Tax
“Resources Completely Wasted Away”: Delhi High Court Fines Customs For Delaying Release Of Seized Goods Despite Order
The Delhi High Court has criticised the Customs Department for wasting public resources by withholding seized goods despite an adjudication order already having directed its unconditional release, eventually leading to avoidable litigation.A Division Bench of Justices Prathiba M. Singh and Shail Jain observed,“The present is a case which shows how the resources of the Customs Department are completely being wasted away in such matters.”The Court was dealing with a petition moved by a traveller...
Sunglasses Not Covered Under 'Spectacles' Entry; Taxable As Residuary Goods At 12.5% VAT: Punjab & Haryana High Court
The Punjab and Haryana High Court held that the sunglasses are classified as a residuary item, as they did not fall under any specified Schedule, and therefore are exigible to VAT (Value Added Tax) at the rate of 12.50%. Justices Lisa Gill and Meenakshi I. Mehta stated that sunglasses are indeed a distinct commodity, which is not covered under Entry 110 of Schedule B of PVAT Act and Entry 100-E Schedule-C of HVAT Act. In the case at hand, the case of the assessee/appellant was that...
Delhi High Court Upholds ₹9.73 Crore Duty On Import Of IPL Broadcast Equipment, Reduces Penalty For Misdeclaration
The Delhi High Court recently upheld the import duty imposed by the Customs, Central Excise & Service Tax Settlement Commission on a company authorised by BCCI to provide broadcast equipment and associated services for covering the Indian Premier League in 2012.A division bench of Justices Prathiba M. Singh and Shail Jain observed that under normal circumstances, this duty would have been liable to be refunded to the Petitioner as the import was merely temporary in nature.However, since...
Karnataka High Court Pulls Up CBIC For Non-Compliance, Seeks Clarity On Applicability Of S. 9(5) CGST Act To Uber's 'Subscription' Model
The Karnataka High Court directed the CBIC to clarify whether passenger transportation services under Uber's subscription model attract GST under Section 9(5) of the CGST Act. Justice S.R. Krishna Kumar also directed the CBIC to place the matter before the GST Council, if required, and file a status report. Section 9(5) of the Central Goods and Services Tax (CGST) Act, 2017, is a special provision under the reverse charge mechanism that mandates an Electronic Commerce Operator...
GST | Delhi High Court Grants Interim Relief To ICICI Bank Over Demand Of ₹216 Crores For Minimum Balance Non-Maintenance Charges
In yet another writ petition by ICICI Bank, the Delhi High Court has granted interim relief to ICICI Bank in a demand pertaining to charged levied by the Bank for not maintaining a Minimum Average Balance (MAB). As is the norm in the banking sector, while opening a bank account, the customer signs an Account Opening Form post which the banking relationship is activated. One of the conditions set out in the Form is that the customer must maintain a MAB in its account. The genesis...
Security & Scavenging Services To Govt Hospitals Qualify As "Pure Services", Exempt From GST: West Bengal AAR
The West Bengal Authority for Advance Ruling (AAR) has held that security and scavenging services provided to government-run medical colleges and hospitals qualify as “pure services” and are exempt from Goods and Services Tax (GST) under Notification No. 12/2017. The Authority held that services essential to the functioning of public hospitals, when supplied without any element of goods, fall within activities relating to functions entrusted to Panchayats and Municipalities under...
GSTAT Directs Builder To Return Over ₹20 Lakhs Benefit To Diya Greencity Homebuyers With Interest
The Goods and Services Appellate Tribunal (GSTAT), Anti Profiteering Division at Delhi has directed the Builder to return ₹20,21,440 out of the Amount not passed on, along with interest to the homebuyers of Diya Greencity Project. In a recent order, a Division Bench comprising, Shri. Mayank Kumar Jain (Judicial Member) and Shri. Anil Kumar Gupta (Technical Member) verified that benefit of about ₹13 crores to 1177 eligible homebuyers had been passed on but “No benefit has been passed to...
CESTAT Mumbai Grants Major Relief To Capgemini; Holds IT/ITES Services Eligible For CENVAT Credit
The Mumbai Bench of the Customs, Excise & Service Tax Appellate Tribunal has partly allowed an appeal filed by Capgemini Technology Services India Ltd., holding that most of the input services used in provision of Information Technology/Information Technology Enabled Services output services qualify as input services under Rule 2(l) of the CENVAT Credit Rules, 2004. The Bench comprising Member (Technical) M.M. Parthiban noted that Capgemini is engaged in providing IT and IT enabled ...
Tax Weekly Round-Up: December 15 - December 21, 2025
SUPREME COURTIncome Tax | Foreign Companies' Head Office Expenses For Indian Business Subject To Deduction Limit Under S. 44C : Supreme CourtCause Title: DIRECTOR OF INCOME TAX (IT)-I, MUMBAI. VERSUS M/S. AMERICAN EXPRESS BANK LTD. (and connected case)In a set-back to foreign companies doing business operations in India, the Supreme Court on Monday (December 15) held that all head office expenditure incurred by them outside India, whether common or exclusively for their Indian business...
Performance Incentives Earned By Advertising Agency From Media Firms Not Taxable: Delhi High Court
The Delhi High Court has made it clear that the incentives received by an advertising agency from media firms for achieving benchmark targets is not susceptible to levy of service tax.A division bench of Justices Prathiba M. Singh and Shail Jain observed,“An advertising agency primarily books slots on electronic media and books space in the print media on behalf of its clients. The advertising plans are negotiated with the media houses, with the help of the advertising agency and are finally...
Income Tax Act | ITAT Mumbai Grants Major Tax Relief To Vodafone; Deletes Depreciation, TDS & S.14A Disallowances
The Mumbai Bench of the Income Tax Appellate Tribunal has held that multiple additions made by the Assessing Officer could not be sustained in law. The Bench held that the transfer of passive telecom tower assets pursuant to a court-approved demerger amounted to a genuine “gift” under Section 47(iii), and the Assessing Officer could not artificially impute consideration or deny depreciation. It further ruled that roaming services do not involve human intervention so as to qualify as...
Digitalisation, GIS Mapping And Tech Consultancy For Jal Jeevan Mission Are 'Pure Services', Exempt From GST: West Bengal AAR
The West Bengal Authority for Advance Ruling (AAR) has held that digitalisation, GIS mapping, monitoring, data management and technical consultancy services provided to the Public Health Engineering Department (PHED) in connection with water supply schemes qualify as “pure services” and are exempt from Goods and Services Tax (GST) under Notification No. 12/2017. The Authority ruled that such services are directly related to functions entrusted to Panchayats and Municipalities under...