Tax Cases Weekly Round-Up: 11 June to 17 June 2023
Mariya Paliwala
18 Jun 2023 7:00 AM GMT
Delhi High Court Delhi High Court Quashes SCN For Being Devoid Of Reasons, Restores GST RegistrationCase Title: Rishiraj Aluminium Private Limited Versus Goods And Service Tax OfficerThe Delhi High Court has quashed the show cause notice as it was devoid of reasons and restored the GST registration.Rule 89(4) Under CGST Rules Inapplicable On Refund Of Integrated Tax Paid On Zero-Rated...
Delhi High Court
Delhi High Court Quashes SCN For Being Devoid Of Reasons, Restores GST Registration
Case Title: Rishiraj Aluminium Private Limited Versus Goods And Service Tax Officer
The Delhi High Court has quashed the show cause notice as it was devoid of reasons and restored the GST registration.
Case Title: Ohmi Industries Asia Private Limited Versus Assistant Commissioner
The Delhi High Court has held that Rule 89(4) of the Central Goods and Services Tax Rules, 2017 is inapplicable to cases of refund of integrated tax paid on zero-rated supply.
Bombay High Court
Case Title: Citibank N.A. Versus S.K. Ojha
The Bombay High Court has held that there is no jurisdiction for an assessing officer to reopen an assessment if a dispute is settled under the Kar Vivad Samadhan Scheme (KVSS).
Karnataka High Court
Case Title: Coffee Day Resorts (Msm) Pvt. Ltd. Versus The Deputy Commissioner Of Income-Tax
The Karnataka High Court has held that a notice and assessment order passed in the name of a non-existing company is substantively illegal and is an order passed without jurisdiction.
Kerala High Court
Case Title: K.R Santhosh Versus Revenue Divisional Officer
Citation: 2023 LiveLaw (Ker) 268
The Kerala High Court has held that as the nature of the land of the petitioner has been permitted to be changed pursuant to the passing of a statutory order under the Kerala Land Utilisation Order, 1967, the competent authority is bound to re-assess the rate of basic tax and to make necessary entries in the Basic Tax Register after verifying the veracity and genuineness of the permission obtained.
Allahabad High Court
Case title - Pankaj Khare vs. Union Of India Thru. Secy. Deptt. Of Custom And Cgst, Ministry Of Finance, New Delhi And Others 2023 LiveLaw (AB) 187 [WRIT TAX No. - 148 of 2023]
Case Citation: 2023 LiveLaw (AB) 187
The Allahabad High Court has ordered the Commissioner, GST to issue clear direction to the GST Commissionerate in Lucknow that no notices regarding payment of service tax /GST are issued to the lawyers rendering legal service falling in the negative list so far as service tax is concerned.
Rajasthan High Court
Case Title: Commercial Taxes Officer Versus Chokhi Dhani Resorts Pvt. Ltd.
The Rajasthan High Court, Jaipur Bench, has held that Value Added Tax (VAT) is leviable on the entire ‘entry-coupon’ amount charged by Chokhi Dhani Resort, which is adjustable against food.
Calcutta High Court
Case Title: Mannoj Kumar Jain & Anr. Versus Union of India
The Calcutta High Court has held that the Look Out Circulars causes an immediate and irrevocable violation of a person’s fundamental right to movement.
Case Title: M/s. Gargo Traders Versus The Joint Commissioner, Commercial Taxes
The Calcutta High Court, while noting that at the time of the transaction, the name of the supplier as a registered taxable person was already available with the government record, and the buyer/petitioner had paid the amount of the purchased articles as well as tax through the bank and not in cash, remanded the matter back to the department.
Case Title: Commissioner Of Income Tax TDS, Versus ABP Private Limited
The Calcutta High Court has held that TDS is not deductible on trade discounts allowed by newspaper companies to Indian Newspaper Society (INS) accredited advertising agents.
Punjab And Haryana High Court
Case Title: M/s Samyak Metals Pvt. Ltd. Versus Union of India and others
The Punjab and Haryana High Court has directed the GST Department to return illegally recovered GST without issuing a Show Cause Notice, along with 6% interest.
Case Title: Probo Media Technologies Versus Union of India
The Punjab and Haryana High Court impeded coercive actions against the online opinion betting app, Probo Media Technologies, in respect of the GST Notice demanding Rs. 1500 crore.
Orissa High Court
GST Tribunal Not Constituted: Orissa High Court Condones Delay And Stays GST Demand
Case Title: M/s. Laxman Barik Versus Joint Commissioner of State Tax (Appeals)
The Orissa High Court stayed the Goods and Service Tax (GST) demand subject to deposit of tax as the GST Tribunal is not constituted.
ITAT
Benefits Of India- Mauritius DTAA Available To Collective Investment Vehicles: ITAT
Case Title: Sapein Funds Ltd. Versus CIT(International Taxation)
The Delhi Bench of the Income Tax Appellate Tribunal (ITAT) has held that the benefits of the Double Taxation Avoidance Agreement (DTAA) are available to collective investment vehicles.
200% Penalty Can’t Be Levied Unless Dept. Specifies Misreporting: ITAT
Case Title: Saltwater Studio LLP Versus NFAC
The Mumbai Bench of the Income Tax Appellate Tribunal (ITAT) has held that a 200% penalty can’t be levied unless the department specifies misreporting.
Interest Income Received On Temporary FDs Is Eligible For Exemption: ITAT
Case Title: Allstate India Private Limited Versus Deputy Commissioner of Income-tax
The Banglore Bench of the Income Tax Appellate Tribunal (ITAT) has held that interest income received on temporarily fixed deposits is eligible for exemption.
Case Title: Zainul Abedin Ghaswala Versus CIT(A), NFAC
The Mumbai Bench of the Income Tax Appellate Tribunal (ITAT) has allowed the deduction under Section 54F of the Income Tax Act on the grounds that the assessee is not the exclusive owner of multiple residential properties occupied by other family members.
Case Title: Dy. Commissioner of Income-tax Central Circle 1(4) Versus M/s Grasim Industries Ltd.
The Mumbai Bench of the Income Tax Appellate Tribunal (ITAT) has held that income tax is not payable on the interest subsidy received under the technology upgradation fund scheme.
Expenses For Community Development, Environment Health & Safety : ITAT Allows CSR Expenditure
Case Title: Dy. Commissioner of Income Tax Versus M/s. GMR Warora Energy Ltd.
The Mumbai Bench of the Income Tax Appellate Tribunal (ITAT) has held that once the expenditure has been accepted to be for community development and environmental health and safety expenses, the same cannot be held to have not been incurred wholly and exclusively for the purpose of business in the year under consideration.
CESTAT
Case Title: M/s. Arcelor Mittal Stainless (I) P. Ltd. Versus Commissioner Service Tax
The Mumbai Bench of the Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has held that the services rendered by Indian commission agents to foreign principals will qualify as "export of service.
CESTAT Allows Service Tax Refund On Advance Amount Returned To The Buyer, Upon The Cancellation Of The Flats Booking
Case Title: Guardian Landmarks LLP Versus Commissioner of Central Excise & Service Tax
The Mumbai Bench of the Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has allowed service tax refunds on advance amounts returned to the buyer upon cancellation of the flat booking.
AAAR
Movement Of Goods Between Branches In Different States Taxable Under 'Lease Rental Service': AAAR
Appellant’s Name: CHEP India Private Limited
The Maharashtra Appellate Authority of Advance Ruling (AAAR) has ruled that the movement of goods between branches in different states is taxable under 'lease rental service'.
AAR
Applicant’s Name: M/S Sanjeevani Psychiatric Clinic
The Rajasthan Authority of Advance Ruling (AAR) has held that Goods and Service Tax (GST) is payable on substance use disorder as it is outside the ambit of health care services.
