Tax Cases Weekly Round-Up: 5 March to 11 March 2023

Delhi High Court Issuance Of SCN in Customs Brokers Licensing Regulations, Contemplates Dispatch Of Notice And Not Its Receipt: Delhi High Court Case Title: Commissioner of Customs (Airport & General) vs M/s R.P. Cargo Handling Services The Delhi High Court has ruled that the expression ‘issuance of show cause notice’ in Regulation 20(1) of the Customs Brokers Licensing Regulations, 2013 (CBLR), merely contemplates the dispatch of the notice and not its receipt by the Customs Broker, within the stipulated period. Orissa High Court Kinley Water Falls Within Water, Not Aerated Or Mineral Water, Comes Within Tax Free List: Orissa High Court Case Title: State of Odisha Versus M/s. Hindustan Coca-Cola The Orissa High Court held that the sale of packaged drinking water under the brand name Kinley Water falls within the expression "water but not aerated or mineral water sold in bottles or sealed containers," which is covered under Entry No.39 of the Tax-Free List. Chokad Is Not An Industrial Input: Orissa High Court Quashes Order Imposing 4% VAT Case Title: M/s. Kamadhenu Cattle & Poultry Feed Unit versus The State of Odisha The Orissa High Court has quashed the order imposing a 4% value-added tax (VAT) on the wheat bran (chokad) as it is not an industrial input. Unrealistic To Expect GST Return Filing Without Actual Commencement Of Business: Orissa High Court Directs Dept. To Process Licence Application Case Title: M/s. Galaxy Bar and Restaurant, Nayagarh Versus State of Odisha and others The Orissa High Court has held that the license application should not be rejected only because a GST return has not been filed yet, since it is unrealistic to expect that to happen without the actual commencement of its business. Bombay High Court Who Is The Proper Authority To Decide IGST Refund? Bombay High Court Directs The Dept. To Decide The Bombay High Court has directed the department to decide who has the proper authority to decide on an IGST refund. The division bench of Justice Nitin Jamdar and Justice Abhay Ahuja has noted that the customs authorities claimed that the GST authority is the proper officer for processing refund claims, whereas the GST authorities claim that it is the customs officer. Madras High Court Personal Hearing To Be Granted In All Matters Prior To Finalisation Of Assessment: Madras High Court Case Title: SKS Builders and Promoters Versus Assistant Commissioner (ST) The Madras High Court has held that personal hearings shall be granted in all matters prior to the finalization of assessments, except where the stand of the assessee is intended to be accepted by the department. Calcutta High Court Transporting Goods In A Vehicle Without Proper E-Way Bill Is A breach, Reasons Irrelevant: Calcutta High Court Upholds Penalty Case Title: Asian Switchgear Private Limited Versus State Tax Officer The Calcutta High Court upheld the penalty and stated that there was no requirement in law to verify the reason for transporting goods in a vehicle without a proper e-way bill. AO Issued Income Tax Assessment Notice To Non-Existent Company: Calcutta High Court Imposes Cost Case Title: Orbit Projects Private Limited Vs Income Tax Officer The Calcutta High Court has imposed a fine of Rs. 20,000 on the assessing officer for issuing the income tax assessment notice to the non-existent company. Dept. Vacillating Whether Goods Were In Transit Or In Godown: Calcutta High Court Directs Refund Of Penalty Case Title: Sandip Kumar Singhal Versus Deputy Commissioner, Revenue, Bureau of Investigation North Bengal Headquarter & Ors. The Calcutta High Court has directed the refund of the penalty and held that the department was vacillating between Sections 67 and 68 of the GST Act, depending on whether the goods are in transit or in the godown. Gujarat High Court Reversal of ITC At Midnight During Search And Seizure Operation Can't Be Treated As Voluntary Payment: Gujarat High Court Directs Refund Case Title: Shree Ganesh Molasses Trading Company Versus Superintendent The Gujarat High Court has held that the reversal of input tax credit (ITC) at midnight during search and seizure operations can't be treated as a voluntary payment. The division bench of Justice Sonia Gokani and Justice Sandeep S. Bhatt has directed the department to reverse the ITC to the tune of Rs. 37,68,300 along with 6% interest. ITAT Lease Rent Paid For Acquiring Mining Rights Is Capital In Nature, Income Tax Deduction Not Allowable: ITAT Case Title: ZF Steering Gear (India) Ltd. Versus DCIT The Pune Bench of the Income Tax Appellate Tribunal (ITAT) has observed that lease rent paid for acquiring mining rights is capital in nature and income tax deductions cannot be allowed. Payment Received From Foreign Company On Account Of Business Support Services Not Taxable As FTS: ...

Tax Cases Weekly Round-Up: 5 March to 11 March 2023

Mariya Paliwala

Tags