Tax
Bombay High Court Orders No Coercive Action Against Anil Ambani Pending Challenge To Black Money Act
The Bombay High Court on Monday directed that no coercive action, including prosecution or penalty proceedings, be taken against industrialist Anil Ambani pending the final disposal of his writ petition challenging certain provisions of the Black Money (Undisclosed Foreign Income and Assets) and Imposition of Tax Act, 2015. Ambani has challenged certain provisions of the Act as being ultra vires the Constitution of India. A division bench of Justices B.P. Colabawalla and Firdosh P. Pooniwalla...
Kerala High Court Quashes GST Notice Issued For Multiple Assessment Years Through Single Proceeding
On 1 June, the Kerala High Court held that the GST Department cannot issue a composite show-cause notice covering more than one assessment year, as such a notice is legally unsustainable and cannot form the basis of adjudication. Justice Ziyad Rahman A.A. quashed the show-cause notice and the consequential Order-in-Original issued against Malabar Trade Links, while granting liberty to the GST Department to initiate fresh proceedings in accordance with law. He held: “The Division Bench has...
ITAT Delhi Quashes Antriksh Group Assessments Over Mechanical Search Assessment Approval
The Delhi Bench of the Income Tax Appellate Tribunal (ITAT) has recently reiterated that approval required before search assessments are finalised must reflect independent application of mind and cannot be accorded mechanically through a common approval covering multiple assessees and assessment years. Holding that the approval granted in the present case suffered from non-application of mind, the Tribunal quashed assessments framed against various entities and individuals belonging to the...
CESTAT Allows SPI Technologies' ₹2.47 Crore Refund On Export Services Despite CENVAT Reversal
On 8 June, the Chennai Bench of the Customs, Excise & Service Tax Appellate Tribunal (CESTAT) held that refund of service tax paid on input services used for export of services cannot be denied merely because CENVAT credit was initially availed and later reversed, or due to procedural lapses such as delayed filing of declarations. Technical Member M. Ajit Kumar and Judicial Member Ajayan T.V. allowed the appeal filed by SPI Technologies India Pvt. Ltd., a Software Technology Park of India...
Construction of Educational Institutions Not Taxable Before 1 July 2012: CESTAT Chennai
On 8 June, the Chennai Bench of the Customs, Excise & Service Tax Appellate Tribunal (CESTAT) held that works contract services used for construction of educational institutions were not liable to service tax during the relevant period prior to 1 July 2012, and dismissed the Revenue's appeal challenging the non-levy. Technical Member M. Ajit Kumar and Judicial Member Ajayan T.V. decided the appeal filed by the Department against R.R. Thulasi Builders (India) Pvt. Ltd. The Bench held: ...
Kerala HC Directs CIT To Reconsider Registration Of Trust From 2021, Examines CBDT Circular 7/2024
On 4 June, the Kerala High Court directed the Commissioner of Income Tax (Exemptions) to reconsider a Atma Bodhodaya Sangham Sree Subhananda Trust's claim for registration under Section 12A of the Income Tax Act with effect from 1 April 2021, after examining the applicability of CBDT Circular No. 7/2024 on rectification of defective exemption applications. A Division Bench of Justices Devan Ramachandran and Basant Balaji set aside the orders of the Income Tax Appellate Tribunal (ITAT) and the...
Kerala HC Holds ISD Optional Before 2024 Amendment; Quashes ₹1.31 Cr. GST Demand Against Intertek
On 8 June, the Kerala High Court held that, prior to the Finance Act, 2024 amendment to the Central Goods and Services Tax Act, companies were not required to distribute input tax credit (ITC) among distinct units through the Input Service Distributor (ISD) mechanism. Justice Ziyad Rahman A.A. allowed a writ petition filed by Intertek India Pvt. Ltd. and quashed an order passed under Section 74 of the CGST Act that demanded over Rs.1.31 crore in GST and penalty on allegations of fraud,...
Uttarakhand HC Quashes GST Demand, Says Portal-Only Service Invalid After Registration Cancellation
The Uttarakhand High Court has reiterated that where a taxpayer's GST registration has already been cancelled, service of a Show Cause Notice and adjudication order solely through the GST portal cannot be treated as valid service under the GST law. A division bench comprising Chief Justice Manoj Kumar Gupta and Justice Subhash Upadhyay held that once registration stands cancelled, a taxpayer cannot be expected to continuously monitor the GST portal for notices and orders. Referring to the...
Rule 16 Does Not Require Return Of Remade Goods To Original Buyer To Avail CENVAT Credit: CESTAT Mumbai
The Mumbai Bench of the Customs, Excise and Service Tax Appellate Tribunal (CESTAT) on 3 June held that CENVAT credit on duty-paid goods returned to a factory cannot be denied merely because the re-manufactured machine was supplied to a different customer and not to the buyer who had originally returned the goods. A Single Member Bench comprising Judicial Member Dr. Suvendu Kumar Pati allowed the appeal filed by Grafica Flextronica and set aside a demand of Rs. 23.40 lakh along with interest...
US Court Strikes Down Trump's $100,000 H-1B Levy, Says It Was A Tax, Not Visa Fee
A federal court in Massachusetts has struck down President Donald Trump's $100,000 payment requirement for new H-1B visa petitions. The Court granted summary judgment to a coalition of 20 states led by California and vacated the federal policy implementing the measure. Judge Leo T. Sorokin of the US District Court for the District of Massachusetts held that the payment requirement functioned as a tax. The Court further held that the Executive lacked authority under the provisions relied upon by...
CESTAT Mumbai Bars Customs From Rejecting Declared Value, Upholds Relief For Adani Entities
On 5 June, the Mumbai Bench of the Customs, Excise and Service Tax Appellate Tribunal (CESTAT) held that customs authorities cannot reject the declared transaction value of imported goods when they rely on allegations of overvaluation arising from the same Directorate of Revenue Intelligence (DRI) investigation and evidence that earlier proceedings had already rejected and the Supreme Court had affirmed. President Justice Dilip Gupta and Technical Member P. Anjani Kumar dismissed six appeals...
CESTAT New Delhi Allows CENVAT Credit On Ore Crushing Services Used In Manufacturing Process
The Principal Bench of the Customs, Excise & Service Tax Appellate Tribunal (CESTAT), New Delhi on 5 June 2026 held that services used for crushing mined iron ore and removing unwanted material before the ore reaches the factory qualify as “input services” for CENVAT credit, as they directly connect with the manufacturing process. President Justice Dilip Gupta and Technical Member P. V. Subba Rao allowed the appeal filed by Godawari Power & Ispat Ltd. and set aside the demand, interest,...