Coconut Oil Classifiable As 'Edible Oil' For Central Excise Tariff; If Sold As Cosmetic, Taxable As 'Hair Oil' : Supreme Court

The Supreme Court has held that pure coconut oil, packaged and sold in small quantities ranging from 5 ml to 2 litres, would be classifiable as 'Edible oil' for the purposes of the Central Excise Tariff Act, 1985. It will be classifiable as "hair oil" if it is packaged and sold as a cosmetic."we are of the opinion that pure coconut oil sold in small quantities as 'edible oil' would be classifiable under Heading 1513 in Section III-Chapter 15 of the First Schedule to the Central Excise Tariff...

Delhi HC Directs Customs To Release Azerbaijan National's 'Personal' Gold Jewellery, Restrains Her From Selling It In India

Reinforcing its stand that the 'personal' gold jewellery of a foreign national coming to India is not subject to duty, the Delhi High Court ordered the Customs department to release an Azerbaijan national's belongings. A division bench of Justices Prathiba M. Singh and Amit Sharma however restrained the foreign national from selling the jewels in India. “Petitioner shall not indulge in sale of the said articles and shall carry back the same with her to the country of origin,” it...

S.144C IT Act | AO Not Having Info About Pending Objections Before Dispute Resolution Panel No Grounds To Sustain Final Assessment Order: Delhi HC

The Delhi High Court has made it clear that a Final Assessment order passed by the Income Tax Authorities under Section 143 of the Income Tax Act, 1961 is not sustainable, if it is passed in ignorance of pending objections before the Dispute Resolution Panel. A division bench of Acting Chief Justice Vibhu Bakhru and Justice Tushar Rao Gedela further clarified that lack of information with the Assessing Officer regarding pendency of the objections is of no consequence. It said, ...

SC's Judgement In Abhisar Buildwell Case Doesn't Permit Reopening Of Assessments Beyond Limitation Period U/S 149(1) Of IT Act: Delhi HC

The Delhi High Court has reiterated that the Supreme Court's judgment in Abhisar Buildwell does not permit reopening of assessments under Section 147/148 of the Income Tax Act, 1961 beyond the period stipulated under Section 149(1). Section 149 lays down the time limit for issuing a notice to a taxpayer under various provisions of the Income Tax Act. Normally, no notice of reopening of assessment can be issued after 3 years from the end of the Assessment Year. In Specific cases...

Tax Weekly Round-Up: December 09 - December 15, 2024

HIGH COURTS Allahabad HC [GST] Assesee Cannot File For Requisite Documents Once Plea Is Accepted And Notice Is Issued: Allahabad High Court Case Title: M/s Laxmi Telecom v. State of U.P. and Anr. Case no.: WRIT TAX No. - 2160 of 2 The Allahabad High Court has held that an assessee cannot file for the supply of requisite documents after the adjudicating body has accepted the plea placed by them and issued notice pursuant to it. The bench of Chief Justice Arun Bhansali and...

Delhi High Court Disallows Income Tax Dept From Adjusting Stayed Demand Towards Previous Refund Due To Nokia

Granting relief to telecom equipment company Nokia, the Delhi High Court disallowed the Income Tax Department from adjusting the outstanding demand raised against the company, towards a previous refund due to it. A division bench of Justices Vibhu Bakhru and Swarana Kanta Sharma pointed towards stay of recovery proceedings and said, “there is no allegation that the petitioner is alienating its assets so as to frustrate the recovery of any demand or that it would be unable to pay the...

Form 26B Under Income Tax Rules Not Required For Refund Once Form 5 Under 'Vivad Se Vishwas' Act Is Issued: Allahabad High Court

The Allahabad High Court has held that an assesse claiming refund of excess TDS (tax deduction at source) is not required to fill Form 26B under the Income Tax Rules once Form 5 of the Vivad Se Vishwas Act, 2020 has been issued to them. “A perusal of the Rules would reveal that Form 26B is required to filled up if the assessee claims refund paid under Chapter XXVII-B of the Act, 1961. The Stage of requirement of filling up the Form 26B was long over in the year 2008-09 itself and the...

Assessee Can Confine Settlement Under Direct Tax Vivad Se Vishwas Act To Disputes Which Were Subject Matter Of Its Appeal: Delhi HC

The Delhi High Court has held that under the Direct Tax Vivad Se Vishwas Act, 2020, an Assessee is entitled to confine the settlement of disputes which were subject matter of its appeal, and exclude the disputes which were subject matter of the Revenue's appeal for the same assessment year. It thus allowed a real estate company's plea against the certificate issued by Commissioner of Income Tax, whereby the declaration furnished by the Assessee under Section 3 of the DTVSV Act was...

Pendency Of Revenue's Appeal Regarding Classification Of Imported Goods No Ground To Insist On Provisional Assessment U/S 18 Customs Act: Delhi HC

The Delhi High Court has ruled in favour of an importer who was aggrieved by insistence on provisional assessment of duty by the Customs Department, despite an order of the CESTAT with respect to classification of its imported goods. Petitioner-company is involved in providing after sales support services of telecommunication networking equipment and had imported certain goods which were alleged to be misclassified, Petitioner claimed its goods fell under Customs Tariff Heading...

Power Of DRI Officers To Issue Show-Cause Notices Under Customs Act And A 'Flux' In The Legal Position: Delhi HC Discusses

The Delhi High Court recently discussed a 'flux' in the legal position with respect to power of officers of Directorate of Revenue Intelligence (DRI) to issue show-cause notices and recover duties under the Customs Act, 1962. A division bench of Justices Yashwant Varma and Ravinder Dudeja was dealing with a batch of petitions seeking to quash the SCNs and pending adjudication proceedings arising out of the Customs Act, 1962 , the Finance Act, 1994 or the Central Goods and Services Tax,...

Court Can Quash SCNs And Proceedings Under GST Act, Customs Act Or Finance Act On Ground Of Inordinate Delay In Adjudication: Delhi HC

The Delhi High Court has made it clear that Show Cause Notices and adjudication proceedings under the Customs Act, 1962 , the Finance Act, 1994 or the Central Goods and Services Tax, 2017 cannot be kept pending for years. In its 177-page judgment, a division bench of Justices Yashwant Varma and Ravinder Dudeja observed, “Matters which have the potential of casting financial liabilities or penal consequences cannot be kept pending for years and decades together. A statute enabling an...

[IT Act] Section 80IB Doesn't Mandate Setting Off Losses Of One Eligible Unit Against Profits Of Another Eligible Unit: Mumbai ITAT

The Mumbai ITAT recently clarified that an industrial undertaking was not required to set off the losses incurred by it in one eligible unit against the profits earned from another eligible unit for the purpose of calculating deduction u/s 80-IB.As per Section 80-I of Income tax Act, 1961, where the gross total income of an assessee includes any profits and gains derived from an industrial undertaking or a ship or the business of a hotel or the business of repairs to ocean-going vessels or other...