Calcutta High Court Upholds Service Tax On C&F and Transport of Steel, Excludes Bending & Bundling

On 4 February, the Calcutta High Court held that service tax applies to “Clearing and Forwarding” (C&F) services and transport expenses for steel products. The Court clarified that activities such as transporting, storing, forwarding, and record-keeping fall within the scope of C&F services, while bending, bundling, and stock verification of goods do not. A Division Bench of Justices Rajasekhar Mantha and Ajay Kumar Gupta dismissed an appeal by Naresh Kumar & Co., which claimed...

Joint Commissioner's VAT Revision Cannot Be Revisited By Senior Officer: Calcutta High Court

The Calcutta High Court on 2 February held that once an order is revised by a Joint Commissioner under Section 86 of the West Bengal Value Added Tax Act, 2003, it cannot be subjected to a further suo motu revision under Section 85 by a Senior Joint Commissioner, as both officers act as delegates of the Commissioner and exercise the same revisional authority. A Bench of Justice Kausik Chanda, while dismissing a review petition filed by the West Bengal Tax Department, wrote: "Once an order has...

Amicable Settlement In Commercial GST Dispute Allows Quashing of FIR: Calcutta High Court

The Calcutta High Court recently quashed an FIR and released the frozen corporate bank accounts of Indian Compressors Ltd., clarifying that where a dispute is essentially commercial and private in nature, and the parties have voluntarily arrived at an amicable settlement, criminal proceedings may be quashed under Section 482 Cr.P.C., even for non-compoundable offences. A Bench of Justice Uday Kumar noted: "Where the dispute is essentially commercial and private in character, and the parties...

Calcutta High Court Appoints Former Chief Justice As Arbitrator In Turner Morrison–Berger Paints Tax Dispute

The Calcutta High Court has appointed Justice T.S. Sivagnanam, former Chief Justice of the Court, as the sole arbitrator to decide a tax liability holdback dispute between Turner Morrison Limited and Berger Paints India Limited. A Single Bench of Justice Shampa Sarkar held that objections based on limitation and contractual interpretation cannot be decided at the stage of appointing an arbitrator. The Court said such issues must be left to the arbitral tribunal, which is the “master of facts”. ...

Calcutta High Court Sets Aside Patent Office Order Rejecting TopoTarget's Cancer Drug Patent Application

The Calcutta High Court has set aside a Patent Office order rejecting a cancer drug patent filed by TopoTarget UK Limited, observing that the decision was taken without a proper and independent assessment of the invention.A Single Judge Bench of Justice Ravi Krishan Kapur, in a judgment dated January 30, 2026, allowed TopoTarget's appeal and quashed an order dated November 29, 2019, passed by the Deputy Controller of Patents and Designs, Kolkata.The impugned order had rejected the patent...

'Reason To Believe' Not Required To Inspect Seized Jewellery Under Income Tax Act: Calcutta High Court

The Calcutta High Court on 28 January dismissed a writ petition challenging inspection notices issued by the Income Tax Department for jewellery and bullion seized during a search operation, holding that the revenue authorities are not required to disclose the information or reasons that prompted the inspection, so long as it is undertaken for purposes permitted under the Income Tax Act (IT Act), 1961. Justice Om Narayan Rai delivered the ruling while examining a challenge to notices issued...

Calcutta High Court Holds Amazon Not Liable For Brokerage Claim Without Signed Agreement With Pioneer

The Calcutta High Court has recently held that mere exchange of emails and incorporation of modifications in draft terms cannot, by itself result in a legally enforceable contract, particularly when the parties clearly intended execution of a written agreement.Justices Debangsu Basak and Md. Shabbar Rashidi allowed an appeal filed by Amazon Seller Services Pvt Ltd, which had challenged a trial court decree passed in favour of Pioneer Property Management Ltd. over alleged unpaid brokerage and...

Banks Must Examine MSME Restructuring Claims Before Proceeding Under SARFAESI: Calcutta High Court

The Calcutta High Court has recently held that once an MSME borrower raises a restructuring claim in reply to a SARFAESI demand notice, the bank cannot carry on with recovery proceedings without first taking a decision under the RBI's revival framework. Justice Krishna Rao said the obligation on the bank is mandatory when such a claim is made with reasons and an affidavit. “It is mandatory on the part of the bank that, in reply, if the borrower claims benefit of the FRAMEWORK with reasons...

Calcutta High Court Upholds Injunction Restraining Publisher From Using Cartoonist Narayan Debnath's Works

The Calcutta High Court has upheld an interim injunction restraining Dev Sahitya Kutir Pvt. Ltd., a Kolkata-based publishing house, from publishing, selling or distributing the literary and artistic works of late author and cartoonist Narayan Debnath, holding that no legal infirmity existed in the trial court's order granting protection to the author's legal heirs.A Division Bench comprising Justice Sabyasachi Bhattacharyya and Justice Supratim Bhattacharya passed the order on January 21, 2026,...

Appellate Authority Cannot Enhance GST Liability Without Hearing Taxpayer: Calcutta High Court

The Calcutta High Court on 14 January reiterated that a GST appellate authority cannot enhance taxable turnover or impose a higher rate of tax on grounds that were never part of the original adjudication, without giving the taxpayer an opportunity to be heard. A Bench of Justice Om Narayan Rai set aside an appellate order which enhanced the petitioner's taxable turnover by adding zero-rated supplies of Rs. 27 lakh and imposed GST at 18%, holding that such enhancement at the appellate stage...

Tax Authorities Cannot Exceed Scope of Show Cause Notice: Calcutta High Court

The Calcutta High Court emphasised that a GST adjudicating authority cannot deny tax exemption on grounds that were never raised in the show cause notice. A Bench of Justice Om Narayan Rai set aside an adjudication order passed against M/s Duakem Pharma Pvt. Ltd., observing that the proper officer exceeded the scope of the show cause notice by deciding an issue that was never put to the assessee for explanation. The Court noted: "The question as to whether the products/items dealt in by the...

Calcutta High Court Upholds ITAT Order Allowing NBFC To Set Off Share Trading Losses Against Interest Income

The Calcutta High Court has dismissed the income tax department's appeal against an ITAT order allowing an NBFC to set off losses described by the department as penny stock trades against its interest and other income. The Court held that the case raised no substantial question of law. A Division Bench of Justice Rajarshi Bharadwaj and Justice Uday Kumar said the department had failed to produce any direct or substantial evidence to support its case. It found that the allegation that the...