RECENT JUDGEMENTS –IN DIRECT TAX

q  In the tax regime, generally, the tax department rejected the unutilized credit on the ground the same has not been reflected in the return. Means the Department has allowed the credit only when the credit has been reflected in the return. Credit reflected in the books of account has no more relevance in the eyes of department. Henceforth, to overcome this situation, the Hon'ble CESTAT Mumbai Bench in the case of Wardurg Pincus pronounced the wonderful judgment wherein the court has allowed the refund of unutilized cenvat credit which has not been reflected in the return. Meaning thereby, books of account has to be maintained properly in terms of the provision of law so that the unutilized credit has to be claimed

q   As per Kolkata CESTAT GST not applicable on TDS relating to Foreign Supplier payment

q  Karnataka HC quashes amendment to Rule 89(4)(C) which restricts refund of unutilized ITC under GST.  

q  Employee recoveries for subsidized food provided, especially when provided due to statutory mandate is now clearly emerging as not a "supply" on the recovery portion and hence no GST. Even ITC is held to be available to the extent of food provided to the direct employees and limited to the cost borne by the employer after 1.2.2019. Encouraging to note!!. Refer Gujarat AAR in Cadilla Pharma 

q  Tamil Nādu AAR in the case of Profisolutions Private Limited  based on Columbia judgement held that services, including services of common employees of a person, provided by a branch office to head office and vice versa, each having separate GST registration, will attract GST liability under GST Acts  

q  In Action Construction Ltd. & ors., the larger bench of Tribunal holds that earth moving equipment are not 'automobile', and therefore do not attract excise duty under MRP basis.
There is difference between an passenger/ goods vehicle (denominated as automobile) and a mechanically propelled construction/ earth moving equipment (crane, forklift, loader etc.). Just because the latter bears registration under the MV Act does not make them automobile.
For the period prior to 01 Feb 2019, Sec. 17 (5) (a) of CGST Act was applicable qua 'conveyances'. This decision helps in the understanding that ITC is not blocked on construction/ earth moving equipment under the guise of conveyance 

q  Judgement dtd 12/06/2023 giving support to genuine buyer to avail Input Tax Credit (ITC) based on his tax invoice issued by supplier whose registration has been cancelled with retrospective effect High Court of Calcutta – Gargo  Traders.