Tax
Multiple-Noticee GST Cases Must Be Adjudicated By Single Commissionerate Based On Highest Demand: Delhi High Court
The Delhi High Court has made it clear that in cases involving multiple noticees, adjudication has to be done by a single commissionerate, depending upon the highest monetary demand.A division bench of Justices Prathiba M. Singh and Shail Jain observed,“This Court is of the opinion that in cases involving multiple noticees, the adjudication cannot be done by different commissionerates and the commissionerate is decided, depending upon the monetary demands that are proposed to be raised and the...
GST Not Leviable On Interest/Penalty Charged By Chit Fund Companies For Delayed Payment Of Monthly Subscriptions: AP High Court
The Andhra Pradesh High Court held that interest and penalty collected by chit fund companies from defaulting subscribers for delayed payment of instalments are not taxable under GST. Justices R. Raghunandan Rao and T.C.D. Sekhar examined whether the interest/penalty collected for the delay in payment of the monthly subscription by the members forms a supply under GST. In the case at hand, the petitioner was a chit fund company engaged in the business of running chit schemes. The...
ITC Cannot Be Denied To Purchasing Dealer Solely Due To Retrospective Cancellation Of Supplier's GST Registration: Calcutta High Court
The Calcutta High Court held that Input Tax Credit (ITC) cannot be denied to a purchasing dealer merely because the supplier's GST registration was cancelled retrospectively. Justice Hiranmay Bhattacharyya noted that apart from holding that the invoice dates were after the effective date of cancellation of the registration certificate of the supplier in question, no other ground has been mentioned by the appellate authority as a ground for denial of Input Tax Credit. In this case,...
Income Tax Act | S.153C Trigger Starts On Handing-Over Date, Not Search Date: Delhi High Court
The Delhi High Court has dismissed an appeal filed by the Principal Commissioner of Income Tax (Central), Gurugram, upholding the Income Tax Appellate Tribunal's order which had rejected a reassessment notice issued under Section 153C of the Income Tax Act for AY 2013-14. A Division Bench of Justice V. Kameswar Rao and Justice Vinod Kumar held that the six-year block period under Section 153C must be computed from the date when seized documents were handed over to the Assessing Officer...
Can GST Be Levied On Medicines Supplied During In-Patient Treatment? Delhi High Court To Examine
The Delhi High Court will examine whether GST can be demanded on medicines and consumables supplied to patients as part of inpatient treatment.The court issued notice in a writ petition filed by Escorts Heart Institute and Research Centre Limited, a wholly owned subsidiary of Fortis Healthcare, challenging a GST demand of Rs 6.66 crore, along with interest and penalty. A division bench of Justice Prathiba M Singh and Justice Shail Jain clarified that adjudication proceedings arising from the...
Fraudulent CENVAT Credit Allegations Involving Complex Facts Not Fit For Writ Jurisdiction: Delhi High Court
The Delhi High Court has held that the precedents barring invocation of writ jurisdiction in cases involving complex GST/ ITC transactions equally apply to cases of fraudulent CENVAT Credit.A division bench of Justices Prathiba M. Singh and Renu Bhatnagar observed,“This Court has consistently taken the view that in cases involving fraudulent availment of ITC, ordinarily, the Court would not be inclined to exercise its writ jurisdiction…In such cases, it would be necessary to consider the burden...
Customs | Attending Weddings Can't Justify Indian Origin Foreigner Bringing Half Kilogram Gold Jewellery: Delhi High Court
The Delhi High Court has made it clear that under the garb of attending weddings where wearing gold jewellery is a common affair, a foreigner of Indian origin cannot be permitted to bring half kg gold jewellery to India.A division bench of Justices Prathiba M. Singh and Renu Bhatnagar further added that there was no explanation for the Petitioner, a US citizen, to bring 17 high value mobile phones (iPhones) to India and walk through the green channel.“A total of 17 mobile phones were brought by...
Export Held Up Due To Conflicting Lab Reports: Delhi High Court Asks Customs To Decide Pan Masala Exporter's Plea
The Delhi High Court has asked the Customs authorities to consider releasing the bank guarantee of a city-based pan masala exporter, forfeited after conflicting lab reports about adulteration of its export products with tobacco.A division bench of Justices Prathiba M. Singh and Shail Jain observed that when no objections were found in the first lab test report (CRCL), “the circumstances which warranted the issuance of the second CRCL report are completely unknown and it does not specify as to...
Home Delivery Services By E-Commerce Platforms To Consumers Exempt From GST: West Bengal AAR
The West Bengal Authority for Advance Ruling (AAR) has ruled that transportation services proposed to be provided by Flipkart India Private Limited under a new logistics model qualify as Goods Transport Agency (GTA) services and are exempt from GST when supplied to unregistered end customers under Serial No. 21A of Notification No. 12/2017–Central Tax (Rate). Flipkart India Private Limited, which was already engaged in B2B trading of goods, proposed to introduce a logistics model...
GST Interest/Penalty Waiver Can't Be Denied For Initial Wrong RCM Payment Through ITC Once Cash Compliance Is Made: Orissa High Court
The Orissa High Court has held that a GST interest and penalty waiver application filed by the petitioner cannot be rejected merely because a portion of tax liability under reverse charge mechanism (RCM) was initially discharged through input tax credit, subsequently pays the amount in cash and complies with legal requirements. A Division Bench comprising the Chief Justice Harish Tandon and Justice Murahari Sri Raman heard the writ petition filed by Simon India Ltd., a company engaged...
GST Department Can't Raise Fresh Demands For Pre-CIRP Period After Resolution Plan Approval: Delhi High Court
The Delhi High Court has made it clear that the GST Department cannot raise fresh demands for a period prior to the commencement of the Corporate Insolvency Resolution Process (CIRP) under the Insolvency and Bankruptcy Code 2016, after the resolution plan has been approved by the NCLT.A division bench of Justices Prathiba M. Singh and Shail Jain held, “no demand can be raised after the resolution plan has been approved ,in respect of a period prior thereto.”For context, Petitioner was involved...
Customs | Bird Feather Used In Fashion Accessories, Ready-To-Wear Items For Luxury Brands Classifiable As 'Dyed': Mumbai AAR
The Mumbai, Customs Authority for Advance Ruling (CAAR) has held that import of Dyed Feathers, wherein dying activity took place in France was classifiable as 'Dyed Feather' in terms of the General Rules of Interpretation. In a ruling dated December 15, 2025 Shri. Prabhat K. Rameshwaram on classification clarified that imported Feathers were intended for use as ornamental materials in embroidery for luxury brands and they underwent 'working' viz. washing, steam drying and dying...