Tax
GSTAT Delhi Upholds ₹90.9 Lakh Profiteering Finding Against Wai Wai Noodles Maker
The Goods and Services Tax Appellate Tribunal at Delhi has ordered C.G. Foods, the maker of Wai Wai instant noodles, to deposit Rs. 90.9 lakh after holding that the benefit of a GST rate cut was not passed on to consumers. The order was passed by a single-member bench of Anil Kumar Gupta, which agreed with the findings of the Director General of Anti-Profiteering that the company increased base prices even after the tax rate on instant noodles was reduced from 18% to 12% with effect from...
Delhi High Court Intervenes Against CESTAT Release Order On 53 Kgs Of Imported Gold
The Delhi High Court on 16 January 2026 issued an ad-interim order, effectively intervening against a CESTAT order which had granted the provisional release of gold to Shree Gold Art Pvt. Ltd.Justice Nitin Wasudeo Sambre and Justice Ajay Digpaul noted that prima facie, the Tribunal order dated 17 March 2025, had failed to consider the fact and legal effect of 53 kilograms of imported gold being kept in unauthorised custody for four days, from 13 August 2020 to 17 August 2020 The...
Tax Authority Cannot Deny Interest Waiver Through A Cryptic Order: Karnataka High Court
The Karnataka High Court recently held that a tax authority cannot deny a taxpayer's request for interest waiver through a cryptic order. It must pass a reasoned, speaking order after objectively examining whether the income could have been anticipated at the relevant time. A Bench of Justice K.S. Hemalekha, partly allowed a writ petition filed by Kanhaiyalal Dudheria (petitioner) and partially set aside an order of the Chief Commissioner of Income Tax, that allowed waiver of the second and...
Superintendent Cannot Adjudicate Cases Involving Extended Limitation: Calcutta High Court
The Calcutta High Court on 2 February held that cases that invoke the extended period of limitation are expressly excluded from the adjudicatory powers of a Superintendent, even if the demand falls within their monetary limit. Justice Om Narayan Rai, allowed a writ petition filed by the partners of Radiant Security, challenging an order by which the Superintendent, CGST, demanded service tax of Rs. 72,000 along with education cess and secondary and higher secondary cess, and imposed penalties...
No Additions On Mere Suspicion When Shareholders In Capital Assessments Are Traceable: Calcutta High Court
The Calcutta High Court on 4 February held that in share capital assessments, income tax additions cannot be sustained on mere suspicion, when the investors are identifiable, the taxpayers and share subscriptions are backed by audited records, and clear there are clear banking trails for transactions. A Division Bench of Justice Rajarshi Bharadwaj and Justice Uday Kumar dismissed an appeal filed by the Principal Commissioner of Income Tax, Kolkata, against Express Tradelink Pvt. Ltd....
Supreme Court Lets LG Electronics Withdraw Challenge To Rajasthan HC Entry Tax Ruling
The Supreme Court on Wednesday permitted LG Electronics India Pvt. Ltd. to withdraw its Special Leave Petitions challenging a Rajasthan High Court ruling on entry tax, granting it liberty to seek a review before the High Court as the constitutional validity of the provision remains pending. A Bench of Justices Pamidighantam Sri Narasimha and Alok Aradhe recorded the submission that the vires of the provision had not been examined in the proceedings leading to the impugned judgment, since...
DMF, NMET Contributions Form Part Of Mining Royalty; GST Only On NMET: Telangana AAAR
The Telangana State Appellate Authority for Advance Ruling (AAAR) has held that statutory payments made to the District Mineral Foundation and the National Mineral Exploration Trust are not voluntary contributions. It ruled that these payments are mandated amounts linked to mining royalty and made in the course and furtherance of business. GST, however, is payable only on NMET contributions and not on payments made to DMF. A coram of Central Tax Member Sanjay Rathi and State Tax Member M....
Supreme Court Issues Notice On Vedanta's Appeal Against Denial Of Interest On Delayed Export Duty Refund
The Supreme Court of India on Monday issued notice in a civil appeal filed by Vedanta Limited challenging a judgment of the Calcutta High Court, which denied interest on a delayed refund of export duty, holding that statutory interest under the Customs Act becomes payable only after a valid refund application is filed. A Bench of Justices Manoj Misra and Manmohan condoned the delay. It directed issuance of notice, returnable in six weeks. The order records: “Delay condoned. Issue notice,...
Are Skin & Hair Care Treatments Taxable As Cosmetic Surgery? CESTAT Delhi Seeks Fresh Examination
The Delhi Bench of the Customs, Excise and Service Tax Appellate Tribunal (CESTAT), on 30 January, asked the lower authorities to re-examine whether skin and hair care treatments provided by a clinical establishment qualify as “Cosmetic and Plastic Surgery Services” and are therefore liable to service tax. A Bench comprising Judicial Member Binu Tamta and Technical Member Rajeev Tandon was examining an appeal filed by Trichoderm, a Delhi-based clinical establishment operating under the brand...
Supreme Court Refuses To Interfere With Delhi HC Ruling On CST Exemption For Inter-State Sales In Mitsubishi Case
The Supreme Court of India has refused to interfere with a Delhi High Court ruling that allowed a tax exemption claimed by Mitsubishi Corporation India for inter-state sales, rejecting the tax department's argument that the benefit was unavailable because an earlier sale of the goods was already exempt from tax. A bench of Justices J.B. Pardiwala and R. Mahadevan said the case did not warrant interference. “We see no good reason to interfere in the impugned judgment and order passed by the High...
Police Security Services Exempt From Service Tax Prior To June 2012: Madras High Court
The Madras High Court has allowed a plea seeking service tax exemption for police guard charges and escort duties, holding that such activities carried out by the State Police do not fall within the service tax net prior to 1 June 2012.A Division Bench of Justice Anita Sumanth and Justice Mummineni Sudheer, in a judgment delivered on 12 December 2025, examined service tax liability by referring to the definition of 'person' under the General Clauses Act.They noted that the Service Tax law...
Indirect Tax Monthly Digest: January 2026
SUPREME COURTCustoms Act | Statutory Tariff Headings And HSN Notes Prevail Over Common Parlance In Customs Classification : Supreme CourtCause Title: COMMISSIONER OF CUSTOMS (IMPORT) VERSUS M/S WELKIN FOODSCitation : 2026 LiveLaw (SC) 17The Supreme Court on Tuesday (January 6) observed that the 'Aluminum Shelves' imported for mushroom cultivation cannot be classified as 'parts of agricultural machinery' but are liable to be classified as 'aluminium structures', attracting a customs duty.A bench...