Tax Annual Digest 2024: Part III

Chewing Tobacco Packed In High-Density Polyethylene Bags Are 'Wholesale Package'; Cannot Be Taxed As Retail Product Under Excise Act : Supreme CourtThe Supreme Court recently held that pouches of chewing tobacco packed in High-Density Polyethylene (HDPE) bags would be considered a 'wholesale package' and could not be considered for imposing excise duty as per the provisions relating to retail sale price in the Central Excise Act, 1944. The bench of Justices AS Oka and Pankaj Mithal upheld the...

Foreign Nationals Coming To India Not Required To Declare Personal Gold Jewellery To Customs: Delhi High Court

The Delhi High Court has held that foreign nationals coming to India need not declare to the Customs Department their gold jewellery which they are carrying for bonafide personal use.A division bench of Justices Prathiba M. Singh and Dharmesh Sharma further held that the Customs Department must make a distinction between 'jewellery' and 'personal jewellery', while seizing items for violation of the Baggage Rules, 2016 which are framed under the Customs Act, 1962.Thus in the facts and...

Co-Owner Of Property Not Receiving Income From It Not Liable To Pay Tax On Income From Such Property: Delhi High Court

The Delhi High Court has held that where a property is held jointly but only one co-owner reaps the benefit of income from such property, the other co-owner cannot be held liable to pay tax merely by virtue of co-ownership.A division bench of Justices Yashwant Varma and Harish Vaidyanathan Shankar observed, “the [Income Tax] Act fails to raise any presumption in law, of income necessarily arising or being liable to be assessed in the hands of an individual merely because it be a signatory to an...

S.12(10) Central Sale Tax (R&T) Rules | Can Certificate Of Export Be Filed After Completion Of Sales Tax Proceedings: AP HC Refers To Full Bench

A Division Bench of the Andhra Pradesh High Court has placed a matter regarding the interpretation of Rule 12(10) of the Central Sale Tax (R&T) Rules before the Chief Justice for reference to a Full Bench. The question that arose before the coordinate bench was whether akin to Form C (Form of Declaration) and F (Form of declaration to be issued by the transferee); Form H (Certificate of Export that relieves from payment of VAT/CST) can also be filed after the sales tax assessment...

Money In Bank Account Is 'Property', Liable For Provisional Attachment U/S 281B Of Income Tax Act: Kerala High Court

The Kerala High Court held that cash in bank account is a 'property' liable for provisional attachment under section 281B of the Income Tax Act. The Division Bench of Justices Sathish Ninan and Shoba Annamma Eapen observed that “mere fact that Bank account is not explicitly provided under Section 281B of the Income Tax Act, unlike the GST Act, 2017 which specifically mentions the same, cannot lead to the conclusion that Bank account is not liable to be attached under Section 281 B of...

Time Spent To Defend Reassessment Notice Issued Without Following Procedure Doesn't Extend Limitation For Revenue When Issuing Fresh Notice: Delhi HC

The Delhi High Court has held that if the Revenue issues a reassessment notice to an assessee under Section 148 of the Income Tax Act, 1961 without following due procedure, it cannot later issue fresh reassessment notice beyond the prescribed period, claiming that time spent on earlier litigation is to be excluded for the purposes of computing limitation.A division bench of Acting Chief Justice Vibhu Bakhru and Justice Tushar Rao Gedela observed, “Notice issued under Section 148 of the Act in...

Tax Weekly Round-Up: January 20 - January 26, 2025

SUPREME COURTSupreme Court Sets Aside Excise Duty Demand On Oil Marketing Companies For Inter-Supply Of Petroleum ProductsCase Title: Bharat Petroleum Corporation Ltd. versus Commissioner of Central Excise Nashik Commissionerate (and connected matters)Case no.: CIVIL APPEAL NO. 5642 OF 2009In a significant relief for Oil Marketing Companies (OMCs), the Supreme Court ruled (Jan. 20) that prices under the MoU for inter-supply of petroleum products, designed to ensure smooth nationwide...

Allahabad High Court Annual Tax Digest 2024

NOMINAL INDEX M/S Mgs Palace v. State Of U.P. And 4 Others 2024 LiveLaw (AB) 4 M/S. Hindustan Herbal Cosmetics vs. State Of U.P. And 2 Others 2024 LiveLaw (AB) 9 M/S Eastern Machine Bricks And Tiles Industries vs. State Of U.P. And Others 2024 LiveLaw (AB) 14 Akbar Ali Transport Services vs. State of U.P. and Another 2024 LiveLaw (AB) 25 M/S Roli Enterprises vs. State Of U.P. And 2 Others 2024 LiveLaw (AB) 31 The Commissioner, Commercial Tax vS. M/S Peethambra Granites...

Rates Charged By Power Distribution Companies, State Board For Electricity Can Be Considered To Determine Its Market: Delhi HC

The Delhi High Court has held that the rate at which power is supplied by the State Electricity Board (SEB) or the Power Distribution Companies is an appropriate metric for determining the market price of electricity.A division bench of Acting Chief Justice Vibhu Bakhru and Justice Swarana Kanta Sharma further held that the rate at which electricity is sold on the Indian Energy Exchange (IEX) platform is not a 'comparable' and should not be considered to determine the market value of the power...

Proceedings Initiated Against Income Tax Assessee After His Death Cannot Be Continued Against Legal Representative: Karnataka HC

The Karnataka High Court has said proceedings initiated against an Income Tax Assessee by issuing notice after his demise cannot be continued against his/her legal representative.A division bench of Justice Krishna S Dixit and Justice G Basavaraja said, “Had the proceedings been initiated against the Assessee during his lifetime, they could have continued against the legal representatives of the deceased Assessee.” The bench held thus while dismissing an appeal filed by the Income Tax officer...

Once Court Orders Release Of Bank Guarantee Furnished By Trader, Customs Dept Can't Hold Back Compliance And Direct Adjustment In Demand Order: Delhi HC

The Delhi High Court has made it clear that once a court of law directs the Customs Department to release the bank guarantee furnished by a trader, the Department cannot turn around and say that the amount will be adjusted towards the final demand order.A division bench of Justices Prathiba M. Singh and Dharmesh Sharma were dealing with the writ petition moved by a firm importing gold jewellery. The firm had availed the benefit of an exemption Notification, which it claimed granted the benefit...

Customs Dept Cannot Run Parallel Proceedings By Passing Penalty Order While Challenge To SCN Is Pending Before Court: Delhi HC

The Delhi High Court has set aside a final order of penalty passed by the Customs Department against a paper trader for alleged undervaluation of imported goods, stating that the same was passed during pendency of challenge to the show cause notice (SCN) issued to the trader.A division bench of Justices Prathiba M. Singh and Dharmesh Sharma observed, “passing of the impugned Order-in-Original while the impugned SCN was under challenge before this Court would amount to initiation of parallel...