GST Act | Can Time Limit To Adjudicate Show Cause Notice Be Extended By Notification Under S.168A? Supreme Court To Consider

The Supreme Court is to decide whether the time limit for adjudicating show cause notice and passing an order can be extended by the issuance of notifications under Section 168-A of the GST Act. This provision empowers the Government to issue notification for extending the time limit prescribed under the Act which cannot be complied with due to force majeure.“The issue that falls for...

Appeal Can't Be Dismissed Due To Procedural Delay When Assessee Has Complied With Statutory Requirements Including Pre-Deposit: Madras HC

The Madras High Court stated that appeal can't be dismissed due to procedural delay, when assessee has complied statutory requirements including pre-deposit. “The appeal should not be dismissed merely due to a procedural delay, especially when the petitioner has made an effort to comply with the statutory requirements, including the pre-deposit of 10% of the tax...

Tax Weekly Round-Up: February 17 - February 23, 2025

SUPREME COURTCharitable Trust's Registration For Income Tax Exemption To Be Decided Based On Proposed Activities & Not Actual Activities : Supreme CourtCase Title: COMMISSIONER OF INCOME TAX EXEMPTIONS VERSUS M/S INTERNATIONAL HEALTH CARE EDUCATION AND RESEARCH INSTITUTECase no.: SPECIAL LEAVE PETITION (CIVIL) Diary No. 19528/2018The Supreme Court reiterated that when a charitable...

If Goods Imported Into SEZ Are Not Used For Authorised Operations But Sold In Domestic Tariff Area, Duty Has To Be Paid: CESTAT

The New Delhi Bench of Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has stated that if goods imported into an SEZ are not used for the authorised operations but are sold in Domestic Tariff Area, duty has to be paid. Section 51 of the Special Economic Zones (SEZ) Act, 2005 states that the provisions of the SEZ Act will take precedence over any other...

Mere Wrong Availment Of Exemption Notification Does Not Mean That Availment Was Done To Evade Payment Of Central Excise Duty: CESTAT

The New Delhi Bench of Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has stated that mere wrong availment of exemption notification does not mean that availment was done to evade payment of central excise duty. The Bench of Dilip Gupta (President) and P. V. Subba Rao (Technical) has observed that, “Mere wrong availment of an Exemption Notification would not lead to...

S.197 IT Act | AO Must Form Prima Facie Opinion Regarding Taxability In India Before Rejecting Assessee's Application For Nil TDS: Delhi HC

The Delhi High Court has made it clear that before rejecting an assessee's application under Section 197 of the Income Tax Act 1961 for nil TDS or deduction of tax at a lower rate, the assessing officer must form a prima facie opinion regarding the assessee's taxability in India.Section 197(1) of the Act enables an assessee to make an application for a certificate requiring the deduction of...

Delhi HC Grants Relief To Foreigner Whose Rolex Watch Was Seized By Customs, Says Waiver Of Show Cause & Hearing In 'Standard Form' Not Lawful

The Delhi High Court has reiterated that authorities making a traveller waive show cause notice before confiscation of goods, etc. under Section 124 of the Customs Act 1962, on a mere proforma, is not lawful.A division bench of Justices Prathiba M. Singh and Dharmesh Sharma thus granted relief to a permanent resident of Hong Kong, whose Rolex wristwatch valued at ₹30,29,400/- was confiscated...

Designated Committee Under Sabka Vishwas Scheme May Reject Application For Compounding Tax Over Bogus Documents: Telangana High Court

A division bench of the Andhra Pradesh High Court has dismissed a writ petition filed by M/s Diwakar Road Lines challenging the rejection of an application to compound all previous service tax by way of a one-time settlement. The bench held that even though the statute does not prescribe for the rejection of any application, the committee may reject an application when the documents...

Central Govt Employee Cannot Change Destination Midway While Claiming Leave Travel Concession: Delhi High Court

The Delhi High Court has made it clear that in terms of the Central Civil Services (Leave Travel Concession) Rules, 1988 an employee cannot change travel destination midway through the journey and if due to some unavoidable circumstance it has been changed, the same has to be a destination which is en route.In the case at hand, LTC was originally sought for travel to Trivandrum, which...

Article 226 Can't Be Invoked Against An SCN Issued U/S 74 Of CGST Act At Preliminary Stage: Kerala High Court

The Kerala High Court stated that Article 226 cannot be invoked against a show cause notice issued under Section 74 of the CGST Act at preliminary stage. “Article 226 of the Constitution of India is not meant to be used to break the resistance of the Revenue in this fashion. In exercise of such jurisdiction, the High Court is required to refrain from issuing directions...

ITAT Cannot Overstep Its Authority By Deciding On Merits When It Had Already Concluded Appeal Was Not Maintainable: Bombay High Court

The Bombay High Court stated that ITAT cannot overstep its authority by deciding on merits when it has already concluded an appeal was not maintainable. The Division Bench of Justices M.S. Sonak and Jitendra Jain observed that “Once the ITAT concluded that the Appeal before it against the impugned communication/order was not “maintainable”, there was no question of...

AO Becomes 'Functus Officio' After Closure Of Assessment, Must Put Relevant Incriminating Material To Assessee To Re-Confer Jurisdiction: Delhi HC

The Delhi High Court has made it clear that after the closure of assessment proceedings, the Assessing Officer becomes 'functus officio' and to re-confer jurisdiction upon the AO to initiate re-assessment proceedings, relevant incriminating material ought to be put to the assessee.A division bench of Chief Justice Devendra Kumar Upadhyaya and Justice Tushar Rao Gedela made the observation...