CA in Jaipur | CA. Yogesh Jangid |ITR Filing 2023 | Company Registration | NGO Registration | Income Tax Raid Cases | Audit | Inc Incroporation | CPA in India | Subsidy | Project Funding | GST | GST Raid Cases | Income Tax Notice Faceless | DRI Cases | https://www.nyca.in ITR Filing 2023 | Company Registration | NGO Registration | Income Tax Raid Cases | Audit | Inc Incroporation | CPA in India | Subsidy | Project Funding | GST | GST Raid Cases | Income Tax Notice Faceless | DRI Cases Wed, 03 Apr 2024 09:35:47 +0000 en-US hourly 1 https://wordpress.org/?v=6.9.1 https://www.nyca.in/wp-content/uploads/2022/08/9060CA_logo_icai-1.jpg CA in Jaipur | CA. Yogesh Jangid |ITR Filing 2023 | Company Registration | NGO Registration | Income Tax Raid Cases | Audit | Inc Incroporation | CPA in India | Subsidy | Project Funding | GST | GST Raid Cases | Income Tax Notice Faceless | DRI Cases | https://www.nyca.in 32 32 Bombay HC Invalidates Tax Order Without Personal Hearing https://www.nyca.in/bombay-hc-invalidates-tax-order-without-personal-hearing/ https://www.nyca.in/bombay-hc-invalidates-tax-order-without-personal-hearing/#respond Wed, 03 Apr 2024 09:35:47 +0000 https://www.nyca.in/?p=8197 In the case of Cowtown Software Design Pvt. Ltd. versus Union of India, heard in the Bombay High Court under Writ Petition (L) No. 31152 of 2023

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In the case of Cowtown Software Design Pvt. Ltd. versus Union of India, heard in the Bombay High Court under Writ Petition (L) No. 31152 of 2023, the court addressed the crucial issue of whether the denial of a personal hearing to the petitioner by tax authorities was in compliance with Section 75(4) of the GST Laws.

Facts of the Case & Timelines:

  • The petitioner contested an Order issued by the tax authorities, alleging a violation of Section 75(4) of the GST Laws and principles of natural justice.
  • The petitioner raised concerns over the issuance of an adverse Order without affording them a personal hearing.

Issue:

  • The central issue pertained to the denial of a personal hearing to the petitioner before the issuance of an adverse Order, a right claimed under the CGST Act.

Petitioner’s Argument:

  • The petitioner asserted that the Order was invalid due to its failure to adhere to the provisions of the CGST/MGST Act, which mandate a personal hearing before making adverse decisions. They emphasized the breach of principles of natural justice.

Respondent’s Argument:

  • The respondent contended that no personal hearing was necessary as the petitioner did not explicitly opt for one in the system, and their written response was deemed sufficient to address their contentions.

Held:

  • The Bombay High Court ruled in favor of the petitioner, declaring the impugned Order invalid. The court emphasized that a personal hearing is mandatory under the CGST Act, both upon request and when an adverse decision is anticipated. Consequently, the respondent was directed to provide a hearing and reconsider the case in light of the principles of natural justice.

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]]> https://www.nyca.in/bombay-hc-invalidates-tax-order-without-personal-hearing/feed/ 0 Madras High Court Strikes Down Excessive GST Demand on Trade Payables https://www.nyca.in/madras-high-court-strikes-down-excessive-gst-demand-on-trade-payables/ https://www.nyca.in/madras-high-court-strikes-down-excessive-gst-demand-on-trade-payables/#respond Sat, 30 Mar 2024 04:41:27 +0000 https://www.nyca.in/?p=8101 The Madras High Court invalidated the order demanding payment concerning all trade payables, asserting that it exceeded the boundaries outlined in the original show cause notice.

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Introduction:

The Madras High Court invalidated the order demanding payment concerning all trade payables, asserting that it exceeded the boundaries outlined in the original show cause notice. This ruling is significant in the realm of audit cases and is poised to have widespread benefits.

Facts of the case:

  • The petitioner contested an order dated 31.12.2023, arguing its overreach beyond the purview of a preceding show cause notice by subjecting all trade payables to GST.
  • Following an audit report on 26.09.2023, the petitioner received a notice on 30.09.2023 proposing a tax of Rs. 43,66,708.14. However, the final order imposed a tax exceeding Rs. 90 crores, markedly surpassing the initial estimate.
  • Despite compliance with statutory Input Tax Credit (ITC) requirements, the petitioner faced penalties.
  • The crux of the matter lies in the imposition of GST on the entirety of the petitioner's trade payables, a move perceived by the petitioner as beyond the notice's scope and contrary to legal provisions.

Petitioner’s Argument:

The petitioner contends that the order unjustly expanded the taxable amount well beyond the initial estimation, unfairly taxing trade payables as a taxable supply despite adhering to ITC regulations.

Held:

The Madras High Court deemed the imposition of GST on trade payables, as reflected in financial statements, prima facie unsustainable.

The court nullified the order, instructing the petitioner to remit 10% of the disputed amount, excluding trade payables, and mandated a fresh review with adequate opportunity for the petitioner to present their case.

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