Indirect Tax Cases Monthly Round Up: March 2024
Mariya Paliwala
3 April 2024 9:30 AM IST
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...
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.
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
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.
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
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.
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.
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.
Madras High Court
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)
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.
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.
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.
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.
Allahabad High Court
Allahabad High Court Grants Bail To Applicant Accused Of Availing Excess Input Tax Credit, As Proceedings U/S 70 And 74 Pending Since Long
Case Title: Qamar Ahmed Kazmi vs. State of U.P.
Citation: 2024 LiveLaw (AB) 131
The Allahabad High Court has granted bail to the applicant accused of availing excess input tax credit as the proceedings under Section 70 and Section 74 of the Goods and Service Tax Act, 2017 were pending since long.
S.5 Limitation Act Applies To Rectification Of Orders U/S 31 Of UP VAT Act: Allahabad High Court
Case Title: M/S Sanyo Koreatex Pvt. Ltd. vs. Deputy Commissioner Trade Tax And Another
Case citation: 2024 LiveLaw (AB) 132
The Allahabad High Court has held that Section 5 of the Limitation Act will apply to rectification of orders passed by officer, authority, Tribunal or the High Court under Section 31 of the Uttar Pradesh Value Added Tax Act, 2008.
GST | Truck Moving Slowly Due To Fault In Engine, Not Extending E-Way Bill Technical Breach: Allahabad HC Quashes Penalty U/S 129
Case Title: M/S Riadi Steels Llp vs. State Of U.P. And 4 Others
Case citation: 2024 LiveLaw (AB) 133
The Allahabad High Court has held that when the GPS tracking system showed slow movement of the truck due to mechanical issues in the engine, penalty under Section 129 of the Goods and Service Tax Act, 2017 could not have been imposed for not extending time-period in e-way bill. The Court held that not extending time period in such case was a technical breach.
No Difficulties In Generating E-Way Bill After April 2018: Allahabad High Court Upholds Penalty U/S 129 GST For Late Production Of E-Way Bill
Case Title: M/S Jhansi Enterprises Nandanpura Jhansi vs. State Of U.P. And Others
Case citation: 2024 LiveLaw (AB) 134
The Allahabad High Court has held that when the Goods and Services Tax Regime was launched in 2017, there were difficulties in downloading e-way bills. However, the difficulties were resolved and from April 2018 there were no difficulties in generating the same.
Writ Jurisdiction Discretionary, To Be Exercised For Petitioners Acting In Good Faith, With Clean Hands: Allahabad High Court
Case Title: M/S Genius Ortho Industries vs. Union Of India And Others
Case citation: 2024 LiveLaw (AB) 135
While dealing with a petition against cancellation of GST registration, the Allahabad High Court held that writ jurisdiction under Article 226 of the Constitution of India can only be exercised for a petitioner who has approached the Court in good faith and with clean hands. The Court held that once there is concealment of facts, writ petition is liable to be dismissed without any relief to the petitioner.
GST | Vehicle Number In 'Bilty' Couldn't Be Changed As Goods Were In Transit, E-Way Bill Was Updated: Allahabad HC Quashes Penalty Order
Case Title: M/S Abhishek Sales vs. Sate Of U.P.
Case Citation: 2024 LiveLaw (AB) 155
The Allahabad High Court has held that for goods in transit, vehicle number in bilty (consignment note) cannot be changed upon change of vehicle due to breakdown. The Court quashed the penalty order on grounds that vehicle number was updated in Part-B of the e-way bill.
Customs Act | “Reason To Believe” For Confiscation Of Goods Must Be Based On Credible Material: Allahabad High Court
Case Title: M/S Maa Kamakhya Trader v. Commissioner Of Customs (Preventive)
The Allahabad High Court has held that for natural products that are also grown inside India, presumption cannot arise that they have been smuggled. The Court held for assuming jurisdiction in such cases, the custom authorities must show that credible material exists to give rise to “reason to believe” to empower them to confiscate the goods under the Customs Act, 1962.
CGST | 'Capital Goods' Are For Long-Term Use, 'Inputs' For Day-To-Day Operations, Not Capitalized In Books Of Accounts: Allahabad HC Clarifies
Case Title: M/S Samsung India Electronics Private Limited vs. State Of U.P. And Others 2024 LiveLaw (AB) 170 [Writ Tax No. 777 of 2022]
Case Citation: 2024 LiveLaw (AB) 170
The Allahabad High Court has clarified that 'capital goods' as defined under Section 2 of the Central Goods and Service Tax Act, 2017 are for long term use whereas 'inputs' are meant for day-to-day business operations and are not capitalized in the books of accounts.
Case Title: M/S Shree Sai Palace vs. State Of U.P. And Others 2024 LiveLaw (AB) 171
Case Citation: 2024 LiveLaw (AB) 171
The Allahabad High Court has held that the use of word 'or' in Section 75(4) of Uttar Pradesh Goods and Service Tax Act, 2017 is disjunctive in nature which means that there are two situations provided in which opportunity of personal hearing must be afforded to an assesee and both situations must be considered independently while applying Section 75(4).
CGST | Travelling Beyond SCN Erodes Trust In Integrity & Impartiality Of Adjudicatory Process: Allahabad High Court
Case Title: M/S Samsung India Electronics Private Limited V. State Of U.P. And Others
Case citation: 2024 LiveLaw (AB) 170
The Allahabad High Court has held that Department travelling beyond the scope of the show cause notice undermines the right to fair hearing of an assesee and also erodes the trust in integrity and impartiality of the adjudicatory process.
Consistency Sacrosanct In Taxation Matters, Department Can't Take Different Stand In Identical Situations: Allahabad HC Grants Relief To Samsung
Case Title: M/S Samsung India Electronics Private Limited vs. State Of U.P. And Others
Case Citation: 2024 LiveLaw (AB) 170
The Allahabad High court has held that the Department must take consistent stands in identical fact situations for different tax periods as consistency is paramount in tax regime.
Jharkhand High Court
Issuance Of Pre-SCN Consultation Is Mandatory Requirement For Issuing SCN Under Customs Act, 1962: Jharkhand High Court
Case Title: M/s. Bihar Foundry & Castings Ltd. Versus Union of India
The Jharkhand High Court has held that the issuance of pre-SCN consultation is mandated under proviso to Section 28(1)(a) of the Customs Act, 1962, before issuing the show cause notice.
Punjab and Haryana High Court
Suspension Of GST Registration Deemed To Be Revoked If Show Cause Notice Not Decided Within 30 Days Of Reply: Punjab & Haryana High Court
Case Title: M/S Shri Balaji Agro Industries V/S State Of Punjab And Another
The Punjab and Haryana High Court has held that suspension of GST registration is deemed to be revoked if a show cause notice is not decided within 30 days of reply.
Calcutta High Court
Supplementary SCN Although Termed As Supplementary, Is Actually Independent SCN Even Though It Relates To Smuggling: Calcutta High Court
Case Title: Commissioner Of Customs (Port), Kolkata Versus M/S. Sandeep Kumar Dikshit
The Calcutta High Court has held that the supplementary show cause notice, although termed the supplementary, is actually an independent show cause notice even though it relates to the case of smuggling.
Adani Wilmar Eligible For Sanction Of Incentives Under West Bengal State Support For Industries Scheme, 2008 Post GST: Calcutta High Court
Case Title: Adani Wilmar Limited and another Vs. The State of West Bengal and others
The Calcutta High Court has held that Adani Wilmar is eligible for sanction of incentives under the West Bengal State Support for Industries Scheme, 2008, post GST.
Gujarat High Court Grants Bail In Case Of Alleged Issuance Of Invoices Without Supply Of Goods Under CGST Act
Case Title: JATINBHAI PRAFULBHAI KAKKAD Versus STATE OF GUJARAT & ANR.
LL Citation: 2024 Livelaw (Guj) 29
The Gujarat High Court has granted bail for an individual implicated in a case related to an FIR filed under Sections 132(1)(b) and (1) of the Central Goods & Services Tax Act, 2017. The case revolves around the purported issuance of GST invoices without actual delivery of goods, allegedly resulting in a significant financial loss to the government treasury.
Gujarat High Court Grants Bail To Co-Accused In Rs. 700 Crore GST Scam Case Involving Tax Amount Of 35 Crores
Case Title: State Of Gujarat Versus Mitesh Dilipbhai Sejpal
LL Citation: 2024 Livelaw (Guj) 31
The Gujarat High Court has dismissed a petition filed by the State against the order granting regular bail to an accused in a multi-crore scam case.
Gujarat High Court Grants Bail in Rs. 1466 Crore Alleged GST Scam Case
Case Title: HITESH PRABHUDAS LODHIYA Versus STATE OF GUJARAT
LL Citation: 2024 Livelaw (Guj) 30
The Gujarat High Court has granted bail to a man in a case involving an alleged GST scam amounting to Rs. 1466 crores.
AAAR
No GST Payable By Fair Price Shop Selling Kerosene Oil To Ration-Card Holders: AAAR
Appellant's Name: Chanchal Saha
The West Bengal Appellate Authority of Advance Ruling (AAAR) has held that no GST is payable by fair-priced shops selling kerosene oil to ration-card holders.
AAR
E-Commerce Operators Liable To Collect TCS For Providing Platform For Selling Digital Gold: AAR
Applicant's Name: M/S. Changejar Technologies Pvt. Ltd.
The Karnataka Authority of Advance Ruling (AAR) has ruled that e-commerce operators are liable to collect TCS for providing a platform for selling digital gold.
