Monthly Digest Of Tax Cases: May 2022

Indirect Taxes Supreme Court GST Council Recommendations Not Binding On Centre & States; Both Parliament & State Legislatures Can Legislate On GST : Supreme Court Case Title : Union of India and Anr versus M/s Mohit Minerals Through Director Citation : 2022 LiveLaw (SC) 500 In a significant verdict, the Supreme Court held that the recommendations of the GST council are not binding on the Union and the State Governments. A bench led by Justice DY Chandrachud held that the Parliament intended that the recommendations of the GST Council will have persuasive value. Importantly, the Court held that both the Parliament and the State Legislatures can equally legislate on matters of Goods and Service Tax. Case Name: Union of India And Anr. v. M/s. Mohit Minerals Through Director Citation: 2022 LiveLaw (SC) 500 Separate IGST On Indian Importers For Ocean Freight Against Concept Of "Composite Supply", Violates Section 8 CGST Act : Supreme Court The Supreme Court has held when the Indian importer is liable to pay Integrated Goods and Services Tax (IGST) on the 'composite supply', which includes supply of goods and supply of services of transportation, insurance, etc. in a CIF contract, a separate levy on them for the 'supply of services' by the shipping line would be in violation of Section 8 of the CGST Act. Indian Company Liable To Service Tax On Secondment Of Employees From Overseas Group Entities As Recipient Of Manpower Supply: Supreme Court Case Name: C.C., C.E. & S.T. - Bangalore (Adjudication) Etc. v. M/s. Northern Operating Systems Pvt. Ltd. Citation: 2022 LiveLaw (SC) 526 The Supreme Court has held that when the Overseas group companies providing skilled employees, on secondment basis, to its Indian counterparts amounts to supply of manpower services, the Indian company would be considered as service recipient. Therefore, the Indian company is liable to pay service tax on the salaries of the seconded employees reimbursed to the overseas company. Delhi High Court Bail Amount Can Be Paid By Cash Ledger, Debit Ledger Of ITC: Delhi High Court Refuses To Cancel Bail Of A Person Accused of Fraudulently Availing ITC Case Title: Amit Gupta Vs Directorate General of GST Intelligence Headquarters Citation: 2022 LiveLaw (Del) 426 The Delhi High Court bench of Justice Mukta Gupta has ruled that the bail amount can be paid by cash ledger and debit ledger of the Input Tax Credit (ITC). Karnataka High Court No Conflict Between Power To Levy GST And Power Of Municipal Corporation To Levy Advertisement Fee Or Advertisement Tax: Karnataka High Court Case Title: Hubballi Dharwad Advertisers Association (R) Vs State of Karnataka The Karnataka High Court bench of Justice Suraj Govindraj held that there is no conflict between the power to levy GST under the GST Act and the power of a municipal corporation to levy an advertisement fee or advertisement tax under Section 134 of the Karnataka Municipal Corporations Act. 18% GST Payable On 'Pattadar Pass Book Cum Title Deed' ; Karnataka High Court Upholds AAR Ruling Case Title: M/s. Manipal Technologies Ltd. Versus State of Karnataka The Karnataka High Court bench of Justice S. Sujatha and Justice Shivashankar Amarannavar, while upholding the ruling of the Authority of Advance Ruling (AAR), held that 18% GST is payable on 'pattadar pass book cum title deed'. Madras High Court No Excuse For Not Paying GST In Time From Its Electronic Cash Register: Madras High Court Upholds Interest Demand Case Title: M/s.Srinivasa Stampings Versus The Superintendent of GST and Central Excise Citation: 2022 LiveLaw (Mad) 202 The Madras High Court bench of Justice C. Saravanan held that the taxpayer is liable to pay interest if there is a belated payment of tax declared in the returns filed. Form GST DRC-16 Merely Attaches Immovable Properties & Not Bank Account: Madras High Court Refuses To Quash Attachment Notice Case Title: Tvl.G.Sankar Timber Depot Versus The State Tax Officer (Adjudication) The Madras High Court bench of Justice C. Saravanan has held that form GST DRC-16 merely attaches immovable properties. There was no attachment to any bank accounts. The assessee appeared to be interested in dragging on the proceeding, though it appeared to be in arrears of huge amounts of tax. Transition Of ITC cannot Be Denied Merely For Technical Difficulties: Madras High Court Case Title: M/s.Vetrivel Explosives Pvt. Ltd. Versus Union of India Citation: 2022 LiveLaw (Mad) 208 The Madras High Court held that in case the department is unable to permit the filing of TRAN-1 belatedly, they have to credit the corresponding amount in the electronic cash register provided that the credit remained unutilized on the cut-off date. Madras High Court Upholds Validity Of Section 6 Of The Tamil Nadu Value Added Tax Act 2006 Case Title: M/s. LG...

Monthly Digest Of Tax Cases: May 2022

Mariya Paliwala

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