporting Of Income: Delhi High Court Case Title: Prem Brothers Infrastructure LLP. versus National Faceless Assessment Centre & Anr. Citation: 2022 LiveLaw (Del) 568 The Delhi High Court has ruled that where the underreporting of income...
Extended Period Of Limitation Can Be Invoked Only When "Suppression Of Facts" Is Wilful To Evade Tax :CESTAT
The Allahabad Bench of the Customs, Excise and Service Tax Appellate Tribunal (CESTAT) has held that even when an assessee has suppressed facts, the extended period of limitation can be evoked only when "suppression" is shown to be wilful with intent to evade the payment of service tax. The two-member bench headed by Justice Dilip Gupta (President) and Raju (Technical Member) has...