Karnataka High Court Rejects Deccan Mining's Refund Claim, Holds Pay Slips Qualify As Consignment Notes

The Karnataka High Court on 8 July held that transportation services provided by individual truck owners can be treated as Goods Transport Agency (GTA) services if the documents issued for transportation contain the essential features of a consignment note. A Division Bench of Justices S.G. Pandit and Rajesh Rai K dismissed an appeal filed by Deccan Mining Syndicate (P) Ltd., holding that the "pay slips" issued by the transporters fulfilled the requirement of consignment notes under Section...

Delhi High Court Refuses Higher Interest On Service Tax Refund Beyond Statutory 6% Rate

The Delhi High Court has dismissed an appeal seeking enhancement of interest from 6% to 12% per annum on the refund of a service tax deposit made during investigation, holding that once the statute prescribes the rate of interest payable, courts cannot award a higher rate in the absence of any challenge to the statutory provision or the notification issued thereunder.A Division Bench of Justices Anil Kshetrapal and Shail Jain upheld a CESTAT order granting interest at 6% per annum under Section...

Taxpayer Cannot Invoke Section 73(4B) Limitation After Delaying Service Tax Proceedings: P&H High Court

The Punjab and Haryana High Court on 2 July held that the one year period prescribed under Section 73(4B) of the Finance Act, 1994 for passing adjudication orders in cases involving the extended period of limitation is not mandatory in all circumstances and cannot be invoked by a taxpayer whose own conduct caused delay in the proceedings. A Division Bench comprising Acting Chief Justice Ashwani Kumar Mishra and Justice Rohit Kapoor dismissed the appeal filed by Sanjay Verma, an architect and...

Gujarat High Court Denies SVLDRS Benefit For Unquantified Tax Liability Before 30 June 2019 Cut-Off

The Gujarat High Court on 18 June 2026 held that a taxpayer cannot claim benefit under the Sabka Vishwas (Legacy Dispute Resolution) Scheme, 2019 (SVLDRS) merely on the basis of admitting part of its tax liability during investigation, and that the entire tax liability must be quantified on or before the statutory cut-off date of 30 June 2019 for eligibility under the Scheme. A Division Bench comprising Justices A.S. Supehia and Vaibhavi D. Nanavati dismissed the writ petition filed by Planet...

Gujarat High Court Revives YMCA's ₹9.39 Crore Service Tax Refund Claim Rejected As Time-Barred

The Gujarat High Court has recently set aside an order rejecting the Young Men's Christian Association's refund claim for financial years 2009-10 to 2012-13 as time-barred and directed the authorities to reconsider the claim on merits. A division bench of Justice A.S. Supehia and Justice Vaibhavi D. Nanavati was hearing a petition challenging an order that denied refund of ₹9.39 crore claimed by the association for FYs 2009-10 to 2012-13 while allowing a refund claim of ₹26.66 lakh for FY...

Landlord Cannot Recover Service Tax From Tenant Without Express Clause In Lease: Delhi High Court

The Delhi High Court has ron Thursday held that a landlord cannot recover service tax from a tenant in the absence of an express covenant in the lease deed imposing such liability on the tenant. Justice Neena Bansal Krishna dismissed an appeal filed by landlords against a decree directing refund of ₹5.53 lakh deducted from the tenant's refundable security deposit towards alleged service tax dues.The dispute arose between Sunrider India Pvt Ltd and the landlords in relation to a commercial...

IOCL's Terminal Facilities For Crude Oil Storage At Barauni Attract Service Tax: Patna High Court

The Patna High Court has held that terminal facilities used by IOCL's Barauni Refinery for storing crude oil before onward transportation constituted an independent taxable service liable to service tax, and were not merely incidental to pipeline transportation. The court ruled, “If MOU creates a provision of a separate charge for 'discharge facility' or 'terminal facilities' or 'storing of crude oil' before entering into next phase of transportation for Bongaigaon Refinery then, it cannot be...

Gir Forest Deputy Conservator Not Liable For Service Tax As Tour Operator, Performed Sovereign Functions: Gujarat HC

The Gujarat High Court has dismissed the Central Excise Department's appeals seeking to recover over ₹3.44 crore in service tax from the office of the Deputy Conservator of Forests over charges collected from tourists visiting Gir Forest, holding that the officer was performing sovereign governmental functions and could not be treated as a tour operator. “The respondent - Deputy Conservator of Forest was discharging his sovereign function which cannot be brought within the purview of Service...

Bombay HC Quashes Rs. 1.26 Crore Service Tax Demand For Failure To Comply With Pre-SCN Process

The Bombay High Court on 12 March, quashed a service tax show cause notice, holding that failure to conduct mandatory pre-show cause notice (pre-SCN) consultation, as required under CBEC circulars, vitiates the entire proceedings. A Bench of Justices G. S. Kulkarni and Aarti Sathe held that pre-SCN consultation, mandated by circulars issued under Section 37B of the Central Excise Act, is a binding requirement and cannot be bypassed merely because summons were issued to the taxpayer. The Bench...

CESTAT Bangalore Allows Flyjac Logistics Appeals; Freight Margin, Forex Gains Not Subject To Service Tax

The Customs, Excise, and Service Tax Appellate Tribunal (CESTAT), Bangalore, has recently allowed appeals filed by Flyjac Logistics Pvt. Ltd., holding that freight margin and foreign exchange fluctuation gains cannot be treated as consideration for service tax. Observing that the issue is no longer res integra, the tribunal held, "Since, these issues are squarely covered by the decisions of this Tribunal in appellant's own case vide Final Order No. 20650/2024 dated 23.07.2024 and...

Technical Glitch On Portal Cannot Deprive Taxpayer Of Sabka Vishwas Scheme Benefit: Bombay High Court

The Bombay High Court on 11 March held that the benefit of the Sabka Vishwas (Legacy Dispute Resolution) Scheme, 2019 cannot be denied on mere technical grounds when a taxpayer is not at fault. A Division Bench comprising Justice G. S. Kulkarni and Justice Aarti Sathe allowed a writ petition by Himtaj Ayurved Pvt. Ltd and directed the authorities to issue it a discharge certificate, emphasising that the scheme is a one-time measure aimed at resolving legacy disputes and ensuring disclosure of...

Tobacco Board Auction Fee Is Statutory Levy, Not Taxable Service; No Service Tax Payable: CESTAT Hyderabad

The Hyderabad Bench of Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has held that statutory fees collected by the Tobacco Board for conducting auctions of Virginia tobacco cannot be treated as consideration for taxable services and, therefore, are not liable to service tax.The bench consists of Judicial Member Angad Prasad and Technical Member A.K. Jyotishi, who observed that the Tobacco Board was performing statutory and regulatory functions under the governing legislation...