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TMI Tax Updates - e-Newsletter
April 1, 2022

Case Laws in this Newsletter:

GST Income Tax Customs PMLA Service Tax Central Excise CST, VAT & Sales Tax



Highlights / Catch Notes

    GST

  • Rate of interest u/s 50(3) of the CGST Act, 2017 - where ITC has been availed and utilized wrongly reduced from 24% to 18% w.e.f. 1.7.2017 - Notification as amended vide Finance Act, 2022

  • Notifying common GST portal and e-way bill website. - in additions all functions under the CGST Act, 2017 (except e-invoice) shall be made through GST Portal - Notification as amended by Finance Act, 2022

  • Power to issue instructions or directions. - Power to commissioner - consequential amendment - Section 168 of CGST Act, 2017

  • Refund of tax. - Claim Form shall be prescribed - Power of proper officer to withheld the refund in certain cases - Relevant date in case of supply made to SEZ - Section 54 of CGST Act, 2017 amended

  • Collection of tax at source. - Due date of furnishing statement - Section 52 of CGST Act, 2017 amended

  • Interest on delayed payment of tax. - Interest on ITC wrongly availed and utilized - Section 50 of CGST Act, 2017 amended

  • Payment of tax, interest, penalty and other amounts. - Transfer of amount from one head to another and Power to impose restriction of utilization of ITC beyond certain limit - Section 49 of CGST Act, 2017 amended

  • Goods and services tax practitioners. - Consequential amendment pursuant to substitution of section 38 - Section 48 of CGST Act, 2017 amended

  • Levy of late fee. - Consequential amendments with regard to additions or deletion of returns - Section 47 of CGST Act, 2017 amended

  • Omitted - Procedure for furnishing return and availing input tax credit - Section 43A of CGST Act, 2017 omitted as scheme of availing ITC amended and this section never came into force

  • Omitted - Matching, reversal and reclaim of reduction in output tax liability. - Section 43 of CGST Act, 2017 omitted as scheme of availing ITC amended

  • Omitted - Matching, reversal and reclaim of input tax credit - Section 42 of CGST Act, 2017 omitted as scheme of availing ITC amended

  • Availment of input tax credit - Where tax is not paid by the supplier, ITC shall be reversed with applicable interest liability - Section 41 of CGST Act, 2017 Amended

  • Furnishing of returns (GSTR 3B or otherwise). - Various amendments in Section 39 of CGST Act, 2017

  • Communication of details of inward supplies and input tax credit - Auto-populated statement of ITC - Section 38 of CGST, 2017 substituted

  • Furnishing details of outward supplies (GSTR-1) - various amendments made in Section 37 of the CGST Act, 2017

  • Credit and debit notes. - Time limit for issuance of Credit Note modified - Section 34(2) of CGST Act, 2017 amended

  • Cancellation or suspension of registration. - Power of proper officer in case of default in furnishing the return from the due date within prescribed time lime - Clauses (b) and (c) of the Section 29(2) of CGST Act, 2017 amended

  • Eligibility and conditions for taking input tax credit. - ITC cannot be claimed after the thirtieth day of November following the end of financial year to which such invoice or debit note pertains or furnishing of the relevant annual return, whichever is earlier - Section 16 of CGST Act, 2017 amended

  • Eligibility and conditions for taking input tax credit. - Amount of ITC, even if communicated u/s 38, shall not be available if the same is restricted - Section 16 of CGST Act, 2017 as amended

  • Territorial Jurisdiction - proper officer or not - Registration was assigned to Central GST Officer - SCN was issued by the State GST officer - the distribution of work for administrative convenience was made - it is not a case that the state officer lacks inherent jurisdiction but it is a case where the jurisdiction has been exercised by the state officer in the absence of any objection or pointing out by the petitioner that the case has been assigned to a central officer - the impugned show cause notice and the impugned assessment order do not suffer from any inherent lack of jurisdiction - HC

  • Input Tax Credit - ITC on Gift - GST paid on inputs/input services procured by the appellant to implement the promotional scheme under the name 'Buy n Fly' - as per the provisions of the CGST Act/TNGST Act 2017 more precisely, Section 17 (5) of the Act, the gifts or rewards given without consideration even though they were given for sales promotion do not qualify as inputs for the purposes of Credit, since no GST is paid on its disposal. Therefore, the input tax credit on the inputs and input services involved in the goods and services used for the purpose of reward is not available for the appellant and accordingly the ruling given by the Advance Ruling Authority of Tamil Nadu requires no intervention. - AAAR

  • Classification of supply of services - intermediary services or not - It is very clear from the applicant's submissions that they are not providing any services on its own account. The designs are provided to the third party vendors on behalf of the overseas customers of the applicant. The service provided by them is to their overseas customers and as per the requirements and directions of its overseas principals - thus the applicant is satisfying all the conditions of an intermediary and we have no hesitation in holding that, the applicant is supplying intermediary services as per the relevant provisions of the IGST Act, 2017 - AAR

  • Levy of GST - classification of "Interest" portion of equated installments under Annuities Model - the value of supply shall include interest or late fee or penalty for delayed payment of any consideration for any supply. Therefore all the monies paid to the contractor by the applicant including the interest on delayed payments is liable to tax under CGST Act, 2017 under this provision. - AAR

  • Classification of services - rate of GST - Ready to Eat popcorn sold in retail packages - when a specific entry is available for enumerating the commodity ‘RTE popcorn’ to relegate it to the orphanage of the residuary entry will be against the principle of classification as held by Hon’ble Apex Court in the above precedents. Hence RTE popcorn is classifiable under tariff head ‘1904’ - Liable to GST @18% - AAR

  • Income Tax

  • Clarification with respect to relaxation of provisions of rule 114AAA of Income-tax Rules, 1962 prescribing the manner of making Permanent Account Number (PAN) inoperative - Circular

  • Validity of Reopening of assessment u/s 147 - When pursuant to an information received from the Assistant Director of Income Tax (Inv.), Unit-3 (3), Kolkata, the assessing officer has conducted an investigation, has gone through the income tax return and other related documents of the assessee and has observed that the assessee is a beneficiary of receiving bogus accommodation entries and he has found a reason to believe that the income has escaped assessment in respect of the assessee, we do not find any force in the submission made on behalf of the petitioner that the assessing officer has acted on a report of the Assistant Director of Income Tax (Inv.), Unit-3 (3), Kolkata and he has not recorded his own reasons to believe, and thus the same is rejected. - HC

  • Documents seized during a search and seizure Retained by the Department - As a taxing statute, strict interpretation is to be adopted and that being so, recourse by the assessee to the provisions of the Constitution by filing a special leave petition before the Supreme Court cannot be regarded as 'a proceeding under this Act'. The statutory authority lost its power to grant further authorisation to retain the documents. Therefore, even on this count, the respondents are not authorised or justified in retaining the documents of title seized by them under section 132 of the Act. - HC

  • Refund of tax paid as advance tax after opting for VDIS scheme - Since he did not submit any return under section 139 before this scheme, therefore involuntarily disclosed income, he ought to have disclosed his entire income. He cannot be permitted to commit mischief with the Act or VDIS by disclosing part of his income in VDIS and thereafter part of his income by submitting belated return - HC

  • Assessment u/s 158BC - period of limitation - Though the learned counsel for the appellant /Revenue contended that there is no time limit prescribed in the statute for completion of block assessment in respect of persons other than the person on whom search was made and therefore, the notice issued under section 158BD of the Act by the Assessing Officer is valid, this court is not inclined to accept the same, as it is settled law that where limitation is not prescribed, action must be taken within reasonable period. - HC

  • Assessment u/s 144B - Faceless Assessment - request for personal hearing or to make oral submissions, on approval of the request, the personal hearing shall be conducted exclusively through Video Conferencing was not honoured - As observed by Delhi High Court, the use of the word 'may' u/s 144B is to be construed as 'shall', if otherwise the requirements under the said Circular are complied with. - Matter restored back - HC

  • Denial of exemption u/s.54 - purchasing a new house in the name of the assessee’s son - The principle of following a view in favour of the assessee when contrary views are available, applies to the authorities acting under a neutral High Court, namely, which has not expressed any opinion – for or against - on that point. Once the jurisdictional High Court decides a particular issue in a particular manner, that manner has to be mandatorily followed by all the authorities acting under it so long as it holds the field and is not deactivated by the Hon’ble Supreme Court - we bound to follow the view taken by the Hon’ble jurisdictional High Court. - Exemption was rightly denied - AT

  • Validity of Survey proceedings u/s 133A conducted in absence of assessee - Manner of conducting survey u/s 133A - There was a time gap of more than 3 ˝ years between the survey operation and the assessee giving her statement before the Income Tax Authorities. If the plea taken by the assessee is correct, the assessee should have brought it to the notice of the authorities her grievance in respect of the manner of conducting the survey or manner of valuing the excess stock or the details about the gold ornaments that were given for repairs/re-modelling by the customers. - plea taken by the assessee rejected - AT

  • Reopening of assessment u/s 147 - Time limit for notice to be issued u/s 149 - escaped income from an asset outside India - there is no bar on the retrospectivity of a statute - Our humble understanding is that so far as escaped income from an asset outside India is concerned, any completed assessment can be reopened as long as sixteen years have not elapsed from the end of the relevant assessment year. Admittedly, that is not the position in the present case, as the relevant assessment year was completed on 31st March 2000, and the assessment was reopened on 27th March 2015. The plea of the Assessing Officer is thus indeed well taken. - AT

  • Nature of expenditure - Disallowance of repair and maintenance charges - The assessee has taken a plea that no new asset is created or no benefit of enduring nature has been derived. We do not see any rebuttal on this score from the revenue. The Assessing Officer has merely proceeded on a hypothesis of such expenditure being capital in nature without showing any justifiable grounds for doing so. The Assessing Officer has capitalized such expenditure without showing any reasonable grounds - CIT(A) rightly allowed the claim - AT

  • Claim of deduction u/s 37(1) - Security deposit written off - security wa paid for obtaining shops on lease - the assessee be allowed to claim the loss incurred in forfeiture of security deposits given for lease of rental premises as the expenses are incurred wholly and exclusively for the purpose of business - AT

  • Disallowance of Expenses u/s. 40(a)(ia) - Non deduction of TDS on commission - Pricing mechanism fixed by the Government of India, it is clear that the assessee has merely paid the purchase price as agreed. However, only to monitor the pricing, the cost components are separately shown so as to reimburse the assessee for any loss incurred by it in execution of PSS/MIS - Since the amount paid by the assessee to the Dist/State Level Cooperatives is only the purchase price and not in the nature of commission, no disallowance under section 40(a)(ia)is called for. - AT

  • Exemption u/s 11 - provisions of section 2(15) - If the assessee has to claim relief under charity, it has to carry out charitable activities of relief to poor or education or medical relief. In the case in hand, the assessee neither carried out any activity relating to relief to poor nor education or medical relief. - If payment of a small amount is treated as charity, then everyone who pays a small amount of donation may claim charity. The assessee can claim deduction under section 80G for the above payment of donation and not exemption under section 11 of the Act. - AT

  • Customs

  • Payment of duty, interest, penalty, etc. under the Customs Act, 1962 shall be made through electronic cash ledger w.e.f. 1.6.2022 - Notification

  • Benefit of exemption - second-hand slurry seal machine for filling up cracks in roads (slurry paver) - import of There is nothing on record to indicate that the proposed project was not intended for permissible upgradation. - There is no reason to conclude that the road construction, as intended in the exemption notification, is limited to ‘black topping’ of surface or that the importer is likely to indulge in ineligible activities during the period of lock-in prescribed in the exemption notification. The importer has complied with all the conditions specified in the said notification and it would be incorrect in law to deny exemption allowed by the first appellate authority - AT

  • Provisional release of goods - API supari - Even if customs authorities felt obliged with, or without, justification or authority, to protect domestic consumers of arecanut/supari, the option of return to sender should have been permitted in circumstances of denial of recourse to section 110A of Customs Act, 1962 on grounds other than that which legitimized seizure. Therefore, it is only equitable that the prayer for issue of ‘detention certificate’ for enabling waiver of demurrage is allowed. - AT

  • Indian Laws

  • Linking of PAN with AADHAR - Amendment to the provisions of Income-tax Rules, 1962 for prescribing fees under section 234H of the Income-tax Act, 1961 - News

  • Service Tax

  • Validity of Show Cause Notice (SCN) - service tax is leviable on royalty paid on mining operations or not - issue is pending before the larger bench of the Supreme Court in a reference to 9 judge bench - If all the proceedings are stayed awaiting the reference judgment even before the adjudication has been completed, there is serious apprehension of the evidence and materials getting lost. We would therefore not like to stop the department from even carrying out the adjudicating process on the petitioner’s expectation that the larger bench of 9 judge may reverse the decision in the case of Kesoram Industries. - HC

  • Levy of service tax - Construction of Residential Complex Services/ Construction of Commercial Complex Services - Department has not brought out any independent facts or evidence as who is the service receiver, whether the cash receipts shown in the xls. Files pertaining to the service component only or otherwise and no corroborative evidence produced in support of details mentioned in the said xls. Files. In the present matter collection of a huge amount of cash in respect of provisions of services involved. However not a single rupee of unaccounted cash was found during the search conducted by the income tax. - Entire demand of service tax as proposed in the show cause notice is not sustainable. - AT

  • Central Excise

  • Classification of goods - PCB assembly, also known as T.V. chassis - As per section note 2 of section 16 of the Central Excise Act, the goods were rightly classifiable as parts and merit classification under heading 8529 of the Central Excise Tariff Act 1975. As it has been held that the goods in question are not complete TV sets, it has been cleared under SKD or CKD condition, therefore, the classification under chapter heading 8528.00 at Sl. No. 204 of the notification is not applicable to the facts of the case. - AT

  • VAT

  • Mandatory pre-deposit - Vires of the second proviso to Section 84 (1) of West Bengal Value Added Tax Act, 2003 - right to appeal - Mere filing of an appeal does not suspend the liability so determined. The liability would subsist until it is set aside or modified. Therefore, to state that the 15% is a compulsory extraction, is incorrect, as it is only a measure or quantification for the appeal being entertained - the second proviso to Section 84(1) is neither discriminatory nor violative of Article 14 of the Constitution of India and accordingly. - HC

  • Levy of tax - renewal of software licences - the service tax collected on this transaction of renewal of software licence at 10.30% and remitted to the Central Government cannot be construed as transfer of right to use the goods, more particularly, when the goods are not available with the respondent. When the original goods are not available with the respondent, the aspect theory and the divisibility of the contract in furtherance of deemed sale as envisaged under Article 366 (29-A) of the Constitution, is only a myth and is not valid in the eye of law - - HC

  • Validity of reassessment order - actual suppression of turnover - if an inspection is not conducted in the business premises of the petitioner, the sales suppression could not have come to light. In such event, the third respondent is wholly justified in imposing double the sale suppressed amount in the revised assessment proceedings together with 150% of penalty. The appellate authority as well as the Tribunal have also dealt with this aspect and refused to accede to the plea of the petitioner. - HC


Articles


Notifications


Circulars / Instructions / Orders


News


Case Laws:

  • GST

  • 2022 (3) TMI 1372
  • 2022 (3) TMI 1371
  • 2022 (3) TMI 1370
  • 2022 (3) TMI 1368
  • 2022 (3) TMI 1367
  • 2022 (3) TMI 1366
  • 2022 (3) TMI 1365
  • 2022 (3) TMI 1364
  • 2022 (3) TMI 1363
  • 2022 (3) TMI 1362
  • Income Tax

  • 2022 (3) TMI 1361
  • 2022 (3) TMI 1360
  • 2022 (3) TMI 1359
  • 2022 (3) TMI 1358
  • 2022 (3) TMI 1357
  • 2022 (3) TMI 1356
  • 2022 (3) TMI 1355
  • 2022 (3) TMI 1354
  • 2022 (3) TMI 1353
  • 2022 (3) TMI 1352
  • 2022 (3) TMI 1351
  • 2022 (3) TMI 1350
  • 2022 (3) TMI 1349
  • 2022 (3) TMI 1348
  • 2022 (3) TMI 1347
  • 2022 (3) TMI 1346
  • 2022 (3) TMI 1345
  • 2022 (3) TMI 1344
  • 2022 (3) TMI 1343
  • 2022 (3) TMI 1342
  • 2022 (3) TMI 1341
  • 2022 (3) TMI 1340
  • 2022 (3) TMI 1339
  • 2022 (3) TMI 1338
  • 2022 (3) TMI 1337
  • 2022 (3) TMI 1336
  • 2022 (3) TMI 1335
  • 2022 (3) TMI 1334
  • 2022 (3) TMI 1333
  • 2022 (3) TMI 1332
  • 2022 (3) TMI 1331
  • 2022 (3) TMI 1330
  • 2022 (3) TMI 1329
  • 2022 (3) TMI 1328
  • 2022 (3) TMI 1311
  • 2022 (3) TMI 1310
  • Customs

  • 2022 (3) TMI 1327
  • 2022 (3) TMI 1326
  • 2022 (3) TMI 1325
  • PMLA

  • 2022 (3) TMI 1324
  • Service Tax

  • 2022 (3) TMI 1369
  • 2022 (3) TMI 1323
  • 2022 (3) TMI 1322
  • 2022 (3) TMI 1321
  • 2022 (3) TMI 1320
  • Central Excise

  • 2022 (3) TMI 1319
  • 2022 (3) TMI 1318
  • 2022 (3) TMI 1317
  • 2022 (3) TMI 1316
  • CST, VAT & Sales Tax

  • 2022 (3) TMI 1315
  • 2022 (3) TMI 1314
  • 2022 (3) TMI 1313
  • 2022 (3) TMI 1312
 

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