June 2019 ERNAKULAM BRANCH - kochiicai.org

NEWSLETTER

ERNAKULAM BRANCH OF SIRC OF THE INSTITUTE Of CHARTERED ACCOUNTANTS OF INDIA

June 2019

Issue No: 98Vol: IV

INSIDEChairman’s MessageBranch ActivityJudicial Decisions on Direct TaxesJudicial Decisions on Indirect Taxes

Shri Pullela Nageswara Rao, Chief Commissioner of Central Tax, Central Excise & Customs inaugurating the Two Day National Conference on GST organized by the Indirect Taxes Committee of The Institute of Chartered Accountants of India (ICAI) and hosted by Ernakulam Branch of SIRC of ICAI at IMA House, Kaloor, Ernakulam.

L to R : CA. Allen Joseph, CA. Roy Varghese, CA. Sreenivasan.P.R, CA. Jomon K George, CA. Rajendra Kumar, CA. Babu Abraham Kallivayalil, CA. Renjith R Warrier, CA. Jose K V, CA. Deepa Varghese, CA. Salim A are also seen.

February 2019NEWSLETTER

Chairman’s Message

What a month it has been! The branch was abuzz with many activities for the members and students. On 17th May, 2019 a one day seminar was conduct-ed on “Audit under Companies Act” and on 31st May & 1st June 2019 the Two Day National Seminar on GST was conducted. I thank all the members of the branch for turning up in large numbers and making the seminars a grand success. It is the participation and appreciation from the members that motivates us to bring you the best. Please keep supporting and motivating us. Apart from these major programmes we conducted evening seminars, lecture meetings and study circle meetings on various topics such as GST Annual Return and GST Audit, Benami Trans-action Prohibition Act, the proposed new forms for GST returns, new audit report under Companies Act, New ITR forms, etc. All the programmes were well re-ceived and appreciated. The session on GST annual return for students conducted by team SICASA was also well attended.

June is a busy month for Chartered Accountants as most of us are working towards the deadline for fil-ing GST annual return and GST audit for the finan-cial year ended 31.03.2018, which falls on June 30, 2019. We hope that the various educational sessions that we conducted would benefit every member and that you will have a very successful GST audit sea-son. Amidst your busy schedule, please take an hour out in the morning on 21st June, 2019 (Friday) as we have organised a special yoga session from 7.30 am to 8.30 am at the branch premises to commemorate the 5th International Day of Yoga. Yoga helps to relax the body and mind, so please do come and get your mind de-stressed.

July 1st is CA day and on that day we are organising a CA Day celebration and family get-together at Ho-tel Holiday Inn. Details will be circulated to you very soon. Please block your dates and join us for a fun filled evening and dinner. Subsequent week will be celebrated as ‘CA Day Week’ and we have lined up many programmes including blood donation camp on

July 1st followed by a talk on organ donation, mem-ber’s sports events, CSR activities, chain seminars, etc. I request all members to kindly participate and take benefit of all the activities.

As you may be aware, it is our endeavour to reach out to our members in a better and faster way. Hence, we have started broadcasting messages to members over social media apps like ‘WhatsApp’ and ‘Tele-gram’. Please note our number 8301025388 and save it to your devise, so that you are able to receive our messages. As we had already announced, we are in the process of finalising the triennial member’s directory of Ernakulam Branch for the period 2019-22. As per requests received from members for more time, we have extended the deadline to June 30, 2019. Please update your profile at the earliest.

As the new government takes up its second avatar, we professionals need to keep updating ourselves with the various compliance requirement. The writ-ing on the wall is very clear, be compliant, be law abiding, else face the consequences. As Chartered Accountants, it is our duty to ensure that this point is driven deep down in the minds of our clients. The institute is celebrating its 70 years of existence. In this platinum jubilee year, while we celebrate the CA day on July 01, 2019, I am sure that we will all stand united as partners of nation building and uphold the ethics and values of this great profession.

Jai Hind! Jai ICAI!

CA.Sreenivasan P.R

Chairman

June 2019NEWSLETTER

3

BRANCH ACTIVITIES – March 2019

FOR MEMBERSCPE SEMINARS / MEETINGS / CONFERENCES / WORK-SHOPS / LIVE WEBCAST

One day CPE seminar on “audit under Companies Act” was or-ganized by the branch on 17th May, 2019 at Hotel Monsoon Em-press, Palarivattom, Kochi. The seminar was inaugurated by Shri A.P.M. Mohammed Hanish, IAS, Managing Director, Kochi Met-ro Rail Ltd. The technical sessions on “special consideration in company audit” , “Accounting Standards and IND AS – towards total compliance” and “revised auditing reporting standards” were taken by CA. Jomon K George, CA. Vinayak Pai V, Bengaluru and CA. Ganesh Balakrishnan, Hyderabad.

On 25th May, 2019 CPE Seminar on “Issues in GST Audit and Annual Return” was organized by the branch . CA. Ganesh B Prabhu, Chennai was the speaker.

CPE seminar on “Benami Transaction Prohibition Act and its in-terplay with Income Tax” was organized by the branch on 29th May, 2019. CA. P.T. Joy took the session.

Two day National Conference on GST was held on 31st May and 1st June, 2019 at IMA house, Kaloor, Kochi. The conference was organized by the Indirect Taxes Committee of ICAI hosted by Ernakulam Branch of SIRC of ICAI. On the 1st day of the conference the topics deliberated were on “practical issues in GST annual return, maintenance of records and finalization of accounts” and “taxability of receipts of charitable institutions un-der GST” and “GST audit process, checklist, reconciliation and documentation” . The sessions were taken by CA. Shaikh Abdul Samad A, Chennai, CA. Rajendra Kumar P, Chennai and CA. Bimal Jain, New Delhi.

On the second day of the conference the topics discussed were on “GST on real estate and works contract” and “latest amend-ments in GST – law, notifications, circulars and recent judicial pronouncements”. CA. Ashok Batra, New Delhi and Adv. G. Shivadass, Bengaluru were the speakers.

This month we have conducted three study circle meetings. The details are as follows :

Date Topic Speaker

02-05-2019 Audit reports under revised SA 700,701, 705 and 706

CA. Ankit R Momaya

15-05-2019 Auditors appointment and procedures under – Com-panies Act 2013

CA. Nithin. N

22-05-2019 New ITR forms CA. G. Renga-rajan

SIRC ORIENATION PROGRAMME

Triennial Orientation Programme for the members of the 23rd SIRC of ICAI and the managing committee members of branches of SIRC of ICAI for the term 2019-2022 was held on 7th and 8th May,2019 at Le Meridien, Maradu, Ernakulam. Managing com-mittee members of 45 branches in the southern regional attend-ed the programme. Hon’ble President of ICAI CA. Prafulla P Ch-

hajed was the Chief Guest and CA. Atul Kumar Gupta, Hon’ble Vice President of ICAI was the guest of honour.

CERTIFICATE COURSE ON PREPARATION OF APPEALS, DRAFTING OF DEEDS AND DOCUMENTS IN REPRESENTA-TION BEFORE APPELLATE AUTHORITIES AND STATUTO-RY BODIES

Certificate Course on “Preparation of appeals, Drafting of Deeds & Documents and Representation before Appellate Authorities and statutory bodies” was commenced at the branch on 11th May, 2019. CA. R. Bupathy, Hon’ble Past President of ICAI in-augurated the course and took the 1st module of the course. CA. K.P.Paulson, CA. R. Krishnan, CA. P.M.Veeramani, CA. Ashish Makhija, CA. P.T. Joy, CA. Shankara Narayanan, CA. Ganesh Prabhu and CA. Jomon K George were the other faculty of the course. The course completed on 26th May with a moot Income Tax Tribunal session. CA. P.M.Veeramani, who took up the role of Departmental Representative (DR), was the Coordinator of the moot tribunal. CA. A.S. Narayana Moorthy and CA. K.P. Paulson adorned the role of tribunal members. CA. Mathew Jo-seph, CA. Radhesh L Bhat, CA. R. Krishnan and CA. Surendran argued cases as Authorised Representatives (AR) of the asses-sees in the moot tribunal. 30 members attended the course.

EXPOSURE DRAFT COMMENTS SUBMITTED

Comments on “Accounting Standard (AS)-34, Interim Financial Reporting ” was submitted to Accounting Standards Board of ICAI on 12th May, 2019.

OTHER BRANCH ACTIVITIES – STUDENTS

Faculty meeting was held on 29th May, 2019 at Grand Hotel, Ernakulam followed by lunch. CA. Roy Varghese, Vice chair-man of the branch and Chairman of Academic Affairs Committee of the branch welcomed the gathering. CA. Sreenivasan. P.R, Chairman and CA. P.T. Joy, Past Chairman and member of the Academic Affairs Committee addressed the faculty members. In the Interactive sessions matters relating to suggestions for im-provement, student feedback analysis, student discipline, use of visual aids like PPT etc by the faculty, dress code for man-datory courses, Assessment Test Papers, career Counselling Programme and CA Awareness Programme were discussed. CA. Renjith R Warrier, Secretary of the branch proposed vote of thanks. 22 faculty members attended the meeting.

Academic Affairs committee meeting of the branch was held on 10th May 2019. CA. Jomon K George, Chairman, SIRC of ICAI, CA. Sreenivasan.P. R, Chairman, CA. Roy Varghese, Vice Chairman, CA. Renjith R Warrier, Secretary, CA. Deepa Var-ghese, Chairperson, SICASA and Mrs. Lizzy Babitha, Course Co-ordinator attended the meeting.

Mock Tests for students: -

Mock Test Series-II was conducted for Final (New Course) / & Final (Old Course) for May 2019 Examination. 64 students ap-peared for the same.

June 2019NEWSLETTER

4 Ernakulam Branch of SIRC of ICAIErnakulam Branch of SIRC of ICAI

Reported Judicial DecisionsCA.P.M Veeramani FCA

Direct Tax

Statute: Income Tax Act – Sec.11(4A) – Bus facility for school Decision in favour of : AssesseeTitle : Delhi Public School Ghaziabad Society vs ACIT Citation: 69 ITR Trib SN 31 Bench: ITAT Delhi

School provided transport facility to staff and students for which it charged separate fee from students. AO considered this activity as business and invoked provi-so to section 2(15) and denied exemption under sec-tion 11. Held, it was not the case of the department that the transport facility was also provided to outsid-ers. The transport activities of the assesse were not in the nature of business in as much as transport was incidental to the attainment of main object of assesse of education. Hence provisions of section 11(4A) is not attracted

Statute: Income Tax Act – Sec.35 – Bank is also el-igible Decision in favour of : Assessee

Title : Dhanalakshmi Bank Limited vs CITCitation: 410 ITR 280 Bench: Kerala HC

The expression “industrial undertaking” should be un-derstood to have been used in section 35D in a wide sense , taking in its fold any project or business a per-son may undertake. Hence , a bank extending financial services would be entitled to amortization of prelimi-nary expenses in connection the issue of shares for public subscription

Statute: Income Tax Act-Sec.40(a)(ia)-FA 2015 amendment remedial Decision in favour of : Assessee

Title : Zuberi Engineering Co vs DCITCitation: 69 ITR Trib 261 Bench: ITAT Jaipur

The amendment brought into section 40(a)(ia) by Fi-nance Act 2015 was remedial in nature and retrospec-tive in applicability. Accordingly, the disallowance sus-tained was restricted to 30% of the sum paid without TDS

Statute: Income Tax Act – Sec.56(2)(viib) – AO can-not change method of valuation

Decision in favour of : AssesseeTitle : Innoviti Payment Solutions Private Ltd vs ITOCitation: 69 ITR Trib SN 33 Bench: ITAT Bangalore

It is not open for AO to change the method of valu-ation adopted by the assesse in valuing the shares under Rule 11UA(2(b). But AO is well within his rights to examine the methodology adopted and underlying assumptions and is he is not satisfied , challenge the method and suggest necessary modifications or alter-nations provided they are based on sound reasoning and rationale

Statute: Income Tax Act – Sec.68 – Addition in the year of credit only Decision in favour of : Assessee

Title : Kohinoor EnterprisesCitation: 410 ITR 153 Bench: J & K High Court

The loan was continuously carried forward in the books for the last six years and hence does not relate to the current year . Hence, it could not be considered as ad-dition in the current year. Even for the sake of argu-ment, the loan is considered as fictitious , it could not be added as income under section 68 in the current year

Statute: Income Tax Act-Sec.80 DD-Constitutional Amendment Decision in favour of : NA

Title : Ravi AGarwal vs UOI

Citation: 173 DTR (SC) 194 Bench: Supreme Court of India

Condition laid down in Jeevan Aadhar Policy of LIC r/w s. 80DD that the amount/annuity under the policy is to be released to the handicapped persons only after the death of their parent/guardian represents the legisla-tive mandate and, therefore, the Court cannot give a direction to the Parliament to amend the said provision in a specified manner; since the petitioner has pointed out several difficult situations where handicapped per-sons may need the payment on annuity or lump-sum basis even during the lifetime of their parents/guard-ians the legislature is urged to have a rebook at this provision by taking into consideration all the aspects of

June 2019NEWSLETTER

5Ernakulam Branch of SIRC of ICAI

hardships and explore the possibility of making suita-ble amendments.

Statute: Income Tax Act-Sec.143-Scope of Limited Scrutiny Decision in favour of : Assessee

Title : Thakur Rajkumar vs DCITCitation: 69 ITR Trib 79 Bench: ITAT Amritsar

According to circular 7 of 2017 there is a bar on the jurisdiction of the AO to go beyond the subjected issue under limited scrutiny, but he is not restrained from ad-judicating issues raised by the AO to correct an error in the return filed to make a correct assessment and is obliged to entertain the claim made during the said proceedings. In the return, the assesse had adopted the cost of acquisition wrongly in the computation of capital gains and AO was bound to adopt the correct figure when pointed out during the assessment

Statute: Income Tax Act-Sec.201(1A)-Date of ten-dering cheque Decision in favour of : Assessee

Title : ONGC vs DCITCitation: 173 DTR Trib 4 Bench: ITAT Mumbai

CBDT Circular No. 261, dt. 8th Aug., 1979 clarifying that the date of tendering of cheque for payment of Government dues shall be deemed to be the date of payment of such taxes has not been withdrawn and still holds the ground notwithstanding the substitution of the Central Treasury Rules (Old Rules) by the Cen-tral Government Account (Receipts and Payments) Rules, 1983; since the assessee had admittedly ten-dered the cheque with bank towards the payment of TDS to the Government account well within the stip-ulated due date it cannot be treated as an assessee in default for the delay on the part of the bank or the clearing house in making the remittance of the said amount to the Government account and therefore in-terest under s 201(1A) is not chargeable.

Statute: Income Tax Act – Sec.263 – Doctrine of Merger Decision in favour of : Assessee

Title : CIT vs SRA Ssytems LtdCitation: 410 ITR 392 Bench: Madras HC

Department contention that doctrine of merger was not applicable since assessment order and order of CIT(A) had dealt with only restriction in the quantum of deduction and not with the eligibility for the deduction under section 10A was not tenable. Tribunal was right in holding that revision was not correct when the as-sessment order with regard to claim of deduction had

merged with the order of CIT(A)

Statute: Income Tax Act – Sec.264 – Claim not made in return Decision in favour of : AssesseeTitle :Geekay Security Services Private Ltd vs DCITCitation: 173 DTR (Bom) 164 Bench: Bombay HC

CIT was not justified in refusing to exercise his revi-sional power under s. 264 only on the ground that the assessee neither claimed the deduction in the return nor claimed the same by filing a revised return; im-pugned order is set aside and the revision petition is placed back before the CIT for fresh consideration and disposal in accordance with law.

Statute: Income Tax Act – Sec.271(1)(c ) – No pen-alty for 14A disallowance Decision in favour of : Assessee

Title : PTC India Ltd vs ACITCitation: 69 ITR Trib SN 37 Bench: ITAT Delhi

Disallowance under section 14A of expenses in rela-tion to earning exempt income is a debatable issue. Disallowance sustained does not amount to conceal-ment of income or filing of inaccurate particulars. Since the issue was merely computation of the disallowance, penalty correctly deleted by CIT(A)

Statute: Income Tax Act – Sec.292 BB – Issue of no-tice in the name of deceased person – not curable Decision in favour of : Assessee

Title : Rajendra Kumar Sehgal vs ITOCitation: 173 DTR (Del) 251Bench: Delhi HC

Revenue’s argument that the “defect” was curable in regard to the issuance of notice to a deceased individ-ual, is, untenable. Phraseology of s. 292BB precludes such contention. If the original assessee had lived and later participated in the proceedings, then, by reason of s. 292BB, she would have been precluded from say-ing that no notice was factually served upon her. When the notice was issued in her name, when she was no longer of this world, it is inconceivable that she could have participated in the reassessment proceedings, (nor is that the Revenue’s case) to be estopped from contending that she did not receive it. The plain lan-guage of s. 292BB, precludes its application, contrary to the Revenue’s argument. Notice under s. 148 to a deceased individual is invalid and it is not a curable defect in terms of s. 292BB; impugned notice and all consequent proceedings including the reassessment order are quashed.

June 2019NEWSLETTER


Upcoming Programmes

Day & Date Programme Venue TimeWednesday,19-06-2019

CPE Workshop on GST Speaker:CA. Shankara Narayanan, Chennai CA. Ramaswamy K, Kochi

B 1 Auditorium, Rajagiri Hospi-tal Complex, Chunangamveli, Aluva

02.00pm – 08.00 pm CPE : 6 hours

Friday,21-06-2019

International Yoga Day Celebrations ICAI Bhawan, EKM 7.30 am- 9am

Saturday, 22-06-2019

CPE Seminar on Corporate LawSpeaker : CMA. Dr. Jagan Mohan Rao, President SAFA, Past President ICSI and CCM of CMA Institute

ICAI Bhawan, EKM 5.00 pm – 8.00 pm

CPE : 3 Hours

Thursday, 27-06-2019

Members Sports Meet Rajiv Gandhi Indoor Stadium, Kadavanthra

09.00 am – 04.00 pm

Monday, 01-07-2019

CA Day Celebrations – Flag Hoisting

ICAI Bhawan, EKM 09.00 am

Blood Donation Camp & Talk on Organ Donation

ICAI Bhawan, EKM 09.00 am – 01.00 pm

CA Day Family Day Celebrations & Health Talk

Holiday Inn Cochin,N H Bypass, Vennala, Ernakulam

06.00 pm – 09.00 pm

Wednesday, 03-07-2019

CPE Chain Seminar – “UDIN”Speaker : CA. Chiraj J Shah

ICAI Bhawan, EKM 05.00 pm – 08.00 pm CPE : 3 Hours

Thursday, 04-07-2019

CPE Chain Seminar on “ Recent Develop-ments in Taxation of NGO’s and Co-operative Societies”Speaker : CA.Prasanth Srinivas, Kottayam


Friday, 05-07-2019

Karthavya Programme General Hospital, Ernakulam 10.00 am

CPE Chain Seminar – “GST” Speaker : CA. K. Ramaswamy


Saturday, 06-07- 2019

Workshop on Audit of Private Ltd. Companies and other compliances Speakers : CA. Shawn Jeff Christopher &CA. G. Rengarajan

ICAI Bhawan, EKM 10.00 am – 05.00 pm CPE : 6 Hours

Sunday, 07-07-2019

Ploggathon ( Swachh Bharath Programme ) & Sapling distribution

ICAI Bhawan, EKM 7.00 am

ERNAKULAM BRANCH OF SIRC OF ICAIby

01-07-2019Monday

09.00 am CA Flag Hoisting ICAI Bhawan,EKM

27-06-2019Thursday

09.00 am Members Sports Meet Rajiv Gandhi Indoor StadiumKadavanthra

Date Time Programme Venue

02-07-2019Tuesday

05.00 pm Investor Awareness Programme

Entertainment Programme, Skit, Health Talk & Honouring of Senior Members who have completed 50 years in service

ICAI Bhawan,EKMICAI Bhawan,EKM

ICAI Bhawan,EKMCPE : 2 Hrs

03-07-2019Wednesday

05.00 pm CPE Seminar on “Assessment proceedings under GST and related penalties”


Speaker: CA. Ramaswamy K

Speaker: CA. Roopesh Rajagopal

Speaker: CA. Prasanth Srinivas

Speaker: CA. Chirag J Shah

Speaker: CA. G.Rengarajan & CA. Shawn Jeff Christopher

04-07-2019Thursday

05.00 pm CPE Seminar on “Recent Developments in Taxation of NGO’s and Co-operative Societies”


05-07-2019Friday 05.00 pm CPE Seminar “UDIN”-The Way Forward ICAI Bhawan,EKM

10.00 am Karthavya-CSR Activities General Hospital, Ernakulam

CPE : 3 Hrs

06-07-2019Saturday

05.00 pm CPE Workshop on “Audit of Private Ltd. Companies and other compliances”

ICAI Bhawan,EKM

07-07-2019Sunday

07.00 am Marathon “Swachh Bharath” Programme

Flag off at ICAI Bhawan,EKM

CPE : 6 Hrs

09.30 am Blood Donation10.00 am Distribution & Planting of Saplings

Hotel Holiday Inn, Bypass, Vennala06.00 pm CA Family Get-together Chief Guest: Shri. Jayasurya, Actor Talk on “Stress Bursting” by Dr. G.N.Ramesh, Aster Medcity

June 2019NEWSLETTER


JUDICIAL DECISIONS ON INDIRECT TAXESIndirect Tax

CA.P.J.Johney FCA

Statute: Service Tax Decision in favour of: Assessee

Title:Coromandel Agrico PVT. ltd. v. Commercial Tax Officer

AKIL KURESHI and UMESH TRIVEDI JJ.

Citation:[2019] 63 GSTR 1 (Guj) Bench/Court:In The Gujarat High Court

Goods and Services Tax-Recovery of Tax-Failure by As-sessee to deposit Tax Collected-Attachment of plant, Ma-chinery and Stocks-Writ-Assessee Pleading Hardship-At-tachment Suspended Subject To Conditions As To Deposit of Dues in Installments And Cooperation With Department in Assessment-Gujarat Goods and Services Tax Act (25 of 2017), s. 83-Constitution of India, art. 226.

Statute: Service Tax Decision in favour of: Respondent

Title:Jyothy Fabricate Service LTD v. Senior Divisional Com-

mercial Manager, Bangalore

Dr Vineet Kothari JCitation:[2019] 63 GSTR 86 (Karn) Bench/Court: In The Karnataka High Court

Service tax-Services of “Wet Washing” of Bed rolls provid-ed to passengers in trains -Contract for “Supply and Wash-ing of Bedrolls to Passengers Travelling in trains” Between Petitioner and Railway - Entered into Prior to Amendment with Effect from July 1, 2012 when Service Became Tax-able in Hands of Petitioner -Contractor -Correspondence Between Parties Resulting in Refusal of Railways to Additionally Bear Liability of “Service Tax’ — Writ Peti-tion Seeking Mandamus Directing Railway to Additionally bear Tax Liability at rates quoted for contract inclusive of all applicable taxes — Also Relevant Clause In Agreement indicating that Income-tax or Other Statutory Liabilities to be Borne by Petitioner and Deducted From Monthly Bills — Dispute not Raised Before Agreed Alternative Forum of Arbitration— no Adjudication by Any Competent Authority of Railway or Department— No Novation of Contract Be-tween Parties after july 1, 2012 with Regard to Variation of Rates — No Mandamus Direction, as Prayed for could be given — Petition Dismissed — Finance Act (32 of 1994).

Statute: Sales Tax Decision in favour of: Petitioner

Title:Rajeswari v. Assistant Commisioner of Commercial

Taxes –II (FAC),Virudhunagar and Another

M. Govindaraj J

Citation:[2019] 63 GSTR 133 (Mad) Bench/Court: In The Madras High Court

Sales Tax — Arrears of Tax — Company — Directors—Appeal — Stay — Security bond — Assessment made on Private Limited Company Incorporated Under Companies Act — Petitioner, Wife of One of Directors of Company, a Deceased Director, Produced Her Personal Property as Security In Form Six for Obtaining stay — Appellate Authority Set Aside Order Passed by Assessing Officer and Remanded Matter for Fresh Consideration — Secu-rity Bond Became Void— Notice Calling for Remittance of Tax Arrears, Failing Which, Property Given as Security during Pendency of Appeal be sold— set aside — Tamil Nadu general sales tax rules, 1959, r.31(1)—Madras Rev-enue recovery act (2 of 1864)— Indian companies act (7 of 1930).

Statute: Sales Tax Decision in favour of: AssesseeTitle: Geetatex v. Deputy Commissioner. of Sales Tax

Akil Kureshi and B. N. Karia JJ.

Citation: [2019] 63 GSTR 1 (Guj) Bench/Court: In The Gujarat High Court

Sales Tax—Revision—Deemed Assessment—Once Deal-er Fulfilled Eligibility Conditions And Paid Additional Tax-es And Filed Declaration, Assessment Deemed To Have Been Completed—Competent Authority Thereafter Has No Jurisdiction To Question Dealer’s Declaration — Dis-qualification Of Dealers Whose Books Of Account, Regis-ters, Documents Impounded Or Seized — Dealer’s Decla-ration Accepted Prior To Search And Seizure Operations At Dealer’s Place Of Business—Effect— Assessment Deemed Complete Upon Acceptance Of Declaration And Subsequent Seizure Of Books Not Ground To Disqualify It — Revision Impermissible— Deputy Commissioner In Revision Rejecting Declarations—Effect— Assessment Would Be Pending— Deputy Commissioner Confirming Tax Liability—Beyond Jurisdiction— Tribunal Affirming Revision On Assumption That Books Impounded Prior To Declaration— Order Not Sustainable—Gujarat Sales Tax Act, 1969 (1 Of 1970), Ss. 41, 41aa, 67.

Statute: Goods and Service Tax Decision in favour of: Department

Title: Bharat Raj Punj and Another v. Commissioner of Central Goods and Service Tax De-

partment , Jaipur and Others

Pankaj Bhandari J.

Citation:[2019]63 GSTR 154(Raj) Bench/Court: In The Rajasthan High Court-Jaipur Bench

Goods and services tax — Offences and Prosecution — Wrongful Availment of Huge Input Tax Credit by Issue of

June 2019NEWSLETTER


Fictitious Sale Invoices — No Manufacture Carried out — Exit Passes Issued Even When Goods Not Received — Summons Issued To Managing Director cannot be Quashed — Determination of Tax Not Condition Prece-dent For Action Under Section 132 — Central Goods and Services Tax Act (12 of 2017), ss. 69, 70, 73, 74, 132.Goods and Services Tax — Offences and Prosecution — Offence by Company — Liability of Director — Wrongful Availment of Huge Input Tax Credit by Issue of Fictitious Sale Invoices — Person Director For More Than Six Years and Appointed as Managing Director— Cannot Contend That He Was Not Involved In Day to Day Affairs of Com-pany.

Statute: Value Added Tax Decision in favour of: Assessee

Title:CTO, Anti Evasion, Circle III, Rajasthan, Jaipur v.

Prasoon Enterprises

Abhay Manohar Sapre and Dinesh Maheshwari JJ

Citation: [2019] 63 GSTR 197 ( SC ) Bench/Court: In The Supreme Court Of India

Value Added Tax — Entries In Schedule — Mobile Crane Wire rope — Is Part of Mobile Cranes — Rajasthan Value Added Tax Act (4 of 2003), SCH IV, Entry 155, SCH.V.

Statute: Goods and Service Tax Decision in favour of: Directions

Title:Chellaperumal Vaikundasekar

v.Assistant State Tax Officer, Squad No. III, State GST

Department, Kerala And Others

Damaa Seshadri Naidu J.

Citation:[2019] 63 GSTR 204 (Ker) Bench/Court: In The Kerala High Court

Goods and Services Tax — Detention of Goods — Pe-titioner’s Goods and Vehicle Detained by Respondent- Authorities Alleging Misclassification in Tax Rate —Writ Petition — Direction to Release Goods and Vehicle on Petitioner Furnishing Bank Guarantee for Tax and Penalty and Bond for Value of Goods — Central Goods and Ser-vices Tax Rules, 2017, r. 140(1).

Statute: Service Tax Decision in favour of: Assessee

Title: Kandla Port Trust v. Commissioner Of Central Excise and ST, Rajkot

Ramesh Nair (Judicial Member) and Raju (Technical Member)

Citation:[2019] 63 GSTR 227 (CESTAT -Ahd) B e n c h /Court: Before The Customs, Excise and Service Tax Ap-pellate Tribunal - Ahmadabad

Service Tax-Port-Charges Paid for Using Facility of Road and Other Infrastructure Within Port Area - Not in Nature of Toll Charges.Service Tax- Port Services-Entry fees for Vehicles Carry-ing Goods or Persons for Vessels-Chargeable to Tax Un-

der Port Services -“In any Manner in Relation of Vessels or Goods”-Scope of-Finance Act (32 of 1994).Service Tax-Port-Sundry Handling- Demand of Tax Justi-fied.Service Tax-Port-Royalty for Containers and Income From Cargo Berth on Revenue Share Basis -Demand of Tax not Justified.Service Tax-Port - Renting of Immovable Property servic-es- Township Income Whether Taxable Under Renting of Immovable Property Services-Non-Speaking Order- Mat-ter Remanded.Service Tax - Cenvat Credit-Port - Telephones Installed at Residential Premises of Officers - Cenvat Credit Available.Service tax-Cenvat Credit -Port-Taxi and Bus Services Used For Movement of Employees-Cenvat Credit Availa-ble.

Statute: Central Sales Tax Decision in favour of: Assessee

Title: Phthalo Colours and Chemicals (India) Limited v. Union Of India

Akil Kureshi and Umesh Trivedi JJ.

Citation:[2019] 63 GSTR 11 (Guj) Bench/Court: In The Gujarat High Court

Central Sales Tax — Export Oriented Unit — Central Sales Tax On Purchases Made From Domestic Tariff Area Units Of Inputs Utilized For Manufacture Of Goods Sold In Local Market—Assessee Entitled To Reimbursement—Recov-ery Not Sustainable— Foreign Trade Policy 2004-2009.Export Oriented Unit—Duty Drawback On Purchase Of Furnace Oil From Dealers Or Distributors Of Domestic Oil Companies— Recovery On Ground That Oil Not Pur-chased From Depots Of Domestic Oil Companies, But From Their Dealers—Department Guilty Of Lashes—Re-covery Not Sustainable.

Statute: Value Added Tax Decision in favour of: Assessee

Title: Sahayak Samagri Prabandhak V. Commissioner, U. P., Commercial Tax, Lucknow

Rajan Roy J.

Citation:[2019] 63 GSTR 36 (A11) Bench/Court: In The Allahabad High Court

Value Added Tax-Deduction Of Tax At Source- Penalty - MENS REA - Government Department — Delay In De-posit Of TDS Collected From Payment Made In Relation To Works Contracts By Assistant Material Manager, Indian Railway Due To Officials Being Busy In Ensuing Inspec-tion And Shortage Of Staff—Penalty To Extent Of 200 Per Cent. Of TDS Imposed By Assessing Authority — Petition-er Depositing 25 Per Cent. Of Penalty Imposed And Inter-est AfterPassing Of Penalty Order— Appeal Before Additional Commissioner Rejected— Tribunal On Facts Reducing Penalty To 10 Per Cent. Of TDS Amount — Though MENS REA Not Prerequisite For Levy Of Penalty Matter Relates To Government Department — Further Not A Case Of Failure To make Deduction. But of Failure To Deposit TDS Timely —Order Of Tribunal Modified By Reducing Penalty

June 2019NEWSLETTER


To Five Per Cent. —Uttar Pradesh Value Added Tax Act (5 of 2008), s.34 (8),(9).Value Added Tax —Deduction of Tax At Source —Penalty _Interest –Two Separate Liabilities - Uttar Pradesh Value Added Tax Act (5 of 2008), s.34 (8),(9).

Statute: Goods and Service Tax Decision in favour of: Department

Title: ITD CEMENTATION INDIA LTD., In ReSydney

D’SILVA And PARTHASARATHI Dey (Members)

Citation:[2019] 63 GSTR 42 (AAR) Bench/Court :Before The Authority For Advanced Rul-ings,Goods And Services Tax West Bengal

Goods And Services Tax— Works Contract— Supply — Applicant Entering Into Agreement With Inland Waterways Authority Of India For Construction Of A Multi-Modal IWT Terminal At Haldia On EPC Basis — Is Supplying Works Contract Service For Original Work Meant For Commerce And Business—Attracts Goods And Services Tax At 18 Per Cent. Rate Under Serial No. 3(Xii) Or 11/2017-CT (Rate) Dated June 28, 2017— West Bengal Goods And Services Tax Act (28 Of 2017), S. 2(17)—Inland Waterways Author-ity Of India Act (82 Of 1985), Ss. 10, 13, Second Proviso, 14(1)(B), (K), 14(4), 19(1).

Statute: Sales Tax Decision in favour of: Assessee

Title: Brijda Roadlines Pvt. Ltd. V. Union Territory Of Daman And Diu And Others

S. C. Dharmadhikari And M. S. Karnik Jj.

Citation:[2019] 63 GSTR 49 (Bom) Bench/Court: In The Bombay High Court

Sales Tax — Central Sales Tax — Value Added Tax — Jurisdiction Of Authorities — Commissioner— Appeal To Appellate Tribunal— Second Appeal—Commissioner Has No Jurisdiction To Entertain— Administrative Tribunal Conferred Powers To Function As Appellate Tribunal For Purpose Of Sales Tax—To Hear Second Appeal— Central Sales Tax Act (74 Of 1956), ss. 10(D), 10a—Daman And Diu Value Added Tax Regulation, 2005, Reglns. 2(C), 66, 73, 74(1), 106— Goa, Daman And Diu Sales Tax Act (4 Of 1964)—Goa, Daman And Dui Administrative Tribunal Act (6 Of 1965)—General Clauses Act (10 Of 1897), S. 24.

Statute: Goods and Service Tax Decision in favour of: AssesseeTitle: Optival Health Solutions Private Limited And An-

other v. Union Of India And Others

Debangsu Basak J.

Citation:63 GSTR 107 (Cal) Bench/Court: In The Calcutta High Court

Goods And Services Tax-Transitional Provisions-Form GST TRAN 2-Rules Not Containing Provision For Re-vising Form Tran 2 -High Court—Form Tran 2 Merely An Admission As To Contents Of Document—Rules Cannot

Be Read As Precluding Revision Of Form— Direction To Department To Permit Assessee To Revise Form Tran 2 Manually Or Electronically—Central Goons And Services Tax Rules, 2017.Interpretation Of Taxing Statutes—Strict Construction — Not To Be Taken To Extent Of Mindless Mechanical Appli-cation Of Statute.

Statute: Goods and Service Tax Decision in favour of : Department

Title: Coastal Freez Tech And Sanitaries V.Goods Service Tax Council, New Delhi And Others

Dama Seshadri Narpu JCitation:[2019] 63 GSTR 308 (Ker) Bench/Court: In The Kerala High Court

Goods and Services Tax — Change of Law — Input Tax Credit — Petitioner Unable To Upload Form GST TRAN -1 Within Stipulated Time To Use Input Tax Available To His Credit At Time Of Migration To Goods And Services Tax Regime Due To System Error — Writ Petition — To Apply To Nodal Officer Who Would Look Into It And Facilitate Petitioner’s Uploading Form Without Reference to Time — Frame — Kerala State Goods And Services Tax Act (20 of 2017).

Statute: Goods and Service Tax Decision in favour of: AssesseeTitle: Timexo Fasteners India Private Ltd. And Another v.

State Of U. P. And Others

Dama Seshadri Narpu J

Citation:[2019] 63 GSTR 314 (All) Bench/Court: In The Allahabad High Court

Goods And Services Tax — Seizure Of Goods — Dispatch Of Goods From Delhi To Kanpur Along With E-Way Bill Valid Up To 12 P.M. Of November 10, 2018 — Vehicle And Goods Intercepted At Kanpur During Intervening Night Of November 10/11, 2018 And Seizure Order Passed On November 11, 2018 Solely On Ground That E-Way Bill Accompanying Goods Expired — Order Passed For De-posit Of Applicable Tax And Penalty For Interim Release Of Goods — Instructions Received From Assistant Com-missioner, Commercial Tax In-Charge MS-IX, Kanpur Not Countering Averments By Petitioner That Goods Entered Kanpur At 8 P.M. On November 10—Not Matching With Documents Produced By Assistant Commissioner Stat-ing That Vehicle Intercepted At 8:23 A.M. On November 11, 2018 At Jarib Chowki Kanpur— Seizure Of Goods Not Valid As E-Way Bill Allowed To Expire After Detention Of Goods By Incorrectly Recording Time Of Interception — Direction To Release Goods Along With Vehicle Forth-with— Uttar Pradesh Goods And Services Tax Act (1 Of 2017), S. 129(1), (3).

10

Two Day National Conference on GST

CPE Seminar on Audit under Companies Act

CA.Babu Abraham Kallivayalil, CCM, ICAI

CA.Rajendra Kumar PVice Chairman, IDTC, ICAI

CA. Jomon K GeorgeChairman, SIRC of ICAI

CA. Jomon K GeorgeChairman, SIRC of ICAI

CA. Ganesh Balakrishnan CA. Vinak V Pai

Shri Pullela Nageswara Rao, Chief Commissioner of Central Tax,

Central Excise & Customs

Adv. G.Shivadass,Bengaluru

CA. Ashok BatraNew Delhi

CA.Bimal JainNew Delhi

CA. Shaikh Abdul Samad Ahmad, Chennai

Published by CA.Sreenivasan P.R, Chairman, Ernakulam Branch of SIRC of ICAI , ‘ICAI Bhawan’,, Diwan’s Road, Ernakulam, kochi - 682016 Phone: 0484- 2362027. Email: [email protected]. Website: www.ernakulam-icai.org Editor: CA.Sreenivasan P.R, Chairman, Ernakulam Branch of SIRC of ICAI

Shri A.P. M. Mohammed Hanish, IAS, Managing Director, Kochi Metro Rail Ltd., inaugurating the seminar on “Audit under Companies Act 2013” or-ganized by the Ernakulam Branch of the Institute of Chartered Accountants of India. L to R : CA. Allen Joseph, CA. Deepa Varghese, CA. Vinayak Pai V, CA. Jomon K George, CA. Babu Abraham Kallivayalil, CA. Sreenivasan.P.R, , CA. Renjith R Warrier, CA. Roy Varghese are also seen.

Shri A.P. M. Mohammed Hanish, IAS, Managing Director, Kochi

Metro Rail Ltd.,

June 2019 ERNAKULAM BRANCH - kochiicai.org

Documents

Transcript of June 2019 ERNAKULAM BRANCH - kochiicai.org