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
    Case LawsCustoms
    Decoding the Interplay of Customs Duty, Interest, and Confiscation Proceedings
    Case LawsIncome Tax
    Validity of Assessment u/s 153C: Reckoning the Limitation Period
    Case LawsIncome Tax
    Interpreting 'Initiation' of Penalty Action u/s 275(1)(c): Period of Limitation
    Case LawsIncome Tax
    Faceless Assessment: Decoding the Exemptions for International Tax Charges
    Case LawsGST
    Interpreting Rule 86A: Safeguarding Taxpayers' Rights in ITC Blocking
    Case LawsGST
    Writ Jurisdiction Not a Shortcut to Bypass Tax Adjudication Process, Rules Court: Judicial Disciplin...
    Case LawsIncome Tax
    Decoding the Interplay of Sections 153A and 153C in Search Assessments: Limitation and Reassessment ...
    Case LawsCustoms
    Customs Valuation and Classification: Upholding Due Process and Objective Assessment
    Case LawsIncome Tax
    Income Tax Case Transfers: Place of Business vs. Registered Office: Determining the Appropriate Juri...
    Case LawsIncome Tax
    Validity of Writ Petitions and Section 153C Proceedings: Examining the High Court Judgment
    Case LawsIncome Tax
    Interpreting Time Limits for 80G Registration for Charitable Institutions: Avoiding Absurdity in the...
    Case LawsGST
    Unraveling the Web: Forgery, Fake GST Firms, and the Pursuit of Economic Justice
    Case LawsIncome Tax
    Interplay between the provisions of Section 153C and Section 147: Limits on Automatic Reassessment i...
    Case LawsGST
    Decoding the GST Forgery Case: Balancing Personal Liberty and Safeguarding Public Interest for Grant...
    Case LawsIncome Tax
    Equity and Justice in Tax Matters: Condonation of Bona Fide Delays
    Case LawsIncome Tax
    Embracing Equity in Tax Laws: Recognizing Genuine Difficulties in Condonation of Delays in filing of...
    Case LawsCustoms
    Recovery Proceedings Against Legal Heirs of Sole Proprietors: Invalidity of Demand Notices Issued Ag...
    Case LawsCustoms
    Jurisdiction of DRI Officers: Supreme Court Upholds Section 97 of Finance Act 2022 validating Custom...
    Case LawsCustoms
    Dissecting the Legality of IGST on Ocean Freight for FOB Imports: Refund of IGST
    Case LawsIncome Tax
    Real Income Taxation: Avoiding Double Disallowance of Wages and Salaries Payable
❮
❯
❯❯
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
    Case LawsCustoms
    Decoding the Interplay of Customs Duty, Interest, and Confiscation Proceedings
    Show AI Summary
    Customs duty liability on redemption: assessment under Section 28 triggers interest under Section 28AB for delayed payment.
    The court concluded that duty liability arises when an owner redeems confiscated goods under Section 125(2), while the procedural assessment and determination of that duty can be carried out under Section 28, and that the interest provision of Section 28AB applies where Section 28 is invoked for such duties; the Jagdish Cancer ratio does not preclude applying Section 28 in confiscation-redemption assessments.
    Case LawsIncome Tax
    Validity of Assessment u/s 153C: Reckoning the Limitation Period
    Show AI Summary
    Limitation under Section 153C: six-year period runs from receipt of seized documents, requiring assessment under Section 153C.
    Where seized assets, documents and digital data recovered from a third party are found to relate to another person, the date on which the Assessing Officer having jurisdiction receives those seized materials is the deemed date of search for reckoning the six-year limitation period; that deemed date determines the relevant assessment year and which prior six assessment years fall under the special procedure for initiating assessments under Section 153C.
    Case LawsIncome Tax
    Interpreting 'Initiation' of Penalty Action u/s 275(1)(c): Period of Limitation
    Show AI Summary
    Initiation of penalty proceedings: limitation runs from the Assessing Officer's reference, barring belated penalty orders.
    Initiation of penalty proceedings occurs when the Assessing Officer makes a reference to the competent authority; the subsequent show cause notice is a procedural opportunity and does not restart the limitation period, so the statutory limitation for completing penalty proceedings runs from the date of the Assessing Officer's reference and a penalty order passed after that period is time barred.
    Case LawsIncome Tax
    Faceless Assessment: Decoding the Exemptions for International Tax Charges
    Show AI Summary
    Faceless assessment procedure must govern issuance of Section 148 notices in international tax matters, irrespective of residency.
    The court held that the plain language of the faceless scheme, Section 144B(2) and the CBDT order requires that issuance of Section 148 notices in matters involving international tax charges comply with the mandatory faceless assessment procedure, irrespective of the taxpayer's residency status, and that notices issued without adherence to that procedure are inconsistent with the statutory scheme.
    Case LawsGST
    Interpreting Rule 86A: Safeguarding Taxpayers' Rights in ITC Blocking
    Show AI Summary
    ITC blocking under Rule 86A: restricts orders to credit presently available in the electronic credit ledger, limiting retrospective blockage.
    Rule 86A(1) functions as a temporary protective mechanism that may be invoked only where input tax credit is currently available in the taxpayer's electronic credit ledger and the officer has reasons to believe that such present credit has been fraudulently availed or is ineligible; the expression "amount equivalent to such credit" must be read together with the condition of availability in the ECL and does not authorise retrospective blocking of ITC already utilised or refunded.
    Case LawsGST
    Writ Jurisdiction Not a Shortcut to Bypass Tax Adjudication Process, Rules Court: Judicial Disciplin...
    Show AI Summary
    Exhaustion of statutory remedies prevents direct writ challenges to tax demands absent exceptional circumstances or factual disputes.
    The court held that exhaustion of statutory remedies bars writ relief where efficacious alternate remedies exist and where resolution requires factual or classification inquiries; finding no exceptional circumstances to bypass the statutory process, the court dismissed the writ petitions but granted liberty to the petitioners to pursue statutory remedies, including filing responses to show cause notices or appeals against adjudication orders within the period allowed, subject to compliance with prescribed conditions such as pre-deposit obligations.
    Case LawsIncome Tax
    Decoding the Interplay of Sections 153A and 153C in Search Assessments: Limitation and Reassessment ...
    Show AI Summary
    Reassessment limitation: commencement depends on AO's recorded satisfaction, not the search date, for non-searched entities.
    Reassessment of a non-searched entity under Section 153C must be measured from the date the Assessing Officer records satisfaction about the seized material's relevance to that entity, not from the date of the search when the same AO is involved; the proviso to Section 153A(1) prevents the extended limitation period introduced by the 2017 amendment from applying to searches before the statutory cutoff, and physical handover of materials is a machinery provision rather than the substantive commencement trigger.
    Case LawsCustoms
    Customs Valuation and Classification: Upholding Due Process and Objective Assessment
    Show AI Summary
    Transaction value protection: declared import price accepted; principal-use classification of motor controllers affirmed after procedural defects in reassessment were found
    The tribunal upheld the declared transaction value, finding that the authority enhanced assessable value without following statutory procedures and without proving non-comparability; NIDB assessed-value data alone was insufficient. On classification, the motor controllers were held to be parts principally used with electric motors and correctly classed under CTH 8503, with explanatory notes and the principal-use test displacing revenue's attempt to treat them as vehicle accessories.
    Case LawsIncome Tax
    Income Tax Case Transfers: Place of Business vs. Registered Office: Determining the Appropriate Juri...
    Show AI Summary
    Place of business controls assessment jurisdiction; transfer permitted where incriminating materials were seized in that jurisdiction.
    When incriminating materials seized in a particular circle are directly connected to an assessee's business activities and essential to assessment, the assessing authority may transfer proceedings to the circle where those materials were seized. The decision emphasizes that place of business-reflecting where operative evidence and activities occurred-can control assessment jurisdiction, and that transfer facilitates a coordinated investigation while procedural safeguards like show cause notices and opportunities to reply remain relevant.
    Case LawsIncome Tax
    Validity of Writ Petitions and Section 153C Proceedings: Examining the High Court Judgment
    Show AI Summary
    Writ jurisdiction preserved where exceptions to alternative remedies exist; defective Section 153C compliance undermines post-search assessments.
    The court analysed when High Court writ jurisdiction may be exercised despite alternative remedies, reiterating exceptions for violations of natural justice, lack of jurisdiction, or fundamental rights. It examined Section 153C procedural requirements, particularly the necessity of a valid satisfaction note by the Assessing Officer of the searched person, time limits and jurisdictional competence, and the limited evidentiary value of loose sheets and retracted statements absent corroboration.
    Case LawsIncome Tax
    Interpreting Time Limits for 80G Registration for Charitable Institutions: Avoiding Absurdity in the...
    Show AI Summary
    Time limits for 80G registration: purposive interpretation prevents existing charities being barred and preserves merit-based verification.
    The Tribunal construed the amended registration scheme to hold that the six month filing period tied to commencement of activities applies to newly formed institutions that have not begun activities, not to existing charities that obtained provisional approval; it required the assessing authority to treat applications filed within six months before provisional approval expiry as within time and to verify eligibility on merits, providing opportunity to supply documents.
    Case LawsGST
    Unraveling the Web: Forgery, Fake GST Firms, and the Pursuit of Economic Justice
    Show AI Summary
    Admissibility of custodial disclosures: discovery linked statements can be admitted, shaping jurisdiction and bail in GST fraud cases.
    The summary addresses three operative legal points: admissibility of custodial disclosures limited to parts directly leading to discovery of material items; jurisdictional inquiry in multi state economic offences founded on connections between the complainant, place of lodging the FIR and links to accused and firms; and stringent bail evaluation in large scale economic crimes considering gravity, evidence, punishment, risk of tampering, accused's influence and public interest, applied to a scheme of forged GST firms and bogus invoices.
    Case LawsIncome Tax
    Interplay between the provisions of Section 153C and Section 147: Limits on Automatic Reassessment i...
    Show AI Summary
    Non obstante clause in third party search provision applies only after the AO assumes jurisdiction by issuing a notice.
    The Assessing Officer of the other person must record satisfaction that incriminating material relates to that person's total income for specific assessment years before issuing a third party notice; the non obstante clause in the third party provision applies only after the Assessing Officer assumes jurisdiction by issuing such a notice and does not oust regular reassessment provisions where jurisdiction under the third party scheme is not assumed.
    Case LawsGST
    Decoding the GST Forgery Case: Balancing Personal Liberty and Safeguarding Public Interest for Grant...
    Show AI Summary
    Bail in economic offences: stricter scrutiny where circumstantial financial links to proceeds of crime risk investigation and public interest.
    The court examined bail appropriateness where applicants allegedly knowingly received and concealed proceeds from a large-scale GST fraud involving fake registrations and bogus invoices. It treated unexplained transactions as strong circumstantial evidence of complicity and applied a heightened bail regime for serious economic offences, weighing gravity of offence, public fund loss, evidence strength and risk of tampering. Gender or familial ties were held insufficient to justify leniency when individuals are shown to have benefited from proceeds of crime.
    Case LawsIncome Tax
    Equity and Justice in Tax Matters: Condonation of Bona Fide Delays
    Show AI Summary
    Condonation of delay: bona fide short technical glitches in filing income tax returns warrant equitable condonation by authorities.
    The High Court held that a one day, bona fide delay in filing an income tax return due to a technical portal glitch could not be rejected merely because the return had been processed with a demand; such reasoning was misconceived. Applying earlier authorities that endorse an empathetic and non rigid approach, the court emphasised that short delays caused by genuine human or technical problems should be condoned in exercise of administrative discretion, reinforcing the primacy of equity and justice in condonation applications for returns.
    Case LawsIncome Tax
    Embracing Equity in Tax Laws: Recognizing Genuine Difficulties in Condonation of Delays in filing of...
    Show AI Summary
    Condonation of delay: personal illness of a tax professional can justify relief in filing income tax returns.
    The summary establishes that under Section 119(2)(b) of the Income-tax Act, delay in filing returns caused by personal difficulties of a chartered accountant (such as illness of a family member) can be a genuine reason for discretionary condonation; authorities should assess such claims sensitively, require reasoned disbelief if rejecting medical evidence, and interpret discretionary tax powers in light of equity, substantial justice and harmonious construction.
    Case LawsCustoms
    Recovery Proceedings Against Legal Heirs of Sole Proprietors: Invalidity of Demand Notices Issued Ag...
    Show AI Summary
    Invalidity of notices to deceased persons prevents recovery from legal heirs absent specific statutory machinery enabling continuation.
    Issuance of a demand or show cause notice to a deceased sole proprietor is a jurisdictional defect because notice to the correct person is a condition precedent under the Customs Drawback Rules; absent a statutory machinery provision or voluntary submission by legal representatives, recovery of erroneously availed drawback and penalties cannot be pursued against legal heirs.
    Case LawsCustoms
    Jurisdiction of DRI Officers: Supreme Court Upholds Section 97 of Finance Act 2022 validating Custom...
    Show AI Summary
    Jurisdiction of revenue intelligence officers affirmed: legislative validation sustains past customs show cause notices as constitutionally permissible.
    The Court concluded the defect identified in Canon India is unfounded when Notification No. 44/2011 and amended Section 17 are read together, distinguishing assessment functions under Section 17 from recovery under Section 28, and held that Section 97 of the Finance Act, 2022 validly and purposively validates past show cause notices issued by DRI and similarly situated officers, with retrospective application limited to the object of validation and passing Article 14 tests of reasonable classification and proportionality.
    Case LawsCustoms
    Dissecting the Legality of IGST on Ocean Freight for FOB Imports: Refund of IGST
    Show AI Summary
    IGST on ocean freight invalid where IGST already paid on import value, preventing double taxation under valuation rules.
    The court held that where IGST has been paid on the value of imported goods inclusive of cost, freight and insurance under Section 5(1) of the IGST Act read with the Customs Act, the CIF/FOB distinction is immaterial and a notification provision seeking separate IGST on ocean freight for FOB imports cannot be sustained, reinforcing fiscal neutrality and preventing double taxation.
    Case LawsIncome Tax
    Real Income Taxation: Avoiding Double Disallowance of Wages and Salaries Payable
    Show AI Summary
    Timing difference in wage provisions prevents double disallowance; actual payment deductible after reversal.
    Where provisions for wages and salaries are reversed in the return and actual payments are later made and evidenced, those entries represent a timing difference rather than inherently bogus expenditure; treating the same item as disallowable in the earlier year and again disallowing the later payment would result in double disallowance contrary to the taxation of real income.

    TMI Notes

    Back

    All TMI Notes

    Showing Results for :
    Reset Filters
      No Records Found

      TMI Notes

      Home› TMI Notes › Service Tax › Case-Laws › Category › This
      Back

      All TMI Notes

      whatsappJoin Channel
      Showing Results for : Reset Filters
      Service Tax

      Principles of Natural Justice upheld by the Court/s.

      4 June, 2022

      Contents
      Acts
      Rules & Regulations
      Plus +
      Summary
      Note

      Note

      -

      Bookmark

      Print

      Print

      Print Options

      2020 (10) TMI 1135 - BOMBAY HIGH COURT

      Principles of Natural Justice upheld by the Court/s.

      A partnership firm named “Thought Blurb” engaged in the business of advertising and design services.

      An investigation was initiated against the aforesaid firm for payment of service tax for two periods i.e. for the period 1st April, 2016 to 31st March, 2017 and again for the period 1st April, 2017 to 30th June, 2018.

      Letter dated 21st May, 2019 Respondent No.3 (CGST & Central Excise, Mumbai) informed the Petitioner regarding the enquiry being conducted against it. The Petitioner was directed to pay a service tax liability of ₹ 47, 44,937.00 for the period 2016-17. Accordingly Petitioner was requested to pay the aforesaid amount with interest and penalty along with the return to be filed in 2017-18.

      The Petitioner admitted to service tax liability for an amount of ₹ 10, 74,011.00 for a period before 30.06.2019.

      Central Government introduced the Sabka Vishwas (Legacy Dispute Resolution) Scheme, 2019 (briefly ‘the scheme’ hereinafter) to bring an end to pending litigations under the earlier indirect tax regime which now stood subsumed under the Goods and Services Tax (GST).

      The Petitioner, filed an electronic declaration on 12th December, 2019 i.e. Form No. SVLDRS 1 declaring an amount of ₹ 59, 54,669.00 as the tax dues payable. The category under which the application (declaration) was filed was investigation, enquiry or audit.

      An amount of ₹ 30, 60,257.00 was paid as pre-deposit. The Respondent rejected the application as tax dues were not finalized as on 30th June, 2019 by the Designated Committee.

      The reason being given that the application of Petitioner was not maintainable at all before the Designated Committee and accordingly no question of granting a hearing arose and there was no violation of the principles of natural justice.

      The Hon’ble high court agreed to the contentions of the Petitioner.

      The court observed that the Petitioner had complied with all the conditions as in submitted a declaration in electronic form. The Petition was filed as investigation, enquiry or audit. An amount of 30, 60,257.00 were paid as pre-deposit.

      The Respondent rejected these efforts on the ground of ineligibility stating that tax dues were not finalized as on 30th June, 2019.

      Moreover this rejection of the application (declaration) of the Petitioner was without affording any opportunity of hearing to the Petitioner.

      The Petitioner had to file a Writ Petition to emphasize on his contentions. The Respondent rejected the application on the ground that tax dues were not finalized as on 30th June, 2019 by the Designated Committee due to non-submission of papers and records by the Petitioner. The Hon’ble high court disapproved of such a flimsy rejection of an application.

      Sabka Vishwas (Legacy Dispute Resolution) Scheme, 2019 (already referred to as “the scheme” herein-before) was introduced by the Finance (No.2) Act, 2019 and notified in the Gazette of India, Extraordinary on 1st August, 2019.

      The scheme envisages dual objectives of dispute resolution and amnesty. There are huge pending litigations from pre-GST regime. More than ₹ 3.75 lakh crore is blocked in litigations in service tax and excise. There is a need to unload this baggage and allow the business to move on. Legacy Dispute Resolution scheme will also allow a quick closure of these litigations.

      The Hon’ble high court relied on the judgment of Capgemini Technology Services India Limited Versus The Union of India, The Chief Commissioner, Central GST & Customs, Mumbai Zone, The Commissioner, CGST & Central Tax, The Joint Commissioner, CGST & Central Excise, Mumbai East, - 2020 (10) TMI 3 - BOMBAY HIGH COURT. Held that, it is axiomatic that when a person is visited by adverse civil consequences, principles of natural justice like notice and hearing would have to be complied with. Non-compliance to the principles of natural justice would impeach the decision making process rendering the decision invalid in law.

      The Respondents failed to keep in mind the broad picture of the above scheme while dealing with the application of the Petitioners.

      A liberal interpretation has to be given to the scheme as its intent is to unload the baggage relating to legacy disputes under central excise and service tax and to allow the business to make a fresh beginning.

      Accordingly, the Hon’ble high court directed the Respondents that rejection of the application (declaration) of the Petitioner is not justified. Consequently, the same was set aside and quashed. Designated Committee was directed to decide the application (declaration) of the afresh after giving an opportunity of hearing to the Petitioner who shall be informed about the date, time and place of hearing. Such decision shall be taken keeping in mind the observations made by the hon’ble high court in its judgment and shall be in the form of a speaking order with due intimation to the Petitioner.

      Thus we may infer that the principles of “natural justice” always need to be observed to prevent any miscarriage of justice. The constitutional courts have always acted as a watchdog jealously guarding the rights of the citizens against arbitrariness of the authorities.   

       

      Full Text:

      2020 (10) TMI 1135 - BOMBAY HIGH COURT

      Topics

      ActsIncome Tax
      Next ➔