HC Stays CBIC Circular on Corporate Guarantee; Allows Authority to Decide Case Without Being Influenced by Clarification
- Blog|News|GST & Customs|
- < 1 minute
- By Taxmann
- |
- Last Updated on 6 May, 2024
Latest from Taxmann
Case Details: M/S Acme Cleantech Solutions Pvt Ltd v. Union of India - [2024] 162 taxmann.com 151
Judiciary and Counsel Details
-
- Sanjeev Prakash Sharma & Sukhvinder Kaur, JJ.
- Sujit Ghosh, Sr. Adv. Abhinav Sood, Ms Mannat Waraich, Ms Anshika Agarwal & Anmol Gupta, Advs. for the Petitioner.
Facts of the Case
The petitioner filed a writ petition to challenge the Circular No. 204/16/2023-GST dated 27.10.2023 issued by the CBIC which clarified taxability of corporate guarantees on the ground that it seeks to take away the adjudicatory powers of the Assessing Authority as well as the Appellate Authority. It was contended that a circular can’t seek to take away the adjudicatory powers by clarifying provisions in the nature of adjudication.
High Court Held
The Honorable High Court noted that the petitioner preferred an appeal against the demand and the CBIC issued a clarification vide item No. 2 in the impugned Circular dated 27.10.2023. The Court further noted that the impugned Circular directly impinges upon the powers of Appellate Authority and the very purpose of filing of appeal stands negated.
Therefore, the Court held that the Appellate Authority shall be free to decide the case of the petitioner without being influenced by the impugned clarification. The Court also granted stay on the operation of the impugned Circular which provide clarification on taxability of corporate guarantee provided by companies.
Disclaimer: The content/information published on the website is only for general information of the user and shall not be construed as legal advice. While the Taxmann has exercised reasonable efforts to ensure the veracity of information/content published, Taxmann shall be under no liability in any manner whatsoever for incorrect information, if any.
Taxmann Publications has a dedicated in-house Research & Editorial Team. This team consists of a team of Chartered Accountants, Company Secretaries, and Lawyers. This team works under the guidance and supervision of editor-in-chief Mr Rakesh Bhargava.
The Research and Editorial Team is responsible for developing reliable and accurate content for the readers. The team follows the six-sigma approach to achieve the benchmark of zero error in its publications and research platforms. The team ensures that the following publication guidelines are thoroughly followed while developing the content:
- The statutory material is obtained only from the authorized and reliable sources
- All the latest developments in the judicial and legislative fields are covered
- Prepare the analytical write-ups on current, controversial, and important issues to help the readers to understand the concept and its implications
- Every content published by Taxmann is complete, accurate and lucid
- All evidence-based statements are supported with proper reference to Section, Circular No., Notification No. or citations
- The golden rules of grammar, style and consistency are thoroughly followed
- Font and size that’s easy to read and remain consistent across all imprint and digital publications are applied
Sign Up
To subscribe to our weekly newsletter please log in/register on Taxmann.com
Latest Books
Everything on Tax and Corporate Laws of India
To subscribe to our weekly newsletter please log in/register on Taxmann.com
