Tax Weekly Round-Up: December 09 - December 15, 2024

HIGH COURTS Allahabad HC [GST] Assesee Cannot File For Requisite Documents Once Plea Is Accepted And Notice Is Issued: Allahabad High Court Case Title: M/s Laxmi Telecom v. State of U.P. and Anr. Case no.: WRIT TAX No. - 2160 of 2 The Allahabad High Court has held that an assessee cannot file for the supply of requisite documents after the adjudicating body has accepted the plea placed by them and issued notice pursuant to it. The bench of Chief Justice Arun Bhansali and Justice Vikas Budhwar held that the same would be impermissible, especially in a case where statutory appeal was available to the filing party. Form 26B Under Income Tax Rules Not Required For Refund Once Form 5 Under 'Vivad Se Vishwas' Act Is Issued: Allahabad High Court Case Title: Dish TV India Limited v. Commissioner of Income Tax (TDS) and 2 Ors. Case no.: WRIT TAX No. - 1953 of 2024 The Allahabad High Court has held that an assessee claiming refund of excess TDS (tax deduction at source) is not required to fill Form 26B under the Income Tax Rules once Form 5 of the Vivad Se Vishwas Act, 2020 has been issued to them. “A perusal of the Rules would reveal that Form 26B is required to filled up if the assessee claims refund paid under Chapter XXVII-B of the Act, 1961. The Stage of requirement of filling up the Form 26B was long over in the year 2008-09 itself and the present refund was being sought by the petitioner in terms of the provisions of the VSV Act, 2020, which did not require filling up any form, as claimed by the respondents, and as such, the demand made has no sanction in law”, held Chief Justice Arun Bhansali and Justice Kshitij Shailendra. Delhi HC Court Can Quash SCNs And Proceedings Under GST Act, Customs Act Or Finance Act On Ground Of Inordinate Delay In Adjudication: Delhi HC Case title: M/S VOS Technologies India Pvt. Ltd. v. The Principal Additional Director General & Anr. (and batch) Case no.: W.P.(C) 4831/2021 and connected matters The Delhi High Court has made it clear that Show Cause Notices and adjudication proceedings under the Customs Act, 1962 , the Finance Act, 1994 or the Central Goods and Services Tax, 2017 cannot be kept pending for years. In its 177-page judgment, a division bench of Justices Yashwant Varma and Ravinder Dudeja observed, “Matters which have the potential of casting financial liabilities or penal consequences cannot be kept pending for years and decades together. A statute enabling an authority to conclude proceedings within a stipulated period of time “where it is possible to do so” cannot be countenanced as a license to keep matters unresolved for years. The flexibility which the statute confers is not liable to be construed as sanctioning lethargy or indolence.” Power Of DRI Officers To Issue Show-Cause Notices Under Customs Act And A 'Flux' In The Legal Position: Delhi HC Discusses Case title: M/S VOS Technologies India Pvt. Ltd. v. The Principal Additional Director General & Anr. (and batch) Case no.: W.P.(C) 4831/2021 and connected matters The Delhi High Court recently discussed a 'flux' in the legal position with respect to power of officers of Directorate of Revenue Intelligence (DRI) to issue show-cause notices and recover duties under the Customs Act, 1962. A division bench of Justices Yashwant Varma and Ravinder Dudeja was dealing with a batch of petitions seeking to quash the SCNs and pending adjudication proceedings arising out of the Customs Act, 1962 , the Finance Act, 1994 or the Central Goods and Services Tax, 2017. Some cases were initiated by the authorities as far back as 2006. Pendency Of Revenue's Appeal Regarding Classification Of Imported Goods No Ground To Insist On Provisional Assessment U/S 18 Customs Act: Delhi HC Case title: M S Ciena Communications India Pvt Ltd v. The Principal Commissioner Of Customs Import & Ors Case no.: W.P.(C) 14512/2024 The Delhi High Court has ruled in favour of an importer who was aggrieved by insistence on provisional assessment of duty by the Customs Department, despite an order of the CESTAT with respect to classification of its imported goods. The High Court held that mere pendency of Revenue's appeal would not entail the department to insist on provisional assessment of the goods. “Since there is no stay of the order of CESTAT, the goods would have to be released in terms of the CESTAT order dated 18th December 2023 as per the classification as directed by the CESTAT i.e.,CTH 851770,” it ordered. Assessee Can Confine Settlement Under Direct Tax Vivad Se Vishwas Act To Disputes Which Were Subject Matter Of Its Appeal: Delhi HC Case title: Rose Wood Buildwell Private Limited v. Pr. Commissioner Of Income Tax-7 & Ors Case no.: W.P.(C) 6097/2021 The Delhi High Court has held that under the Direct Tax Vivad Se Vishwas Act, 2020, an Assessee is entitled to confine the settlement of...

Tax Weekly Round-Up: December 09 - December 15, 2024

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