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...

GST Notice To Deceased Invalid, Legal Heirs Must Be Separately Notified: Calcutta High Court

The Calcutta High Court on 27 August held that GST authorities cannot issue a show cause notice or determine tax liability against a deceased person, and must instead issue the notice to the deceased's legal representatives in their own names. Justice Smita Das De made the observation while quashing a show cause notice issued under Section 74 of the Central Goods and Services Tax Act, 2017 (CGST Act) against Late Haradhan Pan, who died on 20 May 2021, along with the consequential...

Telangana High Court Sets Aside 20% Pre-Deposit Condition For Tax Demand Stay In VSAIPPL-SMC Case

The Telangana High Court on 20 August set aside orders directing VSAIPPL-SMC (JV) to pay 20% of its outstanding tax demand as a condition for staying recovery of the remaining demand, while allowing three writ petitions concerning Assessment Years 2022-23, 2023-24 and 2024-25. A Division Bench comprising Justices P. Sam Koshy and Vakiti Ramakrishna Reddy noted that authorities cannot mechanically impose a condition requiring payment of 20% of an outstanding tax demand for granting stay of...

Rajasthan High Court Upholds TDS Disallowance Against Hindustan Zinc On UK Know-How Payment

The Rajasthan High Court on 5 September dismissed Hindustan Zinc Limited's appeal against an Income Tax Appellate Tribunal order sustaining the disallowance of a tax deduction claimed by the company for payment made towards technical know-how to a UK-based company. A Division Bench comprising Justices Pushpendra Singh Bhati and Praveer Bhatnagar upheld the disallowance for Assessment Year 1994-95, holding that the payment made to Davy McKee (Stockton) Limited (DML) was subject to tax deduction...

Telangana High Court Quashes ₹52.39 Crore VAT Demand On TCS's Customised Software Services

The Telangana High Court has set aside a ₹52.39 crore Value Added Tax (VAT) demand imposed on Tata Consultancy Services (TCS).It held that transactions involving the development of custom-made or customised software did not constitute a sale where TCS did not acquire ownership or title over the software. The Court found that there was no transfer of property in goods.A Division Bench comprising Justice P. Sam Koshy and Justice Narsing Rao Nandikonda passed the common order. It allowed the lead...

Consolidated GST Notice For Multiple Years Valid, But Liability Must Be Decided Separately: Gauhati High Court

The Gauhati High Court has ruled that while the GST department can issue a consolidated show-cause notice covering multiple financial years, it must determine the tax liability separately for each year and apply the provision applicable to that period.“The authorities are therefore required to determine the liability separately for each financial year, apply the provision applicable to that year, and examine the question of limitation and the ingredients necessary for invoking the respective...

Customs Must Establish Foreign Origin Before Presuming Goods Were Smuggled: Allahabad High Court

The Allahabad High Court at Lucknow has recently held that the burden of proof under Section 123 of the Customs Act, 1962, does not shift to the person from whom goods are seized unless the customs authorities first establish that the goods are of foreign origin and were smuggled into India. it held that where nothing on the record connects the goods to smuggling, the presumption cannot be pressed into service at all. The Court applied the rule to silver bullion and to Indian...

Is Fraud Necessary To Initiate Stamp Duty Undervaluation Proceedings? Supreme Court Refers Issue To Larger Bench

The Supreme Court on Monday referred to a larger Bench the question of whether stamp duty authorities must have material showing fraudulent intention before questioning the value of a property under Section 47-A of the Indian Stamp Act.A Bench of Justice Dipankar Datta and Justice Sheel Nagu expressed serious doubts about the three-Judge Bench ruling in V.N. Devadoss v. Chief Revenue Control Officer-cum-Inspector of Stamps.That judgment held that the power under Section 47-A is based on “wilful...

Renting Vacant Land Not Service Taxable Before July 1, 2010: CESTAT Delhi Denies Extended Limitation

The CESTAT Delhi has ruled that renting of vacant land was not taxable for service tax before July 1, 2010. It also held that one-time premium or salami received under a lease of immovable property was liable to service tax, but the extended limitation period could not be invoked against Madhya Pradesh Audyogik Kendra Vikas Nigam Limited without an intent to evade tax or positive evidence of suppression.The tribunal observed, “the immovable property including the vacant land is leviable to...

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....

Bombay High Court Sets Aside ₹21.93 Crore Stamp Duty Demand Against Wadhwa Constructions

The Bombay High Court on 7 September set aside a stamp duty demand of about Rs. 21.93 crore against Wadhwa Constructions & Infrastructure Private Limited in connection with a Joint Development Agreement, holding that the valuation had wrongly taken into account development rights and benefits that did not exist on the date of the agreement. A Single-Judge Bench of Justice Amit Borkar set aside the valuation adopted by the Collector of Stamps and the appellate authority. He observed that...

Bombay High Court Dismisses Revenue Appeal Against Millennium Beer Industries Over ₹21.92 Cr Service Tax

The Bombay High Court on 3 September dismissed the Revenue's appeal against the setting aside of a Rs. 21.92 crore demand against Millennium Beer Industries Ltd., holding that the extended period of limitation cannot be invoked to raise a service tax demand without establishing fraud, collusion or suppression of facts with an intent to evade tax, and A Division Bench of Justices Nitin B. Suryawanshi and Abasaheb D. Shinde also held that the Revenue cannot take different stands in substantially...