Gujarat High Court Upholds CESTAT's Order Rejecting Plea To Restore Delay Condonation Application Filed After 7 Yrs

The Gujarat High Court upheld an order of the Customs, Central Excise and Service Tax Appellate Tribunal which had dismissed a cooperative society's plea seeking restoration of its condonation of delay application on the ground that it was filed after an inordinate delay of 7 years.The court noted that the petitioner had not provided any explanation for such delay except that it was facing a financial constraint and thus could not track the proceedings before the tribunal, observing that the...

Service Tax | Penalty U/S 78A Cannot Be Imposed On Director Without Proof Of Knowledge Or Wilful Default: CESTAT Mumbai

The Mumbai Bench of Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) held that a penalty under Section 78A of the Finance Act, 1994, cannot be imposed on a director unless it is established that the director was responsible for the company's business and was knowingly involved in the tax evasion. C J Mathew (Technical Member) referred to Section 78A of the Finance Act, 1994 and noted that the prerequisites for imposition of penalty under Section 78A of the Finance Act,...

Customs | Penetrating Oil Not Adulterated Diesel Unless Revenue Proves Adulteration; Higher Duty Demand Unsustainable: CESTAT Mumbai

The Mumbai Bench of Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) held that merely because penetrating oil contains petroleum fractions exceeding 70%, it cannot be treated as adulterated diesel unless the revenue proves actual adulteration. Dr. Suvendu Kumar Pati (Judicial Member) and M.M. Parthiban (Technical Member) stated that ……In the penetrating oil, the basic elements of which are more than 80% petroleum hydrocarbon and other additives, the presence of more than...

Transfer Pricing | Comparables With Non-Export Operations Can't Be Benchmarked Against Export-Only Assessee: Delhi High Court

The Delhi High Court has made it clear that companies engaged in activities beyond export services cannot be treated as functionally comparable to an assessee providing export-only services.A Division Bench of Justices V. Kameswar Rao and Vinod Kumar thus upheld exclusion of such entities for the purpose of transfer pricing analysis qua an assessee engaged in providing investment advisory services to its Associated Enterprises (AE) in Mauritus.The Court was dealing with the Income Tax...

Tree Plantation & Maintenance In Non-Forest Areas By Charitable Trust Exempt From GST: Gujarat AAR

The Gujarat Authority for Advance Ruling (AAR) has granted exemption to tree plantation and maintenance of them by a Trust in non-forest arears like unutilized barren lands, roadsides, amidst lane dividers, on private lands and every other available patch in its reach. In a recent ruling Mr. Vishal Malani (Member- Central Tax) and Ms. Sushma Vora (Member- State Tax) has held that Entry No. 1 of Notification No. 12/2017 was applicable to tree plantation and maintenance by the Applicant...

Gujarat High Court Grants Relief After Transfer Pricing Objections Were Mistakenly Filed Before Wrong Authority, Quashes Final Assessment

The Gujarat High Court recently granted relief to a company which had inadvertently filed its objections to a proposed transfer pricing adjustment for Assessment Year 2022-23 before the jurisdictional assessing officer instead of filing it before the faceless authority.The petitioner had sought quashing of final Assessment Order dated 02.05.2025 passed under Section 143(3) read with Section 144C (3) and Section 144B of the Income Tax Act, for Assessment Year 2022-23. The petitioner...

CBI Court Convicts Central Excise Inspector In Disproportionate Assets Case, Awards 5 Yrs Imprisonment & ₹63 Lakh Fine; Wife Jailed For Abetment

The Central Bureau of Investigation (CBI) Court in Ahmedabad on December 29, 2025, convicted and sentenced an Inspector, Central Excise and Service Tax, Bhavnagar, to five years' rigorous imprisonment along with a fine of ₹63 lakh in a disproportionate assets case. The court also sentenced his wife to one year's imprisonment with a fine of ₹50,000 for abetment of the offence. The accused was earlier posted as an Appraiser/Preventive Officer at the Kandla Special Economic Zone...

"Health Security Se National Security" Cess On Pan Masala, Tobacco Manufacturing Enforceable From Feb 01

The Ministry of Finance, Department of Revenue has notified February 01, 2026, as the date for enforcement of the Health Security Se National Security Cess Act, 2025 levying a Health Security se National Security Cess on machines used in manufacture of pan masala and similar items. The Health Security Se National Security Cess Act, 2025 (the Act) requires a manufacturer to self-declare all machines or processes for each factory or premises. It mandates verification of declarations by...

Income Tax Act | Long Term Capital Gains Exemption Available Even If Residential House Was Demolished Before Sale: Madras High Court

The Madras High Court held that the Long-Term Capital Gains exemption under Section 54 of the Income Tax Act cannot be denied merely because the residential house was demolished before its sale. The bench stated that since the sale took place later and the assessee reinvested the capital gains in another house within the prescribed time, the exemption is allowable. Section 54 of the Income Tax Act, 1961, provides a Long-Term Capital Gains (LTCG) exemption when an individual or HUF...

MCA Extends Deadline For Filing Financial Statements, Annual Returns Under Companies Act Till January 31, 2026

The Ministry of Corporate Affairs, on 30th December, 2025, extended the deadline for filing Financial Statements and Annual Returns under the Companies Act, 2013, up to 31st January, 2026. Initially, the due date for filing financial statements and annual returns for F.Y. 2024-25 was till 31st December, 2025. The decision was taken after representations were received from stakeholders expressing difficulties in completing the filings within the prescribed timeline. As per the...

GST Demand Stayed As Audit Report Issued By Unauthorised Officer: Orissa High Court Finds Prima Facie Jurisdictional Defect

The Orissa High Court has stayed further proceedings arising from a Goods and Services Tax (GST) demand-cum-show cause notice issued under Section 73 of the Central Goods and Services Tax Act, 2017, after finding a prima facie jurisdictional defect in the audit process that formed the basis of the demand. The interim order was passed in a writ petition which challenged an audit notice and a consequential demand-cum-show cause. The demand was issued following an audit report...

ITAT Delhi Approved Amalgamation And Consistent Expense Allocation Cannot Be Used To Deny Section 80-IC Deduction

The Delhi Bench of Income Tax Appellate Tribunal has upheld substantial tax relief granted to Mahle Filters Systems (India) Ltd. for Assessment Year 2010–11, rejecting the Revenue's challenge to the company's deduction claimed under Section 80-IC of the Income Tax Act. A Bench comprising Vice President Mahavir Singh and Accountant Member Krinwant Sahay, while deciding cross-appeals filed by the assessee and the Revenue, held that the tax department was not justified in treating the...