Tax Cases Monthly Round Up:August 2023

Indirect Taxes Supreme Court Excise Duty Exemption | To Determine If A Product Falls Under Description "Intravenous Fluids”, Its Composition & Not Its Use Matters : Supreme Court Case Title: Commissioner of Central Excise vs M/s Denis Chem Lab Ltd. & Anr. Citation : 2023 LiveLaw (SC) 650 The Supreme Court has ruled that in order to determine whether a product would fall under the description of “Intravenous Fluids” so as to be eligible for exemption from excise duty, it is the composition of the product in question which is relevant and not whether the product is used for treatment of any particular disease. Delhi High Court DGGI Can’t Be Stopped From Taking Intelligence-Based Enforcement Action When Investigation By Other Authority Is Going On: Delhi High Court Case Title: M/S. Hanuman Enterprises Pvt. Ltd. Versus The Additional Director General Directorate General Of GST Citation: 2023 LiveLaw (Del) 756 The Delhi High Court has held that the Directorate General of Goods and Service Tax Intelligence (DGGI) cannot be stopped from taking intelligence-based enforcement action when investigations by other authorities are going on. Delhi High Court Directs Adjudicating Authority To Process Blackberry’s Claim Of Interest Under Section 11BB Of The Excise Act Case Title: Blackberry India Pvt Ltd. Versus The Assistant Commissioner, Central Excise And CGST Division The Delhi High Court has directed the adjudicating authority to process Blackberry’s claim of interest under Section 11BB of the Excise Act. Section 67(2) Of The GST Act Does Not Empower Seizure Of Currency Available In Premises During Search: Delhi High Court Case Title: Rajeev Chhatwal Versus Commissioner Of Goods And Services Tax (East) The Delhi High Court has held that Section 67(2) of the GST Act does not empower the seizure of currency available on premises during a search Bombay High Court No Order On Merits Can Be Passed If Appeal Is Defective For Non-Production Of Certified Copy: Bombay High Court Case Title: JEM Exporter Versus Union of India The Bombay High Court has held that if the appeal is defective for non-production of a certified copy, failure to deposit, or incorrect signatures, no order on merits can be passed. The appellate authority erred in law in passing an order on the merits. Bombay High Court Shifting Of Commissionerates, Re-Organisation Of Office, Not A Valid Justification For Inordinate Delay In SCN Adjudication: Bombay High Court Case Title: Coventry Estates Pvt. Ltd. Versus The Joint Commissioner CGST and Central Excise The Bombay High Court has held that the belated hearing of the show cause notice would amount to a violation of the principles of natural justice. Royalty Payment For Use Of Technology Is Inextricably Linked With Manufacturing Activity: Bombay High Court Case Title: Cummins India Limited Versus ACIT The Bombay High Court has held that the transaction of payment of royalty for the use of technology is inextricably linked with manufacturing activity and should be aggregated with other international transactions in the manufacturing segment for the purposes of benchmarking it. Karnataka High Court ATM Management Service To Banks Are Pure Services, No VAT Payable: Karnataka High Court Quashes Re-assessment Case Title: FIS Payment Solutions And Services India Private Limited Vesrsus The State Of Karnataka The Karnataka High Court has quashed the re-assessment and held that ATM management services to banks are pure services and will not attract Value Added Tax (VAT). Calcutta High Court Buyer Not Liable For Seller's Default: Calcutta High Court Set Aside ITC Reversal Demand Against Buyer Case Title: Suncraft Energy Private Limited And Another Versus Assistant Commissioner The Calcutta High Court has held that before directing the recipient of service or buyer to reverse the input tax credit and remit it to the government, the department ought to have taken action against the selling dealer. Assessee Ought To Have Waited For Relevant Form To Go Live On GST Portal Instead Of Making Illegal Adjustment: Allahabad High Court Case Title: M/S Tikona Infinet Private Limited vs. State of U.P. and Another Case Citation: 2023 LiveLaw (AB) 242 The Allahabad High Court has held that the assessee ought to have waited for the relevant form to go live on the GST portal instead of making an illegal adjustment. Kerala High Court Classification Of Dr.Reddy’s Senquel-AD As A Mouthwash Or A Medicament: Kerala High Court Remands The Matter Back Case Title: Dr. Reddys Laboratories Ltd. Versus The Commissioner Of Commercial Taxes Citation: 2023 LiveLaw (Ker) 407 The Kerala High Court has remitted the issue of the classification of Dr.Reddy’s Senquel-AD as a mouthwash or a medicament for fresh...

Tax Cases Monthly Round Up:August 2023

Mariya Paliwala

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