Just a moment...

⚠✕
❮ Top
☎ Help
☰
×

By creating an account you can:

Logo TaxTMI
Keyword Search :
AI Tools : New
Ask tax questions in natural language. Powered by AI trained on the TaxTMI legal database. Use AI Tools ➞
Call Us / Help / Feedback✕

Contact Us At :

✉ E-mail: [email protected]

✆ Call / WhatsApp at: +91 99117 96707

For more information, Check Contact Us

FAQs :

To know Frequently Asked Questions, Check FAQs

Most Asked Video Tutorials :

For more tutorials, Check Video Tutorials

Submit Feedback/Suggestion :

Email :
Please provide your email address so we can follow up on your feedback.
Category :
Description :
Min 15 characters0/2000
Make Most of Text Search ✕
  1. Checkout this video tutorial: How to search effectively on TaxTMI.
  2. Put words in double quotes for exact word search, eg: "income tax"
  3. Avoid noise words such as : 'and, of, the, a'
  4. Sort by Relevance to get the most relevant document.
  5. Press Enter to add multiple terms/multiple phrases, and then click on Search to Search.
    6. Text Search
  6. The system will try to fetch results that contains ALL your words.
  7. Once you add keywords, you'll see a new 'Search In' filter that makes your results even more precise.
    8. Text Search
╳
Add to...
You have not created any category. Kindly create one to bookmark this item!
✕
Create New Category
Hide
Title :
Description :
❮❮ Hide
❮ Default View
Expand ❯❯
Close ✕
🔎 TMI Notes - Adv. Search ❯
TEXT SEARCH:

Press 'Enter' to add multiple search terms. Rules for Better Search

Search In:
Main Text + AI Text ❯
  • Main Text
  • Main Text + AI Text
  • AI Text
Law:
---- All Laws----❯
  • ---- All Laws----
  • Benami Property
  • Bill
  • Central Excise
  • Companies Law
  • Customs
  • DGFT
  • FEMA
  • GST
  • GST - States
  • IBC
  • Income Tax
  • Indian Laws
  • Money Laundering
  • SEBI
  • SEZ
  • Service Tax
  • VAT / Sales Tax
Types:
---- All Types ---- ❯
  • ---- All Types ----
  • Act Rules
  • Case Laws
  • Circulars
  • Manuals
  • News
  • Notifications
Sort By: ?
In Sort By 'Default', exact matches for text search are shown at the top, followed by the remaining results in their regular order.
RelevanceDefaultDate
    ManualsService Tax
    Whether issuance of SCN under section 73 is mandatory to fix the liability of the assessee? Whether ...
    ManualsService Tax
    Whether it is necessary to provide opportunity of being heard before passing order of finalisation ...
    ManualsService Tax
    Whether appeal can be filed against the provisional assessment?
    ManualsService Tax
    Whether mere non filing of Memorandum in ST-3A means no provisional assessment has been made?
    ManualsService Tax
    Whether best judgement can be done by assessing authority totally arbitrarily i.e. based on his gues...
    ManualsService Tax
    What is the difference between Assessment based on Best Judgement and Assessment based on books of a...
    ManualsService Tax
    What is the meaning of Assessment? What is the meaning of Assessee?
    ManualsService Tax
    What is the relevance of self declaration given at the end of service tax return regarding to self a...
    ManualsService Tax
    Whether records can be preserved in electronic form? if yes, what procedure is need to be followed f...
    ManualsService Tax
    What will be treatment in case of partial reverse charge if service provider is covered under SSI ex...
    ManualsService Tax
    What changes have been made in services by way of supply of manpower for any purpose or security ser...
    ManualsService Tax
    What is the meaning of Partial reverse charge? Which services are covered under partial reverse char...
    ManualsService Tax
    What is the meaning of aggregator? Who is liable in the case of aggregator? What will be if aggregat...
    ManualsService Tax
    How the exemption under this notification will be calculated if the service provider has more than o...
    ManualsService Tax
    Whether Small service provider exemption is available to those persons who are covered under reverse...
    ManualsService Tax
    Whether service provider has the option of not availing the exemption under this notification?
    ManualsService Tax
    Whether service provided under own brand name or trade name is entitled to the exemption under notif...
    ManualsService Tax
    What are the consequences if registration is not granted with in 7 days of the application? Is there...
    ManualsService Tax
    Whether Registration of service tax can be refused ? Whether Service tax authorities can issue regis...
    ManualsService Tax
    Is it mandatory to surrender/ cancel the registration certificate after ceasing to provide taxable s...
❮
❯
❯❯
MaximizeMaximizeMaximize
0 / 200
Expand Note
Add to Folder

No Folders have been created

    +

    Are you sure you want to delete "My most important" ?

    NOTE:

    Open Link
    Notes
    Showing Results for :
    Reset Filters
    Results Found:
    Show All SummariesHide All Summaries
    ManualsService Tax
    Whether issuance of SCN under section 73 is mandatory to fix the liability of the assessee? Whether ...
    Show AI Summary
    SCN requirement: absence of a show-cause notice prevents imposition of service tax and interest under revision.
    Issuance of a show-cause notice under the demand provision is a prerequisite to fix service tax and interest; where only a penalty notice was issued under the penalty regime, the revisional authority cannot validly pass an order demanding service tax with interest because the penalty notice cannot substitute for a demand-stage show-cause notice.
    ManualsService Tax
    Whether it is necessary to provide opportunity of being heard before passing order of finalisation ...
    Show AI Summary
    Right to be heard required before finalising provisional assessment; taxpayer must be told grounds and allowed to respond.
    An assessing authority must inform the taxpayer of the specific grounds for proposed enhanced liability and afford a meaningful opportunity to meet those grounds before finalising a provisional assessment, as a baseline requirement of natural justice in assessment proceedings.
    ManualsService Tax
    Whether appeal can be filed against the provisional assessment?
    Show AI Summary
    Provisional assessment appeals permitted where statute and rules authorize provisional determinations, allowing aggrieved parties to prefer appeals.
    Provisional assessments are authorized by the Act and Rules, and an aggrieved party retains the right to appeal against such provisional assessments; the provisional nature does not by itself preclude preferring appeals under the applicable appellate procedure.
    ManualsService Tax
    Whether mere non filing of Memorandum in ST-3A means no provisional assessment has been made?
    Show AI Summary
    Non-filing of memorandum for provisional assessment is a procedural omission and does not negate provisional assessment.
    Non filing of the memorandum in Form ST 3A does not by itself negate the existence of a provisional assessment; the form serves to supply date wise details to enable the proper officer to make an accurate final assessment, and omission of that statement does not preclude that assessments were provisional, especially where the taxpayer later requests and the proper officer completes a final assessment.
    ManualsService Tax
    Whether best judgement can be done by assessing authority totally arbitrarily i.e. based on his gues...
    Show AI Summary
    Best judgment assessment must be reasoned, not arbitrary; it requires material support and more than mere guesswork.
    A best-judgement assessment allows limited estimation but the assessing officer must make an honest, fair and reasoned estimate and cannot act wholly arbitrarily; technical rules of evidence are relaxed but the assessment must be based on more than mere suspicion or pure guesswork and should be supported by adequate material rather than unsupported conjecture.
    ManualsService Tax
    What is the difference between Assessment based on Best Judgement and Assessment based on books of a...
    Show AI Summary
    Best judgment assessment: courts may not substitute their own estimate if the assessing authority's basis has reasonable nexus.
    Assessment based on accounts is proper where books are genuine and substantially correct, with only minor adjustments; a best judgment assessment is used when accounts are unreliable and the authority estimates liability using available accounts, other information and surrounding circumstances. Courts reviewing a best judgment assessment must first confirm that rejection of accounts was justified and then assess whether the estimating basis has a reasonable nexus to the estimated turnover; if so, the authority's bona fide estimate should not be displaced.
    ManualsService Tax
    What is the meaning of Assessment? What is the meaning of Assessee?
    Show AI Summary
    Assessment in service tax: scope includes self assessment, reassessment, provisional and best judgement modes and interest determination.
    Assessment for service tax includes self-assessment, reassessment, provisional assessment, best judgement assessment and any order where tax assessed is nil; it also includes determination of interest on assessed or reassessed tax. "Assessee" means a person liable to pay the tax and includes the person's agent.
    ManualsService Tax
    What is the relevance of self declaration given at the end of service tax return regarding to self a...
    Show AI Summary
    Untrue self-declaration in tax return corroborates suppression and can trigger penalty under self-assessment procedures.
    An untrue declaration in a service tax return asserting that tax has been paid corroborates suppression and attracts penalty; absence of a bona fide statement on the return or with the return renders the declaration faulty and imputes liability under the self-assessment procedure.
    ManualsService Tax
    Whether records can be preserved in electronic form? if yes, what procedure is need to be followed f...
    Show AI Summary
    Electronic preservation of records permitted subject to every page being authenticated by digital signature and prescribed safeguards.
    Preservation of records in electronic form is permitted provided each page of the record is authenticated by a digital signature, and the Board may prescribe further conditions, safeguards and procedures for maintaining digitally signed records.
    ManualsService Tax
    What will be treatment in case of partial reverse charge if service provider is covered under SSI ex...
    Show AI Summary
    Partial reverse charge: provider exempt under SSI does not pay; service receiver still liable for receiver's portion of tax.
    Where a service falls under partial reverse charge and the provider is covered by the SSI exemption and not liable to pay service tax, the provider's obligation to pay its share is eliminated while the service receiver remains independently liable to pay the receiver's portion under the reverse charge mechanism.
    ManualsService Tax
    What changes have been made in services by way of supply of manpower for any purpose or security ser...
    Show AI Summary
    Reverse charge liability now places full service tax responsibility on the service recipient for manpower and security services.
    W.e.f. notification no. 07/2015-ST the services by way of supply of manpower for any purpose and security services have been placed under a full reverse charge mechanism, making the service recipient exclusively liable to discharge the entire service tax; the earlier partial reverse charge split between recipient and service provider has been removed.
    ManualsService Tax
    What is the meaning of Partial reverse charge? Which services are covered under partial reverse char...
    Show AI Summary
    Partial reverse charge: service tax liability split between provider and recipient; third-party payers allowed under notification
    A scheme of partial reverse charge allocates service tax between provider and recipient by notifying services and the share payable by the recipient, the provider paying the remainder. As at 01/04/2015 the notification covers renting of passenger motor vehicles to persons not in the same business and the service portion of works contracts. The framework also allows liability to be placed on persons other than provider or recipient, for example a representative of an aggregator, where so notified.
    ManualsService Tax
    What is the meaning of aggregator? Who is liable in the case of aggregator? What will be if aggregat...
    Show AI Summary
    Aggregator liability: platform owners bear service tax responsibility, with representatives appointed if no taxable territory presence.
    An "aggregator" is the owner manager of a web based application enabling customers to connect with service providers under the aggregator's brand; the aggregator is the person liable for paying service tax for services involving the aggregator. If the aggregator lacks physical presence in the taxable territory, a person representing the aggregator in that territory is liable; if there is neither presence nor representative, the aggregator must appoint a person in the territory who will be liable to pay service tax.
    ManualsService Tax
    How the exemption under this notification will be calculated if the service provider has more than o...
    Show AI Summary
    Aggregate value rule: combined turnover across services and premises determines small service provider exemption; co-owners assessed individually.
    Exemption is applied to the aggregate value of all taxable services provided from all premises by a provider, and eligibility is determined by aggregating previous year turnover across all premises; where premises are co-owned, each co-owner may claim the exemption separately if, on individual assessment, their aggregate taxable services fall within the threshold.
    ManualsService Tax
    Whether Small service provider exemption is available to those persons who are covered under reverse...
    Show AI Summary
    Reverse charge excludes recipients from small service provider exemption when they are liable to pay service tax.
    The Small service provider exemption does not extend to persons liable to pay service tax as service recipients under the Reverse Charge Mechanism; values of taxable services for which tax is payable by such person under sub-section (2) of section 68 read with the Service Tax Rules are excluded from the notification's exemption.
    ManualsService Tax
    Whether service provider has the option of not availing the exemption under this notification?
    Show AI Summary
    Option to decline small-provider exemption allows service providers to pay service tax and claim CENVAT credit from that date.
    Service providers may elect during a financial year to forego the small-provider value-based exemption and pay service tax, but the election is irrevocable for that financial year. Upon electing to pay service tax, the provider may avail CENVAT credit only for inputs or input services received on or after the date service tax payments commence and used for taxable services for which service tax is payable.
    ManualsService Tax
    Whether service provided under own brand name or trade name is entitled to the exemption under notif...
    Show AI Summary
    Brand name usage and service tax exemption: services under own brand remain eligible; exclusion covers use of another's brand.
    Exemption for small service providers applies when services are provided under the provider's own brand name or trade name; the notification excludes only taxable services provided under a brand or trade name of another person, whether registered or not.
    ManualsService Tax
    What are the consequences if registration is not granted with in 7 days of the application? Is there...
    Show AI Summary
    Deemed registration applies when the local superintendent delays issuance, but not to centralized registration by the Commissioner.
    Failure of the Superintendent of Central Excise to issue Form ST-2 within seven days triggers deemed registration; that deeming provision applies only to registrations by the Superintendent and not to centralized registrations granted by the Commissioner, where no statutory time limit exists. Registration must nevertheless be granted within a reasonable time, and administrative circulars treating seven days as reasonable impose directory guidance and accountability but do not create deemed registration for the Commissioner.
    ManualsService Tax
    Whether Registration of service tax can be refused ? Whether Service tax authorities can issue regis...
    Show AI Summary
    Registration refusal prohibited: complete service tax applications must be accepted and authorities cannot register suo moto.
    A complete and properly filled application in Form ST-1 and/or ST-2 must be accepted; there is no statutory power under the Finance Act, 1994 or the Service Tax Rules, 1994 for the Superintendent or the Commissioner to refuse registration, nor to grant registration suo moto. Registration is confined to the category specified in the application, and non-alignment with the correct category may attract recovery or penal proceedings.
    ManualsService Tax
    Is it mandatory to surrender/ cancel the registration certificate after ceasing to provide taxable s...
    Show AI Summary
    Surrender of service tax registration required on cessation of taxable services; cancellation follows after dues are cleared and documents submitted.
    Surrender of the registration certificate is mandatory upon cessation of taxable services and must be submitted to the Superintendent, who ensures all dues are paid before cancelling registration. No prescribed format exists; a simple application is acceptable. A trade notice lists common reasons for surrender and requires an application and undertaking, copies of recent ST-3 returns (up to six), profit & loss accounts and balance sheets (up to three years) or income tax returns or bank statements if unavailable, and disclosure of pending show-cause notices, confirmed demands, court cases and audits; waiver of penalty may be applied where returns were not filed but turnover is below the exemption limit.

    TMI Notes

    Back

    All TMI Notes

    Showing Results for :
    Reset Filters
      No Records Found

      TMI Notes

      Home› TMI Notes › Money Laundering › Case-Laws › Category › This
      Back

      All TMI Notes

      whatsappJoin Channel
      Showing Results for : Reset Filters
      Money Laundering

      PMLA and CrPC: Supreme Court's Interpretation on Summons, Appearance, and Arrest

      7 August, 2024

      Contents
      Acts
      Plus +
      Summary
      Note

      Note

      -

      Bookmark

      Print

      Print

      Print Options

      Deciphering Legal Judgments: A Comprehensive Analysis of Case Law

      Reported as:

      2024 (5) TMI 837 - Supreme Court

      Introduction

      This article covers a significant judgment delivered by the Supreme Court of India regarding the provisions of the Prevention of Money Laundering Act (PMLA) and the application of certain sections of the Code of Criminal Procedure (CrPC) in cases under the PMLA. The judgment clarifies various aspects related to the issuance of summons, appearance of the accused, granting of bail, and the powers of the Enforcement Directorate (ED) and Special Courts in PMLA cases.

      Arguments Presented

      The primary issue before the Supreme Court was whether an accused who appears before a Special Court pursuant to a summons issued u/s 44(1)(b) of the PMLA should be treated as if they are in custody, and consequently, whether they need to apply for bail or not. The Additional Solicitor General (ASG) argued that once an accused appears before the Special Court after being served a summons, they shall be deemed to be in custody.

      Discussions and Findings of the Supreme Court

      The Supreme Court extensively discussed various provisions of the PMLA and the CrPC, including Sections 43, 44, 65, 71, 88, 89, 205, and 437 of the CrPC. The Court made the following key findings:

      1. Section 437 of the CrPC (relating to bail) will not apply when an accused appears before a Special Court after a summons is issued on a complaint u/s 44(1)(b) of the PMLA.
      2. Section 205 of the CrPC, which allows a Magistrate to dispense with the personal attendance of the accused and permit them to appear through a pleader, applies to complaints under the PMLA.
      3. Section 88 of the CrPC, which empowers the Court to require an accused to execute a bond for their appearance, applies to complaints under the PMLA.
      4. An order accepting bonds u/s 88 from the accused does not amount to a grant of bail.
      5. If an accused fails to appear after being served a summons or fails to appear on a subsequent date, the Special Court can issue a warrant u/s 70 of the CrPC to secure their presence.
      6. The Special Court can entertain an application for cancellation of a warrant and can cancel it upon the accused furnishing an undertaking to appear regularly before the Court.
      7. After cognizance is taken of the offense u/s 4 of the PMLA based on a complaint u/s 44(1)(b), the ED and its officers cannot exercise the power of arrest u/s 19 against an accused named in the complaint.

      Analysis of the Supreme Court

      The Supreme Court's judgment provides clarity on various procedural aspects related to PMLA cases. It upholds the rights of an accused who appears pursuant to a summons and prevents them from being treated as if they are in custody. The Court has struck a balance between the investigative powers of the ED and the rights of the accused, ensuring that the accused is not unnecessarily deprived of their liberty.

      The Court has also clarified the application of various provisions of the CrPC in PMLA cases, ensuring that the accused is not denied the benefits of these provisions merely because the case falls under a special act like the PMLA.

      Concluding Remarks

      The Supreme Court's judgment is a significant development in the interpretation and application of the PMLA and the CrPC. It provides much-needed clarity on the procedural aspects of PMLA cases and safeguards the rights of the accused while also recognizing the investigative powers of the ED. This judgment will serve as a guiding precedent for Special Courts and other authorities dealing with PMLA cases.

      Summary of the Judgment

      The Supreme Court of India, in its judgment, has clarified various aspects related to the Prevention of Money Laundering Act (PMLA) and the application of certain sections of the Code of Criminal Procedure (CrPC) in PMLA cases. The Court held that an accused who appears before a Special Court pursuant to a summons issued u/s 44(1)(b) of the PMLA should not be treated as if they are in custody, and therefore, they need not apply for bail. The Court also clarified that the Enforcement Directorate (ED) cannot exercise the power of arrest u/s 19 against an accused named in the complaint after cognizance is taken by the Special Court. The judgment provides guidance on the issuance of summons, appearance of the accused, granting of bail, and the powers of the ED and Special Courts in PMLA cases.

      Full Text:

      2024 (5) TMI 837 - Supreme Court

      Topics

      ActsIncome Tax
      Next ➔