Daily Updates

Excise  SC dismisses appeal against HC order which allowed refund on goods cleared by DTA unit to 100% EOU on ground of low tax effect: Refund of Cenvat credit on inputs used in manufacture of goods cleared by DTA to 100% EOU cannot be denied of sale being deemed export and not physical export. Apex …

Judicial Corner: Excise – SC dismisses appeal against HC order which allowed refund on goods cleared by DTA unit to 100% EOU on ground of low tax effect: Refund of Cenvat credit on inputs used in manufacture of goods cleared by DTA to 100% EOU cannot be denied of sale being deemed export and not physical export. Apex Court dismisses Revenue’s appeal on ground of low tax effect.(02.09.2024) Read More »

GST  HC dismissed writ petition against penalty order since petitioner failed to prove actual physical movement of goods: – Where assessee availed input tax credit on purchases from a company which was found non-existent and also assessee failed to discharge its onus to prove and establish beyond doubt actual transaction, actual physical movement of goods …

Judicial Corner: GST- HC dismissed writ petition against penalty order since petitioner failed to prove actual physical movement of goods: – Where assessee availed input tax credit on purchases from a company which was found non-existent and also assessee failed to discharge its onus to prove and establish beyond doubt actual transaction, actual physical movement of goods as also genuineness of transactions, order imposing tax and penalty along with interest upon assessee was not to be interfered. (31.08.2024) Read More »

GST  Intimation in Form GST DRC-01A not to be issued simultaneously with show cause notice under Section 73: HC:- Since petitioner was denied a valuable right of filing its submission in response to intimation in Form GST DRA-01A, order passed by respondent-revenue under section 73(9) was to be quashed and matter was to remitted back …

Judicial Corner: GST  Intimation in Form GST DRC-01A not to be issued simultaneously with show cause notice under Section 73: HC:- Since petitioner was denied a valuable right of filing its submission in response to intimation in Form GST DRA-01A, order passed by respondent-revenue under section 73(9) was to be quashed and matter was to remitted back to Competent Authority (30.08.2024) Read More »

GST  Provisional attachment order can’t be extended by mere noting in file of concerned Officer: HC:- On expiry of one year from date of provisional attachment of bank account, no fresh order having being passed by Revenue Authority, mere noting in file of concerned Officer could not constitute an order for extension of attachment period. …

Judicial Corner: GST  Provisional attachment order can’t be extended by mere noting in file of concerned Officer: HC:- On expiry of one year from date of provisional attachment of bank account, no fresh order having being passed by Revenue Authority, mere noting in file of concerned Officer could not constitute an order for extension of attachment period.(29.08.2024) Read More »

GST: ITC can’t be denied on mismatch of GSTR-3B & GSTR-2A merely on account of inadvertent and bona fide error in return: HC:- ITC cannot be denied based on mismatch of forms GSTR-3B & GSTR-2A merely on account of inadvertent and bona fide error at the time of filing returns i.e., furnishing details under a …

Judicial Corner: GST ITC can’t be denied on mismatch of GSTR-3B & GSTR-2A merely on account of inadvertent and bona fide error in return. (27.08.2024) Read More »

GST: Advisory for Biometric-Based Aadhaar Authentication and Document Verification for GST Registration Applicants of Dadra and Nagar Haveli and Daman and Diu and Chandigarh. This update includes new procedures for biometric authentication and document verification during the GST registration process. [GST Advisory dated on 24th August 2024 ]

GST: GST Portal Starting from August 2024, a new “RCM Liability/ITC Statement” has been introduced to improve accuracy in reporting Reverse Charge Mechanism (RCM) transactions. This statement will capture RCM liabilities from Table 3.1(d) of GSTR-3B and the related ITC from Tables 4A(2) and 4A(3) of GSTR-3B. Monthly filers must start using it from August …

GST : GST Portal Starting from August 2024, a new “RCM Liability/ITC Statement” has been introduced to improve accuracy in reporting Reverse Charge Mechanism (RCM) transactions. (26.08.2024) Read More »

GST :  From 01st September, 2024; taxpayers must update their valid bank account details in their GST registration to file GSTR-1 or IFF for the August 2024 tax period and beyond. This requirement, as per Rule 10A of the GST Rules, has been communicated through previous advisories. If bank account details are not updated by …

GST : From 01st Sept 2024; taxpayers must update their valid bank account details in their GST registration to file GSTR-1 or IFF for the August 2024 tax period and beyond. (26.08.2024) Read More »

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 »