Tax
CESTAT Kolkata Affirms CBEC Circular, Reiterates Sub-Contractor Independently Liable For Service Tax
The Kolkata Bench of Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) on 6 February clarified that after the issuance of CBEC Master Circular No. 96/7/2007-ST dated 23 August 2007, a sub-contractor is independently liable to pay Service Tax on the services rendered by it, even where the main contractor has already discharged the Service Tax liability on the same project. A Bench comprising Judicial Member Ashok Jindal and Technical Member K. Anpazhakan, was examining the legality of...
Only Commissioner Can Decide If Delay In Income Tax Refund Is Attributable to Taxpayer, Not AO: Delhi High Court
The Delhi High Court has recently held that the question whether delay in processing TDS refund is attributable to the assessee/taxpayer, for the purpose of denying interest under Section 244A(2) of the Income Tax Act, can be decided only by the Principal Commissioner/Commissioner and not by the Assessing Officer (AO).A Division Bench of Justices Dinesh Mehta and Vinod Kumar observed,“Looking at the language used in sub-section (2) of Section 244A of the Act of 1961, we are of the firm opinion...
GST Appeal Cannot Be Entertained Beyond Statutory Limit Of 120 Days: Gujarat High Court
The Gujarat High Court has held that delay in filing an appeal against cancellation of GST registration cannot be condoned beyond the statutory maximum period of 120 days (3+1 months) prescribed under Section 107 of the CGST Act. A Bench of Justice A.S. Supehia and Justice Pranav Trivedi, in a judgment dated 22 January 2026, dismissed a writ petition filed by Rajesh Industries, a proprietorship firm, holding that writ jurisdiction under Article 226 cannot be invoked to override...
Delhi High Court Slams IT Officer For Relying On Set-Aside Order, Directs Issue Of Nil TDS Certificate
The Delhi High Court has strongly criticised the Income Tax Department for relying on a long-set-aside assessment order to deny withholding tax relief, holding that such an approach amounts to a revenue-driven exercise contrary to law and judicial discipline.A Division Bench of Justices Dinesh Mehta and Vinod Kumar set aside the order passed under Section 197 of the Income Tax Act, 1961, which had directed deduction of tax at 15% instead of issuing a nil withholding certificate to a a UK-based...
Income Tax | Duty Drawback Not Eligible for 80-IC Relief ; Taxes on Raw Materials Must Be Set Off: Delhi High Court
The Delhi High Court has held that while duty drawback receipts are not eligible for deduction under Section 80-IC of the Income Tax Act, the excise and customs duties paid by a taxpayer on raw materials are required to be deducted/subsumed from the duty drawback while recomputing income in the facts of the case.A Division Bench of Justices Dinesh Mehta and Vinod Kumar partly allowed the appeal filed by Narayan Industries against ITAT order denying its claim for deduction under Section 80-IC in...
Reassessment Must Be Based On AO's Independent 'Reason To Believe,' Not Borrowed: Delhi High Court
The Delhi High Court has dismissed the Income Tax Department's appeals against NTPC Ltd., holding that reassessment proceedings cannot be initiated merely on the basis of an audit objection and that the statutory requirement of “reason to believe” must be from independent satisfaction of the Assessing Officer (AO).A Division Bench of Justices Dinesh Mehta and Vinod Kumar observed,“the provision expressly used the language 'reason to believe' and the same has been interpreted by Hon'ble the...
Delhi High Court Grants Bail In NDPS Case, Says Customs Detention Without Magistrate's Authorisation Illegal
The Delhi High Court has recently granted bail to a foreign national accused in a narcotics smuggling case, holding that once contraband was partially recovered at the airport, Customs authorities were bound to arrest him and produce him before a Magistrate, and that his continued detention without judicial authorisation rendered the subsequent arrest illegal.Justice Manoj Jain observed, “The contraband contained in 19 capsules, suspected to be cocaine, was seized, and thus offence stood...
Customs Act | Once SCN States Market Value Of Seized Goods, Burden Lies On Noticee To Disprove It: Delhi High Court
The Delhi High Court has recently held that once the market value of goods seized by the Customs is specified in a show cause notice, the burden lies on the one who recieved notice to disprove the valuation with cogent material, and a mere denial is insufficient to seek interference in appellate proceedings.A division bench of Justices Nitin Wasudeo Sambre and Ajay Digpaul was hearing an importer's appeal challenging concurrent findings of the Customs adjudicating authority and CESTAT,...
Gujarat High Court Quashes Notification Withdrawing Transport and Marketing Assistance Scheme
The Gujarat High Court on 5 February set aside a 2022 Commerce Ministry Notification that withdrew the Transport and Marketing Assistance (TMA) Scheme for certain agricultural products with retrospective effect. A Bench of Justice A.S. Supehia and Justice Pranav Trivedi directed exporters' claims accrued before the cancellation of the Scheme must be processed expeditiously. It held: “All the benefits accruing till the issuance of Notification dated 25.03.2022 shall be extended to the...
Indirect Tax Weekly Round-Up: February 09 - February 15, 2026
SUPREME COURTSupreme Court Issues Notice On Challenge To Delhi HC View That Customs Need Not Communicate Adjudication Time ExtensionCase Title : PRANIJ HEIGHTS INDIA PVT LTD Vs THE JOINT COMMISSIONER OF CUSTOMS FOR ADMISSION Case Number : Special Leave to Appeal (C) No(s). 3246/2026The Supreme Court recently (February 6) issued notice in a challenge to a Delhi High Court ruling that held that customs authorities were not required to communicate an extension granted for completing adjudication...
Direct Tax Weekly Round-Up: February 09 - February 15, 2026
SUPREME COURTSupreme Court Issues Notice In Plea Challenging Punjab and Haryana HC Ruling Against AO Consulting Superiors Before IT AssessmentCase Title : DEPUTY COMMISSONER OF INCOME TAX CENTRAL CIRCLE 01 CHANDIGARH & ANR. VS FINDOC FINVEST PRIVATE LIMITED Case Number : Diary No. 71435/2025The Supreme Court on Monday issued notice on an appeal by the Income Tax Department against a Punjab and Haryana High Court judgment that held that an Assessing Officer abdicated his quasi-judicial...
CENVAT Credit Not Available On Canteen, Sodexo Services Provided To Employees Post 2011: CESTAT Chennai
The Chennai Bench of the Customs, Excise and Service Tax Appellate Tribunal (CESTAT) has ruled that companies cannot claim CENVAT credit on employee welfare services after April 1, 2011, following a statutory amendment that expressly excluded such benefits. A coram of Judicial Member P. Dinesha and Technical Member Vasa Seshagiri Rao was deciding appeals filed by GE T&D India Ltd., a manufacturer of electrical and transmission equipment. The dispute covered April 2010 to March 2015. The...