IGST Not Leviable On Secondment Of Employee From Overseas Group Companies: Karnataka High Court

The Karnataka High Court held that IGST is not leviable on secondment arrangement with overseas entities. Justice Sachin Shankar Magadum was addressing the issue of whether a secondment constitutes a taxable supply of manpower services or a non-taxable employer-employee relationship exempt under Schedule III of the CGST Act. In this case, the during the period from July 2017 to March 2023, the assessee avers that employees of its overseas group companies were seconded to work in ...

GST Officers Issuing Summons/Arrest Memo Not Required To Be Cross-Examined By Assessee: Gujarat High Court

The Gujarat High Court held that GST officers issuing summons/arrest memo are not required to be cross-examined by assessee. Justices Bhargav D. Karia and Pranav Trivedi observed that the assessee wants to cross-examine the persons who belongs to the department who have either issued the summons or arrest memo. Such persons are not required to be cross-examined by the assessee. The assessee/petitioner a proprietor of M/s. KSEG India International was accused of availing the input...

Unauthenticated Documents From Foreign Govt Regarding Swiss Bank Account Of Assessee Can't Form Basis For Criminal Action: Delhi HC

The Delhi High Court has quashed the criminal proceedings initiated against an assessee under Section 276C, 276D and 277 of the Income Tax Act 1961 merely on the basis of some unauthorised documents alleging existence of an undisclosed Swiss Bank account in his name.In doing so, Justice Neena Bansal Krishna observed,“Merely on some unauthenticated information received from a third Country with no material evidence, is not sufficient to make out a prima facie case and there cannot be a...

ITAT Rejects Congress Party's Appeal To Exempt ₹199.15 Crore From Income Tax, Cites Belated Filing Of Return

The Income Tax Appellate Tribunal dismissed an appeal by the Indian National Congress seeking income tax exemption for the income of ₹199.15 crore during the assessment year 2018-19.The Tribunal rejected the party's claim for exemption on the ground that there was a violation of the conditions in Section 13A of the Income Tax Act. The returns were filed late, the ITAT noted. Calling for a strict interpretation of the exemption clause, the ITAT observed that "the moment there is violation...

Bombay High Court Directs GST Council To Develop Mechanism For Cross-State ITC Transfer In Mergers/Amalgamations

The Bombay High Court has directed the GST Council and GST Network to develop a mechanism for cross-state ITC transfer in Mergers/amalgamations. Justices Bharati Dangre and Nivedita P. Mehta permitted the IGST and CGST amount lying in the electronic credit ledger of the Transferor Company to be transferred to the Petitioner Company by physical mode for the time being, subject to the adjustments to be made in future. The petitioner/Umicore Autocat India Private Limited has raised a...

Tax Weekly Round-Up: July 14 - July 20, 2025

SUPREME COURTStem Cell Banking Services Qualify As "Healthcare Services" In Service Tax Exemption Notification : Supreme CourtCase : M/S. STEMCYTE INDIA THERAPEUTICS PVT. LTD vs COMMISSIONER OF CENTRAL EXCISE AND SERVICE TAX, AHMEDABAD - IIICase no.: CIVIL APPEAL NOS. 3816-3817 OF 2025The Supreme Court held that stem cell banking services, including enrolment, collection, processing, and storage of umbilical cord blood stem cells, constitute “Healthcare Services” which were exempted from service...

Income Tax | Salary Received By Chinese Resident For Services In China Not Taxable In India, Even If Credited To Indian Bank Account: ITAT

The Chennai Bench of Income Tax Appellate Tribunal (ITAT) has stated that salary received by Chinese resident for the services in China not taxable in India, even if credited to the Indian bank account. Manu Kumar Giri (Judicial Member) and S.R. Raghunatha (Accountant Member) observed that “the AO has disallowed the exemption claimed with respect to salary received in India for services rendered in China as taxable in India since the salary has been credited by BMW India Pvt Ltd into...

S. 161 CGST Act | Adjudicating Authority Can Dismiss GST Rectification Application Without Personal Hearing: Madras High Court

The Madras High Court stated that the GST authority can dismiss the rectification application without a personal hearing. The issue before the bench was whether the third proviso to Section 161 of the TNGST Act, 2017, requires complying with the principles of natural justice even for dismissing a rectification petition. Section 161 of the Goods and Services Tax Act, 2017 talks about the rectification of errors apparent on the face of the record. The third proviso to Section 161...

Loose Sheets And Private Diaries Not Sufficient Evidence For Excise Duty Demand: CESTAT

The Kolkata Bench of Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has stated that loose sheets and private diaries is not sufficient evidence for excise duty demand. R. Muralidhar (Judicial Member) and Rajeev Tandon (Technical Member) stated that mere tallying of certain entries, does not make out these loose sheets to be complete evidence of the purchases and sales and other details pertaining to the assessee. In this case, the assessee/Appellant is manufacturer of...

MP Entry Tax Act | Manufacturers Liable For Entry Tax As They “Cause Entry” Of Liquor Into Local Areas : Supreme Court

The Supreme Court upheld the MP High Court's decision to levy the 'entry tax' on the beer and Indian Made Foreign Liquor (“IMFL”) manufacturers for transporting goods into local areas for sale. The Court reasoned that the liquor manufacturers "cause entry" of goods into local areas, making them liable for tax under Section 2(3) of the Madhya Pradesh Sthaniya Kshetra Me Mal Ke Pravesh Par Kar Adhiniyam, 1976 (“M.P. Entry Tax Act, 1976”), even if sales occur through state-controlled warehouses. ...

Notice U/S 153C Income Tax Act Can Be Issued Only If Incriminating Material Has 'Bearing On Total Income' Of Non-Searched Assessee: Delhi HC

The Delhi High Court has made it clear that assessments under Section 153C of the Income Tax Act, 1961 can be made on a non-searched entity only when the Assessing Officer has incriminating material which “has a bearing” on its total income.Section 153C allows the Revenue department to proceed against a party other than the person who is being searched, if incriminating articles belonging to the other person are found during the search.A division bench of Justices Vibhu Bakhru and Tejas Karia...

Skill Development Programmes Approved By Govt Qualify For Service Tax Exemption: CESTAT

The Kolkata Bench of Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has stated that Skill Development Programme approved by the Ministry of Labour and Employment, Government of India is eligible for the exemption from payment of service tax. K. Anpazhakan (Technical Member) stated that the programme undertaken by the assessee is approved by the Government and hence the activity undertaken by them is eligible for the exemption from payment of Service tax, as the said...