Income Tax Not Leviable On Interest-Free Refundable Security Deposit For Due Completion Of Project By Developer: Andhra Pradesh High Court

The Andhra Pradesh High Court at Amaravati has held that income tax is not leviable on an interest-free refundable security deposit for the due completion of a project by the developer.The bench of Justice U.Durga Prasad Rao and Justice Venkata Jyothirmai Pratapa has observed that, as per the development agreement, the disputed amount of Rs. 50 lakhs is only an interest-free security deposit lying in the hands of the petitioner. It is not appropriate on the part of the department to treat the...

Andhra Pradesh High Court Dismisses Plea Challenging Denial Of GST ITC Claim On The Basis Of Transfer Done Manually Not Electronically

The Andhra Pradesh High Court has dismissed the plea challenging the denial of the GST input tax credit (ITC) claim on the basis that the transfer was done manually, not electronically.The bench of Justice Ravi Nath Tilhari and Justice A V Ravindra Babu has observed that the petitioner’s plea to read down the provisions of Rule 41 of the CGST Rules and to direct to accept the manual filing deserves rejection, as neither Rule 41 of the CGST Rules is under challenge nor is shown to be contrary to...

Execution Petition For Arbitration Award Would Lie Only Before The Designated Commercial Courts: Andhra Pradesh High Court

The High Court of Andhra Pradesh has held that an execution petition for an arbitration award can only lie before the designated Commercial Courts and no other Court viz., Civil/District Court can entertain such an application. The bench of Justices D.V.S.S. Somayajulu and Duppala Venkata Ramana held that an execution/enforcement petition for an arbitration award of a specified value would be an application within the meaning of Section 15 of the Commercial Courts Act, 2015 that...

Acceptance GSTR-3B Returns With Late Fee Will Not Condone Delay In Claiming ITC: Andhra Pradesh High Court

The Andhra Pradesh High Court has held that mere acceptance of Form GSTR-3B returns with a late fee will not exonerate the delay in claiming the Input Tax Credit (ITC).The bench of Justice U. Durga Prasad Rao and Justice T. Mallikarjuna Rao has observed that ITC being a concession, benefit, or rebate, the legislature is within its competency to impose certain conditions, including a time prescription for availing the right, and it cannot be challenged on the ground of violation of Constitutional...

Andhra Pradesh High Court Quashes Suspension Order Of Customs Broker Licensee Passed Without Giving Opportunity Of Hearing

The Andhra Pradesh High Court has quashed the suspension order passed by the Customs Commissioner suspending the customs broker licence without giving the opportunity for a hearing.The bench of Justice U. Durga Prasad Rao and Justice Venkata Jyothirmai Pratapa has observed that the Managing Director of the petitioner company was on judicial remand. Through repeated requests were made by the petitioner company, their request was rejected on the ground that the legal time frame fixed under the...

Tax Not Payable On Motor Vehicles Exclusively Used for Contract Inside Central Deposit Yard: Andhra Pradesh High Court

The Andhra Pradesh High Court has held that the motor vehicles exclusively used for the petitioner's contract inside the Central Deposit Yard of Rashtriya Ispat Nigam Limited (RINL) are not liable for taxation and are entitled to exemption.The bench of Justice V. Sujatha has observed that the subject motor vehicles were deployed to the Central Deposit Yard Premises, and with effect from April 1, 2021, all the motor vehicles have stopped plying upon the public roads and were being used...

Life Tax On Vehicle Should Be On The Cost, Excluding GST And Cess: Andhra Pradesh High Court Directs Refund

The Andhra Pradesh High Court has held that life tax is to be collected from the vehicle owner upon sale based on the net invoice price of the vehicle and not the ex-showroom price of the vehicle.The bench of Justice V. Sujatha has observed that the life tax can be levied only on the cost of the vehicle under the 6th schedule of the A.P. Motor Vehicles Taxation Act, 1963.The assessee or petitioner has purchased the Hyundai Venue. At the time of purchase, the petitioner paid 14% CGST and 14%...

Since Investigation By DGGI Started Prior To Filing Of Application, AAR Order Is Invalid : Andhra Pradesh High Court

The Andhra Pradesh High Court has ruled that the term ‘any proceedings’ referred to in the proviso to Section 98(2) of the CGST Act/ Andhra Pradesh GST Act (APGST Act), includes within its ambit the investigation initiated against the applicant under the said Act. The bench of Justices U. Durga Prasad Rao and T. Mallikarjuna Rao noted that the proviso to Section 98(2) puts an embargo on the authority of the AAR to admit an application where the question raised in the said application is...

GST Dept. Can’t Retain Disputed Amount Paid Due To Inadvertent Error: Andhra Pradesh High Court

The Andhra Pradesh High Court has held that the GST department cannot retain the disputed amount that is paid to them due to an inadvertent error.The division bench of Justice C. Praveen Kumar and Justice A.V. Ravindra Babu has observed that the amounts that were paid by the assessee or petitioner who furnished the incorrect details cannot be taken as a tax due from the department or respondents, legally. The department cannot contend that the claim, if any, of the petitioner is barred by...

18% GST Payable On Manufacturing Of Alcohol For Human Consumption By Way Of Job Work: Andhra Pradesh High Court

The Andhra Pradesh High Court has held that 18% GST is payable on the manufacturing of alcohol for human consumption by way of job work.The division bench of Justice C. Praveen Kumar and Justice A.V. Ravindra Babu has observed that alcoholic liquor is not considered a food. Services by way of job work in relation to the manufacture of alcoholic liquor for human consumption are not eligible for 5% GST.The petitioner/assessee is a manufacturer of Indian-made foreign liquor having its distillery at...

Once Registered As MSME, The Nature Of Activity Cannot Be A Bar To Any Relief Under The Act: Andhra Pradesh High Court

The Andhra Pradesh High Court has held that once an enterprise is registered with the local MSME Council, it is entitled to all the benefits of the Act and the nature of activity between the parties cannot stand as a bar to any relief provided under the act. The bench of Justice R. Ragunandan Rao held that MSME Council cannot dismiss an application under Section 18 of the Act on the ground that the activity between the parties was merely a 'trading activity', thus, not covered by the ...

Weight Of Arbitration Award (Delivery) Cannot Be Just 55 Grams: Andhra Pradesh High Court

The Andhra Pradesh High Court has held that an arbitration award would weight more than 55 grams and a consignment weighing 55 grams cannot be deemed to be a valid delivery of award. The bench of Justice R. Raghunandan Rao also held that an arbitral award passed in violation of Section 7 and 11 of the A&C Act would be a nullity. It held that in absence of an arbitration agreement, there cannot be any arbitration between the parties. Moreover, in absence of the consent of both the...