Tax
Amendment Allowing Customs Duty Exemption For Machinery Installed In Premises Applies Retrospectively: Gujarat High Court
The Gujarat High Court has held that an amendment to a customs exemption notification under the Export Promotion Capital Goods (EPCG) scheme, which allowed installation of imported machinery in the importer's “factory or premises," will apply retrospectively, and exemption cannot be denied merely because the machinery was installed outside the factory. Allowing an importer's appeal, a Division Bench of Justice A.S. Supehia and Justice Pranav Trivedi observed that the benefit earlier denied due...
Supreme Court Dismisses Centre's SLP Against Gujarat HC Order Granting IGST Refund Despite GST Return Error
The Supreme Court has recently dismissed a Special Leave Petition filed by the Union of India challenging a Gujarat High Court judgment that directed the grant of an IGST refund to an exporter despite errors in GST returns. A bench of Justice Pamidighantam Sri Narasimha and Justice Alok Aradhe, while hearing the matter, refused to interfere with the High Court's decision but kept open the question regarding the applicability of the proviso to Rule 96 of the CGST Rules for consideration in an...
Delhi High Court Declines To Quash Customs SCN, Says Limitation Plea To Be Examined By Adjudicating Authority
The Delhi High Court has recently declined to exercise its writ jurisdiction to quash a show cause notice issued under the Customs Act, 1962, holding that the petitioner's plea regarding limitation must be decided by the adjudicating authority.A division bench of Justices Nitin Wasudeo Sambre and Ajay Digpaul observed,“Once the petitioner has submitted his explanation on the issue of limitation based on the judgments referred above, it can be expected of the respondents to deal with the...
Gujarat High Court Sets Aside GST Order After Taxpayer's Request For Personal Hearing Was Ignored
The Gujarat High Court has set aside an adjudication order passed under the Central Goods and Services Tax Act, 2017, on the ground of violation of principles of natural justice, holding that failure to grant a personal hearing despite specific requests vitiates the proceedings. A Division Bench comprising Justice A.S. Supehia and Justice Pranav Trivedi was dealing with a writ petition filed by K.D. Engineers challenging an order-in-original dated August 20, 2025, and a consequential demand...
CESTAT Sets Aside ₹82 Crore Customs Duty Demand On Dell, Says SEZ-To-DTA Laptop Sales Not 'Personal Imports'
The Chennai bench of the Customs, Excise and Service Tax Appellate Tribunal (CESTAT) has set aside a customs duty demand of over Rs 82 crore against Dell International Services India Pvt. Ltd., holding that laptops, desktops, and monitors cleared from its SEZ unit to customers in the Domestic Tariff Area (DTA) cannot be treated as “dutiable goods” or “personal imports” under the Customs Tariff Act.The bench, consisting of Judicial Member P. Dinesha and Technical Member Vasa Seshagiri...
Escaped Income Must Include Real Taxable Income, Not Aggregate Value: ITAT Ahmedabad
The Ahmedabad Income Tax Appellate Tribunal (ITAT) on 16 March, held that the expression “income chargeable to tax which has escaped assessment” under Section 149 of the Income Tax Act refers to the actual taxable income sought to be brought to tax, and not the gross value of underlying transactions. A Bench comprising Judicial Member T.R. Senthil Kumar quashed the reassessment proceedings for Assessment Year 2017–18, holding that the assumption of jurisdiction under Section 148 was...
Transportation Of Mining Rejects To Dumping Yard Qualifies For CENVAT Credit: CESTAT Chennai
The Chennai Bench of Customs, Excise and Service Tax Appellate Tribunal (CESTAT) has held that transportation of waste and reject materials arising during mining operations qualifies as an 'input service', and accordingly, CENVAT credit is allowed to Chettinad Cement Corporation Ltd. A Bench comprising Judicial Member P. Dinesha and Technical Member Vasa Seshagiri Rao allowed the appeal, setting aside the impugned order that had denied credit on services relating to loading and transportation...
Absence Of Check-Post Stamps Not Proof Of Clandestine Removal: CESTAT Mumbai
The Mumbai Bench of Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has held that a mere absence of check-post stamps on transportation documents cannot create a presumption that goods were not transported. A Bench comprising Judicial Member S.K. Mohanty and Technical Member M.M. Parthiban observed: ".....that only for the reason that the check-post documents were not produced or were incomplete, it does not mean that the goods were not transported as the documents like Bilty,...
Writ Petition Against GST Show Cause Notice Not Maintainable: Supreme Court
The Supreme Court on 27 February dismissed a Special Leave Petition filed by Trillion Lead Factory Pvt. Ltd., which challenged the Telangana High Court's refusal to interfere with a show cause notice proposing cancellation of its GST registration. A Division Bench comprising Justice Aravind Kumar and Justice Prasanna B. Varale held: “It is trite law that no writ lies against the issuance of a show cause notice, and such a writ petition would not be maintainable.” The case arose from a show...
Bombay High Court Sets Aside Order Denying IGST Refund To Lubrizol, Orders Fresh Consideration
The Bombay High Court has set aside an order rejecting a refund claim of IGST on export of services, holding that the authority failed to properly consider the petitioner's contentions and the nature of the agreements between the parties. A Division Bench comprising Justices G.S. Kulkarni and Aarti Sathe was hearing a writ petition filed by Lubrizol Advance Materials India Pvt. Ltd., which had challenged the rejection of its refund claim of Rs 56,11,885 for July 2024 on the ground that the...
CENVAT Credit Reversal Cannot Exceed Proportionate Credit Attributable To Exempt Services: CESTAT Kolkata
The Kolkata Bench of the Customs, Excise and Service Tax Appellate Tribunal (CESTAT) has held that reversal of CENVAT credit cannot exceed the proportionate credit attributable to exempt supplies, while granting relief to Bank of India and remanding the matter for recomputation of the credit liable to be reversed. A coram of Judicial Member Ashok Jindal and Technical Member K. Anpazhakan observed that “we agree with the submission of the appellant that the demand for reversal of credit should...