Endorsement of Invoices by SEZ Officer Not Mandatory for Pre-2018 Supplies Issue Whether the Department can demand tax and interest on supplies made to an SEZ unit during July 2017 to March 2018 solely because the invoices were not endorsed by the SEZ Authorised Officer, by retrospectively applying the 2018 amendment to the SEZ Rules… Read More »
Proceedings under Rule 96(10) Quashed Following its Deletion; Benefit Extended to Pending Cases Issue Whether Show Cause Notices (SCNs) and assessment orders issued to recover IGST refunds based on the violation of Rule 96(10) (which restricted exports on payment of IGST if inputs were procured duty-free) can survive after the said rule was omitted w.e.f.… Read More »
Blocking of Electronic Credit Ledger (ECL) without Hearing & Independent Reasons Quashed Issue Whether the Department can block a taxpayer’s Electronic Credit Ledger (ECL) under Rule 86A based on generic allegations (borrowed satisfaction) without affording a pre-decisional hearing or recording independent “reasons to believe.” Facts The Action: The Respondent blocked the petitioner’s Electronic Credit Ledger… Read More »
Canned Fruit in Syrup is “Processed Food,” Not “Fresh Fruit” Issue Whether pineapple slices, pineapple tidbits, and fruit cocktail preserved in sugar syrup and canned in vacuum-sealed tin containers fall under the definition of “Fresh Fruits” (Entry A-23 of the Bombay Sales Tax Act, 1959) and are thus tax-free, or if they are taxable as… Read More »
Jurisdiction Dispute: Can Customs Department Demand Recovery of IGST Refund? Issue Jurisdiction: Whether the Customs Department has the jurisdiction to issue a Show Cause Notice (SCN) for the recovery of IGST refunds granted on exports, or if such jurisdiction lies exclusively with the GST Department. Classification: Whether the products (sealing material) fall under HSN 4016… Read More »
Refusal to Follow Jurisdictional High Court Decision due to Pending Supreme Court Appeal is Invalid Issue Whether the Commissioner (under Section 264) can refuse to grant relief to an assessee by ignoring a binding decision of the jurisdictional High Court (in CIT v. Sheraton International Inc.) solely on the ground that the Department has challenged… Read More »
AMP Adjustment Deleted for MLM Company; Consistency Followed Issue Whether commissions paid to distributors by a Multi-Level Marketing (MLM) company can be treated as Advertising, Marketing, and Promotion (AMP) expenses incurred for the benefit of the foreign parent entity (creating an “international transaction”), and whether adjustments can be made to the arm’s length price on… Read More »
Addition based on “Dumb Documents” (Excel Sheets) & Retracted Statements Deleted Issue Whether additions for unexplained money (alleged cash investment in land) can be sustained solely on the basis of seized Excel sheets found on a third party’s laptop and statements that were subsequently retracted, without any independent corroboration or cross-verification. Facts The Evidence: During… Read More »
Unsigned “Draft Agreement” from Third Party Search Cannot Justify Addition Issue Whether an addition for unexplained expenditure (alleged cash payment for property) can be made under Section 69C based solely on an unsigned and undated draft agreement found on the hard disk of a third party (a deed writer/advocate), without any corroborative evidence or cross-verification.… Read More »
Tax Rate Difference No Bar to Setting Off STCL against LTCG Issue Whether Short Term Capital Loss (STCL) can be set off against Long Term Capital Gains (LTCG) under Section 70(2), even if the tax rate applicable to the loss-making asset (e.g., 15% or 30%) is different from the tax rate applicable to the gain-making… Read More »