Merely Attaching Tax Determination Statement To DRC-01 Summary Cannot Be Treated As A Valid SCN: Gauhati High Court

The Gauhati High Court held that merely attaching tax determination statement to Drc-01 summary cannot be treated as a valid show cause notice. Justice Sanjay Kumar Medhi stated that “…….a formal and duly authenticated SCN is mandatorily required to initiate proceedings under Section 73. The Statement of tax determination under Section 73(3), which is attached to the summary cannot be treated as a valid SCN. Therefore, initiating proceedings solely based on such a statement is not in...

Restoration Of Cancelled GST Registration Permissible If Taxpayer Clears Dues And Files Returns: Gauhati High Court

The Gauhati High Court stated that the restoration of cancelled GST registration is permissible if the taxpayer clears dues and files returns. The Bench of Justice Sanjay Kumar Medhi observed that “proviso to sub-rule (4) of Rule 22 of the CGST Rules 2017 provides that if a person, who has been served with a show cause notice under Section 29(2)(c) of the CGST Act, 2017, is ready and willing to furnish all the pending returns and to make full payment of the tax itself along with...

Right To Appoint Arbitrator Is Not Automatically Forfeited After Expiry Of 30 Days From Date Of Demand Made By Other Party: Gauhati High Court

The Gauhati High Court bench of Justice Yarenjungla Longkumer has held that if an arbitrator is not appointed within 30 days of the demand by the other party, the right to appoint is not automatically forfeited. However, such appointment must be made after the 30-day period but before the other party files an application under Section 11 of the Arbitration Act. This is a petition under Sections 11(5) and 11(6) of the Arbitration and Conciliation Act, 1996 for appointment of an ...

S.10(26) IT Act | Gauhati HC Upholds Refund Of Income Tax Deducted From Scheduled Tribe Officer's Salary, Says He Was Entitled To Exemption

The Gauhati High Court has upheld a single-bench decision asking the Central government to refund the income tax deducted from the salary of a BSF Assistant Commandant belonging to the Scheduled Tribe community.A division bench of Chief Justice Vijay Bishnoi and Justice N. Unni Krishnan Nair passed the direction in view of Section 10(26) of the Income Tax Act, 1961, which prescribes tax exemption to members of recognised Scheduled Tribe communities posted in specified areas.It observed, “It...

Retracted Statement Can't Be Termed As Incriminating Material, No Addition Can Be Made In Respect Of Completed Assessment: Gauhati High Court

The Gauhati High Court stated that retracted statement cannot be termed as incriminating material and no addition can be made in respect of completed assessment. The Commissioner of Income Tax (Appeals) and the ITAT were of the view that the said piece of evidence, i.e. retracted statement cannot be termed as incriminating material, noted the Division Bench of Chief Justice Vijay Bishnoi and Justice Kaushik Goswami. In this case, the assessee/respondent submitted Income Tax Returns...

Carbonated Fruit Drinks Qualify As Fruit Beverages, Taxable At 12% GST: Gauhati High Court

The Gauhati High Court stated that carbonated fruit drinks qualify as fruit beverages and are taxable at 12% GST. The Bench of Justice Soumitra Saikia opined that “where the subject product contains soluble solids and fruit content as per the report of the State Food Laboratory, it cannot be said to be akin to water, mineral water or aerated water. Mere presence of carbon dioxide or carbonated water cannot be treated to classify the subject items under water or carbonated water. The ...

Rule 36(4) Of CGST Rules Is Constitutionally Valid, Does Not Derive Power From Section 43A: Gauhati High Court

The Gauhati High Court has upheld the constitutional validity of Rule 36(4) of the Central Goods and Services Tax/Assam Goods and Services Tax Rules, 2017. The provision stipulates documentary requirements and conditions for a registered person claiming input tax credit (ITC).A division bench of Chief Justice Vijay Bishnoi and Justice N. Unni Krishnan Nair observed that the provision was enacted based on powers derived from Section 16 of the CGST Act and the general rule-making powers under...

Mere Existence Of Arbitration Clause In Agreement Does Not Oust Jurisdiction Of Civil Court To Entertain Suit: Gauhati High Court

The Gauhati High Court bench of Justice Malasri Nandi has held that merely because there is an arbitration clause providing for referring the dispute and the claim to the arbitration, the civil court's jurisdiction is not barred but the same is subject to Section 8 of the Arbitration Act, 1996. Brief Facts An agreement was entered into between the plaintiffs and the defendants under which the defendants undertook to construct flats for the plaintiffs. The plaintiffs requested the...

S.69 CGST Act | Commissioner Must Specify Necessity Of Arrest In Addition To 'Reasons To Believe' That Assessee Committed Offence: Gauhati HC

The Gauhati High Court has held that Section 69 of the Central Goods and Services Tax Act 2017, which confers power to arrest on a Commissioner under the Act, requires the authority to not only record 'reasons to believe' that an assessee committed the specified offence but also specify the necessity to arrest.While dealing with a writ petition challenging Petitioner's arrest, Justice Soumitra Saikia observed, “The requirement under Sub-section (1) of Section 69 is to have “reasons to believe”...

S.73 CGST Act | SCN, Order Issued Without Signature Of Proper Officer Is 'Ineffective': Gauhati High Court

The Gauhati HIgh Court has held that the Show Cause Notice issued to an assessee under Section 73 of the Central Goods and Services Tax Act, 2017, the Statement issued along with the SCN as well as an Order passed under Section 73(9) must mandatorily be signed by the Proper Officer.Justice Soumitra Saikia observed, “As it is the statutory mandate that it is only the Proper Officer who has the authority to issue Show Cause Notice and the Statement and pass the order, the authentication in the...

S.68 IT Act | Whether Assessee Discharged Burden To Substantiate Identity & Genuineness Of Share Application Money Is 'Question Of Fact', Not Law: Gauhati HC

The Gauhati High Court refused to entertain an appeal with respect to genuineness of credit received by an assessee from share application money, holding that the same would require it to venture into factual matrix of the case which is beyond its jurisdiction under Section 260A of the Income Tax Act, 1961. The appeal was preferred by the Revenue, following CIT(A) reversing the additions made by it on the strength of alleged share application money received by the Assessee. Its second...

Summary Of SCN In GST DRC-01 Cannot Substitute Requirement For Issuance Of SCN U/S 73(1) Of CSGT Act: Gauhati High Court

The Gauhati High Court stated that issuance of summary of Show Cause Notice in GST DRC-01 cannot substitute requirement for issuance of show cause notice under section 73(1) of CSGT Act. The Bench of Justice Manish Choudhury observed that “…….the issuance of the Summary of the Show Cause Notice, Summary of the Statement and Summary of the Order do not dispense with the requirement of issuance of a proper Show Cause Notice and Statement as well as passing of the Order as per the...