Taxpayer Can Avail Settlement Scheme After Expiry On Payment Of Admitted Tax: Patna High Court

The Patna High Court, on 6 November, held that a taxpayer can avail the benefit of the Bihar Settlement of Taxation Disputes Act, 2024, even after the settlement scheme expires, if the outstanding admitted tax is paid within the time granted by the Court. A Division Bench of Justices Anil Kumar Sinha and Vikash Kumar disposed of five petitions filed by Amara Raja Batteries Ltd., challenging the rejection of its settlement applications for failing to deposit the amount demanded under the scheme....

Rajasthan High Court Rejects Honda's Challenge To Motor Vehicle Tax On Factory-Stocked Vehicles

On 6 November, the Rajasthan High Court dismissed a batch of writ petitions, including one filed by Honda Motorcycle and Scooter India Pvt. Ltd., challenging the validity of provisions of the Rajasthan Motor Vehicles Taxation Act, 1951, the Motor Vehicles Act, 1988 and the Central Motor Vehicles Rules, 1989. A Bench of Justices Arun Monga and Ashutosh Kumar held that possession of motor vehicles by manufacturers at their factory premises in the course of business attracts motor vehicle tax...

Uttarakhand HC Strikes Down Cess On Outside-State Produce Brought Into Market Areas For Purposes Other Than Sale

The Uttarakhand High Court has recently struck down the levy of development cess on agricultural produce brought from outside the State for manufacturing or processing, where no sale or purchase takes place within the market area. A Division Bench of Chief Justice Manoj Kumar Gupta and Justice Subhash Upadhyay held that the first proviso to Section 27(c)(v) of the Uttarakhand Agricultural Produce Marketing (Development and Regulation) Act, 2011, was beyond the legislative competence of the...

Property Cannot Be Auctioned To Recover Property Tax: Madhya Pradesh HC Quashes Municipal Corporation's Notice

The Madhya Pradesh High Court has quashed a demand notice issued by the Khandwa Municipal Corporation threatening to auction a landlord's property for recovery of property tax, despite the Corporation being aware of an earlier High Court ruling on recovery of dues from rented premises.The earlier ruling had held that the Corporation could not lock rented premises to recover property tax. It also clarified that recovery from a tenant could be effected through attachment of rent due in respect of...

Jharkhand High Court Upholds Businessman's Conviction For Deliberate Tax Evasion Through Goods Misdescription

The Jharkhand High Court has upheld the conviction of a firm partner for deliberately misdescribing goods to evade commercial tax under the Bihar Finance Act.Justice Pradeep Kumar Srivastava found that the discrepancies in the description of goods were deliberate and intended to evade tax. The court observed:"Perusal of the material exhibits reveals that there are some discrepancies with regard to goods which are clearly apparent and these discrepancies with regard to goods has been...

Rise In Property Value Alone Cannot Justify Fresh Stamp Duty On Subsequent Deeemed Conveyance: Bombay High Court

The Bombay High Court on Wednesday ruled that stamp authorities cannot demand fresh stamp duty on a subsequent conveyance merely because a property's market value has increased. This applies when stamp duty and penalty have already been paid on an earlier Agreement for Sale treated as a deemed conveyance. Justice Amit Borkar quashed an additional stamp duty demand of ₹9.27 lakh against Thakkar Investment & Finance Company. The court held that the subsequent conveyance merely completed the...

Delhi High Court Asks NDMC To Explain ₹2.51 Crore Additional Property Tax Demand On Khan Market Shop

The Delhi High Court has directed the New Delhi Municipal Council (NDMC) to provide a detailed, period-wise calculation of an additional property tax demand of around ₹2.51 crore raised against a shop in Delhi's Khan Market.The Division Bench of Justices Anil Kshetarpal and Bharat Parashar directed NDMC to furnish the computation within 15 days, along with legible copies of the assessment orders, notices and other documents relied upon to raise the demand.The Court was hearing a writ petition...

Karnataka HC Bars Coercive Action Against Broadcasters Including Zee, JioStar Challenging 2% Cine Cess

The Karnataka High Court on Wednesday sought the State Government's response to a challenge by television broadcasters to the 2% cess imposed on TV channels operating in Karnataka. The court also directed that no coercive action be taken against the broadcasters in connection with the levy.The petition has been filed by the Indian Broadcasting and Digital Foundation (IBDF), along with broadcasters including JioStar India and Zee Entertainment Enterprises, challenging the Karnataka Cine and...

Delhi High Court Upholds ₹197 Crore Electricity Tax On NTPC's Auxiliary Consumption At Badarpur Plant

The Delhi High Court has dismissed a plea filed by NTPC Ltd challenging a municipal electricity tax demand of around ₹197.15 crore on electricity consumed to operate its Badarpur Thermal Power Station.The Division Bench of Justices Anil Kshetarpal and Bharat Parashar held that electricity used for auxiliary purposes at a power plant constitutes taxable consumption and cannot be treated merely as part of the process of generating electricity.It held that the municipal tax could be levied on...

Dyeing, Bleaching Fabrics On Job-Work Basis Not Liable To Textile Cess Under Textiles Committee Act: Supreme Court

The Supreme Court on Monday (October 26) ruled that dyeing and bleaching fabrics received from handloom and powerloom units on a job-work basis do not amount to manufacture for the purpose of levying textile cess under the Textiles Committee Act, 1963. A bench of Justice S.V.N. Bhatti and Justice N.V. Anjaria observed that the word 'manufacture' is not defined under the Act and cannot be interpreted by borrowing its definition from another law. The court observed, “As already stated above, the...

Stamp Duty Refund Cannot Be Denied Merely Because Original Receipt Is Lost: Bombay High Court

The Bombay High Court has held that a stamp duty refund claim cannot be rejected solely because the original e-Secured Bank and Treasury Receipt (ESBTR) has been lost, if the payment, loss and non-use of the receipt can be established through official records and other reliable evidence. Justice Amit Borkar observed that the State cannot retain stamp duty that is otherwise refundable under the law merely because the original receipt is unavailable. The Court observed, "At the same time,...

Central Sales Tax | Form H Must Be Filed By Time Of Assessment To Claim Tax Benefit: Andhra Pradesh High Court

The Andhra Pradesh High Court has recently held that dealers must submit Form H declarations by the time of assessment by the first assessing authority to claim a tax benefit on the last sale of goods preceding an export.The Full Bench clarified that the extended filing period available for Forms C and F under the Central Sales Tax (Registration and Turnover) Rules, 1957, does not apply to Form H declarations.A three-judge Bench of Justice Battu Devanand, Justice Maheswara Rao Kuncheam and...