Tax Cases Weekly Round-Up: 30 April to 6 May, 2023

Supreme Court Section 16-B Of Himachal Pradesh General Sales Tax Act Is Not Ultra Vires Any Provision Of Law: Supreme Court Reiterates Case Title: State of Himachal Pradesh & Ors. vs M/s A.J. Infrastructures Pvt Ltd & Anr. Citation : 2023 LiveLaw (SC) 366 The Supreme Court has ruled that Section 16-B of the Himachal Pradesh General Sales Tax Act, 1968 (HPGST Act) is not ultra vires any provision of law. The bench comprising Justices S. Ravindra Bhat and Dipankar Datta set aside the judgment of the Himachal Pradesh High Court where it had held that Section 16-B of the HPGST Act was inconsistent with Section 35 of the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 (SARFAESI Act) and was ultra vires the provisions of the Constitution of India. Supreme Court Upholds Requirement Of ‘Pre-Import Condition’ To Claim IGST And GST Compensation Cess On Imports Made Under ‘Advance Authorization’ Case Title: Union of India & Ors. vs Cosmo Films Ltd Citation : 2023 LiveLaw (SC) 377 The Supreme Court has upheld the requirement of ‘pre-import condition’ incorporated in the Foreign Trade Policy of 2015-2020 (FTP) and Handbook of Procedures 2015-2020 (HBP) to claim exemption of Integrated Goods and Services Tax (IGST) and GST Compensation Cess on inputs imported into India for manufacture of export goods, on the basis of ‘Advance Authorization’. In 'Works Contract', Assessee Liable To Pay Service Tax On Service Element & Sales Tax On Goods Transferred : Supreme Court Case Title: CC and CE and ST, Noida vs M/s Interarch Building Products Pvt Ltd Citation : 2023 LiveLaw (SC) 393 The Supreme Court has ruled that the value of the service portion in the execution of the works contract has to be determined as per Rule 2A of Service Tax (Determination of Value) Rules, 2006, or as per the Works Contract (Composition Scheme for Payment of Service Tax) Rules, 2007 (Composition Scheme), if adopted by the assessee, and that the assessee has to pay service tax on the service element and can claim CENVAT Credit only on the said amount. Mere Broad-Basing Of Entries Under Central Excise Tariff Act, Cannot Justify Re-Classification, Without Change In Nature, Character Or Use Of The Product: Supreme Court Case Title: Commissioner of Customs, Central Excise and Service Tax, Hyderabad vs Ashwani Homeo Pharmacy Citation : 2023 LiveLaw (SC) 397 The Supreme Court has ruled that the classification of a product under the Central Excise Tariff Act, 1985, cannot be changed merely on the ground of change of tax structure or tariff entries, without showing a change in the nature and character of a product or a change in the use of the product(Commissioner of Customs, Central Excise and Service Tax, Hyderabad vs Ashwani Homeo Pharmacy). Delhi High Court Delhi High Court Allows Appeal Of Poor Daily Wage Earners Against Seizure Of Goods Without Pre-Deposit Case Title: Mohammed Akmam Uddin Ahmed & Ors. Versus Commissioner Appeals Customs And Central Excise Citation: 2023 LiveLaw (Del) 357 The Delhi High Court has allowed the appeals of poor daily wage earners against the seizure of goods without insisting on the requirement of pre-deposit. Bombay High Court Bombay High Court Upholds The Validity Of Goa Tax on Entry of Goods Act, 2000 Case Title: M/s Bharti Telemedia Ltd. Versus State of Goa The Bombay High Court has upheld the validity of the Goa Tax on Entry of Goods Act, 2000. The bench of Justice M. S. Sonak & Justice Valmiki Sa Menezes relied on the decision of the 9-judge bench of the Supreme Court in the case of Jindal Stainless Limited and another vs. State of Haryana and ors. which upheld the constitutional validity of entry taxes imposed by states on goods coming in from other states. Bombay High Court Directs Sales Tax Commissioner To Determine Applicability Of VAT On Road Tax, Insurance Premium, Octroi Duty Case Title: Modi Car Agencies Pvt. Ltd. Versus The State of Maharashtra and Ors. The Bombay High Court has directed the sales tax commissioner to determine the applicability of VAT on road tax, insurance premiums, and octroi duty. Madras High Court Assessee Was Given Only 13 Hours Time To Reply To The Show-Cause Notice: Madras High Court Quashes Assessment Case Title: Sundaresan Suresh Kumar Versus Assessment Unit The Madras High Court has quashed the assessment as the assessee was given only 13 hours to reply to the show-cause notice. Kerala High Court Profile Of An Assessing Authority Can’t Be Stern And Unreasonable, Programmed Solely To Collect Tax: Kerala High Court Case Title: Prodair Air Products India Private Limited Versus State Of Kerala The Kerala High Court has held that the profile of an assessing authority can no longer be that of a stern and unreasonable...

Tax Cases Weekly Round-Up: 30 April to 6 May, 2023

Mariya Paliwala

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