Vehicles Registered As Goods Carriage Vehicles Can't Be Classified Under Different Head For Demanding One-Time Tax: Kerala High Court

The Kerala High Court stated that vehicles registered as goods carriage vehicles, could not be classified under a different head for the purposes of demanding one-time tax under the second proviso to Section 3(1) of the Kerala Motor Vehicles Taxation Act. The Division Bench of Justices A.K. Jayasankaran Nambiar and Easwaran S. stated that “the department cannot alter their stand and classify the vehicles separately for the purposes of levy of one- time tax to the Kerala Motor Vehicles...

Activity Of “Chilling Of Milk” Is A Service, Leviable To Service Tax: CESTAT

The New Delhi Bench of Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has stated that activity of chilling of milk is leviable to service tax. The Bench of Binu Tamta (Judicial Member) and P.V. Subba Rao (Technical Member) has observed that “the activity of chilling of milk during the post negative period amounts to rendering 'services' as defined in section 65B...

NRI's Entitled To Benefits Provided To 'Eligible Passengers' Under 2016 Baggage Rules: Delhi High Court

The Delhi High Court has held that a non-resident Indian is fully entitled to the benefit provided to an “eligible passenger” under the Baggage Rules, 2016 for the purposes of Customs on arrival to India.Eligible passenger was defined by the Finance Ministry via a Notification dated June 30, 2017, to mean a passenger of Indian origin or a passenger holding a valid Indian passport, coming to India after not less than six months of stay abroad.Baggage Rules allow duty-free clearance of certain...

'Proof Beyond Reasonable Doubt' Is A Principle Of Criminal Law, Not Applicable To Tax Law: Delhi High Court

The Delhi High Court has made it clear that the principle of 'proof beyond reasonable doubt' cannot be made applicable to Section 148 of the Income Tax Act, 1961 which enables an assessing officer to open an assessment if he has 'reason to believe' that an assessee's income escaped assessment.A division bench of Chief Justice Devendra Kumar Upadhyaya and Justice Tushar Rao Gedela observed,...

Transfer Pricing | 'Resale Price Method' Most Appropriate To Determine ALP Where Distributor Makes No Value Addition To Imported Products: Delhi HC

The Delhi High Court has made it clear that where the distributor of an imported product makes no value addition to it before sale, Resale Price Method is the most appropriate method to determine the arm's length price in relation to its business with an Associated Enterprise.A division bench of Chief Justice Devendra Kumar Upadhyaya and Justice Tushar Rao Gedela thus dismissed the...

Notification Cannot Be Given Retrospective Effect To Deny Refund On Unutilised ITC Claimed Within Limitation Period: Madras HC Allows Gillette's Plea

Finding that the refund claim was filed within two years from the “relevant date” as defined in Explanation 2(a) to Section 54(14) of CGST Act , the Madras High Court recently clarified that a refund claim cannot be denied on the basis of retrospective operation of the Proviso to Rule 90(3) pf the CGST Rules.The High Court clarified this upon finding that the refund claims filed in the...

Delhi High Court Slams Directorate General Of Foreign Trade For Cancelling Trader's DEPB License 15 Yrs After SCN Was Issued

The Delhi High Court recently quashed a Directorate General of Foreign Trade (DGFT) communication cancelling the license issued to a trader involved in import and export of goods, citing almost fifteen years delay in culminating the show cause notice.Justice Sachin Datta cited Vos Technologies India Pvt. Ltd. v. The Principal Additional Director General & Anr. (2024) where the Delhi...

Delhi High Court To Examine Scope Of Customs Jurisdiction Under E-Cigarettes Act After Seizure Of "De-Addiction" Devices

The Delhi High Court is set to examine the extent of jurisdiction which can be exercised by the Customs Department under the Prohibition of Electronic Cigarettes (Production, Manufacture, Import, Transport, Sale, Distribution, Storage and Advertisement) Act, 2019.A division bench of Justices Prathiba M. Singh and Rajneesh Kumar Gupta have sought the authority's response on a private...

Retracted Statement Can't Be Termed As Incriminating Material, No Addition Can Be Made In Respect Of Completed Assessment: Gauhati High Court

The Gauhati High Court stated that retracted statement cannot be termed as incriminating material and no addition can be made in respect of completed assessment. The Commissioner of Income Tax (Appeals) and the ITAT were of the view that the said piece of evidence, i.e. retracted statement cannot be termed as incriminating material, noted the Division Bench of Chief...

Assessees Claim For ITC Cannot Be Denied For Being Disadvantageous To State Exchequer: Karnataka HC Clarifies Principles On Input Tax Credit Claims

The Karnataka High Court while laying down vital guidelines on Input Tax Credit stated that if the Assessee during the course of reassessment proceedings makes a claim for Input Tax Credit, the same cannot be disallowed only on the ground that the claim of the Assessee is disadvantageous to the State Exchequer. The Division Bench of Justices Krishna S Dixit and G....

Expansion Of Definition Of 'Sikkimese' In S.10(26AAA) Of Income Tax Act Doesn't Affect Rights Of Indigenous People: Sikkim High Court

The Sikkim High Court has upheld the constitutional validity of the definition 'Sikkimese' under the Income Tax Act, which was slightly expanded by way of an amendment in terms of the Finance Act, 2023.A division bench of Chief Justice Biswanath Somadder and Justice Meenakshi Madan Rai upheld the vires of Explanation (v) contained under clause (26AAA) of section 10 of the Income Tax Act,...

Tax Weekly Round-Up: March 10 - March 16, 2025

HIGH COURTSAndhra Pradesh HCNotice Under Rule 142(1)(A) Of CGST Rules Must Be Issued Before Issuing Proper SCN: Andhra Pradesh High CourtCase Title: Sri Durga Granites v. The Deputy Assistant Commissioner and OthersCase Number: W.P.Nos.3480 & 6504 of 2020The Andhra Pradesh High Court stated that a notice under Rule 142(1)(A) of CGST Rules must be issued before issuing proper show...

Customs Dept Repeatedly Told To Serve Notices, Orders On Assessee Via Email: Delhi High Court Seeks Compliance

The Delhi High Court has asked the Customs Department to scrupulously comply with its “repeated” direction to serve notices, orders on an assessee under the Customs Act, 1962 via email.Traditionally, correspondence related to any violation of the Act is made via post. However, with advent of technology and to avoid delays, Court had in Bonanza Enterprises vs. The Assistant Commissioner...

Burden Is On Assessee To Show Entitlement For Capital Gains Tax Exemption On Sale Of Agricultural Land: Kerala High Court

The Kerala High Court stated that burden of proof is on assessee to prove that he is entitled to capital gains tax exemption on sale of agricultural land. The Division Bench of Justices A.K. Jayasankaran Nambiar and Easwaran S. observed that “it is significant in this regard to observe that the claim of the assessee, being for exemption from the levy of income tax as applicable...

Proceedings U/S 129 Of GST Act Are Summary Proceedings, Burden To Prove Actual Movement Of Goods Lies On Assesee: Allahabad High Court

The Allahabad High Court has held that proceedings under section 129 of the GST Act are summary proceedings where the burden to prove the actual physical movement of goods is on the assesee transporting the goods. It further held that authorities have the power to seize goods on grounds of undervaluation.Justice Piyush Agrawal held, “Under the taxing statute, in the original proceeding or...

Fair Market Value Of Shares Determined By Statutory Methods Can't Be Rejected By Income Tax Department: Karnataka High Court

The Karnataka High Court stated that fair market value of shares determined by statutory methods can't be rejected by the income tax department. The Division Bench of Justices Krishna S Dixit and Ramachandra D. Huddar was addressing a case where the revenue has challenged the order passed by the Tribunal where the Tribunal held that the valuation report on DCF Method produced...

Delhi High Court Orders Customs Department To Release Arab Minor's Jewellery Which She Wore Since Childhood

The Delhi High Court has ordered the Customs Department to release the personal jewellery of a minor from UAE who had come to India to attend a relative's wedding.A division bench of Justices Prathiba M. Singh and Rajneesh Kumar Gupta passed the direction after perusing a photograph, depicting that she used to wear the said pieces of jewelry since childhood. It observed,“This Court has...

Error By Supplier In Mentioning GSTN Of Trader Can't Form Basis To Reject ITC On Purchases: Delhi High Court

The Delhi High Court recently came to the rescue of a Company engaged in the sale of various pharmaceutical products and medical devices, holding that it could not be denied Input Tax Credit on purchases merely because its supplier had mentioned a wrong GST number on the invoices.In the facts of the case, a division bench of Justices Prathiba M. Singh and Rajneesh Kumar Gupta observed,“The...

No Service Tax On Services By Organizer In Respect Of Business Exhibition Held Outside India: CESTAT

The New Delhi Bench of Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has stated that no service tax on services by organizer in respect of business exhibition held outside India. The Bench of Dr. Rachna Gupta (Judicial Member) and Hemambika R. Priya (Technical Member) has observed that “………the Business Exhibition for which the appellant received services from...

Jharkhand HC Directs Tax Authorities To Follow Due Procedure While Passing Orders; Imposes Costs For Passing Order Violating Natural Justice

The Jharkhand High Court directed the state tax authorities to follow due procedure while passing adjudication orders. The Division Bench of Chief Justice Ramachandra Rao and Justice Deepak Roshan stated that “despite directions issued by the Court, it appears that State Tax authorities are continuing to conduct adjudication proceedings in utter disregard to the mandatory provisions...