Direct Taxes Supreme Court U.P. Trade Tax Act | ‘Tinted Glass’ To Be Taxed As “Goods Or Wares Made Of Glass”, As it is Different from ‘Plain Glass’: Supreme Court Case Title: M/S Triveni Glass Limited v COMMISSIONER OF TRADE TAX, U.P. Case No.: 2023 LiveLaw (SC) 896 The Supreme Court has held that ‘Tinted Glass Sheet’ is different from ‘Plain...
Direct Taxes
Supreme Court
U.P. Trade Tax Act | ‘Tinted Glass’ To Be Taxed As “Goods Or Wares Made Of Glass”, As it is Different from ‘Plain Glass’: Supreme Court
Case Title: M/S Triveni Glass Limited v COMMISSIONER OF TRADE TAX, U.P.
Case No.: 2023 LiveLaw (SC) 896
The Supreme Court has held that ‘Tinted Glass Sheet’ is different from ‘Plain Glass sheet’ and is thus liable to be taxed as “goods or wares made of glass” under Entry 4 of Notification No.5784 dated 07.09.1981, issued by State Government. Accordingly, the manufacturer of Tinted Glass is liable to pay tax @15% on such goods.
Double Taxation Avoidance Agreement Cannot Be Enforced Unless Notified By Centre Under Section 90 Income Tax Act : Supreme Court
Case Title : Assessing Officer Circle (International Taxation) New Delhi v. M/s Nestle SA C.A. No. 1420/2023 + ten connected appeals
Citation : 2023 LiveLaw (SC) 911
The Supreme Court has held that a Double Taxation Avoidance Agreement (DTAA) cannot be given effect to by a court, authority or a tribunal unless it has been notified by the Central Government under Section 90 of the Income Tax Act.
Delhi High Court
Delhi High Court Quashes Assessment Order Passed Before Expiry Of Time To File A Reply To The Show Cause Notice
Case Title: WONDER BRICKS Versus PCIT
The Delhi High Court has quashed the assessment order passed before the time to file a reply to the show cause notice expired.
Delhi High Court Grants Assessee An Opportunity To Adduce Evidence On Qualification, Experience, Work Profile Of Employees To Avoid Section 40A(2) Disallowance
Case Title: Mehra Jewel Palace Pvt Ltd Vs Pr. Commissioner Of Income Tax
The Delhi High Court has granted the assessee an opportunity to adduce appropriate evidence—documentary or otherwise—before the Assessing Officer in order to establish its claim regarding educational qualification, experience, work profile, and in particular the duties discharged by the concerned persons to justify the claim of the appellant or assessee qua payment of salary to the persons concerned.
IT And Admin Services By Singapore Entity To Its Affiliate In India Can’t Be FTS: Delhi High Court
Case Title: The Commissioner Of Income Tax (International Taxation)-1, Delhi Versus M/S Bio-Rad Laboratories (Singapore) Pte. Ltd.
The Delhi High Court has held that information technology and other administrative services provided by the respondent or assessee to its affiliate in India could be construed as fees for technical services (FTS).
Transfer Pricing Report, Appellate Authorities Can Adopt Different Method From That Adopted By Assessee: Delhi High Court
Case Title: PCIT Versus Hellmann Worldwide Logistics India Pvt.
The Delhi High Court has held that the appellate authorities are not precluded from adopting a method different from that adopted by the assessee in the transfer pricing report.
Delhi High Court Upholds Sales Tax Demand Against Berger Paints On Stock Variations
Case Title: Berger Paints India Ltd Versus Commissioner Of Trade And Taxes
The Delhi High Court has upheld the sales tax demand against Berger Paints on stock variations.
Subscription Fee Received By Deloitte Exempted From Tax On Principle Of Mutuality: Delhi High Court
Case Title: CIT Versus Deloitte Touche Tohmastu
The Delhi High Court has held that subscription fees received by Deloitte are exempted from tax on the principle of mutuality.
Non-Adherence To Mandatory Requirement Of Passing Draft Assessment Order Invalidates Final Assessment Order: Delhi High Court
Case Title: Sinogas Management Pte Ltd Versus DCIT
The Delhi High Court has held that non-adherence to the mandatory requirement of passing a draft assessment order invalidates the final assessment order.
EPF Contribution Paid Next Day After National Holiday, Delhi High Court Allows Deduction As Due Fell On National Holiday
Case Title: PCIT Versus Pepsico India Holding Pvt. Ltd.
The Delhi High Court has allowed the deduction for the employee’s contribution towards the provident fund as the due date fell on a national holiday.
Travelling Expenses Incurred By Directors For Business Purposes And Not Personal, Delhi High Court Allows Travel Expenses
Case Title: PCIT Versus M/S. Azure Retreat Pvt Ltd
The Delhi High Court has held that the travelling expenses were incurred by the directors for business purposes of the company.
Delhi High Court Quashes Order Exempting Indian Trade Promotion Org. From Entertainment Tax On Trade Fairs
Case Title: Govt. Of NCT Of Delhi & Ors. Versus M/S Indian Trade Promotion Org. & Ors
The Delhi High Court has quashed the order of the Financial Commissioner exempting the Indian Trade Promotion Organization from entertainment tax on trade fairs.
Delhi High Court Allows Deduction To Hyatt Regency Towards Repair, Renovation, Refurbishment, Consultancy Expenses As Revenue Expenditure
Case Title: M/S Asian Hotels Ltd. Versus CIT
The Delhi High Court has allowed the income tax deduction to Hyatt Regency towards repair, renovation, refurbishment, and consultancy expenses as revenue expenditure.
Bombay High Court
Bombay High Court Quashes Reassessment Against Knight Riders Sports
Case Title: Knight Riders Sports Pvt. Ltd. Versus ACIT
The Bombay High Court has quashed the reassessment against Knight Riders Sport and held that a change of opinion does not constitute justification to believe income chargeable to tax escaped assessment.
Admission Fees Paid To Club For Corporate Membership Is Exclusively For Business Purpose, It Is 'Revenue' In Nature: Bombay HC
Case Title: Swiss Re Services India Pvt. Ltd. Vs Deputy Commissioner Of Income-Tax
The Bombay High Court has held that the admission fees paid to a club towards corporate membership are wholly and exclusively for business purposes, and the same are revenue-generating in nature.
Uttarakhand High Court
Uttarakhand High Court Set Aside Reassessment Proceedings Initiated against Amalgamated Company As It Became Non-Existent
Case Title: Delta Electronics India Pvt. Ltd. Versus PCIT
The Uttarakhand High Court has held that PAN activation by a transferor company does not entitle revenue to issue a reassessment notice after the appointed date of amalgamation.
Telangana High Court
Once Sanction Is Given To A Particular Authority Wilful Tax Evasion Prosecution Has To Be Launched By Him Alone: Telangana High Court
Case Title: Tirumala Tirupati Constructions India Pvt. Ltd. Versus ACIT
The Telangana High Court has overturned the assessee's wilful tax evasion prosecution before the Special Judge for Economic Offences.
Madras High Court
Cognizant Technology Challenges ITAT Order Upholding Dividend Distribution Tax Demand On Buyback Of Rs 19,000-Crore Shares Before Madras High Court
The Cognizant Technology has challenged the order of the Income Tax Appellate Tribunal (ITAT)which upheld the dividend distribution tax demand on buyback of Rs. 19,000-crore shares before Madras High Court.
Madras HC Directs Income Tax Dept. To Lift Attachment Of Pension Account Considering Age, Ailment Of Assessee
Case Title: G.K.Reddy Versus DCIT
Citation: 2023 LiveLaw (Mad) 327
The Madras High Court has directed the income tax department to lift the attachment of the pension account of the assessee considering his age and ailment.
[Section 220 Income Tax Act] Cannot Escape Payment Of Interest Merely Due To Wrong PAN Number In Order: Madras High Court
Case Title: G Moorthi v The Recovery Officer
Citation: 2023 LiveLaw (Mad) 305
The Madras High Court recently observed that PAN particulars are only one of the modes to identify an individual and merely because a wrong PAN number was given in the order by the Adjudicating officer of SEBI, a person could not escape payment of interest.
Dept. Failed To Produce New Or Tangible Information To Justify The Reopening Of Assessment Against IDFC: Madras High Court
Case No.: IDFC Limited Versus The Deputy Commissioner of Income Tax
The Madras High Court has quashed the reassessment proceedings against the IDFC as the department failed to produce any new or tangible information to justify the reopening of the assessment.
Jharkhand High Court
Section 234B Interest Has To Be Charged On The Assessed Income And Not On The Returned Income: Jharkhand High Court
LL Citation: 2023 LiveLaw (Jha) 66
Case Title: PCIT Versus Manoj Kapoor
The Jharkhand High Court has held that interest under Section 234B of the Income Tax Act has to be charged on the assessed income and not on the returned income.
There Should Be Finality To Assessment, Can’t Have Repeated Reassessment Proceeding On The Dictate Of Audit Party: Jharkhand High Court
LL Citation: 2023 LiveLaw (Jha) 67
Case Title: Rungta Mines Limited Versus State of Jharkhand
The Jharkhand High Court has held that if the assessing authority is allowed to initiate repeated re-assessment proceedings against an assessee merely on the dictate of the audit party, there would not be finality of assessment. The assessee would have a sword of Damocles hanging over it in perpetuity.
Wrong Collection Of TCS On Purchase Of Coal For Generation Of Power: Jharkhand High Court Directs Refund
Case Title: Adhunik Power & Natural Resources Ltd. Versus Central Coalfields Limited
The Jharkhand High Court has directed the Tax Collected as Source (TCS) refund wrongfully collected despite verifying purchase of coal was used for generation of power.
Wrong Collection Of TCS On Purchase Of Coal For Generation Of Power: Jharkhand High Court Directs Refund
Case Title: Adhunik Power & Natural Resources Ltd. Versus Central Coalfields Limited
Citation: 2023 Livelaw (Jha) 59
The Jharkhand High Court has directed the Tax Collected as Source (TCS) refund wrongfully collected despite verifying purchase of coal was used for the generation of power.
Income Tax Dept. Is Duty Bound To Provide All Material Information On Which Reliance Was Placed To The Assessee: Jharkhand High Court
Case Title: M/s Chotanagpur Diocesson Trust Asson. Versus UOI
The Jharkhand High Court has held that the Department is duty-bound and is mandatorily required to provide all material information or inquiry conducted on which reliance is being placed, along with supporting documents, to the petitioner as per the provisions of Section 148A of the Income Tax Act, 1961.
Calcutta High Court
Calcutta High Court Upholds Constitutional Validity Of Explanation to Section 10AA(1) Inserted By Finance Act 2017
Case Title: IFGL Refractories Ltd. & Anr. Versus Union of India & Ors.
The Calcutta High Court has upheld the constitutional validity of the explanation to Section 10AA(1) of the Income Tax Act inserted by the Finance Act 2017.
Allahabad High Court
Bakery Shortening And Vanaspati Are As Same: Allahabad High Court Applies Common Parlance Test
Case Title: The Commissioner vs. Adani Wilmar [Sales/Trade Tax Revision No. - 100 Of 2023]
Case Citation: 2023 LiveLaw (AB) 370
The Allahabad High Court has applied the Common Parlance Test and held that bakery shortening and vanaspati are the same.
Burden To Prove Concession Rightly Claimed Upon Assesee In Original Proceedings, Burden Shifts Upon Department In Reassessment Proceedings: Allahabad High Court
Case Title: M/S Amrit Steels v. Commissioner Commercial Tax
Case Citation: 2023 LiveLaw (AB) 371
The Allahabad High Court has recently held that the burden to prove that concession has been rightly claimed is upon the assesee in the original proceedings. However, the Court held that in reassessment proceedings, burden shifts upon the Department to prove that assesee had wrongly claimed concession.
Income Tax Act | Alternate Remedy Available, Orders Are Appealable, Writ Jurisdiction Need Not Be Invoked, Allahabad High Court
Case Title: Vivek Saran Agarwal vs. Union Of India And 3 Others
Case Citation: 2023 LiveLaw (AB) 376
The Allahabad High Court has refused to quash order and consequential notice under Sections 147 and 148 of the Income Tax Act, 1961 in writ proceedings under Article 226 of the Constitution of India. The Court held that all permissible grounds of defence remain open to assessee at the stage of proceedings under Section 148.
Issue Of New Shares Is Not Transfer, Section 56(2)(vii)(c) Income Tax Act Not Invokable : Gujarat High Court
Case Title: The Principal Commissioner Of Income Tax 1, Ahmadabad Versus Jigar Jashwantlal Shah
The Gujarat High Court has held that the shares that have been allotted to the assessee were not “received from any person,” which is the fundamental requirement for invoking Section 56(2)(vii)(c). The property must pre-exist for application of Section 56(2)(vii)(c), which is clear from the intention of the legislature”.
Form No.10-IC Couldn’t Be Uploaded On ITBA Portal Due To Technical Problem: Gujarat High Court Allows Section 115BAA Concessional Tax Benefit
Case Title: Principal Commissioner Of Income Tax 1 Versus KGY Glass Industries (P) Ltd.
The Gujarat High Court has allowed the benefit of concessional tax under Section 115BAA of the Income Tax Act, as Form No.10-IC could not be uploaded on the Income Tax Business Application (ITBA) portal due to technical problems.
Kerala High Court
No Requirement To Have A DIN Number In Satisfaction Note Recorded By Assessing Authority: Kerala High Court Upholds Section 153C Proceedings
Case Title: M/S. South Coast Spices Exports Pvt. Ltd Versus PCIT
The Kerala High Court has upheld the proceedings under Section 153C of the Income Tax Act and noted that there is no requirement to have a DIN number in the satisfaction note recorded by the Assessing Authority.
ITAT
Deemed Dividend Is Taxable Only In The Hands Of The Shareholder: ITAT
Case Title: ACIT versus Kiran Ship Breaking Company
The Ahmedabad Bench of Income Tax Appellate Tribunal (ITAT) has held that a deemed dividend is taxable only in the hands of the shareholder.
ITAT Allows Income Tax Deduction On Interest Income From Investment In Co-Operative Bank
Case Title: M/s. Kangayam Primary Agricultural Co-operative Credit Society Versus ITO
The Chennai Bench of Income Tax Appellate Tribunal (ITAT) has allowed the deduction under Section 80P(2)(d) of the Income Tax Act on the interest income from investments in cooperative banks.
Income From Nursery Activities Of Growing Various Types Of Lawns, Flower Plants And Vegetable Plants Is Agricultural In Nature: ITAT
Case Title: Talshibhai B Narola Versus The Income Tax Officer
The Ahmedabad Bench of Income Tax Appellate Tribunal (ITAT) has held that income from nursery activities such as growing various types of lawns, flower plants, and vegetable plants is agricultural in nature.
Assessee Resorts To Colourable Devices, Sham Transactions To Defraud Dept: ITAT
Case Title: Manoj Anand Versus ACIT
The Panaji Bench of Income Tax Appellate Tribunal (ITAT) has held that the assessee had resorted to colourable devices and sham transactions in order to defraud the Department by camouflaging its unaccounted income so that ultimately, the tax could be evaded.
ALP Of The ESOP Expenses Cannot Be Taken As ‘Nil’: ITAT
Case Title: Booking.Com India Support & Marketing Services Private Limited Versus DCIT
The Mumbai Bench of Income Tax Appellate Tribunal (ITAT) has held that the arm's-length price (ALP) of the employee stock option plan (ESOP) expenses cannot be taken as ‘Nil’.
ITAT Confirms Addition Of Expenses Incurred On Brand Reminders, Customer Gifts For Doctor
Case Title: ACIT Versus M/s Pfizer Limited
The Mumbai Bench of Income Tax Appellate Tribunal (ITAT) has confirmed the addition towards expenses incurred on brand reminders, customer gifts, and the purchase of medical books and journals for doctors.
No Basis Of Allocation Or Actual Cost Incurred For Affiliates: ITAT Confirms Additions For Cost Reimbursement As FTS
Case Title: Kraft Foods Group Brands Versus ACIT (International Taxation)
The Mumbai Bench of Income Tax Appellate Tribunal, while confirming the additions for cost reimbursement as fees for technical services (FTS), noted that the assessee had no basis of allocation or actual cost incurred for affiliates.
Tax Not Payable On Interest Accrued On FD Which Is Subject To CBI’s Prohibitory Order: ITAT
Case Title: M/s. Bellary Iron-Ores Pvt. Ltd. Versus ITO
The Bangalore bench of the Income Tax Appellate Tribunal (ITAT) has held that tax is not payable on interest accrued on FD, which is subject to the CBI’s prohibitory order.
Income Received By UK Telecom Company From Indian Telecom Company For Rendering Roaming Services To Customers Abroad Is Not ‘Royalty’: ITAT
Case Title: M/s. Telefonica UK Limited Versus DCIT
The Mumbai Bench of Income Tax Appellate Tribunal (ITAT) has held that income received by a UK telecom company from an Indian telecom company for rendering roaming services to customers abroad is not ‘royalty’.
Output VAT Refund Received By Hyundai Motor Towards Investment Promotion Subsidy Is Non-Taxable Capital Receipt: ITAT
Case Title: M/s. Hyundai Motor India Ltd. Versus ACIT
The Chennai Bench of Income Tax Appellate Tribunal (ITAT) has held that the output VAT refund received by Hyundai Motor towards investment promotion subsidy is a non-taxable capital receipt.
Bona Fide Non-Offering Of Interest On Income Tax Refund While Filing ITR Does Not Amount To Under-Reporting Of Income: ITAT
Case Title: Kavita Jasjit Singh Versus Commissioner of Income Tax (Appeals)
The Mumbai Bench of Income Tax Appellate Tribunal (ITAT) has held that the explanation of the assessee for not offering the interest on income tax refund while filing its return of income is bona fide.
ITAT Deletes Addition On Cash Deposit During Demonetisation On Account Of Sale Of Petrol, Diesel And Other Petroleum Products
Case Title: ITO Versus M/s. Ashapura Petrochem Marketing Pvt. Ltd.
The Ahmedabad Bench of Income Tax Appellate Tribunal (ITAT) has deleted the addition of cash deposits during demonetisation on account of the sale of petrol, diesel, and other petroleum products.
PCIT Precluded From Initiating Proceedings Based On Document Not Forming Part Of Any Proceedings: ITAT
Case Title: M/s. Visu Casement Pvt. Ltd. Versus PCIT
The Ahmedabad Bench of Income Tax Appellate Tribunal (ITAT) has held that the basis to initiate the proceedings under Section 263 of the Income Tax Act by the PCIT is misplaced as it was based on the document, which was not forming part of any proceedings.
Long-Term Capital Gain Can’t Be Claimed Without Owning Flats for At Least 3 years: ITAT
Case Title: Smt. Madhu Devi Versus ITO
The Hyderabad Bench of Income Tax Appellate Tribunal (ITAT) has held that long-term capital gain cannot be claimed without owning flats for at least 3 years.
Supreme Court
State Amendments Made To VAT Acts After GST Came Into Effect Are Invalid : Supreme Court
Case Title: The State of Telangana & Ors. V. M/S Tirumala Constructions., Civil Appeal No(S). 1628 Of 2023
Citation : 2023 LiveLaw (SC) 927
A Division Bench of the Supreme Court, while deciding the appeals arising from judgments of Telangana, Gujarat and Bombay High Court with respect to the validity of VAT Amendment Act in their respective states, made several significant findings regarding Section 19 of the Constitution (101st Amendment) Act (Amendment), 2016, which allowed the introduction of the Goods and Services Tax.
Customs Duty - Undervaluation Must Be Proved By Evidence Of Prices Of Contemporaneous Imports; Else Benefit Of Doubt Goes To Importer : Supreme Court
Case Title: Commissioner of Customs (Imports), Mumbai v. M/s Ganpati Overseas
Citation : 2023 LiveLaw (SC) 864
The Supreme Court has recently highlighted that the transaction value (the price actually paid or payable for the goods) should be the primary basis for customs valuation and that other valuation methods be invoked sequentially only when there is evidence to doubt the correctness of the declared transaction value.
Services Provided to IIT & NIT Exempt From Service Tax: Supreme Court Holds After Interpreting 'Or' & Semicolon In Exemption Notification
Case Title : Commissioner, Customs Central Excise and Service Tax, Patna v. M/s Shapoorji Pallonji and Company Pvt Ltd; Union of India v.M/s Shapoorji Pallonji and Company Pvt Ltd
Citation : 2023 LiveLaw (SC) 885
In an interesting judgment, the Supreme Court held that the Indian Institute of Technology and the National Institute of Technology will come under the Mega Service Tax Exemption Notification issued by the Department of Revenue in 2012(and amended and clarified by a subsequent notification issued in 2014).
Delhi High Court
Delhi High Court Directs Dept. To Refund IGST On Telecommunication Services Rendered By Vodafone Idea To Foreign Telecom Operators
Case Title: Vodafone Idea Limited Versus Union Of India & Ors.
The Delhi High Court has directed the department to refund IGST on telecommunication services rendered by Vodafone Idea to foreign telecom operators (FTO).
Active Involvement In Customs Duty Evasion: Delhi High Court Dismisses Plea Seekings Directions For Pre-Deposit Waiver
Case Title: Ajay Sagar Versus Principal Commissioner Of Customs (Import)
The Delhi High Court, while dismissing the petition seeking directions for waiver of the pre-deposit requirement as placed in terms of Section 129E of the Customs Act, 1962, noted that the case of the petitioner does not fall under the category of rare and exceptional cases.
Statutory Appeal Period Under Customs Act, Appellate Authority Has No Power To Condone Delay: Delhi High Court
Case Title: Shambhu Synthetics Pvt. Ltd Versus Commissioner Of Customs
The Delhi High Court has held that the appellate authority has no power to allow the appeal to be presented beyond the period of 30 days.
Bombay High Court
Bombay High Court Restrains GST Dept. From Passing Final Order On Demand Notices Against Delta Corp.
Case Title: Delta Corp Limited & Anr. Versus Union Of India & Ors.
The Bombay High Court has restrained the GST Department from passing final order on demand notices against Delta Corp.
Madras High Court
Madras High Court Allows Company To File Statutory Appeal After Limitation Period Noting That It Could Not Check GST Portal Due To Lack Of Employees
Case Title: SRM Engineering Construction Corporation Limited v. The Assistant Commissioner (ST) (FAC)
The Madras High court recently allowed a company to file a Statutory Appeal against the Assessment Order passed by the Assistant Commissioner (ST) (FAC) even though the limitation period to file an appeal had expired after noting that the company failed to access the notice in the GST portal.
Madras High Court Directs Customs Dept. To Release Fresh Apples Imported From New Zealand On Furnishing Of Bank Guarantee Towards Differential Duty
Case Title: The Additional Commissioner of Customs Versus M/s.N.C.Alexander
The Madras High Court has directed the customs department to release fresh apples imported from New Zealand on the furnishing of bank guarantees towards differential duty. The Madras High Court has directed the customs department to release fresh apples imported from New Zealand on the furnishing of bank guarantees towards differential duty.
Kerala High Court
Difficulties Faced On Initial Phase Of GST Implementation, Kerala High Court Sets Aside Disallowance Of ITC
Citation: 2023 LiveLaw (Ker) 548
Case title: Anaz Abdul Rahiman Kutty v State Tax Officer
The Kerala High Court recently addressed the difficulties faced by small scale dealers during the initial phases of GST implementation in understanding the provisions of GST Act.
Allahabad High Court
‘Reasons Are Heart And Soul Of Any Judicial And Administrative Order’: Allahabad HC Quashes Unreasoned Order Of GST Registration Cancellation
Case Title: M/S World Solution vs. State Of U.P. And 2 Others [WRIT TAX No. - 931 of 2023]
Case Citation: 2023 LiveLaw (AB) 368
While setting aside order cancelling GST registration of assesee on grounds that it was unreasoned, the Allahabad High Court has held that ‘reasons are heart and soul’ of any order. In absence of reasons assigned, the order is vitiated in law.
Intent To Evade Tax Sine Qua Non For Initiation Of Proceedings U/S 129 And 130 Of CGST Act: Allahabad High Court
Case Title: M/S Shyam Sel And Power Limited vs. State Of U.P. And 2 Others
Case Citation: 2023 LiveLaw (AB) 374
The Allahabad High Court has held that it is necessary for the authorities to establish intention to evade tax for proceedings under Sections 129 and 130 of Central Goods and Service Tax Act, 2017. The Court held that without recording a finding a as to intention to evade tax, proceedings can at best be initiated under Section 122 of the Act.
GST Act | No Provision To Disclose Route Of Transportation Of Goods: Allahabad High Court Quashes Demand
Case Title: M/S Om Prakash Kuldeep Kumar v. Additional Commissioner Grade-2 And Another
Case Citation: 2023 LiveLaw (AB) 378
The Allahabad High Court has held that unlike the Value Added Tax Act, 2008, there is no specific provision in the Goods and Service Tax Act, 2017 which requires assesses to declare route of transportation/ transit of goods. Therefore, goods cannot be detained for not being transported through the regular route.
Allahabad High Court Sets Aside Non-Speaking Order Cancelling GST Registration, Says Reason Is 'Heart Beat' Of Every Conclusion
Case Title: M/S Namo Narayan Singh vs. State Of U.P. And 2 Others Citation: 2023 LiveLaw (AB) 380
The Allahabad High Court has held that any order devoid of reasons will become lifeless as reasons are the heartbeat of every order.
UPGST | For Claiming ITC, Burden On Assesee To Prove Genuineness Of Transaction Beyond Doubt: Allahabad High Court
Case Title: M/S Malik Traders v. State Of U.P. And 2 Others
The Allahabad High Court has held that input tax credit cannot be claimed by an assesee if he has failed to discharge the burden to prove the actual transaction and physical movement of goods beyond doubt.
GST | Circular Does Not Override Statutory Provisions: Allahabad High Court Quashes Demand Of Rs. 235 Crores Against Vivo Mobile
Case Title: M/S Vivo Mobile India Private Ltd. vs. Union Of India And 4 Others [WRIT TAX No. - 433 of 2021]
Case Citation: 2023 LiveLaw (AB) 386
The Allahabad High Court has quashed demand of Rs. 235.52 Crores raised against Vivo Mobile India Private Limited by GST Authorities vide order under Section 74(9) of the Goods and Service Tax Act 2017.
Amount Paid Upfront As Premium For Lease Of Hospital For 30 years Or More, Exempt From GST: Allahabad High Court
Case Title: M/S Ram Kamal Healthcare Pvt. Ltd. v. Union Of India And 3 Others
The Allahabad High Court has held that premium for plots allocated for hospitals under lease extending up to 30 years or more falls under the definition of ‘amount paid upfront’ and is exempt from Goods and Service Tax.
No Provision For Taxing Stock Transfer From One Unit To Another Within State: Allahabad High Court Quashes Penalty Order
Case Title: M/S Vacmet India Ltd. v. Additional Commissioner Grade -2 (Appeal) And Another
The Allahabad High Court has held that there is no provision for taxing goods (stock transfer) being transported from one unit of the assesee to another within the State of Uttar Pradesh. The Court further held that intention to evade tax cannot be attributed on movement of assesse’s goods from one unit to another.
GST Act | Registration Can Only Be Cancelled U/S 29 Read With Rule 21, No Aid Can Be Taken From Any Other Statute: Allahabad HC Reiterates
Case Title: M/S Vidya Coal Depot v. Additional Commissioner Grade (Appeal) II And Another
The Allahabad High Court has reiterated that GST registration can only be cancelled under Section 29 of the Goods and Service Tax Act, 2017 read with Rule 21 of the GST Rules, 2017. For the purpose of cancellation of GST registration, no aid can be taken from any other statute.
GST | ‘Cannot Go Beyond Your Pleadings’: Allahabad High Court Refuses To Quash Penalty Order Under Section 129
Case Title: M/S Millennium Impex Pvt. Ltd. v. Additional Commissioner Grade-2 (Appeal)
The Allahabad High Court, on Wednesday, refused to quash penalty order passed under Section 129 of the Goods and Service tax Act, 2017 on the ground that petitioner cannot be permitted to argue the case without there being any pleading in support of his arguments.
UPVAT Act | Family Entitled To Insurance Money Under Group Insurance Policy If Registration Valid On Date Of Death Of Registered Dealer: Allahabad HC
Case Title: Rina Rani Rustogi v. State Of U.P. And 4 Others
The Allahabad High Court held that if registration under the Uttar Pradesh Value Added Tax Act, 2008 was subsisting on the day of his death, his family would be entitled to insurance claim under the Group Insurance Policy.
Rajasthan High Court
‘Kurkure’ And ‘Cheetos’ Classifiable As ‘Namkeen’, Not ‘Snacks’ Under VAT Act: Rajasthan High Court
Case Title: Ms Pepsico India Holdings Private Ltd. Versus Assistant Commissioner
The Rajasthan High Court has held that ‘Kurkure’ and ‘Cheetos’ are classifiable as ‘namkeen’, not 'snacks' under the VAT Act.
Jammu & Kashmir And Ladakh High Court
Jammu & Kashmir And Ladakh High Court Dismisses Writ Petition Challenging SCN Regarding Export Of Banned Yarn Shawls
Case Title: M/S Ali Shah Versus Union of India
The Jammu & Kashmir and Ladakh High Courts have held that jurisdiction in the case of shawls containing prohibited material lies in Delhi, not Jammu & Kashmir, as the seizure took place in Delhi.
Gujarat High Court
Gujarat High Court Stays Proceedings Concerning GST Imposition On Transfer Of Leasehold Rights Of GIDC Land
Case Title: Suyog Dye Chemie Pvt Ltd Versus Union Of India
LL Citation: 2023 LiveLaw (Guj) 169
The Gujarat High Court stayed the proceedings in respect of the issue related to the imposition of GST on the transfer of leasehold rights to Gujarat Industrial Development Corporation (GIDC) land and issued the notice to the department.
Calcutta High Court
9 Hours Time Gap Between The Expiry Of E-Way Bill And Interception Of The Vehicle: Calcutta High Court Directs Refund Of Penalty
Case Title: Ishaan Plastics Pvt. Ltd. & Anr. Vs The Deputy Commissioner of State Tax Bureau of Investigation (South Bengal) Durgapur Zone & Ors.
The Calcutta High Court has directed the refund of the penalty in the case where there was a 9-hour time gap between the expiry of the e-way bill and the interception of the vehicle.
Sikkim High Court
Sikkim High Court Stays GST Show Cause Notice Against Casino And Online Gaming Company, Delta Corp.
Case Title: Delta Corp Limited & Anr. Versus Union Of India & Ors.
The Sikkim High Court has stayed the GST demand against casino and online gaming company Delta Corp.
Jharkhand High Court
CBIC Circulars Are Binding On Service Tax Dept, Violations Will Make Actions Illegal: Jharkhand High Court
Case Title: M/s LMB Sons Versus UOI
The Jharkhand High Court has held that the circulars or instructions issued by the Central Board of Indirect Taxes and Customs (CBIC) are legally binding on the department, and their violation will make the actions of the respondent illegal and ex-facie bad in law.
CESTAT
Punjab Cricket Association Not Liable To Pay Service Tax Under The Head “Club or Association Service”: CESTAT
Case Title: M/s Punjab Cricket Association Versus The Commissioner of Central Excise, Chandigarh-I
The Chandigarh Bench of Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has held that the Punjab Cricket Association (PCA) is not liable to pay service tax under the heading “club or association service”.
CESTAT Quashes Service Tax Demand On Amount Received For Vessels To Dredging Corporation
Case Title: M/s. International Seaport Dredging Limited Versus Commissioner of GST and Central Excise
The Chennai Bench of Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has quashed the service tax demand on the amount received for the charter or hire of vessels by the Dredging Corporation of India (DCI).
CESTAT Quashes Service Tax Demand On Cost Towards Advertisements For Clients In Newspapers And Magazines
Case Title: M/s. Network Advertising Pvt. Ltd. Versus Commissioner of Service Tax-V, Mumbai
The Mumbai Bench of Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has quashed the service tax demand on costs towards advertisements for clients in newspapers and magazines.
Redemption Fine And Customs Duty Not Required To Be Paid When Goods Are Allowed To Be Re-Exported: CESTAT
Case Title: M/s. Goyal Trading Co. Versus Commissioner of Customs, Nhava Sheva
The Mumbai Bench of Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has held that when the goods are allowed to be re-exported, neither the redemption fine nor duty is required to be paid. At the same time, the penalty is also not to be imposed on the importers.
Service Tax Rebate Can Be Allowed Subject To Receipt Convertible Foreign Exchange Against Each Invoice: CESTAT
Case Title: M/s. I Gate Global Solutions Ltd. Versus Commissioner of CGST
The Mumbai Bench of Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has observed that unless it is established that against every invoice convertible foreign exchange has been received, the rebate of service tax paid in respect of that invoice cannot be allowed to the exporter.
Activity Of Fitting Power Lens Into Spectacle Frames Does Not Amount To Manufacture, Excise Duty Demand Not Sustainable: CESTAT
Case Title: M/s. Medical Research Foundation Versus The Commissioner of GST & Central Excise
The Chennai Bench of Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has held that the activity of fitting power lenses into frames does not amount to manufacture, and the demand for excise duty is not sustainable.
Tax Claims Of The Govt. Extinguishes Post Approval Of Resolution Plan By NCLT: CESTAT
Case Title: Icomm Tele Ltd Versus Commissioner of Central Tax Puducherry - GST
The Hyderabad Bench of Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has held that all claims prior to the National Company Law Tribunal (NCLT) approval date of government authorities in relation to all taxes for which the appellant was liable to pay shall stand extinguished on the approval date.
No Service Tax Payable On Supply Of Water And Electricity To The Tenants: CESTAT
Case Title: GMR Hyderabad International Airport Ltd Versus Commissioner of Central Excise & Service Tax, Hyderabad - IV
The Hyderabad Bench of Customs, Excise, and Service Tax Appellate Tribunal (CESTAT)has held that there is no requirement to discharge any service tax on the supply of water and electricity to their concessionaires or tenants, who were paying for these two utility services on an actual basis plus a markup of 10%.
Recipient Of GTA Services Not Liable To Pay Service Tax Which Was Already Paid By Transport Agency: CESTAT
Case Title: Dhariwal Industries Limited Versus C.C.E. & C.-Anand
The Ahmedabad Bench of Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has held that recipients of goods transport agency (GTA) services are not liable to pay service tax that was already paid by the transport agency.
Pollution Control Services Of Factory Are Input Services, Eligible For Cenvat Credit: CESTAT
Case Title: Solvay Specialities India Pvt Ltd Versus C.C.E. & S.T.-Surat-ii
The Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has held that services that are in relation to pollution control in the factory are input services in terms of Rule 2(l) of the Cenvat Credit Rules, 2004 and hence are eligible for Cenvat credit.
CENVAT Credit Availed On ‘Banking And Financial Services’ Used In Providing Renting Of Immovable Property Service Is Admissible: CESTAT
Case Title: Bangalore Housing Development & Investments versus Commissioner of Central Tax, Bangalore North
The Banglore Bench of Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has held that CENVAT credit availed on ‘banking and financial services’ used in providing renting of immovable property is admissible.
Gelatin Mass Waste Generated During Manufacturing Is A Waste Product, Demand For Reversal Of CENVAT Credit Is Unsustainable: CESTAT
Case Title: M/s. Geltec Private Limited Versus The Commissioner of Central Excise
The Banglore Bench of Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has held that the product “Gelatin Mass Waste” generated during the course of the manufacture of finished goods is a waste product.
Data Recovered From The Pen Drive Does Not Have Any Evidentiary Value To Prove Clandestine Clearance Of Silico Manganese: CESTAT
Case Title: Attitude Alloys (P) Ltd. Versus Commissioner of Central Excise, Bhubaneswar-II
The Kolkata Bench of Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has held that data recovered from the pen drive does not have any evidentiary value to prove the clandestine clearance of silico manganese.
Hindustan Coca Cola Did Not Recover Excise Duty From Their Customers, Is Not Hit By The Bar Of Unjust Enrichment: CESTAT
Case Title: Hindustan Coca Cola Beverages Pvt. Ltd. Versus Commissioner of CGST & Central Excise, Bhiwandi
The Mumbai Bench of Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has held that Hindustan Coca-Cola did not recover excise duty from their customers and is not hit by the bar of unjust enrichment.
Mere Acceptance Of Re-Assessed Value And Payment By Assessee Not Be Sufficient To Confirm Allegations Of Under Valuation: CESTAT
Case Title: M/s River Side Impex Versus Commissioner (Preventive)
The Delhi Bench of Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has held that mere acceptance of the re-assessed value and payment by the assessee will not be sufficient to confirm the allegations of undervaluation.
CESTAT Allows Cenvat Credit On Waste Treatment Services While Manufacturing Final Product
Case Title: UPL LTD. Versus C.C.E. & S.T.-VALSAD
The Ahmedabad Bench of Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has allowed the cenvat credit on waste treatment services for the factory's waste treatment arising out of the manufacturing of the final product.
CESTAT Quashes Service Tax Demand On Transport Of Goods With Loading And Shifting From Private Railway Siding To Stacking Yard
Case Title: M/s Usha Martin Limited Versus Commissioner of Central Excise, Customs & Service Tax, Jamshedpur
The Kolkata Bench of Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has quashed the service tax demand on the transport of goods with loading and shifting from private railway sidings to stacking yards.
Physician Samples Distributed Free Of Cost By Medicament Manufacturer, Excise Duty Payable On Transaction Value: CESTAT
Case Title: M/s Parker Robinson Private Limited Versus Commissioner of Central Excise, Kolkata VI
The Kolkata Bench of Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has held that physician samples are not sold by affixing the MRP on them; the same has to be distributed free of charge by the medication manufacturer. In those circumstances, the excise duty is payable on transaction value.
Accumulated CENVAT Credit Of EOU Unit Can Be Transferred To DTA Unit After Exit Of EOU Status: CESTAT
Case Title: M/s. Super Auto Forge Ltd. Versus Commissioner of GST & Central Excise
The Chennai Bench of Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has held that the accumulated CENVAT credit of export-oriented units (EOU) can be transferred to the Domestic Tariff Area (DTA) Unit after the exit of EOU status.
CESTAT Quashes Service Tax Demand On Liquidated Damages Against BHEL
Case Title: M/s. Bharat Heavy Electricals Limited Versus Commissioner of G.S.T. and Central Excise
The Chennai Bench of Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has quashed the service tax on liquidated damages against Bharat Heavy Electricals Limited (BHEL).
No Service Tax Payable On Bank Guarantee Provided To Group Of Company: CESTAT
Case Title: M/s DLF Home Developers Limited Versus The Commissioner of Central Excise & Service Tax, Delhi-IV
The Chandigarh Bench of Customs, Excise and Service Tax Appellate Tribunal (CESTAT) has held that no service tax is leviable on the corporate guarantee provided by the appellant/assessee to various banks/financial institutions.
TDS Paid From Assessee’s Own Account Can’t Form Part Of Consideration Of Service Charges Paid To Overseas Service Provider, No Service Tax Payable: CESTAT
Case Title: FCI OEN Connectors Ltd Versus Commissioner of Central Tax, Cochin
The Bangalore Bench of Customs, Excise, and Service Tax Appellate Tribunal (CESTAT)has held that the TDS amount paid to the Income Tax Department by the appellant from his own account cannot form part of the consideration of the service charges paid to the overseas service provider, and service tax is not payable.
AAR
GST Exemption On Unbranded Broken Rice, 5% GST On Pre-Packaged And Labelled Ones: AAR
Applicant’s Name: Tamal Kundu
The West Bengal Authority of Advance Ruling (AAR) has ruled that 5% GST is applicable on the supply of broken rice if supplied as “pre-packaged and labelled,", whereas no GST shall be payable on unbranded supply.