Airport Entry-Ticket Licensee Liable For Service Tax Only From June 1, 2007: Madras High Court

The Madras High Court has ruled that an airport entry-ticket licensee was liable to pay service tax only from June 1, 2007, and not for the earlier period.The court observed that the law was amended from that date to specifically bring the renting of immovable property within the service tax net. For the period before June 1, 2007, it noted that the Delhi High Court had ruled that service tax did not apply to the rental/licence fee in question.“...the appellant is liable to pay service tax as an...

Karnataka High Court Upholds Adjustment Of Excess Excise Duty Payment Towards Dues Of Another Firm

The Karnataka High Court has upheld the adjustment of an excess excise duty payment made towards the dues of one firm against the outstanding liability of another firm under the State's Karasamadhana-IV Scheme.A Division Bench comprising Justice Lalitha Kanneganti and Justice K.S. Hemalekha dismissed the State's appeal against the order of the Single Judge directing the authorities to adjust the excess amount of ₹43.23 lakh paid towards the liability of Nagalingaswami Trading Company (NTC)...

Live Cricket Broadcast Payments Not Taxable as Royalty, Non-Live Broadcast Rights Are: ITAT Delhi

The Delhi Income Tax Appellate Tribunal has reiterated that payments for live cricket broadcasts are not taxable as royalty. However, the portion attributable to repeat or non-live broadcasts can be treated as royalty. Relying on earlier judgments, including the Supreme court's ruling in CIT v. Sri Lanka Cricket, the tribunal ruled:“Accordingly, we hold that the ld. CIT(A) has rightly held the live telecast as not the Royalty u/s 9(1)(vi) of the Act. However, the repeat telecast i.e. non live...

Sale Price Below Manufacturing Cost Cannot Be Accepted for Excise Valuation Even For Independent Buyers: CESTAT Allahabad

The Allahabad CESTAT has ruled that a manufacturer cannot automatically rely on a declared sale price for excise valuation merely because the buyer is an independent party when the price is substantially and continuously below the cost of manufacture.The tribunal made the finding in appeals filed by Eveready Industries India Ltd. over the valuation of batteries supplied to two torch manufacturers. It held that it was unnecessary to conclusively decide whether the buyers were “related persons”...

CESTAT Hyderabad Upholds Customs Duty Exemption For Reliance's Plant Used In Petroleum Operations

The Customs, Excise and Service Tax Appellate Tribunal, Hyderabad has upheld customs duty exemption for Reliance Industries Ltd. on its import of a Mono Ethylene Glycol Reclamation Plant used in petroleum operations. It ruled that the benefit could not be denied merely because the plant was classified under a different tariff heading from Heading 8430, which was mentioned alongside the relevant entry in the exemption list.The tribunal observed that a plain reading of the exemption notification...

Centre Failed To Curb Fraudulent GST Registrations Using Innocent Citizens' PAN and Aadhaar: Delhi High Court

The Delhi High Court has observed that the Central government has failed to curb the practice of obtaining fraudulent GST registrations by misusing the PAN and Aadhaar details of innocent citizens, despite nearly nine years having elapsed since the enforcement of the Central Goods and Services Tax (CGST) Act, 2017.The Division Bench of Justices Anil Kshetarpal and Shail Jain made the observation while considering petitions alleging fraudulent GST registrations obtained using the PAN and Aadhaar...

Delhi High Court Refuses Writ Against Gold Confiscation, Cites Disputed Facts And Revision Remedy

The Delhi High Court has refused to entertain a writ petition challenging the absolute confiscation by Customs authorities, holding that disputes concerning the alleged oral show-cause notice and waiver of personal hearing involve disputed questions of fact which should be examined by the statutory revisional authority.The Division Bench of Justices Anil Khetarpal and Shail Jain observed that although the existence of an alternative remedy does not completely bar the High Court's jurisdiction...

Works Contracts Involving Material Supply Not Taxable As Maintenance Or Repair Service: CESTAT Bangalore

On 3 September, the Customs, Excise and Service Tax Appellate Tribunal (CESTAT), Bangalore, held that composite works contracts involving both supply of materials and services cannot be subjected to service tax under the category of Management, Maintenance or Repair Service (MMRS). A Bench comprising Judicial Member P.A. Augustian and Technical Member R. Bhagya Devi set aside service tax demands against Kerala Public Works Department contractor G. Janardhanan for repair, reconstruction and...

Delhi High Court Refuses Release Of Customs-Detained Gold Over Disputed Coercion Claim

The Delhi High Court has held that a disputed claim that a passenger was coerced into signing documents admitting non-declaration of goods cannot, by itself, justify their release in writ jurisdiction. The court cannot accept such a version over contemporaneous documents bearing the passenger's signatures when it raises disputed questions of fact.The Division Bench of Justices Anil Khetarpal and Shail Jain made the observation while dismissing a petition seeking release of two gold bars, which...

LiveLawBiz Indirect Tax Monthly Digest: August 2026

SUPREME COURTXerox's 'Kitting' Of Imported Photocopier Modules Is Not 'Manufacture': Supreme Court Upholds CESTAT RulingCase Title : Commissioner of Central Excise, Hyderabad-IV v. M/s Xerox India Ltd. & Ors. Case Number : Civil Appeal Nos. 5939–5941 of 2010 CITATION : 2026 LLBiz SC 257The Supreme Court has held that Xerox India's practice of grouping, plugging and pinning imported photocopier modules according to customers' requirements, commonly known as "kitting", did not amount to...

LiveLawBiz Direct Tax Monthly Digest: August 2026

SUPREME COURTCruise Does Not Cease To Be 'Carriage Of Passengers' Under Income Tax Act Because Of Onboard Hospitality: Supreme CourtCase Title : THE DIRECTOR OF INCOME TAX,(INTERNATIONAL TAXATION) VS M/S STAR CRUISES (INDIA) P. LTD. Case Number : Civil Appeal Nos. 3334-3336/2012 CITATION : 2026 LLBiz SC 259The Supreme Court has recently ruled that hospitality and entertainment offered on board a cruise do not alter the essential nature of the activity as the carriage of passengers under the...

CESTAT Sets Aside ₹93.75 Lakh Demand Against HCL, Upholds BPO Works Contract Credit Denial

On 1 September, the Allahabad Bench of the Customs, Excise and Service Tax Appellate Tribunal (CESTAT) held that CENVAT credit cannot be denied merely because input services were received at premises not included in the taxpayer's centralised registration, while upholding denial of credit on works contract services used for construction or setting up of Business Process Outsourcing (BPO) branches. A Bench comprising Judicial Member P.A. Augustian and Technical Member Sanjiv Srivastava partly...