Assessing Officer Can't Become An Economist To Question Expected Return In Share Valuation: Delhi High Court

The Delhi High Court has held that an Assessing Officer (AO) cannot act as an economist to determine the expected rate of return while examining a company's share valuation.The Division Bench of Justices Dinesh Mehta and Rajneesh Kumar Gupta added that while the AO may identify flaws in the valuation methodology adopted by a taxpayer, he cannot substitute the commercial assumptions underlying a recognized valuation method with his own.The Court made the observations while dismissing the Income...

LiveLawBiz Indirect Tax Weekly Round-Up: August 03 - August 09, 2026

SUPREME COURTXerox's 'Kitting' Of Imported Photocopier Modules Is Not 'Manufacture': Supreme Court Upholds CESTAT RulingCase Title : Commissioner of Central Excise, Hyderabad-IV v. M/s Xerox India Ltd. & Ors. Case Number : Civil Appeal Nos. 5939–5941 of 2010 CITATION : 2026 LLBiz SC 257The Supreme Court has held that Xerox India's practice of grouping, plugging and pinning imported photocopier modules according to customers' requirements, commonly known as "kitting", did not amount to...

LiveLawBiz Direct Tax Weekly Round-Up: August 03 - August 09, 2026

SUPREME COURTCruise Does Not Cease To Be 'Carriage Of Passengers' Under Income Tax Act Because Of Onboard Hospitality: Supreme CourtCase Title : THE DIRECTOR OF INCOME TAX,(INTERNATIONAL TAXATION) VS M/S STAR CRUISES (INDIA) P. LTD. Case Number : Civil Appeal Nos. 3334-3336/2012 CITATION : 2026 LLBiz SC 259The Supreme Court has recently ruled that hospitality and entertainment offered on board a cruise do not alter the essential nature of the activity as the carriage of passengers under the...

Director Cannot Be Prosecuted For Company's GST Offence Without Arraigning It: Punjab & Haryana High Court

The Punjab and Haryana High Court has held that a director cannot be prosecuted for a company's GST offence without the company itself being arraigned as an accused. It quashed the criminal complaint against Manoj Bansal, a director of Nikita Industries Pvt. Ltd.Justice Shalini Singh Nagpal observed, “In the absence of M/s NIPL, being arraigned as an accused, the complaint against petitioner, a Director of the Company would not be maintainable. Unless the company is prosecuted, no vicarious...

Delhi High Court Orders Banks To De-freeze Provisional GST Attachments After 1 Year Unless Fresh Order Served

The Delhi High Court has directed all banks and financial institutions to de-freeze bank accounts provisionally attached under Section 83 of the Central Goods and Services Tax Act, 2017 (CGST Act), upon the expiry of one year from the date of attachment, unless a fresh attachment order is issued in accordance with law.The Division Bench of Justices Anil Kshetrapal and Shail Jain also directed the Reserve Bank of India (RBI) to issue a circular to all scheduled banks and financial institutions to...

Delhi High Court Accepts Customs Apology For Failing To Video-Record Statement In Gold Seizure Case

The court, however, cautioned the Customs Department to be careful in future and comply with its directions scrupulously, as no directions can be taken lightly

Missing Shipping Bills Cannot Deny IGST Refund For Bhutan Exports: CESTAT Kolkata

On 10 August, the Kolkata Customs, Excise and Service Tax Appellate Tribunal (CESTAT) held that failure to file Shipping Bills for exports to Bhutan, particularly during the initial implementation of the Goods and Services Tax (GST) regime, could not justify denial of Integrated Goods and Services Tax (IGST) refund where the actual export of goods and payment of IGST were undisputed. A Single Member Bench comprising Justice (Retd.) R. Muralidhar set aside the rejection of refund and Rs. 1 lakh...

Penalties For Service Tax Default, Suppression Cannot Be Imposed Together: CESTAT Chandigarh

The Customs, Excise and Service Tax Appellate Tribunal (CESTAT), Chandigarh, has held that penalties for failure to pay service tax and for suppressing facts with an intent to evade tax cannot be imposed at the same time.The tribunal set aside the penalty for failure to pay service tax, holding that it could not be imposed alongside the penalty for suppression of facts with an intent to evade tax because the two were mutually exclusive.“As regards the penalty under Section 76, we hold that once...

Customs Duty Exemption On Flavour Compound Cannot Be Denied On Alcohol Content Alone: CESTAT Bengaluru

The Customs, Excise and Service Tax Appellate Tribunal (CESTAT), Bengaluru, has held that a customs duty exemption claimed on imported flavour compounds cannot be denied without establishing that the goods fall within the exclusion for compound alcoholic preparations of a kind used for the manufacture of beverages.The revenue must prove that the goods satisfy the exclusion. A bench comprising Judicial Member P.A. Augustian and Technical Member R. Bhagya Devi refering to a 2002 notification...

Registration In Exporting Country Before Import Does Not Make Vehicle Used: CESTAT Chennai

The Customs, Excise, and Service Tax Appellate Tribunal (CESTAT), Chennai, has held that a vehicle does not lose its eligibility for concessional customs duty available for new vehicles merely because it was temporarily registered in the country of export, so long as there is no evidence that it was actually used before being exported to India.The revenue must establish that the vehicle was actually used before it was exported to India.“Mere registration of a motor vehicle in the exporting...

LED Modules Imported For Street Lights Attract 10% Customs Duty, Not 20% As Lamp Parts: CESTAT Delhi

The Customs, Excise, and Service Tax Appellate Tribunal (CESTAT), New Delhi has held that LED modules imported for manufacturing street lights cannot be classified as parts of lamps and lighting fittings merely because they are intended for use in street lights.A coram comprising Officiating President Dr. Rachna Gupta and Technical Member Hemambika R. Priya observed that while street lights are covered under the category for lamps and lighting fittings, “the usage/utility of the imported goods...

Recovery Of LC Charges By Non-Banking Entity Not Taxable As Banking Services: CESTAT Delhi

The Customs, Excise and Service Tax Appellate Tribunal (CESTAT), New Delhi has held that the issuance of a Letter of Credit (LC) by a person or body corporate not engaged in banking, financial, or similar activities is not covered under the taxable category of "Banking and Other Financial Services." It ruled that the recovery of LC charges by the State Trading Corporation of India Ltd. (STC) from buyers in High Seas Sale (HSS) transactions is therefore not liable to service tax.A bench of...