Tax Cases Weekly Round-Up: 9 July To 15 July, 2023

Supreme Court Revenue Dept Can't Recover Refunded Cess Amount Because Refund Was Based On A Judgment Which Was Later Overruled : Supreme Court Case Title: Commissioner of CGST and Central Excise (J and K) vs M/s Saraswati Agro Chemicals Pvt. Ltd. Citation : 2023 LiveLaw (SC) 522 The Supreme Court has upheld the decision of the Jammu and Kashmir and Ladakh (J&K&L) High Court where the court had held that the assessee was not liable to return the Education Cess and Secondary & Higher Education Cess in view of the law subsequently laid down by the Supreme Court in M/s Unicorn Industries vs. Union of India, (2020) 3 SCC 492. Delhi High Court MSMED Act Would Not Be Applicable To CA Firms Appointed As ‘Special Auditors’ Under Section 142(2A) Of The Income Tax Act, 1961: Delhi High Court Case Title: PR. COMMISSIONER OF INCOME TAX v. MSECF and Anr, W.P.(C) 13754 of 2019 Citation: 2023 LiveLaw (Del) 568 The Delhi High Court has held that the provisions of MSMED Act, 2006 would not apply to a CA firm appointed as ‘Special Auditor’ under Section 142(2A) of the Income Tax Act (IT Act), 1961. Subsidy Received By Nestle India As Incentive To Establish Industrial Unit Is Capital Receipt: Delhi High Court Case Title: Principal Commissioner Of Income Tax Vs Nestle India Ltd Citation: 2023 LiveLaw (Del) 572 The Delhi High Court observed that the Subsidy received by Nestle India, the assessee as incentive to establish industrial unit is Capital receipt and cannot be adjusted against block of assets. Knowledge Is A Necessary Element For Committing Abetment : Delhi High Court Quashes Penalty Against Customs Broker Case Title: Rajeev Khatri Versus Commissioner Of Customs (Export) The Delhi High Court has quashed the penalty against customs brokers on the grounds that knowledge is a necessary element for committing abetment. Bombay High Court No Material Available To Conclude Income Had Escaped Assessment: Bombay HC Quashes Income Tax Notice Case Title: Maharashtra State Power Generation Company Limited v. Assistant Commissioner of Income Tax The Bombay High Court has provided relief to the Maharashtra State Power Generation Company Limited by quashing the notice issued by the Assistant Commissioner of Income Tax under Section 148 of the Income Tax Act. The court observed a lack of tangible material to support the conclusion that income had escaped assessment, thereby prohibiting any further steps by the tax authorities regarding the notice. Bombay High Court Declares Notices And Proceedings Under Income Tax Act For Deceased Assessee As Null And Void Cause Title: Dhirendra Bhupendra Sanghvi v. Assistant Commissioner of Income Tax While emphasizing that if the concerned officers followed the settled law and refrained from issuing null and void notices, it would be beneficial not only for the citizens but also for the already overburdened courts in the country, the Bombay High Court ruled that all notices and consequential proceedings under the Income Tax Act in the name of a deceased assessee were null and void. State GST Dept. Doesn’t Have Jurisdiction To Retain Amount Of Tax On Export Transactions: Bombay High Court Case Title: Media Net Software Services (India) Pvt. Ltd. Versus Union of India & Ors. The Bombay High Court has held that CGST/MGST authorities would not have jurisdiction to retain the amount of tax on export transactions. Gujarat High Court Gujarat High Court Directs To Release Seized Gold As Outstanding Demand Against Assessee Case Title: Praveenbhai Girdharilal Agarwal Versus Principal Commissioner Of Income Tax (Central) The Gujarat High Court has directed the department to release the 100.350 grams of seized gold as the assessee had no outstanding demand. Gujarat High Court Grants Assessee Permission to Pay Tax Liability in Installments, Lifts Bank Account Attachment Case Title: Nirajkumar Nareshkumar Lakhyani (Pro. Of M/S Om Multitrade) Vs. State Of Gujarat The Gujarat High Court has overturned the decision of the Adjudicating Authority and granted permission to an assessee to fulfill their tax liability through installment payments, consequently lifting the provisional attachment of the assessee’s bank account. Gujarat High Court Quashes Non-Speaking Cryptic Order Of GST Registration Cancellation Case Title: Om Trading Vs State Of Gujarat R/Special Civil Application No. 8990 Of 2023 The Gujarat High Court has clarified that an order for the cancellation of registration passed without providing any reasons is a non-speaking order and therefore is liable to be set aside. Allahabad High Court No Notice For GST Recovery Issued Against The Applicant, Was Illegally Arrested: Allahabad High Court Grants Bail Case Title: Ravinder Nath Sharma vs. UOI [Criminal Misc. Bail Application No. - 26376 Of 2023] Case ...

Tax Cases Weekly Round-Up: 9 July To 15 July, 2023

Mariya Paliwala

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