Telangana High Court Upholds Capital Gains Tax Exemption Despite Delay In Villa Registration

The Telangana High Court has held that a taxpayer who invested capital gains in a residential villa under a joint development agreement cannot be denied tax exemption merely because the developer delayed construction and execution of the sale deed. The court observed that delays beyond the assessee's control cannot defeat the benefit intended under the law. A Division Bench of Justice P. Sam Koshy and Justice Narsing Rao Nandikonda allowed the appeal filed by non-resident Indian Sudhakar...

Madras High Court Upholds Sales Tax Demand Against Ford India Over Breach of Exemption Conditions

The Madras High Court has upheld the levy of Tamil Nadu sales tax on Ford India, holding that the company breached the conditions of a state government notification granting a sales tax exemption on purchases of goods used for manufacturing passenger cars after availing the benefit by furnishing declarations.The dispute relates to the 2001-02 assessment yearThe exemption under G.O. Ms. No. 381 covered purchases of goods used in the manufacture, assembling, packing and labelling of passenger cars...

Gauhati High Court Rejects Hawkins Cookers' Plea To Compute VAT On Reduced Sale Price

The Gauhati High Court has held that Hawkins Cookers Ltd. must pay the balance 8.5% Value Added Tax (VAT) on the original sale price of pressure cookers after an earlier ruling held that the products attracted VAT at 12.5% before 2010 and not 4% as claimed by the company. Dismissing six revision petitions, the court rejected Hawkins' contention that the original sale consideration should be treated as inclusive of 12.5% VAT while computing the additional tax liabilityThe controversy was...

Calcutta High Court Upholds GST Order Uploaded A Day After Limitation Expired

The Calcutta High Court has upheld a GST adjudication order even though its summary was uploaded on the common portal a day after the limitation period expired. The court held that the statutory limitation applies to the issuance of the order and not to its subsequent service. Justice Raja Basu Chowdhury dismissed a writ petition filed by M. M. Motors and another challenging an adjudication order for the 2018–19 tax period. The petitioners argued that the adjudication order could not be treated...

Madras High Court Upholds 2014 Notification Granting Pan-India Powers To DGCEI Officers In Service Tax Cases

The Madras High Court has upheld a 2014 notification that authorised officers of the Directorate General of Central Excise Intelligence (now the Directorate General of GST Intelligence) to investigate service tax cases and issue show cause notices across India, regardless of where the taxpayer was located. The court held that the Central Board of Excise and Customs (CBEC) was empowered to confer all-India jurisdiction on Central Excise officers through notifications issued under the Finance...

Transit Pass Surrender Not Conclusive Proof Of Goods Movement, Doesn't Bar KVAT Penalty: Karnataka HC

The Karnataka High Court on 15 July held that surrender of a transit pass under the Karnataka Value Added Tax (KVAT) Act does not conclusively establish genuine interstate movement of goods or prevent authorities from initiating penalty proceedings. A Division Bench of Justices S.G. Pandit and Dr. K. Manmadha Rao dismissed an appeal filed by Sri C. Girish, proprietor of Jai Gurudev Road Carriers, and upheld the penalty imposed under Section 53(12) of the KVAT Act (which provides for penalty...

Karnataka High Court Holds CESTAT Must Decide Limitation Plea Before Remanding Excise Matter

The Karnataka High Court on 2 July held that the Customs, Excise and Service Tax Appellate Tribunal (CESTAT) must decide a specifically pleaded limitation objection before remanding an excise dispute for adjudication on merits, as accepting the limitation plea could make further proceedings unnecessary. A Division Bench of Justices S.G. Pandit and Rajesh Rai K. disposed of the appeal filed by Lotus Printers Private Limited and directed CESTAT to decide the limitation issue while keeping its...

Madras High Court Quashes Bank Account Attachment Under GST For Lack Of Tangible Material

The Madras High Court on 8 July held that a provisional attachment of a taxpayer's bank accounts under Section 83 of the Central Goods and Services Tax (CGST) Act cannot be sustained merely by reproducing the statutory language without disclosing any tangible material or reasons to justify the action. Section 83 of the CGST Act empowers the Commissioner to provisionally attach a taxpayer's property, including bank accounts, to protect government revenue during the pendency of specified...

State Cannot Recover Unintended Benefit From Contractor After Accepting Lump Sum Contract: Telangana HC

The Telangana High Court on 9 July held that the State cannot withhold a contractor's security deposit by raising a claim of “unintended benefit” from Central Excise Duty exemption after accepting a lump-sum contract value without accounting for the exemption at the tender stage. A Division Bench of Justices Moushumi Bhattacharya and Gadi Praveen Kumar dismissed the State's appeal and partly allowed the appeal filed by Gammon Engineers and Contractors Pvt. Ltd. by setting aside the liberty...

CESTAT Delhi Allows Pharma Company's ₹70 Lakh Refund, Holds Claim Not Hit By Unjust Enrichment

The Customs, Excise and Service Tax Appellate Tribunal (CESTAT), New Delhi, has allowed a pharma company's appeal and held that its refund claim of about ₹70 lakh was not hit by unjust enrichment, setting aside orders directing the amount to be credited to the Consumer Welfare Fund.The ruling was delivered by a tribunal comprising Judicial Member Binu Tamta and Technical Member P.V. Subba Rao.Vivek Pharmachem India Ltd., which manufactures medicaments, had availed CENVAT credit of about ₹70 lakh...

Centre Notifies Oman's Social Protection Fund For Tax Exemption On Eligible Investments In India

The central government has notified Oman's Social Protection Fund (SPF) as a specified person eligible to claim tax exemption on qualifying investments made in India under the Income Tax Act, 2025. This will apply to eligible investments made from the date of publication of the notification in the Official Gazette until March 31, 2030, subject to prescribed conditions.The notification, issued by the Central Board of Direct Taxes (CBDT), requires the fund to file income tax returns within the...

Best Judgment Assessment Cannot Ignore VAT Composition Scheme Compliance By Contractor: Telangana HC

The Telangana High Court on 13 July held that a best judgment assessment cannot be sustained when the assessing authority fails to consider the statutory composition scheme opted by a works contractor and ignores the records maintained in accordance with the law. A Division Bench comprising Justices P. Sam Koshy and Nandikonda Narsing Rao set aside the assessment order passed against Chaitanya Enterprises, a proprietary concern engaged in electrical contracting works, which had challenged the...