Tobacco Transport By Individual Truck Owners Not Goods Transport Agency: CESTAT Quashes Service Tax Demand

The Hyderabad Bench of Customs, Excise and Service Tax Appellate Tribunal (CESTAT) has set aside service tax demand on Indian Tobacco Traders under the heading Goods Transport Agency (GTA) Service, as tobacco leaves were transported through individual truck owners. In an order dated November 28, 2025 the Bench comprising Mr. A.K. Jyotishi (Technical Member) and Mr. Angad Prasad (Judicial Member) clarified that even if a person had provided Goods Transport Service but has not issued the ...

Bunker Supply Of Fuel To ASEAN Explorer Is Duty-Free Export: CESTAT Quashes Excise Demand Against Bharat Petroleum

The Bangalore Bench of Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has stated that bunker supplies of High Viscosity Furnace Oil (HVFO) made by Bharat Petroleum to the vessel to 'cable ship ASEAN explorer' qualify as duty-free exports under Rule 19 of the Central Excise Rules, 2002, read with Notification No. 46/2001-CE(NT). P.A. Augustian (Judicial Member) and Pullela Nageswara Rao (Technical Member) examined whether the supplies of High Viscosity Furnace Oil (HVFO)...

No Double Pre-Deposit For Same Tax Demand; Second Appeal Cannot Be Conditioned On Fresh Payment: Delhi High Court

The Delhi High Court has held that when a taxpayer has already deposited the mandatory 10% pre-deposit for the same disputed tax amount before the State GST Appellate Authority, the Central GST authorities cannot insist on another separate pre-deposit for the same amount while filing a second appeal. The Bench stated that the law does not permit duplication of pre-deposit for the same tax demand, and therefore the taxpayer should be allowed to file an appeal without paying again. A...

Tax Weekly Round-Up: November 24 - November 30, 2025

SUPREME COURT'Seems Tax Department Has Not Trusted Even Its Lawyers' : Supreme Court Flags Procedural Delays In IT Dept's Petition FilingsCause Title: THE COMMISSIONER OF INCOME TAX (EXEMPTIONS) VERSUS THE HYDERABAD CRICKET ASSOCIATION, HYDERABADThe Supreme Court recently criticised the Income Tax Department for filing its Special Leave Petition after a delay of 524 days, observing that the Department, despite having an entire team of legal experts, failed to act on its own lawyers' advice and...

Finance Ministry Tables Bill To Hike Excise On Tobacco, Introduces New Cess On Pan Masala

On December 1, 2025, the finance minister Nirmala Sitharaman introduced the Central Excise (Amendment) Bill, 2025 and the Health Security and National Security Cess Bill, 2025, in the Lok Sabha, which will replace the existing Compensation Cess. The Central Excise (Amendment) Bill, 2025, seeks “to give the government the fiscal space to increase the rate of central excise duty on tobacco and tobacco products so as to protect tax incidence”. The Central Excise (Amendment) Bill,...

Income Tax Act | Payment For IPLC Services Not 'Royalty' U/S 9; Assessee Entitled To Deduction U/S 40(a)(i): Madras High Court

The Madras High Court has held that payment for IPLC (International Private Leased Circuits) Services does not constitute 'royalty' under Section 9 of the Income Tax Act, and that the assessee is entitled to a deduction under Section 40(a)(i) of the Income Tax Act. Chief Justice Manindra Mohan Shrivastava and Justice Sunder Mohan examined whether the payment made by the assessee for IPLC services constitutes 'royalty' under Section 9 of the Income Tax Act, and whether the assessee is...

Delhi High Court Allows Consolidated Appeal Against Single GST Demand Order Covering Multiple Financial Years

The Delhi High Court has allowed the filing of a consolidated appeal in a matter where a 'common and single' order was issued, although the demand pertained to multiple financial years. In an order dated November 18, 2025, the Division Bench comprising Justice Prathiba M. Singh and Justice Shail Jain allowed the Petitioner to take recourse to a single consolidated appeal against consolidated GST demands raised via one order while stating that whether Section 74 was correctly invoked...

Income Tax Act | Refund Can't Be Withheld U/S 245 Unless Department Establishes Tax Liability: Calcutta High Court

The Calcutta High Court stated that the Income Tax Department cannot withhold a refund under Section 245 of the Income Tax Act, 1961, unless it establishes tax liability. The Bench of Justice Raja Basu Chowdhury observed that it is true that Section 245 of the said Act authorises the Income Tax Department to set off a refund against remaining tax payable. Unfortunately, in this case, the respondent has not been able to demonstrate that any amount is payable or is due from the...

IGST ITC Declared In GSTR-9 Can Be Set Off Against Tax Demand If Missed In Monthly GSTR-3B: Calcutta High Court

The Calcutta High Court has stated that IGST (Integrated Goods and Services Tax) ITC (Input Tax Credit) declared in GSTR-9 can be set off against tax demand if missed in the monthly GSTR-3B. Justice Om Narayan Rai bench observed that the appellate authority did not justify why the IGST ITC declared in GSTR-9 could not be set off against the tax demand. In this case, the assessee/petitioner failed to claim Input Tax Credit (ITC) in respect of IGST pertaining to the months of May...

GST Authorities Cannot Act Against Transporter Of Goods When Genuine E-Way Bill Present: Allahabad High Court

The Allahabad High Court has held that under GST Act, the department cannot proceed against an assessee for transport of goods, if a genuine e-way bill is present along with the consignment. Justice Piyush Agarwal held that this would be especially impermissible if the validity of the e-way bill was not disputed by the authorities. “Once the goods in question is duly accompanying by e-way bill, which clearly demonstrates the genuineness of the documents and during validity of the...

Designated Committee Must Adjust Pre-Deposits & Investigation Recoveries While Issuing Final Statement Under SVLDRS-3 Scheme: Bombay HC

The Bombay High Court has held that the Designated Committee under the Sabka Vishwas (Legacy Dispute Resolution) Scheme, 2019 (SVLDRS) is mandatorily required to verify and consider pre-deposits and amounts recovered during investigation under Form SVLDRS-3 (final statement issued by the Designated Committee showing the exact amount payable by the taxpayer under the Scheme) A Division Bench comprising Justice M.S. Sonak and Justice Advait M. Sethna, while hearing a writ petition filed...

Punjab & Haryana High Court Directs CBDT To Issue Circular Extending ITR Due Date For Audit Cases To 30.11.2025 For A.Y. 2025-26

The Punjab and Haryana High Court has directed the CBDT (Central Board of Direct Taxes) to issue a circular extending the ITR (Income Tax Return) due date for audit cases to 30.11.2025 for the Assessment Year 2025-2026. Justices Lisa Gill and Meenakshi I. Mehta were addressing a petition filed by the assessee/petitioner seeking a direction to the Central Board of Direct Taxes to extend the due date for filing of tax audit reports for a reasonable period from 30.09.2025 and,...