Tax Cases Monthly Round Up: September 2023

Update: 2023-10-08 06:30 GMT
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Direct Tax Supreme Court Material Disclosed To Income Tax Settlement Commission Needn't Be Something Which Wasn't Discovered By Assessing Officer : Supreme Court Case Title: KOTAK MAHINDRA BANK LIMITED vs COMMISSIONER OF INCOME TAX BANGALORE AND ANR Citation : 2023 LiveLaw (SC) 822 The Supreme Court has ruled that Section 245H of the Income Tax Act,...

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Direct Tax

Supreme Court

Material Disclosed To Income Tax Settlement Commission Needn't Be Something Which Wasn't Discovered By Assessing Officer : Supreme Court

Case Title: KOTAK MAHINDRA BANK LIMITED vs COMMISSIONER OF INCOME TAX BANGALORE AND ANR

Citation : 2023 LiveLaw (SC) 822

The Supreme Court has ruled that Section 245H of the Income Tax Act, 1961, which empowers the Settlement Commission to grant immunity from prosecution and penalty to the assessee if he has co-operated with the Settlement Commission and has made “full and true disclosure of his income”, cannot be saddled with an artificial requirement that the material “disclosed” by the assessee before the Commission must be something apart from what was “discovered” by the Assessing Officer.

Delhi High Court

Tax Authority Based In Delhi Lacks Jurisdiction On Withholding Tax Liability On Share Purchase Transaction: Delhi High Court Quashes Tax Demand Against Sumitomo

Case Title: Sumitomo Mitsui Financial Group Inc. Versus CIT

The Delhi High Court has deleted the tax demand against Sumitomo Mitsui Financial Group on the grounds of lack of jurisdiction.

Delhi High Court Directs VAT Dept. To Refund Rs. 6.62 Crores To Flipkart

Case Title: Flipkart India Private Limited Versus Value Added Tax Officer

The Delhi High Court has directed the Value Added Tax (VAT) department to refund Rs. 6.62 crore to Flipkart along with interest.

Delhi High Court Limits Adjustment Of Tax Refunds Against Disputed Demands At 20%

Case Title: Jindal Stainless Ltd Versus DCIT

The Delhi High Court has limited the adjustment of tax refunds against disputed demands to 20%.

Undisclosed Income Taxed In The Hands Of Flagship Company Can’t Be Again Subjected To Tax In The Hands Of Assessee Companies: Delhi High Court

Case Title: PCIT Versus Surya Agrotech Infrastructure Limited

The Delhi High Court has held that undisclosed income taxed in the hands of flagship companies cannot be again subjected to tax in the hands of assessee companies.

Overlooking Assesssee’s Reply Demonstrates Non-Application Of Mind By The AO: Delhi High Court

Case Title: Aphv India Investco. Private Limited Versus ACIT

The Delhi High Court has quashed the draft assessment orders, final assessment orders, and consequential demand on the grounds that the assessing officer inadvertently overlooked the email reply of the assessee, in which the assessee disclosed vital facts pertaining to its case.

Delhi High Court Directs AWS India To Withhold 8% Payment Of The AWS USA And Deposit It With The Dept.

Case Title: Amazon Web Services India Pvt Ltd & Anr. Versus ITO

The Delhi High Court has directed that AWS India withhold 8% of payments payable or paid to AWS USA and deposit the same with the income tax department.

Brand Names Are Specie Of The Trademark: Delhi High Court Allows Depreciation

Case Title: Pr. Commissioner Of Income Tax -1, Chandigarh Versus M/S Kuantum Papers Ltd.

The Delhi High Court has allowed the depreciation and held that the expression "trademark" under Section 32(1)(ii) of the Income Tax Act, 1961, and in the appended Explanation 3(b) would clearly include brand names.

Bombay High Court

Capital Gain Tax, No Retrospective Applicability Of Amendment Restricting Investment In India: Bombay High Court

Case Title: Hemant Dinkar Kandlur Versus Commissioner of Income Tax

The Bombay High Court has held that the amendment restricting investment in house property in India has retrospective applicability.

Assessee Entitled To The Benefit Of VsV Act During The Pendency Of Prosecution Not Involving 'Tax Arrears': Bombay High Court

Case Title: Pragati Pre Fab India Pvt. Ltd. Versus PCIT

The Bombay High Court has directed the department to decide the application filed by the assessee in conformity with the Direct Tax Vivad Se Vishwas Act 2020.

DRP Can Give Directions Only In Pending Assessment Proceedings: Bombay High Court

Case Title: Undercarriage and Tractor Parts Pvt. Ltd. Versus DRP

The Bombay High Court has held that the Dispute Resolution Panel (DRP) could give directions only in pending assessment proceedings.

Bombay High Court Quashes Re-Assessment Order Based On Change Of Opinion Without Any Tangible New Information

Case Title: Ashraf Chitalwala Versus DCIT

The Bombay High Court has quashed the reassessment order based on a change of opinion without surfacing any tangible new information.

Bombay High Court Directs Dept. To Refund TDS Amount Deposited By Assessee Under Protest

Case Title: Grasim Industries Ltd. Versus Assistant Commissioner of Income Tax

The Bombay High Court, while invoking the doctrine of unjust enrichment, directed the department to refund the TDS amount deposited by the assessee under protest.

Bombay High Court Quashes Reassessment Notice Issued After 3 Years Without Proper Approval

Case Title: Siemens Financial Services Pvt Ltd. Versus Deputy Commissioner of Income Tax

The Bombay High Court has quashed the reassessment notice issued after 3 years without proper approval.

AO Not Justified In Disallowing Part Of The Commission Payment To Indian Hume Pipe: Bombay High Court

Case Title: The Indian Hume Pipe Co. Ltd. Versus Commissioner of Income Tax

The Bombay High Court has held that the Assessing Officer (AO) was not justified in disallowing part of the commission payment to Indian Hume Pipe.

Bombay High Court Refuses 50% Entitlement Of Beneficial Ownership In Husband's Shareholding By Portuguese Civil Code For 'Deemed Dividend' Taxability

Case Title: Dattaprasad Kamat Versus Assistant Commissioner Of Income Tax

The Bombay High Court has refused 50% entitlement to beneficial ownership in a husband's shareholding under the Portuguese Civil Code for 'deemed dividend' taxability.

Write-Off Of A Bad Debt Can’t Be Held To Be An Asset Under Section 153A(1) Of The Income Tax Act, 1961: Bombay High Court

Case Title: Ashok Commercial Enterprises Versus Assistant Commissioner of Income Taxation

The Bombay High Court has held that a write-off of a bad debt cannot be held to be an asset under section 153A(1) of the Income Tax Act, 1961.

Development Agreement Not To Be Treated As Transfer Of Possession Of Land: Bombay High Court Quashes Reassessment Notice

Case Title: Darshana Anand Damle Versus DCIT

The Bombay High Court has quashed the reassessment notice and held that the granting of a licence for the purpose of development of the flats and selling the same could not be said to be granting possession.

Karnataka High Court

No Further Recovery Of Demand Can Be Made When A Fresh Assessment Is Barred: Karnataka High Court Directs Rs.87 Crore Refund To United Spirits

Case Title: United Spirits Limited Versus Assistant Commissioner Of Income-Tax

The Karnataka High Court has held that no further demand can be made for recovery of the balance amount since a fresh assessment is barred. In other words, the tax paid by the assessee must be accepted as it is, and in the event of the tax paid being in excess of the tax liability duly computed on the basis of the return furnished and the rates applicable, the excess shall be refunded to the assessee.

Patna High Court

Income Tax Act | Assessment U/S Section 153A Must Be Based On Incriminating Material Disclosed In Search: Patna High Court

Case Title: Assistant Commissioner of Income Tax vs. Satish Kumar Keshri

LL Citation: 2023 LiveLaw (Pat) 108

The Patna High Court while providing important clarifications regarding assessments conducted under , of the Income Tax Act, 1961, emphasized that such assessments must not be arbitrary and should rely on material evidence discovered during the search.

Allahabad High Court

Refusal To Condone Delay In ITR filing , Consideration After 20 Years, Allahabad High Court Quashes Order

Case Title: Kailash Chand Agarwal vs. Principal Commissioner [Writ Tax No. - 976 of 2022]

Case Citation: 2023 LiveLaw (AB) 330

The Allahabad High Court has quashed the order refusing to delay condonation in filing ITRs for lack of records after more than 20 years of filing the condonation applications.

Penalty Order Set Aside Leads To Automatic Quashing Of Prosecution Under Section 276C(1) Of Income Tax Act: Jharkhand High Court

Case Title: Pralay Pal vs. The State of Jharkhand

LL Citation: 2023 LiveLaw (Jha) 41

In a significant ruling, the Jharkhand High Court has held that once a penalty order is set aside, it will be presumed that there is no concealment of income, automatically leading to the quashing of prosecution under Section 276C(1) of the Income Tax Act.

Gujarat High Court

Benefit Of Vera Samadhan Yojana-2019 Cannot Be Denied Due To Erroneous Payment Figure In Tax Intimation: Gujarat High Court

Case Title: Planet Automotive Pvt. Ltd. Versus State Of Gujarat

Live Law Citation: 2023 Livelaw (Guj) 152

While handing down a verdict in favor of Planet Automotive Pvt. Ltd., which had sought relief under the "Vera Samadhan Yojana-2019," a tax amnesty scheme introduced by the State of Gujarat, the Gujarat High Court, has affirmed that a minor error in the intimation should not prevent the petitioner from availing the benefits of the scheme, especially when they have met the essential criteria for eligibility.

Sikkim High Court

Unit Undergoing Relocation, Expansion And Change Of Ownership Not Eligible Under Budgetary Support Scheme: Sikkim High Court

Case Title: Zydus Wellness Products Limited Versus Union of India

The Sikkim High Court has held that if the unit undergoes relocation, expansion, or change of ownership, it will not be eligible under the scheme of budgetary support.

ITAT

Employee Stock Option Expenses Revenue In Nature: ITAT Deletes Disallowance Against Cleartrip

Case Title: Cleartrip Private Limited Versus DCIT

The Mumbai Bench of Income Tax Appellate Tribunal (ITAT) has held that employee stock option expenses are revenue in nature.

Assessment Invalid On Account Of A Mechanical Non-Speaking Approval Under Section 153D: ITAT

Case Title: Vrushali Sanjay Shinde Versus DCIT

The Mumbai Bench of the Income Tax Appellate Tribunal (ITAT) has held that assessment invalid on account of a mechanical non-speaking approval under Section 153D of the Income Tax Act.

Issuance Of Bonus Shares Does Not Amount To Transfer Of Property And Does Not Attract Section 56(2)(vii)(c): ITAT

Case Title: DCIT Versus Aruna Chandhok

The Delhi Bench of the Income Tax Appellate Tribunal (ITAT) has held that in the issue of bonus shares, the money remains with the company and nothing comes to the shareholders as there is no transfer of the property and the provisions of Section 56(2)(vii)(c) of the Income Tax Act.

TDS Not Required To Be Deducted At The Time Of Grant Of ESOP: ITAT

Case Title: DCIT Versus Total Energies Marketing India Pvt. Ltd.

The Mumbai Bench of the Income Tax Appellate Tribunal (ITAT) has held that TDS is not required to be deducted at the time of grant of an employee stock ownership plan (ESOP).

TNMM Should Be Applied In Respect Of International Transaction Of `Sale Of Finished Goods’: ITAT

Case Title: DCIT Versus M/s. Ampacet Speciality Products Private Limited

The Pune bench of the Income Tax Appellate Tribunal (ITAT) has held that the Transactional Net Margin Method (TNMM) should be applied in respect of international transactions of `Sale of finished goods’.

‘Non-Cooperative Attitude’ Cannot Be The Basis Of Imposing Penalty: ITAT

Case Title: Alankit Imaginations Ltd. Versus DCIT

The Delhi Bench of Income Tax Appellate Tribunal (ITAT) has held that a ‘non-cooperative attitude’ as such in itself cannot be the basis for imposing penalties without specifically bringing on record the specific notices and their specific non-compliances.

Payment To UK-Based Company For Preparing Candidate Written Report By CAE Simulation Training Is Not A Royalty: ITAT

Case Title: CAE Simulation Training P. Ltd. Versus DCIT

The Delhi Bench of Income Tax Appellate Tribunal (ITAT) has held that payment to a UK-based company for preparing candidate written reports by CAE Simulation Training is not a royalty.

Capital Gain Exemption Not Available For A Residential House Purchased Abroad After April 1, 2015: ITAT

Case Title: Khalid Sayed Versus Centralized Processing Centre

The Mumbai Bench of Income Tax Appellate Tribunal (ITAT) has held that capital gain exemption is not available for a residential house purchased abroad after April 1, 2015.

AO Can’t Ask Assessee To Prove Non-Occurring Of An Event, ITAT Deletes Income Tax Addition Worth Rs. 2 Crores

Case Title: ITO versus Gammon Construction Pvt. Ltd.

The Delhi Bench of Income Tax Appellate Tribunal (ITAT) has deleted the income tax addition worth Rs. 2 crores and held that the AO cannot ask the assessee to prove the non-occurring of an event.

ITAT Directs Dept. To Allow Interest Paid On Borrowings Against FD Income If Reasonable Link Exists

Case Title: D D & Co. Versus Asst. Commissioner of Income-tax

The Mumbai Bench of the Income Tax Appellate Tribunal (ITAT), while remanding the matter back to the department, held that the interest paid on borrowings is allowable against FD income if any reasonable link exists.

Interconnectivity Utility Charges Can’t Be Taxed As Royalty Under India-Austria Tax Treaty: ITAT

Case Title: M/s. Al Telekom Austria Versus The Deputy Commissioner of Income Tax

The Bangalore Bench of the Income Tax Appellate Tribunal (ITAT) has held that interconnectivity utility charges (IUC) cannot be taxed as royalty under the India-Austria Double Taxation Avoidance Treaty (DTAA).

No Income Tax Payable On Bonus Shares Under The Head ‘Income From Other Sources’: ITAT

Case Title: DCIT Versus Smt Aruna Chandhok

The Delhi Bench of the Income Tax Appellate Tribunal (ITAT) has held that income tax is not chargeable on bonus shares under the heading ‘income from other sources’.

Income Tax Raid, ITAT Finds Money Laundering, Directs Assessing Officer To Inform SEBI, PMLA Authorities

Case Title: Naresh Manakchand Jain Versus ACIT

The Mumbai Bench of the Income Tax Appellate Tribunal (ITAT) has directed the AO to share information on all persons allegedly involved in the racket of money laundering.

Fee Paid By TCS Towards The Brand To Tata And Sons Ltd. Is Not Capital In Nature, Royalty Not Chargeable: ITAT

Case Title: Tata Consultancy Services Versus DCIT

The Mumbai Bench of Income Tax Appellate Tribunal (ITAT) has held that the fee paid by the assessee, Tata Consultancy Services (TCS), towards the brand to Tata and Sons Ltd. is not capital in nature for the reason that the brand is not owned by the assessee.

There Can Be No Protective Addition In Absence Of Substantive Addition: ITAT

Case Title: Kanav Metals Versus ITO

The Delhi bench of the Income Tax Appellate Tribunal (ITAT) has held that protective addition presupposes the existence of substantive additions; there can be no protective addition in the absence of substantive addition.

Presumptive Taxation, Income From Profession Can’t Be In Absence Of Notified Professional Qualification: ITAT

Case Title: Shri Vishnu Dattatraya Ponkshe Versus Central Processing Centre

The Mumbai bench of the Income Tax Appellate Tribunal (ITAT) has held that income from professions against which TDS is deducted cannot be taxed at 50% in the absence of notified professional qualification.

Bogus Capital Gain By Sale Of Shares, Assessee Not A Beneficiary, ITAT Deletes Addition

Case Title: Deputy Commissioner of Income Tax Versus Shri Rajnikant Prabhudas Mandavia

The Ahmedabad Bench of Income Tax Appellate Tribunal (ITAT) has deleted the addition on account of bogus capital gain by the sale of shares of a penny stock company in the absence of incriminating material.

ITAT Excludes Infosys From The List Of Comparables Under Software Development Services Segment

Case Title: Addl. CIT Versus Avaya India Pvt. Ltd.

The Delhi bench of the Income Tax Appellate Tribunal (ITAT) has upheld the exclusion of Infosys from the list of comparables under the software development services segment.

Income With Respect To Contribution Received From Recognized Stock Exchange Is Eligible For Section 10 (23EC) Exemption: ITAT

Case Title: Income Tax Officer Versus NCDEX Investor (Client) Protection Fund Trust

The Mumbai Bench of Income Tax Appellate Tribunal (ITAT) has held that the income of the assessee with respect to contributions received from recognized stock exchanges and the members thereof is eligible for exemption under Section 10 (23EC) of the Income Tax Act.

Freight Inward Charges Are Part And Parcel Of Purchase Of Goods, TDS Not Deductible: ITAT

Case Title: Kalpesh Ganpatlal Patel Versus ITO

The Ahmedabad Bench of Income Tax Appellate Tribunal (ITAT) has observed that freight inward charges were part and parcel of the purchase of the goods. It is settled law that the provisions of the TDS cannot be attracted to the transaction of the purchase and sale of the goods.

ITAT Deletes Penalty Of Rs.132 Cr. For Misreported Income Against Jaypee Cement

Case Title: M/s. Jaypee Cement Corporation Ltd. Versus ACIT

The Delhi Bench of Income Tax Appellate Tribunal (ITAT) has deleted the penalty of Rs. 132 crore for misreported income against the assessee, Jaypee Cement.

Indirect Tax

Delhi High Court

GST | Show Cause Notice Must Clearly Indicate Reasons For Which Registration Cancellation Is Proposed: Delhi High Court

Case Title: M/S Frequent Logistics Services PVT. LTD. v. Commissioner Goods and Service Tax Department And ORS.

Delhi High Court has recently set aside show cause notice proposing to cancel GST registration and the consequential order cancelling the same on the ground that reasons for cancelling registration of assessee were not clearly mentioned in the show cause notice.

Delhi High Court Upholds Validity Of Rule 8 of Chewing Tobacco And Unmanufactured Tobacco Packing Machines Rules 2010

Case Title: Gopal Corporates LLP Versus Commissioner Delhi-East

The Delhi High Court has upheld the validity of Rule 8 of the Chewing Tobacco and Unmanufactured Tobacco Packing Machines (Capacity Determination and Collection of Duty) Rules 2010 (CTUT), which deals with the alteration in the number of operating packing machines.

Calcutta High Court

Accused Entitled To Cross-Examine Statements Of Natural Person Recorded Under Customs Act, 1962: Calcutta High Court

Case Title: Monotosh Saha Versus Special Director, Enforcement Directorate, Foreign Exchange Management Act

The Calcutta High Court has held that the accused is entitled to cross-examine natural persons whose statements were recorded under the Customs Act, 1962.

Lawyer-Client Privileged Communication; GST Dept. Can’t Issue Notice To Lawyer : Calcutta High Court

Case Title: Himangshu Kumar Ray Versus State Of West Bengal

The Calcutta High Court has held that the GST department cannot issue notice to the advocate appearing on behalf of the assessee.

Patna High Court

Tax Authorities Should Not Act As Extortionist, Act Like Business Facilitator; Patna High Court Imposes Cost On Officer

Case Title: Sita Pandey Versus The State of Bihar

The Patna High Court has imposed a cost of Rs. 5,000 on officers for surreptitiously making tax recoveries contrary to GST enactment.

Patna High Court Rejects Bail Plea Of Accused In Money Laundering Case Due to Lack Of Satisfactory Explanation Of Assets And Cash Holdings

Case Title: Chandrama Prasad Singh @ Chandrama Prasad @ Tuntun Singh vs. The State of Bihar and Another

LL Citation: 2023 LiveLaw (Pat) 106

The Patna High Court has rejected the bail application of the petitioner in connection with a Special (Trial) PMLA (Prevention of Money Laundering Act) Case arising from ECIR (Enforcement Case Information Report) proceedings. The petitioner faced charges under Sections 3, 4, 44, and 45 of the Prevention of Money Laundering Act, 2002.

Appellate Authority Or Article 226 Of The Constitution Cannot Extend Delay Condonation Period With A Specified Timeframe: Patna High Court

Case Title: M/s Narayani Industry vs. The State of Bihar

LL Citation: 2023 LiveLaw (Pat) 107

The Patna High Court has issued a significant ruling clarifying the limitations of Article 226 of the Indian Constitution in cases involving the Bihar Goods and Services Tax Act, 2017 (BGST). The court has held that when a statute prescribes a specific time frame for condoning delays, the Appellate Authority under Article 226 does not have the authority to extend this stipulated period.

Income Tax Act | Assessment U/S Section 153A Must Be Based On Incriminating Material Disclosed In Search: Patna High Court

Case Title: Assistant Commissioner of Income Tax vs. Satish Kumar Keshri

LL Citation: 2023 LiveLaw (Pat) 108

The Patna High Court while providing important clarifications regarding assessments conducted under , of the Income Tax Act, 1961, emphasized that such assessments must not be arbitrary and should rely on material evidence discovered during the search.

Patna High Court Upholds Constitutional Validity Of Section 16(4) Of CGST Act, 2017

Case Title: Gobinda Construction Versus UOI

Citation: 2023 LiveLaw (Pat) 109

The Patna High Court upheld the constitutional validity of Section 16(4) of the CGST/BGST Act, 2017 and did not find Section 16(4) to be violative or inconsistent with the fundamental rights guaranteed under the constitution.

Civil Liability Imposed for Failing to Settle Tax Dues Due to Incorrect Input Tax Credit Claim, Attracts Penalty: Patna High Court

Case Title: M/s Munna Traders vs. The State of Bihar and Others

LL Citation: 2023 Livelaw (Pat) 112

In a recent verdict, the Patna High Court upheld the imposition of interest and penalty on M/s Munna Traders, an assessee under the Bihar Goods and Services Tax Act (BGST Act). The penalties were enforced due to an excessive claim of input tax credit, with the Court deeming the penalty as a civil liability arising from the failure to pay the due tax, stemming from an erroneous input tax credit claim.

Allahabad High Court

GST Act | If Invoice Or Any Other Specified Document Is Accompanying Goods, Then Consigner Or Consignee Are Deemed To Be Owner: Allahabad HC

Case Title: Western Carrier India Ltd v. State Of U.P. And 4 Others Citation: 2023 LiveLaw (AB) 347

The Allahabad High Court held that if goods are accompanied by invoices or any other document as specified, either the consignee or the consigner shall be deemed owner of the goods. Penalty, if any, should be imposed under Section 129(1)(a) of the Goods and Services Tax Act, 2017.

UP VAT | Burden To Prove Purchase From Registered Dealer On Assessee: Allahabad High Court

Case Title: The Commissioner, Commercial Tax v. M/S Ramway Foods Ltd. [SALES/TRADE TAX REVISION No. - 26 of 2023]

Case Citation: 2023 LiveLaw (AB) 334

In a revision preferred by the Tax Department, the Allahabad High Court has held that the burden to prove that purchases were made from registered dealer lies on the Assesee claiming the same. The Department cannot be made to discharge a negative burden to prove that the sales were made from unregistered dealers.

Can’t Deviate From Text Of GST Provisions, Rules And Forms In GST: Allahabad High Court Quashes Penalty

The Allahabad High Court has held that the Goods and Service Tax Act, 2017 is a complete code in itself and there can be no deviation from the text of the Act, Rules and Forms.

GST | Allow Assesee To Upload ITC-01 To Claim Input Tax Credit: Allahabad High Court

Case Title: M/S Anupam Electricals And Electronics vs. State of U.P. and Another

The Allahabad High Court has allowed the assessee-petitioner to upload ITC-01 to enable him to avail of Input Tax Credit for shifting from the Composite Scheme to the Normal Scheme.

GST - Input Tax Credit Cannot Be Denied To Purchaser Merely Because Seller Didn't Record Transaction In GSTR-2A Form: Kerala High Court

Counsel for the Petitioner: Advocates Aji V. Dev, H. Abdul Lathief, Alan Priyadarshi Dev, and S. Sajeevan

Citation: 2023 LiveLaw (Ker) 495

The Kerala High Court recently held that Input Tax Credit (ITC) cannot be denied to a purchaser merely on ground of non-reflection of the transaction in the GSTR-2A Form.

KVAT Act | Tax Doesn't Apply To Transfer Of Goods But To Transfer Of 'Right To Use' Goods: Kerala High Court

Case Title: State of Kerala v. M/s Sathyam Audios and connected matters

Citation: 2023 LiveLaw (Ker) 463

In a significant ruling, the Kerala High Court recently held that the tax under the KVAT Act applied not to the transfer of goods but to the transfer of the right to use goods.

GST Registration Cancellation: Superintendent Of Central Tax To Take Independent Decision Without Influenced By Direction Of DGGI: Kerala High Court

Case Title: Muhammad Salmanul Faris K Versus The Superintendent

The Kerala High Court has held that the Superintendent of Central Tax should take an independent decision without being influenced by the direction of the DGGI, Kochi Zonal Unit.

Jharkhand High Court

Amendment In CGST Rule 89(4) To Have Prospective Effect: Jharkhand High Court

Case Title: M/s. Tata Steel Limited vs Union of India and Others

LL Citation: 2023 LiveLaw (Jha) 42

Jharkhand High Court has ruled that the explanation inserted in Rule 89(4) of the CGST Rules, 2017, through Notification No. 14/2022-Central Tax dated 05.07.2022, is not of a clarificatory nature and thus will be applied prospectively.

Receipts From Provision Of Background Screening And Investigation Services To Clients In India Is Not Royalty/FTS: ITAT

Case Title: HireRight Ltd. Versus ACIT

The Delhi Bench of the Income Tax Appellate Tribunal (ITAT) has held that receipts from the provision of background screening and investigation services to clients in India are not royalties or fees for technical services (FTS).

Income Tax Act; Mere Uploading Of Notice On Assessee’s E-Portal Is Not Proper Service: ITAT

Case Title: Sant Kabir Mahasabha Versus The CIT (Exemption)

The Chandigarh Bench of the Income Tax Appellate Tribunal (ITAT) has held that mere uploading of notice on the assessee’s e-Portal of the Income Tax Department is not proper service as per the Income Tax Act.

Damage On Account Of Right To Sue Is A Capital Receipt Not Chargeable To Tax: ITAT

Case Title: Virendra Bhavanji Versus PCIT

The Mumbai Bench of the Income Tax Appellate Tribunal (ITAT) has held that the damage on account of the right to sue is a capital receipt not chargeable to tax.

Cognizant Technology Liable For Dividend Distribution Tax On Buyback Of Rs 19,000-Crore Shares: ITAT

Case Title: M/s.Cognizant Technology- Solutions India Pvt. Ltd. Versus ACIT

The Chennai Bench of Income Tax Appellate Tribunal (ITAT) has held that Cognizant Technology is liable to pay dividend distribution tax on the buyback of Rs. 19,000 crore shares.

Punjab & Haryana High Court

Innovation & Development Services Provided To A German Company Amounts To Export Of Service: Punjab & Haryana High Court

Case Title: M/s Fresenius Kabi Oncology Ltd. Versus Union of India

The Punjab and Haryana High Court has held that innovation and development services provided to a German company amount to an export of services.

Rajasthan High Court

Rajasthan High Court Seeks A Mechanism Matching Supplier's Credit Note With ITC Reversal, From Authorities

Case Title: Hindustan Unilever Limited Versus Union Of India

The Rajasthan High Court has asked for suggestions from the authorities with respect to a mechanism for matching a supplier's credit note with input tax credit (ITC) reversal.

CESTAT

Excess Amount Paid In Service Tax Can Be Adjusted Against The Short Payment In Education Cess: CESTAT

Case Title: M/s Paharpur Cooling Towers Ltd. Versus Commissioner of Service Tax, Kolkata

The Kolkata Bench of the Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has held that the excess amount paid in service tax can be adjusted against the short payment in education cess.

Customs Broker Licence Can’t Be Revoked On Mere Charge Of Mis–Declaration And Undervaluation Of The Illegal Imports: CESTAT

Case Title: Shyam Singh Versus Commissioner Custom

The Delhi Bench of the Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has held that the licence cannot be revoked on a mere charge of misdeclaration and undervaluation of illegal imports.

CESTAT Quashes Confiscation Of Goods, Imposition Of Redemption Fine, Penalty, Customs Duty Demand In Absence Of CLRI Report

Case Title: M/s. Benign International Versus Commissioner of Customs

The Chennai Bench of the Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has held that it quashes confiscation of goods, imposition of redemption fines, penalties, and customs duty demands in the absence of the Central Leather Research Institute, Chennai (CLRI) Report.

Manufacture Of Barges, Cenvat Credit Available On Steel Used: CESTAT

Case Title: Shreeji Shipping Versus Commissioner of Central Excise & ST, Rajkot

The Ahmedabad Bench of the Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has held that cenvat credit is allowable on steel materials used in the manufacture of barges.

CISF Lacked Clarity About Leviability Of Service Tax On The Security Services; CESTAT Quashes Penalty

Case Title: Commissioner of Central Excise & ST, Surat Versus Central Industrial Security Force

The Ahmedabad Bench of the Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has quashed the penalty on the Central Industrial Security Force (CISF) on the grounds that CISF lacked clarity about the leviability of service tax on the security services.

Fabrication Job With Help Of Labour Can’t Be Manpower Recruitment Or Supply Agency Service: CESTAT

Case Title: Hitech Industries Versus C.S.T.-Service Tax – Ahmedabad

The Ahmedabad Bench of the Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has held that carrying out a job of fabrication with the help of labour cannot be classified as manpower recruitment or supply agency service.

Exemption Claim On Service Of Rent-A-Cab Provided In SEZ To Be Supported By Invoices: CESTAT

Case Title: Bittu Travels Versus Commissioner of Central Excise & ST, Rajkot

The Ahmedabad Bench of Customs, Excise and Service Tax Appellate Tribunal (CESTAT)has held that exemption claim on service of rent-a-cab provided in Special Economic Zone (SEZ) to be supported by invoices.

Ishant Sharma's Engagement With The Kolkata Knight Riders Should Be Regarded As A Contract Of Employment Rather Than A Taxable Service: CESTAT

Case Title: Ishant Sharma Versus Commissioner of Central Excise and Service Tax

The Delhi Bench of the Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has held that Ishant Sharma's engagement with the Kolkata Knight Riders should be regarded as a contract of employment rather than a taxable service.

Shore Tank Receipt Quantity Of IOCL, BPCL, HPCL As Per Ex-Bond Bills Of Entry Are Basis For Calculation Of Customs Duty: CESTAT

Case Title: Indian Oil Corporation Limited Versus Commissioner of Customs, Kandla

The Ahmedabad Bench of the Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has held that the shore tank receipt quantity of Indian Oil Corporation Limited (IOCL), Bharat Petroleum Corporation Limited (BPCL), and Hindustan Petroleum Corporation Limited (HPCL) as shown in ex-bond bills of entry is to be taken for calculation of the customs duty.

Registration Of The Premises Is Not A Precondition For Availment Of Cenvat Credit: CESTAT

Case Title: M/s Bechtel India Private Limited Versus Commissioner of Service Tax, Delhi

The Chandigarh bench of the Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has held that the registration of the premises is not a precondition for availing of cenvat credit.

Mirror And Sari Guard, Part Of Final Product- Motorcycle, CESTAT Allows Cenvat Credit To Hero MotoCorp

Case Title: M/s Hero Motorcorp Ltd. Versus Commissioner of Central Excise, Delhi-III

The Chandigarh Bench of the Customs, Excise, and Service Tax Appellate Tribunal (CESTAT), while allowing Cenvat Credit to Hero Motocorp, held that it is the statutory obligation of two-wheeler manufacturers to clear motorcycles from the factory with mirror assembly and sari guard.

Activity Of Collection, Cleaning, Segregation And Stacking Of Blasted Raw Magnesite Is Classifiable As ‘Mining Services’: CESTAT

Case Title: M/s. KRSS Manpower Service Versus Commissioner of GST & Central Excise

The Chennai Bench of the Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has held that the activity of collection, cleaning, segregation, and stacking of blasted raw magnesite is classifiable under the category ‘Mining Services’.

CESTAT Directs Excise Duty Refund To IOCL Paid Under Protest

Case Title: Indian Oil Corporation Ltd. Versus C.C.E. & S.T.-Surat-ii

The Ahmedabad bench of the Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has directed the excise duty refund to Indian Oil Corporation Ltd. (IOCL) paid under protest.

Physician Sample Sold To Distributor For Free Distribution To Doctors Covered Under Section 4(i)(a) Of Central Excise Act: CESTAT

Case Title: Sun Pharmaceuticals Industries Limited Versus C.C.E. & S.T.-Vadodara-ii

The Ahmedabad Bench of Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has held that physician samples sold to distributors for free distribution to doctors are covered under Section 4(i)(a) of the Central Excise Act.

Pre-Fabricated Shelters, Towers Essential Ingredient Of Telecommunication Service: CESTAT Allows Cenvat Credit

Case Title: Tower Vision India Private Limited Versus Commissioner of Service Tax-Delhi

The Chandigarh Bench of Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has held that prefabricated shelters and towers are essential ingredients of telecommunication services and qualify as input services.

Waste, Gums, Fatty Acids Arising During Manufacturing Of Vegetable Oils Are Eligible For Excise Duty Exemption: CESTAT

The Chandigarh Bench of Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has held that waste, gums, fatty acids, etc. arising during the course of the manufacture of vegetable oils are eligible for the excise duty exemption.

Transporters/Contractors Rendering Transport Services In Mines Cannot Be Said To Be GTA In Absence Of Consignment Note: CESTAT

Case Title: M/s. The Ramco Cements Limited Versus Commissioner of Central Excise

The Chennai Bench of Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has held that in the absence of a consignment note, transporters or contractors rendering transport services in mines cannot be said to be goods transport agencies (GTA).

No Demand Under CICS or CRCS Could Survive Against Works Contract Involving Composite Contracts Prior To 01.06.2007: CESTAT

Case Title: M/s. Mertho Constructions Versus Commissioner of Central Excise

The Chennai Bench of Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has held that if works contract service was undertaken prior to June 1, 2007, involving contracts of composite nature, no demand under Commercial or Industrial Construction Service (CICS) or Construction of Complex Service (COCS) could survive.

AAR

Olivol Body Oil Takes Care Of The Skin, And Doesn’t Cure Skin, Attracts 28% GST: AAR

Applicant’s Name: Indranil Chatterjee

The West Bengal Authority of Advance Ruling (AAR) has ruled that Olivol Body Oil takes care of the skin but does not cure it. Olivol Body Oil is covered under tariff heading 3304.


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