Delhi High Court Quashes Reassessment, Special Audit Against Huawei For AY 2013-14; Upholds Reopening For AY 2015-16

The Delhi High Court has granted partial relief to Huawei Telecommunications (India) in a batch of petitions challenging special audit directions and reassessment proceedings initiated by the Income Tax Department.A Division Bench of Justices V. Kameswar Rao and Vinod Kumar partly allowed the petitions, setting aside the special audit directions and reassessment notices for Assessment Year (AY) 2013-14, while sustaining the proceedings for AY 2015-16.The case arose from a search and seizure...

Limitation To Pass Transfer Pricing Order Cannot Be Extended By Treating Remand As Fresh Reference: Karnataka High Court

Rejecting the income tax department's attempt to treat a Tribunal remand as a fresh transfer pricing reference to extend limitation, the Karnataka High Court has held that no order can be passed once the statutory time limit expires. A single-judge bench of Justice Nagaprasanna emphasised that there is a “world of difference” between a reference made by the Assessing Officer to the Transfer Pricing Officer under Section 92CA(1) and a remand of the matter by the Tribunal, rejecting the Revenue's...

Karnataka High Court Holds Bona Fide Purchaser Entitled To ITC, Reads Down Rules In Favor Of Instakart

The Karnataka High Court on 9 February 2026 held that a bona fide purchaser cannot be denied input tax credit (ITC) merely because the selling dealer failed to deposit tax with the government. A Single-Judge Bench of Justice S.R. Krishna Kumar read down Section 16(2)(C) of the CGST / KGST Act and Rule 36(4) of the CGST / KGST Rules to set aside the order denying ITC to Instakart Services Private Limited. He held: “The impugned provisions contained in Section 16(2)(C) of the CGST / KGST Act...

No Service Tax On Invoices Issued Before Completion Of Work: CESTAT Allahabad

The Allahabad Bench of the Customs, Excise & Service Tax Appellate Tribunal (CESTAT) on 30 March held that service tax is not payable on invoices issued before completion of work. A Bench comprising Judicial Member P.K. Choudhary and Technical Member P. Anjani Kumar allowed an appeal by APN Infra Pvt. Ltd., observing: “Invoice is required to be issued within 30 days after completion of the service or on receipt of payment towards value of taxable service.” APN Infra, a works contractor,...

Earthen Roofing Tiles By Khadi Board-Recognised Unit Qualify For VAT Exemption: Kerala High Court

The Kerala High Court on 12 March held that earthen roofing tiles manufactured by a unit recognised and financed by the Kerala Khadi and Village Industries Board are eligible for tax exemption as “pottery” under the KVAT Act. A Division Bench comprising Justices Devan Ramachandran and Basant Balaji set aside tax demands raised against Annamanada Kalimon Vyavasaya Sahakarana Sangham Ltd., a cooperative society engaged in manufacturing clay products in Thrissur. The Bench observed: “We allow...

No Service Tax On Commission Paid To Foreign Agents For Services Outside India: CESTAT Bangalore

The Bangalore Bench of the Customs, Excise & Service Tax Appellate Tribunal (CESTAT) on 24 March held that no service tax is payable under the reverse charge mechanism on commission paid to foreign agents where the services are rendered and received outside India. A Bench comprising Judicial Member Mr. P.A. Augustian and Technical Member Mrs. R. Bhagya Devi observed: “Since the services are rendered abroad and not received in India, the question of liability to pay service tax under...

Sub-Contractor Cannot Be Denied Customs Exemption For Non-Mention In Main Agreement: CESTAT Bangalore

The Bangalore Bench of the Customs, Excise & Service Tax Appellate Tribunal (CESTAT) on 24 March held that exemption under Notification No. 12/2012-Cus cannot be denied to a sub-contractor merely because their name does not appear in the main concession agreement, where its role is otherwise established on record. A Bench comprising Judicial Member Dr. D.M. Misra and Technical Member Mr. Pullela Nageswara Rao observed that the condition of being a “named sub-contractor” stands satisfied if...

Invoice Errors Cannot Block CENVAT Credit If Receipt And Use of Goods Are Proven: CESTAT Bangalore

The Bangalore Bench of the Customs, Excise & Service Tax Appellate Tribunal (CESTAT) on 24 March clarified that minor discrepancies in invoices cannot justify denial of CENVAT credit where the receipt and use of goods are duly established. A Bench comprising Judicial Member Dr. D.M. Misra and Technical Member Pullela Nageswara Rao held that the denial of credit to Kavveri Telecom Products Ltd., the appellant, was unjustified, as it had produced sufficient documentary evidence demonstrating...

Tax Exemptions Are 'Defeasible' Concessions, Not Enforceable Rights: Supreme Court

Holding that a tax exemption is only a “defeasible” concession, the Supreme Court has ruled that beneficiaries have no legally enforceable right to its continuation beyond the period of grant and that such benefits can be withdrawn by the State in public interest.A bench of Justices Pamidighantam Sri Narasimha and Alok Aradhe was allowing appeals filed by the State of Maharashtra against a batch of industrial units and captive power producers, including Reliance Industries Ltd., challenging...

Uttarakhand High Court Declines Bajaj Auto Writ Against GST Order; Pre-Deposit Requirement Not Ground To Bypass Appeal

The Uttarakhand High Court has declined to entertain a writ petition filed by Bajaj Auto Limited challenging a GST adjudication order, holding that the requirement of pre-deposit for availing the appellate remedy cannot be a ground to bypass the statutory appeal mechanism under the GST Act. The bench of Chief Justice Manoj Kumar Gupta and Justice Subhash Upadhyay noted that an effective alternative remedy of appeal was available against the impugned order and, in such circumstances,...

Excise Appeals To High Court On Substantial Questions Of Law Maintainable After NTT Act Struck Down: Patna High Court

The Patna High Court has recently held that appeals to High Courts in central excise matters involving substantial questions of law remain maintainable after the Supreme Court struck down the National Tax Tribunal Act, 2005, which had omitted the provision providing for such appeals. The court held that “The earlier provision mentioned in Section 35G of the Central Excise Act, 1944, Section 130 of the Customs Act, 1962 (52 of 1962) as well as any other provisions of law which were omitted by...

Union Budget 2026-27: Centre Notifies Finance Act, 2026

The Central Government has notified the Finance Act, 2026, giving statutory effect to the budget proposals for the financial year 2026-27 after receiving presidential assent on March 30, 2026. The Act, published in the Gazette of India, states, "An Act to give effect to the financial proposals of the Central Government for the financial year 2026-27.” Most provisions of the legislation will come into force from April 1, 2026, including those relating to income-tax rates and amendments to...