The Directorate General of GST Intelligence (DGGI) Gurugram Zonal Unit (GZU), Haryana, has arrested Shri Ritesh Aggarwal, resident of Bahadurgarh, Haryana on charges of passing and availment of fake ITC while operating dummy, fake and non-existent firms and encashing this unduly availed input tax credit (ITC) through IGST refund mode by showing export of cigarettes.
It became apparent from the investigation that Shri Ritesh Aggarwal, the proprietor of M/s SR Impex was a de-facto controller of another firm — M/s SR International. In the supply chain of these firms were found to be six other dummy firms by the names of M/s Joles Trading Co, AS Traders, AR Traders, Om Traders, Capital India & S.M enterprises — all controlled by Shri Ritesh Agarwal. In all these firms, Shri Ritesh Aggarwal had availed and passed on ITC of Rs. 376 crore by means of billing without goods. Shri Ritesh Aggarwal has sanctioned a refund of Rs. 37.13 crore from the department.
In addition, Shri Ritesh Aggarwal was found to be a habitual offender. In an earlier case also Show Cause Notice for the demand of Rs 26.53 crore was issued to him for a similar modus operandi of operating a fake firm, M/s SS & Co. (GSTIN 06DJUPD5067G2ZW), and availing and passing on fake ITC.
Further, Shri Ritesh Aggarwal, who also adopts the alias of Ravi Gupta, was found to be accused in the Show Cause Notice dated 01.03.2019 issued by the DGRI wherein fraudulent drawback was availed on imported areca nuts by forging the Certificate of Origins.
The investigation spanned multiple locations in Delhi and Haryana and based on documentary evidence and statement recorded of many suppliers of these firms, it was ascertained that Shri Ritesh Aggarwal is a key person in orchestrating this racket of making fake/non-existent/dummy firms and wrongly availment and passing on on ITC of Rs. 376 crore. Accordingly, Shri Ritesh Aggarwal was arrested on 09.02.2021 and produced before Duty MM, Patiala House Court Delhi, who ordered judicial custody.
Further investigations in the matter are under progress.
The Institute of Chartered Accountants of India (ICAI) organised its 71st Annual Function on February 9, 2021. Shri (CA.) Arun Singh, Hon’ble Member of Parliament (Rajya Sabha) was the Chief Guest on the occasion.
ICAI in its epic journey sprawling over seven decades has built an undisputable brand- Partner in Nation Building. ICAI has sailed through its voyage with conviction, optimism, hope and confidence. Today, ICAI has grown manifold and has created a vast pool of Chartered Accountants, indispensable for practically every sphere of the country’s economy, industry, business and good governance.
At the outset of the function, Shri Rakesh Sehgal, Acting Secretary, ICAI welcomed the distinguished gathering and shared that over the years, ICAI has garnered a niche for itself by rising to challenges and persistently building upon embedded virtues of Independence, Integrity and Excellence.
Addressing the gathering, CA. Atul Kumar Gupta, President, ICAI said “The year 2020 was an unprecedented and unpredictable year strewn with numerous ebbs and flows, yet the lessons we learnt from it are far greater in the degree of significance and magnitude than the curveballs it threw. ICAI taking note of the situation, undertook all the required measures so that the future CAs are well equipped to serve the industry & society with their intellectual acumen. The learning should not stop whatsoever the situation maybe.”
He briefly highlighted the achievements of the Institute during the year which include association with various Govt. initiatives like Atmanirbhar Bharat, boosting MSMEs, the establishment of Centre for Audit Quality, etc.
President, ICAI further added “As the economies emerge from hibernation, the accounting community should strive to find innovative solutions to combat the aftermath of the things that have taken place this year. Professional accountants, with their deeper understanding of the processes, procedures and systems, can help business to build early warning structures within the organisations to forewarn about the threats and mitigate the risk.”
Shri (CA.) Arun Singh, Hon’ble Member of Parliament addressing the participants said “CA profession has played a true role of Partner in Nation building and has always been at the forefront promoting various initiatives of the Govt. In the time of the COVID-19 pandemic, the CA profession remains at the forefront and supported by Govt. & society and contributed in COVID fund, distributed kits for the needy, etc. throughout the country.”
Hon’ble Member of Parliament further added, “ Innovation & ICAI are synonymous to each other, as ICAI always keep innovating in every field i.e. curriculum, implementing new global practices, technological reforms, issuing new guidelines, etc. to be at the forefront of economic development.” He further added ” This noble profession has taught me time management and sharpened by Managerial skills. I am proud to be a part of this profession.”
CA. Nihar N Jambusaria, Vice-President, ICAI said “Bound by integrity and transparency, the profession of Chartered Accountancy has been establishing new benchmarks in terms of providing excellent services to the stakeholders and contributing towards the cause of economic growth of the nation.”
He further added “The triumph of our profession must continue even in the times of transition and turbulence. We need to think differently and strive to conquer the emerging challenges, simultaneously exploring and capitalising on the potential opportunities.” The Chief Guest also distributed awards under various categories to meritorious students, Branches/Regional Councils & Overseas Chapters of ICAI.
The Gujarat High Court set aside the rejection of application under Sabka Vishwas (Legacy Dispute Resolution) Scheme, 2019 ( SVLDRS ) for ineligibility under the category investigation, enquiry, and audit.
The petitioner company, M/s E.I. Dupont India Pvt. Ltd. is engaged in manufacturing of polymers, crop protection products, insecticides and fungicides, herbicides, resins etc. With respect to the manufacturing activities, the audit proceedings were carried out for the period from June 2014 to June 2017 by the office of the Commissioner, CGST and Central Excise.
During the audit, some discrepancies were found and accordingly the petitioner was issued a letter directing to discharge the tax liability with applicable interest and penalty as mentioned in the aforesaid letter.
On account of the introduction of the Sabka Vishwas (Legacy Dispute Resolution) Scheme, 2019 by the Central Government with the object to bring an end to pending litigation under the indirect tax regime, the petitioner company chose to avail the benefit under the Scheme, 2019 and filed its declaration in Form SVLDRS-1 seeking the tax benefit to the extent of 50 % of the total tax dues as quantified and intimated to the petitioner vide letter.
The category under which the application (declaration) filed was investigation, enquiry or audit and it was disclosed that, Rs.1,22,18,781 as being the amount payable for availing the benefit under the Scheme, 2019.
However, the respondent rejected the application stating that the application was not eligible under the category of investigation, enquiry or audit.
The writ applicant sought the quashing of the order of the respondent authority in rejecting the application (declaration) filed under the Sabka Vishwas (Legacy Dispute Resolution) Scheme, 2019 for settlement of excise duty as conveyed by letters.
The applicant further challenged the legality of the statement issued in Form SVLDRS-2 issued by respondent authority and sought direction to process the declaration made by the petitioner in Form SVLDRS-1.
The division bench of Justice J.B.Pardiwala and Justice Ilesh J. Vora held that the statement in Form SVLDRS-2 is in contravention of the provisions of the Act and the Rules thereunder and the same deserves to be quashed and set aside and accordingly, it is quashed and set aside. Consequently, the impugned rejection letters are also quashed and set aside.
The court while allowing the petition directed the Designated Committee to decide the application of the writ applicant afresh after giving an opportunity of hearing to the writ applicant and take appropriate decision and pass reasoned order keeping in mind the discussions made by us in this order within 8 days.
Subscribe Taxscan Premium to view the JudgmentThe Institute of Cost Accountants of India (ICMAI), issued the notification to revise Certified Management Accountant (CMA) Course Fees.
The Council has approved revised course fees to be implemented with effect from 11th February, 2021 (December 2021 term and onwards).
The course fees for the foundation exams will be Rs.6,000; the intermediate exam fees will be Rs.22,000 and for the final exams Rs. 25,000 will be charged.
The Institute also notified that the Skills Training Facilitation Fees, at the time of Registration in Intermediate Course will be Rs.1,100.
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The Central Board of Indirect Taxes and Customs ( CBIC ) reminded all the GST Taxpayers who are required to deduct Tax at Source (TDS) under GST that only 3 Days left to File GSTR-7 Return for the month of January, 2021.
The due date for filings GSTR-7 Return for the month of January 2021 is 10th February 2021.
The GSTR 7 is a return form under GST for all the taxpayers who account all the tax deducted at source. The GSTR 7 due date is 10th of every next month in a particular tax period.
The TDS is deducted at the source of income and is deposited to the government and note that the TDS will not be deducted in case the supplier location and place of supply is other than the registration place of the recipient. It is noteworthy that the CBIC, while reminding all the Taxpayers who are required to deduct Tax at Source (TDS) under GST warned that late filing of GSTR-7 would attract late fee and interest.
The Institute of Chartered Accountants of India (ICAI) announced the CA results for Foundation and Intermediate exams. Along with the result, the merit lists up to 50th rank are also available on the official websites. Candidates who appeared for CA exams for Foundation and Intermediate courses in November 2020 can download their scorecards from the official website now.
As per the press release of the ICAI Zarin Begum Yusuf Khan has secured the All India First Rank, Ajit B Shenoy has secured the All India Second Rank and Siddarth Menon R has secured All India Third Rank in Intermediate Examination for Old Course held in November, 2020.
The ICAI has announced that Shreya Rakesh Tibrewal is the All India Topper First Rank, Ranveer Sanju Soni has secured All India Second Rank and Sanskruti Atul Parolia has secured All India Third Rank in Chartered Accountants Intermediate Examination (New Course) held in November, 2020.
In the Chartered Accountants Foundation Examination Puneet Agrawal and Nidhi Dinesh Kumar Lalwani secured the position of All India Topper First Rank. All India Second Rank and All India Third Rank has been secured by Chinmay Bengani and Prasanna Kumar Prafull Surana respectively. The Pass percentage of candidates passed in the above said examinations is 35.03%.
The State Bank of India (SBI) in collaboration with the Small Industries Development Bank of India (SIDBI) and other PSBs developed and adopted the Contactless Lending Platform (CLP) for MSME loans. This scheme is specially rolled out for CAs who are in practice for at least 5 years.
In order to capture this important segment and to cater to the credit requirements of Chartered Accountants, a new product, “SME Finance For CAs Under Contactless Lending Platform” has been rolled out.
There are various Salient features of the product.
Firstly, SME Finance For CAs Under Contactless Lending Platform will extend finance to CAs registered with Institute of Chartered Accountants of India (ICAI).
Secondly, the minimum loan granted will be Rs.2.00 lakhs and maximum loan can be extended to Rs. 100 lakhs
Thirdly, simple assessment of limit based on Income Tax Return Nil collateral security.
Fourthly, no prepayment penalty will be applicable.
Lately, competitive rate of interest linked to EBLR, Covered under CGTMSE and Loan will be available through CLP platform.
The loan facility to CAs will be introduced in Metro and Urban centers including State Capital/ Tier-I cities.
Member Chartered Accountants (CAs) / Proprietorship / Partnership / or in any other form registered with the Institute of Chartered Accountants of India and currently under practice.
The Applicant must be minimum of 25 Years and Maximum of 65 years of age. CA must have Certificate of Membership (CoM)/ Certificate of Practice (CoP) issued by ICAI. CoM/ CoP should be at least 5 years old.
The Minimum ITR for past 3 years should be available. The applicant must obtain a minimum score of 50% as per scorecard under the scheme. Applicants must be registered in UDYAM portal as MSME. Applicants with CIBIL score below 650 will be ineligible.
“Appraisal formats for the loan product are being developed in LOS/ LLMS. Hence, till such time rolled out in LLMS branches are permitted to process the proposal outside LOS/ LLMS. Please advise the operating units and branches under your control to book maximum business under the product,” the e-circular said.
Subscribe Taxscan Premium to view the JudgmentThe Union finance minister Nirmala Sitharaman announced relaxation for non-resident Indians (NRIs) while presenting the Union Budget 2021, which will be effective from April 1, 2021.
Presently, when NRIs return to India, they face issues related to their accrued incomes in their foreign retirement accounts, which mainly occurs due to mismatch in taxation periods. She also highlighted their difficulties in getting credit for Indian taxes in foreign jurisdictions, leading to double taxation.
The government notified a major economic concession to its citizens living abroad, allowing them to set up one person companies (OPCs) in their home country. Until now, the facility was available only for those living in India.
This economic concession is expected to benefit a large number of Indians living in the Gulf, which has the highest number of non-resident Indians (NRIs).
As a result the Gulf-resident Indians will now be able to better plan their future for a day when their overseas work or contracts end and they have to leave their countries of limited residence to return home.
Earlier there existed the restriction that OPCs set up by resident Indians cannot be converted into a public limited company or a private limited company for two years will not apply to NRIs. Similarly, a limitation that the paid-up capital of Indian rupees five million and annual turnover of rupees 20 million, presently applicable for OPCs has also been done away with. So there are no restrictions on the growth of OPCs.
The Directorate General of Foreign Trade ( DGFT ) has announced the introduction of an online e-Tariff Rate Quota (e-TRQ) System for imports.
As part of IT Revamp, the DGFT has prepared the e-TRQ System for processing such e-TRQ applications with effect from 08.02.2021 onwards. All applicants seeking Tariff Rate Quota(TRQ) for imports are required to submit their application online under “e-Tariff Rate Quota” in the Import Management System, through the importer’s dashboard on the DGFT Website (https://dgft.gov). For TRQ applications that have already been submitted for the Financial Year 2021-22 and are yet to be processed, these applications will be migrated to the new system, for which no action is required by the applicant.
The ministry also notified that any request for amendment of the TRQ licenses, issued on or after 08.02.2021, is required to be submitted electronically only through the E-TRQ system. Further, licenses for all TRQs will also be issued electronically and TRQ License data would be transmitted electronically to the Customs Authorities. With this ineffective, no paper copies of the TRQ Import license will be issued by DGFT with effect from 08.02.2021 Help Manual and FAQs are also set up on the DGFT website to facilitate change into the new system.
Subscribe Taxscan Premium to view the JudgmentThe Karnataka Authority of Advance Ruling (AAR) ruled that 18% GST is applicable on support services for research on the Prevention of Epilepsy.
The applicant, M/s.Vevaan Ventures has not obtained registration under the GST Act, 2017. The principal object of the firm is to carry out clinical research activities in India to determine the safety and effectiveness (efficacy) of medications, devices, diagnostic products and treatment regimens intended for human use.
The applicant has sought advance ruling in respect of the various questions.
Firstly, the advance ruling was sought in respect of the SAC applicable to the activities undertaken by M/s Vevaan Ventures.
Secondly, whether the exemption given under Notification No. 9/2017- Integrated Tax (Rate) dated 28.06.2017 is applicable to the applicant.
Thirdly, whether the applicant can avail input tax credit of tax paid or deemed to have been paid.
Fourthly, whether the applicant is liable to pay tax on outward services, if yes, at what rate.
Fifthly, whether the applicant is required to be registered under the Act.
The coram consists of Dr. Ravi Prasad and Mashood Ur Rehman Farooqui held that the services provided by the applicant, as explained earlier is not in connection with the diagnosis or treatment or care for illness and is related to support services for research and is covered under SAC 998599 and hence is not covered under healthcare services and thereby not covered under entry no. 74 of Notification No.12/2017- Central Tax (Rate) dated June 28, 2017.
The Authority ruled that the services provided by the applicant, as explained earlier is not in connection with the diagnosis or treatment or care for illness and is related to support services for research and is covered under SAC 998599 and hence is not covered under healthcare services and thereby not covered under entry no. 74 of Notification No.12/2017- Central Tax (Rate) dated June 28, 2017.
Since the services provided by the applicant is not exempt, the applicant is eligible to claim and avail input tax credit in terms of section 16 of the CGST Act, 2017 and section 16 of the KGST Act, 2017, the AAR added. “Since the applicant is involved in the intra-State supply of services, as the location of the supplier and the place of supply is the same state, the applicant is liable to register as per the terms of section 22 of the CGST Act, 2017,” the AAR said.
Subscribe Taxscan Premium to view the JudgmentThe Madras High Court held that the provisions of the Prevention of Money Laundering Act cannot be invoked in the absence of nexus between criminal activity and property acquired.
The petitioner, Viswanathan was into the business of imports and exports in the name and style of “Mercantile India”. Between 1999-2002, Viswanathan exported stainless steel utensils to Sri Lanka and between 2000-2001, he purchased 8 residential flats in Chennai.
The Directorate of Revenue Intelligence began an investigation of the exports made by Viswanathan and found that he was not entitled to Duty Entitlement Pass Book (DEPB) Scheme credit facility and therefore, issued a show-cause notice under the Customs Act to Viswanathan.
Eventually, the Commissioner of Customs passed an adjudication order denying DEPB credit facility to Viswanathan and ordered recovery of the same, besides levying fine and penalty on him.
However, the CESTAT, Chennai allowed the appeal preferred by Viswanathan by holding that the exports made by him cannot be termed to be fraudulent, as a sequel of which, demands were dropped. The Department did not agitate the matter further.
Viswanathan had a quarrel with Govindarajan and Panneerselvam, on account of which, the Panneerselvam lodged a complaint to the police alleging that Viswanathan is a Sri Lankan national and was holding a fake Indian passport.
After completing the investigation, the Directorate of Enforcement filed a complaint in the Principal Sessions Court for offences under Section 3 read with Section 4 of the PML Act against Viswanathan and his wife Kavitha, for quashing which, Viswanathan and Kavitha have filed the present criminal original petition invoking Section 482 Cr.P.C.
Mr. B. Kumar, counsel appearing for the petitioners, submitted that even if the averments in the FIR to the effect that Viswanathan had obtained an Indian passport by suppressing the fact that he is a Sri Lankan national, is true, the said offence was committed much before the coming into force of the PML Act and ergo, the prosecution stands vitiated.
The division bench of Justice P.N. Prakash and Justice V. Sivagnanam while disagreeing with the contention of Mr. Kumar said that the explanation that has been added to Section 3 of the PML Act vide Act 23 of 2019 sets to rest the argument that the predicate offence should have been committed only after the coming into force of the PML Act.
The court observed that Viswanathan had not committed an offence under the Customs Act, since he was not prosecuted under Section 135 of the Customs Act at all. Adjudication proceedings were initiated against him for the exports made by him during 1999-2002 and that has also attained finality in the order passed by the CESTAT, Chennai, holding that the exports made by him were not illegal.
Subscribe Taxscan Premium to view the JudgmentThe Income Tax Department notified the ITR-7 Guidance Note for Assessment Year 2020-21. The ITR-7 is filed when persons including companies fall under section 139(4A) or section 139 (4B) or section 139 (4C) or section 139 4(D).
No document including TDS certificate should be attached with this return form while filing ITR-7.
Taxpayers are advised to match the taxes deducted/collected/paid by or on behalf of them with their Tax Credit Statement Form 26AS.
The Registration Details under section 12A/12AA in respect of the Detail of registration/approval under Income Tax Act to be furnished in Schedule Part-A General, ‘Return furnished section’ to be selected as 139(4A) and ‘Section under which exemption claimed’ to be selected as section 11.
For example, if the assessee has selected section 11 for “Section under which exemption claimed”, for the field “Detail of registration/approval under Income Tax Act to be furnished in Schedule Part-A General, ‘Return furnished section” section 139(4A) to be selected.
The guidance note clarified that if assessee is having details of new/fresh registration, may be furnished.
A per Section 12A(1)(b) of Income Tax Act (up to Assessment year 2019-20), when the total income of a trust/institution exceeds the maximum amount which is not chargeable to tax in previous year, the accounts of such trust/institution for that year to be audited and to furnish Form 10B along with the return.
However, from Assessment year 2020-21 Act has been amended from Assessment year 2020-21). As per Section 12A(1)(b) r.w.s. 44AB Audit report in FORM 10B to be filed one month prior to the due date for furnishing the return of income under sub-section 1 of section 139.
The return has to be filed as per provisions of section 139. As per Rule 12 Return Form, ITR 7 is for specific entities. However, ITR 7 efiling Utility has been enabled for entities that are unconditionally exempt to furnish their Return.
Subscribe Taxscan Premium to view the JudgmentThe Karnataka Authority of Advance Ruling (AAR) ruled that GST can be levied on the notional interest on the security deposit.
The Applicant, M/s Midcon Polymers Pvt. Ltd. have proposed/ planned for engaging in the business of renting commercial property on monthly rents and allied business. They intend to enter into a contractual agreement of renting an immovable property with an educational institution in Bangalore.
The Contract is on the basis of the reserved monthly rent of Rs 1.50 lakhs or Annual Rent of Rs.18 Lakhs and also refundable caution deposit of Rs 500 Lakhs, which shall be returned without interest on the termination of the tenancy. Further, since the applicant is required as per law to refund the advance caution deposit, the same does not in any way determine the quantum of rent.
The issue raised in this case was for the purpose of arriving at the value of rental income, whether the applicant can seek deduction of property taxes and other statutory levies.
It was further asked that for the purpose of arriving at total income from rental, whether notional interest on the security deposit should be taken into consideration and whether the applicant is entitled for exemption of tax under the general exemption of Rs.20 lakhs.
The coram consists of Dr. Ravi Prasad and Mashood Ur Rehman Farooqui ruled that the applicant can not deduct the property taxes and other statutory levies for the purpose of arriving at the value of rental income.
“Notional interest has to be considered as part of value of supply of service, if and only if the said notional interest influences the value of supply i.e. value of RIS service / monthly rent and is leviable to GST along with monthly rent at the rate applicable to monthly rent,” the AAR ruled.
The Authority further added that the applicant is entitled to exemption of tax under the general exemption of Rs.20 lakhs, subject to the condition that their annual turnover, which includes monthly rent and notional interest if it influences the value of supply, does not exceed the threshold limit.
Subscribe Taxscan Premium to view the JudgmentThe Institute of Chartered Accountants of India (ICAI) is likely to announce the Chartered Accountant Intermediate and Foundation courses result on 8th or 9th February.
“The Arrangements have also been made for the candidates of Intermediate Examination (Old course & New Course) and Foundation Examination, desirous of having results on their email addresses to register their requests at the website i.e. icaiexam.ical.org from 6 February 2021. All those registering their requests will be provided their results through e-mail on the e-mail addresses registered as above immediately after the declaration of the result,” ICAI announced.
It is noteworthy that for accessing the result at the above-mentioned websites the candidate shall have to enter his/her registration no. or PIN no. along with his/her roll number. Further facilities have been made for candidates of Intermediate Examination (Old Course & New Course) and Foundation Examination held in November 2020 desirous of knowing their results with marks on SMS. The ICAI has already declared CA Final year results for Old and New courses on 31st January 2021..
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The Gujarat High Court issued the notice to GST Authorities for allegedly coercing, pressurising the writ applicant to transfer an amount of Rs.9 Crore to the department’s account.
The writ applicant, M/s Bharat Acids and Chemical contended that the mode and manner in which the respondent’s authorities has alleged to have coerced and pressurized the writ applicant to transfer an amount of almost Rs.9 Crore to the account of the department is shocking.
The writ applicant was summoned and under the guise of interrogation was kept under detention for almost a period of 33 hours.
“No wonder, the State of Gujarat has topped the list of states with the highest collection of tax under the GST Act in the country for the year 2020-21,” the division bench of Justices J.B. Pardiwala and Ilesh J. Vora said.
The court said that let Notice is issued to the respondents, returnable on 16th February 2021. The respondents shall be served directly through email. By the next date of hearing, the respondents are directed to file their respective replies so that this Court is able to proceed further with the matter expeditiously.
Subscribe Taxscan Premium to view the JudgmentThe Madras High Court while quashing proceedings under Prevention of Money Laundering Act held that the property purchased from salaries and perquisites paid during employment would not be proceeds of crime.
The Enforcement Directorate has stated how the accused, Sivaramakrishnan, as Accountant, had made false entries in the account books and had inflated the financial status of the company, and had induced the banks to give loans to FLCI.
There is absolutely no mention in the complaint that he had acquired any proceeds of crime by that activity, apart from his salary and bonus. It is true that the criminal activity had resulted in proceeds of crime, coming into the kitty of FLCI and going into the accounts of shell companies and into the accounts of Farouq Irani and his family and not to the family of the employees of FLCI like Sivaramakrishnan.
Sivaramakrishnan’s only duty in FLCI was to engage in criminal activities for which, he was paid a salary. If that had been the case of the Enforcement Directorate or the CBI, then, one can say that the monthly salary earned by him was proceeds of crime.
For example, if a company engages a master forger on a monthly salary to forge documents and help the company to earn profits, then, the salaries paid to the master forger will undoubtedly come within the ambit of the proceeds of crime and he can be prosecuted under the PML Act.
The FLCI’s only job was to engage in criminal activities. In fact, Sivaramakrishnan joined FLCI in the year 1997 the subject loan of Rs.20 crores was given by the SBI on 08.02.2005; similarly, the IDBI Bank sanctioned the loan of Rs.18 crores only on 17.08.2005; only thereafter, the diversion of funds had taken place into the shell companies of FLCI and the proceeds of crime generated.
The division bench of Justices P.N.Prakash and V.Sivagnanam noted that C.B.I. has not found that Sivaramakrishnan benefited financially from the criminal activity of fudging records. Of course, these findings of the C.B.I. are not binding on the Enforcement Directorate, but, this Court cannot turn a Nelson’s eye to this, especially in the light of the fact the Enforcement Directorate themselves have filed a separate complaint against Farouk Irani and Sherna F. Irani for diverting the loan amounts into their personal accounts and into the account of their family Trust and for projecting them as untainted money.
The court disagreed with the observation of the Enforcement Directorate that the salaries and perquisites that were paid to Sivaramakrishnan (A.1) while he was in employment with FLCI would amount to proceeds of crime and any property purchased with that would stand tainted.
Therefore, the court held that the presumption under Section 24 of the PML Act, on facts, the impugned prosecution of Sivaramakrishnan and his wife Ratha under the PML Act is misconceived and the same is accordingly quashed.
Subscribe Taxscan Premium to view the JudgmentThe Karnataka Authority of Advance Ruling (AAR) ruled that no GST is applicable to Medical services and part-time practising in Clinic.
The applicant, Dr. Hosahalli Boraiah Govardhan a proprietary concern, registered under the provisions of the Goods and Services Act, 2017, is a Medical Doctor specialised in Cancer and other General Health Care Services and presently working in KIDWAI HOSPITAL as Salaried Employee and also is rendering Consulting Services to Hospitals/ Laboratories or Biobanks registered in United States of America (USA) and other countries through phone calls, Video Conference, Mails and other Electronic devices.
He is living in India and rendering all medical consultancy services from India to Hospitals or laboratories or biobanks and receives monthly or quarterly remuneration from the USA and other countries in dollars or foreign currency.
He has further stated that he desires to practice in India part-time and receive consultancy income in India from Indian Hospitals or Laboratories and health care services.
The applicant has sought advance ruling on the issues that are the applicant eligible to be registered under GST Act.
Further, the advance ruling was sought on the issue that is there any tax liability on services rendered to the Hospitals / Laboratories/ Biobanks registered in the United States of America (USA) and other countries includes the export of intellectuals like clinical data completions, analysis, clinical opinion advisory consultation through Phone calls, Video Conference, Mails and other Electronic devices and the applicant is living in India and services rendered from the place of India.
The coram consists of Dr. Ravi Prasad and Mashood Ur Rehman Farooqui held that the applicant is providing Business Promotion & Management Services, covered under SAC 9983 and are taxable as discussed at para 11 supra. The applicant is a service provider, as an intermediary, becomes a taxable person and hence is liable for registration in terms of Section 22(1) of CGST Act 2017. Therefore the applicant is liable for registration subject to the threshold limit of turnover.
The AAR ruled that there is no liability of tax on diagnostic and treatment services rendered to Hospitals/ Laboratories/ biobanks registered in the United States of America and other countries. However, the business promotion services rendered, as per the contract submitted, are liable to tax under the GST Acts. “The diagnostic and treatment services are covered under Health Care Services and the medical services and part-time practising in Clinic are exempted from the payment of GST,” the AAR said.
Subscribe Taxscan Premium to view the JudgmentThe Karnataka Authority of Advance Ruling (AAR) ruled that 18% Goods and Services Tax ( GST ) applicable on Chocolate Milk Powder.
The Applicant, M/s Karnatka Co-operative Milk Producers Federation Ltd. is an Association of persons and is registered under the Goods and Services Act, 2017, engaged in processing of milk and milk products. They manufacture Skimmed Milk Powder and Whole Milk powder, classify the same under tariff number 0402, taxable at 5% and supply the same to government schools through Zilla panchayats under “Ksheera Bhagya yojana” scheme as part of the midday meal scheme to school children.
At the request of the Government of Karnataka to supply milk powder mixed with chocolate, they also manufacture and supply Chocolate flavored Whole Milk Powder (Chocolate Milk Powder in short), effective from November 2017 to different schools located in the districts of Mysore and Bellary region. They classified the said “Chocolate Milk powder” under chapter 1806 and are paying the GST at the rate of 18%.
The applicant has sought advance ruling in respect of the classification of Chocolate Milk Powder.
The coram consists of Dr. Ravi Prasad and Mashood Ur Rehman Farooqui noted that The product in the instant case is neither milk nor milk powder but ‘Chocolate Milk Powder’, which is admittedly obtained on blending of Whole Milk Powder with Chocolate Flavoured Powder in the ratio of 97.5 to 2.5. Further, it is an admitted / undisputed fact that the product in question also does not have the characteristics, required under FSSAI and BIS, to be considered as Milk Powder, in terms of para 7.5 supra. Thus the instant product does not cover under the heading 0401 or 0402. The other remaining headings of Chapter 4 are not relevant to the instant product. Therefore, the AAR ruled that the product “Chocolate Milk Powder” is classified under the Tariff heading 1806.
Subscribe Taxscan Premium to view the JudgmentThe Kerala Goods and Services Tax Department has arrested a person for creating Fake Invoices for ineligible ITC around Rs 30 crores.
An investigation conducted by the Idukki unit of the Investigation Branch of the State Goods and Services Tax against fake/bogus invoices and resultant availment of ineligible ITC detected a case where fake invoices were seen to be issued to the tune of around Rs 30 crores.
There were four GST registrations involved in this cartel- M/s Starlight, M/s PRM Plywood, M/s Lan Wood, and M/s Gasala Plywoods. These entities were found to be fictitious and were seen to be issuing fake invoices indicating the supply of plywood. These fake invoices enabled evasion of GST in the plywood sector by making available ineligible ITC to the tune of around Rs 5.5 crores.
Shri Reneesh CA alias Reni of Chirakkakkudy House, Allapra, Perumbavoor appeared before the investigating officers in connection with the investigation and confessed to floating fictitious entities and issuing fake invoices in the name of the above-mentioned GST registrations. The offences committed by Shri Reneesh CA are punishable under Section 132 of the Kerala SGST Act, 2017, and are cognizable and non-bailable. Shri Reneesh C A has been arrested under Section 69 of the Kerala SGST Act, 2017 by the Idukki IB team led by Intelligence Officer Smt. Sainimol Joseph. Further investigation of the case is in progress.
The Custom Commissioner notified General Waiver of Penalty for late filing of Bill of Entry due to Non- functioning of ICEGATE from February 1, 2021, to February 3, 2021.
The ICEGATE System was non-functional during the above period and the trade faced difficulty in filing the Bills of Entry within the time stipulated under Section 46 of the Customs Act, 1962 and Regulation 4 (1) of the Bill of Entry (Forms) Regulations, 2018.
As a measure of trade facilitation, it has been decided that for the consignments where IGM was filed between January 31, 2021 (20:00 hours) to February 3, 2021 (20:00 hours) and Bill of Entry is filed on February 4, 2021, there will be no charge on late presentation of Bill of Entry. In all such cases, waiver of late filing charges pertaining to the above said period would be dealt with by the respective Deputy/Asstt. Commissioner of the concerned Group directly.
In case of any further delay in the generation of Bill of Entry after February 4, 2021, the Customs Brokers or the Importers are requested to submit evidence like Job No. ScreenShots of the Job No. from ICEGATE/Message received in ICEGATE, to show that efforts were made for submitting a job in ICEGATE for filing Bill of Entry but no positive acknowledgment was received from ICES.
All such cases of waiver of late filing charges pertaining to a Bill of Entry filed after February 4, 2021, for entry inwards date February 3, 2021, would be dealt with by the respective JC/ ADC on merits.
Subscribe Taxscan Premium to view the JudgmentICAI, being a true Partner in Nation Building has always collaborated with various initiatives of the Government, Regulatory authorities, etc. for facilitating the implementation of various policies/ measures for the development of the economy.
The Institute of Chartered Accountants of India (ICAI) had entered into an MOU with al (ITAT) whereby ICAI extended the facility of using ICAI infrastructure at branches for conducting camp hearings of ITAT as and when required at ICAI branches& offices across the country including Srinagar & Ladakh. It may be recalled that this arrangement was announced in the presence of Hon’ble Chief Justice of India Justice S. A. Bobde, during the 79th Foundation day celebration of ITAT held at New delhi in January 2020.
The First Camp Bench of Income Tax Appellate Tribunal (ITAT) in the premises of ICAI was inaugurated by Hon’ble Justice Sh. P. P. Bhatt, President, ITAT at Jammu in the presence of Sh. N.K. Saini, Hon’ble Vice-President, ITAT, Sh. (CA.) G.S. Pannu, Hon’ble Vice-President, ITAT, CA. Atul Kumar Gupta, President ICAI, Smt. Poonam Sidhu, (IRS), Chief Commissioner of Income Tax, and Sh. R.L Negi Hon’ble Judicial Member, ITAT. The leading Members of the Bar, Both CA’s and Lawyers appeared before the camp benches and a significant number of old appeals were disposed of. Incidentally, this camp bench was held after a gap of almost five years and it was wholeheartedly welcomed by the taxpayers, tax professionals as well as the Income Tax Department.
On the occasion, Hon’ble Justice P.P. Bhatt appreciated the endeavor of the ICAI in providing its infrastructure for the cause of justice and said that this initiative shall go a long way in establishing the idea of justice at the doorstep to the taxpayers, which would ultimately result in ease of doing business for the citizens of the country.
Speaking on the occasion CA. Atul Kumar Gupta, President, ICAI said “ICAI is a body set up under the Act of Parliament and has always been in the forefront in assisting all such activities which further the cause of justice. ICAI has a vast network of branches with the required infrastructure. This initiative will help in increasing the outreach program of the ITAT to provide justice at the doorstep.” Sh. M P Singh, (CIT Appeals), Sh. S K Sharma (Addl CIT ), Sh. Rakesh Kumar (Addl. CIT), CA. Pramod Jain, Central Council Member ICAI, Executive Committee Members of Jammu, Kashmir, and Ladakh Branch CA. Lalit Kumar Gupta, CA. Shalay Razdan, Past Chairman, (JK ICAI), CA. Nakul Saraf, Secretary, (JK ICAI) along with other Former Chairmen of the branch, Chartered Accountants, Advocates, and Officials of Income Tax Department were also present on the occasion.
