Tax
Service Tax Paid by Mistake Not Eligible For Suo Motu Adjustment: CESTAT Chennai In TVS Motor Case
The Chennai Bench of the Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has ruled against TVS Motor Company Ltd., holding that service tax paid under a mistaken belief of law cannot be adjusted suo motu against future service tax liability in the manner adopted by it. The ruling was delivered by Judicial Member Ajayan T.V., dismissing the appeal filed by TVS Motor against an order confirming a service tax demand of Rs 41.97 lakh along with applicable interest. The tribunal held...
Tax Authorities Cannot Exceed Scope of Show Cause Notice: Calcutta High Court
The Calcutta High Court emphasised that a GST adjudicating authority cannot deny tax exemption on grounds that were never raised in the show cause notice. A Bench of Justice Om Narayan Rai set aside an adjudication order passed against M/s Duakem Pharma Pvt. Ltd., observing that the proper officer exceeded the scope of the show cause notice by deciding an issue that was never put to the assessee for explanation. The Court noted: "The question as to whether the products/items dealt in by the...
Local Iron Ore Transport Not Taxable As Cargo Handling Service: CESTAT Kolkata
On 9 January, the Kolkata Bench of the Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) reiterated that that service tax cannot be levied on local transportation of iron ore by classifying it as a “Cargo Handling Service” when the activity is essentially one of transportation. A Bench comprising Judicial Member Ashok Jindal and Technical Member K. Anpazhakan allowed the appeal filed by M/s Mata Dadhimati Transport and set aside the service tax demand and the equivalent penalty...
GSTAT Delhi Says Pan Realtors Not Liable For Profiteering On Flat Sales After Occupancy Certificate
The Delhi Bench of the Goods and Services Tax Appellate Tribunal (GSTAT) has held that, in this case, no issue of profiteering arose in respect of residential units sold after the issuance of an occupancy certificate in Pan Realtors Private Limited's Noida project while closing a buyer's complaint relating to alleged input tax credit benefits under GST.The tribunal, however, closed the complaint after recording the developer's undertaking to refund the computed profiteered amount of over Rs 40...
GSTN Issues Advisory On RSP-Based Valuation For Tobacco Products
Ahead of the rollout of the Retail Sale Price (RSP)–based valuation mechanism from 1 February 2026, the Goods and Services Tax Network (GSTN) has issued an advisory for taxpayers.The advisory provides guidance on reporting taxable value and tax liability under the RSP-based valuation in e-invoices, e-way bills, GSTR-1, GSTR-1A, and the Invoice Furnishing Facility (IFF).As part of the RSP-based system, GST on notified tobacco products has been computed at 40% and the taxable value will now be...
Developer Not Liable For Profiteering When ITC Benefits Are Fully Passed to Buyers: GSTAT Delhi
On 20 January, the Delhi Bench of the Goods and Services Tax Appellate Tribunal (GSTAT) closed anti-profiteering proceedings against Arkade Developers, holding that no contravention of Section 171 arises when Input Tax Credit (ITC) benefits are fully passed on to homebuyers. The Tribunal noted that the developer had not only fully passed on Input Tax Credit (ITC) benefits to homebuyers but also slightly exceeded the statutory requirement A Bench of Technical Member Anil Gupta took note of the...
Rectification Of GST Returns Permissible Where There Is No Revenue Loss: Gujarat High Court
Earlier this month, the Gujarat High Court held that inadvertent errors in GST returns can be rectified, provided there is no loss of revenue, and directed the authorities to facilitate amendment of GSTR-01 and GSTR-3B for the initial years of GST rollout. A Division Bench comprising Justice A.S. Supehia and Justice Pranav Trivedi allowed the writ petition filed by an authorized dealer of TATA Motors, permitting rectification of monthly returns electronically or manually. The Bench referred to...
CBIC Revises Gold Tariff Values, No Change in Edible Oils, Brass Scrap & Areca Nuts
In a notification dated 22 January 2026, the Central Board of Indirect Taxes and Customs (CBIC) has updated tariff values for gold while keeping tariff values unchanged for edible oils, all types of brass scrap, silver, and areca nuts. The notifications stated that from 23 January 2026 tariff rates are effective at USD 1,567 per 10 g for gold and USD 2,950 per kg for silver. The notification also specifies tariff values for various edible oils, brass scrap, gold, silver, and areca nuts. These...
Allahabad High Court Dismisses PIL Against Retrospective Property Tax By Kanpur Municipal Corp.
On 12 January, the Allahabad High Court dismissed a public interest litigation (PIL) challenging the retrospective enhancement of property tax by the Kanpur Municipal Corporation, holding that a PIL is not maintainable where the relief sought essentially pertains to the private grievances of an association's members. A Division Bench comprising Chief Justice Arun Bhansali and Justice Kshitij Shailendra held: “Filing of petitions in the nature of PIL, though essentially projecting the interest...
Vague Show Cause Notice Can't Justify Retrospective GST Cancellation: Delhi High Court
The Delhi High Court recently held that a GST registration cannot be cancelled retrospectively on the basis of a vague show cause notice, even where the appeal against such cancellation is delayed. A Division Bench of Justice Nitin Wasudeo Sambre and Justice Ajay Digipaul said the court cannot be a "blind spectator" to the denial of a proper opportunity of hearing, even where the proceedings are time-barred. “A vague Show Cause Notice is nothing less than a document which is not providing...
Calcutta High Court Upholds ITAT Order Allowing NBFC To Set Off Share Trading Losses Against Interest Income
The Calcutta High Court has dismissed the income tax department's appeal against an ITAT order allowing an NBFC to set off losses described by the department as penny stock trades against its interest and other income. The Court held that the case raised no substantial question of law. A Division Bench of Justice Rajarshi Bharadwaj and Justice Uday Kumar said the department had failed to produce any direct or substantial evidence to support its case. It found that the allegation that the...
Orissa High Court Quashes ₹8.62-Crore Ex-Parte GST Demand Against Jindal Steel
The Orissa High Court has set aside an ex-parte GST demand raised against Jindal Steel Limited, holding that mere uploading of notices under the “Additional Notices/Orders” tab on the GST portal does not constitute valid service and violates principles of natural justice.A Division Bench comprising Chief Justice Harish Tandon and Justice Murahari Sri Raman found that the taxpayer was deprived of a meaningful opportunity to participate in the proceedings before the State Tax Officer.The court...