Key highlights of the publication
- Important updates/announcements: On the indirect tax front, the Supreme Court has held that the benefit of tax exemption should be read as a whole, in accordance with the legislative intent without any addition or subtraction. The government is empowered to withdraw the exemption at any time.
- Key judicial pronouncements: The Gujarat HC has held that the circular issued to impose new restrictions under the Export Promotion Capital Goods (EPCG) is ultra vires. The ruling reiterates that the benefit which has accrued to the exporter at a particular point in time is their fundamental right and cannot be taken away by subsequent retrospective amendment.
- Important developments in direct taxes: On the direct tax front, the SC in a recent ruling has tried to strike a balance between the rights of the tax department as well as the taxpayers, thereby protecting the interest of the exchequer. This could have a bearing on thousands of reassessment notices and writ petitions across the country.
Source Grant Thornton
