NCLT (Allahabad Bench) : In Shobhnath vs. Prism Industrial Complex Ltd.*
*_Whether insolvency application can be entertained in a case where financial fraud exists? It was held that the benevolent scheme of IBC for a resolution of a company under distress is not meant for a case of financial fraud or irregularity._*
*_Read full case law at :_* https://dasgovernance.com/2018/08/16/nclt-allahabad-bench-in-shobhnath-vs-prism-industrial-complex-ltd/
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# *MEF*: ICAI invites PCAs to fill the Multipurpose Empanelment Form for the year 2018-19 at www.meficai.org by registering themselves in MEF 2018-19, even if registered in MEF in earlier year (s).
# *ICAI* sets up a Group to consider voting in any pooling booth in cities having multiple pooling booths in the forthcoming ICAI Election in December 2018.
# *GST*: Challenge to Advance Ruling - Classification of Skin care preparations - the 31 products discussed, supplied or intended to be supplied by the Appellant, are not to be classified under Chapter 30, but under Chapter 33 (Cosmetics) or Chapter 34 (Soaps) – AAAR, WB in Akansha Hair & Skin Care Herbal Pvt. Ltd. (2018 (8) TMI 772).
# *IBC*: Protecting the interests of home buyers in projects floated by Jaypee Infratech Ltd. - SC in exercise of powers under Article 142, applied the provisions of amendments in the IBC by the Ordinance with retrospective effect – Chitra Sharma & Ors Vs. UoI & Ors (2018 (8) TMI 661 - SC).
# *IT*: Scope of the person u/s 2(31) - Collection of Tax (TCS) on Tahbazari u/s 206C(1C) - Whether the term "Parking Lot", "Toll Plaza", "Mining and quarrying" include "Tahbazari" - Held No - No TCS liability – Apar Mukhya Adhikari Vs. ITO (2018 (8) TMI 728 - Allahabad HC).
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*👉🏻ICAI Election 2018 - Draft List of Voters as on 1.4.2018*
(The draft List of Voters contains the professional address of the voters, his membership number and serial number in the List of Voters, his/her eligibility of vote i.e. whether he/she is eligible to vote at polling booth or by post and the Polling Centre - http://220.225.242.179/draft_lov.asp)
👇🏻 👇🏻 👇🏻
https://goo.gl/M1N3r2
*👉🏻Lenders can sell assets of personal guarantors under IBC - SC*
(SC ruled that banks can sell off assets of personal guarantors even when corporate resolution proceedings are on against the corporate debtor under the Insolvency and Bankruptcy Code)
👇🏻 👇🏻 👇🏻
https://goo.gl/7uhUqU
*👉🏻Composition Scheme under GST*
(What is Composition Scheme under Goods and Service Tax - A Brief Analysis by CA Rubneet Anand.)
👇🏻 👇🏻 👇🏻
https://goo.gl/FyGQ8Y
*👉🏻SC upholds HC decision on Form C availability after GST*
(SC has upheld the decision of the Punjab and Haryana High Court that Form – ‘C’ should be made available to an assessee even after implementation of the GST)
👇🏻 👇🏻 👇🏻
https://goo.gl/iQdKxX
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GST Update on proceedings under Central Excise Act post implementation of GST regime
Even after one year of implementation of the revolutionary taxation reform, cases of Central Excise and Service Tax evasion are being reported. This update seeks to highlight the fact whether initiation of proceedings under the repealed Acts is within authority of law?
The starting point of this dispute was the decision pronounced by the Gauhati High Court in the case of MASCOT ENTRADE PVT. LTD. VERSUS UNION OF INDIA [2018 (9) G.S.T.L. 5 (GAU)] wherein it was concluded that after enactment of CGST Act, 2017, and omission of Entry 92C from List I of Constitution of India, issuance of show cause notice is without jurisdiction. Although the High Court granted interim relief by staying the proceedings initiated vide show cause notice and has adjourned the case but this decision is the triggering point for initiating litigation as regards proceedings under Central Excise and Service Tax Laws in the GST era.
It is also pertinent to mention that recently, the Hon’ble Rajasthan High Court in D.B. Writ Petition No. 2031/2018 has directed the Central Government to hold inquiry and take action against officers of DGGSTI for conducting vexatious search under Central Excise Act. The High Court has also passed an order not to take any coercive measure and observed that after introduction of GST, the officers appointed under section 3 and 5 of the CGST Act have no power to take action against the Central Excise Act, 1944. It was held that the proceedings were without jurisdiction and without authority of law and the matter is posted for hearing in September, 2018.
After observing the above mentioned decisions, the moot question that arises is whether the officers of GST are authorised to initiate proceedings under the repealed Acts after implementation of GST? In this regard, reference may be made to the provisions contained in section 174 of the CGST Act, 2017 which reads as follows:-
174. (1) Save as otherwise provided in this Act, on and from the date of commencement of this Act, the Central Excise Act, 1944 (except as respects goods included in entry 84 of the Union List of the Seventh Schedule to the Constitution), the Medicinal and Toilet Preparations (Excise Duties) Act, 1955, the Additional Duties of Excise (Goods of Special Importance) Act, 1957, the Additional Duties of Excise (Textiles and Textile Articles) Act, 1978, and the Central Excise Tariff Act, 1985 (hereafter referred to as the repealed Acts) are hereby repealed.
(2) The repeal of the said Acts and the amendment of the Finance Act, 1994 (hereafter referred to as “such amendment” or “amended Act”, as the case may be) to the extent mentioned in the sub-section (1) or section 173 shall not—
(a) revive anything not in force or existing at the time of such amendment or repeal; or
(b) affect the previous operation of the amended Act or repealed Acts and orders or anything duly done or suffered thereunder; or
(c) affect any right, privilege, obligation, or liability acquired, accrued or incurred under the amended Act or repealed Acts or orders under such repealed or amended Acts:
Provided that any tax exemption granted as an incentive against investment through a notification shall not continue as privilege if the said notification is rescinded on or after the appointed day; or
(d) affect any duty, tax, surcharge, fine, penalty, interest as are due or may become due or any forfeiture or punishment incurred or inflicted in respect of any offence or violation committed against the provisions of the amended Act or repealed Acts; or
(e) affect any investigation, inquiry, verification (including scrutiny and audit), assessment proceedings, adjudication and any other legal proceedings or recovery of arrears or remedy in respect of any such duty, tax, surcharge, penalty, fine, interest, right, privilege, obligation, liability, forfeiture or punishment, as aforesaid, and any such investigation, inquiry, verification (including scrutiny and audit), assessment proceedings, adjudication and other legal proceedings or recovery of arrears or remedy may be instituted, continued or enforced, and any such tax, surcharge, penalty, fine, interest, forfeiture or punishment may be levied or imposed as if these Acts had not been so amended or repealed;
(f) affect any proceedings including that relating to an appeal, review or reference, instituted before on, or after the appointed day under the said amended Act or repealed Acts and such proceedings shall be continued under the said amended Act or repealed Acts as if this Act had not come into force and the said Acts had not been amended or repealed.
The above produced provisions indicate that there is no embargo in conclusion of proceedings with respect to tax liability pertaining to repealed Acts. However, the decisions of various High Courts are taking a different view which is favourable to the assessees and binding on all lower formation. Well, the decisions referred are not final and the actual legal position will be known in the days to come. In light of the above cited decisions, one may also conclude that if search and investigation cannot be done with respect to repealed Acts in the GST regime, even audits cannot be done by the said GST officers.
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Bombay High Court ordered the CBDT to provide clarity on the issue of STT levy on physically-settled derivatives. The court on heard an appeal filed by Anmi against the NSE after the bourse decided to levy the STT at 0.1% on derivative contracts of stocks that are physically settled.
Salary for services provided by the head office of a company to its branch offices in other states will attract 18% GST. According to an order passed by the Karnataka bench of the Authority for Advance Ruling (AAR), the activities between two offices is treated as supplies under the GST law.
SEBI may soon ask retail investors in the stock and commodity markets to submit a net worth certificate to their brokers. The aim is to keep a check on retail investors' trading limits, which cannot exceed their level of income.
RBI may not do much to stabilise the rupee as a fall in the currency is due to global factors. The rupee was still performing better than some other currencies, and that the country had sufficient foreign exchange reserves.
From now on, it has been made mandatory for private companies to disclose in their annual report if they have complied with all the provisions of the Sexual Harassment of Women at Workplace Act such as setting up internal complaints committee (ICC).
The last date for submission of online MEF Form for the year 2018-19 is 21st August, 2018 and Declaration is to be submitted within 10 days of the filling of MEF but not later than 30th August, 2018.
