NOIDA Authorities Deposited Party's Tax Under Wrong Head: Allahabad HC Directs Compensation To Assessee For Penalty Imposed U/S 73 Of GST Act

Recently, the Allahabad High Court has directed the New Okhla Industrial Development Authority (NOIDA) to compensate the assesee Rs. Rs.19,22,778/- which was imposed on the assesee as tax and penalty in proceedings under Section 73 of the Goods and Service Tax Act, 2017. Petitioner rented out his property in Gautam Budh Nagar(Noida). The rent received from the property was taxable under the GST Act. Petitioner duly deposited the one-time lease rent of Rs. 97,18,500/- and the tax of...

Delhi HC Flags Rise In GST Litigation, Asks Department To Depute Officials To Enable Expeditious Disposal

The Delhi High Court has flagged the rise in number of GST related cases being filed before it and to ensure expeditious disposal of cases, particularly those arising out of procedural issues, has asked the Department to depute at least two officials from its litigation section.A division bench of Justices Prathiba M. Singh and Rajneesh Kumar Gupta said these officials can coordinate with the various Commissionerates of the GST department and give instructions to the Department's counsels, in an...

Tax Quarterly Digest: January - March, 2025

SUPREME COURTMotor Accident Claims - Tax Returns Can Be Accepted To Determine Income Only If They Are Appropriately Produced : Supreme CourtCase name: New India Assurance Co. Ltd. V. Sonigra Juhi Uttamchand.Case no.: SLP (C) No. 30491 of 2018The Supreme Court, recently (on January 02), while deciding a motor accident compensation claim case, observed that monthly income could be fixed after taking into account the tax returns. However, the details of tax payment must be properly brought into...

No Jurisdiction To Entertain Appeal Over Goods Imported Or Exported As Domestic Baggage Under Proviso To S.129A(1) Of Customs Act: CESTAT Chennai

The Chennai Customs, Excise and Service Tax Appellate Tribunal (CESTAT) has recently clarified that once the luggage/bag which accompanies an individual arriving from a domestic airport in India, during the aircrafts domestic run, is intercepted by the officers, there cannot be a presumption that it is covered under the Customs Act, 1962 and to which the Baggage Rules, 2016 can automatically apply. The CESTAT therefore held that, “'baggage' under the Baggage Rules 2016, includes...

Delhi VAT | No Interest On Refund For Period Of Delay Attributable To Dealer: High Court

The Delhi High Court has held that if the delay in granting refund to a dealer under the Delhi Value Added Tax Act, 2004 is attributable to the dealer itself, such period of delay shall be excluded for the purposes of awarding interest on refund.Section 38(3)(a)(ii) of DVAT Act stipulates a period of two months for refund of excess tax, penalty, etc., if the period for refund is a quarter.A division bench of Justices Prathiba M. Singh and Rajneesh Kumar Gupta cited Explanation to Section 42(1)...

Jharkhand High Court Orders ₹1.23 Crore GST Refund To Tata Steel Over ITC On Compensation Cess

The Jharkhand High Court has ordered Rs. 1,23,22,617/- GST refund to Tata Steel, whose largest steel plant is situated in State's Jamshedpur city.The amount represented Input Tax Credit (ITC) on Compensation Cess paid by the company under Section 8(2) of the Goods and Service Tax (Compensation to States) Act, 2017 for purchasing its key raw material- Coal.Finding that the refund was denied by the State on 'extraneous grounds', the division bench of Chief Justice MS Ramachandra Rao and Justice...

Natural Gas Can Be Equated With Petroleum Gas, To Be Taxed Under Entry 23 Of 6th Schedule Of APGST Act: Telangana High Court

In a case pertaining to the taxation of Natural Gas, the Telangana High Court has held that Natural Gas shall fall under Entry 23 of 6th Schedule, under the category of petroleum gases, and not Entry 118. The different entries change the percentage of tax levied. Justice Narsing Rao Nandikonda held that “This bench is of the firm opinion that the findings given by the Tribunal holding that the natural gas sold by the petitioner falls under entry 23 of 6th schedule is proper” The...

Tax Weekly Round-Up: March 31 - April 06, 2025

HIGH COURTSDelhi High CourtDelhi High Court Grants Relief To Lufthansa Airlines, Sets Aside Revenue's Order Denying 'Nil' TDS CertificateCase title: Lufthansa Cargo AG v. Assistant Commissioner Of Income Tax & Ors.Case no.: W.P.(C) 11376/2024In a relief to German cargo airline Lufthansa, the Delhi High Court set aside the Revenue's order denying nil TDS certificate to the company for the financial year 2024-25.“Where the petitioner has been granted certificate at nil withholding tax for...

Income Tax Act | Rajasthan HC Dismisses Challenge Against Proceedings Initiated U/S 153C Based On WhatsApp Chats, Says Chats Had Been Corroborated

Rajasthan High Court denied interference with initiation of proceedings under Section 153C of the Income Tax Act, 1961 (“the Act”) that were alleged to be initiated merely based on certain WhatsApp Chats, observing that the information in the chats were completely corroborated by specific transactions and hence, the said chat could be considered to be falling under the definition of “other documents” under Section 153C.The division bench of Justice Pushpendra Singh Bhati and Justice Chandra...

CBIC Clarifies Issues In Trade & Industry Regarding Eligibility Of Cases For Benefit U/S 128A Of CGST Act

The Central Board of Indirect Taxes and Customs (CBIC) on 27th March 2025 vide Circular No. 248/05/2025-GST has given clarification on various issues related to availment of benefit of Section 128A of the CGST Act, 2017. Based on the recommendations of the GST Council made in its 53rd and 54th meetings, a new section 128A was inserted in the CGST Act, 2017 and Rule 164 has been inserted in the CGST Rules, 2017 w.e.f. 1st November 2024 to provide for waiver of interest or penalty or...

Pune Municipal Corporation To Issue Property Tax Bills From 1st May; Says Verification Of 40% Concession Claims Causing Delay

Pune Property Tax Bills for the financial year 2025-2026 has been delayed to 1st May due to the ongoing verification of PT-3 applications which has been submitted by the homeowners seeking a 40% concession on residential properties. As per the state government regulations the property owners who reside in their own homes are entitled to a 40% concession on the property and to claim this benefit owners had to submit PT-3 forms. Pune Municipal Corporation (PMC) has received around...

Works Contract For Track Doubling & Infrastructure Under RVNL Is Liable To 12% GST: Madras High Court

The Madras High Court stated that the works contract for track doubling and infrastructure under RVNL is liable to 12% GST. Justice Mohammed Shaffiq stated that “it may be relevant to keep in mind that while exemption notifications must be strictly construed, it certainly would not mean that the scope of the exemption notification can be curtailed by importing conditions or giving an artificially restrictive meaning to the words in an exemption notification.” In this case, the...