Telangana High Court Upholds Sales Tax On Blended Coffee Sold By Trademark Holder Beyond First Sale

The Telangana High Court has upheld the levy of sales tax on blended coffee sold by a trademark holder. It held that a dealer marketing goods under its own brand name at a point other than the first sale is liable to tax under the Andhra Pradesh General Sales Tax Act. A division bench of Justice P. Sam Koshy and Justice Narsing Rao Nandikonda dismissed the tax revision cases filed by Amalgamated Holdings Limited. Relying on an earlier ruling, it found no reason to interfere with the concurrent...

IT Reassessment Notice Received On April 1, 2021, Must Follow New Reassessment Regime: Bombay High Court

The Bombay High Court has held that an income tax reassessment notice dated and digitally signed on March 31, 2021, cannot be treated as having been issued on that date if it was actually dispatched through the Income Tax Business Application (ITBA) portal and reached the assessee only on April 1, 2021. The court ruled that the notice would be deemed to have been issued on April 1, 2021, and the reassessment proceedings must continue under the framework introduced by the Finance Act, 2021. A...

LiveLawBiz Indirect Tax Weekly Round-Up: July 06 - July 12, 2026

HIGH COURTSAndhra Pradesh HCAP High Court Sets Aside VAT Orders On ISRO's Satish Dhawan Space Centre, Flags National InterestCase Title : Satish Dhawan Space Centre Shar v. The State of AP Case Number : WRIT PETITION NO: 6971/2026 CITATION : 2026 LLBiz HC(APH) 44The Andhra Pradesh High Court on 22 June set aside VAT assessment orders passed against Satish Dhawan Space Centre SHAR, a unit of the Indian Space Research Organisation, holding that an improper tax burden on an institution engaged...

Non-Filing Of Service Tax Returns Alone Doesn't Prove Tax Evasion; CESTAT Chennai Quashes ₹37.54 Lakh Demand

The Chennai Bench of the Customs, Excise and Service Tax Appellate Tribunal (CESTAT) has set aside a service tax demand of ₹37.54 lakh against SPI Technologies India Pvt. Ltd., holding that the Department could not invoke the extended limitation period merely because the alleged tax liability surfaced during a departmental audit. The tribunal held that the revenue had failed to establish the wilful suppression or intent to evade tax required to invoke the extended period. A bench of Judicial...

Supreme Court Upholds Karnataka's Retrospective Withdrawal Of Sales Tax Exemption For Imported Sugar

The court, however, held that no penalty could be imposed on dealers for pre-amendment transactions, while interest could be levied only from the date of a lawful demand following reassessment.

Bombay High Court Says ITAT Took 'Pedantic Approach', Condones 1,797-Day Delay in Income Tax Appeals

The Bombay High Court has set aside an Income Tax Appellate Tribunal (ITAT) order refusing to condone a 1,797-day delay in appeals filed by Uttar Bhartiya Education Society. Holding that the trust's explanation for the delay deserved due consideration, the court condoned the delay and restored the appeals for a decision on merits. A division bench of Justice G.S. Kulkarni and Justice Aarti Sathe held that the tribunal had adopted a "pedantic approach" while rejecting the charitable trust's...

Charitable Status Cannot Be Denied Merely Because Activities Benefit Specific Industry: ITAT New Delhi

The New Delhi Bench of the Income Tax Appellate Tribunal (ITAT) on 10 July held that an institution does not lose its charitable character merely because its activities benefit a specific industry, and set aside the Commissioner (Exemptions)'s order rejecting registration of the National Lubricating Grease Institute India Chapter under Sections 12AA/12AB of the Income Tax Act. A Bench comprising Accountant Member S. Rifaur Rahman and Judicial Member Vimal Kumar held: “Only because of...

No GST Payable On Machinery Returned For Testing Without Fresh Consideration: Karnataka High Court

The Karnataka High Court held on 25 June that a company does not incur GST liability when it returns machinery to a seller for testing without any fresh consideration, as the movement does not amount to a taxable supply. A Division Bench of Justices S.G. Pandit and Rajesh Rai K dismissed the State's appeal and upheld the Single Judge's order reducing the penalty imposed on AAM India Manufacturing Corporation Pvt. Ltd. to Rs.25,000, while directing the Department to refund the remaining amount...

LiveLawBiz Direct Tax Weekly Round-Up: July 06 - July 12, 2026

HIGH COURTSGujarat HCGujarat HC Holds Reassessment Notice Cannot Be Challenged After Assessment Order, Directs Appeal RemedyCase Title : Jitendra Shankarlal Mistri v. Income Tax Officer, Ward-1 & Anr. Case Number : R/Special Civil Application No. 7485 of 2026 (with connected matters) CITATION : 2026 LLBiz HC(GUJ)87The Gujarat High Court on 29 June held that a reassessment notice cannot be challenged through a writ petition after reassessment proceedings have culminated in an assessment...

Madras High Court Holds Unreasonable Delay Bars Duty Drawback Recovery, Quashes ₹38.77 Lakh Demand

The Madras High Court on 7 July held that customs authorities cannot recover duty drawback benefits after an unreasonable and unexplained delay, even when the relevant rules do not prescribe a specific limitation period for such recovery. Justice Hemant Chandangoudar quashed the recovery proceedings initiated against A.Kiyasdeen, an exporter for recovery of Rs. 38.77 lakh in duty drawback and a penalty of Rs. 1 lakh, holding that the proceedings initiated several years after the drawback was...

Madras High Court Refuses To Quash Canon India GST Notices, Says Taxpayer Must Reply Before Challenge

The Madras High Court has held that a taxpayer must first respond to a GST show cause notice before challenging the invocation of Section 74 of the Goods and Services Tax (GST) law (which deals with tax demands involving alleged fraud, suppression or wilful misstatement). Justice C. Saravanan dismissed Canon India Pvt. Ltd.'s writ petitions challenging the GST DRC-01 show cause notices but granted the company 30 days to file detailed replies. He observed: "The fact that the Petitioner has not...

Ahmedabad CESTAT Grants Service Tax Relief On Government Staff Quarters, Remands APMC Issue

The Ahmedabad Bench of the Customs, Excise and Service Tax Appellate Tribunal (CESTAT) on 9 July held that construction of residential staff quarters and government infrastructure meant for personal use of government employees is not liable to service tax under the Finance Act, 1994.Technical Member Sanjiv Srivastava and Judicial Member Dr. Ajaya Krishna Vishvesha partly allowed the Revenue's appeal against contractor Paresh S. Patel. While it granted relief for construction works undertaken for...