Tax Cases Weekly Round-Up: 8 To 14 October, 2023

Supreme Court Customs Duty - Undervaluation Must Be Proved By Evidence Of Prices Of Contemporaneous Imports; Else Benefit Of Doubt Goes To Importer : Supreme Court Case Title: Commissioner of Customs (Imports), Mumbai v. M/s Ganpati Overseas Citation : 2023 LiveLaw (SC) 864 The Supreme Court has recently highlighted that the transaction value (the price actually paid or payable for the goods) should be the primary basis for customs valuation and that other valuation methods be invoked sequentially only when there is evidence to doubt the correctness of the declared transaction value. Services Provided to IIT & NIT Exempt From Service Tax: Supreme Court Holds After Interpreting 'Or' & Semicolon In Exemption Notification Case Title : Commissioner, Customs Central Excise and Service Tax, Patna v. M/s Shapoorji Pallonji and Company Pvt Ltd; Union of India v.M/s Shapoorji Pallonji and Company Pvt Ltd Citation : 2023 LiveLaw (SC) 885 In an interesting judgment, the Supreme Court held that the Indian Institute of Technology and the National Institute of Technology will come under the Mega Service Tax Exemption Notification issued by the Department of Revenue in 2012(and amended and clarified by a subsequent notification issued in 2014). Delhi High Court Travelling Expenses Incurred By Directors For Business Purposes And Not Personal, Delhi High Court Allows Travel Expenses Case Title: PCIT Versus M/S. Azure Retreat Pvt Ltd The Delhi High Court has held that the travelling expenses were incurred by the directors for business purposes of the company. Delhi High Court Quashes Order Exempting Indian Trade Promotion Org. From Entertainment Tax On Trade Fairs Case Title: Govt. Of NCT Of Delhi & Ors. Versus M/S Indian Trade Promotion Org. & Ors The Delhi High Court has quashed the order of the Financial Commissioner exempting the Indian Trade Promotion Organization from entertainment tax on trade fairs. Statutory Appeal Period Under Customs Act, Appellate Authority Has No Power To Condone Delay: Delhi High Court Case Title: Shambhu Synthetics Pvt. Ltd Versus Commissioner Of Customs The Delhi High Court has held that the appellate authority has no power to allow the appeal to be presented beyond the period of 30 days. Delhi High Court Allows Deduction To Hyatt Regency Towards Repair, Renovation, Refurbishment, Consultancy Expenses As Revenue Expenditure Case Title: M/S Asian Hotels Ltd. Versus CIT The Delhi High Court has allowed the income tax deduction to Hyatt Regency towards repair, renovation, refurbishment, and consultancy expenses as revenue expenditure. Active Involvement In Customs Duty Evasion: Delhi High Court Dismisses Plea Seekings Directions For Pre-Deposit Waiver Case Title: Ajay Sagar Versus Principal Commissioner Of Customs (Import) The Delhi High Court, while dismissing the petition seeking directions for waiver of the pre-deposit requirement as placed in terms of Section 129E of the Customs Act, 1962, noted that the case of the petitioner does not fall under the category of rare and exceptional cases. Madras High Court Dept. Failed To Produce New Or Tangible Information To Justify The Reopening Of Assessment Against IDFC: Madras High Court Case No.: IDFC Limited Versus The Deputy Commissioner of Income Tax The Madras High Court has quashed the reassessment proceedings against the IDFC as the department failed to produce any new or tangible information to justify the reopening of the assessment. Jharkhand High Court Wrong Collection Of TCS On Purchase Of Coal For Generation Of Power: Jharkhand High Court Directs Refund Case Title: Adhunik Power & Natural Resources Ltd. Versus Central Coalfields Limited The Jharkhand High Court has directed the Tax Collected as Source (TCS) refund wrongfully collected despite verifying purchase of coal was used for generation of power. Wrong Collection Of TCS On Purchase Of Coal For Generation Of Power: Jharkhand High Court Directs Refund Case Title: Adhunik Power & Natural Resources Ltd. Versus Central Coalfields Limited Citation: 2023 Livelaw (Jha) 59 The Jharkhand High Court has directed the Tax Collected as Source (TCS) refund wrongfully collected despite verifying purchase of coal was used for the generation of power. Calcutta High Court Calcutta High Court Upholds Constitutional Validity Of Explanation to Section 10AA(1) Inserted By Finance Act 2017 Case Title: IFGL Refractories Ltd. & Anr. Versus Union of India & Ors. The Calcutta High Court has upheld the constitutional validity of the explanation to Section 10AA(1) of the Income Tax Act inserted by the Finance Act 2017. Kerala High Court Difficulties Faced On Initial Phase Of GST Implementation, Kerala High Court Sets Aside Disallowance Of ITC Citation: 2023...

Tax Cases Weekly Round-Up: 8 To 14 October, 2023

Mariya Paliwala

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