Indirect Tax Cases Monthly Round Up: January 2024

Supreme Court Hiring Of Motor Vehicle Or Cranes Is Not 'Sale Of Goods' If Control Over Equipment Is Retained By Contractor, VAT Can't Be Levied: Supreme Court Case Title: M/s. K.P. Mozika v Oil and Natural Gas Corporation Ltd. & Ors. Citation: 2024 LiveLaw (SC) 26 The Supreme Court has held that the hiring of motor vehicles/cranes from a contractor is a service and would not attract Sales Tax or Value Added Tax (VAT) assuming the transaction to be the sale of goods. The Court clarified that the transfer of the right to use the goods not only includes possession but also control over goods by the user. If the control over the goods remains with the contractor during the hire period, then it cannot be termed as sale of goods and only service tax can be levied. Definition Of 'Manufacture' U/s 2(e)(1) Of UP Trade Tax Act Does Not Include Blending And Packaging Tea: Supreme Court Case Title: Commissioner Of Trade Tax, U.P. v. M/s Mishra Tea Blending And Packing Industries, UP [CIVIL APPEAL NOS. 5677-5678/2011] Citation: 2023 LiveLaw (SC) 1076 Recently, the Supreme Court has held that the definition of 'manufacture' under Section 2(e)(1) of the U.P. Trade Tax Act, 1948 does not include blending and packaging tea. Supreme Court Dismisses UP Govt.'s Appeal Against Allahabad HC Order Quashing Demand Of Rs. 235.52 Crores Against VIVO Case Title: State of Uttar Pradesh and Anr. v. M/s Vivo Mobile India Private Ltd. & Ors. On Thursday(January 4), the Supreme Court dismissed a Special Leave Petition filed by the State of Uttar Pradesh against the order of the Allahabad High Court quashing the demand of Rs. 235.52 Crores raised against Vivo Mobile India Private Limited raised by GST Authorities vide order under Section 74(9) of the Goods and Service Tax Act 2017. [Limitation Act] Allahabad High Court Extends Benefit Of Exclusion Of Time U/S.14 To Appeals Under S.107 CGST Act Case Title: Murli Packers Through Its Proprietor Rakesh Kumar Jain vs. State Of U P Through Secretary, Institutional Finance Case Citation: 2024 LiveLaw (AB) 52 On Wednesday, the Allahabad High Court directed the Additional Commissioner, CGST, (Appeals), Meerut, to grant benefit of Section 14 of the Limitation Act to the petitioner and hear the appeal filed under Section 107 of Central Goods and Service Tax Act, 2017 afresh. CGST Act | Time Extension For Filing Appeal Against Orders U/S 73, 74 Can Be Extended To Orders U/S 129, 130: Allahabad HC Asks CBIT To Consider Case Title: M/S Veira Electronics Private Limited vs. State Of U.P. And 2 Others 2024 LiveLaw (AB) 54 [WRIT TAX No. - 1188 of 2023] Case Citation: 2024 LiveLaw (AB) 54 The Allahabad High Court directed the Central Board of Indirect Taxes, Ministry of Finance to consider extending the benefit of extension of time to file appeal under Section 107(1) of the Central Goods and Services Act, 2017 to orders passed under Section 129 and Section 130 of the Act. GST | Show Cause Notice A Vital Checkpoint, Delineates Boundaries Within Which Any Authority Can Operate: Allahabad High Court Case Title: M/S Associated Switch Gears and Projects Ltd. Through Its Director Jawahar Lal Jain vs. State of U.P., Through Secretary Institutional Finance U.P. Govt. And 2 Others 2024 LiveLaw (AB) 57 Case Citation: 2024 LiveLaw (AB) 57 The Allahabad High Court has held that authorities cannot travel beyond the show cause notice to impose penalty on the assesee. Writ Of Certiorari Not Issued As A Matter Of Course, But Granted At Discretion Of Superior Court: Allahabad High Court Case Title: M/S Falguni Steels vs. State Of U.P. And Others Case Citation: 2024 LiveLaw (AB) 59 The Allahabad High Court has held that the writ of certiorari is discretion granted to a superior court to review and quash decisions of lower courts, tribunals, or administrative bodies and is not issued as a matter of course. GST | Technical Error Without Any Financial Implications Do Not Attract Penalties: Allahabad High Court Case Title: M/S Falguni Steels vs. State Of U.P. And Others 2024 LiveLaw (AB) 59 Citation: 2024 LiveLaw (AB) 59 The Allahabad High Court has held that mere technical errors under tax laws without any financial implications should not be grounds for imposition of penalties. Delhi High Court Coconut Oil Sold By Amway As Hair Oil, Not Classifiable As Edible Oil Under DVAT Act: Delhi High Court Case Title: Amway India Enterprises Private Limited Versus Commissioner, Vat, Delhi & Ors. The Delhi High Court has held that coconut oil sold by Amway as a hair oil cannot be classified as edible oil under the DVAT Act. Taxpayer Not Provided Opportunity To Object To Retrospective Cancellation Of GST Registration: Delhi High Court Directs Restoration Case Title: M/S Een Een Sales Corporation Versus Assistant...

Indirect Tax Cases Monthly Round Up: January 2024

Mariya Paliwala

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