Supreme Court Issues Notice In DMRC Plea Against ₹45 Crore Service Tax Demand On Upfront Lease Premium

The Supreme Court on Tuesday issued notice on an appeal filed by Delhi Metro Rail Corporation Ltd (DMRC) challenging a CESTAT ruling that upheld a service tax demand of over ₹45 crore. The demand relates to upfront fees received under long-term lease arrangements for property development linked to the Delhi Metro project.A Bench of Justices Pamidighantam Sri Narasimha and Alok Aradhe issued notice and agreed to hear the case on merits.The dispute arose from service tax demands against DMRC on...

Reliance Industries' n-Hexane Import Cannot Be Classified As Motor Spirit Merely For Low Flash Point: Supreme Court

The Supreme Court has ruled in favour of Reliance Industries Ltd. in its long-running customs classification dispute, holding that imported n-Hexane cannot be treated as motor spirit merely because its flash point is below 25°C. The court held that the Customs Department failed to prove that the product satisfied all conditions required for such classification, including suitability for use as fuel in spark ignition engines. A bench of Justice Aravind Kumar and Justice Prasanna B. Varale...

Supreme Court Refuses To Interfere With Relief To RSRTC In ₹16 Crore Service Tax Dispute

The Supreme Court has refused to interfere with a tribunal ruling that granted major relief to Rajasthan State Road Transport Corporation (RSRTC) in a long-running service tax dispute involving demands exceeding ₹16 crore over allegations that it operated as a “tour operator” and failed to pay tax on certain other services. A bench of Justice Dipankar Datta and Justice Satish Chandra Sharma dismissed an appeal filed by the Principal Commissioner of CGST and Central Excise, Jaipur, against a...

Supreme Court Seeks Union's Stand On Customs' Power To Question AIFTA Benefit Claims Despite Valid Origin Certificates

The Supreme Court on Monday sought the Union Government's stand in a dispute where importers have challenged customs authorities' jurisdiction to question preferential duty claims under the ASEAN-India Free Trade Agreement (AIFTA) despite valid Certificates of Origin issued by the exporting country. The Court also directed that no final adjudication order be passed in the matter for now. A Bench of Justices K.V. Viswanathan and Manmohan was hearing special leave petitions filed by importers,...

Supreme Court Requests Early Delhi HC Hearing In Pernod Ricard's ₹3,000 Crore Customs Duty Dispute

The Supreme Court on Monday asked the Delhi High Court to hear, within weeks, Pernod Ricard India Pvt Ltd's challenge to a September 2025 customs adjudication order in a valuation dispute in which it allegedly faces duty liability of around Rs 3,000 crore. A bench of Justices Sanjay Karol and Nongmeikapam Kotiswar Singh noted that Pernod Ricard's writ petition before the Delhi High Court was listed for July 28, 2026. It directed the parties to appear before the High Court on May 15; requested...

Supreme Court Dismisses Customs Challenge Against ITC Ltd Over Quicklime Classification

The Supreme Court on Friday dismissed the Customs Department's challenge against ITC Ltd, upholding a ruling that treated imported “quicklime” as an industrial form of lime rather than a chemically pure compound. The classification turned on whether the product, containing about 92% calcium oxide, could be considered a high-purity chemical.A bench of Justices Manoj Misra and Manmohan found no grounds to interfere with the CESTAT Kolkata Bench order dated June 20, 2025, which had held in favour...

Supreme Court Sets Aside HC Direction Making Customs Dept. Liable For Demurrage In Austin Engineering Dispute

The Supreme Court has recently set aside a Madras High Court ruling that had required the Customs Department to bear demurrage charges in a dispute with Austin Engineering Co. Ltd. These charges are levied by port authorities when imported goods remain in storage beyond the permitted period.The court made it clear that such liability cannot be placed on customs unless there is clear evidence of mala fides or a gross abuse of power. A bench of Justice Aravind Kumar and Justice Prasanna B. Varale...

Supreme Court Stays ₹14.91 Crore Customs Duty Recovery Against HP India, Issues Notice

The Supreme Court has stayed recovery pursuant to a Rs.14.91 crore customs demand against HP India Sales Pvt. Ltd. and issued notice in its appeal against a November 4, 2025 order of the Customs, Excise, and Service Tax Appellate Tribunal (CESTAT).HP India's appeal challenges the CESTAT Mumbai order, which upheld the classification of its imported “HP Latex printers” as inkjet printing machines instead of inkjet printers, leading to the duty demand along with interest and penalty under the...

Supreme Court Dismisses Patanjali Foods' Appeal Against Kerala High Court's “Out of Charge” Order

The Supreme Court on Monday dismissed a special leave petition filed by Patanjali Foods Ltd, refusing to interfere with the Kerala High Court's judgment which held that customs duty is to be determined based on the date of issuance of the “out of charge” order. A Division Bench of Justices J.B. Pardiwala and K.V. Viswanathan found no valid grounds to challenge the High Court's decision.The Kerala High Court had allowed Patanjali Foods' appeal, holding that the relevant date for calculating...

Voluntary Statements To Customs Officers Can Sustain Conviction: Supreme Court

The Supreme Court has recently reiterated that statements recorded by Customs officers under Section 108 of the Customs Act, 1962, constitute substantive evidence and can sustain a conviction if shown to be voluntary. A bench of Justice Vikram Nath and Justice Sandeep Mehta reaffirmed the Gujarat High Court's judgment holding that, “Statements recorded under Section 108 of the Customs Act, 1962 by duly authorized Customs Officers are admissible in evidence and do not attract the bar...

Supreme Court Dismisses Customs Review Plea Against IndiGo, SpiceJet In IGST Exemption Case On Reimported Aircraft Parts

The Supreme Court has recently dismissed review petitions filed by the Customs Department against its earlier judgment affirming relief granted to InterGlobe Aviation Limited, which operates IndiGo, in a dispute concerning the levy of Integrated Goods and Services Tax (IGST) on re-import of aircraft and parts sent abroad for repairs.A bench of Justice B.V. Nagarathna and Justice K.V. Viswanathan condoned the delay but declined to interfere with its earlier decision. The court held: ...

Supreme Court Issues Notice In Challenge To CESTAT Ruling That Customs Cannot Alter FOB Value Of Goods

The Supreme Court recently issued notice on an appeal filed by the Commissioner of Customs (Appeals) against a ruling of the Customs, Excise and Service Tax Appellate Tribunal (CESTAT), New Delhi, which held that Customs officers cannot alter the Free on Board (FOB) value agreed upon between a buyer and seller. A Bench of Justice Pamidighantam Sri Narasimha and Justice Alok Aradhe directed that the matter be heard along with a connected appeal. The tribunal had framed the issue succinctly:...