Tax
Gujarat High Court Grants Interim Relief To R.R. Exports Against HSNSC Cess Registration
The Gujarat High Court on 26 February granted interim relief to R.R. Exports after it challenged a requirement to register its unit, operating in a Special Economic Zone (SEZ), under the Health Security and National Security Cess Act, 2025 (HSNSCA). A Bench comprising Justice A.S. Supehia and Justice Pranav Trivedi issued notice in the case while recording that: “Prima facie, we find merit in the submissions advanced by the learned advocate for the petitioner.” R.R. Exports is a 100% Export...
Gujarat High Court Sets Aside ₹30,000 Customs Penalty On Zaveri & Co. For Wrong Regulatory Action
The Gujarat High Court on 24 February set aside a penalty imposed on Zaveri and Co. Pvt. Ltd. for alleged violations of warehousing regulations, holding that the customs authorities had initiated proceedings under the wrong regulatory framework and failed to provide the audit report that formed the basis of the action. A Division Bench comprising Justice A.S. Supehia and Justice Pranav Trivedi passed the ruling while allowing a writ petition filed by the company challenging the penalty order...
Fox Mandal & Company Takes ₹3.9 Crore Service Tax Dispute To Supreme Court
Fox Mandal & Company has moved the Supreme Court against a CESTAT order in a service tax case involving demands of about ₹3.9 crore against the law firm. A bench of Justices Pamidighantam Sri Narasimha and Alok Aradhe will hear the special leave petition on April 6 after the petitioner's counsel sought time to place an additional annexure relating to reconciliation issues raised in the pleaThe dispute arose from service tax proceedings initiated against the law firm under the pre-GST...
Builder Incentives For Timely Payment Cannot Be Taxed As 'Income from Other Sources': ITAT Delhi
The New Delhi Bench of the Income Tax Appellate Tribunal (ITAT) on 26 February held that rebates or concessions provided by a builder under an apartment buyer's agreement cannot be treated as taxable income under Section 56 of the Income Tax Act, 1961. A Bench comprising Judicial Member Anubhav Sharma and Accountant Member Manish Agarwal was hearing the appeal filed by Satya Prasan Rajguru against the order of the National Faceless Appeal Centre, which had confirmed the additions made by the...
Transfer Pricing Adjustment Cannot Amount To 'Misreporting of Income': Madras High Court Quashes Penalty On Verizon
The Madras High Court has recently quashed penalty proceedings against Verizon Data Services India Pvt Ltd, holding that a transfer pricing adjustment based on estimation of arm's length price cannot by itself constitute “misreporting of income” under Section 270A of the Income Tax Act.A single-bench of Justice C. Saravanan, while quashing the penalty order and rejection of its immunity application against Verizon observed,"The entire basis for initiation of penalty proceedings is the transfer...
Rajasthan High Court Refuses to Quash VAT Proceedings Against JK Lakshmi Cement Over Diesel Supplied To Contractors
The Rajasthan High Court has recently refused to quash proceedings initiated against JK Lakshmi Cement Limited over alleged VAT liability arising from diesel supplied to transport and mining contractors, holding that the company must respond to the tax authorities and raise its objections during the ongoing assessment inquiry.The dispute arose after the Commercial Taxes Department conducted a survey and investigation into the operations of the cement manufacturer.According to the department, the...
Madras High Court Upholds Notification Applying Excise Act Recovery Provision To Clean Environment Cess
The Madras High Court has upheld a Central Government notification applying provisions of the Central Excise Act, including those governing recovery of duties not levied or short-paid, to Clean Environment Cess. A Division Bench of Justice G. R. Swaminathan and Justice R. Kalaimathi held that the expression “levy” in the Finance Act, 2010 includes the processes of assessment and collection, allowing the government to extend recovery provisions of the Central Excise Act to the cess through...
Affiliation Fees Collected By Universities From Colleges Liable To GST: Madras High Court
The Madras High Court has held that affiliation fees collected by universities from colleges are liable to Goods and Services Tax (GST). The Court ruled that such services do not fall within the GST exemption for services relating to the admission of students or the conduct of examinations.The Division Bench comprising Justice G. Jayachandran and Justice K. K. Ramakrishnan answered a reference arising from writ petitions filed by Bharathidasan University challenging GST notices issued by the...
Limitation For TDS Default Orders Runs Quarter-Wise, Not Annually: Bombay High Court
The Bombay High Court has recently held that limitation for passing an order treating a person responsible for deducting tax at source as an “assessee in default” under Section 201 of the Income Tax Act must be computed quarter-wise based on the filing of each TDS statement, and not on an annual or cumulative basis. A Division Bench of Justice M.S. Karnik and Justice Gautam A. Ankhad on March 5, 2026 dismissed the Income Tax Department's appeal against Vodafone Cellular Ltd., Pune. In doing...
Assignment Of Leasehold Rights Is Transfer of Immovable Property, Not Taxable as GST Supply: Bombay High Court
The Bombay High Court at Nagpur, recently following a Gujarat High Court ruling, has held that assignment of leasehold rights in an industrial plot amounts to transfer of benefits arising out of immovable property and does not constitute “supply of services” under the GST law, and therefore GST cannot be levied on such transactions. A division bench of Justices Anil L. Pansare and Nivedita P. Mehta passed the ruling while allowing a writ petition filed by Vidarbha Beverages and its partners...
Bombay High Court Sets Aside Customs Orders On IGST Refund Interest To Jindal Drugs, Directs Fresh Determination
The Bombay High Court has recently set aside orders passed by customs authorities determining the interest payable on an IGST refund to Jindal Drugs Pvt. Ltd., holding that the authorities failed to explain how the interest had been calculated under Section 56 of the Central Goods and Services Tax Act, 2017. A division bench of Justice G. S. Kulkarni and Justice Aarti Sathe found that the impugned orders contained no reasoning showing that the statutory provision governing interest on delayed...
Value Of Materials Supplied Free Of Cost By Service Recipient For Manufacturing Not Taxable Under GST: Andhra Pradesh HC
The Andhra Pradesh High Court has recently reiterated that the value of materials supplied free of cost by a service recipient for manufacture of a product cannot be included in the taxable value under GST, setting aside a tax demand raised on a ready mix concrete supplier. A bench of Justice Cheekati Manavendranath Roy and Justice Tuhin Kumar Gedela observed that when components required for manufacturing a product are supplied free of cost, their value is not liable to tax. The Court...