Indirect Taxes Supreme Court Excise Duty Exemption | To Determine If A Product Falls Under Description "Intravenous Fluids”, Its Composition & Not Its Use Matters : Supreme Court Case Title: Commissioner of Central Excise vs M/s Denis Chem Lab Ltd. & Anr. Citation : 2023 LiveLaw (SC) 650 The Supreme Court has ruled that in order to determine whether a...
Excise Duty Exemption | To Determine If A Product Falls Under Description "Intravenous Fluids”, Its Composition & Not Its Use Matters : Supreme Court
Case Title: Commissioner of Central Excise vs M/s Denis Chem Lab Ltd. & Anr.
Citation : 2023 LiveLaw (SC) 650
The Supreme Court has ruled that in order to determine whether a product would fall under the description of “Intravenous Fluids” so as to be eligible for exemption from excise duty, it is the composition of the product in question which is relevant and not whether the product is used for treatment of any particular disease.
Delhi High Court
DGGI Can’t Be Stopped From Taking Intelligence-Based Enforcement Action When Investigation By Other Authority Is Going On: Delhi High Court
Case Title: M/S. Hanuman Enterprises Pvt. Ltd. Versus The Additional Director General Directorate General Of GST
Citation: 2023 LiveLaw (Del) 756
The Delhi High Court has held that the Directorate General of Goods and Service Tax Intelligence (DGGI) cannot be stopped from taking intelligence-based enforcement action when investigations by other authorities are going on.
Case Title: Blackberry India Pvt Ltd. Versus The Assistant Commissioner, Central Excise And CGST Division
The Delhi High Court has directed the adjudicating authority to process Blackberry’s claim of interest under Section 11BB of the Excise Act.
Section 67(2) Of The GST Act Does Not Empower Seizure Of Currency Available In Premises During Search: Delhi High Court
Case Title: Rajeev Chhatwal Versus Commissioner Of Goods And Services Tax (East)
The Delhi High Court has held that Section 67(2) of the GST Act does not empower the seizure of currency available on premises during a search
Bombay High Court
No Order On Merits Can Be Passed If Appeal Is Defective For Non-Production Of Certified Copy: Bombay High Court
Case Title: JEM Exporter Versus Union of India
The Bombay High Court has held that if the appeal is defective for non-production of a certified copy, failure to deposit, or incorrect signatures, no order on merits can be passed. The appellate authority erred in law in passing an order on the merits.
Bombay High Court
Shifting Of Commissionerates, Re-Organisation Of Office, Not A Valid Justification For Inordinate Delay In SCN Adjudication: Bombay High Court
Case Title: Coventry Estates Pvt. Ltd. Versus The Joint Commissioner CGST and Central Excise
The Bombay High Court has held that the belated hearing of the show cause notice would amount to a violation of the principles of natural justice.
Royalty Payment For Use Of Technology Is Inextricably Linked With Manufacturing Activity: Bombay High Court
Case Title: Cummins India Limited Versus ACIT
The Bombay High Court has held that the transaction of payment of royalty for the use of technology is inextricably linked with manufacturing activity and should be aggregated with other international transactions in the manufacturing segment for the purposes of benchmarking it.
Karnataka High Court
ATM Management Service To Banks Are Pure Services, No VAT Payable: Karnataka High Court Quashes Re-assessment
Case Title: FIS Payment Solutions And Services India Private Limited Vesrsus The State Of Karnataka
The Karnataka High Court has quashed the re-assessment and held that ATM management services to banks are pure services and will not attract Value Added Tax (VAT).
Calcutta High Court
Buyer Not Liable For Seller's Default: Calcutta High Court Set Aside ITC Reversal Demand Against Buyer
Case Title: Suncraft Energy Private Limited And Another Versus Assistant Commissioner
The Calcutta High Court has held that before directing the recipient of service or buyer to reverse the input tax credit and remit it to the government, the department ought to have taken action against the selling dealer.
Assessee Ought To Have Waited For Relevant Form To Go Live On GST Portal Instead Of Making Illegal Adjustment: Allahabad High Court
Case Title: M/S Tikona Infinet Private Limited vs. State of U.P. and Another Case Citation: 2023 LiveLaw (AB) 242
The Allahabad High Court has held that the assessee ought to have waited for the relevant form to go live on the GST portal instead of making an illegal adjustment.
Kerala High Court
Classification Of Dr.Reddy’s Senquel-AD As A Mouthwash Or A Medicament: Kerala High Court Remands The Matter Back
Case Title: Dr. Reddys Laboratories Ltd. Versus The Commissioner Of Commercial Taxes
Citation: 2023 LiveLaw (Ker) 407
The Kerala High Court has remitted the issue of the classification of Dr.Reddy’s Senquel-AD as a mouthwash or a medicament for fresh consideration.
DGFT Circular Providing 4% of SAD Refund Published On The Official Website Amounts To Public Notice: Kerala High Court
Case Title: M/S. Elite Green Pvt Ltd Versus Under Secretary
Citation: 2023 LiveLaw (Ker) 369
The Kerala High Court has held that a circular issued by the Directorate General Of Foreign Trade (DGFT) providing 4% of the Special Additional Duty (SAD) refund published on the official website amounts to public notice.
Allahabad High Court
Case Title: M/S Rateria Laminators Pvt. Ltd. vs. Additional Commissioner
The Allahabad High Court has set aside an order under Section 129(3) of the UPGST Act 2017 by which a penalty was imposed solely on the ground that no evidence had been adduced regarding the illness of the driver and the breakdown of the vehicle.
Case Title: Lalita vs. Central Goods And Service Tax And Another
Case Citation: 2023 LiveLaw (AB) 243
The Allahabad High Court has held that Rule 159(5) of the Central Goods and Service Tax Rules, 2017 which provides remedy to file objections against the attachment of property must be availed before approaching the Court.
Gujarat High Court
Case Title: Tagros Chemicals India Pvt. Ltd. Versus Union Of India
Case Citation: Case Citation: 2023 Livelaw (Guj) 128
The Gujarat High Court has directed the refund of the Integrated Goods and Service Tax (IGST) amount, along with applicable interest, to a petitioner who inadvertently paid IGST at a higher rate than the concessional rate applicable.
Writ Petitioner Concealing CESTAT’s Order Of Confiscation: Madhya Pradesh High Court Imposes Rs. 25K Cost
Case Title: Hitesh Nagwani Versus Commissioner Of Customs
The Madhya Pradesh High Court has imposed a cost of Rs. 25000 on the writ petitioner seeking provisional release of goods for suppressing the fact of CESTAT’s final order of confiscation, which was well within his knowledge.
Patna High Court
Case Title: PCM Cement Concrete Pvt. Ltd vs. The Union of India and Others
Case Citation: 2023 LiveLaw (Pat) 90
In a significant ruling, the Patna High Court has directed the Indian Railways to refund an amount of Rs. 38,22,897 to PCM Cement Concrete Pvt. Ltd., following an illegal VAT deduction made from the bills of the contractor.
Reusing E-way Bills Demonstrates Intention Of Tax Evasion: Punjab And Haryana High Court Upholds Penalty Against Transporter
Case Title: M/s Bright Road Logistics Versus State of Haryana and Others
The Punjab and Haryana High Court has upheld the penalty against the transporter and ruled that reusing e-way bills demonstrates the intention of tax evasion.
Case Title: M/s Gujarat Co-Operative Milk Marketing Federation Ltd. Versus Additional Excise & Taxation Commissioner and Another
Citation: 2023 LiveLaw (HP) 61
The Himachal Pradesh High Court has held that ‘milk cream’ cannot be classified as ‘milk’.
Himachal Pradesh High Court Quashes Revision Petition Against Nokia On Differential Tax Amount On Sale Of Mobile Charger
Case Title: State of Himachal Pradesh and Others Versus M/s Nokia India Sales Pvt. Ltd.
The Himachal Pradesh High Court has quashed the revision petition filed by the Department against Nokia on the differential tax amount on the sale of mobile chargers.
Case Title: M/s Hero Motocorp Ltd. Versus The Commissioner of Central Excise, Delhi-III
The Chandigarh Bench of Customs, Excise and Service Tax Appellate Tribunal (CESTAT) has allowed the CENVAT Credit to Hero Motocorp on helmet locks supplied along with motorcycles.
Case Title: The Food Corporation of India Versus The Commissioner of Central Excise and Service Tax, Panchkula
The Chandigarh Bench of the Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has held that undertaking the weighment of goods by the Food Corporation Of India (FCI) is not covered under "business auxiliary service".
Bill Discounting Facility Could Be Offered Not Only By Banking Company But Also By A Body Corporate: CESTAT
Case Title: M/s. Surin Automotive Private Limited Versus Commissioner of Central Excise and Service Tax
The Chennai Bench of the Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has observed that bill discounting facilities could be offered not only by a banking company or a financial institution but also by a body corporate.
Case Title: Sri Mridul Phukan Versus Commissioner of Central Excise & Service Tax
The Kolkata Bench Of Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has upheld the service tax demand against the service tax provider based on ONGC’s reply.
Service Tax Not Chargeable On Tour Services For Carrying Out Hajj Pilgrimage In Saudi Arabia By Indian Pilgrims: CESTAT
Case Title: M/s. Amber Travel Services Versus Commissioner, Central GST & Central Excise, Jaipur
The Delhi Bench of the Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has held that service tax is not chargeable on tour services for carrying out the Hajj pilgrimage in Saudi Arabia by Indian Pilgrims.
Case Title: M/s Oil and Natural Gas Corporation Versus Commissioner of Central Excise & Service Tax, Dibrugarh
The Kolkata Bench of the Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has held that services for drain hole drilling in existing oil wells qualify as "mining services".
Flue Gas Generated During Manufacturing Metallurgical Coke Is Not A Manufactured Product, Tata Steel Not Liable To Pay Excise Duty: CESTAT
Case Title: M/s. Tata Steel Limited Versus Commissioner of Central Excise, Haldia
The Kolkata Bench of Customs, Excise and Service Tax Appellate Tribunal (CESTAT) has held that the flue gas generated during the course of manufacturing metallurgical coke is not a manufactured product and is also not marketable.
No Service Tax Payable On Penal Interest & Cheque Bouncing Charges Received By Bajaj Finance: CESTAT
The Mumbai Bench of the Customs, Excise, and Service Tax Appellate Tribunal (CESTAT)has held that penal interest and cheque bouncing charges received by Bajaj Finance as "consideration" for "tolerating an act" are not leviable to service tax under Section 66E(e) of the Finance Act, 1994.
No Service Tax Applicable On Providing Repair, Management And Maintenance Of Roads Services To NHAI: CESTAT
Case Title: B. Ramanaiah Constructions Versus Commissioner of Central Excise
The Hyderabad Bench of the Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has held that no service tax is applicable to the repair, management, and maintenance of road services for the National Highway Authority of India (NHAI).
Case Title: Nayara Energy Limited Versus Commissioner of Central Excise & ST, Ahmedabad-i
The Ahmedabad Bench of the Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has held that cenvat credit is allowable on inputs used for railway lines.
6% More GST Is Payable If Construction Services Are Not Under Affordable Residential Apartments: Kerala AAR
Applicant’s Name: M/S. Palal Realty
The Kerala Authority Of Advance Ruling (AAR) has held that affordable residential apartments attract 1.5% GST. On the other hand, for residential apartments other than affordable ones, the rate of GST is 7.5%.
Applicant’s Name: Sai Service Pvt. Limited
The Telangana Authority of Advance Ruling (AAR) has held that Input Tax Credit (ITC) cannot be availed on test-drive vehicles when retained in a workshop as a replacement vehicle.
Income Tax Settlement Commission's Purpose Is To Give Assessee Chance To Disclose Undisclosed Income To Seek Immunity : Supreme Court
Case Title: SHREE NILKANTH DEVELOPERS v. PRINCIPAL COMMISSIONER OF INCOME TAX
Citation : 2023 LiveLaw (SC) 648
A Division bench of the Supreme Court, while hearing an appeal, discussed the objective and purpose behind setting up a Settlement Commission under the Income Tax Act 1961.
Interest Income Earned On Deposits By Clubs In Banks Which Are Corporate Members Taxable; Principle Of Mutuality Not Applicable: Supreme Court
Case Title: SECUNDRABAD CLUB ETC. vs C.I.T.-V ETC.
Citation : 2023 LiveLaw (SC) 660
The Supreme Court has ruled that the interest income earned on fixed deposits (FDs) made by Clubs in the banks which are members of those Clubs has to be treated like any other income from other sources within the meaning of Section 2(24) of Income Tax Act, 1961. The bench of Justices B.V. Nagarathna and Prashant Kumar Mishra said that the principle of mutuality would not apply to interest income earned on FDs made by Clubs in the banks irrespective of whether the banks are corporate members of the Club or not.
Delhi High Court
Case Title: PCIT Versus ARN Infrastructure Ltd.
The Delhi High Court while upholding the ITAT’s ruling held that the addition of Rs. 10 crore was made purely on the basis of the statement made by directors without corroborative evidence.
Case Title: Oxfam India Versus Deputy Commissioner Of Income Tax
The Delhi High Court has stayed the income tax reassessment proceedings initiated against Oxfam India.
Case Title: PCIT Versus Maharani Enterprises
The Delhi High Court has held that commission payments to non-resident agents overseas are not chargeable to tax and there is no TDS required to be deducted under Section 195 of the Income Tax Act.
Depreciation Allowable On Goodwill Though No Actual Cash Payment Made For Acquisition: Delhi High Court
Case Title: PCIT Versus M/S Eltek Sgs Pvt. Ltd.
Citation: 2023 LiveLaw (Del) 668
The Delhi High Court has held that depreciation is allowable on goodwill arising in a scheme of amalgamation even though no actual cash payment was made for the acquisition of goodwill.
If Refund Is Legitimately Due, Mere Delay Should Not Defeat The Claim For Income Tax Refund: Bombay High Court
Case Title: Madhani Prakash Enginers JV Versus UOI
The Bombay High Court has quashed the CBDT’s order rejecting the assessee’s application for condonation of the 43-day delay in filing the return of income (ITR).
Case Title: Kalpataru Power Transmission Ltd. Versus State Of Maharashtra
The Bombay High Court has quashed the review order against Kalpataru Power Transmission, disallowing works-contract deductions beyond Show Cause Notice (SCN).
Madras High Court
Madras High Court Directs FinMin, CBDT To Decide On Exempting Agricultural Cooperative Credit Societies From TDS Deduction
Case Title: Erode Mavatta Valamana Thodakka Versus .The Managing Director / Additional Registrar Erode District Central Cooperative Bank
The Madras High Court has directed the Finance Ministry and Central Board of Direct Taxes (CBDT) to take action on exempting primary agricultural cooperative credit societies from TDS deduction on cash withdrawals received from the Central Cooperative Bank for distribution to the beneficiaries.
Patna High court
No Assessment U/S 153A In Absence Of Incriminating Material Unearthed During The Course Of Search: Patna High Court
Case Title: Assistant Commissioner of Income Tax Versus Satish Kumar Keshri
The Patna High Court has held that completed assessments can be interfered with by the Assessing Officer while making the assessment under Section 153A only on the basis of some incriminating material unearthed during the course of the search.
Case Title: Progressive Constructions Limited vs. The State of Bihar and Another
Case Citation: 2023 LiveLaw (Pat) 89
In a significant ruling, the Patna High Court criticized the State Tax Authority for its handling of a refund application filed by Progressive Constructions Limited and set aside the impugned order. The court, in its judgment, expressed strong disapproval of the Officer's conduct and restored the refund application before the appropriate authority.
Gujarat High Court
Gujarat High Court Quashes Orders Rejecting Declaration Under SVLDRS Scheme, Directs Acceptance Of Declaration
Case Title: M/s FTA HSRP Solutions Pvt. Ltd. vs Union Of India
The Gujarat High Court has rendered a verdict in favor of M/S Fta Hsrp Solutions Pvt, setting aside the rejection of their declaration filed under the Sabka Vishwas (Legacy Dispute Resolution) Scheme, 2019 (SVLDRS). The court has directed the designated committee, Sabka Vishwas Dispute Resolution Scheme, to accept the petitioner's declaration and bring closure to the tax dispute.
Case Title: Anokhi Realty Private Limited vs. Income Tax Officer 2023 LiveLaw (Guj) 132 [Special Civil Application No. 17613 Of 2021]
Case Citation: 2023 LiveLaw (Guj) 132
The Gujarat High Court has quashed the income tax reassessment notice against a non-existent entity.
Services Can’t Be Roped Into FTS Unless Person using Services Able To Use Technology: Gujarat High Court
Case Title: Commissioner Of Income Tax (International Taxation And Transfer Pricing) Versus Star Rays
The Gujarat High Court has held that mere rendering of services cannot be roped into fees for technical service (FTS) unless the person utilising the services is able to make use of the technical knowledge, etc.
Case Title: Principal Commissioner Of Income Tax-2, Kolkata -Versus- M/S. Deepak Industries Ltd.
The Calcutta High Court has dismissed the appeal filed by the Income Tax Department on the ground of low tax effects.
Bank Not Obliged To Deduct TDS From FDR Interest To Jammu Development Authority: Jammu & Kashmir And Ladakh High Court
Case Title: PCIT Versus M/S The J&K Bank Ltd.
The Jammu & Kashmir and Ladakh High Court has held that the assessee bank shall not be obliged to deduct TDS from the interest payments made to the Jammu Development Authority (JDA) on its amount kept in FDRs.
Allahabad High Court Imposes 10K Cost On Income Tax Authority For Violation Of Principles Of Natural Justice
Case Title: M/S M.L. Chains v. The Pr. Commissioner Of Income Tax - 1 and another 2023 LiveLaw (AB) 263 [Writ Tax No. - 638 of 2022]
Case Citation: 2023 LiveLaw (AB) 263
The Allahabad High Court on Wednesday imposed a cost of Rs. 10,000 to be paid by an erring officer of the Income Tax Department for violating the principles of natural justice while cancelling the earlier Assessment Order and initiating fresh proceedings under Section 263 of the Income Tax Act, 1961.
Jharkhand High Court
Income Tax Act | Annulled Penalty Order Implies Absence Of Concealment, S.276C Proceedings Automatically Quashed: Jharkhand High Court
Case Title: Pralay Pal vs. State of Jharkhand and Anr.
Case Citation: 2023 LiveLaw (Jha) 34
The Jharkhand High Court has recently held that when a penalty order is set aside, it implies the absence of concealment of income, leading to the automatic quashing of criminal proceedings under Section 276C(1) of the Income Tax Act.
Jharkhand High Court Quashes Proceedings U/S 276B Against The Petitioner Who Failed To Deposit The TDS Amount
Case Title: M/s A.M. Enterprises and Anr. vs. State of Jharkhand and Anr.
Case Citation: 2023 LiveLaw (Jha) 33
The Jharkhand High Court has quashed the criminal proceedings against a petitioner who had been facing charges under Sections 276B and 278B of the Income Tax Act, 1961. The petitioner's firm had allegedly failed to deposit the Tax Deducted at Source (TDS) amount with the Income Tax Department in accordance with the provisions of the Income Tax Act.
Case Title: Amazon Web Services Versus ACIT
The Delhi Bench of the Income Tax Appellate Tribunal (ITAT) has held that cloud computing services provided by Amazon Web Services cannot be held liable to tax in India as royalty and fee for technical or included services (FTS/FIS).
Treatment Of Shares In Books Of Accounts Determines Taxation, JM Financial’s Set-off Not Colourable Device: ITAT
Case Title: M/s J.M. Financial Ltd. Versus DCIT
The Mumbai Bench of the Income Tax Appellate Tribunal (ITAT) has held that the treatment of shares in books of accounts determines taxation under capital gain or business income, and the method adopted for arriving at the sale consideration does not determine the nature of the transaction.
Case Title: Hiranandani Healthcare Private Limited Versus CIT (A)
The Mumbai Bench of the Income Tax Appellate Tribunal (ITAT) has held that Section 68 of the Income Tax Act, which relates to the taxability of unexplained cash credits, is not applicable to share premiums.
Case Title: Vikram Bajaj Versus PCIT
The Delhi Bench of the Income Tax Appellate Tribunal (ITAT) has quashed the income tax addition in respect of immovable property, warranting revision by the PCIT.
Case Title: Mahalasa Exports Versus ITO
The Bangalore Bench of the Income Tax Appellate Tribunal (ITAT) has held that the income would be receivable only when the income accrues to the assessee, and the income would accrue to the assessee only when the assessee gets such a right to receive the income.
ITAT Imposes Cost Of Rs.10K On Foreign Portfolio Investor For Not Responding To Section 142(1) Notices
Case Title: Hunt International Investments LLC Versus DCIT
The Mumbai Bench of the Income Tax Appellate Tribunal (ITAT) has imposed a cost of Rs.10,000 on a foreign portfolio investor (FPI) for not responding to notices under Section 142(1) of the Income Tax Act.
Case Title: KEB Hana Bank Versus Joint Director of Income Tax
The Chennai Bench of the Income Tax Appellate Tribunal (ITAT) has deleted the penalty as the defects in the statement of the reportable account were rectified within the time limit.
For Computing Holding Period For Capital Gain The Period To Be Taken From Date Of Allotment Of The Flat: ITAT
Case Title: DCIT Versus Narendra Gehlaut
The Mumbai Bench of the Income Tax Appellate Tribunal (ITAT) has held that for computing the holding period for capital gain, the period is to be taken from the date of allotment of the flat.
Case Title: Saif Ii-Se Investments Mauritius Limited Versus Assistant Commissioner Of Income Tax
The Delhi bench of the Income Tax Appellate Tribunal (ITAT) has allowed the capital gains exemption to NSE investors under the India-Mauritius tax treaty.
Case Title: Damco India Pvt. Ltd. Versus CIT(A)
The Mumbai Bench of the Income Tax Appellate Tribunal (ITAT) has held that the AO is bound to grant the credit of advance tax that was left by the taxpayer
Licence Fee Received By Cricket Australia For Live And Non-Live Transmissions Rights Can’t Be Taxed As Royalty: ITAT
Case Title: Cricket Australia Versus ACIT
The Delhi Bench of the Income Tax Appellate Tribunal (ITAT) has held that Cricket Australia is not liable to pay ‘royalty’ on licence fees received for live and non-live transmission rights.