Tax Cases Weekly Round-Up: 20 August To 26 August, 2023
Mariya Paliwala
27 Aug 2023 11:32 AM IST
Supreme CourtSupreme Court Recalls Judgment Holding That No Indirect Taxes Can Be Levied On Duty-Free Shops At AirportsCase Title: Commissioner of CGST and Central Excise Mumbai East vs Flemingo Travel Retail LtdCitation: 2023 LiveLaw (SC) 673The Supreme Court has recalled its Division Bench judgment dated 10 April 2023, where the top court had ruled that Duty-Free Shops situated in the...
Supreme Court
Supreme Court Recalls Judgment Holding That No Indirect Taxes Can Be Levied On Duty-Free Shops At Airports
Case Title: Commissioner of CGST and Central Excise Mumbai East vs Flemingo Travel Retail Ltd
Citation: 2023 LiveLaw (SC) 673
The Supreme Court has recalled its Division Bench judgment dated 10 April 2023, where the top court had ruled that Duty-Free Shops situated in the arrival or departure terminals of Airports are outside the customs frontiers of India and therefore, they cannot be saddled with any indirect taxes like the Service Tax.
Delhi High Court
Case Title: DGIT Versus The Indian Plywood Mfg. Co.
The Delhi High Court has held that the income tax department is not under the obligation to grant additional tax concessions as per the order passed by the Board for Industrial and Financial Reconstruction (BIFR).
Case Title: Flipkart India Private Limited Versus Value Added Tax Officer
The Delhi High Court, while allowing the refund to Flipkart India, held that a pre-deposit made before the Objection Hearing Authority (OHA) cannot be adjusted against any other tax dues.
Case Title: PCIT Versus M/S National Fertilizers Ltd.
The Delhi High Court has rejected the appeal of the income tax department and refused to condone the delay of 498 days.
Bombay High Court
Case Title: Astec LifeSciences Ltd. Versus The Assistant Commissioner of Income Tax
The Bombay High Court has quashed the reopening of the assessment after 4 years in the absence of concealment by the assessee.
Gujarat High Court
Gujarat High Court Quashes Faceless Assessment Order For Lack Of Proper Opportunity Of Hearing
Case Title: Shree Ganesh Intermediary Private Limited Versus National Faceless Assessment Centre, Delhi
Citation: 2023 Livelaw (Guj) 137
The Gujarat High Court has quashed the faceless assessment on the grounds that there is only a day for the assessee to respond so as to save the limitation period.
Gujarat High Court Quashes Order Rejecting Refund Claim By Vodafone-Idea
Case Title: M/S Vodafone Mobile Services Limited Versus Union Of India
Case Citation: 2023 Livelaw (Guj) 138
The Gujarat High Court has ruled in favor of M/S Vodafone Mobile Services Limited, a prominent telecommunications provider, in a case challenging the rejection of their claim for a tax refund under the Goods and Services Tax (GST) regime.
Himachal Pradesh High Court
Case Title: M/s Vardhman Ispat Udyog Versus State of Himachal Pradesh and Ors.
The Himachal Pradesh High Court has stayed the service tax-cum-divisional commissioner’s order as GSTAT was not constituted.
Jharkhand High Court
Labor Cess Inapplicable To Material Supply And Consultancy Charges: Jharkhand High Court
Case Title: The State of Jharkhand and Others vs. M/s Flowmore Limited
Case Citation: 2023 LiveLaw (Jha) 28
The Jharkhand High Court has ruled that Labor Cess should not be imposed on the supply of materials and consultancy charges for a contract that is different from civil works contracts. This decision came after the State appealed against a ruling made by a Single Judge Bench on June 13, 2022. The Single Judge Bench had stated that Labor Cess is not applicable to the supply of materials and consultancy charges for a contract that is distinct from civil works contracts.
ITAT
Case Title: Deputy Director of Income Tax Versus Standard Chartered Bank
The Mumbai Bench of the Income Tax Appellate Tribunal (ITAT) has allowed the loss of Rs. 1,094.14 crore to Standard Chartered Bank arising from a securities scam as a business loss.
Interest Certificate Not Necessary For Claiming Section 24(B) Deduction: ITAT
Case Title: Manjri Stud Farm Pvt. Ltd. Versus ACTI
The Mumbai Bench of Income Tax Appellate Tribunal (ITAT) has held that the interest certificate is not necessary for claiming section 24(b) deduction.
ITAT Deletes TP-Adjustment On Payment Of Export Commission And Model Fee Against Honda Subsidy
Case Title: Honda Motorcycle and Scooter India Pvt. Ltd. Versus ACIT
The Delhi Bench of the Income Tax Appellate Tribunal (ITAT) has deleted the adjustment on account of Arm's Length Pricing (ALP) of the export commission payment against the Honda subsidy.
HSBC Not Liable To Deduct TDS On Nostro Account Maintenance Charges: ITAT
Case Title: ITO Versus HSBC
The Mumbai Bench of the Income Tax Appellate Tribunal (ITAT) has held that the assessee, HSBC, was not under obligation to withhold tax from Nostro Account Maintenance Charges in terms of Section 195 of the Income Tax Act and therefore could not be treated as an ‘assessee in default’.
CESTAT
Onus Lies On Restaurant To Prove Absence Of AC Facility To Avail Service Tax Exemption: CESTAT
Case Title: Gurukripa Yuvraj Veg. & Non-veg. Restaurant Versus Commissioner and Additional Director General
The Delhi Bench of the Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has held that the onus lies on the restaurant to prove the absence of an AC facility to avail of service tax exemption.
AAAR
GST Applicable On Education & Training To Commercial Pilots As Per DGCA Syllabus: AAAR
Appellant’s Name: CAE Simulation Training Private Limited
The Uttar Pradesh Appellate Authority of Advance Ruling (AAAR) has ruled that education and training for commercial pilots as per the syllabus of the Directorate General of Civil Aviation (DGCA) are not exempt from GST.
AAR
Applicant’s Name: M/s Uvve Glass Private Limited
The Rajasthan Authority of Advance Ruling (AAR) has held that Input Tax Credit (ITC) The Rajasthan Authority of Advance Ruling (AAR) has held that input tax credit (ITC) is admissible on GST paid on inward supply for fixing plant and machinery to earth by foundation or structural support.
18% GST Payable On Foam Cup Pad: AAR
Applicant’s Name: Maavisa Fom CUP Private Limited
The Uttar Pradesh Authority of Advance Ruling (AAR) has ruled that 18% GST is payable on foam cup pads.
