High Court Rulings


Arrears recoverable from bonafide assets purchaser; Transfer of Property Act prohibition inapplicable

HC rules on recovery of tax dues of defaulting dealer, from bonafide purchaser of such dealer’s immovable property, u/s 26 r/w Sec 27 of Andhra Pradesh VAT Act, 2005 (AP VAT Act); Unlike Sec 100...View More

Exempt by-product cannot reduce input credit entitlement on taxable final product

HC allows full input tax credit (ITC) w.r.t. inputs used for manufacturing taxable final product despite emergence of exempted by-product during process; Sec 17 of Karnataka VAT Act, 2003 (KVAT Act) d...View More

Absent business nature / profit motive, VAT inapplicable on sole transaction of car sale

HC upholds Tribunal order, one-time sale of used car by a dealer in timber not liable to VAT @ 12.5% under Karnataka VAT (KVAT) Act; Rejects Revenue contention that VAT applicable to assessee as a &ld...View More

Xerox machines / ACs are 'capital goods'; Allows input tax rebate on software export 

HC allows input tax rebate on xerox machines, air conditioners and security systems used for export of developed software by EOU; Rejects Revenue’s contention that such equipment not used direct...View More

VAT inapplicable on 'right to use' cars leased under erstwhile sales tax

HC approves Tribunal observations, lease rentals received after introduction of Karnataka Value Added Tax, Act (KVAT Act) w.r.t. transfer of right to use cars leased under Karnataka Sales Tax Act (KST...View More

Grants service tax amnesty under VCES despite Tribunal order confirming demand

Karnataka HC extends amnesty benefit of Voluntary Compliance Encouragement Scheme (VCES) to assessee despite Tribunal order confirming service tax demand alongwith interest and penalty u/s 78 of Finan...View More

CHA license revocation proceedings must commence within 90 days from offence report

HC allows writ, notice for Customs House Agent’s (CHA) license revocation to be given within 90 days from receipt of ‘offence report’ in terms of Regulation 22(1) of Customs House Ag...View More

'All Industry' drawback claim cannot bar 'brand rate' determination; Quashes CBEC Circular

HC quashes CBEC Circular dated December 30, 2011 to the extent it bars ‘Brand Rate’ drawback determination under Rule 7 of Customs, Central Excise Duties and Service Tax Drawback Rules, 19...View More

'Accountants' can prima facie appear before VAT authorities; Vacates interim order against non-advocates

Allahabad HC allows impleadment applications of ICAI and ICSI, vacates interim order which barred Chartered Accountants, Company Secretaries and Cost & Works Accountants from filing returns and ap...View More

Quashes Tribunal order; Must claim input credit within 6 months under KVAT law 

Karnataka HC quashes Tribunal order, input tax credit (ITC) for a particular period cannot be claimed beyond 6 months, in return filed for subsequent period; As per Sec 10 of Karnataka VAT Act, ITC mu...View More