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 Sat, 13 Apr 2024 09:17:23 +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 High Court Invalidates Registration Amendment Rejection: Lack of Reasons Criticized https://www.nyca.in/bombay-high-court-invalidates-registration-amendment-rejection-lack-of-reasons-criticized/ https://www.nyca.in/bombay-high-court-invalidates-registration-amendment-rejection-lack-of-reasons-criticized/#respond Sat, 13 Apr 2024 09:17:23 +0000 https://www.nyca.in/?p=8575 The Bombay High Court has invalidated the rejection of an application for registration amendment due to the lack of reasons provided for the rejection.

The post Bombay High Court Invalidates Registration Amendment Rejection: Lack of Reasons Criticized appeared first on 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.

]]>

Introduction:

The Bombay High Court has invalidated the rejection of an application for registration amendment due to the lack of reasons provided for the rejection.

Facts of the case:

  • The petitioner's application for an address change was rejected on 3rd November 2023.
  • Subsequently, a show cause notice for the cancellation of registration was issued on 20th December 2023.

Issue:

  • The issue revolves around the rejection of the petitioner's application for registration amendment (change in address) without granting an opportunity for a hearing.
  • Additionally, there was concern over the lack of reasons provided for the rejection.

Argument by the Petitioner:

  • The petitioner contended that the rejection violated Section 28 of the CGST Act, which mandates an opportunity to be heard before any rejection of an amendment application.
  • They also emphasized the absence of reasons for the rejection.

Court Judgment:

  • The Bombay High Court invalidated the rejection order and directed the Deputy Commissioner to reconsider the petitioner's application within two weeks.
  • The reconsideration should follow proper legal procedures and include providing an opportunity for the petitioner to be heard.

category

The post Bombay High Court Invalidates Registration Amendment Rejection: Lack of Reasons Criticized appeared first on 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/bombay-high-court-invalidates-registration-amendment-rejection-lack-of-reasons-criticized/feed/ 0 Calcutta High Court’s Verdict on GST Pre-Deposit Requirements https://www.nyca.in/calcutta-high-courts-verdict-on-gst-pre-deposit-requirements/ https://www.nyca.in/calcutta-high-courts-verdict-on-gst-pre-deposit-requirements/#respond Fri, 12 Apr 2024 10:29:32 +0000 https://www.nyca.in/?p=8519 In a recent ruling, the Calcutta High Court addressed the clarification of GST pre-deposit requirements, specifically focusing on the interpretation discrepancy between the GST Department and the GST Law.

The post Calcutta High Court’s Verdict on GST Pre-Deposit Requirements appeared first on 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.

]]>

Introduction:

In a recent ruling, the Calcutta High Court addressed the clarification of GST pre-deposit requirements, specifically focusing on the interpretation discrepancy between the GST Department and the GST Law.

Facts of the Case:

  • A writ petition challenged an interim order dated January 25, 2024, demanding a pre-deposit of 20% of the disputed unpaid interest.
  • The dispute stemmed from interest demands on belatedly filed returns for a specific financial year, with the petitioner seeking relief due to the non-constitution of the appellate tribunal.

Issue:

  • The central concern was whether the petitioner must pre-deposit 20% of the disputed interest alongside the tax in dispute before filing an appeal, as indicated by the interim order.

Petitioner’s Argument:

  • The petitioner argued that while the GST Act mandates a pre-deposit of 20% of the remaining tax amount in dispute, it does not explicitly extend this requirement to disputed interest.

Respondent’s Argument:

  • The respondent countered, asserting that the interim order was discretionary and aimed at safeguarding revenue interests, without any procedural error.

Held:

  • The Calcutta High Court overturned the portion of the order mandating the petitioner to pay 20% of the remaining interest, directing a halt to recovery proceedings until the writ petition is heard and disposed of.

category

The post Calcutta High Court’s Verdict on GST Pre-Deposit Requirements appeared first on 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/calcutta-high-courts-verdict-on-gst-pre-deposit-requirements/feed/ 0 Employees get ₹3,731 crore GST penalty demand; Bombay HC strikes it down https://www.nyca.in/employees-get-%e2%82%b93731-crore-gst-penalty-demand-bombay-hc-strikes-it-down/ https://www.nyca.in/employees-get-%e2%82%b93731-crore-gst-penalty-demand-bombay-hc-strikes-it-down/#respond Thu, 04 Apr 2024 05:43:47 +0000 https://www.nyca.in/?p=8230 Should an employee of a company be held responsible for forking out penalties related to tax demands raised on the company by revenue authorities?

The post Employees get ₹3,731 crore GST penalty demand; Bombay HC strikes it down appeared first on 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.

]]>

Should an employee of a company be held responsible for forking out penalties related to tax demands raised on the company by revenue authorities? Goods and Services Tax (GST) enforcement officials believed so when they slapped a demand last September for a ₹3,731 crore penalty on a taxation manager and other employees of global logistics major Maersk for alleged tax evasion of the same amount by the company.

In a judgment that could bring relief to other employees at firms in the midst of GST disputes, the Bombay High Court last week struck down the demand and show cause notices issued by the Directorate General of Goods and Service Tax Intelligence in the case, terming them bad and illegal.

 

Terming it “highly unconscionable and disproportionate” for revenue officers to hold employees responsible for liabilities of the company, a division bench of Justice GS Kulkarni and Justice Firdosh P Pooniwalla held it would not be incorrect to contend that the purpose of issuing the show cause notice to the petitioner who is merely an employee, was designed to threaten and pressurize them.

GST officials had alleged that a sum of ₹1561 crore was wrongly utilized as Input Tax Credit by Maersk and those credits were wrongfully distributed. While Maersk is a foreign company which does not have any employee or fixed establishment in India, solely for the purpose of representing and acting on its behalf before the Indian tax authorities, the firm had given the power of attorney to some employees of its steamer agent in India, incorporated as Maersk Line India Pvt. Ltd.

“This ruling is significant for employees of large-sized businesses, where potentially interpretative GST positions are adopted by employees without any malafide intention. Such imposition of substantial penalties in recent investigations had caused lot of unrest amongst such employees,” an expert said.

Source: https://www.thehindu.com/business/employee-gets-3731-crore-gst-penalty-demand-bombay-hc-strikes-it-down/article68025394.ece

category

The post Employees get ₹3,731 crore GST penalty demand; Bombay HC strikes it down appeared first on 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/employees-get-%e2%82%b93731-crore-gst-penalty-demand-bombay-hc-strikes-it-down/feed/ 0 High Court of Gujarat Rules on GST Case https://www.nyca.in/high-court-of-gujarat-rules-on-gst-case/ https://www.nyca.in/high-court-of-gujarat-rules-on-gst-case/#respond Thu, 04 Apr 2024 04:44:00 +0000 https://www.nyca.in/?p=8214 In a significant legal development, the High Court of Gujarat has recently issued a noteworthy ruling in the case of OTSUKA PHARMACEUTICAL INDIA PVT LTD versus UNION OF INDIA.

The post High Court of Gujarat Rules on GST Case appeared first on 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.

]]>

In a significant legal development, the High Court of Gujarat has recently issued a noteworthy ruling in the case of OTSUKA PHARMACEUTICAL INDIA PVT LTD versus UNION OF INDIA. This ruling addresses a crucial aspect pertaining to the Goods and Services Tax (GST) regime, particularly focusing on the retrospective application of amendments to Rule 108 of the CGST Rules, 2017. The case, denoted as R/SPECIAL CIVIL APPLICATION NO. 13209/210/212/213/215 of 2023, reached its culmination on 27th March 2024.

Facts of the Case:

  • The petitioner, OTSUKA PHARMACEUTICAL INDIA PVT LTD, contested against the UNION OF INDIA, asserting that Rule 108(3) of the CGST Rules should not be applicable in their situation. They contended that their online appeals were based on the Order-in-Original made available by the adjudicating authority.
  • The crux of the issue revolved around the requirement for the petitioner to submit the decision or order being appealed against within seven days of filing the appeal under sub-rule (1) of Rule 108, and the subsequent issuance of a final acknowledgment by the appellate authority indicating the appeal number.

Held:

  • The High Court determined that the petitioner was indeed obligated to adhere to the stipulated timeline for submitting the decision or order appealed against, as outlined in Rule 108.
  • While acknowledging the justifiability of the appellate authority's rejection of appeals due to delays, the Court referenced the Minutes of the 48th Meeting of the GST Council. This documented the Council's acceptance of recommendations put forth by the Law Committee.
  • According to these recommendations, when an order subject to appeal is issued or uploaded on the common portal and is accessible to the appellate authority, the necessity for the appellant to furnish a certified copy of such an uploaded order becomes inconsequential due to its online availability.
  • Consequently, the retrospective effect of the amendment to Rule 108, effective from 26th December 2022, was affirmed by the Court as being clarificatory in nature.
  • In light of this clarification, the impugned order passed by the appellate authority rejecting the appeal on grounds of delay was deemed untenable. Therefore, the High Court proceeded to quash and set aside the impugned order.

category

The post High Court of Gujarat Rules on GST Case appeared first on 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/high-court-of-gujarat-rules-on-gst-case/feed/ 0 Madras High Court Invalidates GST Assessment Over ITC Disparity https://www.nyca.in/madras-high-court-invalidates-gst-assessment-over-itc-disparity/ https://www.nyca.in/madras-high-court-invalidates-gst-assessment-over-itc-disparity/#respond Tue, 02 Apr 2024 04:58:07 +0000 https://www.nyca.in/?p=8163 In a significant ruling, the Madras High Court addressed the validity of a GST assessment order in the case of Sri Lakshmi Silvers versus The State Tax Officer, Gugai Circle, Salem.

The post Madras High Court Invalidates GST Assessment Over ITC Disparity appeared first on 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.

]]>

In a significant ruling, the Madras High Court addressed the validity of a GST assessment order in the case of Sri Lakshmi Silvers versus The State Tax Officer, Gugai Circle, Salem. The case centered on the adherence to procedural guidelines and principles of natural justice in GST assessments, particularly concerning disparities between GSTR-3B and GSTR-2A returns.

Facts of the Case:

  • The petitioner, engaged in the supply of base metals, faced a GST assessment order pertaining to the tax demand arising from differences between the Input Tax Credit (ITC) claimed in GSTR-3B returns and that reflected in the auto-populated GSTR-2A returns for the year 2019-20.
  • Despite receiving a notice and show cause notice, the petitioner, relying on their accountant, remained unaware, resulting in no response from their side.
  • The central issue revolved around the validity of the assessment order, particularly concerning principles of natural justice and adherence to specific circulars regarding GST return discrepancies.

Petitioner’s Argument:

  • The petitioner contended the lack of opportunity to contest the tax demand, citing non-adherence to circulars issued by the Central Board of Indirect Taxes and Customs concerning handling disparities between GSTR-3B and GSTR-2A returns.
  • As a condition for remanding the case, the petitioner offered to remit 10% of the disputed tax demand.

Department’s Argument:

  • The tax demand was based solely on the disparity between the ITC claimed in GSTR-3B and GSTR-2A returns, without evidence indicating non-genuine transactions.

Held:

  • The Madras High Court quashed the impugned assessment order, subject to the petitioner remitting 10% of the disputed tax demand.
  • It granted the petitioner the opportunity to respond to the show cause notice, directing the assessing officer to provide a reasonable opportunity for a hearing and to issue a fresh assessment order in accordance with the law.

category

The post Madras High Court Invalidates GST Assessment Over ITC Disparity appeared first on 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/madras-high-court-invalidates-gst-assessment-over-itc-disparity/feed/ 0 CBDT Releases Guidelines for Expedited Appeal Disposal https://www.nyca.in/cbdt-releases-guidelines-for-expedited-appeal-disposal/ https://www.nyca.in/cbdt-releases-guidelines-for-expedited-appeal-disposal/#respond Tue, 12 Mar 2024 04:39:13 +0000 https://www.nyca.in/?p=7390 The Central Board of Direct Taxes (CBDT) has issued guidelines, dated March 07, 2024, under F.No.279/Misc/M-102/2021-ITJ, aimed at expediting the handling of appeals by Commissioners of Income Tax (Appeals/Assessment Unit) or Additional/Joint CIT(A).

The post CBDT Releases Guidelines for Expedited Appeal Disposal appeared first on 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.

]]>

The Central Board of Direct Taxes (CBDT) has issued guidelines, dated March 07, 2024, under F.No.279/Misc/M-102/2021-ITJ, aimed at expediting the handling of appeals by Commissioners of Income Tax (Appeals/Assessment Unit) or Additional/Joint CIT(A).

As per these directives, priority resolution will be given to appeals involving genuine and exceptional circumstances, either initiated by the appellant themselves or referred by the Assessing Officer/Range Head. Principal Chief Commissioners of Income Tax/Chief Commissioners of Income Tax/Directors General of Income Tax will assess these appeals based on advice from local tax authorities.

Examples of such extraordinary situations include appeals with a demand exceeding Rs. 1 Crore, cases flagged by VIPs or the Prime Minister’s Office for prompt resolution, appeals mandated by courts for swift handling, appeals from senior or super senior citizens, or any other appeal presenting genuine difficulties.

For appeals under the jurisdiction of faceless Commissioners of Income Tax (Appeals Unit), requests for expedited processing should be directed to the Principal Chief Commissioner of Income Tax (National Faceless Assessment Centre), who will then forward them to the relevant Commissioner of Income Tax (Appeals Unit).

The guidelines are available for reference at: https://www.nyca.in/wp-content/uploads/2024/03/Guidelines_for_priority_out_of_turn_disposal_of_appeals_by_CsIT.pdf

category

The post CBDT Releases Guidelines for Expedited Appeal Disposal appeared first on 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/cbdt-releases-guidelines-for-expedited-appeal-disposal/feed/ 0