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Corporate News *  Service tax penalty can’t survive when assessee acted on dept.’s own view of non-taxability: Delhi High Court. *  GST section 74 extended limitation questionable when form 26AS mismatch was already known: Karnataka High Court grants interim relief. *  CGST demand prima facie impermissible after state GST settlement under section 128A: Bombay High Court. *  Supreme Court asks GSTAT to sympathetically consider delay as taxpayers pursued remedy before wrong forum. *  Supreme Court stays Tripura High Court ruling protecting genuine buyers from ITC denial over supplier’s GST default. *  Diary entries alone can’t prove clandestine removal of goods: CESTAT quashes excise penalty on steel trader. *  Customs could investigate preferential tariff claims even before sec. 28DA: Delhi High Court. *  Customs dept. relied on fake AI generated case laws: supreme court quashes Rs. 425.28 crore penalty. *  No GST exemption in affiliation and annual registration charges for admission or conduct Of examinations: GSTAT. *  Mere invoices, cheque payments insufficient to establish genuine movement of goods: GSTAT restores Rs. 43.44 lakh ITC demand. *  Consolidated GST show cause notice covering multiple financial years is not without jurisdiction: Delhi High Court. *  Construction of independent houses on separate plots not taxable as ‘Residential Complex’ without common facilities: CESTAT. *  GST penalty exceeding statutory maximum unsustainable; Allahabad High Court quashes ? 50,000/- penalty after taxpayer filed return and paid late fee. *  GST order against standard chartered bank passed without hearing set aside by Bombay High Court. *  Retracted statements can’t be relied upon without cross-examination: CESTAT quashes gold confiscation. *  Burden to prove misclassification lies on customs department: CESTAT. *  CESTAT quashes Rs. 98 lakh excise demand on clearance of used refractory brick scrap. *  Service tax demand on irrigation works quashed: Karnataka High Court rules sale of goods component not taxable as service. *  GSTAT restores tax and penalty for transporting iron scrap without E-way bill citing intent to evade tax. *  Madras High Court stays GST recovery from directors without opportunity to show cause under section 89. *  Madras high court stays GST recovery notice against directors; finds prima facie case on applicability of section 79(1)(c). *  Procedural lapses can’t justify harsh punishment without serious customs breach: CESTAT quashes customs broker licence revocation. *  Service tax payable on land leasing and sports complex charges: CESTAT. *  Settled customs dispute can’t be reopened through Article 226 challenge to interest liability: Delhi High Court. *  Mere facilitation of customs clearance can’t establish knowledge of smuggling: Madras High Court. *  GST registration cancellation stayed: Allahabad High Court questions 99% ITC utilisation cap under rule 86B. *  Composition scheme lapses automatically on crossing Rs. 1.5 crore turnover: GSTAT. *  Gujarat High Court quashes GST cancellation orders after officer relied on non-existent AI-generated case laws. *  Importers liable for customs duty benefits availed through manipulated scrips: Delhi High Court. *  Procedural E-way bill lapse alone can’t justify penalty where genuine transaction and absence of tax evasion are established: GSTAT.
Subject News *  Documentary evidence dominates probe, further custody unwarranted: mumbai court grants bail in Rs. 22.44 crore customs duty evasion case. *  Business premises can’t remain sealed for non-participation in GST search: Allahabad High Court. *  GST pre-deposit must be refunded proportionately when taxpayer partly succeeds in appeal: Bombay High Court. *  Supreme Court grants 30 days to file GST appeal; keeps pre-deposit issue open due to deposit in parallel CGST proceedings. *  GST demand can’t exceed amount proposed in SCN: Allahabad High Court quashes Rs. 20.47 Crore order. *  Hundreds-of-crores GST demand and heavy 10% pre-deposit no ground to bypass statutory appeal: Punjab & Haryana High Court. *  Delhi High Court refuses to entertain challenge to gold confiscation due to statutory appeal remedy and unexplained delay. *  Procedural error in customs broker licence inquiry can be rectified through remand: Delhi High Court. *  GSTR-2A mismatch alone can’t justify ITC denial without invoice-wise verification; personal hearing mandatory: GSTAT. *  GST order passed without uploading personal hearing notices violates sec. 75(4): Allahabad High Court. *  TAX EVASION - Sec. 74 GST SCN quashed for not spelling out fraud, wilful misstatement or suppression: Allahabad High Court. *  STPI’s SOFTEX certification and NoC charges taxable as business support services: CESTAT. *  Suspicion can’t replace proof: CESTAT quashes penalty in alleged gold-smuggling operation. *   Limitation runs from communication of order: Madras High Court upholds rejection of delayed GST Appeals. *  Rajasthan High Court quashes GST demand over unsigned show cause notice. *  ITC recovery upheld where supplier failed to deposit GST: Rajasthan High Court. *  Customs commissioner’s empowered to make port trust liable for duty on pilfered goods: Supreme Court. *  Rectification proceedings can’t be used to challenge an uncontested GST assessment through a writ petition: Andhra Pradesh HC. *  GST proceedings against deceased proprietor unsustainable without notice to legal heir: GSTAT. *  Mere availment of ineligible self-assessed ITC doesn’t amount to suppression without evidence of fraud or wilful misstatement: GSTAT. *  Disposal of mining overburden by entity authorised by mining lease holder constitutes taxable service: CESTAT. *  Toll plaza data not mandatory for ITC refund: GSTAT. *  Disputed GST fraud allegations require investigation: Punjab and Haryana High Court makes interim bail absolute in alleged fraud and GST fraud case. *  Non-manufacturer contractor liable to deposit excess excise duty collected from buyer: CESTAT. *  GST order can’t reject taxpayer’s reply as “not satisfactory” without reasons: Madhya Pradesh High Court. *  Uncorroborated statements can’t establish alleged diversion of duty-free goods: CESTAT. *  Erection services were not liable to service tax prior to 10th september 2004: CESTAT. *  Sec. 74 GST notice must spell out statutory ingredients for invoking extended tax demand proceedings: Allahabad High Court. *  No jurisdictional bar under section 6(2)(b) in parallel CGST SGST proceedings: Delhi High Court refuses to bypass GST appeal remedy. *  Madras High Court remits GST demand for fresh adjudication after taxpayer claims it was unaware of SCN following business closure.  

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GST Update 13.09.2016

GST LAW HEADING TOWARDS REALITY

 
GST DAILY DOSE OF UPDATION:-
 
 
GST LAW HEADING TOWARDS REALITY:-Introduction of GST in India was in news since long time but there was doubt in the minds regarding its legislation and implementation in India. However, after the passage of the Constitution (One Hundred and Twenty Second Amendment) Bill, 2016 for introduction of GST by the Rajya Sabha, the hopes of citizens of India have risen and the probability of GST being a reality has increased. The Constitutional Amendment Bill received the assent of the President on 08.09.2016 wherein new Article 279A has been introduced. The new Article 279A has been implemented with effect from 12.09.2016 according to which, GST Council has to be constituted by the President within a period of 60 days of implementation of Article 279A.
 
 
The formation and composition of GST Council holds immense significance in the smooth implementation of GST Law because crucial decisions are to be taken by GST Council. The GST Council will comprise of the Union Finance Minister as Chairperson while State Finance Ministers and Nominated Ministers as members. The pace with which advancements are being made for implementation of the GST Law indicate that the GST reform will be soon turning from a dream to reality for India. The speedily ratification of the Constitutional Amendment Bill by 16 States within a short span of 23 days is really commendable job. Not only this, the government appears to have geared up as it is running ahead of its targets. The swift creation of GST Council is the best example. The Union Cabinet has approved the setting up of GST Council and its Secretariat. The Union Revenue Secretary has already written to Chief Secretaries of States seeking nominations to the Council. The Union Cabinet has also created posts of Additional Secretary to the Council and four posts of Commissioner at the level of Joint Secretary to the Centre in the Secretariat. The appointments approved by the Cabinet includes Union Revenue Secretary as the ex-officio secretary of the Council and inclusion of CBEC Chairperson as a permanent and non-voting invitee to all of its proceedings. The GST Council will decide on issues such as threshold limits, exemptions in GST and most importantly, rate of GST. It is being reported that the first meeting of GST Council will be held on 22 and 23 September, 2016. Not only this, Union Finance Minister, Mr. Arun Jaitley has also expressed hopes that the core issues of exemptions, GST rates would be decided by the GST Council by 22nd November, 2016 so that Model Laws can be considered for their passage in Winter Session of the Parliament.
 
 
It is pertinent to mention here that for successful implementation of GST reform, development of sound infrastructure is also required and the process for the same has also already begun. The IT infrastructure of GST will be governed by the GSTN called as Goods and Services Tax Network. It is being reported that the Government of India will hold 24.5% stake in GSTN while State Governments together hold 24.5% stake totaling to 49% stake of government. However, balance 51% stake will be held by non-governmental financial institutions such as HDFC, ICICI etc. Mr. Subramanian Swamy, MP of BJP has expressed his opposition for majority stake of private entities in GSTN as the portal of GSTN would be handling tax related sensitive information and the majority stake of private players will definitely pose threat to the integrity of the data contained in the network. Presently, the task of developing GSTN is entrusted to Infosys.
 
 
 
Nonetheless, despite various oppositions, the Modi led government has managed to infuse a sense of confidence among people that GST will be reality soon, may be, in the next financial year. Lets hope for the best and keep our fingers crossed.   
 
 
You may also visit our FB page at the following link
 
https://www.facebook.com/GSTTODAYBYPRADEEPJAIN/
 
 

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