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Income tax refund will be available soon and the seized properties will also be returned

editor — Sat, 13 Apr 2024 10:52:23 +0000

If you pay tax then it is a matter of relief for you. The Income Tax Department will dispose of the appeals related to TDS payment and tax from the current financial year i.e. 2024-25 as soon as possible. With this you will also get income tax refund soon. The department is preparing an action plan for this, which will be implemented soon. The Central Board of Direct Taxes (CBDT) has asked the Income Tax Department to prepare an action plan by which possible tax-related issues are identified and resolved immediately. In this scheme, there will be a fixed time limit for returning the seized property. The department said that such properties will be returned by June 30, 2024. It aims to finalize pending compounding proposals by March 31, 2024, and dispose of at least 150 appeals by June 30.

You can file a case before the Assessing Officer: Under the new decision of the Income Tax Department, taxpayers will now have to file an application for pending refund before the Assessing Officer. Processing of applications for nil/reduced TDS or TCS certificates under section 195/197/206C will be expedited. They will be resolved within a month of receipt of applications from April 1, 2024.

Priority for disposal of appeals filed before April 1, 2020: The department said that disposal of appeals filed before April 1, 2020 will be given priority. After this, appeals filed after April 1, 2020 will be disposed of. This decision is an important step towards increasing administrative efficiency. Immediate measures have been initiated for resolution of complaints through e-redressal and CPGRAMS platforms.

Source: https://www.internationalnewsandviews.com/income-tax-refund-will-be-available-soon-and-the-seized-properties-will-also-be-returned/

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Extension of Appeal Filing Time by the Appellate Authority

editor — Fri, 12 Apr 2024 05:00:41 +0000

Introduction:

The authority of the Appellate Authority to extend the period for filing an appeal was deliberated upon in the case of Jyanata Ghosh v. State of West Bengal by the Hon’ble Calcutta High Court.

Facts of the Case:

Mr. Jyanata Ghosh, referred to as the Petitioner, received a Show Cause Notice (SCN) which lacked essential details regarding personal hearing.
Following the SCN, an Order was issued on August 11, 2023, under Section 74 of the Central Goods and Services Tax Act, 2017, demanding a significant sum from the Petitioner for a specified period.
The issuance of this order violated principles of natural justice as it did not grant the Petitioner an opportunity for personal hearing.
Challenging this order, the Petitioner appealed before the Appellate Authority under Section 107 of the CGST Act, only to have the appeal dismissed on the grounds of limitation.

Issue:

Whether the Appellate Authority possesses the jurisdiction to extend the period for filing an appeal.

Held:

The Hon’ble Calcutta High Court directed that the Appellate Authority should have granted the Petitioner a personal hearing and decided the appeal on its merits, emphasizing the violation of the principle of natural justice.
The court cited precedents such as Murtaza B Kaukawala v. State of West Bengal and S.K. Chakraborty & Sons v. Union of India, highlighting that delay can be condoned if the principles of natural justice are violated.
It was further noted that the prescribed period for filing an appeal, initially set at 30 days, can be extended by the Appellate Authority, as mandated by Section 5 of the Limitation Act, 1963.
Consequently, the court condoned the delay in filing the appeal and allowed the writ petition by setting aside the impugned order dated January 17, 2024. Additionally, it ordered a stay on the recovery proceedings pending the disposal of the appeal case, upon the Petitioner’s deposit of the pre-deposit amount, thereby disposing of the writ petition in favor of the Petitioner.

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Central GST Authority cannot initiate proceedings when State GST Authority has already initiated proceedings on the same subject matter

editor — Sat, 23 Mar 2024 05:00:24 +0000

The Gauhati High Court, in the matter of Rajesh Mittal vs Union of India [WP(C) No. 371 of 2024 dated January 25, 2024], based its decision on sub-clause (b) of sub-section (2) of Section 6 of the Central Goods and Services Tax Act, 2017 (“the CGST Act”). It ordered a halt to the proceedings initiated by the Revenue Department. The court ruled that the Central GST Authority had improperly issued the Show Cause Notice (SCN) when the State GST Authorities had already issued an SCN on the same issue.

Facts of the case:

Rajesh Mittal, hereinafter referred to as "the Petitioner," was served a Show Cause Notice (SCN) by both the State GST Authorities and the Central GST Authority.
The State GST Authorities issued the SCN on December 01, 2023, while the Central GST Authority issued theirs on December 27, 2023.
The notices accused the Petitioner of wrongfully availing input tax credit (ITC), violating Section 16(4) of the Central Goods and Services Tax Act, 2017 ("the CGST Act").
The Petitioner responded to the notices accordingly.

Held:

The Gauhati High Court, in the case of WP(C) No. 371 of 2024 dated January 25, 2024, based its decision on sub-clause (b) of sub-section (2) of Section 6 of the CGST Act.

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Prohibition of Concurrent Proceedings for the Same Period under GST Legislation

editor — Fri, 22 Mar 2024 08:15:17 +0000

Introduction:

In a significant judgment, the Hon’ble Guwahati High Court addressed the issue of whether simultaneous proceedings for the same period under both the Central Goods and Services Tax Act, 2017 (CGST Act) and the State Goods and Services Tax Act, 2017 (SGST Act) are permissible. The court, in the case of Subhash Agarwalla v. State of Assam [Case No. WP(C)/ 683/2024 dated February 12, 2024], ruled that the initiation of proceedings under either the CGST Act or the SGST Act precludes the initiation of parallel proceedings for the same period under the other act. Consequently, any order issued under one act remains suspended until the specified returnable date. This article examines the case of Subhash Agarwalla v. State of Assam, providing insights into its background, the court’s decision, and its implications for the broader landscape of GST law.

Facts:

Subhash Agarwalla (“the Petitioner”) received a Demand-cum-Show Cause Notice dated November 23, 2022 (“the Impugned SCN”) from the SGST Authority under Section 73 of the SGST Act, regarding potential liabilities for the Financial Year 2017-2018. Subsequently, another Demand-cum-Show Cause Notice dated April 27, 2023 (“the Impugned SCN”) was issued by the CGST Authority, covering the Financial Years 2017-2018, 2018-2019 & 2019-2020. Both notices alleged the improper utilization of Input Tax Credit (“ITC”) by the Petitioner, violating Section 16(4) of the CGST Act/SGST Act. Following the Impugned SCN, the CGST Authority issued an Order-in-Original on November 14, 2023 (“the Impugned Order”). Subsequently, the SGST Authority passed its own Order-in-Original on December 11, 2023 (“the Impugned Order”).

Issue:

The primary issue at hand is whether initiating two parallel proceedings for the same period is permissible under GST Law.

Held:

The Hon’ble Guwahati High Court, in Case No. WP(C)/ 683/2024, held the following:

Conclusion:

The ruling by the Guwahati High Court establishes a precedent, emphasizing the prohibition of simultaneous proceedings for the same period under the CGST and SGST Acts. This decision reflects the legislative intent to prevent redundancy and ensure an efficient adjudication process. As businesses navigate GST compliance complexities, understanding such legal nuances is crucial to mitigate unnecessary legal complications.

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