PNB fraud due to failure of internal control, says RBI.:      Celeb jeweller Nirav Modi named in PNB’s $1.77-b fraud. Bank suspends 10 officers, lodges complaint with CBI; more banks may be hit. :      Bombay High Court in a hearing on 6th Feb, 2018 says GST regime is not user friendly. :      GST Network Chairman Ajay Bhushan return simplification panel to meet industry this week to simplify the return filing process.:    Finance Secretary Hasmukh Adhia said the Government stares at a Rs 50,000 crore GST revenue shortfall in the current fiscal. :    E-Way Bill which was to be rolled-out on 1st Feb is deferred to month-end due to technical glitches.:      TN raked in 22% more GST at Rs 23,318 crore between Jul-Dec 2017, against Rs 19,018 crore under VAT in the corresponding period the previous year. :      MoS,Corp Affairs PP Chaudhary says in Rajya Sabha that Govt has detected GST evasion of Rs 5.70 Crores in 16 cases during Jul-Nov 2017 - 6th Feb 2018. :      FM, Arun Jaitley says that States are not in favour of bringing the petroleum products under GST. :      The Finance Secretary, Hasmukh Adhia says out of 7 lakh tax payers who opted for composition scheme 5 lakhs had a turnover less than Rs 5 lakhs pa, though the exemption limit is upto Rs 20 lakhs. :     

Recent  Tax Judgements from Courts

 

 

 

The Supreme Court of India

16th Sept : J.K. Lakshmi Cement Ltd. Vs CTO, Pali

7th Sept : Girish Raghunath Mehta Vs Insp of Customs & Anr

6th Sept : Commr of Commercial Tax, U.P. Vs A.R. Thermosets (Pvt.) Ltd.

5th Sept : Larsen & Toubro Ltd Vs Addl DC Commrcl Taxes & Anr

2nd Sept : Hindustan Lever Vs St of Karnataka

29th Aug : CCE, Madras Vs M/s Addison & Co. Ltd.

8th Aug : CCE Vs Gujarat Ambuja Exports Ltd.

30th June : Dy Commr of Commrcl Taxes (Vigilance) Vs Hindustan Lever Ltd.

3rd June :Sarla Performance Fibers Limited Etc. Vs CCE, Surat-II

 

Kerala High Court

5th Sept : Roche Diagnostics I Pvt. Ltd. Vs The CTO, (ENQUIRY) & Ors

 

 

Calcutta High Court

15th Sept : Mishra & Mishra Agencies & Anr. Vs UOI & Anr.

15th Sept : LGW Limited Vs. Union of India & Ors.

 

 

Bombay High Court 

16th Sept : Under Water Services Company Ltd Vs. UOI

23rd August : Commr of Sales Tax, Maharashtra v/s Bajaj Tempo Ltd.

16th August : Commr of Sales Tax Vs Bhima Sahakari Sakhar Karkhana Ltd.

18th July : D. P. Jain & Co Vs Commr of CEx& ST Nagpur

 

Allahabad High Court

31st August : D.C. Food Pdcts Vs Commr Of Trade Tax, U.P. Lucknow

30th August : CCE, Meerut Vs Anand Tissues Ltd.

24th August : Prema Construction Vs ACCE& ST & Ors

 

 

Madras High Court

20th June, 2016 : CCEST, LTU, Chennai Vs. M/s.EID Parry (India) Ltd.

15th June 2016: M/s.Falcon Types Ltd. Vs Commissioner of Customs (Seaport-Import), Chennai.

 

 

 


 

11th May, 2016 : The Supreme Court of India : CIT, Mumbai Vs Amitabh Bachan

 

6th May, 2016

Delhi High Court : M.F. Rings & Bearing Races Ltd. & sevral others Vs CC & Anr.

Supreme Court  : CCE, Raigad Vs M/s. Ispat Metallics Industries Ltd. & Ors.

 

4th May, 2016

Allahabad High Court :  CCE Vs Vikram Cement & Anil Kumar Gupta

 

2nd May, 2016 : Allahabad High Court : M/s BHEL Vs Commr Of Commercial Tax

28th April, 2016 : Gujarat High Court : M/s Lubi Industries  Vs UOI & Anr.

27th April, 2016 : Gujarat High Court :  Dharmesh Devchand Pansuriya Vs UOI & 3 Ors

22nd April, 2016 : Supreme Court : Visvesvaraya Technological University Vs ACIT

13th April, 2016 : Gujarat High Court : Anil Ltd  Vs UOI & 3 Ors.

13th April, 2016 : Bombay High Court : Director of Income Tax (Exemptions) vs M/s Lala Lajpatrai Memorial Trust

11th April, 2016  : Gujarat High Court : CCEST,Surat I Vs M/s. Jai Bhawani Metal Ind

30th March, 2016 : The Supreme Court of India : Commr of Central Excise Vs Grasim Industries Ltd

30th March, 2016 : The Supreme Court of India : Commr of Central Excise Vs Grasim Industries Ltd

29th March, 2016 : The Supreme Court of India : Commissioner of Income Tax -4, Mumbai Vs  M/s Kotak Securities Ltd.

4th March, 2016 : The Supreme Court of India : The State of Punjab & Ors Vs Shreyans Industries Ltd. Etc

4th March, 2016 : Orissa High Court : The CCEST, Bhubaneswar-I Vs M/s. Ballarpur Industries Limited

3rd March, 2016  : Delhi High Court : Sanjay Swaroop Vs DGCEI- criminal bail application

26th February, 2016 : The Supreme Court of India :  M/s. Electro Optics (P) Ltd. Vs State of Tamil Nadu

25th February, 2016 : Bombay High Court : HDFC Bank Ltd. Mumbai v/s. The Deputy Commissioner of Income

23rd February, 2016 : The Supreme Court of India : Securities and Exchange Board of India Vs Kishore R. Ajmera

18th February, 2016The Supreme Court of India : Jagraon Exports Vs CIT Ludhiana : proceeds  from  sale  of scrap not to be included  in  total  turnover  for  deduction under Section 80HHC of IT Act.

15th February, 2016 : The Supreme Court of India : Air Customs Officer IGI New Delhi Vs Pramod Kumar Dhamija

16th February, 2016 : Bombay High Court : Johnson Matthey Chemicals India Pvt. Ltd. Vs The State of Maharashtra & Ors

12th February, 2016 : The Hon'ble Supreme Court of India in State of Jharkhand & Ors.  Vs Tata Steel Ltd. & Ors. rules in the tax deferment scheme "repayment schedule is 5 years from the expiry of eligibility period of deferment. The period of 5 years has to be so arranged that it does not go beyond 13 years from the date of deferment." Read the judgement

3rd February, 2016 : Delhi High Court : Brilliant Metal Pvt Ltd Vs Commissioner of Trade Taxes

25th  January, 2016 : Bombay High Court : JSW Steel Ltd & Ors Vs Union of India, DGFT & Ors

1st February, 2016 :Delhi High Court : Ingram Micro India Pvt Ltd Vs Commr of Trade Taxes & Anr : Revenue order set aside & tax authority directed to issue a C-Form. 

29th January, 2016Commr of Commercial Taxes Vs K.T.C. Automobiles: The Supreme Court upheld Kerala High Court dismissing the appeal filed by Commr of Commercial Taxes. The authorities had alleged 263 cars were wrongly shown as sold and registered (under MV Act) from the dealer's Mahe Branch (Puducherry) when in fact the sale transactions were concluded in Kozhikode, Kerala. It was alleged this approach was meant to escape higher tax liability in Kerala for a lower tax rate applicable in Puducherry.

20th January, 2016 : By an order dated 20th January, 2016, the Allahabad High Court in VN Dyers Vs CCE has allowed the petitioner appeal while determining that the letter of protest filed by the petitioner was valid in the context of time limitation to file refunds under section 11B. The Hon'ble Court held : "the letter of protest has to be read as a whole and not in portion.....The appellant requested for re-determination of the annual capacity and consequently, the duty payable, and contended that hence onwards the duty would be paid under protest till the annual capacity and duty is redetermined."

18th January, 2016 : In Ganapathy & Co, Bangalore Vs Commissioner of Income Tax, Supreme Court of India. Dismisses the petitioner's appeal against the High Court Judgement 

12th January, 2016 : Allahabad High Court in O.P. Engineering  Vs The Commissioner, Trade Tax, U.P. Lucknow answered the questions raised in revision in favour of the petitioner while disagreeing with the department's view that Aluminium Grills, Aluminium Diffusers and Dumpers are all parts of air conditioners. The department had chosen this classification and thereby assessed these items at the higher 15% rate  instead of 10%. Read the judgement

7th January, 2016 : Supreme Court of India : Commissioner of Income Tax XVIII Delhi Vs Bank of Scotia : The Apex Court dismisses Revenue appeal against ITAT order cancelling the penalty u/s 271-C saying "it is necessary to establish that there was contumacious conduct on the part of the assessee."

7th January, 2016 : Kerala High Court in  George Mathew Vs Superintendent of Central Excise grants conditional bail inter alia requiring the amount demanded in the notice to be paid as a condition for bail.

5th January, 2016 : Madhya Pradesh High Court in Commissioner of Income Tax I  Vs Central Tobacco Products Pvt. Ltd. hasdisposedthe appeal based on the CBDT circular which prescribes a minimum limit for Revenue appeals.The FM and PM have been vocal about reducing needless litigation and  towards this CBDT has also prescribed an amount less than Rs. 20 lacs  below which no appeals will be filed. Yet the Revenue continues to file and pursue such appeals.  This appeal was not withdrawn by Revenue.

Skol Breweries wins petition before Punjab & Harayana High Court against the sales tax levy of purchase tax u/s 6   Act and disallowance of set-off u/s 15A of the HGST Act.  Court agrees with the petitioner that Tribunal appears to have wrongly relied on Thomas & Katyal Pvt. Ltd.  v. St of Haryana . Matter remanded. Skol Breweries Ltd. Vs State of Haryana.

22nd December, 2015 : Calcutta High Court set aside the Income Tax notice issued to the petitioner  in Maersk Line U.K. Ltd  Vs Dy Director of Income Tax saying : "this Court is of the view that the noticee is a person covered under the treaty and being an enterprise of the UK, the same has fiscal domicile in the UK where it is based. Its income from operation of ships in international traffic is not exigible to tax under domestic law. Consequently the impugned notices are set aside and the writ petitions disposed of."

23rd December, 2015 : Bombay High Court in Balkrishna Industries Ltd. Vs UOI and others dismissed the petition seeking exemption from safeguard duty (SD) on imports from China under advance authorizations as per Notification No.96/2009. The court also rejected the petitioner's claim that a TRU office memo indicated the Govt's view. The Court while rejecting this said, an office memo is merely an interpretation  no corrigendum or amendment was made to the Notification.

20th January, 2016 : By an order dated 20th January, 2016, the Allahabad High Court in VN Dyers Vs CCE has allowed the petitioner appeal while determining that the letter of protest filed by the petitioner was valid in the context of time limitation to file refunds under section 11B. The Hon'ble Court held : "the letter of protest has to be read as a whole and not in portion.....The appellant requested for re-determination of the annual capacity and consequently, the duty payable, and contended that hence onwards the duty would be paid under protest till the annual capacity and duty is redetermined."

14th December, 2015 : Delhi High Court in Citibank Vs Commissioner of Sales Tax has ruled that disposal of repossessed cars by CitiBank constitutes a "sale" and the banking activity in that context amounts to business under 2(c)(i) of DST. Consequently, Citibank would be a "dealer" within the meaning of Section 2 (e) read with Section 2 (c) of the Delhi Sales Tax Act. Based on this conclusion, the Hon'ble High Court upheld the Tribunal order that the sale of the repossessed cars by Citibank is "incidental or ancillary or in connection with the Appellant’s business".

12th January, 2016 : Allahabad High Court in O.P. Engineering  Vs The Commissioner, Trade Tax, U.P. Lucknow answered the questions raised in revision in favour of the petitioner while disagreeing with the department's view that Aluminium Grills, Aluminium Diffusers and Dumpers are all parts of air conditioners. The department had chosen this classification and thereby assessed these items at the higher 15% rate  instead of 10%. Read the judgement

7th January, 2016 : Supreme Court of India : Commissioner of Income Tax XVIII Delhi Vs Bank of Scotia : The Apex Court dismisses Revenue appeal against ITAT order cancelling the penalty u/s 271-C saying "it is necessary to establish that there was contumacious conduct on the part of the assessee."

7th January, 2016 : Kerala High Court in  George Mathew Vs Superintendent of Central Excise grants conditional bail inter alia requiring the amount demanded in the notice to be paid as a condition for bail.

5th January, 2016 : Madhya Pradesh High Court in Commissioner of Income Tax I  Vs Central Tobacco Products Pvt. Ltd. has disposed the appeal based on the CBDT circular which prescribes a minimum limit for Revenue appeals.The FM and PM have been vocal about reducing needless litigation and  towards this CBDT has also prescribed an amount less than Rs. 20 lacs  below which no appeals will be filed. Yet the Revenue continues to file and pursue such appeals.  This appeal was not withdrawn by Revenue.

 

Mumbai Customs Revives Yacht Club

The Bombay Customs Yacht Club which was set up in 1980 by the then Customs Collector Shri J Dutta was revived after 10 years.

On 26th Jan, 2018, Republic Day this year, the Customs Cup Regatta 2018 - Mumbai Harbour Race  was held. There were a total of 42 yachts and 150 participants including customs officers participating in the event.

This brings up glorious memories when an Indian Customs Officer, Mr Gulshan Rai  set sail and circumnavigated the earth. He later went on to receive the Arjuna and Padma Shri Awards.

 

 

Central & Integrated Tax Notifications

Central Tax

2017

2018

Central Tax Rate

2017

2018

Integrated Tax

2017

2018

Integrated Tax Rate

2017

2018

 

Seven questions to know if you 

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correctly?

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  • 24th Jan 2018 - Allahabad High Court directs Govt to extend the period to file GST Tran-1 as petitioner's application for transitional credit as  electronic GST system was not accepted on the last date i.e. 27.12.2017. As a result, the petitioner was likely to suffer loss of credit due to delay. - Continental India Private Limited  Vs UOI & Ors
  • 6th Feb 2018 - Bombay High Court passed an order against a petition filed on GST. The petitioner was unable to access GST Network. E-Way Bills are yet to come into force and without it,  petitioner was unable to move goods anywhere, paralysing its business and making it unable to comply. Though the petitioner was provided partial access after the petition was filed, they are still unable to file returns. Payment of tax was not possible without filing return. The matter was posted for another hearing on 16th February.
    The Court noted that similar grievances were raised before the Allahabad High court in Continental India Private Ltd. Vs UOI Writ (Tax) No. 67 of 2018. The Division Bench directed the respondents to reopen the portal and and entertain the application of the petitioner. - Abicor and Binzel Technoweld Pvt. Ltd. V/s UOI

Economic Survey of India 2017-18

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Brief update on CESTAT judgements passed during June 2016 to July 2016. Please note this update is not a summary of the cases but only leads on important issues decided. The links to the judgments are also provided for the full text.

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