Tax
Export Held Up Due To Conflicting Lab Reports: Delhi High Court Asks Customs To Decide Pan Masala Exporter's Plea
The Delhi High Court has asked the Customs authorities to consider releasing the bank guarantee of a city-based pan masala exporter, forfeited after conflicting lab reports about adulteration of its export products with tobacco.A division bench of Justices Prathiba M. Singh and Shail Jain observed that when no objections were found in the first lab test report (CRCL), “the circumstances which warranted the issuance of the second CRCL report are completely unknown and it does not specify as to...
Home Delivery Services By E-Commerce Platforms To Consumers Exempt From GST: West Bengal AAR
The West Bengal Authority for Advance Ruling (AAR) has ruled that transportation services proposed to be provided by Flipkart India Private Limited under a new logistics model qualify as Goods Transport Agency (GTA) services and are exempt from GST when supplied to unregistered end customers under Serial No. 21A of Notification No. 12/2017–Central Tax (Rate). Flipkart India Private Limited, which was already engaged in B2B trading of goods, proposed to introduce a logistics model...
GST Interest/Penalty Waiver Can't Be Denied For Initial Wrong RCM Payment Through ITC Once Cash Compliance Is Made: Orissa High Court
The Orissa High Court has held that a GST interest and penalty waiver application filed by the petitioner cannot be rejected merely because a portion of tax liability under reverse charge mechanism (RCM) was initially discharged through input tax credit, subsequently pays the amount in cash and complies with legal requirements. A Division Bench comprising the Chief Justice Harish Tandon and Justice Murahari Sri Raman heard the writ petition filed by Simon India Ltd., a company engaged...
GST Department Can't Raise Fresh Demands For Pre-CIRP Period After Resolution Plan Approval: Delhi High Court
The Delhi High Court has made it clear that the GST Department cannot raise fresh demands for a period prior to the commencement of the Corporate Insolvency Resolution Process (CIRP) under the Insolvency and Bankruptcy Code 2016, after the resolution plan has been approved by the NCLT.A division bench of Justices Prathiba M. Singh and Shail Jain held, “no demand can be raised after the resolution plan has been approved ,in respect of a period prior thereto.”For context, Petitioner was involved...
Customs | Bird Feather Used In Fashion Accessories, Ready-To-Wear Items For Luxury Brands Classifiable As 'Dyed': Mumbai AAR
The Mumbai, Customs Authority for Advance Ruling (CAAR) has held that import of Dyed Feathers, wherein dying activity took place in France was classifiable as 'Dyed Feather' in terms of the General Rules of Interpretation. In a ruling dated December 15, 2025 Shri. Prabhat K. Rameshwaram on classification clarified that imported Feathers were intended for use as ornamental materials in embroidery for luxury brands and they underwent 'working' viz. washing, steam drying and dying...
Customs Act | CESTAT Mumbai Quashes Aluminium Metal Scrap Valuation Enhancement; Says Rule 12 Safeguards Mandatory
The Mumbai Bench of the Customs, Excise and Service Tax Appellate Tribunal (CESTAT) has set aside orders enhancing the value of scrap consignments merely on the basis of National Import Data Base (NIDB) data and a Directorate General of Valuation (DGoV) circular. A Bench comprising Mr. S.K. Mohanty (Judicial Member) and Mr. M.M. Parthiban (Technical Member) stated that the customs authorities could not discard the declared transaction value without strictly following Rule 12 of the...
Income Tax Act | S.153C Notices Unsustainable When Search For 'Other Person' Initiated After 01.04.2021: Madras High Court
The Madras High Court held that the notices under Section 153C are unsustainable where a search for 'other person' was initiated after 01.04.2021. Section 153C of the Income Tax Act applies when documents or assets belonging to a third party are found during a search, and an assessment is made against that person. Section 153C(3) of the Income Tax Act states that Section 153C shall not apply to any search initiated under Section 132 or books/assets requisitioned under Section 132A...
Income Tax Act | Bombay High Court Allows Treaty-Based Cap Of 10% On DDT For Foreign Shareholder; Sets Aside BFAR Ruling
The Bombay High Court (Goa Bench) has held that Dividend Distribution Tax (DDT) paid by an Indian subsidiary to its foreign shareholder must be restricted to the treaty rate of 10% under Article 11 of the India-UK India Double Taxation Avoidance Agreement (DTAA) A Division Bench of Justice Bharati Dangre and Justice Nivedita P. Mehta allowed the appeal filed by the assessee, M/s Colorcon Asia Pvt. Ltd., and set aside the advance ruling passed by the Board for Advance Rulings, (BFAR)...
GST | Court Should Not Presume Denial Of Bail Is Rule: Punjab & Haryana High Court Grants Bail In ₹23.66 Cr Fake ITC Case
The Punjab and Haryana High Court held that even in cases involving economic offences under the CGST Act, courts must not proceed on the presumption that “Denial of Bail is the Rule and grant being the exception”. Justice Aaradhna Sawhney stated that even in cases involving economic offences, the Court seized of the matter has to go through the gravity of the offence, the object of the Act, the attending circumstances, etc. Thus, economic offences cannot be categorised in one group,...
Prosecution Can Be Initiated Without Waiting For ITAT Penalty Confirmation In High-Value Cases: Delhi High Court
The Delhi High Court has made it clear that approval of collegium of two CCIT/DGIT rank officers is only required in cases where tax evaded is less than the threshold limit of ₹25 Lakh.A division bench of Justices V. Kameswar Rao and Vinod Kumar held, “the appropriate authority for initiating the prosecution proceedings would be the sanctioning authority i.e., the PCIT and not the collegium of two CCIT/DGIT rank officers since the tax to be evaded exceeds Rs. 25 lacs.”The observation was made...
Gujarat High Court Restores GST Registration Noting Payment Of Outstanding Tax, Interest, Late Fee In Electronic Cash Ledger
The Gujarat High Court has restored GST registration subject to compliance with filing of pending returns and payment of outstanding tax with interest, late fee and penalty. A Division Bench comprising Justice A.S. Supehia and Justice Pranav Trivedi permitted filing of GST returns for past period after noting copy of GST Returns for the period from April 2022 to December 2024, self-ascertained tax liability discharged through Electronic Cash Ledger. Petitioner sought for quashing of...
Bombay High Court Quashes Tax Notices Issued Against Mumbai Company After SVLDRS Settlement
The Bombay High Court has held that once a dispute is settled under the Sabka Vishwas (Legacy Dispute Resolution) Scheme, 2019 and a Discharge Certificate is issued, tax authorities cannot reopen the matter. A Division Bench of Justice M S Sonak and Justice Advait M Sethna set aside two show cause notices issued by officers of the Central GST Audit-II wing, Mumbai, after the dispute was settled under the Scheme The court said a Discharge Certificate under SVLDRS signifies full and final...