Tax Cases Weekly Round-Up: 20 November to 26 November 2022

Supreme CourtSupreme Court Declines To Grant Relief In Department's SLP Against Judgement On Countervailing Duty Case Title: Union of India versus Real Strips Ltd. The Supreme Court adjourned without issuing notice, the department's appeal against the Gujarat High Court's judgement in the case of countervailing duty (CVD). The bench of Justice Sanjeev Khanna, and Justice J K Maheshwari, while observing in favor of the domestic industry, repeatedly directed the government to follow the judgment of the Gujarat High Court to avoid unnecessary litigation. Supreme Court Dismisses Department's SLP Against HC Decision Holding That Entrance Fees Received By Club From Its Member Is Capital Receipts Case Title: PCIT Versus Royal Western India Turf Club The Supreme Court bench of Chief Justice of India, Justice D.Y. Chandrachud, and Justice Hima Kohli has dismissed the special leave petition of the department challenging the decision of the Bombay High Court. The Bombay High Court has held that any sum paid by a member of a club to acquire the rights of a club is a capital receipt and not a revenue receipt. Delhi High Court Assessment order passed against the dead person without bringing on record legal heirs is Void: Delhi High Court Case Title: Vikram Bhatnagar Versus ACIT Citation: 2022 LiveLaw (Del) 1093 The Delhi High Court has quashed the assessment order passed against the dead person without bringing on record all his legal representatives is void. The division bench of Justice Manmohan and Justice Manmeet Pritam Singh Arora has observed that the death of the assessee was duly communicated by his legal heirs. The ITR also duly disclosed that it was filed by the legal representative. However, due to a lack of knowledge of the facts on the record, the scrutiny proceedings were wrongfully conducted in the name of the deceased assessee without bringing all of his legal heirs to the record as required by law. Physical verification of business premises; GST dept failed to issue notice : Delhi High Court Case Title: Bimal Kothari Versus Assistant Commissioner The Delhi High Court has held that the GST department failed to issue the notice to the person who must be present at the time of physical verification of business premises. The division bench of Justice Rajiv Shakdher and Justice Tara Vitasta Ganju has observed that the verification report, though generated, has not been uploaded, as required, in Form GST REG-30 on the common portal. Delhi High Court Quashes Assessment Order Passed Without Issuing Draft Assessment Order Case Title: RMSI Private Limited Versus NaFAC The Delhi High Court has quashed the assessment order passed without issuing a show cause notice or a draft assessment order which has been mandated under Section 144B(1)(xvi)(b) of the Income Tax Act. The division bench of Justice Manmohan and Justice Navin Chawla has directed the department to issue a show-cause notice within four weeks. The Office Of NaFAC In Delhi Confer Jurisdiction When JAO Is Outside Delhi? Delhi High Court Refers The Issue To Larger Bench Case Title: GPL-RKTCPL JV Versus NaFAC The Delhi High Court has referred to the larger bench the question of whether the presence of National Faceless Assessment Centre (NaFAC) in Delhi is sufficient to hear a writ petition when the Jurisdictional Assessing Officer (JAO) is located outside of Delhi. The division bench of Justice Manmohan and Justice Manmeet Pritam Singh Arora has directed that the matter be placed before the Chief Justice for the constitution of a larger bench. Bombay High Court Notification Granting IGST Exemption To Capital Goods Imported Under EPCG scheme Is Clarificatory, Curative: Bombay High Court Case Title: M/s. Sanathan Textile Pvt. Ltd. Versus Union of India The Bombay High Court has held that notification no. 79/2017-Customs dated October 13, 2017, amending notification no. 16/2015-Customs and granting exemption from the IGST to the capital goods imported under the Export Promotion Capital Goods Scheme (EPCG Scheme) is clarifying and curative. The division bench of Justice K.R. Sriram and Justice Arif S. Doctor has directed the department to refund in cash the IGST paid on imports of capital goods made during the period 01.07.2017 to 12.10.2017. Import Of New/Unused Jewellery For Remaking After Melting In An SEZ, Is Permissible; Bombay High Court Sets Aside Levy Of Customs Duty Case Title: M/s. Renaissance Global Limited versus Union of India & Ors. (Writ Petition No.2003 of 2009) The Bombay High Court has ruled that import of finished jewellery for the purpose of melting and remaking of fresh pieces of jewellery in a Special Economic Zone (SEZ), is an authorised operation. Therefore, the Court held that there is no prohibition on import of finished jewellery for remaking, without payment of Customs Duty, in...

Tax Cases Weekly Round-Up: 20 November to 26 November 2022

Mariya Paliwala

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