Daily Updates

GST Order passed without hearing assessee to be set aside and matter was to be remitted to pass fresh orders: High Court:- Where assessee filed application under section 161 for rectification of certain mistakes in an assessment order, but impugned order was passed without hearing assessee, same was to be set aside and matter was …

Judicial Corner: GST – Order passed without hearing assessee to be set aside and matter was to be remitted to pass fresh orders: High Court:- Where assessee filed application under section 161 for rectification of certain mistakes in an assessment order, but impugned order was passed without hearing assessee, same was to be set aside and matter was to be remitted to pass fresh orders after hearing assessee (23.08.2024) Read More »

GST: The Madras High Court upheld the jurisdiction of an Intelligence Officer to pass assessment orders under the GST law. The assessee challenged the assessment orders on the grounds that, according to a circular Circular No.23/2021 [PP2/GST-15/54/2021], dated 04.10.202, Intelligence Officers should not adjudicate such matters. However, the Hon’ble Madras High Court  held that there …

Judicial Corner: GST- The Madras High Court upheld the jurisdiction of an Intelligence Officer to pass assessment orders under the GST law. The assessee challenged the assessment orders on the grounds that, according to a circular Circular No.23/2021 [PP2/GST-15/54/2021], dated 04.10.202, Intelligence Officers should not adjudicate such matters. However, the Hon’ble Madras High Court  held that there is no prohibition under the GST Act preventing an Intelligence Officer from passing such orders and that the assessee was not prejudiced by this.(22.08.2024) Read More »

Excise & Service Tax  Credit on input services could not be denied if Service Tax was paid on output services that were not taxable: CESTAT:- Benefit of Compensation Scheme for payment of Service Tax on Works Contract service could not be denied for failure to exercise option thereunder before due date of payment of Service …

Excise & Service Tax  Credit on input services could not be denied if Service Tax was paid on output services that were not taxable: CESTAT:- Benefit of Compensation Scheme for payment of Service Tax on Works Contract service could not be denied for failure to exercise option thereunder before due date of payment of Service Tax if such option was exercised before payment of Service Tax.(22.08.2024) Read More »

RBI The RBI has updated the Non-Banking Finance Company (NBFC) – Peer to Peer Lending Platform Directions, 2017; to clarify and modify certain provisions. Under the revised norms, NBFC-P2Ps are restricted from cross-selling any products except loan-specific insurance. They are also prohibited from offering insurance products that serve as credit enhancement or credit guarantees. [ …

RBI: The RBI has updated the Non-Banking Finance Company (NBFC) – Peer to Peer Lending Platform Directions, 2017; to clarify and modify certain provisions.(20.08.2024) Read More »

Customs: No duty can be demanded on mere assumption that EOU unit diverted goods from SEZ to DTA: CESTAT:- Where department had not produced cogent evidence to support their allegation of clandestine removal of good quality goods from SEZ trading unit under department’s physical control to DTA and attempt to export inferior quality goods, even …

Customs: No duty can be demanded on mere assumption that EOU unit diverted goods from SEZ to DTA: CESTAT:- Where department had not produced cogent evidence to support their allegation of clandestine removal of good quality goods from SEZ trading unit under department’s physical control to DTA and attempt to export inferior quality goods, even if it was presumed that goods were diverted before bringing into SEZ, Customs duty for removal of goods from SEZ could not be demanded, and goods were not liable to confiscation.(21.08.2024) Read More »

Customs  Allegation of mis-declaration of goods couldn’t be sustained if there was insignificant difference in quantity: CESTAT:- Rejection and enhancement of transaction value of imported goods based solely on NIDB data without detailed discussion not sustainable Misdeclaration allegation not sustained due to minor variation in weight of imported goods (declared in kilograms but assessed in …

Judicial Corner: Customs  Allegation of mis-declaration of goods couldn’t be sustained if there was insignificant difference in quantity: CESTAT:- Rejection and enhancement of transaction value of imported goods based solely on NIDB data without detailed discussion not sustainable Misdeclaration allegation not sustained due to minor variation in weight of imported goods (declared in kilograms but assessed in meters), redemption fine and penalty set aside (20.08.204) Read More »

Customs  Supreme Court dismissed SLP against High Court order that appeal against confiscation of foreign currency was maintainable before CESTAT:- Supreme Court dismisses SLP against High Court order holding that Chairman/MD of a company, who was proceeding on a foreign trip along with a travel coordinator of an event management company to attend business meetings …

Judicial Corner: Customs  Supreme Court dismissed SLP against High Court order that appeal against confiscation of foreign currency was maintainable before CESTAT:- Supreme Court dismisses SLP against High Court order holding that Chairman/MD of a company, who was proceeding on a foreign trip along with a travel coordinator of an event management company to attend business meetings on behalf his company, could not be treated as beneficial owner of foreign currency seized from possession of travel coordinator during check-in at Indian airport and could not be subjected to penalty if such currency was provided to him by event management company to meet expenses to be incurred on such business visit(19.08.2024) Read More »

GST:   HC set aside penalty order & remanded matter as it was issued without assigning reasons: The petitioner’s GST registration was cancelled due to business shifting and was later revoked under an amnesty scheme.  Despite the revocation, proceedings were initiated for mismatches between GSTR 3B, GSTR 2A, and GSTR 1 returns. The petitioner provided …

Judicial Corner: HC set aside penalty order & remanded matter as it was issued without assigning reasons: The petitioner’s GST registration was cancelled due to business shifting and was later revoked under an amnesty scheme.  Despite the revocation, proceedings were initiated for mismatches between GSTR 3B, GSTR 2A, and GSTR 1 returns. The petitioner provided an explanation regarding the change of address.(17.08.2024) Read More »

GST  HC set aside order as assessee couldn’t reply to SCN on account of being unaware of proceedings:- Where assessee could not reply to show cause notice on account of being unaware of proceedings, order confirming tax liability for mismatch between GSTR 3B returns and GSTR-1 statement was to be set aside and matter was …

Judicial Corner: GST  HC set aside order as assessee couldn’t reply to SCN on account of being unaware of proceedings:- Where assessee could not reply to show cause notice on account of being unaware of proceedings, order confirming tax liability for mismatch between GSTR 3B returns and GSTR-1 statement was to be set aside and matter was to be remanded for passing fresh order. (16.08.2024) Read More »

RBI: The Reserve Bank of India (RBI) directing the credit information companies (CICs) and credit institutions (CIs) to keep the credit information collected/maintained by them updated fortnightly basis (i.e., as on 15th and last day of the respective month) or at such shorter intervals on a as mutually agreed by them. These instructions shall be …

RBI: The Reserve Bank of India (RBI) directing the credit information companies (CICs) and credit institutions (CIs) to keep the credit information collected/maintained by them updated fortnightly basis (i.e., as on 15th and last day of the respective month) or at such shorter intervals on a as mutually agreed by them. (14.08.2024) Read More »

Customs  Expenses incurred on advertisement & promotion of imported goods not to be added to transaction value: CESTAT:- Importer’s agreement with foreign supplier to promote sales of imported products, with discretion to foreign supplier to cancel agreement if importer had not spent amount indicated in agreement, did not mean that there was enforceable right; hence, …

Judicial Corner: Customs  Expenses incurred on advertisement & promotion of imported goods not to be added to transaction value: CESTAT:- Importer’s agreement with foreign supplier to promote sales of imported products, with discretion to foreign supplier to cancel agreement if importer had not spent amount indicated in agreement, did not mean that there was enforceable right; hence, importer’s expenditure on advertisement, marketing and promotion of imported products could not be added to assessable value of imported goods.(14.08.2024) Read More »

Income Tax  The Central Board of Direct Taxes (CBDT) addresses the provisions of Tax Deducted at Source (TDS) and Tax Collected at Source (TCS) in the event of the death of the deductee or collectee before linking their PAN and Aadhaar. Relaxation of Provisions: The circular provides relief by stating that there will be no …

Income Tax: The Central Board of Direct Taxes (CBDT) addresses the provisions of Tax Deducted at Source (TDS) and Tax Collected at Source (TCS) in the event of the death of the deductee or collectee before linking their PAN and Aadhaar.(13.08.2024) Read More »

RBI: The Reserve Bank of India (RBI) extended the Modified Interest Subvention Scheme (MISS) for short-term agricultural loans through Kisan Credit Cards (KCC) for the financial year 2024-25. Loan Limit: The scheme provides interest subvention on loans up to ₹3 lakh for crop and allied activities, such as animal husbandry, dairy, fisheries, and beekeeping. Interest …

RBI: The Reserve Bank of India (RBI) extended the Modified Interest Subvention Scheme (MISS) for short-term agricultural loans through Kisan Credit Cards (KCC) for the financial year 2024-25.(13.08.2024) Read More »

GST  High Court directs assessee to approach appellate authority as alternative remedy was available under GST law:- Where assessee sought to rectify GST returns after assessment order, directed to file appeal with condonation application, allowing manual submission if online filing is restricted due to limitation period.  (In the high court of Calcutta in Narendra Kumar …

Judicial Corner: GST  High Court directs assessee to approach appellate authority as alternative remedy was available under GST law:- Where assessee sought to rectify GST returns after assessment order, directed to file appeal with condonation application, allowing manual submission if online filing is restricted due to limitation period. (13.08.2024) Read More »

RBI The Reserve Bank of India (RBI) has updated guidelines on the Prudential Treatment of Bad and Doubtful Debt Reserve (BDDR) for co-operative banks. Here are the Highlights – Uniform Treatment: Standardizing the accounting and regulatory treatment of BDDR in line with Accounting Standard (AS) 5. Expense Recognition: Provisions for Non-Performing Assets (NPAs) must now …

RBI: The Reserve Bank of India (RBI) has updated guidelines on the Prudential Treatment of Bad and Doubtful Debt Reserve (BDDR) for co-operative banks.(12.08.2024) Read More »

DGFT: DGFT focuses on the harmonization of Chapters 40 to 98 of Schedule-II (Export Policy) to ITC (HS) codes. This harmonization aims to streamline the export control and facilitation process by aligning the export policy with the 8-digit ITC (HS) codes, providing greater clarity and ease of reference for stakeholders. This is part of an …

DGFT:DGFT focuses on the harmonization of Chapters 40 to 98 of Schedule-II (Export Policy) to ITC (HS) codes.(12.08.2024) Read More »

DGFT: Inclusion of Kandla and Vishakhapatnam Sea ports for Export of Essential Commodities to Maldives during FY 2024-25. The Kandla and Vishakhapatnam Customs Sea ports have been added to the list of ports allowed for Export of Essential Commodities, which are under the Prohibited/Restricted category. [Notification no. 22/2024-25 dated 01st August 2024]

GST: Bonafide purchasing dealers should not be denied ITC for non-compliance of selling dealers: Petitioners argue it is unreasonable to hold purchasing dealers responsible for selling dealers’ failure to deposit collected tax. Delhi High Court precedent (On Quest Merchandising India Pvt. Ltd.) supports the petitioners, ruling that bona fide purchasing dealers should not be penalized …

Judicial Corner: GST: Bonafide purchasing dealers should not be denied ITC for non-compliance of selling dealers: Petitioners argue it is unreasonable to hold purchasing dealers responsible for selling dealers’ failure to deposit collected tax. Delhi High Court precedent (On Quest Merchandising India Pvt. Ltd.) supports the petitioners, ruling that bona fide purchasing dealers should not be penalized for selling dealers’ tax non-compliance.(12.08.2024) Read More »

Customs  Parts for use solely with transmission shafts used in motor vehicles are classifiable under CTH 8483: CESTAT:- Universal Joint Cross, parts, body, cup, needly roller and SNAP ring, for use solely with transmission shafts used in motor vehicles, are more specifically classifiable under Tariff Item 8483 60 90 and not under Heading 8708; it …

Judicial Corner: Customs  Parts for use solely with transmission shafts used in motor vehicles are classifiable under CTH 8483: CESTAT:- Universal Joint Cross, parts, body, cup, needly roller and SNAP ring, for use solely with transmission shafts used in motor vehicles, are more specifically classifiable under Tariff Item 8483 60 90 and not under Heading 8708; it is more so in view of specific exclusion of articles of Heading 8483 in Section Note 2(e) of Section XVII, under which Chapter 87 falls.(09.08.2024) Read More »

GST: ISD Mechanism for mandatory distribution by Input Service Distributor shall be effective from 01-04-2025 for distribution of ITC. The taxpayer has been granted additional time to obtain ISD registration and establish an internal compliance system. [Notification no. 16/2024 dated 06th August 2024]