Andhra Pradesh High Court Holds State GST Cannot Assess IGST On Imports, Quashes Notice Against Avanti Feeds

The Andhra Pradesh High Court on 1 April set aside a show-cause notice issued to Avanti Feeds Limited, holding that State GST authorities have no jurisdiction to assess or recover Integrated GST (IGST) on imported goods. A Division Bench comprising Justice R. Raghunandan Rao and Justice T.C.D. Sekhar ruled that such powers vest exclusively with customs authorities under the Customs Act. The Bench observed: “Another aspect of this matter which would also require to be noticed is the language of...

ITAT Ahmedabad Condones 153-Day Delay By Senior Citizen Unaware Of Tax Procedure, Orders Fresh Hearing

The Ahmedabad Bench of the Income Tax Appellate Tribunal (ITAT) on 23 March, held that delay in filing an appeal by a lady senior citizen constituted a sufficient and reasonable cause, and restored the matter for fresh adjudication. A Bench comprising Judicial Member Suchitra Kamble and Accountant Member Annapurna Gupta condoned a delay of 153 days, observing that the taxpayer's unfamiliarity with income tax procedures and technology justified the delay. The Bench observed: “Considering the...

Production Work For Broadcaster Liable To Service Tax Even With Copyright Transfer: CESTAT Chennai

The Chennai Bench of the Customs, Excise and Service Tax Appellate Tribunal (CESTAT) on 2 April, held that service tax is leviable on the production of a television serial on behalf of a broadcaster under “programme producer's service”, even where the agreement provides for perpetual assignment of copyright. A Bench comprising Technical Member M. Ajit Kumar and Judicial Member Ajayan T.V. dismissed the appeal filed by Sathya Jyothi Films and upheld the service tax demand with interest and...

CESTAT Hyderabad Upholds Service Tax On Services Received From Abroad Classified As IPR

The Hyderabad Bench of the Customs, Excise and Service Tax Appellate Tribunal (CESTAT) on 2 April, held that services received from abroad classified as Intellectual Property Rights (IPR) services attract service tax.A Bench comprising Technical Member A.K. Jyotish and Judicial Member Angad Prasad partially allowed an appeal by MLR Motors Ltd, allowing the taxpayer to discharge such liability through CENVAT credit for the period prior to 1 July 2012. The Tribunal observed:“the services...

Mere Sale Of Advertising Space Without Creative Input Not Taxable Under Finance Act: CESTAT Chennai

The Chennai Bench of the Customs, Excise and Service Tax Appellate Tribunal (CESTAT) on 2 April held that mere sale of advertising space, without any element of designing, conceptualising or preparing advertisements, does not amount to taxable “advertising agency service” under the Finance Act, 1994. A Bench comprising Technical Member M. Ajit Kumar and Judicial Member Ajayan T.V. held: “under Section 65(3) of the Finance Act, 1994, service tax applies only where services of making,...

LiveLawBiz Direct Tax Quarterly Digest: January - March, 2026

SUPREME COURTSupreme Court Dismisses Revenue Plea Against Gujarat HC Order Quashing Adani Wilmar Income Tax ReassessmentCase Title : THE ASSISTANT COMMISSIONER OF INCOME TAX CIRCLE 1(1)(1) Vs ADANI WILMAR LIMITED Case Number : SLP(C) 4944/2026 CITATION : 2026 LLBiz SC 35The Supreme Court on Monday refused to interfere with a Gujarat High Court judgment that had quashed the reopening of Adani Wilmar Limited's income tax assessment for the 2013–14 assessment year, dismissing a special leave...

Service Tax Payable On Manpower Supply To Government Hospitals: CESTAT Delhi Upholds ₹64.61 Lakh Demand

The Customs, Excise and Service Tax Appellate Tribunal (CESTAT), New Delhi, has upheld a service tax demand of Rs 64,61,530 against a firm supplying manpower to Government hospitals. The tribunal held that the appellant was not eligible for the benefit of the reverse charge mechanism under a 2012 notification, as the service recipients were not “business entities registered as a body corporate.” A coram of Judicial Member Dr. Rachna Gupta and Technical Member Hemambika R. Priya dismissed the...

CESTAT Bangalore Sets Aside ₹1.52 Crore Excise Demand, Rejects Arbitrary Profit Loading In Job Work Valuation

The Customs, Excise & Service Tax Appellate Tribunal (CESTAT), Bangalore, has recently set aside a demand exceeding Rs. 1.52 crore, holding that the valuation of goods manufactured through job work and sold to job workers cannot be determined on arbitrary assumptions. The tribunal ruled that where goods are cleared on a principal-to-principal basis and price is the sole consideration under Section 4(1)(a) of the Central Excise Act, the transaction value must be accepted.The ruling was...

Delhi High Court Pulls Up Income Tax Department For Pursuing Tax Dues After Nine-Year Slumber, Quashes Notice

The Delhi High Court has recently pulled up the Income Tax Department for waking up after nine years to pursue tax dues, calling it “difficult nay impossible” to believe such prolonged inaction, and quashed the notice issued to APS Hydro Private Limited. A division bench of Justice Dinesh Mehta and Justice Vinod Kumar was dealing with a writ petition against a notice dated February 16, 2022, and a follow-up communication issued on May 12, 2022, by the Assistant Commissioner of Income Tax, which...

Bombay High Court Sets Aside ITC Block On Suspicion Of Ineligible Credit, Says It Ceases After One Year

The Bombay High Court has recently set aside the blocking of Input Tax Credit (ITC) of NZS Traders Pvt. Ltd., holding that such a restriction made on apprehension of fraud cannot continue beyond one year and ceases to operate by law. A Bench of Justice G. S. Kulkarni and Justice Aarti Sathe explained that Rule 86A empowers GST authorities to block a taxpayer from using the credit available in its electronic credit ledger if they have reasons to believe that the credit has been wrongly or...

Bombay High Court Sets Aside GST Order Passed Before Scheduled Date Of Hearing

The Bombay High Court has set aside a GST adjudication order passed even before the scheduled date of hearing, holding that it was vitiated by a breach of natural justice. A bench of Justices G S Kulkarni and Aarti Sathe held that the order was passed before the scheduled hearing date fixed in the show cause notice. “The impugned order, however, was passed on 30 March 2022 in regard to which, admittedly, no hearing was granted to the petitioner as also no opportunity to file reply to the said...

State GST Authorities Cannot Detain Or Confiscate Goods Merely In Transit: Andhra Pradesh High Court

The Andhra Pradesh High Court held on 1 April that State GST authorities cannot invoke detention or confiscation powers for goods merely passing through the State in the course of inter-State trade, including on grounds such as valuation discrepancies or mismatch in quantity. A Division Bench of Justices R. Raghunandan Rao and T.C.D. Sekhar held that such action exceeds jurisdiction in cases involving inter-State movement under the IGST framework. The Court stated: "Amounts rightfully due to...