Rejection of Benami Allegations Based on Business Arrangements and Consideration Tests Facts The Allegation: The Initiating Officer (IO) provisionally attached a property, alleging a benami transaction. The IO pointed to several “suspicious” factors: The Benamidar (the legal owner) operated their business from the premises of the alleged Beneficial Owner. There was no formal lease agreement… Read More »
Anti-Profiteering: Failure to Pass on ITC Benefits in Construction Contracts (Section 171) Facts The Complaint: NTPC filed a complaint with the Standing Committee alleging that the Respondent (the contractor) had failed to pass on the benefits of the GST transition in a construction contract for the period July 2017 to October 2023. The Transition: Before… Read More »
Invalidity of Bypassing Detention Proceedings for Premature Confiscation (Section 130) Facts The Interception: The Petitioner, a registered dealer in metal scrap, was transporting goods that were intercepted in transit at Aslali by the State Tax Officer. The Procedure: The Department initiated proceedings under Section 129 (Detention, seizure, and release of goods and conveyances in transit)… Read More »
Admissibility of Advance Ruling for Past Supplies and Completed Projects (Section 95/97) Facts The Applicant: A pharmaceutical company manufacturing APIs and formulations that set up a new plant in Udaipur. The Transaction: The company issued purchase orders to contractors for civil works, specifically RCC foundations and steel structural supports required for installing machinery. The Tax… Read More »
Invalidation of Remand Order for Non-Supply of Written ‘Grounds of Arrest’ (Section 69) Facts The Detention: Following a search of his residential premises under Section 67, the Petitioner was detained and subsequently arrested by GST authorities. The Remand: The Petitioner was produced before a Magistrate, and a remand order was passed, authorizing his continued custody.… Read More »
Interest Liability on Wrongfully Availed Transitional Credit (Section 50) Facts The Transaction: For the period August 2017 to May 2019, the Petitioner carried forward approximately Rs. 1.31 crore as transitional credit by filing Form GST TRAN-1. The Discrepancy: The credit did not reflect in the Petitioner’s Electronic Credit Ledger (ECL). Consequently, the Petitioner reported and… Read More »
Sufficiency of Show Cause Notice (SCN) for Cancellation of Registration (Section 29) Facts The Notice: The Jurisdictional Officer issued a Show Cause Notice (SCN) in Form GST REG-17 to the Petitioner, proposing the cancellation of their GST registration. The Allegation: The SCN alleged that the Petitioner had availed ineligible Input Tax Credit (ITC) from non-existent… Read More »
Release of Seized Assets Due to Time-Barred Assessment (Section 132B) Facts The Seizure: In March 2008, during a search and seizure operation, the Revenue seized jewellery valued at Rs. 40.34 lakhs belonging to the Petitioner. The Assessment: An assessment was originally framed for AY 2008-09, making an addition for the value of the seized jewellery.… Read More »
Assessment in the Name of a Non-Existent Company Post-Amalgamation Facts The Amalgamation: A scheme of amalgamation was approved by the NCLT, under which the transferor company (‘H’) stood amalgamated with the Assessee-company. The Intimation: On 2-3-2023, the Assessee formally informed the Assessing Officer (AO) about the amalgamation, effectively notifying the department that ‘H’ had ceased… Read More »
Procedural Delay in Filing Form 10-IC for Concessional Tax Rate (Section 115BAA) Facts The Assessee: A domestic company opting for the concessional tax rate of 22% (plus applicable surcharge and cess) under Section 115BAA for AY 2020-21. The Filing: * The company filed its Return of Income (ITR) on 31-03-2021, explicitly selecting the option for… Read More »