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Highlights Highlights, Income Tax, GST, Import Eport and Corporate Laws

GST: Revocation of the cancellation of his GST registration - The impugned show notice dated 5.12.2021 fails to disclose the reason for proposing cancellation of the petitioner’s GST registration and therefore, the impugned order cancelling the petitioner’s registration falls foul of the principles of natural justice. - HC

GST: Cancellation of GST registration of petitioner with retrospective effect - it is deemed apposite to direct that the cancellation of petitioner’s GST registration shall take effect from 31.03.2022 (i.e. with Prospective Effect). - However, this would not preclude the concerned authorities from instituting any proceeding if it is found that the petitioner has violated any provisions of the Statute or is liable to pay any tax, interest or liability. - HC

GST: Recovery of GST - Validity of garnishee proceeding - violation of principles of natural justice - the respondent authorities have not issued any notice in terms of Section 79(1) of CGST Act, 2017 to the assessee to submit his reply/explanation to the demand notice for delay payments. Instead, the respondent Authorities have straight away issued garnishee proceedings under Section 79 of CGST Act, 2017, by which the petitioner’s bankers were directed to debit the alleged tax dues, which is referred to 73 of the CGST Act, 2017. - garnishee proceedings quashed - HC

GST: Refund of amount deposited under a mistake - the period of limitation for applying for a refund as prescribed u/s 54 of the CGST Act, would not apply where GST is not chargeable and it is established an amount has been deposited under a mistake of law. - HC

GST: Cancellation of GST registration of petitioner - The impugned order is being passed mechanically and without application of mind - In the present case, the manner in which the show cause notice is issued and the impugned order is passed, would only assist the petitioner as it appears that the respondents had materials which could have formed the basis of the show cause notice, but the same was not informed to the petitioner and / or no attempt was made to remove the defect in the show cause notice, for reasons best known to the designated officer. - order of cancellation set aside - HC

I.Tax: Assessment u/s 153A - profit from the sale of the plot - additions in the hands of broker / commission agent - unexplained and undisclosed income of the appellant - In the absence of any material forthcoming on record to show that any addition was made by the revenue in the hands of the vendor-Company or its Managing Director for receiving any unaccounted for cash amount of money in respect of the transaction of sale of Plot, no addition can be made in the hands of Broker - HC

I.Tax: Estimation of income - bogus purchases - When the Tribunal has thought it fit to reduce the disallowance at 6% from 12.5%, the Tribunal had before it the facts which were duly analysed by it. No interference is called for in the said conclusion and findings of the Tribunal in the present appeal by this court. - HC

I.Tax: Income accrued in India - royalty receipts - what is sold is the copyrighted software which is shrink-wrapped - the consideration received on the sale of off-the-shelf, shrink-wrapped software to Indian distributors and resellers would not constitute royalty in terms of the India-UK Double Taxation Avoidance Agreement. - no substantial question of law arises - HC

I.Tax: Additions towards unexplained liability as loan taken from Reliance Capital Ltd. - The loan from Reliance Capital was taken against property belonging to the party other than the assessee company but that does not make the transaction tainted. - the increase in outstanding balance of short term borrowings was merely due to reclassification of part of loan from long term liability to short term liability. - No additions - AT

I.Tax: Validity of reassessment against representative assessee - representative assessee/agent in relation to a Non-resident u/s 163 - The notice u/s. 143(2) of the Act in the name of a non-existing entity itself makes the assessment null and void. Further, the assessment made in the name of KRPL as representative assessee of MVL without a separate order u/s. 163 of the Act, makes the assessment null and void. - AT

I.Tax: Additions u/s 43CA - Consideration for immovable property less than the stamp duty value - Large number of allottees shows the bona fide of the modus operandi of the assessee. When tested on the touchstone of preponderance of probabilities, the bona fide transaction and contractual commitment with Hemlata way back in FY 2006-07 cannot be doubted merely to invoke and apply a prospective law of S. 43CA. - Additions deleted - AT

Cus.: Revocation of Customs Broker License - failure to collect the KYC forms - In the facts of this case, the revocation of the license came into effect on 04.02.2019 and a period of more than 4 ˝ years has already lapsed. The revocation of the license which is in operation since 2019 i.e., almost 4 ˝ years is itself a severe punishment and will serve as a reprimand to the Appellant to conduct its affairs with more alacrity. - CHA/CB permitted to apply for new license - HC

Cus.: Demand of duty with interest - Valuation - Having accepted the enhanced value and paid duty on the same and not having re-exported the goods as was ascertained from the Advocate during the course of the hearing, there are no reason to disagree with the findings as far as valuation is concerned - while confirming the demand of duty and interest, levy of penalty and confiscation set aside - AT

Cus.: Levy of penalty u/s 114(iii) and 114AA against Customs Broker (CB) - the department has failed to establish that the appellants have connived or abetted in the overvaluation of goods and attempted export of the same. There is no iota of evidence to establish that appellants had falsified any documents. - No penalty - AT

Cus.: Seeking provisional release of seized goods - non-paper materials in waste paper consignments being imported from other countries - review of the policy by issuance of new Office Memorandum (O.M.) - Since new OM would be the governing law which provides for re- export and quantified penalty for local disposal, the Department shall be free to take legal undertaking from the importer to comply with conditions of disposal of the goods under new OM. - AT

Cus.: Classification of goods proposed to be imported - due to the exclusion clause the said label or similar articles in strip would not be covered under Heading 58.06 - Rolls made of Polyester, Taffeta, Satin etc. - The products as detailed in Table-A merit classification as articles similar to label of textile material in strips under Heading 58.07 - AAR

S.Tax: Abatement of appeal upon death of appellant - Rule 22 of the Customs, Excise and Service Tax Appellate Tribunal (Procedure) Rules, 1982 - on the death of the appellant, the proceedings will be abated unless an application is made for continuance of such proceedings. In this case, no such application is made. As the Death has occurred on 12.05.2019, nearly four years passed already. - the appeal stands abated - AT

S.Tax: Classification of services - the job performed by the appellant is loading, unloading of goods at port, cutting of bags, spreading of zola, cleaning of jetty etc. at Kandla port to various clients. - the service which the appellant had provided is particularly work at port and not Manpower Recruitment or Supply Agency Service to the client. - the appellant’s service is correctly classifiable under cargo handling service as claimed by the appellant and not under manpower recruitment or supply agency service as alleged by the Revenue. - AT

C.Ex.: Condonation of delay in filing revision application - Exclusion time spend for pursuing the appeal before CESTAT (wrong forum) - The entire issue from the angle that the petitioner had not only bonafidely file its appeal before the forum which lacked jurisdiction but pursued the same under a bonafide belief, the order dated 23.09.2004 as passed by respondent No. 1 is quashed being not sustainable - Matter restored back - HC

C.Ex.: CENVAT Credit - imported scrap - Since, the DRI has withdrawn all the records, the Appellants cannot be expected to produce documents showing transport of the imported scrap to the Appellants’ factory - revenue could not establish that the appellant have not received the input in their factory, hence the demand of Cenvat credit in the present case is not sustainable. - AT

Indian Laws: Validity of Arbitral Award - determination of loss / award - Hudson’s formula like other formulae, which are only rough approximations of the cost impact of unabsorbed overhead, should be applied with great care and caution to ensure fair and just computation. - Arbitral tribunal in the present case has given complete go by to these principles well in place, overlooked care and caution required and taken a one-sided view grossly and abnormally inflated the damages. - SC

GST: Levy of penalty for discrepancy in E-way Bill - E-way bills generated without completely filling Part B - The object of circular dated 14.09.2018 was that in case of circumstances as detailed in the circular, which were procedural in nature and there no intention of misleading the transfer of goods, the proceedings should not have been initiated u/s 129 of HGST/CGST Act. Apart from not mentioning number of the vehicle in Part B, all the other documents have been shown by the driver of the vehicle. - Order set aside, a penalty of Rs. 500/- imposed - HC

I.Tax: TP Adjustment - comparable selection - Clearly, since according to the Tribunal the segmental information was not available, the comparables were ordered to be excluded. We are of the opinion that there is no error in the approach adopted by the Tribunal, which is otherwise in line with the view taken by the coordinate bench. - HC

I.Tax: Addition u/s. 56(2)(vii)(c) - additional 82,200 shares allotted to assessee due to renouncement of rights by wife & father of the assessee - the aim and intention behind amending the provision of Sec. 56 is to prevent the practice of transferring unutilized shares at a price which are allotted for the first time by way of right shares. The amendment is therefore never meant to aim the “fresh issue” or “fresh allotment” of shares by a company. - ITAT rightly deleted the additions - HC

I.Tax: Rectification of mistake - adjustment made u/s 143(1)(a)(vi) to the returned income in respect of presumptive income declared u/s. 44AD - the Intimation, making adjustment by invoking clause (vi) of section 143(1)(a), is evidently debarred as violating the prescription of Instruction No.10/2017, which is binding on the Departmental Officers. - AT

More Highlights

Articles Articles, Tax Laws, GST

⇒ REMEDIES AGAINST THIRD PARTY UNDER IBC

⇒ Cenvat Credit available on construction service for renovation, modernization upgradation of existing plant

⇒ DEPRECIATION ON ‘ATM’

⇒ Not carrying valid documents during transit will be considered a deliberate act of tax evasion

⇒ REJECTION OF CLAIM OF INTEREST ON REFUND UNDER CUSTOMS ACT, 1962

⇒ Finally, some relaxation to Charitable Organisations under Income Tax; ITR-7, 10B & 10BB for AY 23-24 deadline extended, much ahead of time

⇒ Relief to Petitioner in case where Show Cause Notice does not clearly indicate reasons for which registration is cancelled

⇒ Post registration compliances for a Private Limited Company

⇒ Fitting of electrical appliances is not covered under works contract

⇒ RECENT DEVELOPMENTS IN GST

More Articles

Notifications Notifications

FTP - Extension of RoDTEP scheme for exports made from 01.10.2023

IGST Rate - Category of Supply of Services on which integrated tax will be payable under reverse charge mechanism (RCM) under IGST Act - Entry S.No. 10 omitted - Notification No. 10/2017- Integrated Tax (Rate) dated 28.06.2017 amended to implement decisions of the 50th GST Council.

IGST Rate - Exemptions on supply of services under IGST Act - Services received from a provider of service located in a non- taxable territory - Seeks to amend notification No. 09/2017- Integrated Tax (Rate) dated 28.06.2017 to implement decisions of the 50th GST Council.

IGST Rate - Rates for supply of services under IGST Act - Transport of goods in a vessel - Seeks to amend notification No. 8/2017- Integrated Tax (Rate) dated 28.06.2017 to implement decisions of the 50th GST Council.

IT - Income-tax (Twenty first Amendment), Rules, 2023

CGST - Special procedure to be followed by a registered person engaged in manufacturing of the goods - Additional records to be maintained by the registered persons manufacturing the goods mentioned in the Schedule - Seeks to amend Notification No. 30/2023-Central Tax, dated the 31st July, 2023

FTP - Export of Non-Basmati White Rice (under HS code 1006 30 90) to UAE through National Cooperative Exports Limited (NCEL)

IT - Central Government notifies non-banking financial companies (NBFCs) u/s 43B to be classified as Top Layer, Upper Layer and Middle Layer

IT - Central Government notifies non-banking financial companies (NBFCs) u/s 43D to be classified as Top Layer, Upper Layer and Middle Layer

Cus (NT) - Rate of exchange of one unit of foreign currency equivalent to Indian rupees - Supersession Notification No. 64/2023-Customs(N.T.), dated 6th September, 2023

SEBI - Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) (Fourth Amendment) Regulations, 2023

IT - Exemption from specified income U/s 10(46) – Notifies ‘Uttar Pradesh Expressways Industrial Development Authority’

SEZ - Central Government de-notifies an area of 1.8687 hectares of the Special Economic Zone, thereby making the total area of the Special Economic Zone as 17.5866 hectares at Village Attipra, Taluk and District Thiruvananthapuram in the state of Kerala

IBC - Insolvency and Bankruptcy Board of India (Insolvency Resolution Process for Corporate Persons) (Second Amendment) Regulations, 2023

IBC - Insolvency and Bankruptcy Board of India (Model Bye-Laws and Governing Board of Insolvency Professional Agencies) (Amendment) Regulations, 2023

More Notifications

Circulars/ Public Notices Circulars/ Public Notices

SEBI - Extension of timelines (i) for nomination in eligible demat accounts and (ii) for submission of PAN, Nomination and KYC details by physical security holders; and voluntary nomination for trading accounts

DGFT - Implementation of the Trade Notice No. 07/2023-24 dated 08.06.2023 in reference to the pre-import condition under Advance Authorisation Scheme

SEBI - Redressal of investor grievances through the SEBI Complaint Redressal (SCORES) Platform and linking it to Online Dispute Resolution platform

Customs - Nomination in respect of U.S. Department of Justice's Intellectual Property Crimes Enforcement Network (IPCEN): Invitation for CBIC

DGFT - De-listing of agencies authorized to issue Certificates of Origin- (Non Preferential) from Appendix 2E of FTP, 2023

Customs - Implementation of Ex-Bond Shipping Bill in ICES 1.5

Customs - Order under rule 5 of the Customs (Assistance in Value Declaration of Identified Imported Goods) Rules, 2023 for the Linear Alkyl Benzene (LAB)

Income Tax - Extension of timelines for filing of Form 10B/10BB and Form ITR-7 for the Assessment Year 2023-24

SEBI - Regulatory Reporting by AIFs

Customs - Norms for posting of officers and benchmark performance criteria while granting exemption from payment of Cost Recovery Charges (CRC) at Air Freight Stations (AFS)

SEBI - Board nomination rights to unitholders of Real Estate Investment Trusts (REITs)

SEBI - Board nomination rights to unitholders of Infrastructure Investment Trusts (InvITs)

Customs - Standard Operating Procedures (SOP) regarding monitoring of Export obligation fulfilment under EPCG and Advance authorization scheme-Reg.

SEBI - Clarification regarding investment of Mutual Fund schemes in units of Corporate Debt Market Development Fund

Customs - Streamlining the process of receiving amendment request of out of charged Bill of Entry in the ACC, Import Commissionerate –Reg.

More Circulars

News News, PIB

⇒ Advisory: Temporary /Short Period Pause in e-Invoice Auto Population into GSTR-1

⇒ Extension of the validity of FCRA registration certificates

⇒ IICA-UNICEF conduct workshop on Business Responsibility & Sustainability Reporting (BRSR) in New Delhi

⇒ Government extends support under Scheme for Remission of Duties and Taxes on Exported Products (RoDTEP) till 30th June 2024

⇒ Issuance Calendar for Marketable Dated Securities for October 2023 - March 2024

⇒ Calendar for Auction of Government of India Treasury Bills (For the Quarter ending December 2023)

⇒ Government’s Borrowing plan for Second Half of FY 2023-24

⇒ CBDT notifies changes to Rule 11UA in respect of ANGEL TAX

⇒ Claims of more than 10,000 MSMEs accepted under Vivad se Vishwas-I scheme since launch

⇒ Auction for Sale (re-issue) of (i) ‘6.99% GS 2026’, (ii) ‘7.17% GS 2030’, (iii) ‘7.18% GS 2037’ and (iv) ‘7.25% GS 2063’

⇒ A Customer Centric Approach-Navigating the Path to Excellence in Customer Service (Speech by Shri Swaminathan J, Deputy Governor, Reserve Bank of India - September 21, 2023 - at the Conference on Customer Service held in Mumbai)

⇒ International Seminar on Digital Public Infrastructure: Enabler for Financial Inclusion & Productivity Gains, organised in New Delhi

⇒ India’s Financial Sector - From Exuberance to Resilience (Speech delivered by Michael Debabrata Patra, Deputy Governor, Reserve Bank of India - September 18, 2023 - at the 16th SEACEN-BIS High Level Seminar hosted by the National Bank of Cambodia at Seim Reap, Cambodia)

⇒ Draft Master Direction on Treatment of Wilful Defaulters and Large Defaulters

⇒ India wins bid to host 17th International Congress on the Chemistry of Cement

More News

 

Latest Case Laws Latest Case Laws

 

Jiva Seva is Shiva Seva:
Service to humanity is Service to God

May I be born again and again, and suffer thousands of miseries so that I may worship the only God that exists, the only God I believe in, the sum total of all souls—and above all, my God the wicked, my God the miserable, my God the poor of all races, of all species, is the special object of my worship.

- Swami Vivekananda, CW, 5:137

 

 

 

F: TDS for imported services
F: Zero rating of Export of service where consideration settled by book entry
N: Category of Supply of Services on which integrated tax will be payable...
N: Exemptions on supply of services under IGST Act - Services received fr...
N: Rates for supply of services under IGST Act - Transport of goods in a ...
N: Special procedure to be followed by a registered person engaged in man...
F: Compunding of offences
F: CAPITAL GAIN
N: Extension of RoDTEP scheme for exports made from 01.10.2023
H: Revocation of the cancellation of his GST registration - The impugned ...
H: Cancellation of GST registration of petitioner with retrospective effe...
H: Recovery of GST - Validity of garnishee proceeding - violation of prin...
H: Refund of amount deposited under a mistake - the period of limitation ...
H: Cancellation of GST registration of petitioner - The impugned order is...
H: Assessment u/s 153A - profit from the sale of the plot - additions in ...
H: Estimation of income - bogus purchases - When the Tribunal has thought...
H: Income accrued in India - royalty receipts - what is sold is the copyr...
H: Additions towards unexplained liability as loan taken from Reliance Ca...
A: REMEDIES AGAINST THIRD PARTY UNDER IBC
A: Cenvat Credit available on construction service for renovation, modern...
A: DEPRECIATION ON ‘ATM’
A: Not carrying valid documents during transit will be considered a delib...
H: Validity of reassessment against representative assessee - representat...
H: Additions u/s 43CA - Consideration for immovable property less than th...
H: Revocation of Customs Broker License - failure to collect the KYC form...
H: Demand of duty with interest - Valuation - Having accepted the enhance...
H: Levy of penalty u/s 114(iii) and 114AA against Customs Broker (CB) - t...
H: Seeking provisional release of seized goods - non-paper materials in w...
H: Classification of goods proposed to be imported - due to the exclusion...
H: Abatement of appeal upon death of appellant - Rule 22 of the Customs, ...