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Home e-Newsletters Index Year 2023 July Day 17 - Monday

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TMI Tax Updates - e-Newsletter
July 17, 2023

Case Laws in this Newsletter:

GST Income Tax Benami Property Customs Securities / SEBI Insolvency & Bankruptcy PMLA Service Tax Central Excise



Highlights / Catch Notes

    GST

  • Validity of assessment order passed u/s 74(9) - Appealable order - genuineness of the transactions of its sister concern - Petitioner contended that, without verifying the books of account of the petitioner's sister concern, that order is passed - Petition dismissed on the ground that, alternative statutory remedy is available to the petitioner - HC

  • Validity of Seizure of cash by invoking the power available u/s 67 of the CGST Act - tax evasion - Cash seized from the house and not forming part of stock-in-trade - The seizure was one year back, and there is no reason to retain it any further. - GST authorities directed to release the cash seized forthwith, at any rate, within a week - HC

  • Income Tax

  • Disciplinary proceedings against the Revenue officer Group-A officer - CBDT gave approval for initiating penalty proceedings against the petitioner - However, “approval for issuing Charge Memo/sanction prosecution” lies with the Finance Minister - High Court quashed the Issuance of Charge Memo - Apex Court refused to entertain the SLP - SC

  • Royalty receipts or FTS - commission fee for payment “production and editorial charges”- the subscription amount cannot be treated as royalty, having regard to the fact that there is nothing on record to suggest that the respondent/assessee has granted the right in respect of copyright to the concerned subscribers of the e-journals. All that the respondent/assessee did was to sell the copyrighted publication to the concerned entities, without conferring any copyright in the said material. - ITAT rightly deleted the addition made - HC

  • Priority of charges - Recovery of tax dues over secured creditors - in light of the position that the creation of charge by the financial institutions was long prior to the orders of attachment having been passed by the Income-Tax Department / Commercial Taxes Department. These writ petitions are thus liable to be allowed - The proceedings for attachment of the properties in the respective writ petitions stand quashed. - HC

  • Appellate jurisdiction of ITAT - ITAT Kolkata or ITAT Indore - approaching the wrong appellate jurisdiction - President, ITAT, has no power to transfer appeal/s between one headquarters to other. The power of transfer available with the President is only qua a particular headquarters where large number of Benches are involved. For example in Kolkata there are three functioning Benches, then an appeal from Bench 1 to Bench 3 can be transferred by the President but it cannot be transferred from Kolkata to any other place in the country. - AT

  • Deduction claimed u/s 54F OR 54 - Investment of LTCG - Owning more than one house property - CIT(A) deleted the addition considering the same u/s 54 - Assessee revised the claim of exemption from u/s 54F to u/s 54 in appeal - Assessee specifically claimed deduction u/s 54 only in the return filed in response to notice u/s 148. Therefore by no stretch of imagination, the claim of the assessee could be treated as fresh claim. - AT

  • Addition u/s 68 or 56 - Undisclosed income of unsecured loan - share application money receipt - the share application money was received in the financial year 2011-12 - provisions of Section 56(2)(vii)(b) cannot be made applicable as it was brought in the statute books only w.e.f. 01-04-2013 - Further since, the AO did not invoke Section 68 to bring the share premium to tax, additions can not be made u/s 68 also during the subsequent year - AT

  • Revision u/s 263 - wrongful Capital gain computation - As further seen from the Revision Order the assessee has not made the claim of Stamp Duty expenses which is also been directed by the Ld. PCIT to be allowed, after due verification by the AO, during the fresh assessment proceedings. Thus, it could be seen that the Revision Order passed by the Ld. PCIT is a well judicious order and also giving proper opportunity to the assessee de novo proceedings. - AT

  • Penalty u/s. 271(1)(c) - enhancement of assessment by CIT(A) - Merely because the assessee did not collect PAN details of the Payees, and the bills and vouchers of most of the payments, the disallowance was made. - Thus assessee cannot be penalized either for 'concealment of particulars of income' or 'furnishing of inaccurate particulars of income' - AT

  • Customs

  • Validity of demand of duty as per precondition of re-export for violation of Advance Authorization Scheme - Petitioner was before NCLT in CIRP and moratorium was declared, and later to be liquidated - the show cause notice has been issued after moratorium has been imposed by the NCLT and the order determining liability has been issued long past the date of liquidation. This, when the customs department was well aware of the assessee/R2 being before the NCLT. Thus, and all the more, would the petitioner in the present case be eligible for re-export upon payment of charges alone. - HC

  • Classification of imported goods - Line Extender - parts of Digital Subscriber Line system - It is an admitted fact that ‘Line Extender’ cannot function in isolation but except as a part of digital line system. Hence, the classification under Chapter Heading 8543 is ruled out. Accordingly, the ‘Line Extender’ is rightly classifiable under Chapter Heading 8517 as claimed by the appellant. - AT

  • Conversion of shipping bill - Request by the supporting manufacturer - DFRC shipping bills into DEEC Scheme - It is trite law that the exemption notifications relating to exports are required to be construed liberally. - The request of the appellant to allow amendment sought by them after examination of availability of relevant license etc. at the time of export is agreed upon - matter remanded back to original authority to implement the same by allowing amendment as per law - AT

  • Lvey of maximum penlaty on Customs Broker - Learned Adjudicating Authority finds that the appellant has violated the provisions of CBLR, 2018 and yet, he finds that the violations do not warrant revocation of license. It is very difficult to understand as to how the allegations would invite a maximum penalty under Rule 18 ibid. One has to conclude that if the violations are not grave enough to warrant revocation of license, they do not warrant maximum penalty under Rule 18 also. - AT

  • Refund claim of late fee mistakenly paid - late fee waived off by public notice no.21/2020 - It is found that the Revenue is taking a contradictory stand in as much as on the one hand, it claims that the refund of late fees is not governed by the provisions of Section 27 of the Customs Act 1962 and on the other, they find that the order of assessment being not challenged, they cannot be challenged by taking the route of refund. - AT

  • Confiscation of imported used tyres - imposition of redemption fine and penalty - Considering the fact that the goods are not prohibited to import, the redemption fine of Rs.5 lakhs is considered reasonable for the omission on the part of appellant to produce valid import license for clearing the goods - AT

  • Confiscation - Redemption fine - Betel nuts of foreign origin - In their Grounds of Appeal, they have not raised the issue about non-supply of these documents. Therefore, the Appellant raising this issue at the time of final arguments now shows that it is only a ploy on their part to drag the case further knowing fully well that the Department may not be in a position to place all the details before the Appellant for the action taken in April 2015. - the lower Authorities have followed the principles of natural justice and passed detailed and considered orders justifying the Redemption fine imposed - AT

  • Valuation of imported goods - inclusion of licence fee in the invoice value - It can be seen that Rule 10 (1) (c) uses the words ‘as a condition of sale’. The Explanation only states that if the licence fee paid as a condition of sale, such licence fee is includable in transaction value even if the goods have undergone some process. There is no evidence to establish that the licence fee paid is a condition of sale of the goods. - No demand - AT

  • Classification of imported goods - Ext. Hard disc drives/Hard Disc Drives - The terms hard disk drive used in the notification has not been amplified either by adding “external” or “internal”. On this simple premise alone, exemption to the said item cannot be denied. - AT

  • IBC

  • Seeking direction to RP to serve a copy of the Resolution Plan - whether copy of the Resolution Plan, which has been approved by the CoC but awaits the approval of the Adjudicating authority, can be given to the Appellant who is neither a Claimant, nor a Creditor or a participant? - NCLT rightly rejected the application - AT

  • SEBI

  • Offences under SEBI - collective investment schemes without applying for registration - petitioner (directors) was summoned for the offences under Sections 24(1) and 27 of the SEBI Act - Whether the present petitioner shall be liable as the director of the accused company with regard to the violations committed by the said entity in question is a matter of trial and shall be adjudicated before the Trial Court of competent jurisdiction. - Petition dismissed - HC

  • Service Tax

  • Refund of Service Tax paid - time limitation - It is not the case of the appellant that the service tax was paid under protest, in which case the one year time limit does not apply. The relevant date for the purpose of this case, in which the appellant have voluntarily paid the short payment of service tax, is the date of payment of duty/ tax - Refund was rightly rejected - AT

  • Works Contract Services - Service Tax registration not taken - service tax not paid - while confirming the demand of service tax for the extended period of limitation, an option extended to pay penalty at reduced rate @25%, if the amount of tax and penalty is paid withing 30 days. - AT

  • Central Excise

  • Violation of judicial discipline - reopening and review of previous Tribunal Order for subsequent period - while the accepting the order of tribunal for the earlier periods, SCN issued for the subsequent period involving the same issue - recovery of erroneous refund - the Department has followed ‘pick and choose’ method making a joke of the judicial process and putting the appellant to unwarranted hardship by refraining from appealing past and future cases and selecting only case for review. - AT

  • Valuation - Receipt of consideration for clearance of waste / rubbish - inclusion of additional consideration received by the appellants in the form of credit - It has neither any marketability nor saleability and therefore it’s not liable to any duty. Waste or rubbish, which is thrown up in the course of manufacture, cannot be said to be a produce of manufacture and cannot be said to be exigible to excise duty - Demand set aside - AT


Articles


Notifications


Circulars / Instructions / Orders


News


Case Laws:

  • GST

  • 2023 (7) TMI 627
  • 2023 (7) TMI 626
  • 2023 (7) TMI 625
  • 2023 (7) TMI 624
  • 2023 (7) TMI 623
  • Income Tax

  • 2023 (7) TMI 622
  • 2023 (7) TMI 621
  • 2023 (7) TMI 620
  • 2023 (7) TMI 619
  • 2023 (7) TMI 618
  • 2023 (7) TMI 617
  • 2023 (7) TMI 616
  • 2023 (7) TMI 615
  • 2023 (7) TMI 614
  • 2023 (7) TMI 613
  • 2023 (7) TMI 612
  • 2023 (7) TMI 611
  • 2023 (7) TMI 610
  • 2023 (7) TMI 609
  • 2023 (7) TMI 608
  • 2023 (7) TMI 607
  • 2023 (7) TMI 606
  • 2023 (7) TMI 605
  • 2023 (7) TMI 604
  • 2023 (7) TMI 603
  • 2023 (7) TMI 602
  • 2023 (7) TMI 601
  • Benami Property

  • 2023 (7) TMI 600
  • Customs

  • 2023 (7) TMI 599
  • 2023 (7) TMI 598
  • 2023 (7) TMI 597
  • 2023 (7) TMI 596
  • 2023 (7) TMI 595
  • 2023 (7) TMI 594
  • 2023 (7) TMI 593
  • 2023 (7) TMI 592
  • 2023 (7) TMI 591
  • 2023 (7) TMI 590
  • 2023 (7) TMI 589
  • 2023 (7) TMI 588
  • Securities / SEBI

  • 2023 (7) TMI 586
  • Insolvency & Bankruptcy

  • 2023 (7) TMI 587
  • PMLA

  • 2023 (7) TMI 585
  • Service Tax

  • 2023 (7) TMI 584
  • 2023 (7) TMI 583
  • 2023 (7) TMI 582
  • 2023 (7) TMI 581
  • Central Excise

  • 2023 (7) TMI 580
  • 2023 (7) TMI 579
  • 2023 (7) TMI 578
 

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