GST Registration Cannot Be Refused Merely Because Assessee Belongs To Another State: Andhra Pradesh High Court

The Andhra Pradesh High Court stated that GST registration can't be refused merely because the assessee belongs to another State. “Though the apprehension of the respondents may not be misplaced, it would not mean that registration can be refused on a ground, which is not available under the Statute or the Rules. There do not appear to be any restriction for persons outside the State to come into the State of Andhra Pradesh and seek registration under the APGST Act,” stated the...

Andhra Pradesh VAT Act | Pleadings On Suppression Of Material Facts, Wilful Evasion Of Tax Are Sine Qua Non For Invoking S.21(5): High Court

The Andhra Pradesh High Court has held that pleadings relating to suppression of material facts, in an assessment order are the sine qua non for invoking section 21(5); by way of which limitation for filing an assessment order is extended to 6 years from 4 years. "There is nowhere any mention of suppression of facts, much less, wilful suppression of facts, resulting in wilful evasion of tax, which is the sine qua non, for invoking Section 21(5) of the Act. In such circumstances, the...

Short Tax | Timeline For Issuing Show Cause Notice U/S 73(2) Is Mandatory, Not Discretionary: Andhra Pradesh High Court

The Andhra Pradesh High Court has held that the time permit set out under 73(2) of the AP GST Act for issuance of show cause notice in relation to alleged short payment of tax, etc. is mandatory in nature.A division bench of Justices R Raghunandan Rao and Harinath N. added that any violation of that time period cannot be condoned and would render the show cause notice otiose.It observed, “The GST Act, has put in place certain protections for tax payers. One of the primary protections is that...

[A&C Act] Non-Payment Of Part Of Mutually Agreed Amount After Settlement Of Dispute Not An Arbitrable Issue Under Arbitration Agreement: Andhra Pradesh HC

The Andhra Pradesh High Court has upheld the dismissal of an application filed under section 8 of the Arbitration and Conciliation Act, holding that once an amount has been mutually decided by the parties, the dispute itself is resolved and no arbitrable issue remains for consideration. A Division Bench of Justice Ravi Nath Tilhari and Justice V. Srinivas pointed out that non-payment of part amount of the mutually agreed amount cannot be said to give rise to an arbitrable dispute. When an...

Supply Of Solar Generating Power Station Is A Composite Supply, Would Not Amount To Works Contract; Attracts 5% GST: Andhra Pradesh High Court

The Andhra Pradesh High Court stated that the supply of solar generating power station is a composite supply and it would not amount to a works contract. Also, it is a moveable property and attracted 5% GST. The Division Bench of Justices R Raghunandan Rao and Maheswara Rao Kuncheam observed that “a 'works contract' is also a composite supply. However, there could be a 'composite supply', which does not fall within the ambit of 'works contract'….. The distinction between 'works...

While Deciding Petition U/S 9 Of Arbitration Act, Court Cannot Ignore Basic Principles Of CPC: Andhra Pradesh HC

The Andhra Pradesh High Court bench of Justices Ninala Jayasurya and Nayapathy Vijay observed that in deciding a petition under Section 9 of the Arbitration Act, the Court cannot ignore the basic principles of the CPC. At the same time, the power of the Court to grant relief is not curtailed by the rigours of every procedural provision in the CPC. In exercise of its powers to grant interim relief under Section 9 of the Arbitration Act, the Court is not strictly bound by the provisions of...

Usage Of Chemicals As Raw Materials Doesn't Detract From Categorisation As Chemicals; Must Be Taxed At 8%: Andhra Pradesh High Court

The Andhra Pradesh High Court stated that the use of chemicals as raw materials would not change their categorisation as chemicals. Therefore, they must be taxed at 8% only. The Division Bench of Justices R. Raghunandan Rao and Harinath N. was addressing a tax dispute in which the assessee challenged the Revisional Authority's imposition of a higher tax rate of 12% on goods, instead of the 8%. G.O.Ms.No.189, issued on 7th February 2005, revises the tax rate on the sale of “All...

“Judge Cannot Usurp Role Of Disciplinary Authority”: Andhra Pradesh High Court Quashes Order Halting Disciplinary Proceedings Midway

The Andhra Pradesh High Court has set aside the order of the Single Judge, which had allowed the assessee's petition and quashed the disciplinary proceedings midway, specifically at the stage when the enquiry had already been completed. The Division Bench of Justices G. Narendar and Kiranmayee Mandava observed that “………the Judge could not have usurped the role of the disciplinary authority and scuttled the proceedings midway. The statute vests the authority, either to impose or not to...

Andhra Pradesh HC Grants Assessee Opportunity To Seek Revocation Of Registration Cancellation Missed Due To Ongoing Insolvency Proceedings

The Andhra Pradesh High Court has allowed the assessee to file an application for the revocation of the cancellation of their registration, which they missed due to ongoing insolvency proceedings. The Division Bench of Justices R Raghunandan Rao and Harinath N observed that because the assessee had to go through the insolvency proceedings under the IBC, 2016, they should be given some leeway to help get their business back on track. The assessee/petitioner, engaged in the real...

S.81 CGST Act Can't Be Invoked To Declare Transfer Of Property Void Without Determining 'Nature Of Transaction' As Being Sham: Andhra Pradesh HC

The Andhra Pradesh High Court has prima facie held that Section 81 of the Central Goods and Services Tax Act, 2017 cannot be invoked to declare transfer of property void, unless there is a specific finding regarding sham nature of transaction.Section 81 provides that where a person parts with his/her property after any amount has become due from him under the Act, with the intention of defrauding the Government revenue, such transfer shall be void.In the case at hand, Petitioner was purchaser of...

AO Can't Refer Assessee's File To Joint Commissioner For Levying Penalty U/S 271D Of IT Act Without Recording “Satisfaction”: Delhi HC

The Andhra Pradesh High Court has held that an Assessing Officer cannot refer an assessee's file to the Joint Commissioner of Income Tax for levying penalty under Section 271D of the Income Tax Act, 1961 without recording its “satisfaction”.Section 271D of the Income Tax Act prescribes the penalty to be imposed on a taxpayer for taking loan or deposits in contravention of Section 269SS. As per Section 269SS, all loans or deposits of over Rs.20,000 must be taken through banking...

Continuation Of Order Of Attachment And Garnishee Notice Is Impermissible When Appeal Filed Against Order Of Assessment: Andhra Pradesh High Court

The Andhra Pradesh High Court stated that when the assessee files an appeal against an order of assessment, the enforcement actions that have been taken, such as property attachment and garnishment notices, should not continue.The Division Bench of Justices R Raghunandan Rao and Harinath. N observed that the assessee has preferred an appeal and has paid 10% of the disputed tax, as required under Section 107 of the CGST Act, no further tax can be recovered from the assessee, in pursuance of...