Tax
Calcutta High Court Upholds Quashing Of ₹7.29 Crore Penalty Imposed On Dissolved HUF
The Calcutta High Court has upheld the quashing of penalty proceedings initiated against a dissolved Hindu Joint Family.A division bench of Chief Justice T.S. Sivagnanam and Justice Chaitali Chatterjee (Das) upheld the ITAT order which had relied on a Supreme Court ruling to declare the penalty action void-ab-initio.The Top Court had in CIT vs. Maruti Suzuki India Limited held that notice...
Once Input Tax Credit Is Wrongfully Availed Due To Fraud Or Suppression, State Officer Can Issue Notice Even Without Central Action: Patna HC
The Patna High Court has upheld a tax assessment order passed by the State GST Authority, clarifying that once a Proper Officer determines that input tax credit has been wrongfully availed or utilized due to fraud or suppression of facts, they are empowered to issue a notice under Section 74(1) of the CGST/BGST Act, 2017. A Division Bench comprising Justice Rajeev Ranjan Prasad and...
Subscription & Redemption Of Liquid Mutual Fund Units Can't Be Termed As “Trading Of Goods”, CENVAT Credit Admissible: CESTAT
The New Delhi Bench of Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has stated that subscription and redemption of liquid mutual fund units can't be termed as “trading of goods”. The Bench of Binu Tamta (Judicial Member) and Hemambika R. Priya (Technical Member) has observed that the activity of investment in mutual funds does not involve the presence of a...
Sale Of Liquid Carbon Dioxide Is Liable To Be Taxed At 5%: Andhra Pradesh High Court
The Andhra Pradesh High Court stated that the sale of liquid carbon dioxide is liable to be taxed at 5%. The Bench consists of Justices R Raghunandan Rao and K Manmadha Rao were addressing the issue of whether purified liquid Carbon Dioxide gas falls in the unclassified category of goods i.e., Schedule-V to the VAT Act, and is liable to be taxed @ 14.5% instead of 5%. In this...
Income Tax Act | Bona Fide Belief With Genuineness Of Transaction Constitutes Reasonable Cause U/S 273B; No Penalty Imposable U/S 271E: Chhattisgarh HC
The Chhattisgarh High Court held that bona fide belief coupled with genuineness of transactions constitutes a reasonable cause under section 273B of the Income Tax Act for not invoking Section 271E of the Act. The Division Bench of Justices Sanjay K. Agrawal and Deepak Kumar Tiwari referring to Section 273B of the Income Tax Act stated that the word 'reasonable cause' has not...
Penalty U/S 122(1A) Of CGST Act Can Be Imposed On Both Taxable And Non-Taxable Person: Delhi High Court
The Delhi High Court has held that the penalty for GST evasion contemplated under Section 122(1A) of the Central Goods and Services Tax Act 2017, can be imposed on 'any person'— whether taxable or non-taxable.A division bench of Justices Prathiba M. Singh and Rajneesh Kumar Gupta thus differed from the Bombay High Court's decision in Amit Manilal Haria V. The Joint Commissioner of CGST &...
Tax Weekly Round-Up: April 28 - May 04, 2025
SUPREME COURTCentral Excise Tariff Act | Test Reports Justifying Reclassification Must Be Disclosed to Manufacturer : Supreme CourtCase Title: M/S OSWAL PETROCHEMICALS LTD. VERSUS COMMISSIONER OF CENTRAL EXCISE, MUMBAI – IICase no.: CIVIL APPEAL NOS. 129-130 OF 2011The Supreme Court ruled that when a test report forms the basis for reclassification of the petrochemical products, necessitating...
Service Tax Chargeable On Commission Received By Distributor From Company On Products Purchased By Sales Group: CESTAT
The New Delhi Bench of Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has stated that service tax would be chargeable on the commission received by a Distributor from Amway on the products purchased by his sales group. The Bench of Dr. Rachna Gupta (Judicial) and Hemambika R. Priya (Technical) observed that “the assessee is an individual, who cannot be faulted if...
Charges Paid For Bandwidth To Overseas Telecom Operators Not Royalty U/S 9(1)(vi) Of Income Tax Act: Delhi HC Rejects Plea Against Airtel
The Delhi High Court has dismissed an appeal preferred by the Income Tax Department claiming that Bharti Airtel should have deducted TDS on payments made to overseas telecom service providers for bandwidth services.A division bench of Justices Vibhu Bakhru and Tejas Karia relied on CIT v. Telstra Singapore Pte. Ltd. (2024) the High Court had held that where those availing services provided by...
Tax Monthly Digest: April 2025
SUPREME COURTDealers Cannot Claim Input Tax Credit For Purchases Linked To Exempt Sales Under UPVAT Act : Supreme CourtCase Title: NEHA ENTERPRISES VERSUS COMMISSIONER, COMMERCIAL TAX, LUCKNOW, UTTAR PRADESHCase no.: CIVIL APPEAL NO. 6553 OF 2016Emphasizing that tax statutes must be strictly construed with statutory language taking precedence over policy intent, the Supreme Court, in a...
GST Inspection Not Legally Sustainable Without Compliance With S.67 Of CGST Act & S.100 CrPC: Patna HC Quashes ₹88.64 Lakh Tax Demand
The Patna High Court, while allowing a petition challenging a tax demand of ₹88,64,550.50, has observed that an inspection conducted under the BGST/CGST regime is legally unsustainable if not carried out in compliance with Section 67 of the BGST/CGST Act, 2017 read with Section 100 of the Code of Criminal Procedure, 1973. According to Section 67 of BGST/CGST Act, 2017, an inspection to...
GST Dept Expected To Empathetically Consider Assessees' Requests To Adjourn Personal Hearing On Medical Grounds: Delhi High Court
The Delhi High Court has observed that the Goods and Services Tax authorities are expected to empathetically consider an assessee's request for adjournment of personal hearing on medical grounds.A division bench of Justices Prathiba M. Singh and Rajneesh Kumar Gupta said the Department should not proceed to pass adverse orders in such matters.The development comes in a petition filed by...