Case Law Details
Global Calcium Private Limited Vs Assistant Commissioner (ST) (Madras High Court)
Introduction: The Madras High Court recently delivered a significant judgment in the case of Global Calcium Private Limited vs. Assistant Commissioner (ST). The petitioner, engaged in the supply of Bulk Drugs and Pharmaceutical Intermediaries, contested three separate assessment orders for the financial years 2017-18, 2018-19, and 2019-20. The key issues involved discrepancies in Input Tax Credit (ITC), performance-linked incentives to whole-time directors, and E-way bill discrepancies.
Detailed Analysis:
1. ITC Discrepancies: The petitioner argued that ITC was not claimed due to ineligibility under Section 17(5) of the Tamil Nadu Goods and Services Tax Act, 2017. The liability was partly confirmed and dropped based on the discrepancies in different returns.
2. Performance-Linked Incentives to Directors: The primary issue revolved around the GST liability on performance-linked incentives paid to whole-time directors. The court examined the balance sheet, Form-16, and Form-26AS. The petitioner contended that TDS under Section 192 of the Income Tax Act proved the incentives were part of the directors’ salaries. However, the assessing officer disregarded this, leading to the challenge.
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