Supreme Court Lets LG Electronics Withdraw Challenge To Rajasthan HC Entry Tax Ruling

The Supreme Court on Wednesday permitted LG Electronics India Pvt. Ltd. to withdraw its Special Leave Petitions challenging a Rajasthan High Court ruling on entry tax, granting it liberty to seek a review before the High Court as the constitutional validity of the provision remains pending. A Bench of Justices Pamidighantam Sri Narasimha and Alok Aradhe recorded the submission that the vires of the provision had not been examined in the proceedings leading to the impugned judgment, since...

DMF, NMET Contributions Form Part Of Mining Royalty; GST Only On NMET: Telangana AAAR

The Telangana State Appellate Authority for Advance Ruling (AAAR) has held that statutory payments made to the District Mineral Foundation and the National Mineral Exploration Trust are not voluntary contributions. It ruled that these payments are mandated amounts linked to mining royalty and made in the course and furtherance of business. GST, however, is payable only on NMET contributions and not on payments made to DMF. A coram of Central Tax Member Sanjay Rathi and State Tax Member M....

Supreme Court Issues Notice On Vedanta's Appeal Against Denial Of Interest On Delayed Export Duty Refund

The Supreme Court of India on Monday issued notice in a civil appeal filed by Vedanta Limited challenging a judgment of the Calcutta High Court, which denied interest on a delayed refund of export duty, holding that statutory interest under the Customs Act becomes payable only after a valid refund application is filed. A Bench of Justices Manoj Misra and Manmohan condoned the delay. It directed issuance of notice, returnable in six weeks. The order records: “Delay condoned. Issue notice,...

Are Skin & Hair Care Treatments Taxable As Cosmetic Surgery? CESTAT Delhi Seeks Fresh Examination

The Delhi Bench of the Customs, Excise and Service Tax Appellate Tribunal (CESTAT), on 30 January, asked the lower authorities to re-examine whether skin and hair care treatments provided by a clinical establishment qualify as “Cosmetic and Plastic Surgery Services” and are therefore liable to service tax. A Bench comprising Judicial Member Binu Tamta and Technical Member Rajeev Tandon was examining an appeal filed by Trichoderm, a Delhi-based clinical establishment operating under the brand...

Supreme Court Refuses To Interfere With Delhi HC Ruling On CST Exemption For Inter-State Sales In Mitsubishi Case

The Supreme Court of India has refused to interfere with a Delhi High Court ruling that allowed a tax exemption claimed by Mitsubishi Corporation India for inter-state sales, rejecting the tax department's argument that the benefit was unavailable because an earlier sale of the goods was already exempt from tax. A bench of Justices J.B. Pardiwala and R. Mahadevan said the case did not warrant interference. “We see no good reason to interfere in the impugned judgment and order passed by the High...

Police Security Services Exempt From Service Tax Prior To June 2012: Madras High Court

The Madras High Court has allowed a plea seeking service tax exemption for police guard charges and escort duties, holding that such activities carried out by the State Police do not fall within the service tax net prior to 1 June 2012.A Division Bench of Justice Anita Sumanth and Justice Mummineni Sudheer, in a judgment delivered on 12 December 2025, examined service tax liability by referring to the definition of 'person' under the General Clauses Act.They noted that the Service Tax law...

Indirect Tax Monthly Digest: January 2026

SUPREME COURTCustoms Act | Statutory Tariff Headings And HSN Notes Prevail Over Common Parlance In Customs Classification : Supreme CourtCause Title: COMMISSIONER OF CUSTOMS (IMPORT) VERSUS M/S WELKIN FOODSCitation : 2026 LiveLaw (SC) 17The Supreme Court on Tuesday (January 6) observed that the 'Aluminum Shelves' imported for mushroom cultivation cannot be classified as 'parts of agricultural machinery' but are liable to be classified as 'aluminium structures', attracting a customs duty.A bench...

Delhi High Court Cuts TDS To 0.5% for UK Company Travelport, Sets Aside 1.6% Certificate

The Delhi High Court has granted partial relief to UK-based travel technology company Travelport International Operations Limited by setting aside a tax withholding certificate that required deduction of tax at 1.6%. A division bench of Justices Dinesh Mehta and Vinod Kumar directed the tax authorities to issue a fresh certificate providing deduction of tax at a reduced rate of 0.5%.Travelport, a United Kingdom tax resident, provides electronic global distribution services to the travel industry...

Delhi High Court Quashes Tax Demand On NGO, Raps Revenue for 'Taking Advantage' Of Taxpayer's Ignorance

The Delhi High Court has granted tax exemption to the International Buddhist Confederation, a Non-Governmental Organisation holding that tax authorities can't deny statutory benefits merely because of an inadvertent disclosure error made in the income tax return. A division bench of Justices Dinesh Mehta and Vinod Kumar also criticised the Revenue for taking advantage of the assessee's ignorance of his rights while passing the scrutiny assessment.Briefly put, the NGO filed its income tax return...

Service Tax Demand Based Solely On IT Returns Is Presumptive: CESTAT Mumbai

The Mumbai Bench of the Customs, Excise and Service Tax Appellate Tribunal (CESTAT) has held that a service tax demand based solely on differences between income tax and service tax returns is presumptive. A Bench comprising Judicial Member S.K. Mohanty and Technical Member M.M. Parthiban, on 7 January 2026, set aside a Rs. 7.05 crore service tax demand raised on MM Construction, a civil contractor engaged in road construction and drainage improvement works for municipal and government...

HAL Fire Extinguishers In Su30MKI Jets Are Integral Aircraft Parts Exempt From Duty: CESTAT Delhi

The Delhi Bench of the Customs, Excise and Service Tax Appellate Tribunal (CESTAT) has held that fire extinguishers installed by Hindustan Aeronautics Limited (HAL) in Su30MKI fighter jets qualify as integral aircraft parts and cannot be treated as stand-alone safety equipment to deny customs duty exemption. A Bench comprising Judicial Member Binu Tamta and Technical Member Hemambika R. Priya, on 9 January 2026, set aside the differential customs duty demand of Rs. 92 lakh against HAL . ...

CBIC Extends Deferred Import Duty Facility To Compliant Businesses From March 2026

On 1 February 2026, the Central Board of Indirect Taxes and Customs (CBIC) proposed extending the deferred payment of import duty facility to compliant businesses from 1 March 2026 through Notification No. 13/2026. Per the Notification, the facility will be available until 31 March 2028, and payments will be monitored through Indian Customs Electronic System (ICES) dashboards.The move is aimed at encouraging domestic manufacturers to obtain the Authorised Economic Operator (AEO)...