High Court
Once Input Tax Credit Is Wrongfully Availed Due To Fraud Or Suppression, State Officer Can Issue Notice Even Without Central Action: Patna HC
The Patna High Court has upheld a tax assessment order passed by the State GST Authority, clarifying that once a Proper Officer determines that input tax credit has been wrongfully availed or utilized due to fraud or suppression of facts, they are empowered to issue a notice under Section 74(1) of the CGST/BGST Act, 2017. A Division Bench comprising Justice Rajeev Ranjan Prasad and...
Sale Of Liquid Carbon Dioxide Is Liable To Be Taxed At 5%: Andhra Pradesh High Court
The Andhra Pradesh High Court stated that the sale of liquid carbon dioxide is liable to be taxed at 5%. The Bench consists of Justices R Raghunandan Rao and K Manmadha Rao were addressing the issue of whether purified liquid Carbon Dioxide gas falls in the unclassified category of goods i.e., Schedule-V to the VAT Act, and is liable to be taxed @ 14.5% instead of 5%. In this...
Income Tax Act | Bona Fide Belief With Genuineness Of Transaction Constitutes Reasonable Cause U/S 273B; No Penalty Imposable U/S 271E: Chhattisgarh HC
The Chhattisgarh High Court held that bona fide belief coupled with genuineness of transactions constitutes a reasonable cause under section 273B of the Income Tax Act for not invoking Section 271E of the Act. The Division Bench of Justices Sanjay K. Agrawal and Deepak Kumar Tiwari referring to Section 273B of the Income Tax Act stated that the word 'reasonable cause' has not...
Ad-Hoc Arbitrator Can Grant Interest U/S 16 Of MSMED Act, Even If Reference Was Not Made To MSME Council: Delhi High Court
The Delhi High Court bench of Justice Jasmeet Singh held that an ad-hoc arbitrator (appointed under the Arbitration and Conciliation Act, 1996) is empowered to grant interest rate contemplated under Section 16 of the Micro, Small and Medium Enterprises Development Act, 2006, even if the reference was not made to the MSME Facilitation Council for resolving...
Penalty U/S 122(1A) Of CGST Act Can Be Imposed On Both Taxable And Non-Taxable Person: Delhi High Court
The Delhi High Court has held that the penalty for GST evasion contemplated under Section 122(1A) of the Central Goods and Services Tax Act 2017, can be imposed on 'any person'— whether taxable or non-taxable.A division bench of Justices Prathiba M. Singh and Rajneesh Kumar Gupta thus differed from the Bombay High Court's decision in Amit Manilal Haria V. The Joint Commissioner of CGST &...
Arbitrator Can Fix Fee In Consultation With Parties Without Recourse To A&C Act; Quantum Can't Be Challenged Under Article 227: Calcutta HC
The Calcutta High Court bench of Justice Bihas Ranjan De. has observed that an arbitrator can indeed fix his remuneration, and this can be done in a manner that may not comply with the Fourth Schedule of the Arbitration and Conciliation Act, 1996, provided that such a decision is made in consultation with the parties involved. When parties contractually agree on a fee, the Fourth...
GST Inspection Not Legally Sustainable Without Compliance With S.67 Of CGST Act & S.100 CrPC: Patna HC Quashes ₹88.64 Lakh Tax Demand
The Patna High Court, while allowing a petition challenging a tax demand of ₹88,64,550.50, has observed that an inspection conducted under the BGST/CGST regime is legally unsustainable if not carried out in compliance with Section 67 of the BGST/CGST Act, 2017 read with Section 100 of the Code of Criminal Procedure, 1973. According to Section 67 of BGST/CGST Act, 2017, an inspection to...
GST Dept Expected To Empathetically Consider Assessees' Requests To Adjourn Personal Hearing On Medical Grounds: Delhi High Court
The Delhi High Court has observed that the Goods and Services Tax authorities are expected to empathetically consider an assessee's request for adjournment of personal hearing on medical grounds.A division bench of Justices Prathiba M. Singh and Rajneesh Kumar Gupta said the Department should not proceed to pass adverse orders in such matters.The development comes in a petition filed by...
Rule 86A CGST Rules | Credit Ledger Can't Be Blocked For More Than One Year : Delhi High Court
The Delhi High Court has ordered unblocking of an enterprise's Electronic Credit Ledger following the lapse of one year since its initial blocking.In doing so, a division bench of Justices Prathiba M. Singh and Rajneesh Kumar Gupta cited Rule 86A of the Central Goods and Services Tax Rules, 2017 which lays down the conditions of use of amount available in electronic credit ledger. It...
Jharkhand HC Quashes ITAT Relief To Assessee For Relying On Overruled Precedent In TDS Default Case, Remands Matter For Fresh Adjudication
The Jharkhand High Court has quashed an order of the Income Tax Appellate Tribunal (ITAT), Circuit Bench, Ranchi, after finding that it was solely based on a precedent that had been overruled by the Supreme Court. The Tribunal had earlier deleted the entire addition made by the Assessing Officer under Section 40(a)(ia) of the Income Tax Act, 1961, on the ground that the payments in question...
Delhi High Court Denies Relief To Firm Allegedly Involved In ₹550 Crore GST Fraud, Questions Its Conduct Before Dept
The Delhi High Court refused to entertain a writ petition filed by a Noida based firm allegedly involved in GST fraud of over Rs. 550 crores.In doing so, a division bench of Justices Prathiba M. Singh and Rajneesh Kumar Gupta were unappreciative of the Petitioner's conduct in responding to the Department's proceedings.A demand of over ₹550 crores has been raised from various firms including...
Customs Act Grants Unfettered Investigative Powers Where Infraction Is Suspected: Patna High Court
The Patna High Court has held in a recent judgement that the Customs Act, 1962 provides 'unfettered power' to investigate where there are reasons to believe that there has been infraction of its provisions.Presiding over the case, Justice Mohit Kumar Shah, observed, “The investigation cannot be nipped in the bud and be prevented simply on the basis of certain technicalities. The Customs...