Tax
Tobacco Pouches Up To 10g Not Liable To MRP-Based Excise Duty: CESTAT Chandigarh
The Customs, Excise and Service Tax Appellate Tribunal (CESTAT), Chandigarh, has ruled that small tobacco pouches of 4 grams and 9 grams are not liable to MRP-based valuation under Section 4A of the Central Excise Act, 1944, allowing a batch of appeals filed by Shiva Tobacco Co. and others. If Section 4A (MRP-based valuation) does not apply, valuation falls back to Section 4 (transaction value).The bench comprising Judicial Member S. S. Garg and Technical Member P. Anjani Kumar delivered the...
GSTAT New Delhi Finds No Profiteering By Samridhi Realty After Excess ITC Benefit Passed To Buyers
The New Delhi Bench of the Goods and Services Tax Appellate Tribunal (GSTAT) on 2 April, held that there is no contravention of anti-profiteering provisions where a developer has already passed on input tax credit (ITC) benefits to homebuyers in excess of the amount required under Section 171 of the CGST Act. A Division Bench of Justice Mayank Kumar Jain and Technical Member Anil Kumar Gupta disposed of proceedings against Samridhi Realty Pvt. Ltd. and accepted the Director General of...
GSTAT New Delhi Holds No ITC Benefit Arises For Homebuyers In Fully Post-GST Construction
On 2 April, the Principal Bench of the Goods and Services Tax Appellate Tribunal (GSTAT), New Delhi, held that no input tax credit (ITC) benefit was required to be passed on to homebuyers where the entire construction and transaction took place after the Goods and Services Tax (GST) regime came into force. Judicial Member Justice Mayank Kumar Jain upheld the Director General of Anti-Profiteering's (DGAP) closure report dated 21 August 2025 in DG Anti Profiteering v. Sobha Limited. He observed: ...
GSTAT New Delhi Confirms No Profiteering By IJM Raintree Park, Dismisses Homebuyer's Objections
The New Delhi Bench of the Goods and Services Tax Appellate Tribunal (GSTAT) on 1 April upheld the closure of anti-profiteering proceedings, finding that no additional input tax credit benefit accrued to the developer after the introduction of GST. A Bench of Judicial Member Mayank Kumar Jain rejected objections raised by a homebuyer against the Director General of Anti-Profiteering's (DGAP) closure report dated 8 January 2025 concerning alleged non-passing of GST input tax credit benefits in a...
Importer Not Liable For Post-Sale RSP Revision By Dealers: CESTAT New Delhi
The New Delhi Bench of the Customs, Excise and Service Tax Appellate Tribunal (CESTAT) on 9 April, held that an importer cannot incur liability for differential customs duty based on a post-sale upward revision of Retail Sale Price (RSP) by independent dealers, once the parties complete the sale on a principal-to-principal basis. A Bench comprising President Dilip Gupta and Technical Member Hemambika R. Priya set aside the demand raised against Richemont India Pvt. Ltd., holding that the...
CESTAT Delhi Says Govt Reimbursement Grant For Daawat Foods Plant Not Taxable As Service
The Customs, Excise and Service Tax Appellate Tribunal (CESTAT), New Delhi has granted relief to Daawat Foods Ltd., holding that grant-in-aid received by it from the Government as reimbursement of expenditure is not liable to service tax as it does not constitute consideration for any service. A Bench of Judicial Member Dr. Rachna Gupta and Technical Member Hemambika R. Priya ruled that the financial assistance did not give rise to any service provider–recipient relationship. “As the...
Rajasthan High Court Defreezes Accounts As GST SCN Only Uploaded On Portal, Never Served
The Rajasthan High Court has directed de-freezing of the bank accounts of business entities and their proprietors from Sawai Madhopur after noting their submission that the SCN concerning their GST liability was only uploaded on the portal without being served through any other prescribed mode. Granting interim relief, a division bench of Justice Mahendra Kumar Goyal and Justice Bhuwan Goyal said it would be just and proper to allow operation of the accounts, subject to the deposit of 10% of...
Pigmy Agents Are Employees, Commission Paid Them Not Subject To GST: Karnataka High Court
The Karnataka High Court on 8 April, held that banks engage pigmy (deposit collection) agents as employees, not independent service providers. Therefore, the commission paid to them does not attract Goods and Services Tax (GST). A Bench comprising Justice M. Nagaprasanna allowed Karnataka Vikas Grameena Bank's writ petition and quashed all show cause notices issued by GST authorities under the reverse charge mechanism. He held: “The show cause notices issued by the respondent proceed on an...
CESTAT New Delhi Allows Pre-GST CENVAT Credit Refund Under Reverse Charge Mechanism To Yokohama India
On 7 April, the Principal Bench of the Customs, Excise & Service Tax Appellate Tribunal (CESTAT), New Delhi allowed Yokohama India Pvt. Ltd. to claim a cash refund of CENVAT credit paid under the Reverse Charge Mechanism (RCM) for the pre-GST period. Judicial Member Dr. Rachna Gupta clarified that Section 142(3) of the CGST Act protects such vested rights and the refund cannot be denied simply because the tax was paid after GST or due to alleged suppression without evidence. She observed: ...
Total Turnover Determines Eligibility For Tax Exemption, Not Just Taxable Services: CESTAT New Delhi
The New Delhi Bench of the Customs, Excise and Service Tax Appellate Tribunal (CESTAT) on 7 April, held that to claim exemption under Notification No. 25/2012-ST, the “turnover” of a business entity includes its entire income and not just taxable services. Therefore, if the total turnover exceeds the prescribed limit, a refund of service tax cannot be granted.A Bench comprising Judicial Member Dr. Rachna Gupta and Technical Member Hemambika R. Priya dismissed the appeal filed by Jal Mahal...
TTD A "Governmental Authority" For GST, 12% Rate For Contractors Not Automatic: Andhra Pradesh High Court
The Andhra Pradesh High Court on 3 March 2026 held that Tirumala Tirupati Devasthanams (TTD) qualifies as a “Governmental Authority” and “Governmental Entity” under GST notifications. However, the Court clarified that contractors can claim the concessional 12% GST rate only if the works they execute meet the conditions specified in the notifications. A Division Bench comprising Justices R. Raghunandan Rao and T.C.D. Sekhar was hearing a batch of writ petitions filed by contractors who executed...
Supreme Court Refuses To Interfere With Delhi HC Ruling On Deletion Of FTS/FIS Additions On Coursera
The Supreme Court has recently refused to interfere with the Delhi High Court ruling holding that receipts earned by Coursera Inc. from providing access to its online learning platform are not taxable as Fees for Technical Services (FTS) or Fees for Included Services (FIS) under the Income Tax Act and the India–USA DTAA. A Bench of Justice Pamidighantam Sri Narasimha and Justice Alok Aradhe said it was not inclined to interfere with the impugned judgment of the Delhi High Court and dismissed...