Tax Cases Monthly Round-Up: February 2023

Indirect Taxes Delhi High Court Budgetary Support Under GST Regime Can’t Be Denied To Eligible Unit: Delhi High Court Case Title: M/s Special Cables Pvt Ltd versus Central Board of Indirect Taxes and Customs & Ors. Citation: 2023 LiveLaw (Del) 120 The Delhi High Court has directed the revenue authorities to grant budgetary support to a manufacturing unit under the “Scheme of Budgetary Support under Goods and Services Tax (GST) Regime”, available to ‘eligible units’ located in specified States. The Court took note that the petitioner was eligible for exemption from Central Excise Duty prior to 01.07.2017, i.e., before the introduction of the GST regime in India, and thus, in terms of the scheme, it was entitled to avail budgetary support. Notification Under S. 5 of FTDR Act Can’t Be Applied Retrospectively To Refuse Advance Authorization To Importer: Delhi High Court Case Title: Jindal Exports and Imports Pvt Ltd vs. Director General of Foreign Trade & Ors. The Delhi High Court has ruled that a notification issued under Section 5 of the Foreign Trade (Development and Regulation) Act, 1992 (FTDR Act), which empowers the Central Government to formulate and announce the foreign trade policy, cannot be applied retrospectively by the Central Government. Bombay High Court GST Act Can’t Be Interpreted To Deny Right To Carry Trade And Commerce By Citizens: Bombay High Court Case Title: Rohit Enterprises Versus The Commissioner State GST Bhavan Citation: 2023 LiveLaw (Bom) 108 The Aurangabad Bench of the Bombay High Court has held that the provisions of the GST enactment cannot be interpreted so as to deny the right to carry on trade and commerce to any citizen or subject. Constitute GST Tribunal To Reduce Needless Litigations In The Form Of Filing Writ Petitions: Bombay High Court Advises CBIC Case Title: Rochem India Pvt. Ltd. Versus CBIC The Bombay High Court has advised the Central Board of Indirect Taxes (CBIC) to construct GST tribunals to reduce needless litigation in the form of filing writ petitions. Karnataka High Court No GST Applicable On Supply Of Vouchers: Karnataka High Court Case Title: M/s Premier Sales Promotion Pvt Ltd versus Union of India & Ors. The Karnataka High Court has ruled that vouchers do not fall under the category of goods and services and therefore, the issue and supply of vouchers would not attract GST. Madras High Court Madras High Court Dismisses Plea By AR Rahman, GV Prakash and Santhosh Narayan Challenging GST Department’s Order Claiming Service Tax Case Title: M/s. Amirta International Institute of Hotel Management v. The Principal Commissioner of CGST & Central Excise Citation: 2023 LiveLaw (Mad) 41 The Madras High Court has recently dismissed the pleas filed by music composers AR Rahman, GV Prakash and Santhosh Narayan challenging the proceedings initiated by the Commissioner of the GST Department levying service tax on transfer of copyright in musical work for the period between 2013 and 2017. No GST Applicable On Supply Of Vouchers: Karnataka High Court Case Title: M/s Premier Sales Promotion Pvt Ltd versus Union of India & Ors. The Karnataka High Court has ruled that vouchers do not fall under the category of goods and services and therefore, the issue and supply of vouchers would not attract GST. The bench of Justices P.S. Dinesh Kumar and T.G. Shivashankare Gowda remarked that vouchers, including Gift Vouchers and Cash Back Vouchers, are mere instruments accepted as consideration for supply of goods or services, which have no inherent value of their own. Madras High Court State GST Authority Can’t Prosecute If The Central Authority Has Already Initiated Action: Madras High Court Case Title: Tvl Metal Trade Incorporation Versus The Special Secretary Citation: 2023 LiveLaw (Mad) 51 The Madras High Court has held that the State Authority cannot prosecute the petitioner once again as the Central Authority has already initiated action against the petitioner in respect of the very same subject matter. Gujarat High Court Sales Tax or VAT Dues Payable Can't Be Claimed As Priority Over Dues Of Secured Creditor: Gujarat High Court The Gujarat High Court has held that Sales tax or VAT dues payable cannot be claimed as priority over dues of the secured creditor. The division bench of Justice N.V. Anjaria and Justice Bhargav D. Karia has observed that the charge in respect of the property in question created for sales tax dues is of no avail and has no efficacy in law. Calcutta High Court GST Dept. Empowered To Detain Vehicle And Seize The Goods: Calcutta High Court Upholds Penalty Case Title: Ashok and Sons (HUF) Vs. Joint Commissioner The Calcutta High Court has held that the GST department was lawfully permitted to impose a penalty under Section 129 as well as the SGST as the goods were found to be ...

Tax Cases Monthly Round-Up: February 2023

Mariya Paliwala

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