J&K And Ladakh High Court Upholds Construction Workers Cess Act For Erstwhile J&K

The High Court of Jammu & Kashmir and Ladakh has upheld the levy of cess on the cost of construction under the Building and Other Construction Workers Welfare Cess Act, 1996, holding that the Cess Act is an extension and integral part of the law governing the employment and welfare of construction workers.A Division Bench of Acting Chief Justice Sanjeev Kumar and Justice Mohd Yousuf Wani held,“The Cess Act must be considered and treated to be an extension and integral part of the BOCW Act....

Future Redevelopment Potential Cannot Be Treated As Certain Benefit For Stamp Duty Valuation: Bombay High Court

The Bombay High Court has held that future redevelopment potential of a property cannot be treated as a present and certain benefit while determining its market value for stamp duty. The uncertainty, expenses, delay, and legal difficulties involved in realising that potential must also be considered.Justice Amit Borkar observed, “A purchaser may be willing to pay something for future potential. But such potential cannot be treated as a present and certain benefit without considering the...

Rajasthan High Court Declines Writ Against Entry Tax Assessment, Says Appeal Is Equally Efficacious

The Rajasthan High Court on 6 August held that a statutory appeal under the Rajasthan Tax on Entry of Goods into Local Areas Act, 1999 is an equally efficacious remedy against an assessment order, including a challenge based on limitation. A Division Bench comprising Justices Arun Monga and Ashutosh Kumar disposed of a writ petition filed by Sika India Pvt. Ltd. challenging an assessment order dated 18 December 2018 and the consequential demand of Rs. 21.24 lakh towards entry tax, interest and...

Karnataka High Court Upholds Cross-Subsidy Surcharge On Bagasse-Based Power Plants

The Karnataka High Court has upheld cross-subsidy surcharge demands against bagasse-based cogeneration units, holding that exempting solar power projects from the levy while imposing it on bagasse-based cogeneration plants was not discriminatory.Bagasse is the fibrous residue left after sugarcane is crushed to extract its juice Justice M. Nagaprasanna dismissed a batch of petitions filed by Ugar Sugar Works Limited,Hiranyakeshi Sahakari Sakkare Karkhane Niyamit and Godavari Biorefineries...

Rajasthan High Court Rejects Claim To Adjust Earlier Service Tax Payment Against Dues Under Sabka Vishwas Scheme

The Rajasthan High Court has held that a taxpayer who declares the full service tax liability under the voluntary disclosure category of the Sabka Vishwas Scheme cannot later seek adjustment of an earlier tax payment against that declared amount, ruling that the statutory scheme treats the figure voluntarily declared as the tax due.A Division Bench comprising Justice Arun Monga and Justice Ashutosh Kumar held that in a voluntary disclosure case, the amount declared by the taxpayer itself is...

Karnataka High Court Quashes Orders Enforcing 2% Cess On Cinema Tickets, Allows Multiplexes' Plea

The Karnataka High Court has allowed a plea filed by the Multiplex Association of India and PVR INOX Limited against the enforcement of the 2% cess imposed on cinema tickets under the Karnataka Cine and Cultural Activists (Welfare) Act, 2024. Justice H.T. Narendra Prasad held that the measures seeking to operationalise and enforce the cess could not be sustained as the 2024 Act had not been brought into force through a valid commencement notification under Section 1(2). The matter was first...

SEZ Units Cannot Be Denied Stamp Duty Exemption Due To Pre-Ordinance Lease: Gujarat High Court

The Gujarat High Court on 2 September held that an SEZ unit cannot be denied exemption from stamp duty and registration fee merely because its lease deed was executed before the Gujarat Special Economic Zone Ordinance, 2004 came into force, where the investment was made on the basis of the State Government's earlier SEZ policy promising such fiscal incentives. A Division Bench comprising Chief Justice Sunita Agarwal and Justice D.N. Ray dismissed the State Government's appeal against an order...

Karnataka High Court Seeks State's Response To PVR INOX Plea Against 2% Cinema Ticket Cess

The Karnataka High Court has sought the State government's response to a plea challenging the 2% cess imposed on cinema tickets under the Karnataka Cine and Cultural Activists (Welfare) Act, 2024.A bench of Justice H.T. Narendra Prasad directed the State to take notice and observed that the issue concerning the applicability of the relevant provisions would be considered after examining whether the 2024 Act has formally come into force.The matter is listed for further hearing tomorrow. The...

Stamp Duty Authority Need Not Wait For Flat Sales To Assess Development Agreement: Bombay High Court

The Bombay High Court has held that an agreed share of future sale proceeds under a development agreement can be taken into account while determining the market value of an instrument for stamp duty. The stamp authority does not have to wait for the project to be completed or for the flats to be sold before assessing the consideration agreed between the parties. Justice Amit Borkar relied on the court's earlier decision in Kolte Patil to reject the argument that future sale proceeds could not be...

Is Fraud Necessary To Initiate Stamp Duty Undervaluation Proceedings? Supreme Court Refers Issue To Larger Bench

The Supreme Court on Monday referred to a larger Bench the question of whether stamp duty authorities must have material showing fraudulent intention before questioning the value of a property under Section 47-A of the Indian Stamp Act.A Bench of Justice Dipankar Datta and Justice Sheel Nagu expressed serious doubts about the three-Judge Bench ruling in V.N. Devadoss v. Chief Revenue Control Officer-cum-Inspector of Stamps.That judgment held that the power under Section 47-A is based on “wilful...

Madhya Pradesh High Court Upholds State Power To Levy ₹1,000 Per Seat For Permit Violations

The Madhya Pradesh High Court on 25 August upheld the State Legislature's power to impose an additional levy on vehicles plying without a valid permit or in violation of permit conditions, holding that the levy is regulatory and compensatory rather than punitive. A Division Bench comprising Acting Chief Justice Vivek Rusia and Justice Pradeep Mittal dismissed a challenge to Section 13(2)(a) of the Madhya Pradesh Motoryan Karadhan Adhiniyam, 1991, as substituted by the 2025 amendment. The...

Future Commercial Use Cannot Determine Stamp Duty Value: Karnataka High Court

Recently, the Karnataka High Court quashed orders demanding differential stamp duty on a 37-acre land parcel in Hassan district, holding that authorities cannot determine the value of land merely on the basis of an alleged intention to use it for resort or commercial purposes, unless such intended use is established through relevant documents.Justice M.G.S. Kamal allowed a writ petition filed by Disthi Vishal Pvt. Ltd. and another, challenging orders passed by the District Registrar and the...