Tax Cases Weekly Round-Up: 16 April To 22 April, 2023

Supreme Court Transfer Pricing | High Courts Not Precluded From Scrutinising ITAT’s Determination Of Arm’s Length Price : Supreme Court Case Title: SAP Labs India Private Limited vs Income Tax Officer, Circle 6, Bangalore Citation : 2023 LiveLaw (SC) 328 The Supreme Court has ruled that the High Court is not precluded from considering the determination of the arm’s length price determined by the Income Tax Appellate Tribunal (ITAT), in exercise of its powers under Section 260A of the Income Tax Act, 1961. Delhi High Court Assessment Order Issued Without DIN, Invalid; S. 292B Of ITA Not Applicable: Delhi High Court Case Title: The Commissioner of Income Tax (International Taxation) vs Brandix Mauritius Holdings Ltd Citation: 2023 LiveLaw (Del) 329 The Delhi High Court has upheld the order of the Income Tax Appellate Tribunal (ITAT) where it had set aside the assessment order issued by the Income Tax Department without quoting the Document Identification Number (DIN). No Justification For Not Adjudicating The Notice For More Than 13 Years After Its Issuance: Delhi High Court Case Title: Nanu Ram Goyal Versus Commissioner Of CGST And Central Excise, Delhi Citation: 2023 LiveLaw (Del) 332 The Delhi High Court has held that there is no justification for not adjudicating the notice for more than thirteen years after its issuance. The bench of Justice Vibhu Bakhru and Justice Amit Mahajan has observed that the larger public interest requires that the Revenue Department and its officials adjudicate the show cause notice expeditiously and within a reasonable time. Bombay High Court Constitutionality Of Taxing Intermediary Services Under GST: Bombay High Court Upholds Validity Of Section 13(8)(b) Of IGST Act Case Title: Dharmendra M. Jani Versus UOI The Bombay High Court has upheld the constitutionality of taxing intermediary services under the IGST Act. Allahabad High Court Allahabad High Court Directs Department To Release The Seized Goods On The Condition Of Payment Of 200% Of The Tax Payable Case Title: S/S S.K. Trading Co Versus Additional Commissioner Grade 2(Appeal) The Allahabad High Court has directed the department to release the seized goods on the condition of payment of 200% of the tax payable on the goods valued at the same on the basis of the valuation as shown in the invoice. Rajasthan High Court Rajasthan High Court Upholds GST Demand On Royalty Paid To The Mining Department Towards Mining Lease Case Title: Rajasthan Granite Mining Association Versus Union of India The Rajasthan High Court has upheld the GST demand on royalty paid to the Mining Department towards mining lease. CESTAT Procedural Lapse Cannot Be The Basis To Deny Service Tax Refund, Defeating The Object Of SEZ: CESTAT Case Title: M/s Lupin Limited Versus Commissioner of Central Goods & Service Tax & Central Excise The Delhi Bench of the Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has held that the beneficial object of establishing the SEZ tax-free, without any burden of duties, means that the procedural lapse, if any, cannot be the basis to deny the refund. Freight And Handling Charges Shown Separately In The Invoice Is Not Includable In The Assessable Value Of The Excisable Goods: CESTAT Case Title: Messrs Mira Industries Versus C.C.E.-Ahmedabad-ii The Ahmedabad bench of the Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has held that freight and handling charges shown separately in the invoice of the appellant are also not includable in the assessable value of the excisable goods. Cricket Player Providing Brand Promotion Services Not Liable To Pay Service Tax: CESTAT Case Title: Ajitesh Kamlesh Argal Versus Commissioner of Central Excise & ST, Vadodara-I The Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has quashed the demand for service tax on remuneration received by the cricket player from M/s. Nike India Pvt. for brand promotion. CESTAT Allows Service Tax Refund On Construction Services Of Complex Provided By The Cooperative Housing Society Case Title: Shantanu Co Operative Housing Society Limited Versus Commissioner of Central Excise & ST, Ahmedabad The Ahmedabad Bench of the Customs, Excise, and Services Tax Appellate Tribunal (CESTAT) has allowed the service tax refund on the construction of complexes provided by the appellant’s cooperative housing society. Suspension Of The Licence Of Broker Is Not Warranted After The Investigation And Issue Of Show Cause Notice: CESTAT Case Title: M/s.India Transport & Travel Private Limited Versus Commissioner of Customs (Airport & ACC), Kolkata The Kolkata Bench of the Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has held that suspension of the license is not warranted after investigation and the...

Tax Cases Weekly Round-Up: 16 April To 22 April, 2023

Mariya Paliwala

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