Indirect Tax Cases Monthly Round Up: April 2024

Update: 2024-05-04 16:00 GMT
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Supreme Court Supreme Court Expunges Gujarat HC's Adverse Observation Against GST Officials Case Title: The State Of Gujarat & Anr. V. Paresh Nathalal Chauhan Citation : 2024 LiveLaw (SC) 295 The 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...

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Supreme Court

Supreme Court Expunges Gujarat HC's Adverse Observation Against GST Officials

Case Title: The State Of Gujarat & Anr. V. Paresh Nathalal Chauhan

Citation : 2024 LiveLaw (SC) 295

The 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.

Delhi High Court

Retrospective GST Registration Cancellation Can't Be A Consequence Of Non-Filing Of Return: Delhi High Court

Case Title: Good Life Zip India Versus Commissioner Of Delhi Goods And Service Tax & Anr.

The Delhi High Court has held that simply because a taxpayer has not filed the returns for some period does not mean that the taxpayer's registration is required to be cancelled with a retrospective date.

Dept. Can't After Being Unsuccessful, On Its Own, Declare Order For CENVAT Credit Refund To Be Erroneous: Delhi High Court

Case Title: Blackberry India Pvt Ltd -Earlier Known As Research In Motion India Pvt Ltd Versus The Commissioner CGST

The Delhi High Court has held that the department cannot, after being unsuccessful before this Court on its own, declare the refund of the CENVAT credit as well as interest on delayed payments to be an erroneous refund.

Proper Officer Has To Consider Reply On Merits And Then Form An Opinion: Delhi High Court

Case Title: Canara Bank Versus Assistant Commissioner, DGST

The Delhi High Court has held that the proper officer has to consider the reply on merits and then form an opinion.

Rationale To Deny ITC To Service Provider Who Is Not Liable To Pay Tax On Output Services Is Obvious: Delhi High Court

Case Title: Pace Setters Business Solutions Pvt. Ltd. Versus Union Of India And Ors.

The Delhi High Court has held that the rationale to deny input tax credit (ITC) to service providers who are not liable to pay tax on output services is obvious.

GST Registration Cancellation Passed Solely For Non-Filing Of Reply: Delhi High Court Remits The Matter For Re-Adjudication

Case Title: M/S Jain Cement Udyog (Through Proprietor Sh. Sanjay Jain) Versus CBIC

The Delhi High Court has held that GST registration cancellation passed solely for non-filing of reply is unsustainable.

CA Certificate Not Matching With Details On ICAI Portal As Per UDIN, Delhi High Court Upholds Disqualification By IRCTC

Case Title: M/S Sunshine Caterers Private Limited Versus Union Of India

The Delhi High Court has upheld the disqualification as the CA Certificate did not match details on the Institute of Chartered Accountants of India (ICAI) portal as per the Unique Document Identification Number (UDIN).

Denial Of ITC To Customers Is One Of The Consequence Of Retrospective GST Registration Cancellation: Delhi High Court

Case Title: Mukesh Kumar Singh Versus Commissioner Of Delhi GST

The Delhi High Court has held that one of the consequences of cancelling a taxpayer's registration with retrospective effect is that the taxpayer's customers are denied the input tax credit availed in respect of the supplies made by the taxpayer.

GST Act Empowers Proper Officer To Grant Upto Three Adjournments If Sufficient Cause Is Shown: Delhi High Court

Case Title: Sun & Sand Industries Africa Pvt. Ltd Versus Sales Tax Officer Class-Ii/Avato Department Of Trade And Taxes

The Delhi High Court has held that, as per Section 75(5) of the GST Act, if sufficient cause is shown, the proper officer shall adjourn the hearing; however, not more than three adjournments may be granted.

Bombay High Court

Bombay High Court Quashes SCN Demanding GST On Ocean Freight On Transportation Of Goods From Outside India

Case Title: M/s. Agarwal Coal Corporation Pvt. Ltd. Versus Assist. Commissioner of State Tax

The Bombay High Court has quashed the show cause notice (SCN) demanding GST on ocean freight on transportation of goods from outside India.

Madras High Court

Madras High Court Restrains Dept. From Appropriating Interest Liability Against Eicher Motors Until Matter Is Taken Up By Appellate Court

Case Title: M/s.Eicher Motors Limited Versus The Assistant Commissioner of Central Tax and Central Excise

Citation: 2024 LiveLaw (Mad) 159

The Madras High Court has restrained the department from appropriating interest liability against Eicher Motors until the matter is taken up by the appellate court.

Assessee Can't Be Absolved Of Responsibility As Registered Person To Monitor The GST Portal: Madras High Court

Case Title: M/s.Bajrang & Bajrang Versus The State Tax Officer (FAC)

The Madras High Court held that the assessee cannot be absolved of responsibility as a registered person to monitor the GST portal.

Dept's Failure To Consider Certificate Obtained From Supplier; Madras High Court Quashes ITC Mismatch Demand

Case Title: AP Studio Enterprises Versus The Assistant Commissioner (ST)(FAC)

The Madras High Court has quashed the demand in respect of the input tax credit (ITC) mismatch as the department has failed to consider certificates obtained by buyers.

Kerala High Court

Biuret Content Test In Imported Urea To Match Technical Trade Urea Specifications, Kerala High Court Directs Testing In Faridabad Laboratories

Case Citation: 2024 LiveLaw (Ker) 224

Case Title: R. Krishnaprasad Versus Commissioner of Customs

The Kerala High Court directed that the referral laboratory, namely the Central Fertilizer Quality Control Unit, Faridabad, shall ensure that the analysis of the urea sample is done expeditiously and that the report thereof reaches the Kochi Customs Authority within a month from the date of receipt of the sample at the said laboratory.

Kerala High Court Stays GST Recovery Proceedings Against Bar Council Of Kerala

Case title: Bar Council of Kerala v The Additional Commissioner

The Kerala High Court stayed the proceedings initiated by the Additional Commissioner, Central Board of Indirect Tax and Customs for recovery of service tax, penalty and interest from the Bar Council of Kerala.

Malabar 'Parota' Is Akin To 'Bread', Exigible To 5% GST: Kerala High Court

Case Title: Modern Food Enterprises Private Limited Versus Union Of India

The Kerala High Court has held that Malabar 'Parota' is akin to 'bread' and is exigible at the rate of 5% GST and not 18% GST.

Allahabad High Court

Entry Tax | Indian Made Foreign Liquor Not Taxable Under UP Entry Of Goods Into Local Area Act 2007: Allahabad High Court

Case Title: M/S United Spirits Limited v. State Of U.P.

The Allahabad High Court has recently quashed the assessment order taxing Indian Made Foreign Liquor under the UP Entry of goods into Local Area Act 2007 on grounds that it is not provided in the schedule to the Act.

S.58 UPVAT | In Revisional Jurisdiction, HC Must Uphold Sanctity Of Judgments/Orders, Must Intervene Only When There Are Compelling Reasons: Allahabad HC

Case Title: The Commissioner, Commercial Tax U.P. V. M/S Godfrey Philips India Limited

While elaborating the difference between 'appeal' and 'revision', the Allahabad High Court has held that in exercise of its revisional jurisdiction, the High court must uphold the sanctity of judgments and orders and intervene only when there are compelling reasons to do so.

Confiscation & Penalty Order Must Be Quashed If Quantification Of Stock Based On Eye Estimate: Allahabad High Court

Case Title: M/S Eco Plus Steels Pvt. Ltd. v. State Of U.P. And 3 Others

The Allahabad High Court has held that once the Appellate Authority has recorded a specific finding that quantification of stock was based on eye estimate and not in accordance with law, the confiscation order as well as the penalty order are liable to be set aside.

S.16 UPVAT Act | Invoices, RTGS Details Not Sufficient For Deciding ITC Claim, Transportation Details Must Be Produced: Allahabad High Court

Case Title: Commissioner, Commercial Tax v. S/S Soma Enterprises Ltd.

Placing reliance on the judgment of the Supreme Court in State of Karnataka vs. M/s Ecom Gill Coffee Trading Private Limited, the Allahabad High Court has held that input tax credit cannot be granted based solely on invoices and RTGS payment details.

UPVAT | Intention To Evade Tax Essential For Imposition Of Penalty U/S 54(1)(2): Allahabad High Court

Case Title: Durga Steel Rolling Mills Thru. Partner Amit Arora v. Commissioner Of Commercial Taxes U.P.Lucknow

The Allahabad High Court has held that intention to evade tax is an essential condition for imposing penalty under Section 54(1)(2) of the Uttar Pradesh Value Added Tax Act, 2008.

[Central Excise Act] Mandatory Pre-Deposit U/S 35F For Filing Appeal Before CESTAT Can't Be Waived In Writ Jurisdiction: Allahabad High Court

Case Title: Ram Kishan Bairwa vs. Central Excise Service Tax Appellate Tribunal

Case Citation: 2024 LiveLaw (AB) 262

The Allahabad High Court has held that mandatory condition of pre-deposit prescribed under Section 35F of the Central Excise Act for filing appeals before the Customs Excise and Service Tax Appellate Tribunal cannot be waived under Article 226 of the Constitution of India.

[United Provinces Excise Act 1910] Cancellation Of License Can't Be Due To Suspicion, Must Be Based On Cogent Material: Allahabad High Court

Case Title: Sandeep Singh v. State Of U.P. And 2 Others

The Allahabad High Court has held that the cancellation of license under Section 34(2) of the United Provinces Excise Act, 1910 cannot be based on suspicion. The Court held that without there being any cogent material or evidence such harsh penalty of cancellation of license must not be invoked.

Jharkhand High Court

Jharkhand High Court Allows Application for Revocation of Cancelled GST Registration Despite Expiry of Limitation Period

Case Title: Abdul Satar Vs Principal Commissioner, Central Goods and Service Tax & CX (Jharkhand High Court)

LL Citation: 2024 LiveLaw (Jha) 56

In a recent ruling, the Jharkhand High Court has permitted the filing of an application for revocation of cancelled GST registration, despite the expiration of the limitation period.

Placement Agency To Be Given Proper SCN On Alleged Failure To Perform Duties Coupled With Monetary Loss To JSBCL: Jharkhand High Court

Case Title: Urmila International Services Private Limited Versus Jharkhand State Beverages Corporation Limited

The Jharkhand High Court has held that Rule 15 of the Jharkhand Excise (Operation of Retail Product Shops through Jharkhand State Beverages Corporation Limited) Rules, 2022, and the corresponding clauses of the contract have to be restricted only to those situations where the placement agency has been found, albeit after hearing the agency, to have failed to provide manpower to Jharkhand State Beverages Corporation Ltd. (JSBCL), which has resulted in pecuniary loss to the corporation.

Telangana High Court

Telangana High Court Holds 'Handling Of Cargo In Customs Areas Regulations, 2009' As Ultra Vires Of The Customs Act, 1962

Case Title: Central Board of Excise and Customs vs. M/s. GMR Hyderabad International Airport Limited, Rep. by its General Manager & Ors.

The Telangana High Court holds 'Handling of Cargo in Customs Areas Regulations, 2009' by way of which cost of living expenses were recoverable from the Customs Cargo Service Provider as ultra vires of the Customs Act, 1962.

Gujarat High Court

'Payment Of Pre- Deposit Can Be Made By Utilizing The Electronic Credit Ledger': Gujarat High Court Reiterates

Case Title : Shiv Crackers Vs Chief Commissioner of CGST & C.E. & Anr.

LL Citation: 2024 Livelaw (Guj) 45

The Gujarat High Court has reiterated that the Electronic Credit Ledger (ECL) can be utilized for making pre-deposits in appeals under the Goods and Services Tax (GST) regime.

Gujarat High Court Allows CENVAT Credit On Welding Electrodes, Welding Wire, Etc. Used For Laying Rail Lines Outside Factory

Case Title: The Principal Commissioner Central Gst And Central Excise Versus M/S Nayara Energy Ltd.

The Gujarat High Court has allowed the cenvat credit on welding electrodes, welding wire, etc. used for laying rail lines outside factories.

Rajasthan High Court

Rajasthan High Court Admits Appeal On Issue Of Reversal Of Credit On Input Lying In Stock When Final Product Is Exemplified

Case Title: Union Of India Versus Suzuki Textiles Limited

The Rajasthan High Court, Jodhpur, comprising Chief Justice Manindra Mohan Shrivastava and Justice Munnuri Laxman, admitted the appeal filed by the Commissioner, Central Excise and Service Tax, on the issue of reversal of credit on input lying in stock when the final product is exemplified.

Calcutta High Court

GST Dept. Can't Compute Penalty Amount On Higher Value Than Invoice Value Without Proper Evidence: Calcutta High Court

Case Title: Ashish Kumar Sharma Versus The Deputy Commissioner, State Tax, Bureau Of Investigation, South Bengal, Howrah Zone And Others

The Calcutta High Court has held that the GST department cannot compute the penalty amount on a higher value than the invoice value without proper evidence and reason.

Andhra Pradesh High Court

Emery Cloth Is Cotton Coated Fabric And Liable To Be Exempted From Tax: Andhra Pradesh High Court

Case Title: The State of Andhra Pradesh Versus Mohsin Brothers

The Andhra Pradesh High Court has held that emery cloth is cotton coated fabric and liable to be exempted from tax.


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