Indirect Tax Cases Weekly Round-Up: 28 April To 4 May 2024

Update: 2024-05-06 10:35 GMT
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Supreme Court Supreme Court Seeks Data Of GST Arrests, Says Citizens' Harassment Won't Be Allowed Due To Any Ambiguity In Arrest Provisions Case 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...

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Supreme Court

Supreme Court Seeks Data Of GST Arrests, Says Citizens' Harassment Won't Be Allowed Due To Any Ambiguity In Arrest Provisions

Case 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.

Delhi High Court

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.

Life Of Provisional Attachment Order Is Only One Year: Delhi High Court

Case Title: M/S Krish Overseas Versus Commissioner Central Tax-Delhi West & Ors.

The Delhi High Court has held that the life of an order of provisional attachment is only one year.

Allahabad High Court

[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.

CESTAT

No Confiscation If Prior Permission Taken From Customs Dept. For Storage Of Non-Bonded Goods In Bonded Warehouse: CESTAT

Case Title: M/s. Ganesh Benzoplast Limited Versus Commissioner of Customs, Nhava Sheva-I

The Mumbai Bench of Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has held that the provisions of Sections 111(j) and 111(h) of the Customs Act cannot be invoked when prior permission is given by the customs authorities for the storage of non-bonded goods in a bonded warehouse after payment of due duty.

Service Tax Demand Not Sustainable On Imparting Education With Intensive Preparation For Competitive Exams: CESTAT

Case Title: BRK Educational Society Versus Commissioner of Central Excise & Service Tax, Guntur

The Hyderabad Bench of Customs, Excise and Service Tax Appellate Tribunal (CESTAT) has held that the appellant-Society is not liable to pay service tax on their activity of imparting education as per the Intermediate curriculum, with intensive preparation for competitive exams.

No Service Tax Payable On Consideration Received For Operating And Arranging Outbound Tours: CESTAT

Case Title: M/s. Weldon Tours & Travels Pvt. Ltd. Versus Commissioner of Service Tax - Delhi

The Delhi Bench of Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has held that no service tax is payable on a tour operator's services provided beyond the territorial limits of India.

Cenvat Credit Rules, 2004 And Central Excise Act, 1944 Lack Provision To Allow Cash Refund Of Cess Lying In Cenvat Credit Balance: CESTAT

Case Title: M/s. NMDC Limited Versus Commissioner of C.G.ST.

The Delhi Bench of Customs, Excise and Service Tax Appellate Tribunal (CESTAT) has held that Cenvat Credit Rules, 2004 and Central Excise Act, 1944 lacks provision to allow cash refund of cesses lying in cenvat credit balance.


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