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Home e-Newsletters Index Year 2021 April Day 22 - Thursday

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TMI Tax Updates - e-Newsletter
April 22, 2021

Case Laws in this Newsletter:

GST Income Tax Customs Corporate Laws Insolvency & Bankruptcy PMLA Service Tax Central Excise CST, VAT & Sales Tax



Highlights / Catch Notes

    GST

  • Input Tax Credit - Inputs - Promotional Products/Materials & Marketing items used by the Appellant in promoting their brand & marketing their products - The goods procured on payment of GST which are disposed of by way of gifts are barred from being eligible for input tax credit in terms of Section 17(5)(h), even if they are used in the course or furtherance of business. Therefore, we hold that input tax credit is not eligible on the promotional items distributed as give away items on the grounds that the same is blocked by virtue of the provisions of Section 17(2) and Section 17(5)(h) of the CGST Act. - AAAR

  • Provisional attachment - We are unable to accept the contention of the respondent that merely because proceedings were pending/concluded against another taxable entity, that is GM Powertech, the powers of Sections 83 could also be attracted against the appellant. This interpretation would be an expansion of a draconian power such as that contained in Section 83, which must necessarily be interpreted restrictively. - SC

  • Maintainability of writ petition before the High Court - Provisional attachment - clearly the order passed by the Joint Commissioner as a delegate of the Commissioner was not subject to an appeal under Section 107(1) and the only remedy that was available was in the form of the invocation of the writ jurisdiction under Article 226 of the Constitution. The High Court was, therefore, clearly in error in declining to entertain the writ proceedings. - SC

  • Provisional attachment - Section 83 of the HPGST Act - once the final order of assessment is passed under Section 74 the order of provisional attachment must cease to subsist. Therefore, after the final order under Section 74 of the HPGST Act was passed on 18 February, 2021, the order of provisional attachment must come to an end. - SC

  • Seeking inter-State IGST invoice instead of intra-State CGST/SGST invoice - place of supply on cargo handling services - Since the CBIT has already provided its clarification, a direction is now issued to the PPT to comply with the said clarification issued by the CBIT and make amendment with respect to all the Petitioner's invoices from July 2017 onwards incorporating the levy of 18% IGST instead of 9% CGST and 9% SGST in compliance of the provision of the IGST Act. - HC

  • Seeking Bail - Wrongful availment or utilization of input tax credit or refund of tax - Supply of goods and services or both without issue of any invoice - Bail granted, subject to conditions - The petitioner shall cooperate with the investigation of the case. Both the prosecution and the petitioner are directed to sit across the table and beside the amount payable by him towards GST. - HC

  • Income Tax

  • Disallowance being provision made for warranty expenses - The assessee’s warranty provision equally lack in the proper accounting / calculating factors and, therefore, the claim of the assessee is not sustainable. The CIT (Appeals) has rightly rejected the set off of actual warranty expenses on payment basis as well as warranty expenses on payment basis. - AT

  • Income from other sources - advance against share capital received during the year - The tax authorities invoked the provision u/s 56(2)(viib) without bringing on record whether the investment received by the assessee are genuine or not. We notice that the provision introduced by the legislature in order to curb the practice of generation and circulation of unaccounted money. In the current case, the tax authorities have not brought on record any generation or circulation of unaccounted money. - AT

  • Estimation of income - bogus purchases - As average of gross profit for each of the years works out to only 0.6% for the assessee. But it is pertinent to note that assessee had made purchases in the instant case from grey market thereby having saving in VAT as well as incidental profit element thereof. Considering the totality of these facts and circumstances and also considering the report of the task force submitted to Department of Commerce, we deem it fit and appropriate to estimate the profit percentage at 1% of value of purchases - AT

  • Customs

  • Validity of SCN - Undervaluation - violation of intellectual property rights of certain third parties - The petitioner's counsel strongly asserts that the document No.3 in annexure A is not the manifest filed by the petitioner but one filed by a third party. If that be so, it is a point to be canvassed at the time of adjudication. The petitioner has come to the Court prematurely - As of now, there are no violation of principles of natural justice. - HC

  • Service Tax

  • Attachment of petitioner's Bank Account - non-payment of service tax - Since the petitioner is a local body, certainly, relief can be granted in respect of the penalty portion. But then, the petitioner has to necessarily clear the service tax liability together with interest. - HC

  • Levy of Service Tax - fees collected by the University - It is true that authorisation is given to the University to maintain the property. But then, there is clear commercial element in these transactions. The University is renting the property to other institutions and collecting rent from them. Therefore, the second respondent was justified in raising demand for the said service.- HC

  • Levy of service tax - reimbursable expenses - appellant charge 10% of the actual wages - if on any issue there is a legal dispute which involved interpretation of law the mala-fide intention or suppression of fact with intent to evade payment of service tax cannot be attributed to the assessee - On this ground also the extended period of demand was not invokable. - AT

  • Export of service or not - Whether the Appellant is liable to pay service tax on employee-cost charged received from its overseas group companies? - - In the Present case, both the conditions (of export) are fulfilled hence the services rendered by the appellant cannot be taxed under Business Support Service - AT

  • VAT

  • Amnesty Scheme - appeal was filed by the Revenue and was pending - The assessee is entitled to get the benefit of the Amnesty Scheme for the year 2014-15 without reference to the pending appeal filed by the State for the year 2012-13 - the appellant is eligible to opt for the Amnesty Scheme, 2020 for settling arrears of the assessment year 2014-15 without including the amount that may fall in arrears for the year 2012-13. - HC


Articles


Notifications


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Case Laws:

  • GST

  • 2021 (4) TMI 839
  • 2021 (4) TMI 838
  • 2021 (4) TMI 837
  • 2021 (4) TMI 836
  • 2021 (4) TMI 834
  • 2021 (4) TMI 832
  • 2021 (4) TMI 831
  • 2021 (4) TMI 798
  • Income Tax

  • 2021 (4) TMI 817
  • 2021 (4) TMI 816
  • 2021 (4) TMI 815
  • 2021 (4) TMI 812
  • 2021 (4) TMI 809
  • 2021 (4) TMI 808
  • 2021 (4) TMI 807
  • 2021 (4) TMI 806
  • 2021 (4) TMI 805
  • 2021 (4) TMI 802
  • 2021 (4) TMI 801
  • 2021 (4) TMI 800
  • 2021 (4) TMI 799
  • Customs

  • 2021 (4) TMI 829
  • 2021 (4) TMI 818
  • Corporate Laws

  • 2021 (4) TMI 835
  • 2021 (4) TMI 826
  • Insolvency & Bankruptcy

  • 2021 (4) TMI 814
  • 2021 (4) TMI 813
  • 2021 (4) TMI 803
  • PMLA

  • 2021 (4) TMI 821
  • Service Tax

  • 2021 (4) TMI 833
  • 2021 (4) TMI 828
  • 2021 (4) TMI 825
  • 2021 (4) TMI 823
  • 2021 (4) TMI 819
  • 2021 (4) TMI 811
  • 2021 (4) TMI 810
  • Central Excise

  • 2021 (4) TMI 824
  • 2021 (4) TMI 804
  • CST, VAT & Sales Tax

  • 2021 (4) TMI 830
  • 2021 (4) TMI 827
  • 2021 (4) TMI 822
  • 2021 (4) TMI 820
 

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