Tax
IGST Act | Place Of Supply Depends On Where Movement Terminates, Not Where Goods Were Handed To Carrier: Karnataka High Court
The Karnataka High Court held that for the purpose of determining the place of supply under Section 10(1)(a) of the IGST Act, the factor is the location where the movement of goods terminates for delivery to the recipient and not the place where the goods are handed over to the common carrier. Section 10(1)(a) of the Integrated Goods and Services Tax (IGST) Act, 2017, provides that the place of supply for goods that are moved, whether by the supplier, recipient, or another party, is...
GST Authorities Have No Power To Seal Cash During Search: Calcutta High Court Orders De-Sealing Of ₹24 Lakh
The Calcutta High Court held that the GST authorities do not have the power under Section 67 of the CGST Act to seal or seize cash. Accordingly, the bench directed the immediate de-sealing of Rs. 24 lakhs. Section 67 of the Central Goods and Services Tax (CGST) Act, 2017, grants tax authorities the powers of inspection, search, and seizure to prevent tax evasion and ensure compliance. Justice Om Narayan Rai examined whether the GST authorities have the power to seize cash under...
Packing Materials Are Integral Part Of Cement Sales, Cannot Be Taxed Separately At Different Rates: Patna High Court
In a ruling on sales tax valuation under the Bihar Finance Act, 1981, the Patna High Court has held that packing materials used for cement, such as gunny bags and HDPE bags, form an integral part of cement sales and cannot be subjected to separate tax rates distinct from the cement itself. The Division Bench of Justice Bibek Chaudhuri and Justice Dr. Anshuman dismissed a batch of miscellaneous appeals filed by ACC Limited. The appeals pertained to multiple assessment years ranging from...
CESTAT Delhi Cancels Customs Broker's Licence For Helping Export Prohibited Goods Using Another Person/Firm's Name
The Customs, Excise & Service Tax Appellate Tribunal (CESTAT), New Delhi, has upheld the cancellation of a Customs Broker's licence after finding that the broker helped export prohibited goods by filing documents in the name of a firm that had never hired it. A Bench of Justice Dilip Gupta (President) and P.V. Subba Rao (Member–Technical) dismissed the appeal filed by the assessee, M/s Anax Air Services Pvt. Ltd. and confirmed the order passed by the Commissioner of Customs, New...
GST | Cannot Seek Pre-Arrest Bail At Stage Of Summons, Delhi High Court Dismisses Plea By Tobacco Trader
The Delhi High Court has dismissed Writ Petitions challenging GST Summons issued by the Enforcement Agency, Directorate General of Goods and Services Tax Intelligence (DGGI) alleging clandestine trading of tobacco on 'merits'. In a judgment delivered on December 16, 2025, Justice Neena Bansal Krishna, deliberated on the interplay between Section 70 of the CGST Act, 2017 and Section 193 and Section 228 of the Indian Penal Code, 1860. The Delhi High Court made observations on how 'Summons'...
Non-Availability Of GSTAT Cannot Be Used To Bypass Mandatory Pre-Deposit U/S 112(8) CGST Act: Orissa High Court
The Orissa High Court held that while a writ petition may be entertained when the Goods and Services Tax Appellate Tribunal (GSTAT) is not constituted or functional, such non-availability cannot be used to bypass the mandatory pre-deposit under Section 112(8) of the CGST Act. Section 112(8) of the Central Goods and Services Tax (CGST) Act, 2017, outlines the mandatory pre-deposit conditions that an appellant must meet to file an appeal with the Goods and Services Tax Appellate Tribunal...
Service Tax | Extended Limitation Cannot Be Invoked Without Mens Rea, Deliberate Intent To Evade Duty To Be Proven: CESTAT Chandigarh
The Chandigarh Bench of the Customs, Excise and Service Tax Appellate Tribunal (CESTAT) has set aside a service tax demand of ₹18.95 crore raised against the assessee, KEC International, holding that the Department wrongly invoked the extended period of limitation without establishing any intent to evade tax . A Bench comprising Hon'ble Mr. S.S. Garg (Judicial Member) and Hon'ble Mr. P. Anjani Kumar (Technical Member) allowed the appeal filed by the assessee and quashed the...
Commission Earned On Sale Of Agricultural Produce Attracts Service Tax Under 'Business Auxiliary Service': CESTAT Ahmedabad
The Ahmedabad Bench of Customs, Excise and Service Tax Appellate Tribunal (CESTAT) confirmed demand of service tax on commission earned on account of sale of agricultural produce, Indian Raw Cotton under the head 'Business Auxiliary Service'. The CESTAT upheld order by the lower authority fastening service tax liability of ₹71.75 lakhs and ₹90.56 lakhs for the periods 2010-11 and 2011-12, respectively. In a recent ruling, Mr. Somesh Arora (Judicial Member) and Mr. Satendra Vikram Singh...
Income Tax Act | Sikkim High Court Allows S.80P(2)(d) Deduction On Interest Earned From Co-operative Banks By Non-Bank Co-operative Society
The Sikkim High Court has held that a non-bank co-operative society is entitled to claim deduction under Section 80P(2)(d) of the Income Tax Act, 1961, on interest income earned from investments made with co-operative banks, and that Section 80P(4) does not bar such deduction. A Division Bench of Chief Justice Biswanath Somadder and Justice Meenakshi Madan Rai allowed the tax appeal filed by the Sikkim State Cooperative Supply and Marketing Federation Limited (SIMFED) and set aside the...
Customs | Alleged Export Through Non-Specified Routes Must Be Proved; Presumption Insufficient To Uphold Seizure: CESTAT Kolkata
The Kolkata Bench of Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) held that seizure of goods cannot be sustained merely on the assumption that they were intended for export through non-specified routes. In the absence of any corroborative evidence establishing intent to export illegally, such presumption alone is insufficient to justify such seizure. Rajeev Tandon (Technical Member) opined that the mere presumption that the goods were meant for export to Nepal through...
Clause 8 Of Assam GST Reimbursement Scheme Prima Facie Ultra Vires: Gauhati High Court Stays SCN Against Patanjali Foods
The Gauhati High Court found that Clause 8 of the Assam Industries [Tax Reimbursement for Eligible Units] Scheme, 2017, which restricts input tax credit, runs contrary to the Constitutional framework and the provisions of the CGST Act. Consequently, the bench stayed the operation of the show-cause notices (SCN) issued to Patanjali Foods Limited. Justice Manish Choudhury was addressing a case in which Patanjali Foods Limited, the assessee, challenged the constitutional validity of...
Cryptic Show Cause Notice Without Factual Details Invalidates GST Registration Cancellation: Gauhati High Court
The Gauhati High Court held that a GST registration cannot be cancelled on the basis of a cryptic show cause notice, which merely quotes statutory provisions without disclosing the factual grounds. Justice Sanjay Kumar Medhi noted that apart from stating the provisions of Section 29(2)(e) of the CGST Act, there are no facts or any details stated in the show cause notice. In the case at hand, the assessee's/petitioner's GST registration was cancelled through a show cause notice. An...