GST Appeal Limitation To Run From Rectification Order Where Application Filed In Time: Gujarat High Court

The Gujarat High Court has ruled that a GST appeal cannot be rejected as time-barred by calculating limitation solely from the original adjudication order when the assessee had filed a rectification application within the prescribed period and the application was subsequently decided by the adjudicating authority.A Division Bench comprising Justice A.S. Supehia and Justice Vaibhavi D. Nanavati observed, “It would not be permissible to reject the appeal on the ground of limitation by computing...

Gujarat High Court Dismisses Revenue's ₹3.44 Cr Service Tax Appeal Over Fees Collected From Gir Forest Visitors

The Gujarat High Court has dismissed a Revenue appeal against the Deputy Conservator of Forests in a ₹3.44-crore service tax dispute over permit fees, entry fees, camera fees, and other charges collected from visitors to Gir Forest.The court relied on an earlier ruling that had held that such fees cannot be treated as consideration for taxable services, as the Deputy Conservator of Forests was discharging sovereign functions while collecting them in his official capacity.A Division Bench...

Sale Of Counterfeit Apple Accessories Cannot Be Prosecuted As Copyright Offence: Gujarat High Court Quashes FIR

The Gujarat High Court on Monday quashed a copyright infringement FIR against a shopkeeper accused of selling counterfeit Apple accessories, ruling that the allegations essentially concerned trademark misuse rather than copyright infringement.Justice P.M. Raval observed that the FIR and seizure memo did not identify any specific literary or artistic work allegedly copied from Apple. “The dispute essentially pertains to the alleged falsification of a registered trademark on commercial...

Gujarat High Court Quashes DVO Reference Made A Day Before Assessment Became Time-Barred

The Gujarat High Court has quashed an Assessing Officer's reference to the Departmental Valuation Officer (DVO) made just a day before the assessment was due to become time-barred. The court held that the reference was a colourable exercise aimed at extending the time available to complete the assessment.A bench comprising Justice A.S. Supehia and Justice Vaibhavi D. Nanavati found that the material relating to the company's assets and payments was already available with the Assessing Officer....

Gujarat High Court Quashes GST Demand Against Deceased Proprietor, Says Legal Heir Must Be Properly Heard

The Gujarat High Court has held that GST proceedings initiated against a deceased taxpayer cannot be sustained when the legal heir was neither made a noticee nor given a meaningful opportunity to respond, quashing proceedings initiated against a proprietor who had died several years earlier. A Division Bench comprising Justices A.S. Supehia and Vaibhavi D. Nanavati allowed a petition filed by Ushaben Kalpeshbhai Patni, the wife of the deceased proprietor, Kalpeshbhai Ramubhai Patni, and quashed...

Customs Cannot Indefinitely Detain Goods Through Panchnama To Reset Limitation: Gujarat High Court

The Gujarat High Court on 25 August held that Customs authorities cannot use a Panchnama to indefinitely restrain goods and later issue a formal seizure order to bypass the time limits under Section 110 of the Customs Act, 1962, ruling that the limitation period starts from the date of detention if the mandatory order under the provision was not passed. A Division Bench comprising Justices A.S. Supehia and Vaibhavi D. Nanavati held that the vehicle belonging to petitioner Pranavbhai Ambalal...

Gujarat High Court Grants ₹1 Crore Tax Refund To Charitable Trust After Exemption Was Omitted

The Gujarat High Court on 25 August quashed the rejection of the revision application filed by Sheth Shree Karshandas Halu Dharamshala Jamnagar and held that the public charitable trust was entitled to exemption under Section 11(1A) of the Income-tax Act.A Division Bench comprising Justices A.S. Supehia and Vaibhavi D. Nanavati held that a bona fide omission to claim a statutory tax benefit in the original return can be corrected through revisional proceedings under Section 264 of the Act. The...

AO Can't Reopen Scrutinised Issue On Mere Change Of Opinion Without Tangible Material: Gujarat High Court

The Gujarat High Court on 19 August held that an Assessing Officer (AO) cannot reopen an assessment on an issue already specifically examined during the original scrutiny merely on a change of opinion, unless fresh tangible material shows that income had escaped assessment because of suppression of material facts. A Division Bench of Justices A.S. Supehia and Vaibhavi D. Nanavati allowed a writ petition filed by Loonchand Dhanraj HUF and quashed the reassessment proceedings initiated through a...

Gujarat High Court Quashes GST Orders Based On AI-Generated Non-Existent Case Laws

The Gujarat High Court on 20 August quashed GST cancellation and appellate proceedings against Faiz Enterprise after finding that the State Tax Officer had relied exclusively on AI-generated case laws, including non-existent and irrelevant authorities. A Division Bench comprising Justices A.S. Supehia and Vaibhavi D. Nanavati held that adjudication proceedings cannot be sustained where an authority relies on unverified AI-generated case laws instead of independently applying its mind to the...

Gujarat High Court Quashes Reassessment Against Adani Exports For AY 2010-11

The Gujarat High Court has quashed reassessment proceedings against Adani Exports for AY 2010-11. It found that the Assessing Officer had relied on an unamended partnership deed while reopening the assessment, despite the assessee having specifically informed him that the deed had been amended to remove the obligation to pay interest on partners' capital.A Division Bench comprising Justice A.S. Supehia and Justice Vaibhavi D. Nanavati held that the amended partnership deed expressly provided...

Merely Because No Income Was Booked, Business Expenses Cannot Be Disallowed: Gujarat High Court

The Gujarat High Court has recently ruled that expenses incurred on business projects cannot be disallowed merely because no income was booked against them for the relevant year. The court noted that if the Revenue's case was that no income had been booked, it had to determine whether the assessee had failed to account for that income or had not treated a particular receipt as income.“Merely because no income has been booked against the same, it would not result into disallowance of such...

Gujarat High Court Rejects Bus Owner's Plea Over ₹53 Lakh Vehicle Tax Demand For Lack Of Non-Use Certificate

The Gujarat High Court has rejected a bus owner's plea against a ₹53.20 lakh vehicle tax demand, holding that the statutory presumption of use in Gujarat applied because he had not obtained a certificate declaring the bus as unused.A Division Bench comprising Justice A.S. Supehia and Justice Vaibhavi D. Nanavati held that Section 3(2) of the Gujarat Motor Vehicles Tax Act, 1958, creates a deeming fiction unless the prescribed authority certifies that a vehicle was not used or kept for use in the...