Life Insurance Claim Wrongly Denied - Onus on Insurer to Prove Non-Disclosure.

Insurance claim repudiation is governed by Section 45 of the Insurance Act, 1938, barring questioning of policies after a stipulated period unless proven by the insurer. The burden rests on the insurer to establish materiality of suppressed facts and insured's knowledge for justifying repudiation. Insurance contracts demand utmost good faith (uberrimae fidei), requiring disclosure of previous policies. Materiality depends on whether prudent insurers would be affected in risk assessment or premium fixation. The insurer failed to provide documentary evidence proving the deceased insured possessed multiple undisclosed policies from other companies. Consequently, the repudiation was held unjustified, and the insurer was directed to pay the claim amounts with interest.

Source:
https://www.taxmanagementindia.com/web/tmi_highlights_details.asp?id=82757

#InsuranceDispute #ContractLaw #GoodFaith #Disclosure #ClaimSettlement - Indian Laws

Utility companies' ancillary services under scrutiny for tax exemption eligibility.

Dispute centered on whether exemption granted for transmission or distribution of electricity extends to ancillary services offered by utility companies. Court ordered stay on penalty proceedings until Supreme Court delivers judgment on exemption applicability to ancillary services. If ruled against assessee, penalty imposition to be independently evaluated based on governing principles. Petitions disposed, maintaining status quo on payments and penalty proceedings pending Supreme Court's final decision.

Source:
https://www.taxmanagementindia.com/web/tmi_highlights_details.asp?id=82754

#TaxDispute #UtilityServices #EnergyLaw #CourtOrder #PendingJudgment #TaxExemption - GST

Lack of reasoning in court order violates principles of natural justice.

The main order rejecting condonation of delay lacks reasons, violating principles of natural justice. It is a well-settled legal position that an affidavit-in-reply cannot supplement the main order under challenge by assigning reasons when the main order itself does not contain any reasons. The Supreme Court has emphasized the need for courts, quasi-judicial, or administrative authorities to provide reasons for their orders to enable higher forums or courts to consider such reasons when the order is challenged. The impugned order dated 12.06.2023, devoid of any reasoning, is liable to be quashed and set aside. Consequently, the matter is remanded back to the respondent to pass a fresh order with detailed reasons in accordance with the law.

Source:
https://www.taxmanagementindia.com/web/tmi_highlights_details.asp?id=82759

#JudicialTransparency #DueProcess #FairHearing #ReasonedjudgmentsMatter #RuleOfLaw - GST

Free supply of machine for committed purchase of materials

A customer purchased a machinery as per an agreement as given below Cost Rs. 29,58,000 paid GST Rs. 5,32,440/- and claimed input tax. The output of machinery is fully taxable. After signing agreement the Company gave four commercial credit notes for a total amount of Rs. 29,58,000/- thus effectively making the machinery free of cost. No GST charged or reversed on credit notes issued by supplier. Now the company is buying minimum committed raw materials from the supplier of machinery by paying a... ... ...

Source:
https://www.taxmanagementindia.com/web/View_discussions_detail.asp?ID=119379 - GST

Vivad se Vishwas Scheme 2024

Can the TDS reflected in Form 26AS be adjusted against the tax payable under the Vivad Se Vishwas Scheme (VSVS) 2024 if the taxpayer has not filed a return and the assessment order under Section 147 has been appealed before the CIT(A)? It is observed that the VSVS form includes fields only for tax payment details (such as challan number and BSR code) but lacks a specific field for TDS credit, raising questions about the eligibility of TDS adjustments in this scenario. Could anyone please clarif... ... ...

Source:
https://www.taxmanagementindia.com/web/View_discussions_detail.asp?ID=119376 - Income Tax

GST ON OFFICE

Dear Expert Our Client Entered in to the Agreement in the Month of March-2024 which was duly Registered and O C Received in the Month of Sept-2024. Builder has now raised GST Demand.... is it Correct ? Please Guide - Reply By Sadanand Bulbule - The Reply = Dear Nilesh Was the agreement in March 2024 entered for purchase of office, when there was no OC? The date of sale agreement is crucial here as regards to the applicability of GST. Be specific on facts. - Reply By Shilpi Jain - The Reply = At... ... ...

Source:
https://www.taxmanagementindia.com/web/View_discussions_detail.asp?ID=119366 - GST

Classification of cylinder

Whether cylinder manufactured is said to be part and accessories of car or will it fall under specific heading 7311 . I seek experts opinion on the same. - Reply By Sadanand Bulbule - The Reply = Dear Sir It falls under specific entry 7311 : 7311 CONTAINERS FOR COMPRESSED OR LIQUEFIED GAS, OF IRON OR STEEL However specific cylinder manufactured to be part of car falls under HSN 8408 . Plz double check your product and its functionality. - Reply By Sadanand Bulbule - The Reply = Plz refer HSN Ch... ... ...

Source:
https://www.taxmanagementindia.com/web/View_discussions_detail.asp?ID=119381 - GST

Government e Marketplace (GeM) launches 170 Seed Categories on the portal

- - - Dated:- 4-11-2024 - On a mission to simplify access to quality agricultural horticulture seeds, Government e Marketplace (GeM) has revamped introduced 170 Seed categories on the portal. Created ahead of the upcoming cropping season, the newly populated categories feature nearly 8,000 seed varieties that can be procured by Central/State PSUs and other governing bodies for further dissemination across the country. Created after consultation with stakeholders including state seed corporation... ... ...

Source:
https://www.taxmanagementindia.com/visitor/detail_rss_feed.asp?ID=28066

FY 2018-2019 GST dues paid with current year 2024-2025 ITC

Sir/Madam, GST Order was issued under section 73 for the year 2018-2019 for mismatch of ITC and I have accepted paid the tax portion using financial year 2024-2025 ITC and will be applying for waiver of Interest and penalty under Amnesty Scheme 2024. Is there any restriction for utilizing current year ITC for past dues. I do not have carry forward of Excess ITC from 2018-2019 till 2023-2024. Please advise. - Reply By Ganeshan Kalyani - The Reply = In my view, there is no one-tow-one correlation... ... ...

Source:
https://www.taxmanagementindia.com/web/View_discussions_detail.asp?ID=119367 - GST

assessment order

I got an show cause notice on 28.12.2023 u/s 73(1) , had many personal hearing on that and on 30.042024 we get an original order and, on that we filed an appeal on 27.08.2024, the very next day we get an additional order. on original order assessment officer had mistakenly left off to add Flood cess On original order. and now on additional order is under sec 74 without any SCN, or hearing. advise. - Reply By KASTURI SETHI - The Reply = Without SCN and without P.H. such additional Adjudication O... ... ...

Source:
https://www.taxmanagementindia.com/web/View_discussions_detail.asp?ID=119383 - GST

Samples to Customers

Hello experts, My industry is a fashion industry. We make products and send one sample to our distributors for them to see the product and give us orders. The sample sent to distributors are considered as supply? Do i have to raise GST invoice. Please help to clarify. - Reply By Sadanand Bulbule - The Reply = Dear querist Please refer the comprehensive clarification issued under CBIC Circular No. 92/11/2019-GST dated 07/03/2019 for more details. - Reply By DR.MARIAPPAN GOVINDARAJAN - The Reply ... ... ...

Source:
https://www.taxmanagementindia.com/web/View_discussions_detail.asp?ID=119330 - GST

Cross examination of persons whose statements relied upon by the department

How to reject the plea of the Noticees for cross examination of the witnesses/ persons whose statements relied upon by the department. Relevant judgements to support the denial of cross examination by the Adjudication Authority. - Reply By KASTURI SETHI - The Reply = Dear Sir, Pl. let me know the issue in brief. However, one case law is posted here. KIN-SHIP SERVICES (INDIA) PVT. LTD. Versus UNION OF INDIA - 2020 (3) TMI 378 - KARNATAKA HIGH COURT - Reply By KASTURI SETHI - The Reply = PARAGON ... ... ...

Source:
https://www.taxmanagementindia.com/web/View_discussions_detail.asp?ID=119382 - GST

GST applicable on Car facility extended to employees when the amount of car lease incurred by the company is recovered from employees

The AAAR, Tamil Nadu in the case of IN RE: M/S. FAIVELEY TRANSPORT RAIL TECHNOLOGIES INDIA PRIVATE LIMITED - 2024 (7) TMI 1239 - APPELLATE AUTHORITY FOR ADVANCE RULING, TAMILNADU upheld the ruling passed by AAR Tamil Nadu wherein it was ruled that GST would be applicable on Car facility extended to employees when the amount of car lease incurred by the company is recovered from employees as the said transaction would not be covered under Entry 1 of Schedule III of Central Goods and Services Tax... ... ...

Source:
https://www.taxmanagementindia.com/visitor/detail_article.asp?ArticleID=13078 - Goods and Services Tax - GST

Penalties for Non-Compliance with Section 206C of the Income Tax Act: Avoiding Common Pitfalls  

Introduction to Section 206C of the Income Tax Act Section 206C of the Income Tax Act requires sellers to acquire Tax Collected at Source (TCS) on detailed items, including alcohol, timber, minerals, and certain excessive-fee transactions. Complying with this phase is vital to avoid penalties and make certain clean business operations. Understanding Penalties for Non-Compliance Non-compliance with Section 206C of the Income Tax Act can lead to large consequences, including interest expenses, pa... ... ...

Source:
https://www.taxmanagementindia.com/visitor/detail_article.asp?ArticleID=13079 - Income Tax

NEW GST AMNESTY SCHEME

The recent insertion of Section 128A in the CGST Act , seeking to provide relief by way of waiving interest and penalty in cases of pending disputes has definitely caught every taxpayer s attention. To align with the recommendations made during the council meeting, a detailed Circular [1] has been issued clarifying certain doubts with regard to the eligibility under the scheme. Although special care seems to have been taken in addressing the probable issues, there are some concerns which requir... ... ...

Source:
https://www.taxmanagementindia.com/visitor/detail_article.asp?ArticleID=13080 - Goods and Services Tax - GST

Tax deduction at source(TDS) under GST - Inter State supply

Section 51 of the Central Goods and Services Tax Act, 2017 ( Act ) is the provision relating to Tax deduction at Source ( TDS ) under GST, as per which certain recipients ( customer ), as mentioned in the said provision and also notified vide various notifications, are required to deduct 1 % from payment made or credited to supplier of taxable goods or services and remit to the Government exchequer. This provision has come into force w.e.f. 01-10-2018 [1] . However, there is a confusion in the ... ... ...

Source:
https://www.taxmanagementindia.com/visitor/detail_article.asp?ArticleID=13081 - Goods and Services Tax - GST

Account freeze leading to cheque dishonor constitutes offense u/s 138.

Dishonor of cheque due to account freeze falls within the purview of Section 138 of the Negotiable Instruments Act. The test is whether the account had insufficient funds or exceeded the arranged limit, regardless of the drawer's knowledge about the account freeze. If a cheque is issued from a frozen account with the intention to cheat, it attracts Section 138. In this case, on the cheque date, the account lacked sufficient funds, satisfying the first contingency u/s 138. Despite the statutory notice, the petitioner company disputed the liability and did not pay the cheque amount. The court dismissed the petition, ruling that a bank freezing the account can initiate a complaint for cheque dishonor due to account freeze, subject to considering the circumstances surrounding the issuance of the cheque to the complainant bank.

Source:
https://www.taxmanagementindia.com/web/tmi_highlights_details.asp?id=82769

#LegalBattle #FinancialDispute #AccountFreezeConsequences #NegotiableInstrumentsAct - Indian Laws

Cheque dishonor case: High Court upholds summoning order, framing notice u/s 138.

The High Court examined the validity of the summoning order and framing of notice u/s 138 of the Negotiable Instruments Act, 1881, in a dishonor of cheque case. It reiterated that the High Court's inherent powers u/s 482 of the CrPC (now Section 528 of the Bharatiya Nagarik Suraksha Sanhita, 2023) should be exercised sparingly and with caution, without unnecessary interference unless there is material irregularity or illegality. Section 138 provides a quasi-criminal remedy for dishonor of cheques, and summons may be quashed if the complaint lacks evidence of an offence. The High Court cannot examine disputed facts u/s 482 when the complainant contests the plea. Summons can be issued only when a prima facie case is made out based on document.....

Source:
https://www.taxmanagementindia.com/web/tmi_highlights_details.asp?id=82770

#NegotiableInstruments #CriminalProcedure #QuasiCriminalRemedy #PrimaFacieCase #ProceduralHardship - Indian Laws

Presumption of Consideration in Promissory Note Case Upheld.

Plaintiff filed suit for recovery of money. Defendant failed to rebut presumption u/s 118 of Negotiable Instruments Act by not proving lack of consideration through account books, bank statements, or tax returns. Courts analyzed evidence, found promissory note sufficient to prove consideration, and burden shifted to defendant to probabilize case. Supreme Court held Section 118 enables presumption of consideration, onus on maker to prove failure. Defendant's witnesses claimed misuse by plaintiff's agent, but no proof of collusion or loan repayment. Plaintiff's evidence supported by promissory note and legal notice. Courts rightly presumed consideration u/s 118(a). Judgments and decrees of lower courts confirmed, second appeal dismissed.

Source:
https://www.taxmanagementindia.com/web/tmi_highlights_details.asp?id=82771

#NegotiableInstrumentsAct #LegalBurdenOfProof #Evidence #PromissoryNote #AppealDismissed - Indian Laws

Challenge to arbitral award and conditional stay by statutory body: Court upholds equal treatment principle.

The Supreme Court examined a challenge u/s 34 of the Arbitration and Conciliation Act, 1996 against an arbitral award and the grant of conditional stay on its execution. The High Court had directed the respondent, a statutory undertaking, to furnish a bank guarantee only for the principal amount awarded, excluding interest and costs, reasoning that the respondent was not a "fly-by operator." The Supreme Court held that the Arbitration Act does not distinguish between governmental and private entities, and the High Court erred in basing its decision on the respondent's status as a statutory authority. The Court modified the High Court's order, directing the respondent to deposit 75% of the decretal amount, inclusive of interest, by a specifi.....

Source:
https://www.taxmanagementindia.com/web/tmi_highlights_details.asp?id=82772

#ArbitrationLaw #EqualTreatment #StatutoryBody #JudicialReview #ArbitralAward - Indian Laws

Taxability of panel boards integrated with submersible pumps sold as kits resolved.

The case pertains to the taxability of panel boards purchased by a manufacturer of submersible pumps. The issue was whether panel boards purchased against Form XVII declarations should be taxed separately at a higher rate or as part of an integrated unit with submersible pumps. The court held that since the assessing authority accepted the nature of the final product supplied as an integrated set comprising both the submersible pump and panel board, it is difficult to treat the two items as separate products liable to different tax rates. The court distinguished the present case from the Northwest Switchgear Ltd case, where fan regulators were sold as independent products, and hence classified as parts/accessories attracting higher duty. In.....

Source:
https://www.taxmanagementindia.com/web/tmi_highlights_details.asp?id=82773

#TaxDispute #IntegratedProducts #ManufacturingIndustry #JudicialClarity #FairTaxation - VAT / Sales Tax