Tax Cases Monthly Round Up: November 2023

Supreme Court Supreme Court Affirms Penalty On 'Zarda' Manufacturers For Misclassifying Product As 'Chewing Tobacco' For Central Excise Duty Case Title: Commr. Of Cen. Exc. Ahmedabad v M/S Urmin Products P. Ltd. And Others Citation: 2023 LiveLaw (SC) 949 The Supreme Court while adjudicating a matter wherein the Assesssee deliberately misclassified the ‘Zarda’ produced by it as ‘Chewing Tobacco’ for evading payment of a high duty as applicable to ‘Zarda’, has affirmed the imposition of penalty and demand for payment of differential duty raised by the Central Excise Department from the Assessee. UP VAT Act | Assessee Entitled To Claim Full Input Tax Credit On Exempted Goods Produced As By-Products Or Waste Products During Manufacturing Of Taxable Goods: Supreme Court Case details: M/S Modi Naturals Ltd v The Commissioner of Commercial Tax UP Case No.: 2023 LiveLaw (SC) 976 The Supreme Court while relying on Explanation (iii) to Section 13 of Uttar Pradesh Value Added Tax Act, 2008 (“UP VAT Act”), has held that if during the manufacture of any taxable good any tax exempted goods are produced as by-product/waste product, then it shall be deemed that the goods purchased from within the State for such manufacturing have been used in manufacture of taxable goods alone. Thus, the Assessee would be entitled to claim full benefit of Input Tax Credit (“ITC”) in respect of taxable goods purchased from within the State. UP VAT Act | Definition Of “Goods” Under Sec. 2(m) And Sec. 13(1)(f) Includes Taxable As Well As Exempted Goods: Supreme Court Case details: M/S Modi Naturals Ltd v The Commissioner of Commercial Tax Up The Supreme Court has held that the definition of “Goods” under Section 2(m) of Uttar Pradesh Value Added Tax Act, 2008 (“UP VAT Act”) includes both taxable as well as exempted goods. Similarly, the word “goods” under Section 13(1)(f) of the UP VAT Act cannot be said to be qualified by the word “taxable”. Delhi High Court Appellant Was Pursuing Review Petition In Good Faith, Delhi High Court Condones Delay In Filing Appeal Against ITAT Order Case Title: Resorts Consortium India Limited Versus ITAT Citation: 2023 LiveLaw (Del) 1178 The Delhi High Court has condoned a 79-day delay in filing an appeal as a review petition was filed before the Income Tax Appellate Tribunal (ITAT). Reassessment Notice Severed At Old Address Despite Knowing Assessee’s New Address: Delhi High Court Quashes Assessment Order Case Title: PCIT Versus M/S Dart Infrabuild (P) Ltd. The Delhi High Court has quashed the assessment order as the notice under Section 148 was improperly served as it was sent to the old address, despite the fact that the department was aware of the new address. Seized Cash Should Be Treated As Advance Tax As Per Law, There Was No Default In Payment Of Advance: Delhi High Court Case Title: Ashok Kumar Aggarwal Versus ACIT The Delhi High Court has held that the seized cash was offered by the assessee, under the regime that was prevailing then, to be treated as the advance tax, and thus there was no default in payment of the advance. Although its payment or adjustment was triggered due to a search action. No Recovery Towards TAS Can Be Made Towards Deductee Even If Deductor Is Undergoing CIRP: Delhi High Court Case Title: BDR Finvest Pvt. Ltd. Versus DCIT The Delhi High Court has held that no recovery towards Tax at Source (TAS) can be made towards the deductee even if the deductor is undergoing the Corporate Insolvency Resolution Process (CIRP). Delhi High Court Upholds ITAT’s Decision On Selection Of Comparables For Determination Of Arm’s Length Price Of An International Transaction Case Title: PCIT Versus M/S Chrys Capital Investment Advisors (India) Pvt. Ltd. The Delhi High Court had upheld the decision of the Income Tax Appellate Tribunal (ITAT) on the selection of comparables for the determination of the arm’s length price of an international transaction. CENVAT Credit Refund Can’t Be Denied In Absence Of Self-Assessed Return Having Been Questioned, Reviewed Or Re-Assessed: Delhi High Court Case Title: BT (India) Private Limited Versus UOI Citation: 2023 LiveLaw (Del) 1082 The Delhi High Court has held that a CENVAT credit refund cannot be denied in the absence of the self-assessed return having been questioned, reviewed or re-assessed. Delhi High Court Quashes Suspension Of License, Issued To Customs House Agent, Finding Order Illegal Case Title: Commissioner of Customs Versus ICS Cargo Citation: 2023 LiveLaw (Del) 1064 The Delhi High Court has held that there was proper verification on the part of the Customs House Agent (CHA) with regard to the genuineness of the Importer-Exporter Code (IEC) as well as GSTIN. ITR-Filing Date Is Relevant For Calculating Section 143(2) Limitation And...

Tax Cases Monthly Round Up: November 2023

Mariya Paliwala

Tags