Tax
Bombay High Court Upholds The Validity Of Goa Tax on Entry of Goods Act, 2000
The Bombay High Court has upheld the validity of the Goa Tax on Entry of Goods Act, 2000.The bench of Justice M. S. Sonak & Justice Valmiki Sa Menezes relied on the decision of the 9-judge bench of the Supreme Court in the case of Jindal Stainless Limited and another vs. State of Haryana and ors. which upheld the constitutional validity of entry taxes imposed by states on goods coming in...
Delhi High Court Allows Appeal Of Poor Daily Wage Earners Against Seizure Of Goods Without Pre-Deposit
The Delhi High Court has allowed the appeals of poor daily wage earners against the seizure of goods without insisting on the requirement of pre-deposit.The bench of Justice Rajiv Shakdher and Justice Tara Vitasta Ganju has observed that the statute may, at times, impose conditions as a requirement of filing an appeal. However, a condition that is unduly onerous will render the right to...
Tax Cases Monthly Round Up: April 2023
Indirect Taxes Supreme Court Same Activity Can Be Taxed As ‘Goods’ & ‘Services’ : Supreme Court Upholds Levy Of Service Tax On “Engineering Design & Drawings” Case Title: Commissioner of Customs, Central Excise & Service Tax v M/S Suzlon Energy Citation : 202LiveLaw(SC) 298 The Supreme Court has held that the import of “Engineering...
Assessee Was Given Only 13 Hours Time To Reply To The Show-Cause Notice: Madras High Court Quashes Assessment
The Madras High Court has quashed the assessment as the assessee was given only 13 hours to reply to the show-cause notice.The bench of Justice M. Dhandapani has directed the department to consider the matter afresh and, after providing an opportunity to the petitioner, pass appropriate orders within a period of four weeks.The petitioner/assessee was issued with a first show cause notice on...
Penalty Under Section 114 A Of The Customs Act Is Invariably Linked To The Quantum Of Duty Evaded: CESTAT
The Chandigarh Bench of the Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has held that the penalty under Section 114 A of the Customs Act is invariably linked to the quantum of duty evaded.The bench of S. S. Garg (Judicial Member) and P. Anjani Kumar (Technical Member) has observed that the appellant has not violated the provisions intentionally and that there is no mens rea...
Tax Cases Weekly Round-Up: 23 April To 29 April, 2023
Bombay High Court Goa Value Added Tax (12th Amendment) Act, 2020 Defies The Doctrine Of Separation Of Powers: Bombay High Court Case Title: Rohan Lobo Versus State Of Goa The Bombay High Court has held that the Goa Value Added Tax (12th Amendment) Act, 2020, is an impermissible judicial override defying the doctrine of separation of powers. Material Triggering Reassessment...
ITAT Directs AO To Charge 6.5% Gross Profit Rate On Bogus Purchases
The Mumbai Bench of Income Tax Appellate Tribunal (ITAT) has directed the AO to charge a 6.5% gross profit rate on bogus purchases.The bench of Kuldip Singh (Judicial Member) and Gagan Goyal (Accountant Member) has observed that the entire addition has been made by the AO as well as CIT (A) on the basis of guesswork and estimation on the basis of some alleged information received from the...
Profile Of An Assessing Authority Can’t Be Stern And Unreasonable, Programmed Solely To Collect Tax: Kerala High Court
The Kerala High Court has held that the profile of an assessing authority can no longer be that of a stern and unreasonable automaton that is programmed solely to collect the tax."We have come across assessing authorities passing orders in a mechanical manner without showing how the taxable event is attracted in a given case or without giving reasons for denying the claim of an assessee...
Supreme Court Upholds Requirement Of ‘Pre-Import Condition’ To Claim IGST And GST Compensation Cess On Imports Made Under ‘Advance Authorization’
The Supreme Court has upheld the requirement of ‘pre-import condition’ incorporated in the Foreign Trade Policy of 2015-2020 (FTP) and Handbook of Procedures 2015-2020 (HBP) to claim exemption of Integrated Goods and Services Tax (IGST) and GST Compensation Cess on inputs imported into India for manufacture of export goods, on the basis of ‘Advance Authorization’.The bench...
Section 16-B Of Himachal Pradesh General Sales Tax Act Is Not Ultra Vires Any Provision Of Law: Supreme Court Reiterates
The Supreme Court has ruled that Section 16-B of the Himachal Pradesh General Sales Tax Act, 1968 (HPGST Act) is not ultra vires any provision of law. The bench comprising Justices S. Ravindra Bhat and Dipankar Datta set aside the judgment of the Himachal Pradesh High Court where it had held that Section 16-B of the HPGST Act was inconsistent with Section 35 of the Securitisation...
Company Or Its Directors Not Liable To Pay Excise Duty If Job Workers Are Independent Contractors/Manufacturers: CESTAT
The Kolkata Bench of the Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has held that a company or its directors are not liable to pay excise duty if the job workers of the assessee company were independent contractors or manufacturers.The bench of P. K. Choudhury (Judicial Member) and K. Anpazhakan (Technical Member) have observed that if the job workers are proven to...
Higher Price Not Charged Than The Price Re-Fixed On The Rejected Footwear: CESTAT Quashes Excise Duty Demand Against Bata
The Kolkata Bench of Customs, Excise and Service Tax Appellate Tribunal (CESTAT) has allowed the concessional rate of excise duty to Bata as there was no allegation against Bata that it has charged a higher price than the price re-fixed on the rejected footwear.The bench of P.K. Choudhary (Judicial Member) and Rajeev Tandon (Technical Member) observed that the stickers were put on the...