Imported Parts Alone Don't Justify Higher Sales Tax On Car Audio Systems: Madras High Court

The Madras High Court has ruled, in a dispute over the tax treatment of Kenwood-branded car audio systems, that the use of imported components does not by itself make the finished product an imported good, holding that “the parts do not, by themselves, constitute a complete car audio system”. A bench of Justices Anita Sumanth and Mummineni Sudheer Kumar was deciding whether Nippon Audiotronix's car audio systems were taxable at 12.5 percent as domestic goods or at 20 percent as imported...

After Supreme Court Dismisses SLP, Delhi High Court Expresses Dissatisfaction Over Duty Drawbacks Withheld By Customs

The Delhi High Court has expressed dissatisfaction over the Customs Department's failure to implement its earlier judgment directing the release of duty drawback amounts to the petitioners, despite the Supreme Court having dismissed the Department's special leave petition (SLP).A Division Bench of Justices Prathiba M. Singh and Shail Jain was hearing a batch of writ petitions seeking implementation of the Court's judgment dated February 13, 2025. The earlier judgment had quashed CBIC...

Uploading Show Cause Notice on 'Additional Notices' Tab Ineffective, Delhi High Court Reiterates

The Delhi High Court, on 21 January 2026, remanded a matter back to the Proper Officer, noting that uploading a show cause notice under the 'Additional Notices' tab was not a valid service. A Division Bench comprising Justice Nitin Wasudeo Sambre and Justice Ajay Digpaul set aside the demand order, allowing the petitioner to file a reply to the show cause notice and avail a personal hearing. The Bench noted: “we are of the view that the petitioner has made out a case for remand for the...

Marine Feed Mixed With Vegetable Protein Attracts Higher Customs Duty: CESTAT Chennai

On 22 January, the Chennai Bench of the Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) held that imports of marine feed mixed with vegetable protein attract higher customs duty as they are classifiable as formulated animal feed and not as simple fish or mollusc meal. A Bench comprising Judicial Member P. Dinesha and Technical Member Vasa Seshagiri Rao upheld the reclassification of imported squid-based feed products under Customs Tariff Heading (CTH) 2309 as preparations for...

Raw Aluminium Cannot Be Reclassified As 'Motor Vehicle Parts' Based On End Use Alone: CESTAT Delhi

The Delhi Bench of the Customs, Excise & Service Tax Appellate Tribunal (CESTAT) recently set aside the re-classification of raw aluminium articles imported from Korea and Thailand as auto-parts solely on the basis of end use. On 21 January 2026, a Bench of Justice Dilip Gupta and Technical Member Hemambika R. Priya rejected the Department's attempt to classify imported aluminium tubes, pipes, and profiles as 'parts of motor vehicles'. The Tribunal held that merely because the imported...

Dormant Partner Cannot Face Criminal Liability Without Proof Of Control Over Firm: Madras High Court

The Madras High Court has held that a dormant partner cannot be fastened with criminal liability in the absence of specific allegations showing that she was in charge of or responsible for the conduct of the firm's business. A Bench of Justice Sunder Mohan was considering criminal revision petitions filed by a firm, its managing partner, and another partner, challenging the trial court's order that had refused to discharge them from criminal proceedings initiated under the Prohibition of Benami...

Johnson Lifts Secures ₹1.24 Crore Relief As CESTAT Chennai Upholds Elevator Parts Classification

The Chennai Bench of the Customs, Excise and Service Tax Appellate Tribunal (CESTAT) has held that lift and elevator parts imported by Johnson Lifts Pvt. Ltd. were correctly classifiable as “parts suitable for use solely or principally with lifts and escalators” under Customs Tariff Heading (CTH) 8431, which attracts a lower rate of customs duty. A Bench comprising Judicial Member Ajayan T.V. and Technical Member Ajit Kumar set aside the department's differential customs duty demand exceeding...

Appellate Authority Cannot Enhance GST Liability Without Hearing Taxpayer: Calcutta High Court

The Calcutta High Court on 14 January reiterated that a GST appellate authority cannot enhance taxable turnover or impose a higher rate of tax on grounds that were never part of the original adjudication, without giving the taxpayer an opportunity to be heard. A Bench of Justice Om Narayan Rai set aside an appellate order which enhanced the petitioner's taxable turnover by adding zero-rated supplies of Rs. 27 lakh and imposed GST at 18%, holding that such enhancement at the appellate stage...

Direct Tax Weekly Round-Up: January 19 - January 25, 2026

SUPREME COURTSupreme Court Quashes Gujarat HC Order To Modify Income Tax Software To Prevent TDS-Default Demands Against DeducteeCITATION : 2026 LLBiz SC 16 Case Number : CIVIL APPEAL NO.197 OF 2026 Case Title : Income Tax Assessing Officer, Baroda & Ors. v. Shobhan Shantilal DoshiThe Supreme Court on January 12, 2026, set aside directions issued by the Gujarat High Court requiring the Central Board of Direct Taxes (CBDT) to modify the income-tax department's software. The court, however,...

Branding Structures Installed At Indian Oil Fuel Stations Not Liable To Excise Duty: CESTAT

The Chandigarh Bench of the Customs, Excise and Service Tax Appellate Tribunal (CESTAT) has recently held that branding and signage structures installed at Indian Oil Corporation Ltd. fuel stations are not subject to central excise duty. These structures are known as Retail Visual Identity or RVI elements. They include monoliths, logos, directional signs and facility signs. The tribunal said the structures come into existence only at the site. Once installed, they become permanent. They...

Penal Interest On Delayed Loan EMIs Not Liable To Service Tax: CESTAT Chennai

The Chennai Bench of the Customs, Excise and Service Tax Appellate Tribunal (CESTAT) has held that penal interest charged by banks on delayed or defaulted EMIs cannot be subjected to service tax under the Finance Act, 1994. The tribunal said such charges are not linked to any service offered by banks but flow automatically from a borrower's failure to repay on time. “Penal interest is not a charge levied for any independent activity undertaken by the banks but is a contractual consequence of...

Indirect Tax Weekly Round-Up: January 19 - January 25, 2026

SUPREME COURTBooking Speakers For Events Is Not Event Management, No Service Tax Under That Head: Supreme CourtCase Title: HT Media Limited v. Principal Commissioner, Delhi South Goods and Services Tax Citation: 2026 LLBiz SC 14 Case Number: CIVIL APPEAL NOS. 23525 - 23526 OF 2017The Supreme Court has ruled that merely booking speakers through agents at an event does not amount to 'event management' and therefore cannot be subjected to service tax under that category The Court held that fees...