Tax
S.153C Income Tax Act | Gujarat High Court Quashes Assessment Proceedings Citing 2-Yr Delay & Lack Of Date In 'Satisfaction Note'
The Gujarat High Court quashed a Section 153C Income Tax Act proceedings against a company after noting that the assessing officer's satisfaction note did not bear any date and that the note, though recorded in 2022 was "supplied" to the company only in 2024 i.e., after a delay of two years without any explanation. For context, Section 153C empowers the tax authority to assess the income of any person whose documents or assets are found during a search or seizure operation on a different...
GST | Parallel Proceedings On Sanctioned Refund An 'Overstep': Orissa High Court Quashes Recovery Proceedings As Appeal Order Stands
The Orissa High Court in a matter concerning, Double Jeopardy on Refund of about Rs. 14 crores where recovery proceedings were initiated under Section 73 for Refund already sanctioned by the Appellate Authority, has quashed the Show Cause Notice for recovery. In a recent judgment, the Division Bench, comprising Chief Justice Harish Tandon and Justice Murahari Sri Raman, observed that by initiating recovery the Joint Commissioner sought to revive a Review Order differing with the...
Customs | Barcode Scanners With Ancillary Mobile Features Not Classifiable As Smartphones; Exempted From Basic Duty: CESTAT New Delhi
The New Delhi Bench of Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) held that handheld barcode scanners, whose principal function is scanning, do not become smartphones merely because they have ancillary mobile features. The bench further stated that these scanners are entitled to exemption from Basic Customs Duty. Dr. Rachna Gupta (Judicial Member) and P.V. Subba Rao (Technical Member) stated that in the documents on record in the form of brochures, invoices, packing...
No Interest On Excise Duty Payable In Revenue-Neutral Situation Even Though Duty Demand Attained Finality: Calcutta High Court
The Calcutta High Court held that statutory interest under Section 11AB of the Central Excise Act is not leviable where the entire transaction is revenue-neutral and the duty paid is available as Cenvat Credit to downstream units, causing no loss to the exchequer. Justices Rajarshi Bharadwaj and Uday Kumar stated that the Tribunal has recorded a clear finding that the situation is revenue-neutral, inasmuch as the duty paid by the assessee was available as Cenvat credit to its ...
Kerala High Court Tax Annual Digest 2025
Direct Tax[Income Tax] Assessing Officer Not Only An Adjudicator But Also An Investigator, Cannot Remain Oblivious To Claim Without Enquiry: Kerala HCCase Title: Cochin International Airport Ltd v. The Assistant Commissioner Of Income TaxCase Number: ITA NO. 77 OF 2018The Kerala High Court stated that the Income Tax Commissioner can exercise Revisional Jurisdiction under Section 263 of the Income Tax Act, 1961.The Division Bench of Justices A.K. Jayasankaran Nambiar and Easwaran S. observed that...
Customs | I-STAT Blood Gas Cartridges Are Accessories Of Analyser And Not Diagnostic Reagents; No Differential Duty Payable: CESTAT Mumbai
The Mumbai Bench of Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) held that I-STAT blood gas cartridges are accessories used solely with the I-STAT analyser and cannot be classified independent diagnostic reagents. Consequently, the cartridges follow the classification of the analyser, the differential duty is not payable. Dr. Suvendu Kumar Pati (Judicial Member) and R. Bhagya Devi (Technical Member) held that since the glucometer strips have the same function of the...
Kerala High Court Grants Bail To Accused Caught In ₹5,000 Land Tax Bribery Trap By Vigilance
In an alleged bribe demand case of ₹5,000 for effecting mutation of property and payment of land tax, the Kerala High Court has granted bail to the accused after noting that the investigation was practically over and the petitioner had been in custody for more than 25 days. The order was passed by Justice Muralee Krishna S. while allowing a bail application filed by the sole accused in Crime No. VC.22/2025 of the Vigilance and Anti-Corruption Bureau (VACB), Ernakulam. The bail plea...
Rental Income From Co-operative Society's Administrative Building Taxable As 'Income From House Property': Mumbai ITAT
The Mumbai Bench of the Income Tax Appellate Tribunal (ITAT) has ruled that rental income earned by a co-operative society from letting out its administrative building is assessable under the head “Income from House Property” and not as “Income from Other Sources.” A Bench comprising Vice President Saktijit Dey and Accountant Member Jagadish was hearing cross appeals filed by Western Industrial Co-operative Estate Limited for Assessment Year 2017-18. The assessee, a registered...
Apple Watch Bands Classified as Watch Straps, Not Smartwatch Parts: CAAR Mumbai
The Mumbai, Customs Authority for Advance Ruling (CAAR) in a ruling dated December 23 2025, has clarified that Apple Watch Bands (Leather and Non-Leather) could not be understood in its 'popular sense' as a part of Apple Watch. Apple's Watch has a host of functionalities such as timekeeping, storage of data, voice messages, heart beat sharing, sketching via a paired IPhone. Apple's Watch gets covered under CTH 8517 6290 of the First Schedule of the Customs Tariff Act, 1975. Shri....
Excess Duty Paid On PCMX For Manufacturing Of Dettol Products Refundable As Prices Were Government Controlled: CESTAT Chennai
The Chennai Bench of Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) held that excess duty paid on PCMX (Para-Chloro-Meta-Xylenol) used for manufacturing Dettol products is refundable, as the prices of products were controlled by the Government. The bench opined that under such circumstances, the doctrine of unjust enrichment does not apply. Vasa Seshagiri Rao (Technical Member) opined that when prices are controlled by the government, the manufacturers cannot charge any ...
AI-Powered MIKO-3 Smart Robot Classified As ADP Machine, Not Electronic Toy; Exempt From Basic Customs Duty: CESTAT Chennai
The Chennai Bench of Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) held that the AI-powered MIKO-3 smart robot performs the essential function of Automatic Data Processing (ADP) Machines and cannot be classified as an electronic toy merely because it offers learning or entertainment features. P. Dinesha (Judicial Member) and Vasa Seshagiri Rao (Technical Member) observed that the Revenue has not discharged its burden of disproving the classification declared by the...
Excise | Cutting/Slitting HR-CR Coils Not Manufacturing; Duty Paid On Non-Excisable Activity Cannot Make It Excisable: CESTAT Chennai
The Chennai Bench of Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) held that cutting and slitting of HR-CR coils does not amount to manufacture and therefore, payment of duty on such non-excisable activity cannot create a legal fiction to treat it as excisable. The bench further held that CENVAT (Central Value Added Tax) credit availed in respect of such activity is inadmissible, even if duty was paid. P. Dinesha (Judicial Member) and Vasa Seshagiri Rao (Technical ...