Indirect Tax Cases Monthly Round Up: June 2024

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.

Karnataka High Court

SCN Can't Be Issued Prior To Finalisation Of Audit Proceedings; Karnataka High Court Stays Order

Citation: 2024 LiveLaw (Kar) 277

Case Title: M.S. Service Station Versus UOI

The Karnataka High Court has stayed the order passed under Section 74 of the CGST Act, 2017 on the grounds that the show cause notice cannot be issued prior to the finalization of audit proceedings.

Gauhati High Court

No Provision Mandating Assessee To Install All Capital Goods In Year Of Procurement Itself To Avail Cenvat Credit: Gauhati High Court

Citation: 2024 LiveLaw (Gau) 40

Case Title: Premier Cryogenics Limited Versus The Commissioner Central Excise And Service Tax

The Gauhati High Court has held that it is not mandatory for the assessee to install all capital goods in the year of procurement itself so as to avail CENVAT credit.

Kerala High Court

Claim For Sales Tax Exemption In Respect Of Transit Sales To Be Justified By Showing Sale As Having Occurred In Transit: Kerala High Court

Citation: 2024 LiveLaw (Ker) 336

Case Title: M/S.I.T.I.LTD Versus State Of Kerala

The Kerala High Court has held that a claim for exemption in respect of transit sales must be justified by showing the sale as having occurred in transit.

Time Limit To Avail ITC Is Till 30th November In Each Financial Year From Beginning Of GST Regime: Kerala High Court

Citation: 2024 LiveLaw (Ker) 341

Case Title: M/S M.Trade Links Versus Union Of India

The Kerala High Court has held that the time limit to avail ITC is November 30th in each financial year from the beginning of the GST regime.

Kerala High Court Allows Dealer To Correct Copy Of Stock Inventory Uploaded Along With Returns

Citation: 2024 LiveLaw (Ker) 368

Case Title: Usha Bagri Versus The Assistant Commissioner

The Kerala High Court has allowed the dealer to correct a copy of stock inventory uploaded along with returns.

Statutory Scheme Determining Taxable Turnover Of Works Contract Under KVAT Act Doesn't Suffer From Any Defect: Kerala High Court

Citation: 2024 LiveLaw (Ker) 374

Case Title: M/S. DLF Home Developers Limited Versus State Of Kerala

The Kerala High Court has held that the statutory scheme for determining the taxable turnover of a works contract under the Kerala Value Added Tax Act (KVAT Act) does not suffer from any defect so as to render it unworkable to effectuate the charge to tax on a works contract.

Calcutta High Court

Ignoring GSTR-9 Causes Prejudice To Taxpayer's Rights When Errors Committed Are Revenue Neutral: Calcutta High Court

Case Title: Ankit Kumar Agarwal Versus The Assistant Commissioner of State Tax, Taltala Charge & Ors.

The Calcutta High Court has held that ignoring GSTR-9 causes prejudice to taxpayers's rights when errors committed are revenue neutral.

Raising Issue Of Non-Service Of Bills At Appellate Stage Not Permissible; Calcutta High Court Upholds 50% Interest Waiver On Property Tax

Citation: 2024 LiveLaw (Cal) 149

Case Title: Saila Ghosh Versus State of West Bengal

The Calcutta High Court, while dismissing the appeal of the assessee, upheld the 50% waiver of the interest on property tax.

Andhra Pradesh High Court

Can't Examine Officials Of Tax Dept. On Enquiry Report Based On F-Forms Submitted By Dealer: Andhra Pradesh High Court

Case Title: M/s. Foods, Fats and Fertilizers Limited Versus The State of Andhra Pradesh

The Andhra Pradesh High Court has held that the assessee or petitioner does not have a right to cross-examine the officials of the Tax Department of Bombay on the F-Forms submitted by the dealer.

Belated Deposit Of TDS, Andhra Pradesh High Court Quashes Prosecution Against Assessee

Citation: 2024 LiveLaw (AP)47

Case Title: M/s Aditya Institute Of Technology And Management Versus The State Of Andhra Pradesh

The Andhra Pradesh High Court has quashed the prosecution proceedings launched against the assessee for belatedly depositing tax deducted at source (TDS).

Assessment Order Passed Against Dead Person Is Nullity: Karnataka High Court

Case Title: Smt. Sowmya S. Versus ITO

The Karnataka High Court, while quashing the assessment order, held that the assessment order under Section 147 read with Section 144 of the Income Tax Act amounts to nullity.

Allahabad High Court

[Central Excise Act] Fixing Consecutive Dates of Hearing on Very Short Notice Violative of Opportunity of Hearing U/S 33A: Allahabad High Court

Case Title: M/s Avshesh Kumar v. Union of India and 2 Ors.

The Allahabad High Court has held that fixing consecutive dates of hearing within the period of a week would be violative of the opportunity of hearing as envisaged under Section 33A of the Central Excise Act, 1994.

AAR

5% GST Payable On Mix Mukhwas And Roasted Til & Ajwain: AAR

Applicant's Name: M/s Bhagat Dhanadal Corporation

The Gujarat Authority of Advance Ruling (AAR) has ruled that 5% GST is payable on Mix Mukhwas, Roasted Til, and Ajwain.

18% GST Applicable On ZlD Treated Water: AAR

Applicant's Name: M/s Gujarat Eco Textile Park Limited

The Gujarat Authority of Advance Ruling (AAR) has ruled that 18% GST is applicable on Zero Liquid Discharge (ZLD) treated water.

Infant Food Products Containing Milk And Other Ingredients Subject To 18% GST: AAR

Applicant's Name: Bebymil International Pvt. Ltd.

The Rajasthan Authority of Advance Ruling (AAR) has ruled that infant food products containing milk and other ingredients are subjected to 18% GST.