Tax
Transfer Pricing Reference During Extended Reassessment Period Invalid: Madras High Court
The Madras High Court held that a reference to the Transfer Pricing Officer (TPO) made during the extended period available for completion of reassessment is invalid, rendering the proceedings time-barred. Justice C. Saravanan delivered the judgment while allowing a writ petition filed by Eaton Power Quality Private Limited which challenged the order passed by the TPO under Section 92CA(3) of the Income Tax Act by which the arm's length price of corporate service fees was determined at nil and...
Prior GST Payments To Authorities Can Be Adjusted Against Pre-Deposit For Filing Appeal: Allahabad High Court
The Allahabad High Court has recently held that any money deposited by a taxpayer with the GST authorities, in the facts of the case, prior to filing an appeal under Section 107 of the Goods and Services Tax Act, 2017, must be adjusted towards the mandatory pre-deposit required for filing the appeal.In the present case, an interest liability of Rs 1.43 Crore was raised against Excel Vehicles, a unit of My Auto World Kanpur Private Limited, against which the taxpayer preferred an appeal under...
Covid Customs Duty Exemption Covers Oxygen Concentrators, Not Just Ventilators: CESTAT, New Delhi
The New Delhi Bench of Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has held that oxygen concentrators are eligible for exemption from customs duty under the Covid-19 relief notification issued in April 2020 and that the benefit cannot be restricted only to ventilators. Thr tribunal set aside a duty demand of Rs. 36.66 lakh raised on Aspen Diagnostics Pvt. Ltd.The bench comprising President Justice Dilip Gupta and Technical Member C.J. Mathew observed that the...
Fraud Allegations Against CA Not Exceptional Ground To Invoke Writ Jurisdiction Against GST Demands: Punjab & Haryana High Court
The Punjab and Haryana High Court has declined to entertain a writ petition challenging GST demand orders raised against a manpower services firm, holding that its allegation that a Chartered Accountant misappropriated tax payments raised disputed questions of fact and did not constitute an extraordinary circumstance to bypass the statutory appellate remedy available under the GST law. A Division Bench of Justice Lisa Gill and Justice Ramesh Chander Dimri noted that the petitioner had itself...
S.74 CGST | Plea in Supreme Court Challenges GST Demands On Allegations Of Fraud In Cases Where Dept Alleges No Supply
A plea has been filed in the Supreme Court challenging the invocation of Section 74 of the Central Goods and Services Tax Act, 2017, a provision that allows tax authorities to raise demands of tax, interest, and penalty in cases of fraud or suppression, in situations where the department itself alleges that no taxable supply of goods or services ever took place. A Division Bench of Justice Pamidighantam Sri Narasimha and Justice Vijay Bishnoi took up the matter on January 30. The Bench directed...
Baggage Rules 2026 Allow Returning Indians To Bring Jewellery Upto 40 Gram Duty-Free
The Central Government has notified the Baggage Regulations, 2026, giving a limited category of international passengers a special duty-free allowance for jewellery. Under the Regulations , Indian residents and tourists of Indian origin who have lived abroad for more than one year can bring jewellery over and above their personal effects into India without paying customs duty, within specified limits. The allowance is upto 20gms for male passengers a 40gm for female passengers. Jewellery...
Supreme Court Allows ₹2.9 Crore GST Refund On Coal To SAIL, Rejects Revenue Challenge
The Supreme Court on 23 January 2026 dismissed a Special Leave Petition filed by the Revenue, challenging a refund of about Rs. 2.9 crore granted to the Steel Authority of India's (SAIL) Bokaro plant in the initial years of the GST rollout. A Division Bench of Justice J.B. Pardiwala and Justice K.V. Viswanathan upheld a decision of the Jharkhand High Court that allowed the refund of unutilised Input Tax Credit (ITC) of Compensation Cess on coal, despite a gross delay of 676 days. The Bench...
GSTAT Delhi Confirms ₹2.5 Lakh Profiteering By Kumar 70 MM For Ticket Price Hike Despite GST Cut
The Delhi Principal Bench of the Goods and Services Tax Appellate Tribunal (GSTAT) on 30 January 2026 held Hyderabad-based Kumar 70 MM cinema hall liable to deposit Rs. 2,50,148.39 for failing to pass on GST rate reduction benefits to customers. A Bench comprising Judicial Member Justice Mayank Kumar Jain found that the theatre had raised ticket prices above normal MRP despite a GST rate reduction from 18% to 12% for tickets up to Rs. 100 and from 28% to 18% for tickets above Rs. 100. The...
No Service Tax On Government-Supplied Water For Industrial Use: CESTAT Kolkata
The Kolkata Bench of the Customs, Excise and Service Tax Appellate Tribunal (CESTAT) has clarified that service tax is not leviable on water charges paid to the Government of Odisha for the supply of water drawn from a natural source for industrial purposes. The Tribunal ruled that such transactions amount to the supply of water and not the grant of a taxable licensing service. Bench comprising Judicial Member Ashok Jindal and Technical Member K. Anpazhakan, delivered the ruling in an appeal...
Karnataka High Court Quashes GST Demand On Solar Plant For Lack of Personal Hearing, Remands Matter
The Karnataka High Court has held that the denial of Input Tax Credit (ITC) on capital goods and input services used for setting up a captive solar power plant is unsustainable where the adjudicating authority acted without jurisdiction and in violation of the mandatory requirement of granting a personal hearing under Section 75(4) of the CGST Act. A Single Judge Bench of Justice Lalitha Kanneganti, passed the order on 21 January 2026, setting aside the GST demand raised against Shri Keshav...
Indirect Tax Weekly Round-Up: January 26 - February 01, 2026
SUPREME COURTSupreme Court Upholds Odisha Entry Tax Act, Dismisses Tata Sponge Iron's ChallengeCase Title : Tata Sponge Iron Ltd. vs the State of Odisha & Ors. Case Number : SLP(C) NO. 13502/2019 CITATION : 2026 LLBiz SC 24The Supreme Court on Tuesday dismissed Tata Sponge Iron Limited's challenge to the constitutional validity of the Odisha Entry Tax Act, 1999, and upheld the Orissa High Court's refusal to entertain the plea. The company had also sought a refund of entry tax collected by...
Direct Tax Weekly Round-Up: January 26 - February 01, 2026
SUPREME COURTSupreme Court Issues Notice In Appeal Against Order Quashing IT Assessments On Entities Merged Into Reliance IndustriesCase Title : Deputy Commissioner of Income Tax, Special Range-18, Mumbai v. Reliance Industries Limited Case Number : Diary No. 67659-2025The Supreme Court on Tuesday issued notice on an appeal filed by the Revenue challenging a Bombay High Court ruling that had quashed income tax assessments against Reliance Polyethylene Ltd. and Reliance Polypropylene Ltd....