Promissory Estoppel – Doctrine of estoppel will not be applied against the State in its governmental public or sovereign capacity – Exception where it is necessary to prevent fraud or manifest injustice – Section 174(2)(c) of the CGST Act rescinds earlier tax exemptions – Estoppel cannot operate against legislative functions – Union not bound by 2003 O.M. due to statu...
Constitutional Law – Writ Jurisdiction – High Court’s jurisdiction under Article 226 of the Constitution – Statutory remedy of appeal under Section 46(1) of the MP VAT Act, 2002 – High Court entertained a writ petition against the Assessment Order denying Input rebate despite availability of statutory appeal – Supreme Court held High Court’s decision unsus...
Wealth Tax Act – Valuation of Shares – Respondent-assessee gifted shares under a lock-in period – Shares listed and quoted on stock exchanges but restricted from trading – Tribunal/Court must determine if such shares are "quoted shares" – Supreme Court affirmed shares under lock-in are not "quoted shares" due to lack of regular market transactions ...
Income Tax – Employee Contribution – Deduction of Employees' Contributions to PF/ESI – Section 36(1)(va) vs. Section 43B – Contributions must be deposited on or before the due date specified in the respective acts for deduction eligibility – Distinction between employer's contribution (Section 36(1)(iv)) and employees' contribution (Section 36(1)(va)) uphe...
Sales Tax – Refund or Transfer of Tax – The Central Sales Tax Appellate Authority found the sales of buses by Tata Motors through RSO Vijayawada to APSRTC as inter-state sales, making them liable for central sales tax in Jharkhand. However, the tax had been paid to Andhra Pradesh treating the sale as a stock transfer. Prior to Section 22(1B) insertion in the Central Sales Tax Act, 1956...
Taxation – Additional Duties of Excise – The Supreme Court examined whether 'Pan Masala' containing tobacco and gutka, which are covered by an entry in the First Schedule to the ADE Act, can be subjected to sales tax by the States under their respective sales tax laws. The court observed that once goods are chargeable under the ADE Act, they are exempt from State sales tax unde...
Tax Law – Transfer to Defraud Revenue – Section 34 of the U.P. Trade Tax Act applies only if the transfer of immovable property occurs during the pendency of proceedings under the Act with the intent to defraud tax dues – The transfer in this case was made before the reassessment proceedings began – Consequently, Section 34 does not apply, and the transfer is valid – ...
Insolvency Law – Priority of Tax Claims – The State is a secured creditor under the GVAT Act – Section 48 of the GVAT Act provides for a first charge on the property of the dealer for tax dues – Supreme Court held that Section 48 is not contrary to or inconsistent with Section 53 of the IBC – Section 53(1)(b)(ii) of the IBC includes debts owed to a secured creditor, w...
Income Tax – Bad Debt – Assessee’s claim for writing off Rs. 10 crores as a bad debt disallowed – Amount advanced to developer not substantiated by material evidence – Mere provision for doubtful debt not sufficient under Section 36(1)(vii) after 1.4.1989 – Supreme Court held that the deduction was not allowable as conditions under Section 36(2) were not met &nd...
Service Tax – Consulting Engineer vs. Works Contract – Services such as erection, installation, and commissioning of goods at customer sites cannot be classified as consulting engineer services – Tribunal correctly held that such services fall under works contract and are not liable for service tax as consulting engineering – Revenue's appeal dismissed [Paras 2-4].
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