Indirect Tax Weekly Round-Up: 21 To 27 July 2024

Update: 2024-07-28 06:00 GMT
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Supreme CourtCustoms Act | Owner Of Goods Liable To Pay Customs Duty Even After Confiscated Goods Are Redeemed Paying Fine : Supreme CourtCase Title: M/S Navayuga Engineering Co. Ltd. Versus Union Of India & Anr.Citation : 2024 LiveLaw (SC) 504In a notable ruling relating to the Customs Act of 1962, the Supreme Court on Tuesday (July 23) held that the importer would be liable to pay...

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Supreme Court

Customs Act | Owner Of Goods Liable To Pay Customs Duty Even After Confiscated Goods Are Redeemed Paying Fine : Supreme Court

Case Title: M/S Navayuga Engineering Co. Ltd. Versus Union Of India & Anr.

Citation : 2024 LiveLaw (SC) 504

In a notable ruling relating to the Customs Act of 1962, the Supreme Court on Tuesday (July 23) held that the importer would be liable to pay customs duty in addition to fines and other charges upon redeeming the confiscated goods.

Delhi High Court

Revoking Suspension Of Customs Broker Licence Can't Restrict Dept. From Inquiring For Imposition Of Penalty: Delhi High Court

Case Title: Vijendra Singh Versus Commissioner Of Customs

The Delhi High Court has held that the revoking suspension of license cannot restrict the customs department from inquiring for imposition of penalty.

Failure To Carry Out Physical Verification Of Veracity Of Exporter Alone Is No Basis To Suspend License Of Custom Broker: Delhi HC

Case Title: Aradhya Export Import Consultants Pvt Ltd Verses Commissioner Of Customs

The Delhi High Court held that a custom broker cannot be held guilty of having failed to discharge the obligation placed in terms of Regulation 10(n) of CBLR 2018, simply because he has not carried out physical verification of the veracity of the exporter.

Madras High Court

Interest Can't Be Demanded When Entire Stamp Duty Paid During Pendency Of Appeal: Madras High Court

Case Title: The Chief Revenue Controlling Authority Chennai Versus R.Muniyandi

Citation: 2024 LiveLaw (Mad) 288

The Madras High Court has held that interest cannot be demanded when the entire amount as demanded by the authorities has been paid even during the pendency of the appeal.

Gujarat High Court

Gujarat High Court Upholds SAD Refund For Betel Nuts, Rules No Distinction Between Industrial And Edible Varieties

Case Title: Commissioner Of Customs Versus Baburam Harichand

LL Citation: 2024 LiveLaw (Guj) 95

The Gujarat High Court has upheld the decision of the Customs, Excise & Service Tax Appellate Tribunal (CESTAT) allowing the refund of Special Additional Duty (SAD) on betel nuts. The court observed that there is no distinction between industrial grade betel nuts and edible supari.

Gauhati High Court

Interest Can't Be Levied When No Taxable Due Is Found: Gauhati High Court

Case Title: IOCL Versus The State Of Assam

The Gauhati High Court has held that once the assessment order of the authorities is set aside and the matter is remanded back and assessed, no taxable interest can be levied.

Kerala High Court

Denial Of Credit For Non-Registration Thiruvabhranam Commissioner Of Under KVAT Act Is Unjust: Kerala High Court

Case Title: Mythree Associates Versus Commercial Tax Officer

The Kerala High Court has held that the petitioner/assessee has paid tax at the prescribed rate on the materials procured by him from the Travancore Devaswom Board, and since this amount has already been paid over to the State Exchequer, any denial of credit to the assessee solely on the ground that the Travancore Devaswom Board/Truvabharanam Commissioner was not registered under the KVAT Act would be unjust.

Kerala High Court Dismisses Indian Medical Association's Petition Challenging GST Levy On Supply Of Goods And Services To Its Members

Case Title: Indian Medical Association Versus UOI

Citation: 2024 LiveLaw (Ker) 469

The Kerala High Court has dismissed the writ petition filed by the Indian Medical Association challenging the levy of GST on supply of goods and services to its members.

Goods Transported For Own Use, No Intention To Evade Tax, Kerala High Court Deletes Penalty

Case Title: State Of Kerala Versus Petrolink Data Services (P) Ltd.

The Kerala High Court has held that the assessee, immediately after the goods were detained, produced the statutory declarations in Form 16 to demonstrate that the goods that were being transported were for the own use of the assessee.

Kerala High Court Allows Adjustment Refund Amount Towards Amount payable under Amnesty Scheme

Case Title: S. Vijayan Versus Commissioner Of State Goods And Service Taxes

The Kerala High Court has held that it is open to the department to consider an adjustment of the refund amount due to the appellant towards the amounts due from him by way of settlement under the Amnesty Scheme.

Rajasthan High Court

Advance Ruling Application Not Restricted Only To Supplier: Rajasthan High Court Quashes AAR's Order Rejecting Application

Case Title: M/s Power Grid Corporation Of India Ltd. Versus State of Rajasthan

Citation: 2024 LiveLaw (Raj) 172

The Rajasthan High Court, Jaipur Bench, has quashed the AAR's order rejecting the application for the advance ruling as not maintainable on the grounds that the applicant was not the supplier.

DGFT Notification Prohibiting Export Of Non-Basmati White Rice Can't Have Retrospective Effect: Andhra Pradesh High Court

Case Title: Sree Murali Mohana Boiled & Raw Rice Mill Pvt. Ltd. Versus UOI

The Andhra Pradesh High Court has held that the trade notification issued by the Directorate General of Foreign Trade (DGFT) prohibiting export of non-basmati white rice cannot have retrospective effect.

Allahabad High Court

In Absence Of Appellant Or His Lawyer , Appeal Should Be Dismissed In Default Not An Order On Merit : Allahabad High Court

Case Title: M/S Rajdhani Arms Corporation, Lucknow Thru. Propreitor, Seema Sarna v. Commissioner Of Commercial Tax U.P., Commercial Tax Bhawan,Lucknow

The Allahabad High Court has held that the term “ex-parte” in Rule 63(4) of the Uttar Pradesh Value Added Tax Rules, 2008 can be interpreted as for want of representation of the defendant after service of notice, the case may be decided on merits. However, when the appellant or his counsel is not present, the case may only be dismissed in default.

Calcutta High Court

Extended Limitation Can't Be Invoked If No 'Omission' & Suppression Of Material Facts' To Evade Tax : Calcutta HC

Case Title: Commissioner Of Service Tax verses G.S. Atwal & Co. Engineering Pvt Ltd.

Citation : 2024 LiveLaw (Cal) 176

The Calcutta High Court held that no service tax will be levied on activities such as cutting or mineral extraction which are part of mining operations, if mining operations are itself not subjected to service tax on the date of levy.

Telangana High Court

Non-Filing Of GST Return Due To Technical Glitch, Bank Can't Be Penalised: Telangana High Court

Case Title: M/s. Standard Chartered Bank Vs. The Principal Commissioner of Central Tax & others.

The Telangana High Court has held that the petitioner bank could not file its return in the GST portal because of a technical glitch and cannot be saddled with demand, penalty, and interest.

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