Calcutta HC Rejects ₹27.74 Cr CENVAT Demand, Says Revenue Cannot Choose Assessee's Compliance Method

The Calcutta High Court has recently dismissed the Revenue's appeals against a biscuit manufacturer in a Rs 27.74 crore CENVAT credit dispute involving the manufacture of both dutiable and exempted biscuits.It held that an assessee has the right to choose between the methods of compliance available under Rule 6(3) of the CENVAT Credit Rules.A Division Bench of Justice Rajarshi Bharadwaj and Justice Uday Kumar held that the Revenue cannot switch an assessee to a more punitive method merely...

GST Demand Order Served Only On Portal: Delhi High Court Allows Appeal To Be Filed Without Limitation Objection

The Delhi High Court has allowed a GST assessee who participated in the show cause notice proceedings to file a statutory appeal against a subsequent demand order within four weeks after finding that the order had been served only by uploading it on the Common Portal.The Division Bench of Justices Anil Kshetarpal and Shail Jain held that while the assessee could not seek restoration of the proceedings to the stage of issuance of the show cause notice since it had filed a reply and participated...

Delhi High Court Grants Limitation Relief To Importer After Supreme Court's ITC Ruling Changed Customs Refund Rules

The Delhi High Court recently granted limitation relief to an importer whose customs refund remedy became ineffective following the Supreme Court's decision in ITC Limited v. Commissioner of Central Excise, Kolkata-IV.The top court in the case had held that a refund claim could not be entertained unless the underlying assessment or self-assessment had first been modified in appeal or under another provision of the Customs Act.The division bench of Justices Anil Kshetarpal and Shail Jain held...

Vijay Mallya Claims ₹15,000 Crore Recovered Against ₹6,203 Crore Dues: Bombay High Court Asks SBI, ED To Respond

Fugitive businessman Vijay Vittal Mallya has told the Bombay High Court that his civil liabilities to a consortium of banks have effectively been settled, with the lenders having recovered approximately ₹15,000 crore against an original claim of about ₹6,203 crore, including interest.The submission was made by Senior Advocate Amit Desai, appearing for Mallya, in a plea challenging a Special PMLA Court order that allowed the lender consortium to utilise confiscated assets for recovery of debts...

Kerala High Court Expunges NCLT's Adverse Remarks Against Union Bank, Sets Aside ₹1 Lakh Cost

The Kerala High Court has expunged adverse observations made by the National Company Law Tribunal, Kochi Bench, against Union Bank of India over errors in an application seeking withdrawal of insolvency proceedings. The court also held that the bank would not be required to deposit the ₹1 lakh cost imposed by the tribunal.Justice Harisankar V. Menon observed that the bank had made mistakes in the application. These included invoking the wrong provision and not placing the settlement proposal...

T-Series Tells Delhi HC It Will Rename Kartik Aaryan Film To 'Tu Meri Zindagi Hai' In Aashiqui Trademark Dispute

T-Series (Super Cassettes Industries) told the Delhi High Court on Friday that it has changed the title of its upcoming Kartik Aaryan and Sai Pallavi-starrer film from “Tu Hi Aashiqui” to “Tu Meri Zindagi Hai” in a bid to bring an end to a trademark dispute with Mukesh Bhatt's Vishesh Films.The proposal, however, could not be recorded as a complete consent settlement after the parties disagreed over how far the proposed terms should extend. Justice Jyoti Singh asked them to discuss the issue...

IT Dept. Cannot Cite Website Functionality To Avoid Withdrawing Order Passed In Defiance Of Court: Gujarat High Court

The Gujarat High Court has recently quashed reassessment proceedings against a charitable trust after the Revenue told the court that its tax portal had no functionality to withdraw an assessment order once it had been passed and accounted for. The assessment order was passed despite an interim order restraining the Assessing Officer from doing so.A Division Bench of Justice A.S. Supehia and Justice Vaibhavi D. Nanavati ruled, "Revenue cannot cite the excuse of nonavailability of any...

Delhi High Court To Examine If Audit Objection Can Trigger Reassessment For Period Prior To April 2021

The Delhi High Court is set to examine whether an audit objection can constitute “information” for initiating proceedings under the Income Tax Act, 1961, for a period prior to April 1, 2021.The Division Bench of Justices Dinesh Mehta and Rajneesh Kumar Gupta observed that the issue raised “seminal questions” requiring determination, particularly in view of the larger legal implications involved.The case arose from a notice issued to the assessee under Section 148A(1) of the Income Tax Act for...

Can ITAT Annul Assessment On Issue Taxpayer Did Not Challenge In Cross-Appeal Delhi High Court Issues Notice

The Delhi High Court has recently issued notice on appeals filed by the Income Tax Department challenging an ITAT order which had annulled certain assessment orders on the ground of non-compliance with the requirements of Section 153C of the Income Tax Act, 1961, despite the assessee not having filed a cross-appeal on that issue.The Division Bench of Justices Dinesh Mehta and Rajneesh Kumar Gupta was hearing Revenue's challenge in connection with nine assessment years from 2010-11 to 2018-19....

Karnataka High Court Dismisses Income Tax Appeals, As Additions Were Based On Uncorroborated Search Material

The Karnataka High Court has dismissed two Income Tax Department appeals concerning alleged unaccounted fees at an educational trust. It ruled that alleged unaccounted fee additions could not be sustained merely on the basis of loose sheets and similar seized documents in the absence of corroborative material.“Thus, the Revenue has not been able to corroborate the loose sheets and other seized materials on the basis of which the additions have been made. In the absence of any corroborative...

MSME Supplier's Interest Claim Cannot Be Denied Merely Because Principal Dues Are Paid: Gauhati High Court

The Gauhati High Court has recently ruled that an MSME supplier's claim for statutory interest on delayed payments cannot be disregarded merely because the principal contractual amount has subsequently been paid.Justice Kaushik Goswami observed, “Section 17 of the MSMED Act expressly makes the buyer liable to pay the amount due together with interest thereon as provided under Section 16. Therefore, subject to verification of the relevant dates of acceptance/deemed acceptance and the period of...

Karnataka High Court Upholds VAT On Swiping Machine Rentals By Axis Bank To Merchants

The Karnataka High Court has recently upheld the levy of VAT on rental charges collected by Axis Bank for card-swiping machines installed at merchant establishments.A Division Bench comprising Justice S.G. Pandit and Justice K. Manmadha Rao dismissed a Sales Tax Revision Petition filed by Axis Bank. “the rental charges collected by the petitioner in respect of EDCT machines constitute consideration for transfer of the right to use goods and are liable to tax under the KVAT Act.”, the court...