Indirect Tax Weekly Flashback for the period 16 to 22 February 2025.
Table of Contents
Delhi High Court
Delhi High Court Allows Duty Drawback Claim On Exports Of Unlocked/Activated Mobile Phones
Case Title: Aims Retail Services Private Limited Versus Union Of India
The Delhi High Court allowed duty drawback claim on exports of unlocked/activated mobile phones.
The bench of Justice Prathiba M. Singh and Justice Dharmesh Sharma has observed that the unlocking/activating of the mobile phones as per the procedures adopted by the Petitioners herein is mere ‘Configuration’ of the product to make it usable and does not constitute “taken into use” under proviso to Rule 3 of the Duty Drawback Rules.
Bombay High Court
Customs Dept. To Bombay High Court: $1.4B Tax Demand Won’t Block Volkswagen Consignment
Case Title: Skoda Auto Volkswagen India Versus Union Of India
The ongoing legal battle between Skoda Auto Volkswagen India and the Indian customs department took a significant turn on Monday as the customs authorities assured the Bombay High Court that they have not, and will not, halt any shipments related to the automaker. This assurance comes amid a heated dispute over a massive $1.4 billion tax demand.
Customs Dept. Can’t Demand Bank Guarantee From Importer To Secure Anticipated Redemption Fine, Penalties Without Show Cause Notice: Bombay High Court
Case Title: BMS Enterprises Versus Union of India & Ors
The Bombay High Court has held that when no Show Cause Notice is issued, to ask the importer to furnish a Bank Guarantee even to secure the anticipated redemption fine and anticipated penalties, would be rather harsh.
The bench of Justice B. P. Colabawalla and Justice Firdosh P. Pooniwalla has observed that interest of justice would be served if the said goods imported by the Petitioner under all six Bills of Entry are allowed to be provisionally released on the Petitioner executing a Provisional Duty Bond as per the assessable value of all six Bills of Entry and a Bank Guarantee equivalent to a sum of Rs.85 Lakhs. This Bank Guarantee would secure the Revenue for approximately 50% of the differential duty, if payable by the Petitioner.
Meghalaya High Court
This Is Why Meghalaya High Court Condones Delay Of 165 Days In Filing Central Excise Appeal
Case Title: The Commissioner of Central Goods and Services Tax and Central Excise Versus M/s Lamare & Company
The Meghalaya High Court has condoned the delay of 165 days in filing central excise appeal.
The bench of Justice H. S. Thangkhiew and Justice B. Bhattacharjee has observed that due to the fault of the counsel, in preparing the draft memo of appeal for which the applicant should not suffer.
Karnataka High Court
Sales Tax Payable On Set-Top Boxes: Karnataka High Court
Case Title: M/S Atria Convergence Technologies Ltd. Versus Deputy Commissioner Of Commercial Tax
The Karnataka High Court has upheld the sales tax payable on set-top boxes.
The bench of Justice Krishna S Dixit and Justice G Basavaraja has observed that Section 174(2) has to be read with sub- section (3) of Section 164. Added, sub-section (4) of Section 174 in a way enacts Sec.6 of the Mysore General Clauses Act, 1899. It cannot be assumed that the tax regime during the transition period between repeal of 2003 Act and enactment of 2017 Act, was ever intended to be left as a vacuum creating a limited/partial tax heaven, in the mere absence of a notification under sub-section (2) of Section 174.
