Delhi High Court Directs To Re-Assess Bills Of Entry, Allows Infra Cess Exemption On E-Golf Carts Owing To Technical Glitch

The Delhi High Court in a matter where importer could not avail Infrastructure Cess exemption due to technical glitch, has directed the Customs Department to re-assess and refund the excess Infrastructure Cess of ₹55,876.29 paid by the Petitioner on imported electrically operated golf carts. A Division Bench comprising Justice Prathiba M. Singh and Justice Shail Jain, observed that since Electronically Operated Golf Carts qualified for exemption from payment of Infrastructure Cess, the...

Customs Act | Penalty U/S 112 Cannot be Imposed Solely On Co-Accused's Statement Without Corroborative Evidence: CESTAT Kolkata

The Kolkata Bench of Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) held that a mere allegation by a co-accused that the assessee handed over gold cannot serve as the sole basis for imposing a penalty under Section 112 of the Customs Act. The bench clarified that in the absence of any independent corroborative evidence supporting this claim, the statement of the co-accused is not sufficient to implicate the assessee in the said offence. Section 112 of India's Customs Act,...

Centre Projects ₹47,700 Crore Revenue Loss Amid GST Rate-Rationalisation

The Centre has estimated a Net Negative Revenue loss of ₹ 47,700 crore due to GST rate-rationalisation. However, it was clarified that shift from 28% to the 40% tax bracket were projected to account for an additional revenue of approximately ₹45,570 Crore. The Finance Ministry in response to whether a Group of Ministers were to be constituted by the GST Council to address the issues of initial revenue losses incurred by the States due to GST 2.0, answered in negative. In response...

Customs Act | Gujarat High Court Reiterates Mandatory Cross-Examination Under Section 138B, Quashes Penalty Order

The Gujarat High Court has held that reliance on statements of witnesses without allowing the manufacturer opportunity to cross‑examine, while ignoring those statements that testified in favour of the manufacturer, violates principles of natural justice. In a judgment delivered on November 25, 2025 Justice A.S. Supehia and Justice Pranav Trivedi quashed the penalty order and culled-out 8 quintessential features of Section 138B of the Customs Act, 1962, particularly, clauses (a ) and (b)...

Hotelier Liable To 18% GST Not 28% On Supply Of Carbonated Beverages, For Dine-In/Room Service : West Bengal AAR

The West Bengal Authority for Advance Ruling (AAR) has held that supply of restaurant services, including the supply of aerated beverages, would be taxable at the rate of 18% GST. In a ruling by Shri. Shafeeq S (Member- Central Tax) and Shri. Jaydip Kumar Chakrabarti (Member-State Tax) examined the two kinds of supply of Aerated Drinks viz. (i) With food (shown separately in bill and (ii) Individually (only aerated water). The West Bengal AAR considering the 'factual matrix' observed...

Income Tax | Foreign Companies' Head Office Expenses For Indian Business Subject To Deduction Limit Under S. 44C : Supreme Court

In a set-back to foreign companies doing business operations in India, the Supreme Court on Monday (December 15) held that all head office expenditure incurred by them outside India, whether common or exclusively for their Indian business operations, must be subjected to the statutory ceiling prescribed under Section 44C of the Income Tax Act, 1961, thereby ruling out any claim for full deduction.A Bench comprising Justice JB Pardiwala and Justice KV Viswanathan allowed the Revenue's appeal and...

GST | Allahabad High Court Grants Stay On Composite Show Cause Notice For Multiple Assessment Years

Recently, the Allahabad High Court has granted stay on composite show cause notice issued by the Directorate General of GST Intelligence where multiple assessment years have been clubbed in one show cause notice. Petitioner approached the High Court against a single show cause notice issued by the Additional Director, Directorate General of GST Intelligence, Ghaziabad for tax period starting from August 2019 to September 2023. It was pleaded that the same could not be done as each tax...

Service Tax | Tax Paid Under Wrong Service Category Cannot Be Demanded Again: CESTAT Mumbai

The Mumbai Bench of the Customs, Excise & Service Tax Appellate Tribunal (CESTAT) has set aside a service tax demand raised against the assesse, holding that once service tax has already been paid under the Reverse Charge Mechanism, merely under a wrong service category, the department cannot demand the same tax again.A Bench comprising Dr. Suvendu Kumar Pati (Judicial Member) allowed the assessee's appeal and quashed the order passed by the Commissioner (Appeals), granting...

Income Tax Act | Mechanical Approval U/S 153D Vitiates Proceedings; Bombay High Court Dismisses Revenue's Appeal

The Bombay High Court has dismissed an income tax appeal filed by the Revenue, holding that an approval granted under Section 153D of the Act, which does not reflect even minimal application of mind, is vitiated in law and renders the consequential proceedings invalid. A Division Bench of Justice M.S. Sonak and Justice Advait M. Sethna, while deciding an appeal, answered the substantial question of law against the Revenue i.e. Whether an approval granted under Section 153D of the Income...

Tax Weekly Round-Up: December 08 - December 14, 2025

SUPREME COURTIncome Tax | Statutory Corporation Can Claim Deduction Under S 36(1)(viii) Only For Income Directly Derived From Long-Term Finance : Supreme CourtCause Title: NATIONAL COOPERATIVE DEVELOPMENT CORPORATION VERSUS ASSISTANT COMMISSIONER OF INCOME TAXThe Supreme Court on Wednesday (December 10) held that any income earned by a statutory corporation outside its core activity of providing long-term finance for industrial, agricultural, or infrastructure development in India cannot qualify...

Income Tax Act | GST Would Not Form Part Of Gross Receipts Under Section 44BB: ITAT Mumbai

The Mumbai Bench of the Income Tax Appellate Tribunal (ITAT) has held that Goods and Services Tax (GST) collected by a non-resident assessee cannot be included in gross receipts for computing presumptive income under Section 44BB of the Income Tax Act, 1961. A Bench comprising Vikram Singh Yadav (Accountant Member) and Sandeep Singh Karhail (Judicial Member) allowed the appeal filed by the assessee, Oceaneering International GmbH for Assessment Year 2023–24 and directed the Assessing...

Service Tax Cannot Be Levied On Membership & Participation Fees Paid To Foreign Associations Before 01.07.2012: CESTAT Chennai

The Chennai Bench of Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) held that service tax cannot be levied on membership and participation fees paid to foreign associations such as International Packaging Group (IPG) or International Packaging Forum Network (IPFN) for the period prior to 01.07.2012. P. Dinesha (Judicial Member) and Vasa Seshagiri (Technical Member) stated that the demand for the period prior to 1.7.2012 on IPG/IFPN is unsustainable as there was no...