Gujarat High Court Dismisses Revenue's ₹3.44 Cr Service Tax Appeal Over Fees Collected From Gir Forest Visitors

The Gujarat High Court has dismissed a Revenue appeal against the Deputy Conservator of Forests in a ₹3.44-crore service tax dispute over permit fees, entry fees, camera fees, and other charges collected from visitors to Gir Forest.The court relied on an earlier ruling that had held that such fees cannot be treated as consideration for taxable services, as the Deputy Conservator of Forests was discharging sovereign functions while collecting them in his official capacity.A Division Bench...

Renting Vacant Land Not Service Taxable Before July 1, 2010: CESTAT Delhi Denies Extended Limitation

The CESTAT Delhi has ruled that renting of vacant land was not taxable for service tax before July 1, 2010. It also held that one-time premium or salami received under a lease of immovable property was liable to service tax, but the extended limitation period could not be invoked against Madhya Pradesh Audyogik Kendra Vikas Nigam Limited without an intent to evade tax or positive evidence of suppression.The tribunal observed, “the immovable property including the vacant land is leviable to...

No Separate DCGI Approval Needed For Service Tax Exemption On Drug Testing: CESTAT Chennai

The Chennai bench of the Customs, Excise and Service Tax Appellate Tribunal (CESTAT) has recently held that Service Tax exemption for clinical testing of newly developed drugs cannot be denied merely because a Clinical Research Organisation (CRO) does not have a separate approval from the Drugs Controller General of India (DCGI).The tribunal found that the drug Sponsors had obtained DCGI-approved permissions for the clinical trials. Consortium Clinical Research Pvt. Ltd. (CCRP), acting as the...

Madras High Court Directs Provisional Release Of Imported Equipment, Rejects Reliance On Later Amendment

The Madras High Court has directed Customs authorities to consider the provisional release of consignments of second-hand highly specialised equipment.Justice Hemant Chandangoudar held that a later amendment to the applicable exemption notification could not be relied upon to deny release of goods covered by Bills of Lading issued before the amendment came into force.The petitioner had imported second-hand highly specialised equipment, namely digital multifunction print and copying...

Sale Price Below Manufacturing Cost Cannot Be Accepted for Excise Valuation Even For Independent Buyers: CESTAT Allahabad

The Allahabad CESTAT has ruled that a manufacturer cannot automatically rely on a declared sale price for excise valuation merely because the buyer is an independent party when the price is substantially and continuously below the cost of manufacture.The tribunal made the finding in appeals filed by Eveready Industries India Ltd. over the valuation of batteries supplied to two torch manufacturers. It held that it was unnecessary to conclusively decide whether the buyers were “related persons”...

CESTAT Sets Aside ₹93.75 Lakh Demand Against HCL, Upholds BPO Works Contract Credit Denial

On 1 September, the Allahabad Bench of the Customs, Excise and Service Tax Appellate Tribunal (CESTAT) held that CENVAT credit cannot be denied merely because input services were received at premises not included in the taxpayer's centralised registration, while upholding denial of credit on works contract services used for construction or setting up of Business Process Outsourcing (BPO) branches. A Bench comprising Judicial Member P.A. Augustian and Technical Member Sanjiv Srivastava partly...

Customs Cannot Indefinitely Detain Goods Through Panchnama To Reset Limitation: Gujarat High Court

The Gujarat High Court on 25 August held that Customs authorities cannot use a Panchnama to indefinitely restrain goods and later issue a formal seizure order to bypass the time limits under Section 110 of the Customs Act, 1962, ruling that the limitation period starts from the date of detention if the mandatory order under the provision was not passed. A Division Bench comprising Justices A.S. Supehia and Vaibhavi D. Nanavati held that the vehicle belonging to petitioner Pranavbhai Ambalal...

Supreme Court Sets Aside ₹425.28 Crore Customs Penalty Over Fake Citations, AI Hallucinations

The Supreme Court has set aside a customs penalty of ₹425.28 crore against a diamond trader after finding that the adjudicating authority had relied on non-existent judgments and fake citations.It also found that legal propositions had been wrongly attributed to existing judgments, which the Court said appeared to be a “hallucination of AI”.A Division Bench of Justices Dipankar Datta and Sheel Nagu set aside the Gujarat High Court's January 20, 2026, order that had dismissed Vijay Ghanshyam...

Madras High Court Quashes ₹4.56 Crore Customs Duty Demand Against Shipping Forwarder

The Madras High Court on 19 August set aside a Rs. 4.56 crore differential customs duty demand, along with interest and penalties, imposed on the proprietor of The Sea Shipping Forwarders. A Single-Judge Bench comprising Justice Hemant Chandangoudar held that the Customs Department failed to record a specific finding, supported by cogent evidence, that the petitioner had prior knowledge of the concealed goods or knowingly facilitated their concealment and attempted duty evasion. He held: ...

Rajasthan High Court Says Customs Cannot Recover Excess Drawback Without Reassessment

The Rajasthan High Court on 12 August held that Customs authorities cannot directly invoke Section 75A(2) of the Customs Act, 1962 to recover alleged excess drawback without first reassessing the exporter's self-assessment under Section 17 of the Act. A Division Bench comprising Justices Munnuri Laxman and Sangeeta Sharma allowed writ petitions filed by Bhati & Company and Latiyal Handicrafts Pvt. Ltd. and granted the Customs authorities liberty to proceed under Sections 17 and 18 of the...

CESTAT Ahmedabad Holds ₹54 Lakh Recovery Against Panasonic Time-Barred, Faults Department's Inaction

The Customs, Excise and Service Tax Appellate Tribunal (CESTAT), Ahmedabad on 24 August set aside recovery of Rs. 54,00,034 from Panasonic Life Solutions India, holding that the Department's show cause notice issued nearly six years after the credit was taken was barred by limitation. A Bench comprising Judicial Member Dr. Ajaya Krishna Vishvesha and Technical Member Satendra Vikram Singh held that recovery of irregular or excess credit under Notification No. 39/2001-CE is subject to the...

DDA's Statutory Status Does Not Exempt Its Commercial Leasing From Service Tax: CESTAT New Delhi

The New Delhi Customs, Excise and Service Tax Appellate Tribunal (CESTAT) on 24 August held that the Delhi Development Authority's (DDA) statutory status does not exempt its commercial leasing activities from Service Tax. Also, receipts from leasing Government or Nazul land against lease premium, ground rent or other considerations are taxable when they are not compulsory statutory levies. A Bench comprising Judicial Member Dr. Rachna Gupta and Technical Member P.V. Subba Rao dismissed two...