The Karnataka High Court held that property contributed as capital to a partnership becomes firm property. The individual or family rights cannot be claimed once ownership is transferred to the firm.
The issue involved limitation for initiating proceedings where no statutory time limit exists. The Court upheld that actions must still be within a reasonable period. The takeaway is that absence of explicit limitation does not permit indefinite action.
Solar inverters supplied for solar power projects were eligible for the concessional Goods and Services Tax (GST) rate of 5% as solar inverters constituted an integral component of a solar power-generating system and therefore qualified for the concessional tax rate.
The case involved an order passed without any reply from the taxpayer to the show cause notice. The Court set aside the order and remitted the matter for fresh adjudication. It held that an opportunity must be given when substantial tax recovery has already occurred.
The company could not claim the concessional GST rate of 0.1% under Notification No. 41/2017-IT(Rate), as the supply of HDPE drums was made to a chemical manufacturer rather than directly to the registered merchant exporter.
The issue was whether telecom interconnect charges qualify as royalty. The Court held they do not, relying on earlier precedent and dismissed the Revenue’s appeal.
The court held that the 2-year time limit under Section 54 is mandatory and binding on authorities. However, delay can be condoned by High Courts under Article 226 in genuine cases to grant rightful refunds.
The Court held that Tribunal remand is not a fresh reference under transfer pricing law. Hence, limitation expired earlier, entitling the assessee to refund.
The Court held that a delay of more than eight years in passing an order pursuant to a Tribunal remand cannot be considered reasonable. It ruled that such proceedings are barred by limitation and upheld the refund with interest.
The High Court held that ITC claims for financial years 2017-18 to 2020-21 remain valid if returns were filed before 30 November 2021 under the amended Section 16(5).
