Supreme Court & High Court Weekly Round Up
Supreme Court & High Court Weekly Round Up – Taxscan
Supreme Court & High Court Weekly Round Up – Taxscan
This weekly round-up analytically summarizes the key stories related to the Supreme Court and High Court reported at Taxscan.in during the previous week from January 3 to January 8, 2022.
Small Industries Development Bank of India Vs. SIBCO
The Supreme Court held that the directions issued by the Reserve Bank of India (RBI) are Statutory Binding on Financial Institutions Like Small Industries Development Bank of India (SIDBI). The bench observed that firstly, the defendant was justified in withholding payment, as they were under RBI’s direction to do so; secondly, the defendant hasn’t derived any undue benefit by their act and; thirdly, due payment was promptly made to the plaintiffs upon settlement of rights by the court. Moreover, the concerned transactions were during the “suspect spell”. This is our view shows that the defendant acted bona fide and there was no undue delay on their part, to remit the dues.
Ranjana Singh Vs. Commissioner of State Tax
The Allahabad High Court has imposed the penalty on the GST Department for unnecessary harassment for copying the electricity bill for granting GST Registration. The court said that the two authorities of the State have acted only with a view to harass the petitioner which cannot be accepted at any cost. This attitude of the respondents in this petition cannot be tolerated as the officers who are State functionaries have to act fairly and their action must be in consonance with the provisions of the Acts as well as Rules. “The writ petition is allowed with a cost of Rs. 15,000/-, which shall be deposited before the High Court State Legal Services Committee, Allahabad within a period of 20 days from today. The respondents are at liberty to recover the cost from the erring Officer,” the court noted.
Naresh Aggarwal Agency Vs. State of Punjab
The Punjab and Haryana High Court quashed the GST Order as no opportunity of hearing afforded to assessee.
The Karnataka High Court upheld the validity of Section 54(3) of the CGST Act pertaining to the refund of unutilised Input Tax Credit (ITC).
The Calcutta High Court held that completing Faceless Assessment before time is not sustainable and it is in violation of principles of natural justice. The division bench of Justice T. S. Sivagnanam and Justice Hiranmay Bhattacharyya held that the assessment order dated 08.09.2021 and the notice of the demand dated 08.09.2021 as well as the penalty notice dated 08.09.2021 are quashed and the matter is remanded to the respondents for granting fresh opportunity to the appellant for filing reply/objection to the draft assessment notice and, thereafter, to take a decision on the merit.
The Delhi High Court directed the Income Tax Department to reconsider the issue of issuance of the certificate with ‘NIL’ deduction of income tax after granting the opportunity of hearing.
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