Indirect Tax Cases Monthly Round Up: July 2024

Supreme CourtCustoms Act | Owner Of Goods Liable To Pay Customs Duty Even After Confiscated Goods Are Redeemed Paying Fine : Supreme CourtCase Title: M/S Navayuga Engineering Co. Ltd. Versus Union Of India & Anr.Citation : 2024 LiveLaw (SC) 504In a notable ruling relating to the Customs Act of 1962, the Supreme Court on Tuesday (July 23) held that the importer would be liable to pay customs duty in addition to fines and other charges upon redeeming the confiscated goods.Chewing Tobacco Packed In High-Density Polyethylene Bags Are 'Wholesale Package'; Cannot Be Taxed As Retail Product Under Excise Act : Supreme CourtCase Details: Commissioner of Central Excise, Jaipur -II v. M/s Miraj Products Pvt. Ltd. Citation : 2024 LiveLaw (SC) 470The 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.Delhi High CourtRevoking Suspension Of Customs Broker Licence Can't Restrict Dept. From Inquiring For Imposition Of Penalty: Delhi High CourtCase Title: Vijendra Singh Versus Commissioner Of CustomsThe Delhi High Court has held that the revoking suspension of license cannot restrict the customs department from inquiring for imposition of penalty.Failure To Carry Out Physical Verification Of Veracity Of Exporter Alone Is No Basis To Suspend License Of Custom Broker: Delhi HCCase Title: Aradhya Export Import Consultants Pvt Ltd Verses Commissioner Of CustomsThe Delhi High Court held that a custom broker cannot be held guilty of having failed to discharge the obligation placed in terms of Regulation 10(n) of CBLR 2018, simply because he has not carried out physical verification of the veracity of the exporter.ITC Claimed On Alleged Fake Supplies; Delhi High Court Upholds Dept's Action In Provisionally Attaching Bank AccountCase Title: JV Creatives Pvt. Ltd. Versus Principal Additional Director General, DGGI, Gurugram Zonal Unit, Gurugram And AnrCitation: 2024 LiveLaw (Del) 859The Delhi High Court has upheld the Commissioner's action of provisionally attaching the petitioner's bank account, to the extent of Rs. 26.91 lakhs being the amount of input tax (ITC) claimed in respect of allegedly fake supplies.GST Registration Cancelled On Allegation Of Non-Existent Entity; Delhi High Court Directs Assessee To Furnish DocumentsCase Title: Olive Traders Versus The Commissioner, CGSTThe Delhi High Court has quashed the order cancelling the petitioner's GST registration and permitted the petitioner to respond to the Show Cause Notice, since the only allegation against the petitioner is that it was found to be non-existent.GST Registration Cancelled On Allegation Of Non-Existent Entity; Delhi High Court Directs Assessee To Furnish DocumentsCase Title: Olive Traders Versus The Commissioner, CGSTThe Delhi High Court has quashed the order cancelling the petitioner's GST registration and permitted the petitioner to respond to the Show Cause Notice, since the only allegation against the petitioner is that it was found to be non-existent.Uploading Of Notices By GST Department Under Heading 'Additional Notices' Is Sufficient Service: Delhi High CourtCase Title: Kamla Vohra Versus Sales Tax OfficerThe Delhi High Court has held that the uploading of notices by the GST department under the heading 'additional notices' amounts to sufficient service.Loans Extended By NOIDA Is Not Commercial Activity, Eligible For Section 10(46) Exemption: Delhi High CourtCase Title: New Okhla Industrial Development Authority Versus Union Of India & Ors.The Delhi High Court has held that the loans and advances extended by the New Okhla Industrial Development Authority (NOIDA) are not commercial activities and are eligible for exemption under Section 10(46) of the Income Tax Act.TPO Lacks Jurisdiction To Question Commercial Expediency Or Genuineness Of Need: Delhi High CourtCase Title: PCIT Versus Samsung India Electronics Pvt. Ltd.The Delhi High Court has held that the statutory authority conferred upon the Transfer Pricing Officer (TPO) can only extend to an examination of the appropriateness of the method adopted for the purposes of determining arm's length pricing (ALP) or evaluating the enlistment of comparables. However, the TPO would neither be justified nor could it be countenanced to have the jurisdiction to question commercial expediency or genuineness of need.Bombay High Court Bombay High Court Quashes Proceedings Initiated By Customs Authorities For Seizing JewelleryCase Title: Rajendra S. Bajaj Versus The Union of IndiaThe Bombay High Court has quashed the proceedings initiated by the customs authorities for seizing the jewelry.Bombay High Court Directs Sales Tax Dept. To Refund Rs. 10.70 Crores Excess Paid Under Settlement SchemeCase Title: M/s. TML Business Services Ltd. Versus The Deputy Commissioner of Sales TaxThe...

Indirect Tax Cases Monthly Round Up: July 2024

Mariya Paliwala

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