Tax Cases Weekly Round-Up: 07 May to 13 May, 2023

Supreme Court Prickly Heat Powder Is Not A ‘Medicine’ For The Purpose Of Sales Tax In Kerala & Tamil Nadu: Supreme Court Case Title: Heinz India Limited v The State of Kerala Citation: 2023 LiveLaw (SC) 411 The Supreme Court Bench has held that prickly heat powders fall under the category of ‘medicated talcum powder’ and not ‘medicine’ for the purpose of sales tax under Kerala General Sales Tax Act, 1963 (“KGST Act”). Whereas, under the Tamil Nadu General Sales Tax Act, 1959 (“TNGST Act”), prickly heat powder would be taxed as a cosmetic. Can Tax Exemption Be Claimed Based On Doctrine Of Legitimate Expectation? Supreme Court Delivers Split Verdict Case Title: M/s K.B. Tea Product Pvt Ltd & Anr vs Commercial Tax Officer, Siliguri & Ors Citation : 2023 LiveLaw (SC) 428 The Supreme Court bench comprising Justices M.R. Shah and Krishna Murari has rendered a split verdict on the issue concerning the applicability of the doctrine of legitimate expectation where a tax holiday/ sales tax exemption granted to the appellant- manufacturer was stopped pursuant to the amendments made to the West Bengal Sales Tax Act, 1994. Supreme Court Upholds Withdrawal Of Customs Notification Granting Concession On Import Of Printing Machinery, On The Ground Of Indigenous Angle Case Title: Union of India & Ors. vs A. B. P. Pvt Ltd & Anr. Citation : 2023 LiveLaw (SC) 430 The Supreme Court has upheld the withdrawal of a customs notification which granted customs duty concession to “Rotary Printing Machine” of ‘single width two plate variety’, on the ground of indigenous angle, i.e., availability of the equipment in India. The top court remarked that the same cannot be characterized as an irrelevant factor for withdrawing tax concession. Bombay High Court Bombay High Court Directs Dept. To Issue A Fresh Form-3 Under DTVSV After Giving Credit Of The Amount Paid Under The IDS Case Title: Sunil Wamanrao Sakore Versus Union Of India The Bombay High Court has held that the money lying in the corpus of the revenue had simply to be adjusted by way of a mathematical exercise and benefit accorded to the petitioner under the Direct Tax Vivad Se Vishwas Act, 2020 (DTVSV). Department Adjusting The Refund Amount Under Amnesty Scheme Without Notice Violates Principles of Natural Justice: Bombay High Court Case Title: TML Business Services Limited Versus The Deputy Commissioner of State Tax The Bombay High Court has held that the action of the department in making the adjustment of a refund due to the petitioner while considering the application under the Amnesty Scheme without notice to the petitioner is in utter disregard of the well-established principles of natural justice and has caused grave prejudice to the petitioner. Madras High Court Madras High Court Upholds The Cancellation Of Customs Duty Exemption Certificate Issued To Apollo Hospitals Case Title: M/s. Apollo Hospitals Enterprises Ltd. Versus Union of India Citation: 2023 LiveLaw (Mad) 139 The Madras High Court has cancelled the cancellation of the customs duty exemption certificate (CDEC) issued to the Apollo Hospitals. Chhattisgarh High Court Chhattisgarh High Court Grants 3 Months Time To The Assessee For Depositing Pre-Deposit Before CESTAT Case Title: M/s Nava Raipur Atal Nangar Vikas Pradhikaran Versus The Union Of India The Chhattisgarh High Court grants 3 months time to the assessee for depositing pre-deposit before the Customs, Excise, and Service Tax Appellate Tribunal (CESTAT). ITAT No Requirement Of Disallowing Part Of Director’s Remuneration And Depreciation When The Business Was Stopped Due To Temporary Lull: ITAT Case Title: Shri Devkripa Textile Mills (P) Ltd. Versus ACIT The Jodhpur bench of the Income Tax Appellate Tribunal (ITAT) has held that there is no requirement for disallowing part of the director’s remuneration and depreciation when the business is stopped due to a temporary lull. ITAT Allows Income Tax Deduction On The Interest Income Received From The Co-Operative Bank Case Title: Oberoi Spring Co–operative Versus Income Tax Officer The Mumbai Bench of the Income Tax Appellate Tribunal (ITAT) has allowed the income tax deduction under Section 80P(2)(d) of the Income Tax Act on the entire amount of interest income received from the Co-operative Bank. Section 14A Disallowance Cannot Be More Than Exempted Income: ITAT Case Title: Royal Twinkle Star Club Pvt. Ltd. Versus Dy. Commissioner of Income Tax The Mumbai Bench of Income Tax Appellate Tribunal (ITAT) has held that section 14A disallowance cannot be more than exempted income. AO Without Rejection Of Books Of Accounts Estimated The Income Based On Profit Margin Method: ITAT Deletes Addition Case Title: DCIT Vs Sylvannus Builders and Developers Ltd. The Ahmedabad Bench of the Income Tax ...

Tax Cases Weekly Round-Up: 07 May to 13 May, 2023

Mariya Paliwala

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