Delhi High Court

Application Under Companies Act Against Order Rejecting Waiver Of Interest; Dispute Falls Within Scope Of VSV Act: Delhi High Court

Case Title: Kapri International Pvt. Ltd. versus Commissioner of Income Tax

Citation: 2022 LiveLaw (Del) 796

The Delhi High Court has ruled that where an application under the Companies Act has been filed by a company in liquidation against the order of the revenue authorities rejecting the application for waiver of interest for delay in payment of tax dues, the said dispute would fall within the scope of Direct Tax Vivad Se Vishwas Act, 2020 (VSV Act).

The Bench consisting of Justices Mukta Gupta and Anish Dayal ruled that the VSV Act is not a taxing statute but one which provides a dispute resolution scheme for tax disputes and hence, it would be amenable to a purposive construction. The Court held that it was the intent of the legislature to include all sorts of disputes under the VSV Act, even if they were pending before the Commissioner of Income Tax or the courts.

Order Passed Under Section 143(1) Is Not An Assessment; Delhi High Court Dismisses Ernst And Young's Writ Petition

Case Title: Ernst and Young U.S. LLP versus Assistant Commissioner of Income Tax

Citation: 2022 LiveLaw (Del) 798

The Delhi High Court has ruled that the order passed under Section 143(1) of the Income Tax Act, 1961 is not an assessment for the purposes of Section 147 and hence, it is not necessary for the Assessing Officer to come across some fresh tangible material to form a belief that the income of the assessee has escaped assessment in order to reopen assessment.

The Bench of Justices Manmohan and Manmeet Pritam Singh Arora held that no opinion is formed by way of the order passed under Section 143(1), and that only an intimation is issued to the assessee when the return initially filed by it is processed; thus, the doctrine of change of opinion is not attracted.

Assessee Entitled To Refund Of Unutilized CENVAT Credit On Account Of Export Of Legal Services: Delhi High Court

Case Title: Commissioner of CGST Delhi East Versus Anand and Anand

The Delhi High Court has held that the assessee is entitled to a refund of unutilized CENVAT credit under the CENVAT Credit Rules, 2004 on account of the export of legal services under rule 5 of the CENVAT Credit Rules, 2004.

The division bench of Justice Rajiv Shakdher and Justice Tara Vitasta Ganju observed that, as per Rule 5, as long as the service provider provides an output service which is exported without payment of service tax, such a service provider will be eligible for a refund of CENVAT credit.

Madras High Court

Cut/Sized Shade Trees Constitutes "Agricultural Produce", No Sales Tax Applicable: Madras High Court

Case Title: M/s. United Nilgiri Tea Estates Company Ltd. Versus The Tamil Nadu Sales Tax Appellate Tribunal

Citation: 2022 LiveLaw (Mad) 362

The Madras High Court bench of Justice R. Mahadevan and Justice Mohammed Shaffiq has held that the cut and sized shade trees would constitute "agricultural produce" and, therefore, fall outside the purview of the Tamil Nadu General Sales Tax Act, 1959 (TNGST Act, 1959).

Timelines For Uploading TRAN-1 For Seeking Credit And Revision Of Credit Cannot Be One: Madras High Court

Case Title: M/s.Interplex Electronics India Pvt. Ltd. Versus The Assistant Commissioner of State Tax

Citation: 2022 LiveLaw (Mad) 367

The Madras High Court has held that the timelines for uploading of TRAN 1 for seeking credit as well as seeking revision of the credit cannot be one and the same as it leads to an unworkable position.

The single bench of Justice Anitha Sumanth has observed that the time limit for revision of a TRAN-1 return be identical to the timeline for filing of a return seeking transition. The purpose of revision is to enable correction or modification of a return of transition. It would stand to reason that some additional time, over and above the timeline granted for a TRAN-1 return, be provided by the respondent in the latter instance.

Kerala High Court

Officer Is Duty Bound To Consider Explanation Offered For Expiry Of The E-Way Bill: Kerala High Court

Case Title: Sanskruthi Motors Versus The Joint Commissioner (Appeals) II

Citation: 2022 LiveLaw(Ker) 458

The Kerala High Court has held that the officer is duty bound to consider the explanation offered by the petitioner for the expiry of the e-way bill.

The single bench of Justice Gopinath P has observed that the officer rejected the explanation offered by the petitioner by stating that no evidence of repair being carried out has been produced. The officer imposed a penalty/tax on the grounds that the petitioner had ample time to revalidate the E-way bill.

Allahabad High Court

Allahabad High Court Imposes Cost Of Rs. 50000 For Arbitrary Cancellation of GST Registration

Case Title: Drs Wood Products Lucknow Versus State Of U.P.

Citation: 2022 LiveLaw (AB) 383

The Allahabad High Court has imposed a cost of Rs. 50,000 for the arbitrary cancellation of GST registration.

The single bench of Justice Pankaj Bhatia observed that the arbitrary exercise of power to cancel the registration in the manner in which it has been done has adversely affected the petitioner. It has also had a negative impact on the revenues that could have flowed into the coffers of GST had the petitioner been allowed to conduct commercial activities. The actions were clearly not in consonance with the ease of doing business, which is being promoted at all levels.

Gujarat High Court

Gujarat High Court Grants Bail To Person Alleged Of Creating Fictitious Entity To Pass Ineligible ITC

Case Title: Mohmed Hasan Aslam Kaliwala Versus State Of Gujarat

Citation: 2022 LiveLaw (Guj) 338

The Gujarat High Court has granted bail to a person alleged to have created a fictitious entity to pass an ineligible Input Tax Credit (ITC).

The single bench of Justice Ilesh J. Vora has directed the release of the applicant on bail, subjected to a deposition of Rs. 2 crore before the office of the Deputy Commissioner of State Tax, Division 8, Enforcement, Surat within a period of 2 months from the applicant's release.

Rajasthan High Court

Description Of New Aluminium Section As Aluminium Scrap,Rajasthan High Court Upholds Detention Order

Case Title: M/s. Shrimali Industries Pvt. Ltd. Versus State Of Rajasthan

The Rajasthan High Court has held that, by no stretch of imagination, can brand new aluminium sections be placed on equivalence with aluminium scrap. The goods were fraudulently described as aluminium scrap.

The division bench of Justice Sandeep Mehta and Justice Kuldeep Mathur has observed that the department was justified in detaining the petitioner's vehicle and the goods after noticing the blatant mis-description during interception.

Calcutta High Court

Issuance Of Notice And Initiation Of Reassessment Proceeding Beyond 6 Years: Calcutta High Court Stays Proceedings

Case Title: SS Commotrade Private Limited Vs. Income Tax Officer

The Calcutta High Court has held that the issuance of notice and initiation of reassessment proceedings were beyond 6 years. Prima facie, it is barred by limitation both under the old Act as well as under the newly amended provision relating to Section 147 of the Income Tax Act, 1961.

The single bench of Justice Md. Nizamuddin has observed that the petitioner has been able to make out a prima facie case for an interim order by raising the issue of the jurisdiction of the assessing officer in initiating the reassessment proceeding.

ITAT

Assessee Required To Substantiate Claim Of TDS, In Absence Of TDS Certificate: ITAT

Case Title: DZ Bank versus DCIT (International Taxation)

The Mumbai Bench of ITAT has ruled that where the assessee has no TDS certificate available with it, it is required to discharge its responsibility of proving whether TDS was deducted by the payer of income or not in order to avail credit of TDS. The Tribunal ruled that the onus is on the assessee to substantiate its claim of tax deducted at source on the payments received by it.

The Bench, consisting of Rahul Chaudhary (Judicial Member) and Om Prakash Kant (Accountant Member), reiterated that the assessee should be provided credit of TDS deducted by the payer of income, irrespective of whether the TDS was deposited by the deductor into the government account or not.

Interest Levied On Arrears Or Late Payment Of Customs Duty Allowable On Actual Payment Basis: ITAT

Case Title: M/s.HP India Sales Private Versus The Joint Commissioner of Income-tax

The Bangalore Bench of the Income Tax Appellate Tribunal (ITAT) has held that customs duty is allowable only on a payment basis under section 43B of the Income Tax Act. The interest levied on arrears or late payment of customs duty is also allowable on an actual payment basis under section 43B.

The two-member bench of George George K (Judicial Member) and Laxmi Prasad Sahu (Accountant Member) has directed the AO to verify the nature of the levy of interest on customs duty and decide the allowability of deduction.

Failure Of Assessee To Explain Identity And Creditworthiness Of Creditors And Genuineness Of Transaction: ITAT Sustains Addition

Case Title: Ghaus Memorial Sahkari Awas Samiti Ltd. Versus ACIT

The Allahabad Bench of the Income Tax Appellate Tribunal (ITAT) has sustained the addition as the assessee failed to explain the identity and creditworthiness of the creditors and the genuineness of the transaction.

The two-member bench of Vijay Pal Rao (Judicial Member) and Ramit Kochar (Accountant Member) has observed that fresh deposits being advanced for land from members raised by the assessee were in the form of cash credits, which are recorded in the assessee's books of accounts. The onus is on the assessee to explain the identity and creditworthiness of the creditor and the genuineness of the transaction.

CESTAT

Cenvat Credit Of Service Tax Can Be Availed On Debit Notes:CESTAT

Case Title: M/s. Visa Resources India Limited Versus Commissioner of CGST & CX

The Kolkata Bench of the Customs, Excise and Service Tax Appellate Tribunal (CESTAT) has observed that the Cenvat credit of Service Tax can be availed on debit notes under the scheme of the Cenvat Credit Rules, 2004.

The bench of P.K. Chaudhary (Judicial Member) has observed that an invoice issued by a provider of input service is a valid document for availment of Cenvat credit. The heading of the document, as seen from sample copies attached with the appeal paper book, though they are nomenclature as debit notes, contains all the disclosures as required in a tax invoice as per Rule 4A of the Service Tax Rules, 1994.

AAR

Applicant's Name: Indian Security And Personnel Arrangement

GST Not Payable on Services Provided To Horticulture Dept. for Cleaning Transportation of Garbage: AAR

The Karnataka Authority of Advance Ruling (AAR) has held that the GST is not payable on services provided to the horticulture department for cleaning and sweeping of lawns, garden path areas, segregation and transportation of garbage.

The two-member bench of M.P. Ravi Prasad and T. Kiran Reddy has observed that GST is not payable on the services proposed to be provided to the Horticulture Department for the supply of manpower for garden maintenance on an outsourced basis to the Department of Horticulture.

Society Supplying Free Textbooks To Students Is Not "State Government": Karnataka AAR

Applicant's Name: Bhagyam Binding Works

The Karnataka Authority of Advance Ruling (AAR) has ruled that a society registered under the Karnataka Societies Act, 1960 and receiving grants from the Government of Karnataka for the supply of free textbooks to students cannot be considered as "State Government".

The two-member bench of M.P. Ravi Prasad and T. Kiran Reddy has observed that the rate of tax being charged by the printers on the printing of textbooks supplied to the society is taxable at the rate of 18% GST.

GST Exemption On Service Of Educating And Training Farmers Related To Agroforestry: Karnataka AAR

Applicant's Name: Avani infosoft Private Limited

The Karnataka Authority of Advance Ruling (AAR) has ruled that the services of educating and training farmers with regard to agroforestry through scientific research and knowledge do not attract GST.

The two-member bench of M.P. Ravi Prasad and T.Kiran Reddy has observed that the applicants, through their mara mitras, not only educate and train farmers with regard to agroforestry through scientific research and knowledge, but are also involved in hand holding the farmers from recording demand for saplings, picking up the samplings from nurseries to their plantation, and also monitoring post-plantation survival.

'Go-karts' Are Not Roadworthy, Can't Be Registered As Motor Vehicles With RTO: Karnataka AAR

Applicant's Name: Knk Karts (p) Limited

The Karnataka Authority of Advance Ruling (AAR) has ruled that the "Go-karts" are not roadworthy and cannot be registered as motor vehicles with the Regional Transport Authority (RTO). Go-Karts are not classifiable as "motor vehicles meant for carrying passengers or persons" under Chapter Tariff Heading 8703 of the First Schedule to the Customs Tariff Act, 1975.

The two–member bench of M.P. Ravi Prasad and T.Kiran Reddy has observed that the 'amusement park ride karts', commonly known as' Go-karts', manufactured and supplied by the applicant attract GST at the rate of 18%.