Recent rulings by Indian courts have affirmed that secured creditors have priority over government tax claims during insolvency proceedings, underlining the significance of the Insolvency and Bankruptcy Code (IBC), 2016. Key judgments, including from the Bombay and Madras High Courts, have consistently supported the principle that secured creditors' rights, as enshrined in Section 31B of the IBC and Section 26E of the SARFAESI Act, take precedence over state claims for taxes such as sales tax...

Recent rulings by Indian courts have affirmed that secured creditors have priority over government tax claims during insolvency proceedings, underlining the significance of the Insolvency and Bankruptcy Code (IBC), 2016. Key judgments, including from the Bombay and Madras High Courts, have consistently supported the principle that secured creditors' rights, as enshrined in Section 31B of the IBC and Section 26E of the SARFAESI Act, take precedence over state claims for taxes such as sales tax...

The Delhi High Court quashed two GST orders issued under Section 73 of the GST Act due to an issue with the portal's notification system. The court ruled that at the time of the Show Cause Notice (SCN) issuance, the 'Additional Notices and Orders' tab was not prominently placed on the GST portal, preventing taxpayers from easily accessing important notifications. This decision came in a case involving a demand of ₹2 crore. The court granted the petitioner two weeks to file a response to the S...

The Delhi High Court quashed two GST orders issued under Section 73 of the GST Act due to an issue with the portal's notification system. The court ruled that at the time of the Show Cause Notice (SCN) issuance, the 'Additional Notices and Orders' tab was not prominently placed on the GST portal, preventing taxpayers from easily accessing important notifications. This decision came in a case involving a demand of ₹2 crore. The court granted the petitioner two weeks to file a response to the S...

The Madhya Pradesh High Court, Indore Bench, ruled that the Goods and Service Tax Act (GST Act) overrides the Indian Penal Code (IPC) and that the GST department cannot delegate search and seizure operations to local police. The bench, led by Justices Sushrut Arvind Dharmadhikari and Duppala Venkata Ramana, held that GST authorities must follow the procedures outlined in the GST Act when initiating prosecutions. They cannot bypass these procedures by invoking IPC provisions without prior sanc...

The Madhya Pradesh High Court, Indore Bench, ruled that the Goods and Service Tax Act (GST Act) overrides the Indian Penal Code (IPC) and that the GST department cannot delegate search and seizure operations to local police. The bench, led by Justices Sushrut Arvind Dharmadhikari and Duppala Venkata Ramana, held that GST authorities must follow the procedures outlined in the GST Act when initiating prosecutions. They cannot bypass these procedures by invoking IPC provisions without prior sanc...

The Madras High Court has condoned the delay in filing an income tax appeal by a religious institution, imposing a condition of depositing Rs. 1,000 to the Advocate Clerks Welfare Association. The delay was due to the petitioner's unfamiliarity with tax proceedings and belief in their income exemption under Section 10(23BBA) of the Income Tax Act. The court directed the appellate authority to hear the case on its merits without further limitation objections. Read More: https://jurishour.in/de...

The Madras High Court has condoned the delay in filing an income tax appeal by a religious institution, imposing a condition of depositing Rs. 1,000 to the Advocate Clerks Welfare Association. The delay was due to the petitioner's unfamiliarity with tax proceedings and belief in their income exemption under Section 10(23BBA) of the Income Tax Act. The court directed the appellate authority to hear the case on its merits without further limitation objections. Read More: https://jurishour.in/de...

The Madras High Court has stayed the removal of general insurance services from the list of input services under Special Economic Zones (SEZ), ruling that the Development Commissioner only has the authority to expand, not curtail, the list. The petitioner, Zoho Corporation, challenged Instruction No.1/2024 that removed general insurance services from the default input list. The court observed that this action violated Instruction No.79, which allows the Development Commissioner to add service...

The Madras High Court has stayed the removal of general insurance services from the list of input services under Special Economic Zones (SEZ), ruling that the Development Commissioner only has the authority to expand, not curtail, the list. The petitioner, Zoho Corporation, challenged Instruction No.1/2024 that removed general insurance services from the default input list. The court observed that this action violated Instruction No.79, which allows the Development Commissioner to add service...

The Delhi Bench of CESTAT has ruled that the purchase and sale of allotment rights for flats do not fall under the definition of "Real Estate Agent Services," thus no service tax is payable on such transactions. In a case involving M/s. Government Official Welfare Organisation, the tribunal dismissed the department's appeal, stating that the organization acted in its own capacity rather than as an intermediary or agent. The department had argued that the respondent facilitated transactions be...

The Delhi Bench of CESTAT has ruled that the purchase and sale of allotment rights for flats do not fall under the definition of "Real Estate Agent Services," thus no service tax is payable on such transactions. In a case involving M/s. Government Official Welfare Organisation, the tribunal dismissed the department's appeal, stating that the organization acted in its own capacity rather than as an intermediary or agent. The department had argued that the respondent facilitated transactions be...

The Gauhati High Court has ruled that while the posts of Assistant Excise Inspectors are transferable, frequent transfers without valid public interest cannot be justified. The court set aside the recent transfer orders involving three excise inspectors, stating that such actions can disrupt the morale of government employees and lack adequate justification. This ruling reinforces the importance of fair administrative practices in public service. Read More: https://jurishour.in/assistant-exci...

The Gauhati High Court has ruled that while the posts of Assistant Excise Inspectors are transferable, frequent transfers without valid public interest cannot be justified. The court set aside the recent transfer orders involving three excise inspectors, stating that such actions can disrupt the morale of government employees and lack adequate justification. This ruling reinforces the importance of fair administrative practices in public service. Read More: https://jurishour.in/assistant-exci...

The Central Board of Direct Taxes (CBDT) has announced that the Direct Tax Vivad Se Vishwas Scheme, 2024, will be effective from October 1, 2024. This scheme aims to resolve tax disputes by offering a structured process for settling tax arrears. Under the scheme, taxpayers can clear disputed taxes, interest, and penalties with reduced financial implications if they settle before December 31, 2024. Delayed payments beyond this date will incur additional charges. The scheme includes provisions ...

The Central Board of Direct Taxes (CBDT) has announced that the Direct Tax Vivad Se Vishwas Scheme, 2024, will be effective from October 1, 2024. This scheme aims to resolve tax disputes by offering a structured process for settling tax arrears. Under the scheme, taxpayers can clear disputed taxes, interest, and penalties with reduced financial implications if they settle before December 31, 2024. Delayed payments beyond this date will incur additional charges. The scheme includes provisions ...

The Karnataka High Court has ruled that the GST department cannot issue a single, consolidated show cause notice (SCN) for multiple assessment years. The court, led by Justice Sachin Shankar Magadum, held that the practice violates Section 73(10) of the Central Goods and Service Tax (CGST) Act, 2017, which mandates specific actions to be taken within a particular assessment year. The petitioner, Bangalore Golf Club, argued that the GST department's consolidation of tax periods from 2019 to 20...

The Karnataka High Court has ruled that the GST department cannot issue a single, consolidated show cause notice (SCN) for multiple assessment years. The court, led by Justice Sachin Shankar Magadum, held that the practice violates Section 73(10) of the Central Goods and Service Tax (CGST) Act, 2017, which mandates specific actions to be taken within a particular assessment year. The petitioner, Bangalore Golf Club, argued that the GST department's consolidation of tax periods from 2019 to 20...