CST
CESTAT Upholds CST Demand, ₹6.43 Crore Penalty On Kedia Vanaspathi, Rejects Consignment Sale Claim
The New Delhi Bench of the Customs, Excise & Service Tax Appellate Tribunal (CESTAT) on 12 May 2026 upheld the tax demand and penalty against Kedia Vanaspathi Ltd., holding that a dealer seeking exemption under Section 6A of the Central Sales Tax Act, 1956 must prove, with prescribed evidence, that inter-State movement of goods arises from consignment transfers and not sales. President Justice Dilip Gupta and Technical Member P.V. Subba Rao dismissed the appeals and confirmed the...
Kimberly Clark's Goods Movement To Other States Was Stock Transfer, Not Inter-State Sale: CESTAT New Delhi
The Customs, Excise and Service Tax Appellate Tribunal (CESTAT), New Delhi has held that Kimberly Clark Lever Pvt. Ltd.'s movement of goods from Maharashtra to its depots in other States for subsequent sales amounted to stock transfers and not inter-State sales liable to Central Sales Tax. A bench of President Justice Dilip Gupta and Technical Member P.V. Subba Rao observed that the agreement between Kimberly Clark and Hindustan Lever Limited was merely a broad framework or standing offer, with...
Licence Fee, Technical Assistance Charges Not Part Of Customs Value Unless Condition Of Sale: CESTAT Delhi
The Principal Bench of the Customs, Excise & Service Tax Appellate Tribunal (CESTAT), New Delhi has held that licence fees, engineering package charges, and technical assistance payments cannot be added to the assessable value of imported equipment where they are separately contracted and are not a condition of sale. A bench of Judicial Member Binu Tamta and Technical Member P.V. Subba Rao observed, “Law has been settled that once separate prices are provided for the supply of technical...
States Cannot Levy Local VAT On Inter-State Sales Even If Sale Is Deemed To Occur Within The State: Supreme Court
The Supreme Court on Friday held that a state cannot impose its own Value-Added Tax (VAT) on a transaction that qualifies as an inter-state sale merely because the Central Sales Tax Act deems the sale to have taken place within that state for the limited purpose of identifying which state may collect tax. A bench of Justice J.K. Maheshwari and Justice Atul S Chandurkar held that where the statutory provision defining an inter-state sale conflicts with the provision determining the deemed...
Senior Tax Officers Can Exercise Powers Of Subordinate Officers Under AP Sales Tax Act: CESTAT Delhi
The Principal Bench of the Customs, Excise & Service Tax Appellate Tribunal (CESTAT), New Delhi, has recently held that senior tax officers can exercise powers vested in subordinate officers under the Andhra Pradesh sales tax law.The tribunal made the observation while dismissing appeals filed by Hyderabad-based refined oil and vanaspati manufacturer Kedia Vanaspathi Ltd. against a Central Sales Tax demand of Rs. 2.33 crore and a penalty of Rs. 6.43 crore. “A plain reading of section 4A of...
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...