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Home e-Newsletters Index Year 2022 May Day 23 - Monday

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TMI Tax Updates - e-Newsletter
May 23, 2022

Case Laws in this Newsletter:

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



Highlights / Catch Notes

  • GST:

    Seeking release of detained goods and vehicle - generation of second E-way bill - The action of the GST officers in seizing the goods in question is evidently an act of harassment to the petitioners, breach of their fundamental rights guaranteed under Article 14 of the Constitution of India and blatant abuse of power by the respondents. - the writ petition is, accordingly, allowed with cost of Rs.50,000/- to each of the petitioners, i.e. total Rs.1,00,000/- which the respondents (GST officers) shall pay the petitioners within four weeks from today. - HC

  • GST:

    Classification of services - Place of supply - export of services or not - the applicant extends vessel related services to their customers when the vessel enters the Indian territory and the service with respect to the said vessel ends when the vessel exits the Indian territory. In other words, the proposed services are rendered in respect of the vessels which are physically available in the Indian Territory and therefore, the proposed services are squarely covered under Section 13(3) - the place of supply of service in the location where the services are actually performed, which is the taxable territory. - AAR

  • GST:

    Review of order - Levy of penalty - grounds for review are that the imposition of penalty by the authorities is not automatic and the same can be imposed only when there is a fraud or willful intention to defraud the revenue - The order under review would clearly indicate that intentional and willful non-disclosure of crucial facts can be inferred from the self-declaration made in the web-portal - there are no grounds to interfere with the order impugned in the review - HC

  • Income Tax:

    Addition u/s 68 - Penny stock purchases - addition on account of Long Term Capital Gains (LTCG) which the assessee derived from sale of scrip - exemption u/s 10(38) denied - there is nothing against the assessee and no inquiry whatsoever has been done by the AO or the Ld CIT (A) - both the lower authorities were not justified in not allowing the appellant’s claim for exemption u/s 10(38) in respect of the profit derived by the appellant - AT

  • Income Tax:

    Reopening of assessment u/s 147 - validity of the notice u/s 148A(b) - By not considering the reply of the Petitioner dated 31st March, 2022, the mandate of Section 148A(c) has been violated as it casts a duty on the Assessing Officer, by using the expression ‘shall’, to consider the reply of the Petitioner/assessee in response to notice under Section 148A(b) before making an order under Section 148A(d) of the Act. - HC

  • Income Tax:

    Revision u/s 263 - contention raised by the assessee was that the proceedings are liable to be stayed since the assessee has been admitted for Corporate Insolvency Resolution Process (CIRP) under the Insolvency and Bankruptcy Code, 2016 (IBC) and presently the assessee is under moratorium by orders of the National Company Law Tribunal (NCLT) - the appeal is allowed. The assessment order is set aside and the matter is restored to the file of the assessing officer and the matter shall be kept in abeyance till the completion of the IRP - HC

  • Income Tax:

    Adopting the commission income at 0.5% - Unexplained bank deposits - assessee could not rebut the fact that the assessee himself has stated of having received commission in cash @ 0.5% out of which 0.3% was paid as bank charges. We find that the CIT(Appeal) on the basis of this statement has adopted the commission income but he has allowed the expenses on the actual basis - statement cannot be used in part. It is to be read as a whole. Therefore, considering the statement of the assessee we hereby direct the Assessing Officer to adopt 0.20% as the net commission income of the assessee. - AT

  • Income Tax:

    TDS (withholding tax) u/s 195 - Disallowance u/s 40(a)(i) - non-deduction of tax at source on payment made towards membership/subscription fee - principle of mutuality- amount paid by a member firm to the umbrella association - the payment made by the assessee to GTIL towards membership and subscription fee is not taxable at the hands of the payee. - No TDS liability - AT

  • Customs:

    Validity of preventive detention order - allegation of smuggling activities - COFEPOSA - The purpose of detention order is a preventive measure and if the detenu is not served or detained at the earliest possible, keeping in view the spirit of Article 22(5) of the Constitution of India, the purpose is defeated. A sense of urgency needs to be exhibited by the respondents, if the preventive detention order is to be justified. The entire exercise for service of detention order appears to have been undertaken in a casual and cavalier manner, which, in our considered view is fatal to the case of the respondents. - HC

  • Customs:

    Levy of penalty u/s 112(a) of the Customs Act, 1962 on the Customs Broker - Section 112 ibid. does not contemplate penal action for violations of provisions or regulations under any other law, much less violation under the CBLR; the charge is very specific: the act or omission should result in improper import of goods and consequently, confiscation of such goods, which is not the case of the Revenue here in the case on hand. - No penalty - AT

  • Customs:

    Levy of penalty u/s 114(i) of the Customs Act, 1962 on Customs Broker - All the allegations if any, would fall under the Customs Broker Licensing Regulations. No evidence has been adduced to show that the appellant has connived with the exporter in the attempt to export the goods. - The penalty imposed under section 114(i) of the Customs Act, 1962 on the appellants herein cannot sustain and requires to be set aside - AT

  • Indian Laws:

    Interpretation of statute - whether the "sum" awarded under Clause (a) of Sub-section (7) of Section 31 of the Arbitration and Conciliation Act, 1996 would include the interest pendente lite or not? - In view of the specific agreement between the parties, the interest prior to the date of award so also after the date of award will be governed by Article 29.8 of the Concession Agreement, as has been directed by the Arbitral Tribunal - SC

  • Indian Laws:

    Offence punishable under Section 63 of the Copyright Act - cognizable offence or not - Only in a case where the offence is punishable for imprisonment for less than three years or with fine only the offence can be said to be noncognizable. - the High Court has committed a grave error in holding that the offence under Section 63 of the Copyright Act is a noncognizable offence. Thereby the High Court has committed a grave error in quashing and setting aside the criminal proceedings and the FIR. - SC

  • Indian Laws:

    Dishonor of Cheque - private complaint of cheating after filing a complaint alleging offence punishable u/s 138 of the NI Act - the submission of the learned counsel appearing for the petitioners that the proceeding for offence punishable under Section 420 of the IPC is not maintainable once the complainant invokes Section 138 of the Act is unacceptable. It is a matter of trial for the petitioners to come out clean. - HC

  • PMLA:

    Jurisdiction - power to initiate proceedings as against the Petitioner under the provisions of Prevention of Money Laundering Act - possession of proceeds of crime - It appears that the petitioner wants to prolong the matter one way or the other. After failing to get any relief from the Madras High Court he has approached this Court raising almost same contentions, which are barred by principles of issue of estoppel and cause of action estoppel. - HC

  • Service Tax:

    Validity of SCN - opportunity of pre-show cause notice consultation - As the stand taken by the respondent authorities in the impugned show cause notice dated 31.12.2020 that the petitioner had suppressed material facts, the same would come within the exception as mentioned in Clause 5 (d) of the Circular dated 11.11.2021 and as such it was not mandatory for respondent authorities to have a pre-show cause notice consultation. Another aspect also needs to be looked into, i.e., whether the authority which had issued the Demand-cum-Show Cause Notice dated 31.12.2021 had the authority to do so. The power so exercised by the authority is a statutory power conferred upon the respondent authorities under Section 73 of the Finance Act of 1994 and as such the issuance of the said show cause notice cannot be said to be without jurisdiction. - HC

  • Service Tax:

    Levy of service tax - Scope of negative list - composite engagement to deliver goods outside the country - Place of Provision of Service Rules, 2012 is not a provision for charging of tax; it is limited to determination of location of taxable entity as an adjunct to the charging provision in section 66 B of Finance Act, 1994. The impugned order has not evaluated the impugned activity from that perspective. - Since the basic / foundation activity of transportation of goods is exempt, demand set aside - AT

  • Central Excise:

    Demand of differential duty - Similar Goods - The Chartered Engineer certificate has been brushed aside by the Commissioner (Appeals) stating that it is merely an after-thought. The Commissioner (Appeals) has failed to note that it is an opinion given by an expert and unless there is some evidence to rebut such opinion, the certificate issued by the Chartered Engineer cannot be discarded in toto. - AT


Articles


Notifications


Circulars / Instructions / Orders


News


Case Laws:

  • GST

  • 2022 (5) TMI 974
  • 2022 (5) TMI 1022
  • 2022 (5) TMI 1021
  • 2022 (5) TMI 973
  • 2022 (5) TMI 1020
  • 2022 (5) TMI 1019
  • Income Tax

  • 2022 (5) TMI 1018
  • 2022 (5) TMI 1013
  • 2022 (5) TMI 1012
  • 2022 (5) TMI 1011
  • 2022 (5) TMI 1010
  • 2022 (5) TMI 1009
  • 2022 (5) TMI 1008
  • 2022 (5) TMI 972
  • 2022 (5) TMI 1017
  • 2022 (5) TMI 1007
  • 2022 (5) TMI 1006
  • 2022 (5) TMI 1005
  • 2022 (5) TMI 1004
  • 2022 (5) TMI 1003
  • 2022 (5) TMI 1016
  • 2022 (5) TMI 1015
  • 2022 (5) TMI 1002
  • 2022 (5) TMI 1001
  • 2022 (5) TMI 999
  • 2022 (5) TMI 998
  • 2022 (5) TMI 971
  • 2022 (5) TMI 1014
  • 2022 (5) TMI 1000
  • Customs

  • 2022 (5) TMI 997
  • 2022 (5) TMI 996
  • 2022 (5) TMI 995
  • Corporate Laws

  • 2022 (5) TMI 994
  • Insolvency & Bankruptcy

  • 2022 (5) TMI 993
  • 2022 (5) TMI 992
  • 2022 (5) TMI 991
  • 2022 (5) TMI 990
  • 2022 (5) TMI 989
  • PMLA

  • 2022 (5) TMI 988
  • Service Tax

  • 2022 (5) TMI 986
  • 2022 (5) TMI 985
  • 2022 (5) TMI 984
  • 2022 (5) TMI 987
  • Central Excise

  • 2022 (5) TMI 983
  • 2022 (5) TMI 982
  • CST, VAT & Sales Tax

  • 2022 (5) TMI 981
  • 2022 (5) TMI 970
  • 2022 (5) TMI 980
  • Indian Laws

  • 2022 (5) TMI 979
  • 2022 (5) TMI 978
  • 2022 (5) TMI 976
  • 2022 (5) TMI 975
  • 2022 (5) TMI 977
 

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