Delhi High Court Says Admissibility Of Electronic Evidence In GST Dispute Must Be Decided By Appellate Authority

The Delhi High Court has refused to entertain a writ petition challenging a GST demand on the ground that it was based on inadmissible third-party electronic evidence, holding that questions relating to the admissibility, authenticity, and evidentiary value of electronic records are matters to be examined by the statutory appellate authority and not in writ jurisdiction.The Division Bench of Justices Anil Kshetrapal and Shail Jain dismissed a petition challenging an order passed under Section 74...

Delhi High Court Seeks Centre's Response On PIL Seeking Automatic TDS Refunds For Non-Taxable Individuals

The Delhi High Court on Wednesday sought the response of the Union Government and the Central Board of Direct Taxes (CBDT) on a public interest litigation seeking an automatic mechanism to refund Tax Deducted at Source (TDS) to individuals whose income falls below the taxable limit without requiring them to file income tax returns (ITRs). A division bench of Chief Justice Devendra Kumar Upadhyaya and Justice Tushar Rao Gedela issued notice on the petition filed by petitioner-in-person Aakash...

CESTAT Hyderabad Holds School Examination Services Exempt From Service Tax, Sets Aside ₹1.94 Cr Demand

The Hyderabad Customs, Excise and Service Tax Appellate Tribunal (CESTAT) on 31 July held that services provided to schools for conducting examinations, including Olympiads and talent search examinations, are exempt from Service Tax as they relate to the conduct of examinations by educational institutions. A Bench comprising Judicial Member Justice Angad Prasad and Technical Member A.K. Jyotishi set aside the Service Tax demand of Rs. 1.94 crore, along with interest and penalties,...

CESTAT Kolkata Holds No Service Tax On Pre-2016 Mining Rights, Sets Aside ₹89.13 Lakh Demand

On 4 August, the Kolkata Customs, Excise and Service Tax Appellate Tribunal (CESTAT) held that service tax cannot be levied on royalty paid for mining rights where the right to extract minerals was granted before 1 April 2016, even if the royalty was paid after that date. A Bench comprising Judicial Member Justice R. Muralidhar and Technical Member K. Anpazhakan set aside the service tax demand of Rs. 89.13 lakh, along with interest and penalties, raised against Roy Engineers, a Bihar-based...

Interest On Duty Drawback Payable From LEO Date Not Adjudication Order: Delhi High Court

The Delhi High Court on 3 August held that interest on delayed duty drawback becomes payable one month after issuance of the Let Export Order (LEO), and the pendency of adjudication proceedings cannot postpone the statutory liability under Section 75A of the Customs Act (which provides for payment of interest on delayed drawback). A Division Bench of Justices Anil Kshetrapal and Shail Jain dismissed the Revenue's appeal against Siddhachalam Exports Pvt. Ltd., holding that the exporter was...

Delhi High Court Refuses To Entertain Challenge To CGST Act Provision Governing Provisional Release Of Seized Goods

The Delhi High Court has declined to interfere with a writ petition challenging the constitutional validity of Section 67(6) of the Central Goods and Services Tax Act, 2017, which governs the provisional release of goods seized during search proceedings.The Division Bench of Justices Anil Kshetrapal and Shail Jain observed that a petitioner questioning the validity of a statutory provision must establish that it infringes a constitutional mandate.Petitioner had contended that the expression "on...

Conversion Of Bare Structures Into Retail Showrooms Is Taxable As “Original Works”: CESTAT New Delhi

On 6 August, the New Delhi Customs, Excise and Service Tax Appellate Tribunal (CESTAT), held that converting bare commercial structures into fully functional retail showrooms constitutes “original works” under the service tax law and not merely completion and finishing services, while also ruling that service tax cannot be levied on forfeited customer advances or insurance compensation received for goods destroyed in a fire. A Bench of Judicial Member Ashok Jindal and Technical Member P.V....

Madras High Court Expands GST Search Safeguards, Requires DIN Compliance And Voluntary Payments

On 5 August, the Madras High Court laid down additional safeguards governing GST searches, including requirements relating to search authorisation, Document Identification Numbers (DIN) and voluntary payments under the GST law. Justice G.R. Swaminathan while allowing a writ petition filed by Bhima Enterprises, a jewellery dealer, held that Goods and Services Tax (GST) officers cannot recover tax during search proceedings and that any payment made before issuance of a show cause...

Co-Operative Banks Need Not Deduct TDS On Interest Paid To Co-Operative Societies: Bombay High Court

The Bombay High Court has ruled that co-operative banks are not required to deduct Tax Deducted at Source (TDS) on interest paid on fixed deposits held by another co-operative society, holding that the exemption for such payments continues to apply. A Division Bench of Justice G.S. Kulkarni and Justice Aarti Sathe interpreted Section 194A(3)(v) of the Income Tax Act, which exempts certain categories of interest payments from TDS. The dispute before the bench was whether the exemption...

Gauhati High Court Says How GST Proceedings Are to Be Initiated Can't Be Decided in Writ Petition

The Gauhati High Court has ruled that a writ petition is not the appropriate forum to decide whether GST proceedings should be initiated under the normal recovery provisions or the fraud-related provisions of the CGST Act, as that issue requires factual adjudication by the proper officer.Single Judge Justice Devashis Baruah observed that whether a taxpayer committed fraud, made a wilful misstatement or suppressed facts to evade tax can only be determined after examining the facts and, therefore,...

Mere Presumption About Foreign Parent's Deputed Employees Can't Establish Permanent Establishment: ITAT Delhi

The Delhi Bench of the Income Tax Appellate Tribunal (ITAT) has recently held that a mere presumption that employees of a parent company deputed to an Indian group entity rendered services on behalf of a non-resident assessee, without any cogent material to support it, is insufficient to establish a Permanent Establishment (PE) in India. A coram of Judicial Member Vimal Kumar and Accountant Member S. Rifaur Rahman observed that the Revenue had failed to establish that Honda Trading Asia...

Lok Sabha Passes Bill Giving Centre Power To Decide Which Digital Payments Are Free Of Merchant Charges

The Lok Sabha on Thursday passed the Taxation and Other Laws (Amendment) Bill, 2026. The Bill amends the Payment and Settlement Systems Act, 2007, to give the central government the power to decide which digital payment modes, including those currently exempt from merchant charges such as UPI and RuPay debit cards, will continue to enjoy that protection. At present, Section 10A of the Payment and Settlement Systems Act prohibits banks and payment system providers from levying charges on digital...