EWayBill Now you can directly import invoices declared in E-Way Bill system into form GSTR-1
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GST: Company Director, Accountant arrested for Evasion
The Goods and Services Tax ( GST ) department has arrested a Company Director and its accountant for evading Rs 40 crore in Bhiwadi industrial area of Alwar district in Rajasthan.
The raids were carried out at the factory after the Commissioner received complaints about tax evasion. The officials, however, had not expected embezzlement to such an extent and decided to take strict action against the company, sources said. A director and an accountant were arrested for GST theft.
According to reports, the raids were carried out at LEEL Elections Limited in Bhiwadi. After the officials allegedly detected a GST evasion of nearly Rs 40 crore, the director – identified as Mukut Bihari Sharma and accountant Soban Singh Bhandari was arrested.
They were brought to Jaipur and produced in a court here. The court remanded them in judicial custody. The company manufactures heat exchangers.
Earlier in June 2017, Central Excise Commissionerate had arrested a businessman for alleged tax evasion of Rs 21 crore in Bhiwadi. The company had claimed in tax documents that it was selling metal bricks, but during a physical inspection of the factory by central excise officials, no such material was found.
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SUPREME COURT : In Rajasthan Small Industries Corporation Ltd. vs. M/s Ganesh Containers Movers Syndicate
Whether section 12 of the Arbitration and Conciliation (Amendment) Act, 2015 be retrospective whereby the employee of one of the party becomes ineligible to act as an Arbitrator? It was held that, as per Section 26 of the Amended Act, the provisions of the Amended Act shall not apply to the arbitral proceedings commenced in accordance with the provisions of Section 21 of the Principal Act, before the commencement of this Amended Act unless the parties otherwise agree.
Read full case law at : https://dasgovernance.com/2019/01/25/supreme-court-in-rajasthan-small-industries-corporation-ltd-vs-m-s-ganesh-containers-movers-syndicate/
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# UNION BUDGET: CA Piyush Goyal has been made Interim Finance Minister, may present a full Budget on 1st Feb 2019.
# ICAI makes UDIN mandatory for all Certificates issued w.e.f. 1 FEB 2019. Practicing CAs can register them-selves by visiting at https://udin.icai.org/.
# ICAI issues Revised Procedure for providing inspection / certified copies of evaluated answer-books to the concerned examinees.
# GST: CENVAT Credit - fake invoices - the penalty is not imposable on a juristic person (a company) u/R 26 of the Central Excise Rules, 2002 – CCE, Rohtak & Delhi Vs Novice Polymers, Airvision India Pvt Ltd. (2019 (1) TMI 1159 - CESTAT Chd.).
# IT: AO accepted the surrendered amount as Misc. Income as declared by the assessee in the return of income filed u/s 153A and levied the tax on it accordingly - No penalty u/s 271AAA – Rajendra Aggarwal Vs DCIT, CC (2019 (1) TMI 1208 – ITAT Delhi).
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ANALYSIS OF THE JUDGMENT OF THE HON’BLE SUPREME COURT IN THE CHALLENGE TO THE CONSTITUTIONAL VALIDITY OF INSOLVENCY AND BANKRUPTCY CODE, 2016
1. NCLAT Bench only at Delhi- The Ld. Attorney General assured the Court that the judgment in the matter of Madras Bar Association will be followed and circuit benches will be established soon. The court directed the Union of India to set up circuit benches of the NCLAT within a period of 6 months from today.
2. Tribunals are functioning under wrong Ministry - The Supreme Court observed that as per the Constitution Bench judgment in the matter of Madras Bar Association, “the administrative support for all tribunals should be from the Ministry of Law & Justice”.
3. Classification between Financial Creditor and Operational Creditor neither discriminatory, nor arbitrary, nor violative of Article 14 of the Constitution of India-Supreme Court has observed that the Financial Creditor are from very beginning involved with assessing the viability of the Corporate Debtor. They can engage in restructuring of the loan as well as reorganization of the Corporate Debtor’s business when there is financial stress which are things Operational Creditors do not and cannot do.
4. Operational Creditors have no vote in Committee of Creditors- The Supreme Court observed that the since the Financial Creditors are in the business of money lending, they are best equipped to asses viability and feasibility for the business of the Corporate Debtor since they have trained employees to assess the viability and feasibility they are in good position to evaluate the contents of a Resolution Plan on the other hand, Operational Creditors who provide goods and services are involved only in recovery of amounts that are paid for such goods and are typically unable to assess the viability and feasibility of business.
5. Section 12(A) is not violative of Article 14- The Supreme Court has clarified that where Committee of Creditors is yet not constituted, a party can approach the NCLT directly and the NCLT may can exercise its power under Rule 11 of the NCLT Rules and allow or disallow an application for withdrawal of settlement after hearing the concerned parties and considering relevant factors of the case.
6. Resolution Professional has no adjudicatory powers- It has been held that the regulations clearly show that the Resolution Professional is given administrative as opposed to quasi judicial powers.
7. Exemption of mirco, small and medium enterprises from Section 29A - The rationale for excluding such industries from the eligibility criteria laid down in Section 29A(c) and 29A(h) is because qua such industries, other Resolution Applicants may not be forthcoming, which then will inevitably lead not to resolution but liquidation.
8. Section 53 of the Code does not violate Article 14 - The Supreme Court observed that the repayment of financial debts infused capital into the economy with the money that has been paid back so that the Banks can further lend such money to other entrepreneurs for their business. This rationale creates an intelligible differentia between financial debts and operational debts which are unsecured. In any case, the workmen dues which are also unsecured debts have been placed above most of other debts. Thus, Article 14 does not get infracted and the challenge to Section 53 fails.
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Circular No. 80/54 /2018-GST
Dated 31st December, 2018
Issue
Applicability of GST on supply of Liquefied Petroleum Gas for Domestic Use.
Clarification
It is being clarified that LPG supplied in bulk, whether by a refiner/fractionator to an OMC or by one OMC to another for bottling and further supply for domestic use will fall under the S. No. 165A of the notification No. 1/2017- Central Tax (Rate) dated 28.06.2017 and shall, accordingly, attract a GST
rate of 5%, with effect from 25.1.2018.
