Indirect Tax Half Yearly Digest: January To June 2024

Supreme CourtCustoms Act | Importer's Subsequent Import Bill Be Discarded If Undervalued To Previously Imported Identical Or Similar Goods: Supreme CourtCase Title: M/s Global Technologies and Research versus Principal Commissioner of Customs, New Delhi (Import)Citation : 2024 LiveLaw (SC) 239Recently, the Supreme Court held that under the Customs Act, the Importer's Bill of Entry of subsequent imported goods can be discarded if the subsequent imported goods are undervalued to the previously imported identical or similar goods.Customs Act | S. 71 Inapplicable If Imported Goods Were Stocked Outside Notified Public Bonded Warehouse With Permission : Supreme CourtCase Title: M/s Bisco Limited V Commissioner Of Customs And Central ExciseCitation : 2024 LiveLaw (SC) 257The Supreme Court has held that Section 71 of the Customs Act, 1962 would be inapplicable to cases where imported goods were stocked outside the notified public bonded warehouse with the permission of the concerned officer.Customs Act | Claimant Entitled To Interest On Delayed Return Of The 'Duty Drawback' : Supreme CourtCase Title: Union Of India And Ors. Versus M/S. B. T. Patil And Sons Belgaum (Construction) Pvt. Ltd. Citation : 2024 LiveLaw (SC) 90The Supreme Court observed that if there is a delay in refund of the 'duty drawback' to the claimant under the Customs Act, 1962, then the claimant would be entitled to interest in addition to the amount of drawback at the rate of interest which was fixed by the Central Government at the relevant point of time.Hiring Of Motor Vehicle Or Cranes Is Not 'Sale Of Goods' If Control Over Equipment Is Retained By Contractor, VAT Can't Be Levied: Supreme Court Case Title: M/s. K.P. Mozika v Oil and Natural Gas Corporation Ltd. & Ors. Citation: 2024 LiveLaw (SC) 26 The Supreme Court has held that the hiring of motor vehicles/cranes from a contractor is a service and would not attract Sales Tax or Value Added Tax (VAT) assuming the transaction to be the sale of goods. The Court clarified that the transfer of the right to use the goods not only includes possession but also control over goods by the user. If the control over the goods remains with the contractor during the hire period, then it cannot be termed as sale of goods and only service tax can be levied.Definition Of 'Manufacture' U/s 2(e)(1) Of UP Trade Tax Act Does Not Include Blending And Packaging Tea: Supreme CourtCase Title: Commissioner Of Trade Tax, U.P. v. M/s Mishra Tea Blending And Packing Industries, UP [CIVIL APPEAL NOS. 5677-5678/2011]Citation: 2023 LiveLaw (SC) 1076Recently, the Supreme Court has held that the definition of 'manufacture' under Section 2(e)(1) of the U.P. Trade Tax Act, 1948 does not include blending and packaging tea.Supreme Court Dismisses UP Govt.'s Appeal Against Allahabad HC Order Quashing Demand Of Rs. 235.52 Crores Against VIVOCase Title: State of Uttar Pradesh and Anr. v. M/s Vivo Mobile India Private Ltd. & Ors. The Supreme Court dismissed a Special Leave Petition filed by the State of Uttar Pradesh against the order of the Allahabad High Court quashing the demand of Rs. 235.52 Crores raised against Vivo Mobile India Private Limited raised by GST Authorities vide order under Section 74(9) of the Goods and Service Tax Act 2017. Supreme Court Expunges Gujarat HC's Adverse Observation Against GST OfficialsCase Title: The State Of Gujarat & Anr. V. Paresh Nathalal ChauhanCitation : 2024 LiveLaw (SC) 295The Supreme Court (on March 12) expunged the observations made by the Gujarat High Court in an interim order that statutory protection of the good faith clause under Section 157 of the Goods and Services Tax Act may not be available to the GST officers who conducted a search operation in the instant case.Supreme Court Seeks Data Of GST Arrests, Says Citizens' Harassment Won't Be Allowed Due To Any Ambiguity In Arrest ProvisionsCase Title: Radhika Agarwal v. Union of India and Ors., W.P.(Crl.) No. 336/2018 (and connected matters)While hearing a batch of petitions challenging penal provisions of GST Act, Customs Act, etc. as non-compatible with the CrPC and the Constitution, the Supreme Court on Thursday (May 2) expressed concerns about the ambiguity in Section 69 of the GST Act (dealing with power with arrest) and conveyed that it would interpret the law to "strengthen" liberty, if need be, but not allow citizens to be harassed.Labelling and Re-Labelling of Containers Qualifies as 'Manufacture' for CENVAT Credit Under Excise Act: Supreme CourtCase Details: Commissioner Of Central Excise Belapur Vs Jindal Drugs Ltd. Citation : 2024 LiveLaw (SC) 374The Supreme Court has held that labelling or re-labelling of containers amounts to 'manufacture' under the Central Excise Act for availing cenvat credit.Delhi High Court Delhi High Court Directs GST Dept. To Pay 6% Interest For Delayed IGST RefundCase Title: Raghav Ventures Versus Commissioner Of Delhi Goods & Services TaxCitation: 2024 LiveLaw (Del) 281The Delhi High Court has...

Indirect Tax Half Yearly Digest: January To June 2024

Mariya Paliwala

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