Indirect Tax Half Yearly Digest: January To June 2024

Update: 2024-07-10 14:00 GMT
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Supreme CourtCustoms Act | Importer's Subsequent Import Bill Be Discarded If Undervalued To Previously Imported Identical Or Similar Goods: Supreme CourtCase Title: M/s Global Technologies and Research versus Principal Commissioner of Customs, New Delhi (Import)Citation : 2024 LiveLaw (SC) 239Recently, the Supreme Court held that under the Customs Act, the Importer's Bill of Entry of...

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Supreme Court

Customs Act | Importer's Subsequent Import Bill Be Discarded If Undervalued To Previously Imported Identical Or Similar Goods: Supreme Court

Case Title: M/s Global Technologies and Research versus Principal Commissioner of Customs, New Delhi (Import)

Citation : 2024 LiveLaw (SC) 239

Recently, the Supreme Court held that under the Customs Act, the Importer's Bill of Entry of subsequent imported goods can be discarded if the subsequent imported goods are undervalued to the previously imported identical or similar goods.

Customs Act | S. 71 Inapplicable If Imported Goods Were Stocked Outside Notified Public Bonded Warehouse With Permission : Supreme Court

Case Title: M/s Bisco Limited V Commissioner Of Customs And Central Excise

Citation : 2024 LiveLaw (SC) 257

The Supreme Court has held that Section 71 of the Customs Act, 1962 would be inapplicable to cases where imported goods were stocked outside the notified public bonded warehouse with the permission of the concerned officer.

Customs Act | Claimant Entitled To Interest On Delayed Return Of The 'Duty Drawback' : Supreme Court

Case Title: Union Of India And Ors. Versus M/S. B. T. Patil And Sons Belgaum (Construction) Pvt. Ltd.

Citation : 2024 LiveLaw (SC) 90

The Supreme Court observed that if there is a delay in refund of the 'duty drawback' to the claimant under the Customs Act, 1962, then the claimant would be entitled to interest in addition to the amount of drawback at the rate of interest which was fixed by the Central Government at the relevant point of time.

Hiring Of Motor Vehicle Or Cranes Is Not 'Sale Of Goods' If Control Over Equipment Is Retained By Contractor, VAT Can't Be Levied: Supreme Court

Case Title: M/s. K.P. Mozika v Oil and Natural Gas Corporation Ltd. & Ors.

Citation: 2024 LiveLaw (SC) 26

The Supreme Court has held that the hiring of motor vehicles/cranes from a contractor is a service and would not attract Sales Tax or Value Added Tax (VAT) assuming the transaction to be the sale of goods. The Court clarified that the transfer of the right to use the goods not only includes possession but also control over goods by the user. If the control over the goods remains with the contractor during the hire period, then it cannot be termed as sale of goods and only service tax can be levied.

Definition Of 'Manufacture' U/s 2(e)(1) Of UP Trade Tax Act Does Not Include Blending And Packaging Tea: Supreme Court

Case Title: Commissioner Of Trade Tax, U.P. v. M/s Mishra Tea Blending And Packing Industries, UP [CIVIL APPEAL NOS. 5677-5678/2011]

Citation: 2023 LiveLaw (SC) 1076

Recently, the Supreme Court has held that the definition of 'manufacture' under Section 2(e)(1) of the U.P. Trade Tax Act, 1948 does not include blending and packaging tea.

Supreme Court Dismisses UP Govt.'s Appeal Against Allahabad HC Order Quashing Demand Of Rs. 235.52 Crores Against VIVO

Case Title: State of Uttar Pradesh and Anr. v. M/s Vivo Mobile India Private Ltd. & Ors.

The Supreme Court dismissed a Special Leave Petition filed by the State of Uttar Pradesh against the order of the Allahabad High Court quashing the demand of Rs. 235.52 Crores raised against Vivo Mobile India Private Limited raised by GST Authorities vide order under Section 74(9) of the Goods and Service Tax Act 2017.

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.

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.

Labelling and Re-Labelling of Containers Qualifies as 'Manufacture' for CENVAT Credit Under Excise Act: Supreme Court

Case Details: Commissioner Of Central Excise Belapur Vs Jindal Drugs Ltd.

Citation : 2024 LiveLaw (SC) 374

The Supreme Court has held that labelling or re-labelling of containers amounts to 'manufacture' under the Central Excise Act for availing cenvat credit.

Delhi High Court

Delhi High Court Directs GST Dept. To Pay 6% Interest For Delayed IGST Refund

Case Title: Raghav Ventures Versus Commissioner Of Delhi Goods & Services Tax

Citation: 2024 LiveLaw (Del) 281

The Delhi High Court has directed the GST department to pay 6% interest on delayed IGST refund.

Failure To Consider Reply On Merits; Delhi High Court Quashes GST Demand Against Max Healthcare

Case Title: Max Healthcare Institute Limited Versus UOI

Citation: 2024 LiveLaw (Del) 283

The Delhi High Court has quashed the GST demand of Rs. 8.23 crore against Max Healthcare.

Clandestine Removal And Under-Valuation Charges Can't Be Sustained Merely Based On Assumptions And Presumptions: Delhi High Court

Case Title: Commissioner Of Central Excise Versus Kuber Tobacco Products Pvt. Ltd. & Anr.

Citation: 2024 LiveLaw (Del) 306

The Delhi High Court has held that the charges of clandestine removal and under valuation cannot be sustained merely on the basis of assumptions and presumptions. The absence of direct, credible evidence linking the respondents to the alleged offences necessitate the dismissal of the charges.

Tribunal's Discretion To Dispense Obligation To Deposit Duty/Interest Or Penalty In Cases Of Undue Hardships: Delhi High Court

Case Title: G & S International Versus Commissioner Of Customs

Citation: 2024 LiveLaw (Del) 332

The Delhi High Court has held that the proviso to Section 129E of the Customs Act, 1962, gives discretion to the Tribunal in cases of undue hardships to dispense the obligation to deposit the duty, interest, or penalty.

Second Petition Can't Be Filed If First Petition Challenging ITC Reversal Is Unconditionally Withdrawn: Delhi High Court

Case Title: Jetibai Grandsons Services India Pvt Ltd Versus Union Of India & Ors.

Citation: 2024 LiveLaw (Del) 384

The Delhi High Court has held that the petitioner, having unconditionally withdrawn the earlier petition and liberty being specifically declined to the petitioner, is precluded from filing the fresh petition seeking the same relief that was earlier withdrawn by the petitioner.

Exporters Not Traceable, Customs Broker Can't Be Held Liable After Issuance Of 'Let Export Orders': Delhi High Court

Case Title: Naman Gupta Versus Commissioner Of Customs Airport And General

Citation: 2024 LiveLaw (Del) 133

The Delhi High Court has held that as a customs broker, the petitioner cannot be held liable because exporters were not traceable after the issuance of 'Let Export Orders' and the export of the goods out of the country.

Delhi High Court Directs Dept. To Consider ITC Refund In Light Of CBIC Circular Extending Benefit Of Exclusion Period

Case Title: M/S Bharti Enterprises Versus Commissioner, Value Added Tax, Department Of Trade And Taxes & Ors.

Citation: 2024 LiveLaw (Del) 161

The Delhi High Court has directed the department to consider refunding the input tax credit (ITC) in light of the circular issued by the Central Board of Indirect Taxes and Customs (CBIC) extending the benefit of the exclusion period.

Period Spent In Disposal Of Appeal Before CESTAT Shall Not Be Counted Towards Period Stipulated Under Section 28 (9) Of Customs Act: Delhi High Court

Case Title: Anand International And Ors. Versus Commissioner Of Customs

Citation: 2024 LiveLaw (Del) 168

The Delhi High Court has held that the period spent in the disposal of the appeal before the CESTAT, i.e., between the filing and the final order being passed, shall not be counted towards the period stipulated under Section 28 (9) of the Customs Act.

Delhi High Court Quashes SCN & Order Lacking Reasons For Retrospective Cancellation Of GST Registration

Case Title: Apshara Garments Pvt. Ltd Versus Commissioner Of Delhi Goods And Service Tax

Citation: 2024 LiveLaw (Del) 224

The Delhi High Court has quashed the show cause notice, which was lacking reasons for retrospective cancellation of GST registration.

Coconut Oil Sold By Amway As Hair Oil, Not Classifiable As Edible Oil Under DVAT Act: Delhi High Court

Case Title: Amway India Enterprises Private Limited Versus Commissioner, Vat, Delhi & Ors.

Citation: 2024 LiveLaw (Del) 35

The Delhi High Court has held that coconut oil sold by Amway as a hair oil cannot be classified as edible oil under the DVAT Act.

Taxpayer Not Provided Opportunity To Object To Retrospective Cancellation Of GST Registration: Delhi High Court Directs Restoration

Case Title: M/S Een Een Sales Corporation Versus Assistant Commissioner Of Central Goods And Service Tax

Citation: 2024 LiveLaw (Del) 52

The Delhi High Court has held that taxpayers are not provided an opportunity to object to the retrospective cancellation of GST registration.

GST Registration Can't be Cancelled Retrospectively For Non-Filing Of Returns: Delhi High Court

Case Title: Aryan Timber Store Through Its Prop Virender Kumar Versus Sales Tax Officer

Citation: 2024 LiveLaw (Del) 87

The Delhi High Court has held that GST registration cannot be cancelled with retrospective effect for mere non-filing of returns.

Delhi High Court Directs Customs Commissioner To Release Amount After Realising Redemption Fine, Penalty From Seized Foreign Currency

Case Title: Oguljeren Hajyyeva Versus Commissioner Of Customs

Citation: 2024 LiveLaw (Del) 61

The Delhi High Court has directed the Customs Commissioner to release the remaining amount after realising the redemption fine and penalty from the seized foreign currency.

Order Cancelling GST Registration With Retrospective Effect Bereft Of Reasons, Liable To Be Quashed: Delhi High Court

Case Title: RS Wires Industries Versus Sales Tax Officer Class

Citation: 2024 LiveLaw (Del) 18

The Delhi High Court has quashed the order cancelling GST registration with retrospective effect, bereft of reasons.

GST ITC Refund Can't Be Rejected Merely On Ground Of Non-Supply Of Authenticated Document: Delhi High Court

Case Title: M/S Mittal Footcare Versus The Commissioner Of Central Goods And Services Tax

Citation: 2024 LiveLaw (Del) 21

The Delhi High Court has held that an input tax credit (ITC) refund cannot be rejected merely on the grounds of the non-supply of authenticated documents.

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.

Citation: 2024 LiveLaw (Del) 389

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

Citation: 2024 LiveLaw (Del) 416

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

Citation: 2024 LiveLaw (Del) 419

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.

Citation: 2024 LiveLaw (Del) 447

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

Citation: 2024 LiveLaw (Del) 472

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

Citation: 2024 LiveLaw (Del) 505

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

Citation: 2024 LiveLaw (Del) 507

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

Citation: 2024 LiveLaw (Del) 515

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.

Citation: 2024 LiveLaw (Del) 526

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

Delhi High Court Quashes MOOWR Instructions Denying Benefit To Solar Power Generation Units

Case Title: Acme Heergarh Powertech Private Limited Versus CBIC

Citation: 2024 LiveLaw (Del) 574

The Delhi High Court has held that the statutory scheme underlying the Manufacture and Other Operations in Warehouse Regulations, 2019 (MOOWR) cannot be construed as seeking to exclude solar power generation in terms of permissions granted under Section 65 of the Customs Act, 1962.

Non-Compliance Of Notification Conditions For Export Of Banned Non-Basmati White Rice; Delhi High Court Dismisses Exporter's Appeal

Case Title: VI Exports India Private Limited Versus Union Of India

Citation: 2024 LiveLaw (Del) 578

The Delhi High Court while dismissing the rice exporter's appeal, upheld the decision of the single bench holding that the exporter cannot be permitted to export 11,000 MT of banned non- basmati white rice, due to the non-fulfilment of the conditions entitling it to an exemption from the ban on export imposed by Notification bearing no. 20/2023 dated 20th July, 2023 issued by the Department of Commerce, Government of India.

Condition Of Pre-Deposit Duly Complied, Delhi High Court Restores Appeal On Board Of CESTAT

Case Title: Ankit Madan Versus Registrar, Customs, Excise And Service Tax Appellate Tribunal & Ors.

Citation: 2024 LiveLaw (Del) 579

The Delhi High Court has held that the appeal itself may be restored on the Board of the Customs, Excise, and Service Tax Appellate Tribunal (CESTAT), bearing in mind the undisputed position that the condition of pre-deposit has been duly complied with.

Show Cause Notice Not Adjudicated For Nearly 14 Years; Delhi High Court Issues Notice To Dept.

Case Title: M/S Durga Trading Company And Ors Versus The Additional Director General (Adjudication) And Anr.

Citation: 2024 LiveLaw (Del) 583

A division bench of the Delhi High Court, comprising Justice Sanjeev Sachdeva and Justice Ravinder Dudeja, has issued the notice to the department in a petition assailing the jurisdiction to adjudicate the Show Cause Notice, which has not been adjudicated for nearly 14 years.

Unexplained Expenditure Addition Merely Based On CBIC Instruction Not Sustainable: Delhi High Court

Case Title: Bausch And Lomb India Private Limited Versus Assessment Unit, National Faceless Assessment Centre, Delhi

Citation: 2024 LiveLaw (Del) 592

The Delhi High Court has deleted the addition for unexplained expenditure, which was based on the instruction issued by the Central Board of Indirect Taxes and Customs (CBIC).

Monetary Limit Of Rs. 1 Crore For Appeals To High Court; Delhi High Court Dismisses Dept's Appeal

Case Title: The Principal Commissioner Of Customs, ACC Imports New Delhi Versus M/S. Salasar Synthetics

Citation: 2024 LiveLaw (Del) 593

The Delhi High Court has dismissed the challenging redemption fine of Rs. 40 lakhs, citing instructions issued by the Central Board of Indirect Taxes and Customs (CBIC), which set the monetary limit of Rs. 1 crore for appeals to the high court.

Unexplained Expenditure Addition Merely Based On CBIC Instruction Not Sustainable: Delhi High Court

Case Title: Bausch And Lomb India Private Limited Versus Assessment Unit, National Faceless Assessment Centre, Delhi

Citation: 2024 LiveLaw (Del) 599

The Delhi High Court has deleted the addition for unexplained expenditure, which was based on the instruction issued by the Central Board of Indirect Taxes and Customs (CBIC).

Additions U/s 69C Based Merely On CBIC Information Can't Be Sustained: Delhi High Court

Case Title: Bausch And Lomb India Private Limited Vs Assessment Unit

Citation: 2024 LiveLaw (Del) 617

The Delhi High Court sets aside the assessment order and remits the matter to AO on the ground that the additions of Rs.70.10 Cr. made under Section 69C as unexplained expenditure based merely on information received from Central Board of Indirect Taxes & Customs (CBIC) is unsustainable.

Bombay High Court

Service Tax Not Liable To Be Paid On Ocean Freight/Sea Transportation Services: Bombay High Court

Case Title: M/s. Sanathan Textile Pvt Ltd. Versus Union of India

The Bombay High Court has held that service tax is not liable to be paid on ocean freight or sea transportation services.

Lender Bank Registered With CERSAI Has 1st Priority Over DCST Against Proceeds Of Enforcement Under SARFAESI Act: Bombay High Court

Case Title: Purushottam Prabhakar Chavan Versus Deputy Commissioner of Sales Tax (GST)

The Bombay High Court has held that lender bank registration with the Central Registry of Securitisation and Security Interest of India (CERSAI) has first priority over Deputy Commissioner of Sales Tax (GST) (DCST) against proceeds of enforcement under the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 (SARFAESI Act).

Bombay High Court Quashes Reassessment Notices Issued Merely On Basis Of Information Received From Directorate General Of GST

Case Title: KEC International Ltd. Versus UOI

The Bombay High Court has quashed the reassessment notices issued merely on the basis of information received from the Directorate General of GST.

Categorising Body Massager As Adult Sex Toy, Officer's Imagination, Not Covered Under 'Prohibited Goods': Bombay High Court

Case Title: Commissioner of Customs NS-V vs. DOC Brown Industries LLP

The Bombay High Court has held that categorising the body massager as an adult sex toy was purely the officer's imagination.

Secured Creditor Registered With CERSAI Will Have Precedence Over VAT Authorities Against Proceeds Of Enforcement: Bombay HC

Case Title: Indian Overseas Bank verses Deputy Commissioner of State Tax

The Bombay High Court recently clarified that in a sale of a mortgaged asset, where the mortgage in favour of a secured creditor is registered prior in time with CERSAI, and the MVAT Authorities too have a charge, the proceeds of the enforcement of the mortgage would first go towards discharging the dues owed to the secured creditor.

Maharashtra Govt's Action In Levying Stamp Duty On 'DO' Is Within Legislative Competence Of State: Bombay High Court

Case Title: Saurer Textile Solutions Pvt Ltd Versus The State of Maharashtra

The Bombay High Court has held that the action of the Maharashtra Government in levying stamp duty on delivery orders (DO) is within the legislative competence of the state.

Legal Services Provided By Individual Advocate, Partnership Firm Of Advocates Exempted From Service Tax: Bombay High Court

Case Title: Adv. Pooja Patil Versus The Deputy Commissioner

The Bombay High Court has held that the service provided by an individual advocate, a partnership firm of advocates, by way of legal services is exempt from levy of service tax.

Assessee Ought Not To Have Meted Out Discriminatory Treatment Of Denying Clearance: Bombay High Court Allows Provisional Release Of Premium Cold Coffee

Case Title: M/s. SCK International Versus Commissioner of Customs (Nhava Sheva-V)

The Bombay High Court has held that the petitioner ought not to have been meted out such discriminatory treatment as denying clearance. The harsh and unreasonable conditions cannot be imposed, and more so when there is not an iota of material on the part of the department, as placed before the Court, indicating as to why a different yardstick would be required to be applied to the present consignments when earlier seven consignments were released at 16% to 28% bank guarantee.

Deficiency In Filing Appeal Can't Make Appeal Filed Within Prescribed Period Of Limitation To Be Labelled As Time Barred: Bombay High Court

Case Title: Shri Yogesh Rajendra Mehra Versus Principal Commissioner CGST & Central Excise Raigad (appeal)

The Bombay High Court has held that any deficiency in filing the appeal or application, like failure to file physical documents, cannot cause the appeal, which was registered on the online portal within the prescribed period of limitation, to be labelled and/or held to be barred by limitation.

Goa Cess Act Is Not Subsumed By GST Laws: Bombay High Court

Case Title: Sesa Sterlite Limited through Company Secretary Chandrashekhar D. Chitnis & Anr. Versus State of Goa through Chief Secretary

The Bombay High Court at Goa has held that the Goa Cess Act is not subsumed by the GST laws.

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.

Non-Communication Of SCN To Call Book Is Fatal; Bombay High Court Quashes SCNs Against ICICI Home Finance

Citation: 2024 LiveLaw (Bom) 305

Case Title: ICICI Home Finance Company Ltd. Versus UOI

The Bombay High Court, while quashing the show cause notices against ICICI Home Finance Company Ltd., held that non-communication of show cause notices transferred to the call book is fatal.

Slump Sale Doesn't Amount To Sale Of Goods Within MVAT Act: Bombay High Court

Citation: 2024 LiveLaw (Bom) 306

Case Title: Piramal Enterprises Limited Versus The State of Maharashtra

The Bombay High Court has held that slump sale under the Business Transfer Agreement (BTA) would not amount to sale of goods within the purview of the Maharashtra Value Added Tax (MVAT) Act.

Discrepancies Between Dates Of Creation And Signing Assessment Order; Bombay High Court Quashes MVAT Order Passed Beyond 4 Years

Case Title: Karvy Innotech Limited Versus State of Maharashtra

The Bombay High Court, while noting the discrepancies between the dates of creation and signing of the assessment order, quashed the Maharashtra Value Added Tax Act (MVAT) Order, which was passed beyond the limitation period of 4 years.

Madras High Court

ITC Wrongfully Availed But No Fraud/Misstatement Proven; Madras High Court Imposes Token Penalty

Citation: 2024 LiveLaw (Mad) 255

Case Title: M/s.Greenstar Fertilisers Limited Versus The Joint Commissioner (Appeals)

The Madras High Court has imposed a token penalty of Rs. 10,000 on the assessee instead of a higher penalty as the assessee wrongfully availed of the input tax credit (ITC), but the department could not prove fraud or misstatement on the part of the assessee.

Tax Demand on Post Sale Discounts Received By Way Of Financial Credit Notes Not Tenable: Madras High Court

Case Title: Tvl. Shivam Steels Versus Assistant Commissioner (ST)(FAC)

The Madras High Court has quashed the order imposing tax demands on post-sale discounts received by way of financial credit notes on the ground that receiving a discount is not tenable in law.

Electricity Qualifies As Input For Grant Of CENVAT Credit: Madras High Court

Case Title: M/s.India Cements Limited Versus Commissioner of Customs

The Madras High Court has held that electricity qualifies as an input for the grant of CENVAT credit under the CENVAT Credit Rules, 2002 (CCR).

Refund Claim Has To Be Examined Based On Documents Pertaining To Availing Of ITC And Export Of Products On Zero Rated Basis: Madras High Court

Case Title: Flow Link Systems Pvt. Ltd. Versus The Assistant Commissioner (ST)(FAC)

The Madras High Court, while remanding the matter, held that the refund claim has to be examined and determined based on documents pertaining to the availing of ITC.

Discount Linked To Subsidy Alone Can Form Part Of “Transaction Value”: Madras High Court

Case Title: M/s.Supreme Paradise Versus Assistant Commissioner (ST)

Citation: 2024 LiveLaw (Mad) 61

The Madras High Court has held that a discount linked to the subsidy alone can form part of the “transaction value.”

Non-Production Of Original Tax Invoice From Registered Dealer, Reversal Of ITC By Dept. Doesn't Amount To Double Taxation: Madras High Court

Case Title: M/s.Thillai Agencies Versus State of Tamil Nadu

The Madras High Court has held that when a registered dealer claims any benefit under Section 19 of the TNVAT Act 2006, he has to strictly adhere to the conditions laid down in the said section.

Madras High Court Quashes Revision Order Passed Under TNGST Act Against Renault Nissan For Travelling Beyond The Scope Of Revision Proceedings

Case Title: Tvl. Renault Nissan Automotive India Pvt. Ltd. Versus Joint Commissioner (ST) (FAC)

Citation: 2024 LiveLaw (Mad) 72

The Madras High Court has quashed the revision order passed under the Tamil Nadu Goods and Service Tax Act (TNGST Act) against Renault Nissan for travelling beyond the scope of revision proceedings.

Madras High Court Directs AO To Allow Transitional Credit Of Purchase Tax Paid Under GST Act If Already Paid under VAT Act

Case Title: M/s.Sri Sasthaa Constructions Versus The Assistant Commissioner (ST)

Citation: 2024 LiveLaw (Mad) 100

The Madras High Court has directed the Assessing Officer to allow transitional credit of purchase tax paid under Section 140 of the TNGST Act, 2017, if the petitioner had paid “purchase tax” under Section 12(1) of the TNVAT Act.

In Absence Of Notification For Cross-Empowerment, Action Taken By Counterparts Are Without Jurisdiction: Madras High Court

Case Title: Tvl.Vardhan Infrastructure Versus The Special Secretary

Citation: 2024 LiveLaw (Mad) 136

The Madras High Court has held that in the absence of notification for cross-empowerment, action taken by counterparts was without jurisdiction.

Inquiry To Be Continued By Adjudicating Authority As Per Notification In Vogue And Not Under Superseded Notification: Madras High Court

Case Title: Auro Logistics Ltd Versus The Assistant Director (SRO)

Citation: 2024 LiveLaw (Mad) 137

The Madras High Court has held that the inquiry will have to be continued by the adjudicating authority as per the notification in vogue and not by the adjudicating authority under the superseded notification.

Hostel Service Constitutes 'Residential Dwelling Unit' For Girl Students And Working Women, Will Be Exempt From GST: Madras High Court

Citation: 2024 LiveLaw (Mad) 132

Case Title: Thai Mookambikaa Ladies Hostel v. Union of India

The Madras High Court has recently ruled that Hostel services providing welling to girl students and working women will be exempt from the GST regime as they are residential dwelling units for the girl students and working women.

IGST Refund Claim May Be Made Before Expiry Of 2 Years From Date Of Export Of Goods: Madras High Court

Case Title: M/s.Tulip Nilgiris Exports Pvt. Ltd. Versus Additional Commissioner of Central Taxes and Central Excise (Appeals)

Citation: 2024 LiveLaw

The Madras High Court has held that an IGST refund claim may be made before the expiry of two years from the relevant date. The relevant date is required to be computed from the date of export of the goods concerned by any mode.

Assessee Failed To Cure Defects As Documents Were In The Custody Of Central GST Authority: Madras High Court Quashes Assessment Order

Case Title: Sri Guberan Steels Versus The Assistant Commissioner (ST)

Citation: 2024 LiveLaw (Mad) 43

The Madras High Court has quashed the assessment order and held that the defect was not cured due to the availability of records in the custody of the central GST authority.

Areca Nuts Have Limited Shelf-Life, Risk Of Contamination: Madras High Court Directs Verification Of Certificate Of Origin

Case Title: M/s.Radha Industries Versus Commissioner of Customs

The Madras High Court has directed the verification of certificate of origin within 30 days and in case of failure of verification within time release the seized areca nut is subject to providing a bond for 100% of the value of goods but without insisting on a bank guarantee.

No Embargo On Commercial Tax Dept. From Summoning To Furnish Records Even If Assessment Is Completed: Madras High Court

Case Title: M/s.V.R.Muthu & Bros. Versus State Tax Officer

Citation: 2024 LiveLaw (Mad) 225

The Madras High Court has held that merely because the assessment is deemed to have been completed in both cases, it does not mean that the officers are precluded from exercising the power under Section 25 or Section 27 of the TNVAT Act, 2006.

Rajasthan High court

High Courts Can't Entertain Appeals On Determination Of Excise Duty Rate Or Value Of Goods For Assessment: Rajasthan High court

Case Title: Commissioner of Central Goods And Service Tax Versus Jain Poles Industries

The Rajasthan High Court, Jaipur Bench, has held that an appeal would lie to the High Court if the High Court is satisfied that the case involves a substantial question of law; however, an appeal would not lie if the same pertains to the determination of any question having relation to the rate of duty of excise or to the value of goods for purposes of assessment.

Rajasthan High Court Dismisses Petition Challenging GST Demand On Exhibition Services

Case Title: M/s. Savio Jewellery Versus Commissioner, Central Goods And Service Tax

The Jaipur Bench of the Rajasthan High Court has dismissed the petition challenging the GST demand on exhibition services.

Crane Services To Transport Department Does Not Constitute Sale: Rajasthan High Court

Case Title: Assistant Commercial Taxes Officer Versus M/s Agarwal Carriers And Lifters

The Rajasthan High Court, Jaipur Bench has held that crane services to the transport department does not constitute sale.

Issuance Of Summons Is Not Initiation Of Proceedings Referable To Under Section 6(2)(B) Of CGST Act: Rajasthan High Court

Case Title: Rais Khan Versus Add. Commissioner

The Rajasthan High Court, Jaipur Bench, has held that issuance of summons is not initiation of proceedings referable to under Section 6(2)(b) of the CGST Act.

Himachal Pradesh High Court

Credit Availed On Outward Transportation Services Eligible When Freight Charges Are Included In Taxable Value: Himachal Pradesh High Court

Case Title: M/s INOX Air Products Pvt. Ltd. Versus The Assistant Commissioner Central Excise & Service Tax Division

The Himachal Pradesh High Court has held that credit availed on outward transportation services is eligible when the freight charges are included in the taxable value.

Excise, Revenue And Other Departments Will Not Have Priority Over Secured Creditors: Himachal Pradesh High Court

Case Title: State Bank of India Versus State of H. P. & Ors.

The Himachal Pradesh High Court has held that departments of the state, including excise and revenue, will not have priority over the secured creditor s' debt.

Patna High Court

Patna High Court Imposes Fine Of Rs. 5,000 On GST Officer For 'Forcible And Illegal Recovery' Amid Non-Functional GST Tribunal

Case Title: National Insurance Co. Lt vs The State of Bihar and Ors

LL Citation: 2024 LiveLaw (Pat) 14

In a recent ruling, the Patna High Court slapped a fine of Rs 5,000 on a Goods and Services Tax ( GST ) officer for forcible and illegal recovery of the full tax amount from a man waiting to avail the statutory remedy of appeal before GST tribunal which has not been made functional in Bihar.

Pre-deposit For CGST/SGST Act Appeal Allowed Exclusively From Electronic Cash Ledger, Not Electronic Credit Ledger: Patna High Court

Case Title: M/s Flipkart Internet Pvt vs The State of Bihar and Ors

The Patna High Court has recently ruled that pre-deposit for maintaining an appeal under Section 107(6)(b) of the CGST/SGST Act is permissible solely by utilizing amounts from the Electronic Cash Ledger and not the Electronic Credit Ledger.

Kerala High Court

Kerala VAT Act Empowers Taxing Authorities To Recover Tax Dues From Directors Of Private Company: Kerala High Court

Case Title: Firos C.A. Versus State Of Kerala

Citation: 2024 LiveLaw (Ker) 152

The Kerala High Court has held that Section 39 of the Kerala Value Added Tax Act, 2003, empowers the taxing authorities to recover the tax dues from the directors of the private company if the company fails to make payment of the tax.

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

Case Citation: 2024 LiveLaw Ker 269

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.

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