Tax Monthly Digest: November 2024

SUPREME COURT DRI Officers Can Issue Show-Cause Notices Under Customs Act : Supreme Court Allows Review Against 'Canon India' Judgment Case Details : COMMISSIONER OF CUSTOMS vs. M/S CANON INDIA PRIVATE LIMITED Case no.: R.P.(C) No. 000400 - / 2021 The Supreme Court today (November 7) held that the officers of the Directorate of Revenue Intelligence(DRI) have the power to exercise powers under the Customs Act, 1962 to issue show-cause notices and recover duties The Court held that DRI officers are "proper officers" to issue show cause notices under Section 28 of the Customs Act, 1962. "Subject to the observations made in the judgment, the officers of the Directorate of Revenue Intelligence, Commissionates of Customs-Preventive, Directorate General of Central Excise Intelligence, and Commissionates of Central Excise and other similarly situated officers are "proper officers" for the purposes of Section 28 of the Customs Act and are competent to issue show-cause notices," the Court held. Mobile Towers & Pre-Fabricated Buildings Moveable Properties, Qualify As 'Capital Goods' For CENVAT Credit : Supreme Court Case title: M/S BHARTI AIRTEL LTD. v. THE COMMISSIONER OF CENTRAL EXCISE, PUNE Case no.: CIVIL APPEAL NOS. 10409-10410 OF 2014 The Supreme Court in a recent decision held that mobile service providers (MSPs) could avail the benefit of Central Value Added Tax/CENVAT Credit over excise duties paid on items such as mobile towers and prefabricated buildings. The bench of Justice BV Nagarathna and Justice N Kotiswar Singh observed that since mobile towers and PFBs could be detached and relocated, they qualified as movable properties and accessories in enhancing the functionality of the mobile service antenna attached on top of the tower. Thus, the items qualified as 'capital goods' or 'inputs' which were indispensable to provide effective mobile services (output) and MSPs can get a credit set-off on these items. HIGH COURTS Allahabad HC GST | Assessee Entitled To Fresh Notice If Initial Notice U/S 73 Was Missed Due To Being Uploaded Under 'Additional Notices' Tab: Allahabad HC Case title: M/S Ashish Traders v. State of U.P. Case no.: WRIT TAX No. - 1882 of 2024 The Allahabad High Court has held that an assessee is entitled to fresh notices demanding unpaid tax or short tax under Section 73 of the Goods and Service Tax Act, 2017, if the initial notices were not duly communicated to the assessee. A division bench of Chief Justice Arun Bhansali and Justice Vikas Budhwar relied on Ola Fleet Technologies Pvt. Ltd. v. State of UP (2024) whereby “benefit of doubt” was given to the assessee since notices issued to it did not show up on the assessee's portal under the tab "view notices and orders". Owner Of Electric Vehicle Purchased Prior To October 14, 2022 Can't Seek Refund Of Tax Citing Subsequent Exemption Notification: Allahabad HC Case title: Ankur Vikram Singh Respondent v. State of UP Case no.: WRIT TAX No. - 1869 of 2024 The Allahabad High Court has held that the owner of an electric vehicle which was purchased prior to October 14, 2022 cannot seek refund of tax citing a subsequent notification exempting the payment of One Time Tax. Petitioner had sought refund of One Time Tax paid in respect of his Hybrid Vehicle purchased on October 13, 2022. The relief was sought on the strength of a notification issued by the State providing tax exemption for electric vehicles purchased and registered from the date of notification of the Uttar Pradesh Electric Vehicle Manufacturing and Mobility Policy, 2022 i.e. October 14, 2022. [GST] Penalty Can't Be Imposed On Goods In Transit With Tax Invoice & E-Way Bill, Citing Subsequent Suspension Of Registration: Allahabad HC Case title: M/S Lakhdatar Traders v. State Of Up And 2 Others Case no.: WRIT TAX No. - 1852 of 2024 The Allahabad High Court has set aside the demand and penalty order passed under Section 129 of the Central Goods and Services Tax Act 2017 against a trader whose GST registration came to be suspended, after it found that the goods in transit were accompanied with proper tax invoice and e-way bill. A division bench of Chief Justice Arun Bhansali and Justice Vikas Budhwar relied on M/s Sahil Traders v. State of U.P. and another, 2023 wherein a coordinate bench had held that once the goods were found with proper tax invoice and E-way bill, the consignee will be deemed owner and goods will have to be released in terms of Section 129(1)(a) of the CGST Act. Allahabad HC Decines Plea Claiming Road Tax Exemption Should Be Allowed For Registration And Not Purchase Of Electric Vehicles In UP Case title: M/S Batra Henlay Cables v. State Of U.P. and 2 Others Case no.: WRIT TAX No. - 1927 of 2024 The Allahabad High Court has dismissed a writ petition claiming exemption from payment of road tax on an electric vehicle...

Tax Monthly Digest: November 2024

Kapil Dhyani

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