Case Title: Commissioner of Central Excise vs M/s Denis Chem Lab Ltd. & Anr.

Citation : 2023 LiveLaw (SC) 650

The Supreme Court has ruled that in order to determine whether a product would fall under the description of “Intravenous Fluids” so as to be eligible for exemption from excise duty, it is the composition of the product in question which is relevant and not whether the product is used for treatment of any particular disease.

Delhi High Court

Case Title: M/S. Hanuman Enterprises Pvt. Ltd. Versus The Additional Director General Directorate General Of GST

Citation: 2023 LiveLaw (Del) 756

Case Title: Blackberry India Pvt Ltd. Versus The Assistant Commissioner, Central Excise And CGST Division

The Delhi High Court has directed the adjudicating authority to process Blackberry’s claim of interest under Section 11BB of the Excise Act.

Bombay High Court

Case Title: JEM Exporter Versus Union of India

The Bombay High Court has held that if the appeal is defective for non-production of a certified copy, failure to deposit, or incorrect signatures, no order on merits can be passed. The appellate authority erred in law in passing an order on the merits.

Bombay High Court

Shifting Of Commissionerates, Re-Organisation Of Office, Not A Valid Justification For Inordinate Delay In SCN Adjudication: Bombay High Court

Case Title: Coventry Estates Pvt. Ltd. Versus The Joint Commissioner CGST and Central Excise

The Bombay High Court has held that the belated hearing of the show cause notice would amount to a violation of the principles of natural justice.

Royalty Payment For Use Of Technology Is Inextricably Linked With Manufacturing Activity: Bombay High Court

Case Title: Cummins India Limited Versus ACIT

The Bombay High Court has held that the transaction of payment of royalty for the use of technology is inextricably linked with manufacturing activity and should be aggregated with other international transactions in the manufacturing segment for the purposes of benchmarking it.

Karnataka High Court

Case Title: FIS Payment Solutions And Services India Private Limited Vesrsus The State Of Karnataka

The Karnataka High Court has quashed the re-assessment and held that ATM management services to banks are pure services and will not attract Value Added Tax (VAT).

Calcutta High Court

Buyer Not Liable For Seller's Default: Calcutta High Court Set Aside ITC Reversal Demand Against Buyer

Case Title: Suncraft Energy Private Limited And Another Versus Assistant Commissioner

The Calcutta High Court has held that before directing the recipient of service or buyer to reverse the input tax credit and remit it to the government, the department ought to have taken action against the selling dealer.

Assessee Ought To Have Waited For Relevant Form To Go Live On GST Portal Instead Of Making Illegal Adjustment: Allahabad High Court

Case Title: M/S Tikona Infinet Private Limited vs. State of U.P. and Another Case Citation: 2023 LiveLaw (AB) 242

The Allahabad High Court has held that the assessee ought to have waited for the relevant form to go live on the GST portal instead of making an illegal adjustment.

Kerala High Court

Classification Of Dr.Reddy’s Senquel-AD As A Mouthwash Or A Medicament: Kerala High Court Remands The Matter Back

Case Title: Dr. Reddys Laboratories Ltd. Versus The Commissioner Of Commercial Taxes

Citation: 2023 LiveLaw (Ker) 407

The Kerala High Court has remitted the issue of the classification of Dr.Reddy’s Senquel-AD as a mouthwash or a medicament for fresh consideration.

DGFT Circular Providing 4% of SAD Refund Published On The Official Website Amounts To Public Notice: Kerala High Court

Case Title: M/S. Elite Green Pvt Ltd Versus Under Secretary

Citation: 2023 LiveLaw (Ker) 369

The Kerala High Court has held that a circular issued by the Directorate General Of Foreign Trade (DGFT) providing 4% of the Special Additional Duty (SAD) refund published on the official website amounts to public notice.

Allahabad High Court

E-Way Bill Expired Due To Vehicle Break Down: Allahabad High Court Quashes Seizure Memo

Case Title: M/S Rateria Laminators Pvt. Ltd. vs. Additional Commissioner

The Allahabad High Court has set aside an order under Section 129(3) of the UPGST Act 2017 by which a penalty was imposed solely on the ground that no evidence had been adduced regarding the illness of the driver and the breakdown of the vehicle.

CGST Rules | Remedy Under Rule 159(5) Against Provisional Attachment Must Be Availed Before Approaching Court: Allahabad High Court

Case Title: Lalita vs. Central Goods And Service Tax And Another

Case Citation: 2023 LiveLaw (AB) 243

The Allahabad High Court has held that Rule 159(5) of the Central Goods and Service Tax Rules, 2017 which provides remedy to file objections against the attachment of property must be availed before approaching the Court.

Gujarat High Court

Gujarat High Court Orders Refund Of IGST With Interest In An Inadvertent Tax Payment Case

Case Title: Tagros Chemicals India Pvt. Ltd. Versus Union Of India

Case Citation: Case Citation: 2023 Livelaw (Guj) 128

The Gujarat High Court has directed the refund of the Integrated Goods and Service Tax (IGST) amount, along with applicable interest, to a petitioner who inadvertently paid IGST at a higher rate than the concessional rate applicable.

Case Title: Hitesh Nagwani Versus Commissioner Of Customs

The Madhya Pradesh High Court has imposed a cost of Rs. 25000 on the writ petitioner seeking provisional release of goods for suppressing the fact of CESTAT’s final order of confiscation, which was well within his knowledge.

Patna High Court

Case Title: PCM Cement Concrete Pvt. Ltd vs. The Union of India and Others

Case Citation: 2023 LiveLaw (Pat) 90

In a significant ruling, the Patna High Court has directed the Indian Railways to refund an amount of Rs. 38,22,897 to PCM Cement Concrete Pvt. Ltd., following an illegal VAT deduction made from the bills of the contractor.

Punjab And Haryana High Court

Reusing E-way Bills Demonstrates Intention Of Tax Evasion: Punjab And Haryana High Court Upholds Penalty Against Transporter

Case Title: M/s Bright Road Logistics Versus State of Haryana and Others

The Punjab and Haryana High Court has upheld the penalty against the transporter and ruled that reusing e-way bills demonstrates the intention of tax evasion.

Himachal Pradesh High Court

‘Milk Cream’ Can’t Be Classified As ‘Milk’: Himachal Pradesh High Court Upholds Tax Demand

Case Title: M/s Gujarat Co-Operative Milk Marketing Federation Ltd. Versus Additional Excise & Taxation Commissioner and Another

Citation: 2023 LiveLaw (HP) 61

The Himachal Pradesh High Court has held that ‘milk cream’ cannot be classified as ‘milk’.

CESTAT

CESTAT Allows CENVAT Credit To Hero Motocorp On Helmet Locks Supplied Along With Motorcycles

Case Title: M/s Hero Motocorp Ltd. Versus The Commissioner of Central Excise, Delhi-III

The Chandigarh Bench of Customs, Excise and Service Tax Appellate Tribunal (CESTAT) has allowed the CENVAT Credit to Hero Motocorp on helmet locks supplied along with motorcycles.

Weighment Of Goods By FCI Is Not Covered Under “Business Auxiliary Service”: CESTAT

Case Title: The Food Corporation of India Versus The Commissioner of Central Excise and Service Tax, Panchkula

The Chandigarh Bench of the Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has held that undertaking the weighment of goods by the Food Corporation Of India (FCI) is not covered under "business auxiliary service".

Bill Discounting Facility Could Be Offered Not Only By Banking Company But Also By A Body Corporate: CESTAT

Case Title: M/s. Surin Automotive Private Limited Versus Commissioner of Central Excise and Service Tax

The Chennai Bench of the Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has observed that bill discounting facilities could be offered not only by a banking company or a financial institution but also by a body corporate.

CESTAT Upholds Service Tax Demand Against The Service Provider Based On ONGC’s Reply

Case Title: Sri Mridul Phukan Versus Commissioner of Central Excise & Service Tax

The Kolkata Bench Of Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has upheld the service tax demand against the service tax provider based on ONGC’s reply.

Service Tax Not Chargeable On Tour Services For Carrying Out Hajj Pilgrimage In Saudi Arabia By Indian Pilgrims: CESTAT

Case Title: M/s. Amber Travel Services Versus Commissioner, Central GST & Central Excise, Jaipur

The Delhi Bench of the Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has held that service tax is not chargeable on tour services for carrying out the Hajj pilgrimage in Saudi Arabia by Indian Pilgrims.

Services For Drain Hole Drilling In The Existing Oil Wells Qualify As “Mining Services”: CESTAT

Case Title: M/s Oil and Natural Gas Corporation Versus Commissioner of Central Excise & Service Tax, Dibrugarh

The Kolkata Bench of the Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has held that services for drain hole drilling in existing oil wells qualify as "mining services".

Flue Gas Generated During Manufacturing Metallurgical Coke Is Not A Manufactured Product, Tata Steel Not Liable To Pay Excise Duty: CESTAT

Case Title: M/s. Tata Steel Limited Versus Commissioner of Central Excise, Haldia

The Kolkata Bench of Customs, Excise and Service Tax Appellate Tribunal (CESTAT) has held that the flue gas generated during the course of manufacturing metallurgical coke is not a manufactured product and is also not marketable.

No Service Tax Payable On Penal Interest & Cheque Bouncing Charges Received By Bajaj Finance: CESTAT

The Mumbai Bench of the Customs, Excise, and Service Tax Appellate Tribunal (CESTAT)has held that penal interest and cheque bouncing charges received by Bajaj Finance as "consideration" for "tolerating an act" are not leviable to service tax under Section 66E(e) of the Finance Act, 1994.

No Service Tax Applicable On Providing Repair, Management And Maintenance Of Roads Services To NHAI: CESTAT

Case Title: B. Ramanaiah Constructions Versus Commissioner of Central Excise

The Hyderabad Bench of the Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has held that no service tax is applicable to the repair, management, and maintenance of road services for the National Highway Authority of India (NHAI).

Cenvat Credit Allowable To Nayara Energy On Inputs Used For Railway Lines: CESTAT

Case Title: Nayara Energy Limited Versus Commissioner of Central Excise & ST, Ahmedabad-i

The Ahmedabad Bench of the Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has held that cenvat credit is allowable on inputs used for railway lines.

Applicant’s Name: M/S. Palal Realty

The Kerala Authority Of Advance Ruling (AAR) has held that affordable residential apartments attract 1.5% GST. On the other hand, for residential apartments other than affordable ones, the rate of GST is 7.5%.

ITC Can’t Be Availed On Test Drive Vehicle When Retained In Workshop As Replacement Vehicle: AAR

Applicant’s Name: Sai Service Pvt. Limited

The Telangana Authority of Advance Ruling (AAR) has held that Input Tax Credit (ITC) cannot be availed on test-drive vehicles when retained in a workshop as a replacement vehicle.

Case Title: SHREE NILKANTH DEVELOPERS v. PRINCIPAL COMMISSIONER OF INCOME TAX

Citation : 2023 LiveLaw (SC) 648

A Division bench of the Supreme Court, while hearing an appeal, discussed the objective and purpose behind setting up a Settlement Commission under the Income Tax Act 1961.

Interest Income Earned On Deposits By Clubs In Banks Which Are Corporate Members Taxable; Principle Of Mutuality Not Applicable: Supreme Court

Case Title: SECUNDRABAD CLUB ETC. vs C.I.T.-V ETC.

Citation : 2023 LiveLaw (SC) 660

The Supreme Court has ruled that the interest income earned on fixed deposits (FDs) made by Clubs in the banks which are members of those Clubs has to be treated like any other income from other sources within the meaning of Section 2(24) of Income Tax Act, 1961. The bench of Justices B.V. Nagarathna and Prashant Kumar Mishra said that the principle of mutuality would not apply to interest income earned on FDs made by Clubs in the banks irrespective of whether the banks are corporate members of the Club or not.

Delhi High Court

The Officer Concerned Not Authorized To Administer Oath, No Evidentiary Value: Delhi High Court

Case Title: PCIT Versus ARN Infrastructure Ltd.

The Delhi High Court while upholding the ITAT’s ruling held that the addition of Rs. 10 crore was made purely on the basis of the statement made by directors without corroborative evidence.

Delhi High Court Stays The Income Tax Reassessment Proceedings Initiated Against Oxfam India

Case Title: Oxfam India Versus Deputy Commissioner Of Income Tax

The Delhi High Court has stayed the income tax reassessment proceedings initiated against Oxfam India.

Case Title: PCIT Versus Maharani Enterprises

The Delhi High Court has held that commission payments to non-resident agents overseas are not chargeable to tax and there is no TDS required to be deducted under Section 195 of the Income Tax Act.

Depreciation Allowable On Goodwill Though No Actual Cash Payment Made For Acquisition: Delhi High Court

Case Title: PCIT Versus M/S Eltek Sgs Pvt. Ltd.

Citation: 2023 LiveLaw (Del) 668

The Delhi High Court has held that depreciation is allowable on goodwill arising in a scheme of amalgamation even though no actual cash payment was made for the acquisition of goodwill.

Case Title: Madhani Prakash Enginers JV Versus UOI

The Bombay High Court has quashed the CBDT’s order rejecting the assessee’s application for condonation of the 43-day delay in filing the return of income (ITR).

Bombay High Court Quashes Review Order Which Disallowed Deductions, Being Contra To Natural Justice

Case Title: Kalpataru Power Transmission Ltd. Versus State Of Maharashtra

The Bombay High Court has quashed the review order against Kalpataru Power Transmission, disallowing works-contract deductions beyond Show Cause Notice (SCN).

Madras High Court

Case Title: Erode Mavatta Valamana Thodakka Versus .The Managing Director / Additional Registrar Erode District Central Cooperative Bank

The Madras High Court has directed the Finance Ministry and Central Board of Direct Taxes (CBDT) to take action on exempting primary agricultural cooperative credit societies from TDS deduction on cash withdrawals received from the Central Cooperative Bank for distribution to the beneficiaries.

Patna High court

The Patna High Court has held that completed assessments can be interfered with by the Assessing Officer while making the assessment under Section 153A only on the basis of some incriminating material unearthed during the course of the search.

Patna High Court Deprecates State Tax Authority's Conduct; Orders Restoration Of Refund Application

Case Title: Progressive Constructions Limited vs. The State of Bihar and Another

Case Citation: 2023 LiveLaw (Pat) 89

In a significant ruling, the Patna High Court criticized the State Tax Authority for its handling of a refund application filed by Progressive Constructions Limited and set aside the impugned order. The court, in its judgment, expressed strong disapproval of the Officer's conduct and restored the refund application before the appropriate authority.

Gujarat High Court

Gujarat High Court Quashes Orders Rejecting Declaration Under SVLDRS Scheme, Directs Acceptance Of Declaration

Case Title: M/s FTA HSRP Solutions Pvt. Ltd. vs Union Of India

The Gujarat High Court has rendered a verdict in favor of M/S Fta Hsrp Solutions Pvt, setting aside the rejection of their declaration filed under the Sabka Vishwas (Legacy Dispute Resolution) Scheme, 2019 (SVLDRS). The court has directed the designated committee, Sabka Vishwas Dispute Resolution Scheme, to accept the petitioner's declaration and bring closure to the tax dispute.

Gujarat High Court Quashes Income Tax Reassessment Notices Against Non-Existent Entity

Case Title: Anokhi Realty Private Limited vs. Income Tax Officer 2023 LiveLaw (Guj) 132 [Special Civil Application No. 17613 Of 2021]

Case Citation: 2023 LiveLaw (Guj) 132

The Gujarat High Court has quashed the income tax reassessment notice against a non-existent entity.

Services Can’t Be Roped Into FTS Unless Person using Services Able To Use Technology: Gujarat High Court

Case Title: Commissioner Of Income Tax (International Taxation And Transfer Pricing) Versus Star Rays

The Gujarat High Court has held that mere rendering of services cannot be roped into fees for technical service (FTS) unless the person utilising the services is able to make use of the technical knowledge, etc.

Calcutta High Court

Calcutta High Court Dismisses Income Tax Dept’s Appeal On The Ground Of Low Tax Effect

Case Title: Principal Commissioner Of Income Tax-2, Kolkata -Versus- M/S. Deepak Industries Ltd.

The Calcutta High Court has dismissed the appeal filed by the Income Tax Department on the ground of low tax effects.

Jammu & Kashmir And Ladakh High Court

Bank Not Obliged To Deduct TDS From FDR Interest To Jammu Development Authority: Jammu & Kashmir And Ladakh High Court

Case Title: PCIT Versus M/S The J&K Bank Ltd.

The Jammu & Kashmir and Ladakh High Court has held that the assessee bank shall not be obliged to deduct TDS from the interest payments made to the Jammu Development Authority (JDA) on its amount kept in FDRs.

Allahabad High Court

Allahabad High Court Imposes 10K Cost On Income Tax Authority For Violation Of Principles Of Natural Justice

Case Title: M/S M.L. Chains v. The Pr. Commissioner Of Income Tax - 1 and another 2023 LiveLaw (AB) 263 [Writ Tax No. - 638 of 2022]

Case Citation: 2023 LiveLaw (AB) 263

The Allahabad High Court on Wednesday imposed a cost of Rs. 10,000 to be paid by an erring officer of the Income Tax Department for violating the principles of natural justice while cancelling the earlier Assessment Order and initiating fresh proceedings under Section 263 of the Income Tax Act, 1961.

Case Title: Pralay Pal vs. State of Jharkhand and Anr.

Case Citation: 2023 LiveLaw (Jha) 34

Case Title: M/s A.M. Enterprises and Anr. vs. State of Jharkhand and Anr.

Case Citation: 2023 LiveLaw (Jha) 33

Case Title: Amazon Web Services Versus ACIT

The Delhi Bench of the Income Tax Appellate Tribunal (ITAT) has held that cloud computing services provided by Amazon Web Services cannot be held liable to tax in India as royalty and fee for technical or included services (FTS/FIS).

Treatment Of Shares In Books Of Accounts Determines Taxation, JM Financial’s Set-off Not Colourable Device: ITAT

Case Title: M/s J.M. Financial Ltd. Versus DCIT

The Mumbai Bench of the Income Tax Appellate Tribunal (ITAT) has held that the treatment of shares in books of accounts determines taxation under capital gain or business income, and the method adopted for arriving at the sale consideration does not determine the nature of the transaction.

Section 68 Of The Income Tax Act Is Not Applicable On Share Premium: ITAT

Case Title: Hiranandani Healthcare Private Limited Versus CIT (A)

The Mumbai Bench of the Income Tax Appellate Tribunal (ITAT) has held that Section 68 of the Income Tax Act, which relates to the taxability of unexplained cash credits, is not applicable to share premiums.

ITAT Quashes Income Tax Addition In Respect Of Immovable Property Warranting Revision By The PCIT

Case Title: Vikram Bajaj Versus PCIT

The Delhi Bench of the Income Tax Appellate Tribunal (ITAT) has quashed the income tax addition in respect of immovable property, warranting revision by the PCIT.

Income Would Accrue Only When The Assessee Gets A Right To Receive The Income: ITAT

Case Title: Mahalasa Exports Versus ITO

The Bangalore Bench of the Income Tax Appellate Tribunal (ITAT) has held that the income would be receivable only when the income accrues to the assessee, and the income would accrue to the assessee only when the assessee gets such a right to receive the income.

ITAT Imposes Cost Of Rs.10K On Foreign Portfolio Investor For Not Responding To Section 142(1) Notices

Case Title: Hunt International Investments LLC Versus DCIT

The Mumbai Bench of the Income Tax Appellate Tribunal (ITAT) has imposed a cost of Rs.10,000 on a foreign portfolio investor (FPI) for not responding to notices under Section 142(1) of the Income Tax Act.

Defects In Statement Of Reportable Account Rectified Within The Time Limit: ITAT Deletes Penalty

Case Title: KEB Hana Bank Versus Joint Director of Income Tax

The Chennai Bench of the Income Tax Appellate Tribunal (ITAT) has deleted the penalty as the defects in the statement of the reportable account were rectified within the time limit.

For Computing Holding Period For Capital Gain The Period To Be Taken From Date Of Allotment Of The Flat: ITAT

Case Title: DCIT Versus Narendra Gehlaut

The Mumbai Bench of the Income Tax Appellate Tribunal (ITAT) has held that for computing the holding period for capital gain, the period is to be taken from the date of allotment of the flat.

ITAT Allows Capital Gains Exemption To NSE Investor Under India-Mauritius Tax Treaty

​​Case Title: Saif Ii-Se Investments Mauritius Limited Versus Assistant Commissioner Of Income Tax

The Delhi bench of the Income Tax Appellate Tribunal (ITAT) has allowed the capital gains exemption to NSE investors under the India-Mauritius tax treaty.