Indirect Tax Cases Monthly Round Up: July 2024
Mariya Paliwala
1 Aug 2024 3:16 PM IST
Supreme CourtCustoms Act | Owner Of Goods Liable To Pay Customs Duty Even After Confiscated Goods Are Redeemed Paying Fine : Supreme CourtCase Title: M/S Navayuga Engineering Co. Ltd. Versus Union Of India & Anr.Citation : 2024 LiveLaw (SC) 504In a notable ruling relating to the Customs Act of 1962, the Supreme Court on Tuesday (July 23) held that the importer would be liable to pay...
Supreme Court
Case Title: M/S Navayuga Engineering Co. Ltd. Versus Union Of India & Anr.
Citation : 2024 LiveLaw (SC) 504
In a notable ruling relating to the Customs Act of 1962, the Supreme Court on Tuesday (July 23) held that the importer would be liable to pay customs duty in addition to fines and other charges upon redeeming the confiscated goods.
Case Details: Commissioner of Central Excise, Jaipur -II v. M/s Miraj Products Pvt. Ltd.
Citation : 2024 LiveLaw (SC) 470
The Supreme Court recently held that pouches of chewing tobacco packed in High-Density Polyethylene (HDPE) bags would be considered a 'wholesale package' and could not be considered for imposing excise duty as per the provisions relating to retail sale price in the Central Excise Act, 1944.
Delhi High Court
Case Title: Vijendra Singh Versus Commissioner Of Customs
The Delhi High Court has held that the revoking suspension of license cannot restrict the customs department from inquiring for imposition of penalty.
Case Title: Aradhya Export Import Consultants Pvt Ltd Verses Commissioner Of Customs
The Delhi High Court held that a custom broker cannot be held guilty of having failed to discharge the obligation placed in terms of Regulation 10(n) of CBLR 2018, simply because he has not carried out physical verification of the veracity of the exporter.
Case Title: JV Creatives Pvt. Ltd. Versus Principal Additional Director General, DGGI, Gurugram Zonal Unit, Gurugram And Anr
Citation: 2024 LiveLaw (Del) 859
The Delhi High Court has upheld the Commissioner's action of provisionally attaching the petitioner's bank account, to the extent of Rs. 26.91 lakhs being the amount of input tax (ITC) claimed in respect of allegedly fake supplies.
Case Title: Olive Traders Versus The Commissioner, CGST
The Delhi High Court has quashed the order cancelling the petitioner's GST registration and permitted the petitioner to respond to the Show Cause Notice, since the only allegation against the petitioner is that it was found to be non-existent.
Case Title: Olive Traders Versus The Commissioner, CGST
The Delhi High Court has quashed the order cancelling the petitioner's GST registration and permitted the petitioner to respond to the Show Cause Notice, since the only allegation against the petitioner is that it was found to be non-existent.
Case Title: Kamla Vohra Versus Sales Tax Officer
The Delhi High Court has held that the uploading of notices by the GST department under the heading 'additional notices' amounts to sufficient service.
Case Title: New Okhla Industrial Development Authority Versus Union Of India & Ors.
The Delhi High Court has held that the loans and advances extended by the New Okhla Industrial Development Authority (NOIDA) are not commercial activities and are eligible for exemption under Section 10(46) of the Income Tax Act.
TPO Lacks Jurisdiction To Question Commercial Expediency Or Genuineness Of Need: Delhi High Court
Case Title: PCIT Versus Samsung India Electronics Pvt. Ltd.
The Delhi High Court has held that the statutory authority conferred upon the Transfer Pricing Officer (TPO) can only extend to an examination of the appropriateness of the method adopted for the purposes of determining arm's length pricing (ALP) or evaluating the enlistment of comparables. However, the TPO would neither be justified nor could it be countenanced to have the jurisdiction to question commercial expediency or genuineness of need.
Bombay High Court
Bombay High Court Quashes Proceedings Initiated By Customs Authorities For Seizing Jewellery
Case Title: Rajendra S. Bajaj Versus The Union of India
The Bombay High Court has quashed the proceedings initiated by the customs authorities for seizing the jewelry.
Case Title: M/s. TML Business Services Ltd. Versus The Deputy Commissioner of Sales Tax
The Bombay High Court has directed the sales tax department to refund Rs. 10.70 crore.
Bombay High Court Quashes Customs Duty Reassessment Against Patanjali Foods On Crude Palm Oil Import
Case Title: Patanjali Foods Ltd. Versus UOI
The Bombay High Court has quashed the customs duty reassessment against Patanjali Foods on the import of crude palm oil for home consumption.
Madras High Court
Interest Can't Be Demanded When Entire Stamp Duty Paid During Pendency Of Appeal: Madras High Court
Case Title: The Chief Revenue Controlling Authority Chennai Versus R.Muniyandi
Citation: 2024 LiveLaw (Mad) 288
The Madras High Court has held that interest cannot be demanded when the entire amount as demanded by the authorities has been paid even during the pendency of the appeal.
Gujarat High Court
Case Title: Commissioner Of Customs Versus Baburam Harichand
LL Citation: 2024 LiveLaw (Guj) 95
The Gujarat High Court has upheld the decision of the Customs, Excise & Service Tax Appellate Tribunal (CESTAT) allowing the refund of Special Additional Duty (SAD) on betel nuts. The court observed that there is no distinction between industrial grade betel nuts and edible supari.
Gauhati High Court
Interest Can't Be Levied When No Taxable Due Is Found: Gauhati High Court
Case Title: IOCL Versus The State Of Assam
The Gauhati High Court has held that once the assessment order of the authorities is set aside and the matter is remanded back and assessed, no taxable interest can be levied.
Kerala High Court
Case Title: Mythree Associates Versus Commercial Tax Officer
The Kerala High Court has held that the petitioner/assessee has paid tax at the prescribed rate on the materials procured by him from the Travancore Devaswom Board, and since this amount has already been paid over to the State Exchequer, any denial of credit to the assessee solely on the ground that the Travancore Devaswom Board/Truvabharanam Commissioner was not registered under the KVAT Act would be unjust.
Case Title: Indian Medical Association Versus UOI
Citation: 2024 LiveLaw (Ker) 469
The Kerala High Court has dismissed the writ petition filed by the Indian Medical Association challenging the levy of GST on supply of goods and services to its members.
Goods Transported For Own Use, No Intention To Evade Tax, Kerala High Court Deletes Penalty
Case Title: State Of Kerala Versus Petrolink Data Services (P) Ltd.
The Kerala High Court has held that the assessee, immediately after the goods were detained, produced the statutory declarations in Form 16 to demonstrate that the goods that were being transported were for the own use of the assessee.
Kerala High Court Allows Adjustment Refund Amount Towards Amount payable under Amnesty Scheme
Case Title: S. Vijayan Versus Commissioner Of State Goods And Service Taxes
The Kerala High Court has held that it is open to the department to consider an adjustment of the refund amount due to the appellant towards the amounts due from him by way of settlement under the Amnesty Scheme.
SAD Refunds Can't Be Denied For Taking Away Facility Of Re-Crediting DEPB Scrips: Kerala High Court
Case Title: Elite Green Pvt Ltd Versus Under Secretary (Customs-III/VI)
The Kerala High Court has held that if the appellant/assessee satisfies the conditions in Notification No.102/2007-Cus dated 14.09.2007 for the purposes of refund of the 4% Special Additional Duty (SAD), then merely because the facility of re-crediting the Duty Entitlement Pass Book (DEPB) scrips has been taken away, the refund that the appellant is entitled to by virtue of the notification cannot be denied.
Kerala High Court Quashes Order Demanding Late Fee For Delay In Filing GSTR-9C
Case Title: Raju Sreedharan Versus The Superintendent, Central Tax & Central Excise
The Kerala High Court has quashed the order demanding a late fee for delay in filing GSTR-9C.
Rajasthan High Court
Case Title: M/s Power Grid Corporation Of India Ltd. Versus State of Rajasthan
Citation: 2024 LiveLaw (Raj) 172
The Rajasthan High Court, Jaipur Bench, has quashed the AAR's order rejecting the application for the advance ruling as not maintainable on the grounds that the applicant was not the supplier.
Andhra Pradesh High Court
Case Title: Sree Murali Mohana Boiled & Raw Rice Mill Pvt. Ltd. Versus UOI
The Andhra Pradesh High Court has held that the trade notification issued by the Directorate General of Foreign Trade (DGFT) prohibiting export of non-basmati white rice cannot have retrospective effect.
Case Title: Reddy Enterprises Versus The Appellate Authority & Additional Commissioner
The Andhra Pradesh High Court has held that the filing of the statutory appeal by the writ petitioner after writ proceedings and subsequent proceedings against the same order of assessment, just to avoid the compliance of the directions of the writ Court, is nothing but abuse of the process of the Court.
Allahabad High Court
Case Title: M/S Rajdhani Arms Corporation, Lucknow Thru. Propreitor, Seema Sarna v. Commissioner Of Commercial Tax U.P., Commercial Tax Bhawan,Lucknow
The Allahabad High Court has held that the term “ex-parte” in Rule 63(4) of the Uttar Pradesh Value Added Tax Rules, 2008 can be interpreted as for want of representation of the defendant after service of notice, the case may be decided on merits. However, when the appellant or his counsel is not present, the case may only be dismissed in default.
Case Title: M/S Kashi Ram Ved Prakash vs. Commissioner Of Commercial Tax U.P. Lucknow
Citation: 2024 LiveLaw (AB) 428
The Allahabad High Court has held that a registered dealer cannot withhold the tax realised by him from a purchasing dealer only because he had deposited an excess amount of tax at the time of the transaction.
Case Title: M/S Abdul Rahman & Sons Versus Union Of India
The Allahabad High Court has admitted the writ petition stating that the IGST Act lacks provision for appeals provided against an order passed by the state GST Officer.
Calcutta High Court
Case Title: Commissioner Of Service Tax verses G.S. Atwal & Co. Engineering Pvt Ltd.
Citation : 2024 LiveLaw (Cal) 176
The Calcutta High Court held that no service tax will be levied on activities such as cutting or mineral extraction which are part of mining operations, if mining operations are itself not subjected to service tax on the date of levy.
Case Title: M/s. Asian Hotels (East) Ltd. & Anr. Versus The Deputy Commissioner of State Tax & Ors.
The Calcutta High Court stayed the demand order confirming the payment reversal of the ITC due to the cancellation of the supplier's registration.
Telangana High Court
Non-Filing Of GST Return Due To Technical Glitch, Bank Can't Be Penalised: Telangana High Court
Case Title: M/s. Standard Chartered Bank Vs. The Principal Commissioner of Central Tax & others.
The Telangana High Court has held that the petitioner bank could not file its return in the GST portal because of a technical glitch and cannot be saddled with demand, penalty, and interest.
Case Title: The State of Andhra Pradesh and Others Versus M/s.Himani Limited and Others.
The Telangana High Court has held that the 10% duty is leviable on Himani Navaratan Oil and Himani Gold Turmeric Ayurvedic Cream as they are classified as ayurvedic medicine and not cosmetics.
Karnataka High Court
Citation: 2024 LiveLaw (Kar) 296
Case Title: The Joint Commissioner Of Commercial Taxes (Appeals)-3 Versus Transways India Transport
The Karnataka High Court has held that undervaluation cannot be a ground for seizure of goods in transit by the inspecting authority.
GST Appeal Filed Online Is Within Time, Karnataka High Court Condones Delay In Physical Filing
Citation: 2024 LiveLaw (Kar) 299
Case Title: M/S Hitachi Energy India Limited Versus State Of Karnataka
The Karnataka High Court has condoned delay in the physical filing of the appeal as the appeal was filed via online mode within time.
AAR
Applicant's Name: M/s Elixrr Industries Pvt Ltd.
The Gujarat Authority of Advance Ruling (AAR) has ruled that the Input Tax Credit (ITC) available on capital goods used for transmission of electricity from power stations of Distribution Companies (DISCOM) to factory premises.
Applicant's Name: Alleima India Private Limited
The Gujarat Authority of Advance Ruling (AAR) has ruled that deduction of nominal amount from employee's salary for availing food facility is not 'supply' under the provisions of Section 7 of the CGST Act, 2017.
GST Payable On Advance Received Against Supply Portion Of Work Contract: Gujarat AAR
Applicant's Name: M/s. Vijai Electricals Ltd.
The Gujarat Authority of Advance Ruling (AAR) has held that the GST is payable in advance received against the supply portion in respect of the work contract.
Applicant's Name: Roppen Transportation Services
The Karnataka Authority of Advance Ruling has held that the Rapido is liable to pay GST on services provided by independent four-wheeler taxi service providers.
