All India Tax Cases Half Yearly Digest: January To June 2022

Indirect Tax 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. Tax Exemption Notification Must Be Construed Strictly; Promissory Estoppel Not Applicable In Taxing Matters: Supreme Court Case Name: State of Gujarat v. Arcelor Mittal Nippon Steel India Limited Citation: 2022 LiveLaw (SC) 79 The Supreme Court reinstated the order of the Revenue levying demand of purchase tax and imposing penalty on Arcelor Mittal Nippon Steel India Limited (erstwhile Essar Steel Ltd.) for availing tax benefits without fulfilling all the eligibility criteria/condition of the Scheme For Special Incentives to Prestigious Units floated by the Gujarat Government in 1991. Supreme Court Rules Tata Steel Has Locus Standi To Challenge Denial Of Input Tax Credit To Its Unit Case Title: Tata Steel Ltd Versus The State Of Jharkhand And Ors. A Bench of Supreme Court, consisting of Justices Sanjiv Khanna and Bela M. Trivedi, remanded a matter back to Jharkhand High Court for a fresh decision on Tata Steel's writ petition against the denial of input tax credit to its Naomundi unit. GST Evasion Can't Be Presumed Merely Because Goods Were Delivered After Expiry Of E-Way Bill Due To External Factors Like Traffic Block: Supreme Court Case Name: Assistant Commissioner (ST) And Ors. v. M/s. Satyam Shivam Papers Pvt. Ltd. And Anr. Citation: 2022 LiveLaw (SC) 87 The Supreme Court has observed that non-extension of e-way bill would not automatically amount to evasion of tax, especially when the non-delivery of goods within the validity period of the e-way bill was due to external factors, like, traffic blockage. A Bench comprising Justices Dinesh Maheshwari and Hrishikesh Roy dismissed an appeal filed by the Revenue Department assailing the order of the Telangana High Court, which had set aside the order, imposing tax and penalty passed by a Deputy Sales Tax Officer, with cost. Service Tax - Exemption Notification Should Not Be Liberally Construed ; Assessee Has To Show That He Comes Within Its Purview: Supreme Court Case: Krishi Upaj Mandi Samiti, New Mandi Yard, Alwar vs Commissioner of Central Excise and Service Tax, Alwar Citation: 2022 LiveLaw (SC) 203 The Supreme Court observed that exemption notification should not be liberally construed and it is for the assessee to show that he comes within the purview of the notification. The bench comprising upheld the order passed by Customs, Excise and Service Tax Appellate Tribunal, Principal Bench, New Delhi which held that the Krishi Upaj Mandi Samiti (Agricultural Produce Market Committees) located in different parts of State of Rajasthan liable to pay service tax under the category of "renting of immovable property service" for the period upto 30.06.2012. Whether Product `Nimbooz' Can Be Classified Under Item `Lemonade' Or `Fruit Pulp Or Fruit Juice Based Drinks': Supreme Court To Consider Case Title: Commissioner Of Central Excise Hyderabad-I V. M/S...

All India Tax Cases Half Yearly Digest: January To June 2022

Mariya Paliwala

Tags