Tax Cases Monthly Round-Up: October, 2022

Indirect Taxes Supreme court Supreme Court Directs Andhra Pradesh To Transfer To Jharkhand CST Collected From Tata Motors In Respect To Sale To APSRTC Case Title: Tata Motors Limited Versus Central Sales Tax Appellate Authority & Others Citation: 2022 LiveLaw (SC) 847 The Supreme Court has directed the state of Andhra Pradesh to transfer to Jharkhand the amount of central sales tax deposited by Tata Motors with respect to the sale of buses to the Andhra Pradesh State Road Transport Corporation (APSRTC). The division bench of Justice M.R. Shah and Justice Krishna Murari observed that after due verification, the amount of central sales tax paid by Tata Motors with respect to the transaction be transferred to Jharkhand immediately on verification. The State of Jharkhand was directed to adjust it towards the central sales tax liability of Tata Motors on sales effected through RSO, Vijayawada with respect to vehicles/buses sold to APSRTC, which were found to be in the nature of inter-state sales. Delhi High Court SCN Without Any Reasons: Delhi High Court Quashes Order Cancelling GST Registration Case Title: Balaji Enterprises Versus Principal Additional Director General Citation: 2022 LiveLaw (Del) 986 The Delhi High Court has quashed the order cancelling the GST registration as the Range Inspector has physically verified the premises, neither by serving any notice of the physical verification nor in the report generated after the verification was uploaded on the portal. The division bench of Justice Rajiv Shakdher and Justice Tara Vitasta Ganju has observed that there was an infraction of the provisions of Rule 25 of the CGST and the order has gone beyond the frame of the Show Cause Notice. Delhi High Court Directs IGST Refund After Deducting Differential Amount Of Duty Drawback Case Title: Kishan Lal Kuria Mal International versus Union of India Citation: 2022 LiveLaw (Del) 949 The Delhi High Court has directed the department to grant IGST refund paid on the goods exported after deducting the differential amount of duty drawback. The division bench of Justice Manmohan and Justice Manmeet Pritam Singh Arora has observed that the Jurisdictional Commissionerates shall be entitled to verify the extent of duty drawback availed by the petitioners and also whether they have availed duty drawback/CENVAT Credit of Central Excise & Service Tax component in respect of the exports made by them. If any adjustment is to be made, it shall be made by the jurisdictional commissionerate. Preventing Docket Explosion - Pre-SCN Consultation Should Be Held : Delhi High Court Case Title: M/s Victory Electric Vehicles International Pvt. Ltd. Versus Union of India Citation: 2022 LiveLaw (Del) 950 The Delhi High Court has held that it is obligatory on the part of the concerned officer to ensure that prior to the issuance of the show-cause notice (SCN), a pre-notice consultation is held with the person chargeable with customs duty or interest. The division bench of Justice Rajiv Shakdher and Justice Tara Vitasta Ganju has observed that the person chargeable with duty or interest was required to be given fifteen days to make his submission, in writing, concerning the grounds communicated to him in the pre-consultation notice, which is required to be served prior to the issuance of the SCN. Rate Reduction Benefit By Reduction In Prices: Delhi High Court Directs Loreal To Deposit Principal Profiteered Amount Case Title: Loreal India Private Limited Versus Union Of India The Delhi High Court has directed Loreal to deposit the principal profiteered amount after deducting the GST imposed on the net profiteered amount in six equal instalments. The division bench of Justice Manmohan and Justice Dinesh Kumar Sharma has observed that the interest amount directed to be paid by the department as well as the penalty proceedings and investigation by the National Anti-Profiteering Authority (NAA) in respect of other products sold by Loreal has stayed till further orders. Bombay High Court Subleasing Of Containers; Deemed Sale, Service Tax Not Applicable; Bombay High Court Case Title: Nayana Premji Savala versus The Union of India & Ors. Citation: 2022 LiveLaw (Bom) 404 The Bombay High Court has ruled that service tax would be applicable on transfer of goods only in cases where there is no "transfer of right to use" the said goods. The bench of Justices K. R. Shriram and A. S. Doctor ruled that in view of Article 366(29A)(d) of the Constitution of India, transfer of right to use goods is a deemed sale, which is subject to Sales Tax/VAT. The Court added that Article 366 (29A) of the Constitution does not distinguish between an owner or a lessor of the goods. Thus, the bench ruled that lease of goods for valuable consideration on a "transfer of right to use" basis is a deemed sale, even if the...

Tax Cases Monthly Round-Up: October, 2022

Mariya Paliwala

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