Indirect Tax Weekly Flashback from 23 to 29 March 2025.
Table of Contents
Supreme Court
CBIC To Re-Examine Timelines Fixed For Correcting Bonafide Errors: Supreme Court
The Supreme Court has directed the Central Board of Indirect Taxes and Customs (CBIC) must re-examine the provisions/timelines fixed for correcting the bonafide errors.
Supreme Court Directs Customs Dept. To Ensure Comprehensive Testing Facilities For Goods Classification To Avoid Prolonged Litigation
The Supreme Court has directed the customs department to ensure comprehensive testing facilities for goods classification to avoid prolonged litigation.
The bench of Justice Nongmeikapam Kotiswar Singh has observed that non-examination of any product/article/goods on all the parameters laid down by the customs authority will always lead to uncertainty and doubt, which are required to be removed when dealing with confiscatory proceedings.
Supreme Court Disposes Contempt Petition Against Chhattisgarh Tax Dept. After Unconditional Apology
The Supreme Court has disposed of the contempt petition against Chhattisgarh tax department after unconditional apology for raising demand notices against a successful resolution applicant.
Delhi High Court
Delhi High Court Slams CESTAT For Contradictory Orders, Cites Lack of Pecuniary Jurisdiction
The Delhi High Court has slammed the Customs, Excise and Service Tax Appellate Tribunal (CESTAT) for contradictory orders citing lack of pecuniary jurisdiction.
The bench of Justice Prathiba M. Singh and Justice Rajneesh Kumar Gupta has observed that Instruction dated 2nd November, 2023, issued by the CBIC wherein monetary limits have been fixed for filing of appeals by the Department. In terms thereof, for CESTAT appeals, the monetary limit would be to the tune of Rs.50 lakhs.
Delhi High Court Raps Customs Dept. for Delay in Clearing Goods, Says Action Taken Only After Writ Petition
The Delhi High Court has raped the customs department for delay in clearing goods, says action taken only after writ petition.
“It becomes clear to the Court that the Customs Department is taking steps only after filing of the present writ petition. The delay in this manner would not be permissible as consignments of the Petitioner and other similarly placed persons are held up, when expedited steps are not taken for clearing of goods,” the bench of Justice Prathiba M. Singh and Justice Rajneesh Kumar Gupta stated.
Delhi High Court Directs Customs Release Of ‘Name Engraved’ Gold Kada
The Delhi High Court has directed the customs department to release of ‘name engraved’ Gold Kada.
The bench of Justice Prathiba M. Singh and Justice Rajneesh Kumar Gupta has observed that gold kada was a personal effect of the Petitioner as his name `SAI’ was engraved on the same.
DRI To Copy Relied Upon Documents, Avoid Unnecessary Retention of Seized Devices: Delhi High Court
The Delhi High Court has held that the Directorate Of Revenue Intelligence (DRI) must copy relied upon documents and avoid unnecessary retention of seized devices throughout the proceedings.
Benefit Of Monetary Limits Guidelines Not Applicable In Classification Disputes: Delhi High Court
The Delhi High Court has held that the benefit of monetary limits guidelines is not applicable in classification disputes.
Kerala High Court
Keraleeyam Ayurvedic Resort Primarily a Resort, Ayurvedic Treatment Incidental; Liable To Tax: Kerala High Court
The Kerala High Court has held that Keraleeyam Ayurvedic Resort primarily a resort, ayurvedic treatment incidental and is liable to pay tax.
The bench of Justice A.K.Jayasankaran Nambiar and Justice Easwaran S. has observed that while imparting Ayurvedic treatment to the inpatient, though a special diet is given in accordance with the treatment and the medicine given, the fact that an extra person is accommodated in the resort is charged with a rate and the fact that the breakfast, lunch, and dinner have been provided, shows that the appellant is not running an ayurvedic treatment centre but a resort where the incidental facility of ayurvedic treatment is being given to the occupants.
Customs Dept Can’t Invoke Expired Bank Guarantees: Kerala High Court
The Kerala High Court has held that the Customs Department cannot invoke expired Bank Guarantees.
The bench of Justice A.K.Jayasankaran Nambiar and Justice Easwaran S. has observed that the invocation of the Bank Guarantees cannot be made, except on fraud or irretrievable injury or loss caused to the person who has furnished the Bank Guarantee.
