GST Daily – Editorial Team
Dear Reader,
Today’s newsletter analytically summarizes the top GST stories reported at taxmann.com.
The demand notice was issued to assessee on the ground that input tax credit under Rajasthan VAT was claimed based on false/forged invoices issued by dealer who failed to deposit tax. The department argued that in cases where the registered seller is found to have obtained a forged registration as dealer and it is found that such person has not paid any tax to the department, recovery could always be made from the buyer. But the Rajasthan Tax Board deleted the Tax, Interest and penalty on assessee. The department filed petition against the same as it would amount to double jeopardy to the State as the selling dealer has not deposited the tax whereas subsequent dealer has claimed benefit of Input Tax Credit. ? ?
The Honorable High Court observed that a purchasing dealer is entitled by law to rely upon the certificate of registration of the selling dealer and to act upon it. The retrospective cancellation of registration of selling dealer can have no effect upon any person who has acted upon the strength of a registration certificate. The question of law raised by department had already been settled in various judgments holding that it would be impossible for receiving dealer to prove tax was paid by selling dealer. Therefore, it was held that no substantial question of law arises for consideration and petition has to be dismissed. ? ? ?
The Central Board of Indirect Taxes and Customs has notified the rate of exchange of conversion of the foreign currencies into Indian currency or vice versa, with effect from 18th February 2022, for import and export of goods. This notification is in supersession of the Notification No.08/2022-Customs(N.T.), dated February 3rd, 2022.
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