Tax
Non-Monetary Benefits From Manufacturer “Promotional” In Nature, Taxable Under GST: Tamil Nadu AAR
The Tamil Nadu Bench of Authority for Advance Ruling (AAR), comprising C. Thiyagarajan (CGST Member) and B. Suseel Kumar (SGST Member), has held that non-monetary benefits such as gifts, perquisites, and tour packages received by a dealer from a manufacturer amount to consideration for “support services” and are exigible to Goods and Services Tax (GST). A wholesale and retail paint dealer, approached the AAR seeking clarity on the GST implications of non-monetary benefits provided by...
Delay By Authority In Sanctioning Refund Claim Is 'Sufficient Cause' For Excluding Limitation: CESTAT Chennai
The Chennai Bench of Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has stated that delay by the refund authority in sanctioning a refund claim is 'sufficient cause' for excluding limitation under Section 14 of the Limitation Act. Section 14 of the Limitation Act, 1963, allows for the exclusion of time spent in good faith in a previous civil proceeding from the calculation of the limitation period for a subsequent suit or application. Vasa Seshagiri Rao (Technical...
Classification Of Goods Is Factual Issue, Not For Writ Court To Decide: Kerala High Court Upholds Seizure & Provisional Release Conditions
The Kerala High Court has held that the classification of 'Nata de Coco' is a factual matter that must be decided by the adjudicating authority through statutory proceedings and not by the writ court. Justice Ziyad Rahman A.A. stated that since it is a statutory proceeding contemplated under Section 124 of the Act, which should be followed from the proceedings under Section 110 of the Act, the question as to be sustainability of the classification cannot be considered by this Court in...
No Input-Tax Credit On IGST Paid Through Pre-Consultation Letter Or TR-6 Challan: Gujarat AAR
The Gujarat Authority for Advance Ruling (AAR) has disallowed Input Tax Credit (ITC) worth Rs. 27,14,559 paid towards differential IGST demand for mold-cleaning machine import from China through pre‑consultation letter/TR‑6 challan. In a ruling dated November 24, 2025 Gujarat AAR comprising Shri. Vishal Malani (Memmer- Central Tax) and Smt. Sushma Vora (Member- State Tax) ruled on twin aspects relating to eligibility to avail ITC on the basis of pre-consultation letter and limitation in...
Nescafé Premix Is 'Instant Coffee', Attracts Lower Sales Tax Rate: Bombay High Court
The Bombay High Court in a matter concerning classification of Nescafé Premix and if it was exigible to sales tax at the rate of 8% or 16%, has held that a premix resulting in 'Coffee and Instant drinks' would be classifiable as such, attracting lower rate of tax. (8% not 16%). In a judgment dated November 27, 2025 the Bench comprising Justice M.S. Sonak and Justice Advait M. Sethna re-iterated the cardinal principle of taxation in the context of the Bombay Sales Tax Act, 1959 that...
Income Tax Act | Documents Seized From Actor Yash's Residence Make Him 'Searched Person': Karnataka High Court Quashes Order U/S 153C
The Karnataka High Court has held that the search conducted at Actor Yash's residence makes him a 'searched person' under the Income Tax Act, as documents were seized from him, during the search and a panchanama was drawn. Hence, the order under Section 153C of the Act, which applies to persons other than the one originally searched, is without jurisdiction. Section 153C of the Income Tax Act, 1961 allows the Income Tax Department to assess or reassess the income of a person other than...
“Customs Cannot Resort To Delaying Tactics”: Delhi High Court Slams Dept For Not Releasing Seized Goods Despite Court Order
The Delhi High Court has slammed the Customs Department for repeatedly delaying implementation of its orders for release of articles seized from passengers arriving from abroad.Calling out the authority's “delaying tactics”, a division bench of Justices Prathiba M. Singh and Renu Bhatnagar warned of “stringent action” along with imposition of costs on errant officials.“This Court repeatedly notices that various judgments and orders which are passed, especially order directing release of detained...
Central Govt Ensuring GST Rate Cuts Are Passed On To Consumers: Finance Ministry Tells Lok Sabha
The Ministry of Finance has informed the Lok Sabha that, where several GST rates were rationalised, the Central Government has put in place a coordinated tax-administration mechanism to ensure that businesses actually pass on the GST rate-cut benefits to consumers. CBIC Monitoring Prices After GST Rate Cuts The Finance Ministry stated that the CBIC has been monitoring prices of key GST-covered goods, including packaged foods and pharmaceuticals, comparing prices pre- and post-22...
Centre Rationalises Drone Taxation: Uniform 5% GST, IGST & Customs Duty Relief For Flight Simulators
The Union Government has informed the Lok Sabha that drones across all categories will now attract a uniform 5% GST, following the recommendations of the 56th GST Council Meeting held on 03.09.2025, aimed at removing classification disputes and promoting ease of doing business in the aviation and emerging-technology sectors. Replying to Unstarred Question No. 708, the Minister of State for Civil Aviatio, stated that the GST Council's decision rationalises the earlier structure under...
Evasion Of Tax Cannot Be Attributed To Transporter When Consignor Accepts Error In Loading Goods: Allahabad High Court
The Allahabad High Court has held that evasion of tax cannot be attributed to the transporter when consignor accepts error in loading goods. Certain goods were intercepted in transit from Dehradun to Delhi. After notices were issued to the cosigner/ consignee, the goods were released in their favour. Subsequently, an order alleging intention to evade tax under Section 129 of the GST Act was passed against the petitioner who was merely a transporter of the goods. Appeal against the...
Imitation Zari Thread Made From Plastic/Polyester Film With Aluminium Metal Attracts 5% GST, Post Rate-Rationalization
The Gujarat Authority for Advance Ruling (AAR) has held that supply of imitation zari thread or yarn made from metallised polyester or plastic film, widely used in sarees or garments in place of real gold or silver zari thread would attract GST at 5%. In a ruling dated November 29, 2025 Gujarat AAR comprising Shri. Vishal Malani (Memmer- Central Tax) and Smt. Sushma Vora (Member- State Tax) perused the decision of the 52nd GST Council Meeting regarding imitation zari thread or yarn made...
Virtual Services Rendered By Foreign Law Firms In India Not Taxable Under India-Singapore DTAA: Delhi High Court
The Delhi High Court has held that in the absence of any physical presence, virtual services rendered by a foreign law firm in India would not constitute taxable service under India-Singapore Double Taxation Avoidance Agreement.A division bench of Justices V. Kameswar Rao and Vinod Kumar observed,“Article 5(6) of the DTAA only contemplates rendering of services by employees present within the country. If that be so, it is not for this Court to analyse the status or merits of a virtual service...