Madras High Court Grants Stay On ₹101.14 Crore TDS Penalty Recovery Against Cognizant

The Madras High Court on 6 July granted interim relief to Cognizant Technology Solutions India Private Limited by staying recovery proceedings arising from tax deducted at source (TDS) penalty demands exceeding Rs. 101.14 crore. A Bench of Justice Senthilkumar Ramamoorthy found that the company had established a prima facie case, directed it to deposit Rs. 4 crore within two months, and stayed recovery of the balance penalty amount until the Commissioner of Income Tax (Appeals) decides the...

GSTAT Launches Token Facility For Appellants Facing Issues In E-Filing Appeals

The Goods and Services Tax Appellate Tribunal (GSTAT) has activated the token generation facility for appellants facing issues while filing appeals on its e-filing portal. The facility is available through the scrolling highlights on the portal's home page. A token generated on or before July 31, 2026, will be treated as sufficient compliance with the appeal filing deadline. The appellant must, however, complete the actual filing within 60 days from the date of token generation. The tribunal...

Liquor Licensee Can't Avoid Licence Fee By Citing Business Losses, Natural Calamities: Himachal Pradesh HC

The Himachal Pradesh High Court has held that a liquor licence holder cannot back out of its obligation to pay the licence fee after voluntarily participating in an auction and accepting the licence terms, merely because the business later became commercially unviable. The court ruled that business losses, natural calamities or lower liquor prices in a neighbouring State do not dilute the contractual obligations arising from the licence A Division Bench of Justices Vivek Singh Thakur and...

Appellate Order Setting Aside GST Refund Rejection Doesn't Bar Fresh Examination Of Claim: Delhi HIgh Court

The Delhi High Court has held that an appellate order setting aside the rejection of a GST refund claim does not automatically entitle the assessee to an unconditional refund, nor does it bar tax authorities from examining the claim afresh on other legally permissible grounds.A Division Bench of Justices Anil Kshetrapal and Shail Jain made the observation while dismissing a writ petition filed by M/s Karamsar Poultry Appliances, which had challenged an order rejecting its refund claim of ₹3.44...

Customs Duty Exemption Available For ELISA Kits Cannot Be Claimed By Individual Components: CESTAT Delhi

The Principal Bench of the Customs, Excise, and Service Tax Appellate Tribunal (CESTAT), New Delhi, has recently held that QFT Tubes, though functionally used with ELISA kits, are not entitled to the concessional 5% Basic Customs Duty (BCD) available to ELISA kits. ELISA (Enzyme-Linked Immunosorbent Assay) is a diagnostic testing method used to detect diseases by analysing blood samples.It held that the exemption applies only to the complete diagnostic kit and not to its individual...

Standard Asset Provision Write-Back Can't Be Taxed Twice If Already Accounted For: Mumbai ITAT Remands Issue

The Mumbai Bench of the Income Tax Appellate Tribunal (ITAT) has remanded to the Assessing Officer (AO) the issue of taxability of a ₹3.14 crore write-back of general provision for standard assets, observing that if the assessee had already accounted for the amount in its profit and loss account and neutralised its effect while computing taxable income, it could not be brought to tax again. A bench of Judicial Member Beena Pillai and Accountant Member Arun Khodpia partly allowed the appeal...

Supreme Court Upholds Inclusion Of Royalty, DMF, NMET In Average Sale Price For Determining Iron Ore Royalty

The Supreme Court on Monday upheld the constitutional validity of rules requiring royalty, District Mineral Foundation (DMF) and National Mineral Exploration Trust (NMET) payments to be included in the sale value while computing the Average Sale Price (ASP) for iron ore. Dismissing a batch of petitions led by Kirloskar Ferrous Industries Ltd, the court held that the methodology is a valid measure to check evasion and does not violate the Constitution. A bench of Justices J.B. Pardiwala and...

Customs Appeals Cannot Face Maintainability Challenge At Pre-Admission Stage: Calcutta High Court

The Calcutta High Court on 10 July held that parties in customs appeals cannot challenge the maintainability of such appeals at the pre-admission stage, and must raise objections relating to jurisdiction or maintainability only after the Court determines whether the appeal involves a substantial question of law. A Division Bench of Justices Rajarshi Bharadwaj and Uday Kumar rejected the respondents' request for a preliminary hearing on maintainability while hearing a batch of appeals filed by...

Meeting Fees To Whole-Time Directors Not Taxable Under Reverse Charge Mechanism: CESTAT New Delhi

The New Delhi Customs, Excise and Service Tax Appellate Tribunal (CESTAT) on 13 July held that meeting fees paid to whole-time directors are not liable to service tax under the Reverse Charge Mechanism (RCM), as such payments arise from an employer-employee relationship and are excluded from the definition of “service” under the Finance Act, 1994. Judicial Member Binu Tamta and Technical Member P.V. Subba Rao allowed the appeal filed by Oriental Chemical Works and set aside the service tax...

Karnataka High Court Rejects Deccan Mining's Refund Claim, Holds Pay Slips Qualify As Consignment Notes

The Karnataka High Court on 8 July held that transportation services provided by individual truck owners can be treated as Goods Transport Agency (GTA) services if the documents issued for transportation contain the essential features of a consignment note. A Division Bench of Justices S.G. Pandit and Rajesh Rai K dismissed an appeal filed by Deccan Mining Syndicate (P) Ltd., holding that the "pay slips" issued by the transporters fulfilled the requirement of consignment notes under Section...

CESTAT New Delhi Restores India-Thailand FTA Benefit To P.C. Jeweller Citing Verification Rules

On Tuesday, 14 July, the Principal Bench of the Customs, Excise and Service Tax Appellate Tribunal (CESTAT) at New Delhi, held that the Directorate of Revenue Intelligence (DRI) cannot deny preferential customs duty benefits under the India-Thailand Free Trade Agreement without following the prescribed procedure to verify Country of Origin (COO) Certificates with the issuing authority. A Bench of Judicial Member Ashok Jindal and Technical Member K. Anpazhakan allowed a batch of appeals filed by...

Karnataka HC Holds Revised Return Mandatory For Lower VAT Claim, Rejects India Heritage Foundation's Plea

The Karnataka High Court on 8 July held that a taxpayer cannot seek a lower VAT rate during reassessment proceedings without first filing a revised return under the Karnataka Value Added Tax (KVAT) Act, and dismissed India Heritage Foundation, Bengaluru's revision petition seeking to reduce the VAT rate on iron and steel used in a works contract from 12.5% to 4%. A Division Bench of Justices S.G. Pandit and Rajesh Rai K relied on its earlier decision in Nandi Constructions v. State of Karnataka...