No Sales Tax On HDPE Bags Used To Pack Cement When Sold Separately: Bombay High Court

The Bombay High Court stated that no sales tax can be levied on HDPE (High-Density Polyethylene) bags at cement rate when sold separately. Justices M.S. Sonak and Jitendra Jain were addressing the issue of whether there is an express and independent contract on the sale of HDPE bags in which cement is packed. “HDPE bags used to pack the cement were a distinct commodity with its own identity and were classified separately. There was no chemical or physical change in the packing...

[S.169 CGST Act] Service On Registered Email Is Sufficient For Calculating Limitation Period: Allahabad High Court

The Allahabad High Court has held that under Section 169 of the Central Goods and Service Tax Act, 2017 service on registered email is sufficient service for the purpose of limitation. It held that holding that service was to be made by more than one modes would be absurd and defeat the purpose of the provision. The bench of Justice Shekhar B. Saraf and Justice Praveen Kumar Giri held “Upon perusal of Section 169 of the Act, we are of the view that in the event the service is made by...

S.6(2)(b) CGST Act | Central Authority Can Issue Summons Despite State Authority Initiating Proceedings : Supreme Court

The Court also recommended greater coordination and intelligence-sharing between State and Central GST authorities.

Consideration Paid To Foreign Company For Use Of Computer Software Not 'Royalty', No TDS Liability: Delhi High Court

The Delhi High Court has reiterated that consideration paid by an Indian entity to a foreign company for the resale/ use of their computer software is not 'royalty'.A division bench of Justices V. Kameswar Rao and Vinod Kumar thus held that the Indian entity is not liable to deduct TDS in such cases.The bench in this regard relied on Engineering Analysis Centre of Excellence Pvt. Ltd. v. The Commissioner of Incometax & Another (2021) where the Supreme Court had held that amounts paid by...

No Service Tax On Catering Services Provided To Educational Institutions: CESTAT

The New Delhi Bench of Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has held that no service tax on catering services provided to educational institutions. Dr. Rachna Gupta (Judicial Member) and Hemambika R. Priya (Technical Member) were addressing the issue of whether the catering services provided by the assessee to a School with hostel facility are covered under the exemption from payment of service tax given at serial no.9 of Notification No.25/2012-ST dated...

`Tribunal Has Inherent Authority To Stay Orders Detrimental To Revenue: CESTAT

The Chennai Bench of Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has stated that tribunal has inherent authority to stay orders detrimental to revenue. P. Dinesha (Judicial Member) and M. Ajit Kumar (Technical Member) stated that “the power of taxation including its collection being an inherent attribute of sovereignty, the right of revenue to seek a stay of an order determinantal to the collection of taxes, cannot be lightly dismissed….……..we find force in the plea...

Income Tax | Interest Earned On Surplus Lending Funds Is Attributable To Banking Business, Qualifies For 80P Deduction: Calcutta High Court

The Calcutta High Court stated that interest earned on surplus lending funds is attributable to banking business, qualifies for 80P deduction under Income Tax Act. Section 80P of the Income Tax Act, 1961 provides 100% tax deductions to cooperative societies for income from specified activities. These activities commonly include marketing agricultural produce, purchasing agricultural supplies, processing products without power, offering banking services, and more. Chief Justice T.S....

Cenvat Credit Can Be Availed On Sugar Cess Paid On Imported Raw Sugar: CESTAT

The Chandigarh Bench of Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has stated that cenvat credit can be availed on sugar cess paid on imported raw sugar. S.S. Garg (Judicial Member) and P. Anjani Kumar (Technical Member) were addressing the issue of whether the assessee is entitled to avail the CENVAT credit of the sugar cess paid on imported raw sugar or not. In this case, the assessee/appellant is engaged in manufacturing of sugar. In year 2010, the assessee...

Delhi High Court Imposes ₹50K Cost On Trader Who Missed Personal Hearing After Failing To Check GST Portal

The Delhi High Court recently refused to interfere with a GST demand raised against a trader, who failed to either appear for personal hearing or even file a reply.Though the trader sought to contend that reply could not be filed as he is not a frequent visitor to the GST portal, a division bench of Justices Prathiba M. Singh and Renu Bhatnagar said,“It is a matter of practice of the GST Department that the notices for personal hearing and notices for replies to be filed are all uploaded on the...

Writ Petition Not Maintainable Against Officer's ITC Finding Made Within Jurisdiction: Calcutta High Court

The Calcutta High Court stated that writ not maintainable against officer's ITC finding made within jurisdiction. Justice Raja Basu Chowdhury stated that “Though, violation of principles of natural justice, and a challenge on jurisdictional issue can be maintained, such issue must, relate to an exercise of jurisdiction by an authority which it does not have, and not merely an error committed within its jurisdiction.” In this case, on the basis of audit observation under Section 65...

Income Tax Act | Criminal Complaint For Tax Evasion Filed During Pendency Of Reassessment Proceedings Not Premature: Delhi High Court

The Delhi High Court recently dismissed a plea for quashing a criminal complaint lodged under Income Tax Act 1961 for alleged tax evasion, moved on the ground that reassessment action was pending and hence the complaint was premature.The bench of Justice Neena Bansal Krishna cited P. Jayappan vs. S.K. Perumal, First Income Tax Officer [1984] where it was held that pendency of re-assessment proceedings cannot act as a bar to the institution of criminal prosecution for the offences under Section...

Tax Weekly Round-Up: August 04 - August 10, 2025

SUPREME COURTLet GST Council Look Into Tracking Of GST Paid On Foreign OIDAR Services : Supreme CourtCase Title – Pradeep Goyal v. Union of India & Ors.Case no. – Writ Petition No. 258 of 2021The Supreme Court recently disposed of a public interest litigation seeking directions for setting up a mechanism to track services provided by foreign entities in India under the Goods and Services Tax (GST) regime.A bench of Justice BV Nagarathna and Justice KV Viswanathan passed the order after...