Tax
No Technical Flaw If GST Orders Lack Visible Signatures; Digital Key Authentication Sufficient: Delhi High Court
The Central Goods and Services Tax Department recently explained to the Delhi High Court the process its officers follow when uploading any show cause notice or order on the GST portal. The explanation was tendered in response to a plea filed before the Court, challenging the legality of a demand order on the ground that the impugned SCN and the impugned order were not duly signed...
Service Tax Provisions Under Finance Act Do Not Extend To Jammu & Kashmir: CESTAT Sets Aside ₹4 Crore Demand
The Chandigarh Bench of Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has held that the provisions of service tax under the Finance Act, 1994, do not extend to the State of Jammu & Kashmir, and accordingly set aside a service tax demand of Rs. 4 crores. S.S. Garg (Judicial Member) and P. Anjani Kumar (Technical Member) opined that the provision of Chapter V of...
Trader's Plea To Cancel GST Registration Unravels ITC Fraud, Delhi High Court Imposes ₹5 Lakh Costs Over Misleading Submissions
In an unusual turn of events at the Delhi High Court, an “innocuous” petition filed by a trader seeking cancellation of its GST registration unravelled fraudulent availment of Input Tax Credit worth lakhs.A division bench of Justices Prathiba M. Singh and Shail Jain thus imposed a cost of ₹5 lakh on the trader, ₹2 lakh of which would go to the Delhi High Court Bar Association, ₹2...
'Taxable Person' Under GST Includes Individual Behind Fake Firms Used To Fraudulently Avail ITC: Delhi High Court
The Delhi High Court has held that where fraudulent availment of tax by a fake firm comes to light, penalties can be imposed on the person behind the bogus operations.A division bench of Justices Prathiba M. Singh and Madhu Jain observed,“When the expression 'taxable person' has to be interpreted, the 'taxable person', so long as it is an identified real person/entity it would be the...
Black Tea Is Agricultural Produce, Commission Paid To Foreign Agents Not Liable To Service Tax : CESTAT Chennai
The Chennai Bench of Customs, Excise and Service Tax Appellate Tribunal (CESTAT) set aside service tax demand on commission paid to foreign agents for sale of black tea, finding that 'essential characteristic' of agricultural produce is retained. CESTAT Chennai clarified that black tea gets covered by the expression 'in relation to agriculture' appearing in Notification...
Delhi High Court Upholds Denial Of Cross-Examination By GST Dept Citing Trader's Conduct, Say It's Not An 'Unfettered' Right
The Delhi High Court recently slammed a trader, allegedly involved in clandestine manufacture of pan masala to evade tax and recovery of ₹70 lakh from his premises, for his failure to cooperate in the probe.A division bench of Justices Prathiba M. Singh and Shail Jain in this backdrop upheld the GST Department's order, denying the Petitioner-trader's right to cross-examination. It...
Commission-Based Services To Foreign Clients As Agent Qualifies As 'Export Of Service': CESTAT
The Chandigarh Bench of the Customs, Excise and Service Tax Appellate Tribunal (CESTAT) held that commission-based services such as sales facilitation and regional support services provided by Indian counterparts to foreign companies qualified as 'export' and not as 'Business Auxiliary Services'.The assessee was engaged in the manufacture and sale of zippers and parts thereof in India and...
Customs | Traveller Entitled To Release Of Goods If SCN Not Issued Within Time, No Liability To Pay Fine Or Penalty: Delhi High Court
The Delhi High Court has clarified that a traveller, whose goods are seized by the Customs, is not liable to pay a redemption fine or penalty for the release of goods if the Department failed to issue a show cause notice within the statutory timeframe.A division bench of Justices Prathiba M. Singh and Madhu Jain observed,“It is the settled position in law, after Union of India &Anr....
Penalty Paid Under Economic Duress Not Voluntary Admission Of Liability Under GST Act: Tripura High Court
The Tripura High Court recently held that payment of a penalty under economic duress cannot be treated as a “voluntary” admission of liability, and tax authorities remain legally obligated to pass a final, reasoned order under the Tripura State GST Act, 2017. The ruling came in the case of R G Group, a Tripura-based supplier of electrical goods, whose consignment was detained in July...
Communication On Email Address Is Sufficient Service Under Section 169 GST Act: Delhi High Court
The Delhi High Court has held that under Section 169(1)(c) of the Central Goods and Service Tax Act, 2017, a communication sent to an email address provided at the time of GST registration is adequate service of a decision, order, summons or notice or any other communication.A division bench of Justices Prathiba M. Singh and Shail Jain observed,“With respect to Section169 of the Act, this...
GST Department Must Decide Refund Applications Expeditiously, Any Delay Adversely Affects Business: Delhi High Court
The Delhi High Court has called upon the Goods and Services Tax Department to expeditiously process the refund applications filed by registered persons/ entities.A division bench of Justices Prathiba M. Singh and Shail Jain observed, “As per the statutorily prescribed procedure, the refund applications have to be dealt with in a particular manner within the prescribed timelines as per...
Furnace Oil Not On Par With 'Plant And Machinery', Unrelated To Goods Dispatched For Complete Sales Tax Set-Off: Bombay High Court
The Bombay High Court on Wednesday held that manufacturers cannot claim full sales tax set-off on furnace oil used in producing goods that are partly sold within Maharashtra and partly transferred to branches outside the state, ruling that a 6% reduction must apply under Rule 41D(3)(a) of the Bombay Sales Tax Rules, 1959. Assessee sought to put forth that Furnace oil is a consumable...