TMI Tax Updates - e-Newsletter
January 13, 2023
Case Laws in this Newsletter:
Articles
By: DEVKUMAR KOTHARI
Summary: From January 1, 2022, banks are encouraged to offer online locker agreements via websites and apps, promoting efficiency and environmental benefits. Following an RBI circular, banks must develop policies for safe deposit lockers, applicable to both new and existing agreements. However, delays have occurred, with banks requesting customers to purchase stamp papers in the bank's name, raising concerns about legality and convenience. Online agreements and stamp duty payments could streamline processes, reduce paper use, and minimize branch visits. Some banks have begun allowing authorized representatives to handle documentation, responding to customer feedback and health considerations.
By: DR.MARIAPPAN GOVINDARAJAN
Summary: In the case involving a customs broker, the Tribunal addressed allegations of undervaluation of export goods. The customs broker was initially penalized under Section 114 of the Customs Act, 1962, for alleged violations of the Customs Brokers Licensing Regulations (CBLR), 2013. The Tribunal found no evidence that the broker influenced the valuation of goods, which is determined by agreements between exporters and importers. The Tribunal concluded that the customs broker could not be held liable for undervaluation and set aside the penalties imposed by the Adjudicating and Appellate Authorities, allowing the broker's appeal.
By: Bimal jain
Summary: The Delhi High Court ruled that the amount deposited by a textile company during search proceedings was involuntary due to the absence of an acknowledgment in Form GST DRC-04, as required by Rule 142 of the CGST Rules. The company, accused of tax evasion, argued that the deposit was coerced and not voluntary. The court found the procedure for voluntary payment was not followed and ordered the refund of INR 1,80,10,000 with interest. This decision aligns with similar rulings from other high courts emphasizing that tax recovery during investigations should be voluntary, with proper procedures followed.
By: Vivek Jalan
Summary: The international community is advancing the implementation of a two-pillar solution to reform global tax rules, addressing challenges from globalization and digitalization. The OECD recently invited public comments on defining and pricing in-country marketing and distribution arrangements. It also seeks input on the Draft Multilateral Convention provisions regarding Digital Services Taxes and Pillar One's stabilization goals. Pillar Two involves a coordinated system ensuring multinational enterprises with revenues above EUR 750 million pay a minimum 15% tax rate in each jurisdiction. The Inclusive Framework plans to release administrative guidance for the global minimum tax, with the first guidance expected in early 2023.
By: Bimal jain
Summary: The CESTAT, Mumbai ruled that a builder is not liable for Service Tax if a flat booking is canceled and the consideration is refunded. Credence Property Developers Pvt. Ltd. sought a refund of Service Tax paid on two canceled flat bookings. The Revenue Department initially rejected the refund claim, arguing no excess tax was paid. However, the tribunal held that since no service was provided due to the booking cancellation, the tax paid is considered a deposit, not a liability. Therefore, the builder is entitled to a refund, as retaining the tax would violate constitutional principles.
By: Bimal jain
Summary: The Authority for Advance Ruling (AAR) in West Bengal ruled that the welding of railway tracks and associated labor services by M/s Purple Distributors Pvt. Ltd. is a 'Composite Supply' under the Goods and Services Tax (GST) framework. This supply, which involves converting Short Welded Rails to Long Welded Rails using Flash Butt Welding, does not qualify as a 'Work Contract' or 'Job Work' as per the Central Goods and Services Act, 2017, due to the immovable nature of railway tracks. Consequently, it falls under Tariff 995429 and is taxable at an 18% GST rate according to the Services Rate Notification.
News
Summary: On Day 3 of Startup India Innovation Week, various events like webinars and workshops were held nationwide to promote entrepreneurship. A roundtable with over 19 government ministries and public sector undertakings discussed enhancing policies for innovation. A webinar highlighted the government's role in innovation through reforms and procurement. A workshop in Lucknow focused on empowering women entrepreneurs, with over 250 attendees. In Bengaluru, a colloquium addressed building a sustainable future. A workshop in Thanjavur covered intellectual property rights. Events in Roorkee and Ahmedabad explored startup trends and customer acquisition. A three-day event in Coimbatore included a webinar on startup development, attended by over 200 students.
Summary: The India-US Trade Policy Forum has fostered a cooperative business environment, with both nations aiming for broader trade and investment opportunities. A new working group on resilient trade will meet quarterly to enhance supply chains. Discussions addressed WTO disputes, shrimp export bans, business visas, and data flows. The US supports India's G20 leadership, emphasizing sustainability and climate change. US companies plan significant investments in India, viewing it as a key partner. Both countries prioritize larger trade footprints over mini deals, focusing on market access and business facilitation. Upcoming events include IPEF talks in New Delhi and a CEO Forum meeting.
Summary: The 13th Ministerial-level meeting of the India-U.S. Trade Policy Forum in Washington, D.C., focused on strengthening bilateral trade ties and economic relationships. Key discussions included enhancing trade in goods and services, addressing WTO disputes, and resuming FDA inspections. The forum highlighted India's interest in restoring its U.S. Generalized System of Preferences status and acknowledged the importance of professional and skilled worker exchanges. New initiatives included a Resilient Trade working group to address sustainability and supply chain resilience. The visit also involved bilateral meetings with U.S. officials and industry leaders, emphasizing the strategic partnership between the two nations.
Summary: India and the United States held their 13th Ministerial-level Trade Policy Forum meeting in Washington, DC, co-chaired by Indian Commerce Minister and the U.S. Trade Representative. The discussions emphasized enhancing bilateral trade, which reached $160 billion in 2021, and addressing unresolved trade issues. They discussed cooperation in the Indo-Pacific Economic Framework, WTO reforms, and intellectual property rights. The meeting also covered regulatory cooperation, digital trade, and professional services. A new Working Group on Resilient Trade was launched to strengthen supply chains and promote sustainable growth. Both sides committed to ongoing dialogue and quarterly meetings to advance their trade relationship.
Notifications
GST - States
1.
S.O. 91 - dated
11-1-2023
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Bihar SGST
Bihar Goods and Services Tax (Fourth Amendment) Rules, 2022
Summary: The Bihar Goods and Services Tax (Fourth Amendment) Rules, 2022, effective from December 1, 2022, were enacted under the authority of the Governor of Bihar, following the Council's recommendations. The amendments include the omission of rules 122, 124, 125, 134, and 137 from the Bihar Goods and Services Tax Rules, 2017. Additionally, changes are made to rule 127, where the term "Duties" is replaced with "Functions," and the wording is adjusted to reflect the authority's responsibilities. An updated definition of "Authority" is provided in the Explanation following rule 137.
2.
38/1/2017-Fin(R&C)(14/2022-Rate)/2061 - dated
31-12-2022
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Goa SGST
Amendment in Notification No. 38/1/2017-Fin(R&C)(4/2017-Rate) dated the 30th June, 2017
Summary: The Government of Goa has amended Notification No. 38/1/2017-Fin(R&C)(4/2017-Rate) from June 30, 2017, under the Goa Goods and Services Tax Act, 2017. The amendment, effective January 1, 2023, revises entries for S. No. 3A in the notification's table. It specifies essential oils, excluding citrus fruits, such as peppermint and various mints. The revised entries apply to transactions between any unregistered and registered persons. This amendment follows recommendations from the Council and is issued by the Department of Finance, Revenue & Control Division, under the authority of the Governor of Goa.
3.
38/1/2017-Fin(R&C)(13/2022-Rate)/2060 - dated
31-12-2022
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Goa SGST
Amendment in Notification No. 38/1/2017- Fin(R&C)(2/2017-Rate) dated the 30th June, 2017
Summary: The Government of Goa has amended Notification No. 38/1/2017-Fin(R&C)(2/2017-Rate) dated June 30, 2017, under the Goa Goods and Services Tax Act, 2017. Effective January 1, 2023, the amendment modifies the entry against S. No. 102 in the Schedule to include aquatic feed, poultry feed, cattle feed, and related supplements. Additionally, a new entry, S. No. 102C, has been added for husk of pulses, concentrates, and related products. The amendments are made in the public interest following recommendations from the Council.
4.
38/1/2017-Fin(R&C)(12/2022-Rate)/2059 - dated
31-12-2022
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Goa SGST
Amendment in Notification No. 38/1/2017-Fin(R&C)(1/2017-Rate) dated the 30th June, 2017
Summary: The Government of Goa has amended Notification No. 38/1/2017-Fin(R&C)(1/2017-Rate) dated June 30, 2017, under the Goa Goods and Services Tax Act, 2017. Effective January 1, 2023, changes include updates in tax rates and descriptions for certain goods. In Schedule I (2.5%), entries for ethyl alcohol and bran residues are revised. Schedule II (6%) now specifies fruit pulp or fruit juice-based drinks and certain educational materials. In Schedule III (9%), the entry for denatured ethyl alcohol is updated. These amendments follow recommendations from the Council and are published by the Department of Finance, Goa.
Circulars / Instructions / Orders
SEBI
1.
SEBI/HO/AFD/PoD/CIR/2023/15 - dated
12-1-2023
Participation of AIFs in Credit Default Swaps
Summary: The Securities and Exchange Board of India (SEBI) has amended the Alternative Investment Funds (AIF) Regulations, 2012, allowing AIFs to participate in Credit Default Swaps (CDS) as both buyers and sellers. Category I and II AIFs can buy CDS for hedging purposes, while Category III AIFs can buy for hedging or other purposes within specified leverage limits. Category II and III AIFs can sell CDS by earmarking unencumbered government bonds or treasury bills equal to the CDS exposure. AIFs must report CDS transactions to custodians, adhere to leverage limits, and comply with SEBI and RBI regulations. The circular is effective immediately.
2.
SEBI/HO/MRD/MRD-POD-1/P/CIR/2023/12 - dated
11-1-2023
Allowing stock exchanges to launch multiple contracts on the same commodity in commodity derivatives segment
Summary: The Securities and Exchange Board of India (SEBI) has issued a circular permitting stock exchanges to launch multiple contracts on the same commodity within the commodity derivatives segment. This decision aims to enhance investor participation, particularly in metal contracts, by allowing exchanges to offer diverse contract options catering to various participants in the value chain. The circular mandates exchanges to amend their bye-laws, rules, and regulations accordingly and to inform their members and update their websites with this information. This measure is implemented under the authority of the SEBI Act, 1992, to protect investor interests and promote market development.
GST - States
3.
4/2023-TNGST - dated
4-1-2023
Clarification on various issue pertaining to GST
Summary: The Tamil Nadu Commercial Taxes Department issued Circular No. 4/2023-TNGST to clarify GST issues. It states that No Claim Bonus (NCB) from insurance premiums is not a consideration for supply by the insured, and NCB is a permissible discount under section 15 of the TNGST Act, affecting the value of supply for GST calculation. Additionally, the circular clarifies that exemptions from mandatory e-invoicing apply to the entire entity, not specific supplies. For example, a banking company exempt from e-invoicing does not need to issue e-invoices for any of its supplies, including goods like bullion.
4.
3/2023- TNGST - dated
4-1-2023
Clarification with regard to applicability of provisions of section 75(2) of Tamil Nadu Goods and Services Tax Act, 2017 and its effect on limitation
Summary: The circular issued by the Tamil Nadu Commercial Taxes Department provides clarification on the applicability of section 75(2) of the Tamil Nadu Goods and Services Tax Act, 2017, particularly concerning the time limits for re-determining tax liabilities. It specifies that when an appellate authority deems a notice issued under section 74 as unsustainable, the proper officer must re-determine the tax as if issued under section 73. This re-determination must occur within two years from the appellate authority's direction. The circular also outlines the methodology for recalculating tax, interest, and penalties, emphasizing adherence to specific time constraints and conditions.
5.
2/2023 - TNGST - dated
4-1-2023
Clarification on the entitlement of input tax credit where the place of supply is determined in terms of the proviso to sub-section (8) of section 12 of the Integrated Goods and Services Tax Act, 2017
Summary: The circular issued by the Tamil Nadu Commercial Taxes Department clarifies the entitlement of input tax credit for transportation services where the place of supply is outside India, as per the proviso to sub-section (8) of section 12 of the IGST Act, 2017. It states that when goods are transported to a foreign destination, the place of supply is the destination, making the transaction an inter-State supply subject to IGST. Recipients in India can claim input tax credit on such services, provided they meet conditions under sections 16 and 17 of the TNGST Act. Suppliers must report the place of supply using the code '96-Foreign Country' in FORM GSTR-1.
6.
1/2023 - TNGST - dated
4-1-2023
Clarification to deal with difference in Input Tax Credit (ITC) availed in FORM GSTR-3B as compared to that detailed in FORM GSTR-2A for FY 2017-18 and 2018-19
Summary: The Tamil Nadu Commercial Taxes Department issued a circular addressing discrepancies in Input Tax Credit (ITC) claimed in FORM GSTR-3B compared to FORM GSTR-2A for fiscal years 2017-18 and 2018-19. Due to initial GST implementation issues, many suppliers did not correctly report outward supplies, causing mismatches in ITC claims. The circular provides scenarios and procedures for resolving these discrepancies, including verification of invoices and supplier payments. It mandates specific actions based on the discrepancy amount and clarifies that these guidelines apply to ongoing proceedings for the specified fiscal years, not completed cases.
DGFT
7.
Trade Notice No. 24/2022-23 - dated
12-1-2023
EODC Online Monitoring System for Advance/EPCG Authorisations
Summary: The Directorate General of Foreign Trade (DGFT) has announced changes to the monitoring system for Export Obligation Discharge Certificates (EODC) related to Advance and EPCG authorizations. The revamped DGFT IT system now provides access to redemption and EODC details, including license status, on its website. Exporters can verify and correct any discrepancies in past authorizations by uploading closure or redemption letters online. Consequently, the previous system at eodc.online is discontinued. These changes are effective immediately, as approved by the Competent Authority.
8.
50/2015-20 - dated
11-1-2023
Discontinuation of Tariff Rate Quota for Import of Crude Soya bean Oil w.e.f. 01.04.2023
Summary: The Directorate General of Foreign Trade has announced the discontinuation of the Tariff Rate Quota (TRQ) for the import of Crude Soya Bean Oil effective from April 1, 2023. The TRQ for Crude Soya Bean Oil, previously allocated for the financial years 2022-23 and 2023-24, will now only be available for the financial year 2022-23. Imports under this TRQ must have a Bill of Lading dated on or before March 31, 2023, and can be cleared until June 30, 2023. No TRQs will be allocated for the import of Crude Soya Bean Oil for the financial year 2023-24.
Customs
9.
02/2023 - dated
11-1-2023
Faceless Assessment – Standard Examination Orders through RMS - Phased implementation of Standardized Examination Orders through RMS
Summary: The circular from the Ministry of Finance, Department of Revenue, outlines the phased implementation of Standardized Examination Orders (SEOs) through the Risk Management System (RMS) for faceless assessment in customs. Initially applied to Assessment Groups 4 and 5, the SEOs will now extend to other groups, including electrical machinery, textiles, miscellaneous products, automobiles, chemicals, mineral, and primary products, with specific implementation dates for each group. This expansion aims to harmonize examination orders across various assessment groups. Any implementation difficulties should be reported to the Board.
Highlights / Catch Notes
GST
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Petitioner Must Act: Court Directs Use of Rule 159(5) to Resolve Extended Bank Account Attachment Issue.
Case-Laws - HC : Direction to allow the operation of the bank account - The grievance of the Petitioner that the bank account has remained attached for a long period of time, is to be noted but partially it is the Petitioner to blame for not taking recourse to Rule 159(5) of the Rules. - Petitioner directed to approaches the authority under Rule 159 (5) of the Rules within one week - HC
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Court Allows Appellant to Cover Seized Teak Timber with Tarpaulins to Prevent Weather Damage Amid Documentation Dispute.
Case-Laws - HC : Detention of goods - transport of teak sawn timber without valid documents in a concealed manner - Since the goods being natural produce, it is exposed to the fury of weather, there is likelihood of deterioration. Therefore the authority pending compliance of the above directions shall permit the appellant to provide requisite number of tarpolene for securing the goods so that the goods are not exposed to sun and rain - HC
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GST at 12% for Unbranded Namkeens and Snacks under CTH 21069099, Rules Authority for Advance Rulings.
Case-Laws - AAR : Classification of goods - rate of GST - sold without brand name - Miscellaneous edible preparations - "Namkeens", "mixtures", "Bhujia", "Chabena" - These products are ready to eat and directly consumed by human beings. Therefore, the applicant food products be classified under CTH 21069099 of Customs Tariff Act. - Liable to tax @12% of GST - AAR
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Interactive Flat Panels Tax Classification Under Review; GST Rate May Change Per Notification No. 01/2017-CT(Rate).
Case-Laws - AAR : Classification of traded goods - Interactive Flat Panels (IFPs) - In case the goods in question are classifiable under heading other than 8471 owing to it functionality as discussed, the said goods will attract rate of tax as specified in the schedules appended to Notification no. 01/2017-CT(Rate) dated 28.6.2017 on such supplies on the basis of description specified therein. - AAR
Income Tax
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High Court dismisses appeal in non-genuine purchase case u/s 69C; backs ITAT and CIT(A) decisions.
Case-Laws - HC : Non-genuine purchases u/s 69C - Sales tax department had provided evidence of the fact that these parties did not undertake the sale of any material but only provided bills at a commission - ITAT upholding the orders of the CIT(A) deleting the addition - this is not a fit case for consideration in appeal as the substantial questions of law proposed by the revenue would not arise. - HC
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Court Orders Income Tax Dept to Refund Auction Payment with Interest for Failing to Transfer Property Possession.
Case-Laws - HC : Auction of property by the Department to recover tax - Income Tax Department cannot put the entire matter in cold storage and keep the purchaser running from pillar to post to recover the moneies paid by them towards the purchase price along with interest. It is not clear as to why the possession of the property has not been handed over to the purchaser / appellants - Refund of money deposited by the Auction purchaser with interest allowed - HC
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Court Rules No Deduction for Unlisted Shares' Value Drop Until Sold; Loss Not Recognized Until Sale Finalized.
Case-Laws - HC : Deemed Loss - Diminution in the value of investment in two unlisted companies - Loss in the value of investment will arise only when such shares are sold by the appellant. The appellant is therefore not entitled for deduction on account of alleged “diminution in the value of investment” due to the purported loss suffered by the said company on such investment of the appellant. Therefore, the Question of Law is answered against the appellant assessee. - HC
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Court Finds No Substantial Law Question in Unexplained Credits Case u/s 68; Assessee Proves Transaction Authenticity.
Case-Laws - HC : Addition u/s 68 - unexplained credits in the books of account - Not only were creditworthiness, identity and genuineness established, but also the valuation stood established. Pertinently, nothing contrary to be valuation report produced by the respondent/assessee is available on record. No substantial question of law arises. - HC
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Court Sets Aside Reassessment Order, Requires Disclosure of Information Under Income Tax Act Section 147.
Case-Laws - HC : Reopening of assessment u/s 147 - underlying information/material which formed the basis for triggering the assessment/reassessment proceedings was required to be furnished to the petitioner. - That being the position, according to us, the best way forward is to set aside the impugned order passed under Section 148A(d) of the Act and the consequential notice of even date i.e., 25.07.2022 issued under Section 148 of the Act. - Matter restored back with directions - HC
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High Court Denies Relief; Petitioner Delayed Court Action After Section 226(3) Notice on Tax Refund Dispute.
Case-Laws - HC : Stay application - Refund along with up-to-date interest after adjusting 20% of the disputed demand - Petitioner was following-up with the department. According to us, that is not a good enough answer. Even after notice u/s 226(3) of the Act was issued, which was in September 2022, the petitioner did not take immediate steps to approach the court. - No relief - HC
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Section 40(a)(ia) TDS Disallowance: No Interest Credited or Paid u/s 194A, Additions Deleted for Assessment Year.
Case-Laws - AT : Disallowance u/s 40(a)(ia) - Non deduction of TDS u/s 194A - Interest - the provisions of section 194A have no application in case where no interest is credited to the account of the parties nor was paid during the previous year relevant to the assessment year under consideration. - Additions deleted - AT
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Income Calculation for Life Insurers: Combine Shareholders' and Policyholders' Accounts u/s 44 of Income Tax Act.
Case-Laws - AT : Determination of income u/s 44 - Taxing the income arising on account of shareholders profits - where the assessee company was engaged only in life insurance business and was not carrying on any other business, surplus or deficit as per shareholders account is to be aggregated with surplus or deficit with policyholders account for the purpose of determining the Profit & Loss Account of an assessee engaged in life insurance business u/s 44 of the Act. - AT
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Revised Tax Assessment: Section 263 Clarifies Market vs. Stamp Value Discrepancies u/s 56(2)(vii)(b) for 2013-14.
Case-Laws - AT : Revision u/s 263 - provision of s.56(2)(vii)(b)(ii) was applicable - market value of the subject property vs stamp value - the stated sale consideration is not the actual sale consideration and, therefore, the deeming of sec. 56(2)(vii)(b) shall apply - the difference in value may well have been paid upon or prior to the execution of the sale deed and its presentation for registration - This is as, where so, the addition would in that case arise only for AY 2013-14, and not AY 2014-15, the current year. - AT
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Tax Officer Treats Fake Sales as Cash Credit u/s 68; Addition and Penalty Confirmed for Fictitious Transactions.
Case-Laws - AT : Addition u/s 68 - AO rightly neutralise the difference amount of profit arisen out of fictitious purchase and sales.We further confirm his action u/s 68 treating the sales receipt as cash credit as defined in sec 68. AO rightly observed that in the garb of sales it is assesses own money which he introduced as sales. - Additions confirmed with penalty - AT
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Assessee Denied Tax Deductions for Non-Compliance with Section 80IA(4) Procedures in Establishing Palsana Unit.
Case-Laws - AT : Deduction u/s 80IA(4) - the assessee has not followed the due procedure for establishing Palsana unit - One of the rules of interpretation of a tax statute is that if a deduction or exemption is available on compliance with certain conditions, the conditions are to be strictly complied with. - AT
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CIT(A) Overrules TPO: Geographical Location Not a Valid Reason to Reject Foreign Associated Enterprises as Tested Party.
Case-Laws - AT : TP Adjustment - Rejection of Associated Enterprises as the tested party - foreign Associated Enterprises satisfied all the criteria for being taken as a tested party. TPO merely rejected the same as Associated Enterprises is located in different geographical locations. It a proper justification by the learned Transfer Pricing Officer to reject the foreign Associated Enterprises as a tested party. - CIT(A) order diciding the issue in favor of assessee is affirmed. - AT
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Court Rules AO Erred in Changing Share Valuation Method Without Justification u/s 56(2)(vii)(b.
Case-Laws - AT : Addition u/s.56(2)(vii)(b) - share premium - difference between the issue price and the actual share price determined by the AO - AO has changed the method of valuation from DCF Method to NAV Method without their being any observation with regard to the DCF Method followed by the Assessee. Therefore, we are of the considered view that the AO has erred in changing the method of valuation of the shares from DCF Method to NAV Method. - AT
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Transfer Pricing Adjustment Accepted for Royalty Income; Assessing Officer to Limit Addition to Arm's-Length Price.
Case-Laws - AT : TP Adjustment - Receipt of royalty income from its associated enterprises - when the approach adopted by the assessee is found to be acceptable, the adjustment determined by the learned transfer-pricing officer in the remand report deserves to be accepted. Accordingly we direct the learned AO to restrict the addition on account of arm’s-length price of the international transaction of receipt of royalty income from Vietnam associated enterprise of the assessee - AT
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Transfer Pricing Dispute: Assessee Fails to Provide Detailed Breakdown of Management Fees; TPO Rejects Lump Sum Explanation.
Case-Laws - AT : TP Adjustment on account of the Management fees and payment of R&D expenses - As regards, failure of the Assessee to provide service wise break-up of management fee, the Assessee had explained that the Assessee was being charged a lump sum fee for the management services and therefore, was not able to furnish the service-wise break up.TPO failed to take the same into consideration. - AT
Customs
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Appellant held accountable for incorrect MEIS export claims; fine deemed excessive despite misleading advice from CHA.
Case-Laws - AT : Levy of penalty and redemption fine - export of prohibited goods - The appellant made a wrong claim of export benefit under MEIS, being mis-advised by the CHA. However, it was the responsibility of the appellant to understand the eligibility and the conditions before making a claim for the export benefits. However, in the facts and circumstances, that the goods were not prohibited goods, it is found that the fine and penalty are on the higher side. - - AT
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Customs Authority's Confiscation Proceedings Invalidated; Legitimate Export of Quality Drugs Confirmed by CDSCO Test Report.
Case-Laws - AT : Wrongful availment of benefit of Duty Drawback - export of spurious drugs - the evidence led satisfies that the appellant was a genuine manufacturer duly licensed to manufacture and export of drugs. Further, even from the test report of CDSCO, Mumbai, out of the three drugs, two drugs namely B-CO syrup and Sabtron have been found to be of standard quality. Thus, the whole proceedings by the Customs Authority for confiscation are vitiated. - AT
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Appellant must monitor Tribunal's site for hearing dates; insufficient grounds to recall order.
Case-Laws - AT : Seeking recall of order - It is the appellant who had filed the early hearing application and, therefore, it was the duty of the applicant to follow the dates on which the application was listed on the website of the Tribunal, if the appellant was interested in pursuing the application instead of making a complaint that a notice had not been sent by the Tribunal to the appellant regarding the next date fixed. - The applicant has failed out to make out any case for recall of the order - AT
Indian Laws
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Supreme Court clarifies Section 18 SARFAESI Act: High Courts erred in adjusting auction amounts for DRAT pre-deposit.
Case-Laws - SC : Interpretation of statute - calculation of amount of pre-deposit u/s 18 of the SARFAESI Act - 50% of which amount the borrower is required to deposit as pre-deposit - the respective High Courts have seriously erred in directing to adjust/appropriate the amount realised by auction sale of the secured properties/deposited by the auction purchasers while considering the 50% of the amount as pre-deposit to be deposited by the borrower, while preferring an appeal before the DRAT. - SC
IBC
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Adjudicating Authority's Role in IBC Section 9: Only Identifies Disputes, Doesn't Resolve Them; Appellant's Application Dismissed.
Case-Laws - AT : Initiation of CIRP - It is well settled that in Section 9 proceedings the Adjudicating Authority is not to enter into final adjudication with regard to existence of dispute between the parties regarding operational debt. What has to be looked into is whether the defence raises a dispute which needs further adjudication by a competent court. Disputes pertaining to contractual issues are not to be resolved in Section 9 proceedings. - The Adjudicating Authority has rightly dismissed the application of the Appellant filed u/s 9 of IBC - AT
SEBI
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SEBI Can Impose Penalties u/s 11C(6) Only After Court Complaint; Safeguards Against Misuse Included.
Case-Laws - HC : Inquiring into complaints by SEBI - Power conferred on the investigating authority - The punishment of imprisonment or fine will be imposed under Sec.11C(6) only after a complaint is lodged before a competent criminal court by SEBI against the person refusing to cooperate in the investigative process and the said court will consider whether in the facts and circumstances of the case, such refusal is bonafide and whether punishment ought to be imposed and if so, to what extent. - There are, thus, adequate safeguards provided in the enactment itself against any misuse of the power. - HC
Central Excise
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Court Rules on CENVAT Credit Penalty: Discretion u/r 15(1) Applies, No Fraud or Misinformation Found.
Case-Laws - HC : Levy of penalty - taking CENVAT Credit irregularly - it is the contention of the Assessee that there is some element of discretion available in the adjudicating officer to levy penalty under Rule 15(1) of the CENVAT Credit Rules. The Court notes at this stage that there is a distinction between the Rule 15(1) and Rule 15(2) of the CENVAT Credit Rules. As far as Rule 15(2) is concerned, the penalty is attracted in the event of there being misinformation, suppression of facts or fraud by the Assessee. Rule 15 (2) is admittedly not attracted in the present case - HC
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Court Confirms Petitioner Eligible for Benefits Under SVLDR Scheme 2019, Rejects Department's Product Scope Argument.
Case-Laws - HC : Denial of the benefit of the Sabka Vishwas Legacy Dispute Resolution Scheme, 2019 (SVLDR Scheme) - there is no question of the Petitioner’s product being outside the purview of the SVLDR Scheme read with the Fourth Schedule to the CE Act. The Court, therefore, rejects the plea of the Department that the Petitioner would be ineligible for the benefit of the SVLDR Scheme. - HC
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Duty Demand for July-Oct 2010 Nullified; No Finished Goods Liable to Duty; Section 11AC & Rule 25 Penalty Dismissed.
Case-Laws - AT : Clandestine removal - aluminium circles - it is found that Revenue has taken contrary stand wherein in the first show cause notice it is admitted that assessee has started commercial production from November, 2010 wherein in the second show cause notice, duty have been demanded from July, 2010. - The quantum of finished goods liable to duty for the period 01.07.2010 to 31.10.2010 shall be NIL - As the duty demand from July, 2010 to October, 2010, have been set aside. The penalty under Section 11AC read with Rule 25 is set aside. - AT
VAT
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Court Rejects Assessee's Books; Turnover Enhanced Due to High Electricity Use Without Justified Production Increase.
Case-Laws - HC : Rejection of books of accounts of assessee - enhancement of turnover - higher consumption of electricity - electricity being consumed by the officials at their residential premises for running Air Conditioners, fans and light, cannot be accepted, as the period for which explanation has been given is the winter time when there is no use of Air Conditioners and the domestic consumption cannot be believed on such a higher side. - Assessing Authority has demonstrated how the electricity was consumed by the Assessee during the period 01.04.2007 to 31.12.2007 and 01.01.2008 to 31.03.2008 when the production did not increase but only the consumption was high. - HC
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