Madras High Court Directs Refund Of ₹6.41 Lakh To The Madras Club, Says Tax Burden Not Passed On Members

The Madras High Court on 1 September directed the authorities to refund Rs.6.41 lakh to The Madras Club, after finding that the club had not passed on the tax burden to its members to that extent. A Division Bench of Justices Anita Sumanth and C. Kumarappan partly allowed the club's appeal against a CESTAT order rejecting its refund claim. The judges held: “...in respect of the portion of the amount in a sum of Rs.9,09,717/-, the appellant has already passed on the burden to its members....

Jammu & Kashmir and Ladakh High Court Quashes GST Penalty Proceedings Over One-Day Delay In Notice

The High Court of Jammu & Kashmir and Ladakh has held that the seven-day timeline under Section 129(3) of the Central Goods and Services Tax Act, 2017 for issuing a notice after detention and seizure of goods is mandatory. The court set aside the orders in the case after finding that the notice was issued a day beyond the prescribed period.“There was a delay of one day in issuing the notice, which vitiates the entire proceedings,” a Division Bench of Acting Chief Justice Sanjeev Kumar and...

Invalid Swiss Tax Reference Can't Extend Limitation For Tax Assessment: Delhi High Court Dismisses Income Tax Dept's Appeal

The Delhi High Court has dismissed the Income Tax Department's appeal against an ITAT order quashing a search assessment for AY 2006-07 on the ground of limitation, in light of its earlier judgment in Principal Commissioner of Income Tax, Central-1, Delhi v. Sanjay Jain which held time limit for completing search assessments cannot be extended merely by making a reference to a foreign tax authority if the information sought is not permissible under the applicable tax treaty.The case before the...

Delhi High Court Orders Blocking Of Websites Illegally Streaming F1 Racing, ATP Tennis, Saudi Pro League

The Delhi High Court has recently ordered the blocking of four rogue websites accused of illegally streaming Formula 1, ATP Tour and Saudi Pro League events in India, for which FanCode has exclusive broadcasting rights.Justice Jyoti Singh passed the order on September 10, granting Sporta Technologies, which owns and operates FanCode, an ex parte ad interim injunction. The court found that Sporta had made out a prima facie case, that the balance of convenience lay in its favour and that it was...

Delhi High Court Upholds Corrigendum Correcting GST Portal Order That Showed Proceedings Dropped

The Delhi High Court has upheld a corrigendum issued by a GST officer to correct an inadvertent error on the GST portal, where the portal-generated order showed that proceedings against a taxpayer had been dropped even though the accompanying adjudication order had confirmed a tax, interest and penalty demand.The Division Bench of Justices Anil Kshetarpal and Shail Jain held that the corrigendum merely corrected an inconsistent recital in the original order and did not create a fresh demand.The...

Gujarat High Court Admits Ford India Plea Against GST Demands Based On E-Way Bill Discrepancies

The Gujarat High Court on 3 September admitted connected writ petitions filed by Ford India Private Limited challenging show-cause notices and Orders-in-Original issued under Section 74 of the Central Goods and Services Tax Act, 2017, concerning alleged discrepancies between taxable values and e-way bill data. A Division Bench of Justices A.S. Supehia and Vaibhavi D. Nanavati found that the adjudicating authority had expressed its inability to reconcile the voluminous data despite the material...

Customs Failed To Quantify Duty, Can't Blame Traveller For Delay In Redeeming Gold: Delhi High Court

The Delhi High Court has held that a passenger cannot be faulted for failing to redeem confiscated gold within the stipulated period when the Customs Department itself failed to quantify and communicate the applicable duty, despite receiving his request within time.The Division Bench of Justices Anil Kshetarpal and Vimal Kumar Yadav accordingly directed the Customs authorities to communicate the duty payable on 12 gold bars weighing 1,200 grams and release the gold upon payment of the duty,...

Delhi HC Quashes ₹76.72L CENVAT Refund Demand, Says Authority Could Not Rely On CESTAT-Set Aside Order

The Delhi High Court has quashed a ₹76.72 lakh CENVAT refund recovery demand against an engineering products manufacturer, holding that the adjudicating authority could not rely on an order after it had been set aside by the CESTAT.The Division Bench of Justices Anil Kshetarpal and Shail Jain observed that the Additional Commissioner, while confirming the demand, failed to take into account the CESTAT's subsequent order expressly upholding the petitioner's entitlement to refund of ₹76.72 lakh...

Delhi High Court Asks RBI To Mediate PayU's Dispute Over ₹6.88 Crore IRF Deductions

On 14 September, the Delhi High Court directed the Reserve Bank of India (RBI) to facilitate mediation between PayU Payments Private Limited and other stakeholders in a dispute concerning deductions from PayU's settlement accounts towards Interchange Reimbursement Fee (IRF) claims.Justice Subramonium Prasad also ordered the RBI to depute a senior officer to mediate between the parties and attempt to resolve the dispute within 30 days. The Bench held: “In the opinion of this Court,...

25-Year Pendency Cannot Allow Writ Court To Decide Disputed Facts In Tax Case: Rajasthan High Court

The Rajasthan High Court on 21 August held that the mere pendency of a tax dispute for 25 years does not permit the Court to decide disputed questions of fact in writ proceedings on the basis of pleadings and affidavits, as this would bypass the fact-finding process under the Income Tax Act. A Division Bench of Justices Arun Monga and Ashutosh Kumar declined to interfere with reassessment notices issued to Mahesh Kumar Gupta for Assessment Years 1995-96 to 1999-2000, holding that the disputed...

Andhra Pradesh High Court Quashes ₹6.23 Lakh Tax Demand Over Expired DTVSV Payment Deadline

The Andhra Pradesh High Court on 24 August held that the Income Tax Department cannot require a Direct Tax Vivad Se Vishwas Scheme (DTVSV) declarant to meet a payment deadline that had expired before the Department issued the revised payment certificate. A Division Bench comprising Justices Ninala Jayasurya and T.C.D. Sekhar set aside a Rs. 6,23,708 demand raised against N. Venu Gopal Reddy, a works contractor, and directed the Income Tax authorities to issue the final order under the scheme....

Rajasthan High Court Rejects Challenge To GST Provision Requiring Supplier Tax Payment For ITC

The Rajasthan High Court has upheld the constitutional validity of Section 16(2)(c) of the Central Goods and Services Tax Act, 2017, holding that actual payment of tax by the supplier is a valid condition for availing Input Tax Credit (ITC). A Division Bench of Justices Arun Monga and Ashutosh Kumar dismissed Sumetco Alloys Private Limited's challenge to Section 16(2)(c) as well as its challenge to a Rs. 56.44 crore GST demand for the financial years 2020-21 to 2023-24. The judges observed: ...