Tax Judgments Of 2023: A Legal News Roundup - 2024-01-06

The compendium of tax-related verdicts and rulings issued by India's various High Courts in 2023 is called "Tax Judgments of High Courts: Annual Case Digest 2023 (Part 3). Taxes, such as income tax, GST, excise duty, service tax, customs duty, and others, are among the legal problems and observations of High Courts that are covered in these stories. Here are some of the key points that were made in the news stories: 1. Kerala High Court: In response to a writ petition, the court instructed the Secretary to take notice of the petitioner's objections to the property tax assessment and to issue a proper assessment order with a notice to the petitioner. The petitioner can contest the demands if any, in accordance with the provisions of the Kerala Panchayat Raj Act, 1994. 2. Kerala High Court: The court ruled that there is a need for land to be re-assessed for the basic tax rate after a change in the nature of the land according to the Kerala Land Utilization Order, 1967. 3. Delhi High Court: An order under Section 148A(d) of the Income Tax Act and an assessment notice issued against a non-existent partnership firm were quashed by a division bench of the court as they were against a non-existent entity and cannot be complied with. 4. Jharkhand High Court: The court upheld the deletion of income tax addition on Business expenses under "Provision for Warranty Expenses." The court found that the assessee had not violated any provisions of the Income Tax Act and its Rules and dismissed the revenue's appeal. 5. Calcutta High Court: An assessment order passed without considering the objection to the show cause notice was quashed, and the court directed a proper order to be passed after granting an opportunity for hearing within eight weeks from the date of communication of the order. 6. Madras High Court: The court stayed the condition of furnishing a bank guarantee on remission of 50% of disputed tax and directed that a balance of the disputed tax be stayed until the disposal of the appeal by the first appellate authority. 7. Madras High Court: A notice issued to discharge tax liability on filing an additional rectification petition was quashed, and the court clarified that the additional rectification petition and the rectification petition dated 16.03.2023 and 12.04.2023 respectively can be heard without expecting any notice in this regard. 8. Gujarat High Court: The court quashed the Show Cause Notice (SCN) wherein the cancellation of Goods and Service Tax (GST) registration without stating the reason is cryptic. The court granted liberty to the respondent authorities to issue a fresh notice with particulars of reasons incorporated with details and thereafter to provide a reasonable opportunity of hearing to the petitioner and to pass appropriate order by the law. 9. Gauhati High Court: The court stayed the recovery of royalty due till the next returnable dates as an interim measure and directed that no coercive action shall be initiated against the petitioner for the recovery of the said amount of Rs.3,00,24,540/- till the next returnable date. 10. Madras High Court: The court held that the appellate authority should consider the Goods and Service Tax (GST) appeal with reference to the statutory compliance only without referring to the limitation. 11. Karnataka High Court: The court dismissed the Writ Petition seeking a declaration that section 16(4) of the Central Goods and Service Tax (CGST/SGST) Act 2017 r/w Rule 61 of Karnataka Goods and Service Tax (KGST) Rules is ultra vires constitution. 12. Delhi High Court: The court granted interim bail to Sameer Mahandru under the Prevention of Money Laundering Act (PMLA), 2002 in the Delhi Excise Policy Case. 13. Delhi High Court: The court ruled that the power to grant bail on medical grounds under the first proviso to Section 45(1) of the Prevention of Money Laundering Act, 2002 (PMLA) is discretionary and directed the Director of All India Institute of Medical Sciences (AIIMS) to evaluate the medical condition of the petitioner. 14. Kerala High Court: The court observed that the appeal Provision of the Central Goods and Services Tax Act, 2017 (CGST) is an inbuilt mechanism and impliedly excludes the application of Limitation Act, 1963. 15. Calcutta High Court: In a bogus case of E -Way Bill, the court directed the release of the tea consignment since it was not connected with the smuggled poppy seeds. 16. Bombay High Court: A liquor license cancellation by the Excise Commissioner was upheld by a Single Bench of the court. The bench stated that the appellate authority was right to observe that the petitioner is trying to mix the issues with regard to the Deed of Partnership with that of the transfer of license. 17. Delhi High Court: Bail was granted to Preeti Chandra in the Unitech Case, and the court observed that sub-classifying women into different categories to apply twin conditions under the Prevention of Money Laundering Act, 2002 (PMLA) is arbitrary. 18. Calcutta High Court: An assessment order passed during the pendency of a writ petition was dismissed, considering the non-participation of the petitioners in the income tax proceedings. 19. Bombay High Court: The court observed that mere filing of an application under Section 7(1) of the Insolvency and Bankruptcy Code, 2016 (IBC) is not enough to invoke the bar of Section 238 of the Insolvency and Bankruptcy Code and consequently it would not bar the to file an application under Section 11 (6) of the Arbitration and Conciliation Act, 1996 for the appointment of Arbitrator. 20. Calcutta High Court: An order of the Single Bench of the Calcutta High Court directing to remit 20% of disputed tax in contravention of Section 107(7) of the Central Goods and Services Tax (CGST) Act, 2017 was quashed, and the appellate authority was directed to consider the appeal on merits and in accordance with the law.