The Indirect Tax Weekly Flashback for the period 16 to 22 March 2025.
Table of Contents
Delhi High Court
Delhi High Court Directs Customs Dept To Strictly Adhere to Email Notice Requirement
The Delhi High Court has directed the customs dept to strictly adhere to email notice requirements under Section 153 of the Customs Act, 1962.
The bench of Justice Prathiba M. Singh and Justice Rajneesh Kumar Gupta has observed that it is incumbent that service of notices, communications and orders ought to be effected even through email and on the common portal, in addition to the traditional methods as per Section 153 of the Customs Act.
Delhi High Court Directs Customs to Release Personal Jewellery of Minor From UAE Held At IGI Airport
The Delhi High Court has directed customs to release personal jewellery of minors from UAE held at IGI airport.
Delhi High Court Quashes DGFT’s Cancellation Of Trader’s License Due To 15-Year Delay in Show Cause Notice
The Delhi High Court has quashed the order passed by the Directorate General of Foreign Trade (DGFT) in cancellation of trader’s license due to 15-year delay in issuing the show cause notice (SCN).
The bench of Justice Sachin Datta has observed that despite the SCN remaining unadjudicated for decades, the cancellation order / letter dated 07.08.2019 was issued, which effectively condemned the petitioner unheard of.
Customs Dept’s Jurisdiction Under E-Cigarettes Prohibition Act, 2019: Delhi High Court To Examine
The Delhi High Court will examine the customs department’s jurisdiction under E-Cigarettes Prohibition Act, 2019.
The bench of Justice Prathiba M. Singh and Justice Rajneesh Kumar Gupta has listed the matter on 30th April, 2025 to hear on the issue whether the devices which are being imported by the Petitioner can be seized by the Customs Authorities or not.
Assessee’s Negligence In Tracking Order Not A Fault Of Commissioner (Appeals): Delhi High Court Refuses To Condone Delay In Filing Second Appeal
The Delhi High Court has refused to condone delay in filing second appeal on the ground that there was a negligence on the part of the assessee in tracking the order and it was not a fault of Commissioner (Appeals).
The bench of Justice Prathiba M. Singh and Justice Rajneesh Kumar Gupta has observed that the Commissioner (Appeals) cannot be blamed for having sent the order to the earlier address of the Appellant. There has been clear lack of alacrity on behalf of the Appellant, who has not bothered to verify as to whether any order was passed by the Commissioner (Appeals) in the appeal preferred at its instance. The duty existed, also, upon the Appellant to check if any order was passed in the appeal.
Customs Wrongfully Seized NRI’s Personal Belongings, NRI Entitled To Baggage Rule Benefits: Delhi High Court
The Delhi High Court has held that the non-resident Indian (NRI) is fully entitled to the benefit provided to an eligible passenger under the Baggage Rules, 2016.
The bench of Justice Prathiba M. Singh and Justice Rajneesh Kumar Gupta has observed that the goods namely the gold chain constitute personal effects of the Petitioner – NRI and could not have been seized in the manner the Customs department have.
Karnataka High Court
Dept. Can’t Reject Fair Market Value of Shares Determined Using Statutory Methods Without Justification: Karnataka High Court
The Karnataka High Court has held that the department cannot reject fair market value of shares determined using statutory methods without justification.
The bench of Justice Krishna S Dixit and Justice Ramachandra D. Huddar has observed that the valuation done by the assessee cannot be rejected without recording any finding to the contrary by the lower authorities and therefore the addition is not sustainable.
Karnataka High Court Issues Notice to Centre, 32 Media Houses Over Coverage of Ranya Rao’s Case
The Karnataka High Court has issued a notice to the Central government and 32 media houses following a petition by the mother of actor Ranya Rao, who was arrested in a gold smuggling case.
Calcutta High Court
Customs Dept. Lacks Jurisdiction To Question Validity Of Service Exports from India: Calcutta High Court Stays S. 28AAA SCN Issued By Customs Dept. To Issued By Customs Dept. To Hinduja Global
In a relief to Hinduja Global, the Calcutta High Court has admitted a writ petition against a show cause notice under section 28AAA of the Customs Act, 1962, issued by the Customs authority and granted stay.
The bench of Justice Rajarshi Bharadwaj was of the prima facie view that Customs authority do not have the jurisdiction to question the validity of Service Exports from India Scheme (SEIS) scrips, especially, in case where the proper officers under the Foreign Trade (Development and Regulation) Act, 1992, have not disputed the same.
Kerala High Court
Burden of Proof On Assessee To Prove Agricultural Nature Of Land For Capital Gains Tax Exemption: Kerala High Court
The Kerala High Court has held that the burden of proof on assessee to prove agricultural nature of land for capital gains tax exemption.
Time-Barred KVAT Assessments Cannot Be Reopened Based on CAG Report: Kerala High Court
The Kerala High Court has held that the time-barred Kerala Value Added Tax (KVAT) Assessments cannot be reopened based on Comptroller and Auditor General of India (CAG) Report.
The bench of Dr. Justice A.K.Jayasankaran Nambiar and Justice Easwaran S. has observed that in cases where the completion of an assessment under the KVAT Act has become time barred by virtue of the limitation provisions under Section 25(1) of the KVAT Act, the department cannot proceed to re-assess an assessee on the basis of a subsequent report obtained from the CAG.
Goods Carriage Vehicles Can’t Be Classified As Construction Equipment Vehicles For Demanding One-Time Tax: Kerala High Court
The Kerala High Court has held that the goods carriage vehicles cannot be classified as construction equipment vehicles for demanding one-time tax.
