CST
Sales Directly Linked To Export Cannot Be Taxed Under Central Sales Tax: Andhra Pradesh High Reaffirms
The Andhra Pradesh High Court has recently reiterated that where export is the direct result of a sale and the two form an integrated transaction that cannot be dissociated, such a sale is protected under Article 286 of the Constitution and cannot be subjected to State taxation. Explaining the law, the Division Bench of Justice R. Raghunandan Rao and Justice T.C.D. Sekhar held that a sale is “in the course of export” under Section 5(1) of the Central Sales Tax Act, 1956, when the sale itself...
Supreme Court Refuses To Interfere With Delhi HC Ruling On CST Exemption For Inter-State Sales In Mitsubishi Case
The Supreme Court of India has refused to interfere with a Delhi High Court ruling that allowed a tax exemption claimed by Mitsubishi Corporation India for inter-state sales, rejecting the tax department's argument that the benefit was unavailable because an earlier sale of the goods was already exempt from tax. A bench of Justices J.B. Pardiwala and R. Mahadevan said the case did not warrant interference. “We see no good reason to interfere in the impugned judgment and order passed by the High...
GSTAT President Orders Lenient Scrutiny Of GST Appeals In Initial Filing Phase
The President of the Goods and Services Tax Appellate Tribunal (GSTAT), New Delhi Principal Bench, recently directed all GSTAT registries to adopt a lenient approach in scrutinising GST appeal filings, limiting objections during the initial phase to only substantive defects that affect the merits of the case. The direction was issued by an office order dated 20 January 2026 to address the practical difficulties faced by appellants in filing appeals on the newly operational GSTAT portal. The...
CST Act | After 20 Yrs, Gujarat High Court Permits PSU To Claim Branch Transfer Exemption Denied For Non-Production Of Original 'Form-F'
After almost 20 year litigation, the Gujarat High Court permitted a public sector energy enterprise to claim branch transfer exemption of over Rs 6 crore under the Central Sales Tax Act, which was denied earlier on non-production of the original Form-F. Form F is a document used for branch transfer of goods in the course of inter-state trade, which permits claiming of exemption from Central Sales Tax (CST) on such transactions. A division bench of Justice AS Supehia and Justice...
Revenue Cannot Adjudicate Decade-Old SCNs On NPV Sales Tax Retention: Bombay High Court
The Bombay High Court at Goa has set aside two show cause notices issued to a manufacturer seeking to levy central excise duty on the differential amount of sales tax/VAT retained by it under a Net Present Value (NPV) incentive scheme, holding that the Revenue cannot be permitted to adjudicate stale notices after an unexplained and inordinate delay. A Division Bench of Justice Bharati Dangre and Justice Ashish S. Chavan allowed the writ petitions filed by the assessee, quashing show...
Gujarat High Court Allows Pfizer's Additional Claims Worth ₹15 Crore Under Central Sales Tax Act, Sets Aside VAT Tribunal Order
The Gujarat High Court has allowed writ petition by Pfizer, a pharmaceutical major against the Value Added Tax (VAT) Tribunal order that expressly barred the consideration of any additional Form-F. In a judgment dated November 20, 2025, the Division Bench comprising Justice Pranav Trivedi and Justice A.S. Supehia noted the 11-year pendency in litigation in relation to production of Form-F under the Central Sales Tax Act, 1956. In this vein, the High Court deliberated on piecemeal...
Central Sales Tax | Cross-Border Trademark Transfers Are Export Of Goods, Not Taxable As Local Sale: Bombay High Court
The Bombay High Court has held that the assignment of the well-known trademark “Crocin” by Duphar Interfran Ltd. to SKB Plc (UK) amounted to a sale “in the course of export” of intangible goods, and therefore could not be taxed as a local sale within the State of Maharashtra under the Bombay Sales Tax Act, 1959. A Division Bench of Justice M.S. Sonak and Justice Advait M. Sethna, while hearing a Sales Tax Reference overturned the view of the Sales Tax Tribunal and held that the situs...
State Rules Can't Be Inconsistent With Central Rules Under CST Act : Supreme Court Rejects Rajasthan's Appeal
The Supreme Court upheld the Rajasthan High Court's decision striking down Rule 17(20) of the Central Sales Tax (Rajasthan) Rules, 1957 (Rajasthan CST Rules) as ultra vires the Central Sales Tax Act, 1956, noting that the State Government cannot exceed its delegated powers by authorizing cancellation of Form C, which the Central Rules do not permit. The bench comprising Justices Abhay S Oka and Ujjal Bhuyan dismissed the State of Rajasthan's appeal, which challenged the High Court's decision of...
'Every Statute Prima Facie Prospective Unless Stated Otherwise' : Supreme Court Says 2002 Amendment To CST Act Won't Affect Accrued Rights
The Supreme Court yesterday (on February 12) held that though after the amendment of Section 8(5) of the Central Sales Tax Act, the State Government's right to grant exemption from tax has ceased to exist, the amendment is prospective. Thus, it would not apply to the cases where an absolute exemption has already been granted.The amended Act nowhere stipulates that rights previously accrued stand nullified or all previous exemptions stand cancelled or revoked., the Bench of Justices P.S....
'Hiring' Of Helicopters By Andaman & Nicobar Admin Not Exigible To Tax Under Central Sales Tax Act: Delhi High Court
The Delhi High Court has held that the supply of helicopters by Pawan Hans Ltd. to the Andaman & Nicobar Islands administration, under an agreement executed in the year 2003, is not exigible to tax under the Central Sales Tax Act, 1956. A division bench of Justices Yashwant Varma and Ravinder Dudeja reasoned that the agreement did not qualify as a 'sale' between the parties. It noted that while Pawan Hans (appellant) was obliged to place a helicopter at the service of the A&N...
Tata Steel Limited, Is Entitled To A Refund Of Excess CST Collected By IOCL And Remitted To State - Calcutta High court
The Calcutta High Court has held that Tata Steel is entitled to the concessional rate of tax as they have fulfilled the conditions in Section 8 of the Central Sales Tax Act.The division bench of Justice T.S. Sivagnanam and Justice Supratim Bhattacharya has observed that Tata Steel, as a purchasing dealer, has the capacity to maintain the claim for refund of the excess tax collected directly from them, and the writ petition is maintainable.The court ruled that be entitled to the concessional rate...