Sales Directly Linked To Export Cannot Be Taxed Under Central Sales Tax: Andhra Pradesh High Reaffirms

The Andhra Pradesh High Court has recently reiterated that where export is the direct result of a sale and the two form an integrated transaction that cannot be dissociated, such a sale is protected under Article 286 of the Constitution and cannot be subjected to State taxation. Explaining the law, the Division Bench of Justice R. Raghunandan Rao and Justice T.C.D. Sekhar held that a sale is “in the course of export” under Section 5(1) of the Central Sales Tax Act, 1956, when the sale itself...

Supreme Court Reverses 'Alien Modality' Of Refunding IGST To Torrent Power, Orders Credit To Consumer Welfare Fund

The Supreme Court has set aside the Gujarat High Court's judgment that had quashed the transfer of ₹19.28 crore in GST refunds to the Consumer Welfare Fund and directed that the amount be refunded to Torrent Power Ltd. for adjustment in electricity tariff. Holding that such a mechanism was “not contemplated by Section 54 of the CGST Act and the Rules framed therein,” a Bench of Justice Sanjay Kumar and Justice K. Vinod Chandran directed the company to transfer the amount to the authorities...

GST Show Cause Notices Can Be Issued On Monthly Returns Without Waiting For Annual Return: Madras High Court

The Madras High Court recently ruled that a show cause notice under Section 74A of the GST law can be validly issued for F.Y. 2024-25 on the basis of discrepancies noticed in monthly returns, without awaiting the filing of the annual return.Section 74A of the GST Act, applicable from FY 2024-25 onwards, governs the determination of tax not paid or short paid or input tax credit wrongly availed or utilised.Referring to Section 74A(1) to 74A(4) of the GST Act, the bench clarified that "the...

Gujarat High Court Sets Aside TDS Order For Failure To Apply 'Make Available' Test Under India–Singapore DTAA

The Gujarat High Court has recently set aside a tax deduction at source order against Solvay Specialities India, holding that the Income Tax Department failed to apply the mandatory “make available” test under the India–Singapore tax treaty. Under this test, tax authorities are required to first determine whether the foreign service provider actually passed on any technical knowledge, skill, or know-how in a way that allows the Indian company to use it independently in the future. Without...

Forfeited Security Deposits And Tender Fee Do Not Attract Tax: CESTAT Delhi

The New Delhi Bench of Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) on 3 February held that forfeiture of the Earnest Money Deposit (EMD), Security Deposit (SD) and collection of tender fee do not attract service tax, as such amounts cannot be treated as consideration for a declared service under the Finance Act, 1994. A Bench comprising Judicial Member Dr. Rachna Gupta and Technical Member Hemambika R. Priya, allowed the appeal filed by RajComp Info Services Limited, an...

Affiliation Fees Collected By Universities Liable To GST: Madras High Court

On Wednesday, the Madras High Court held that affiliation fees collected by universities from affiliated colleges are liable to GST and are not exempt under Notification No. 12/2017-Central Tax (Rate). A Division Bench of Justice G. Jayachandran and Justice K.K. Ramakrishnan delivered the ruling. The judges were hearing a writ petition filed by Bharathidasan University, challenging the GST demand notices issued for the assessment years 2019-2020 to 2022-23. They held: "In India, there are...

GST | Supreme Court Declines To Interfere With Delhi HC Refusal To Exercise Writ Jurisdiction In Fraudulent ITC Case

The Supreme Court has recently declined to interfere with a Delhi High Court order declining to entertain writ petitions challenging show cause notices alleging fraudulent availment of Input Tax Credit (ITC), holding that no good ground was made out for intervention under Article 136 of the Constitution. In an order dated January 30, 2026, a bench of Justice Manoj Misra and Justice Manmohan dismissed the special leave petitions arising from the Delhi High Court's judgment of December 5, 2025,...

PIL In Supreme Court Challenges Income Tax Law Allowing Search Of Digital Devices, Cloud Data

A public interest litigation has been filed before the Supreme Court challenging the constitutionality of provisions in the Income Tax Act, 2025 that empower tax authorities to conduct searches of “computer systems” and “virtual digital space”, including personal electronic devices, cloud servers, emails and private communications. The plea, filed under Article 32 of the Constitution by entrepreneur Vishwaprasad Alva, assails Section 247 of the Income Tax Act, 2025, as well as the corresponding...

Bombay High Court Sets Aside Composite GST Notice Against ICAD School

The Bombay High Court on Friday set aside a composite show cause notice spanning five financial years, issued to ICAD School of Learning Private Limited, a JEE and NEET coaching centre that offers hostel and mess facilities.On 6 February 2026, a Bench of Justice Anil L. Pansare and Justice Nivedita P. Mehta emphasised that consolidation defeats the statutory scheme of assessment and recovery for distinct financial years.Taking note of the GST framework, which mandates filing of returns with...

Supreme Court Issues Notice In Plea Challenging Punjab and Haryana HC Ruling Against AO Consulting Superiors Before IT Assessment

The Supreme Court on Monday issued notice on an appeal by the Income Tax Department against a Punjab and Haryana High Court judgment that held that an Assessing Officer abdicated his quasi-judicial function by repeatedly consulting superior officers before passing an assessment order. A bench of Justice Pamidighantam Sri Narasimha and Justice Alok Aradhe issued notice on both the application seeking condonation of delay and the Special Leave Petition. The matter is listed next on March 16,...

Supreme Court Upholds Delhi High Court Ruling On Duty Drawback For Unlocked Mobile Phones

The Supreme Court has recently dismissed a Special Leave Petition filed by Customs, thereby letting stand a Delhi High Court ruling that unlocking or activating mobile phones prior to export does not disentitle exporters from claiming duty drawback. By an order dated January 30, 2026, a Bench of Justices J.B. Pardiwala and Joymalya Bagchi declined to interfere with the Delhi High Court's judgment, observing that it found “no good ground to interfere with the impugned order passed by the High...

Income Tax | Mere Disagreement On Facts With Assessing Officer No Ground to Invoke Writ Jurisdiction: Delhi High Court

The Delhi High Court has reiterated that its writ jurisdiction under Article 226 of the Constitution cannot be invoked merely because a taxpayer disputes the correctness of facts or the material relied upon by the Assessing Officer in reassessment proceedings under the Income Tax Act, 1961.A division bench of Justices Dinesh Mehta and Vinod Kumar observed,“A challenge to notice or proceedings can be considered normally, in case where the notice and proceedings are without jurisdiction. Simply...