Tax Annual Digest 2024: Part III

Chewing Tobacco Packed In High-Density Polyethylene Bags Are 'Wholesale Package'; Cannot Be Taxed As Retail Product Under Excise Act : Supreme CourtThe Supreme Court recently held that pouches of chewing tobacco packed in High-Density Polyethylene (HDPE) bags would be considered a 'wholesale package' and could not be considered for imposing excise duty as per the provisions relating to retail sale price in the Central Excise Act, 1944. The bench of Justices AS Oka and Pankaj Mithal upheld the decision of the Central Excise Appellate Tribunal which observed that chewing tobacco in HDPEs qualified as wholesale packages as they were sold only to intermediaries like distributors and dealers under Standards of Weight & Measures (Packaged Commodity) Rules, 1977 (Rules of 1977). Thus the HDPEs cannot be taxed as a retail product.Himani Navaratan Oil, Himani Gold Turmeric Ayurvedic Cream Are Ayurvedic Medicine ; Telangana High Court The Telangana High Court has held that the 10% duty is leviable on Himani Navaratan Oil and Himani Gold Turmeric Ayurvedic Cream as they are classified as ayurvedic medicine and not cosmetics. The bench of Justice P.Sam Koshy and Justice N.Tukaramji has observed that the rapper in whom the cream is sold very emphatically highlights it as an ayurvedic medicine. The rapper also clearly indicates that the cream is highly effective for cracked skin, pimples, boils, and numerous other skin blemishes. Nowhere did the rapper claim it to be a cosmetic product or a product that could enhance the complexion or fairness. The licensing authority having granted a license for the product as an ayurvedic drug, the manufacture, sale, and distribution of the product as a drug and not a cosmetic are established, and it is being marketed only as a drug and not as a cosmetic.Assessment Order Downloaded From Common Portal Amounts To A Valid Service: Kerala High Court The Kerala High Court has held that the assessment order downloaded from the common portal amounts to a valid service. The bench of Justice A.K. Jayasankaran Nambiar and Justice Syam Kumar V.M. has upheld the decision of the Single Bench in which it was held that the petitioner had downloaded the assessment order from the very same portal, and therefore, the delay occasioned in retrieving the assessment order from the portal was a predicament that the appellant found himself in because of his own latches.Disallowance Operate Against Erring Employer Assessee When Employees' Contribution To EPF/ESI Not Made Within Due Date: Kerala High Court The Kerala High Court has held that the disallowance operates against erring employer assessee when employees' contribution to EPF/ESI not made within the due date. The bench of Justice A.K. Jayasankaran Nambiar and Justice Syam Kumar V.M. has observed that where the employees' contribution to EPF/ESI was not made over by the employer to the statutory authorities within the due date prescribed for making those payments under the respective statutes, the disallowance under Section 36(1)(va) would operate against the erring employer assessee.Long Term Finance Provided For Purchase Of Residential House, Bank Entitled For Deduction ; Kerala High Court The Kerala High Court has held that the South Indian Bank is entitled to the deduction envisaged under Section 36(1)(viii) of the Income Tax Act in respect of the long-term finance provided by it for the construction and purchase of houses in India for residential purposes. The bench of Justice A.K. Jayasankaran Nambiar and Justice Syam Kumar V.M. has observed that a view has been expressed that the National Housing Bank was not entitled to the benefits of the unamended Section 36(1)(viii), on the ground that it was not engaged directly in the long-term financing for the construction or purchase of houses in India for residential purposes. The amendment was therefore deemed necessary to extend the benefit even to the National Housing Bank. It follows therefore that the amendment was intended to widen the scope of the deduction in relation to Financial Corporations specified in Section 4A of the Companies Act, Financial Corporations that were Public Sector Companies, Banking Companies, and Corporative Banks other than Primary Agricultural Credit Society or Primary Corporative Agricultural and Rural Development Banks, and to confine the benefit available to a Housing Finance Company only in relation to the provision by it of long-term finance for the construction or purchases of houses in India for residential purposes.Assessee Can't Be Expected To Deduct TDS From Payments Which Became Taxable Owing To Retrospective Amendment: Bombay High Court The Bombay High Court at Goa, while upholding the order of the Income Tax Appellate Tribunal (ITAT), has held that the assessee cannot be expected to deduct tax at source from payments that became taxable owing to a retrospective amendment. The bench of Justice M.S. Karnik and Justice Valmiki Menezes has observed that it is not ...

Tax Annual Digest 2024: Part III

Pankaj Bajpai

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