-Authorisation U/Sec 67 would be in respect of business premises of an assessee and cannot be in respect of each and every person and each and every article, goods, books, and documents which may be discovered during search operation.
-Tax collected but paid after notice U/Sec 73(1), although within 30 days of the notice will attract 10% penalty by virtue of Section 73(11)
-Taxability of Coaching Fees collected from students by an educational Institution to be examined considering Circular dated 3-8-2022 which states that all services supplied by “educational institution” to its students were exempt from GST in first sentence of paragraph 4.3
S.No | Subject | Case | Held |
1 | Authorisation U/Sec 67 would be in respect of business premises of an assessee and cannot be in respect of each and every person and each and every article, goods, books, and documents which may be discovered during search operation. | Velayudhan Gold LLP v. Intelligence Officer [2023] 156 taxmann.com 21 (Kerala) (20-10-2023) | Search was conducted at the business premises of M/s Sobhana Jewellery. During the search, it was seen that some gold ornaments were kept in a bag of employees of petitioner (i.e. Velayudhan Gold LLP) who were present during the search at the business premises of M/s Sobhana Jewellery. The gold ornaments were found to be accompanied by a delivery challan issued by the petitioner (i.e. Velayudhan Gold LLP) endorsing 22kt gold ornaments with net weight of 1332.590 gms in the name of M/s Sobhana Jewellery. It was issued for transportation of ornaments from the petitioner (i.e. Velayudhan Gold LLP) to M/s Sobhana Jewellery. The net weight of the gold ornaments on verification was found to be 1647.97 grams. Discrepancies were found between documents and actual stock in bag. As a result, gold ornaments found in bag were seized, and seizure memo was prepared. Petitioner contended there was no authorisation in respect of jewellery items of petitioner (i.e. Velayudhan Gold LLP), which were seized from premises of M/s Sobhana Jewellery. |
2 | Tax collected but paid after notice U/Sec 73(1), although within 30 days of the notice will attract 10% penalty by virtue of Section 73(11) | Global Plasto Wares v. Assistant State Tax Officer [2023] 156 taxmann.com 7 (Kerala) (17-10-2023) | Petition was filed against the penalty in the impugned order to the extent of Rs. 40,000/- . Petitioner contended that he had paid all tax before thirty days from the date of the notice. The notice was dated 28-2-2022 and petitioner had paid the tax on 10-3-2022. Petitioner relied upon Section 73(8). Department contended that Section 73(8) comes into play when an assessee has not paid the tax on the transactions. But where assessee had collected tax from the others and not credited it to the Government then Section 73(11) will come into play as Section 73(11) of the GST Act, 2017 begins with a non-obstante clause i.e. ; "notwithstanding anything contained in sub-section (6) or sub-section (8), penalty under sub-section (9) shall be payable where any amount of self-assessed tax or any amount collected as tax has not been paid within a period of thirty days from the due date of payment of such tax". |
3 | Taxability of Coaching Fees collected from students by an educational Institution to be examined considering Circular dated 3-8-2022 which states that all services supplied by "educational institution" to its students were exempt from GST in first sentence of paragraph 4.3 | Alva’s Education Foundation v. State of Karnataka [2023] 156 taxmann.com 6 (Karnataka) (05-10-2023) | Petitioner had charged its students the following amounts as 'coaching fees' i.e. Tuition fees towards II PUC CET Crash & Coaching and CA-CPT Coaching, Training fees for providing certification courses & placement and training fee for JV-A IET, Penal fee/fine, Various Misc. Fees viz., towards Alva's Nudisiri event, abacus, students welfare fund, internet, damages to hostel mess property, library fee and college fees. The authority while observing that amounts/fees charged to the prospective students for entrance or admission or eligibility certificate were exempted but not coaching fees. The conclusion was based on definition of "educational institution" contained in clause 2(y) of Notification dated 28-6-2017 and Circular dt 3-8-2022 in No. 177/09/22-TRU. |