Topic
CESTAT held that adjusting a SAD refund against a sub-judice duty drawback demand is impermissible under Section 142 of the Customs Act, ordering repayment of ₹17,96,125 with interest under Section 11BB and stating that recovery must await adjudication.
ITAT Delhi bench ruled that orders giving effect to ITAT decisions are appealable under Section 246A, and CIT(A) can adjudicate interest u/s 244A adjustments. Clarifies refund computation mechanics and jurisdictional limits for tax appeals.
The Calcutta High Court has ruled that adjusting a tax refund beyond 20% of a disputed demand without giving the assessee a prior opportunity to be heard violates the principles of natural justice. This sets a critical precedent for all taxpayers facing refund adjustments under Section 245, mandating procedural fairness even in recovery actions by the Income Tax Department.
Bombay High Court rules that refunds under the MVAT Act cannot be adjusted against tax demands settled under the Maharashtra Settlement Act, 2023, as it defeats the amnesty scheme's purpose. The judgment reinforces that statutory settlement schemes must be interpreted strictly to uphold their intended relief, protecting taxpayers from arbitrary adjustments.