Unlawful outward remittances via Hawala using proforma invoices and electronic records proved; documents admitted, directors penalised, penalties redu...
Attachment of equivalent-value properties as proceeds of crime upheld; preventive attachment order and confirmation sustained; no independent ED reinv...
GST was sought to be levied on liquidated damages received for breach/non-performance under a service agreement. The Court held that such amounts represent compensation for loss/damage payable under ss. 73-74 of the Contract Act and are expressly covered by para 7 (including paras 7.1 and 7.1.6) of Circular No. 178/10/2022, which clarifies that such payments are not consideration for a supply; consequently, the levy proposed in the show cause notice was unsustainable, and the notice was quashed. Amounts collected/paid under protest in relation to such proceedings were directed to be refunded with interest, applying the principle that involuntary collections without authority of law are illegal. - HC
GST was sought to be levied on liquidated damages received for breach/non-performance under a service agreement. The Court held that such amounts represent compensation for loss/damage payable under ss. 73-74 of the Contract Act and are expressly covered by para 7 (including paras 7.1 and 7.1.6) of Circular No. 178/10/2022, which clarifies that such payments are not consideration for a supply; consequently, the levy proposed in the show cause notice was unsustainable, and the notice was quashed. Amounts collected/paid under protest in relation to such proceedings were directed to be refunded with interest, applying the principle that involuntary collections without authority of law are illegal. - HC
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