Tax Cases Weekly Round-Up: 22 May To 28 May 2022

Supreme Court 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 (GST) 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 Licensing Of Software Products By Microsoft Is Not Taxable In India As Royalty: Delhi High Court Case Title: CIT Versus Microsoft Corporation Citation: 2022 LiveLaw (Del) 483 The Delhi High Court bench of Justice Manmohan and Justice Sudhir Kumar Jain has ruled that licensing of software products by Microsoft in the Territory of India by Microsoft is not taxable in India as royalty. Taxpayers Have Independent Statutory Right To File A Reply To Show Cause Notice And Draft Assessment Order: Delhi High Court Case Title: Ketan Ribbons Pvt Ltd Vs National Faceless Assessment Centre Delhi Citation: 2022 LiveLaw (Del) 498 The Delhi High Court bench of Justice Manmohan and Justice Manmeet Preetam Singh Arora, while directing the National Faceless Assessment Centre (NFAC) to pass the fresh assessment order, held that the taxpayers have an independent statutory right to file a reply to the show cause notice and draft assessment order. Kerala High Court Credit Notes Not Affecting Input Tax Can't Be Treated As Taxable Turnover: Kerala High Court Case Title: Saji Thomas Vs Assistant Commissioner The Kerala High Court bench of Justice S.V. Bhatti, Bechu Kurian Thomas, and Justice Basant Balaji has held that credit notes not affecting input tax already deposited cannot be treated as taxable turnover by the extended meaning of Section 2 subsection (iii) Explanation VII of the Kerala Value Added Tax Act. Calcutta High Court Personal Hearing By Way Of Exchange Of Chat Messages Not An Effective Opportunity Of Personal Hearing: Calcutta High Court Case Title: SREI Equipment Finance Limited versus Additional/Joint/Deputy/Assistant Commissioner of Income Tax and Ors Case Citation: 2022 LiveLaw (Cal) 206 The Calcutta High Court has ruled that personal hearing conducted by way of exchange of chat messages cannot be said to be an effective opportunity of personal hearing to the assessee and that it does not satisfy the test of fairness or the principles of fair play. Madras High Court Madras High Court Upholds Validity Of Section 6 Of The Tamil Nadu Value Added Tax Act 2006 Case Title: M/s. LG Electronics India Pvt Ltd v. The State of Tamil Nadu and Another with connected cases. Citation: 2022 LiveLaw (mad) 227 The Madras High Court recently upheld the validity of amendments made to Section 6 of The Tamil Nadu Value Added Tax Act, 2006. The court observed that in matters relating to tax, the interest of the State must be considered as against the interest of certain individuals. Rajasthan High Court Constitutionality Of First Proviso To Section 148 Of Income Tax Act, Rajasthan High Court Issues Notice To Govt. Case Title: Maya Rathi Versus ITO The Rajasthan High Court bench headed by Acting Chief Justice Manindra Mohan Shrivastava and Justice Sameer Jain has issued the notice to the government on a plea challenging the validity of the first proviso to section 148 of the Income Tax Act by granting arbitrary powers to the AO. Orissa High Court ITC Transfer From One State To Another Is Not An Inward Supply: Orissa High Court Case Title: M/s. JSW Steel Ltd. Versus Union of India The Orissa High Court bench of Justice Jaswant Singh and Justice M.S. Raman has ruled that an input service distributor (ISD) can claim ITC only in the case of an inward supply, and an ITC transfer from one state to another is not an inward supply. Meghalaya High Court Income Tax Act | No Order Can Be Passed U/S 148A(d) Without Taking Into Consideration Reply Filed By Assessee To Notice U/S 148A(b):Meghalaya HC ...

Tax Cases Weekly Round-Up: 22 May To 28 May 2022

Mariya Paliwala

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