Tax Cases Weekly Round-Up: 18 June To 24 June, 2023

Delhi High Court

Delhi High Court Directs AO To Provide Information To Vodafone Mauritius To Drive Out The Validity Of TRC

Case Title: VODAFONE MAURITIUS LIMITED Versus ACIT

The Delhi High Court has directed the AO to provide information to Vodafone Mauritius to determine the validity of the Tax Residency Certificate (TRC).

Bombay High Court

Bombay High Court Allows BOCW Cess Refund On Supply Portion Of Contract

Case Title: GE T and D India Ltd Versus Union of India & Ors

The Bombay High Court has allowed the Building and Other Construction Workers Welfare (BOCW) Cess refund on the supply portion of the contract.

Excise Commissioner Is Duty Bound To Cancel Liquor Licence On The Application Of Legal Heirs Of The Deceased: Bombay High Court

Case Title: Dattaram Govind Naik Versus State Of Goa

The Bombay High Court, Goa Bench has held that when the legal heirs of the deceased license holder applied for cancellation, the excise commissioner was duty-bound to cancel it.

Director Proves Lack Of Control On Financial Affairs: Bombay High Court Quashes Income Tax Recovery

Case Title: Prakash B. Kamat Versus Principal Commissioner of Income-tax

The Bombay High Court has quashed the income tax recovery against the Director of a company on the grounds that the Director has sufficiently discharged the burden cast upon him in terms of Section 179(1) of the Income Tax Act.

Karnataka High Court

Karnataka High Court Issues Directions To Determine Tax Difference Calculation For Pre-GST Works Contract

Case Title: B S Kumar Swamy Versus State Of Karnataka

The Karnataka High Court has issued directions determining the tax difference calculation for pre-GST works contracts.

Kerala High Court

GST Act Has An Inbuilt Mechanism And Impliedly Excludes The Application Of The Limitation Act: Kerala High Court

Case Title: Penuel Nexus Pvt. Ltd. Versus The Additional Commissioner Headquarters (Appeals)

Citation: 2023 LiveLaw (Ker) 280

The Kerala High Court has held that Section 107 of the CGST Act is an inbuilt mechanism and has impliedly excluded the application of the Limitation Act.

Andhra Pradesh High Court 

Life Tax On Vehicle Should Be On The Cost, Excluding GST And Cess: Andhra Pradesh High Court Directs Refund

Case Title: Valluru Pavan Chand Versus State of AP

The Andhra Pradesh High Court has held that life tax is to be collected from the vehicle owner upon sale based on the net invoice price of the vehicle and not the ex-showroom price of the vehicle.

Tax Not Payable On Motor Vehicles Exclusively Used for Contract Inside Central Deposit Yard: Andhra Pradesh High Court

Case Title: Tarachand Logistics Solutions Limited Versus State of Andhra Pradesh

The Andhra Pradesh High Court has held that the motor vehicles exclusively used for the petitioner's contract inside the Central Deposit Yard of Rashtriya Ispat Nigam Limited (RINL) are not liable for taxation and are entitled to exemption.

Madhya Pradesh High Court 

Failure Of Kia Motors To Furnish Information For The Entry Of Demo Car Into Madhya Pradesh: Madhya Pradesh High Court Upholds GST Levy

Case Title: M/S Kia Motors India Private Ltd. Versus The State Of Madhya Pradesh

The Madhya Pradesh High Court has held that in the absence of information given, the entry of a demo car into the state of Madhya Pradesh renders it exigible to GST.

Gujarat High Court 

'Provide Specific Reasons': Gujarat High Court Quashes Order Cancelling Firm's GST Registration Based On Cryptic Show Cause Notice

Case Title: Sona Metals Versus State Of Gujarat 

The Gujarat High Court has quashed an order cancelling the Goods and Services Tax (GST) registration of Sona Metals, citing a lack of detailed reasons for the cancellation.

Gauhati High Court 

Gauhati High Court Issues Notice On Contempt Plea Alleging Non-Compliance Of Direction To Refund Tax Deducted From BSF DIG’s Salary

Case Title: Dr. Chyawan Prakash Meena v. Raja Ghosh, IRS & 4 Ors.

The Gauhati High Court on Monday issued notice to the Income Tax Officials in a contempt petition filed by a DIG of Border Security Force alleging non-compliance of the court order directing the IT authorities to refund the tax deductions made from the officer's salary.

ITAT 

Bogus Long-Term Capital Gains From Transaction In Penny Stocks: ITAT Upholds Addition

Case Title: Hemil Subhashbhai Shah Versus DCIT

The Ahmedabad Bench of the Income Tax Appellate Tribunal (ITAT) has upheld the addition of bogus long-term capital gains from transactions in penny stocks.

CESTAT

No Service Tax Payable On Administrative Charges Received From Coal Mine Companies By Coal Mines PF Organization: CESTAT

Case Title: Coal Mines Provident Fund Organization Versus Commissioner of Central Excise & Service Tax, Dhanbad

The Kolkata Bench of the Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has held that service tax is not payable on administrative charges received from coal mine companies by the Coal Mines Provident Fund Organisation.

Service Tax Not Payable On Fixed Facility Charges For Providing Liquid Gas Storage Tanks: CESTAT

Case Title: M/s.Inox Air Products Ltd. Versus The Commissioner of GST & Central Excise

The Chennai Bench of the Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has held that service tax is not payable on fixed facility charges (FFC) for providing liquid nitrogen gas storage tanks.

AAAR

18% GST Payable On Target-Based Incentive Received By Intel Reseller: AAAR

Appellant’s Name: M/s MEK Peripherals India Private Limited Versus

The Maharashtra Appellate Authority of Advance Ruling (AAAR), while upholding the Order of the AAR, ruled that 18% GST is payable on target-based incentives received by Intel resellers.

AAR

‘Duty Credit Scrips’ To Be Excluded From The Value Of Exempt Supply To Compute ITC Reversal: AAR

Applicant’s Name: M/s. Kaveri Exports, TSAAR Order No.12/2023

The Telangana Authority of Advance Ruling (AAR) has ruled that "duty credit scrips" shall be excluded from the value of exempt supply.