LiveLawBiz Indirect Tax Weekly Round-Up: June 29 - July 05, 2026

HIGH COURTSAllahabad HCTransit State Lacks Jurisdiction To Levy GST Penalty Without Taxable Transaction: Allahabad High CourtCase Title : Maruti Enterprises v. State of U.P. and another Case Number : WRIT TAX No. - 1423 of 2026 CITATION : 2026 LLBiz HC (ALL) 51The Allahabad High Court has held that a State through which goods merely transit cannot invoke Section 129 of the Central Goods and Services Tax Act, 2017, to detain goods and levy penalty for the absence of an e-tax invoice where no...

ITAT Delhi Deletes ₹15 Crore Share Premium Addition, Says AO Cannot Reject Company's DCF Valuation

The Delhi bench of the Income Tax Appellate Tribunal (ITAT) has recently held that an Assessing Officer cannot reject a company's chosen Discounted Cash Flow (DCF) method for valuing shares merely because its actual financial performance differs from projections. Allowing MI Industries (India) Pvt. Ltd.'s appeal in part, the tribunal observed, “We are therefore of the considered view that rejection of DCF method adopted by the assessee by the AO is unwarranted and against the law.” A bench of...

CESTAT Chandigarh Quashes ₹55 Lakh Excise Duty Demand Over Pre-1991 Duty Collections

The Chandigarh Bench of the Customs, Excise and Service Tax Appellate Tribunal (CESTAT) has set aside an excise duty demand of ₹55 lakh against Kamal Steel Fabricators. It held that Section 11D of the Central Excise Act, which requires manufacturers to deposit with the Government excise duty collected from buyers, could not be invoked for amounts collected before the provision came into force. The tribunal observed, “Any statutory provision unless expressly stated cannot be applied...

GST Reimbursement Tied To Contractual Terms, Cannot Override Statutory Scheme: Karnataka High Court

The Karnataka High Court on 25 June held that disputes concerning reimbursement of additional GST liability arise out of contractual arrangements between contractors and employers and cannot be used to alter or override the statutory framework governing GST levy, assessment and recovery. A Division Bench of Justices S.G. Pandit and Rajesh Rai K. modified a Single Judge's order that had directed reimbursement of GST amounts to a contractor, which was passed relying on Sri Chandrashekaraiah and...

ITAT Delhi Deletes ₹9.16 Crore Bogus Purchase Addition Over Retrospective GST Registration Cancellation

The Delhi Bench of the Income Tax Appellate Tribunal (ITAT) has upheld the deletion of a ₹9.16 crore addition over alleged bogus purchases after finding that the taxpayer had produced extensive documentary evidence to support the transactions, despite the Revenue relying, among other things, on the retrospective cancellation of the supplier's GST registration. The tribunal also noted that the Assessing Officer had accepted the corresponding sales and had not rejected the books of account...

FAR Analysis Mandatory For TP Comparables, Mere “Functional Comparability” Insufficient: ITAT Delhi

On 3 July, the Delhi Bench of the Income Tax Appellate Tribunal (ITAT) held that in transfer pricing analysis, a company cannot be included as a comparable merely on the basis of a general assertion that it is “functionally comparable”, and that a proper Functions, Assets and Risks (FAR) analysis is mandatory before inclusion. Accountant Member Ramit Kochar and Judicial Member Raj Kumar Chauhan partly allowed an appeal by A. Hartrodt India Private Limited for statistical purposes and restored...

Timing Difference In Availment Of CENVAT Credit Not A Ground To Deny Export Refund: CESTAT Chennai

The Chennai Bench of the Customs, Excise and Service Tax Appellate Tribunal (CESTAT) on 1 July, held that refund of accumulated CENVAT credit on export of services cannot be denied merely on the ground that input service credit was availed after the date of the last export invoice of the relevant quarter, so long as the credit is otherwise admissible and remains unutilised. Technical Member Rajeev Tandon allowed all four appeals filed by Andritz Technologies Private Limited and set aside the...

CESTAT Chennai Rejects Reclassification Of Nikrothal Wire To Stainless Steel Wire CTH

The Chennai Bench of the Customs, Excise and Service Tax Appellate Tribunal (CESTAT) on 2 July held that the Customs Department cannot reclassify imported Nikrothal wire from Customs Tariff Heading (CTH) 75052200 (Nickel Alloy Wire) to CTH 72230091 (Stainless Steel Wire) when the issue has already been decided in the importer's own case and there is no change in facts or law. Judicial Member P. Dinesha and Technical Member M. Ajit Kumar allowed an appeal filed by Alleima India Private Limited...

LiveLawBiz Direct Tax Weekly Round-Up: June 29 - July 05, 2026

HIGH COURTSBombay HCBombay High Court Sets Aside ITAT Order For Failing To Decide Challenge To Faceless Assessment ProcedureCase Title : Accost Media LLP v. Deputy Commissioner of Income Tax, Circle 27(1), Navi Mumbai & Connected Appeal Case Number : Income Tax Appeal No. 753 of 2025 with Income Tax Appeal (L) No. 25904 of 2025 CITATION : 2026 LLBiz HC(BOM) 360The Bombay High Court has recently set aside an order of the Income Tax Appellate Tribunal (ITAT), holding that the tribunal...

Madhya Pradesh High Court Upholds Tax On Soya Flour, Holds It Not Covered Under Exempt 'Atta' Category

The Madhya Pradesh High Court on 30 June upheld the orders of commercial tax authorities imposing Central Sales Tax on interstate sales of soya flour, holding that the product does not qualify as exempt “atta” under the relevant exemption notification. A Division Bench of Acting Chief Justice Vivek Rusia and Justice Pradeep Mittal dismissed the writ petition filed by Sonali Soya Pvt. Ltd. & Ors. and affirmed the tax demand raised against the petitioners. The judges held:“The Soya Flour...

AP High Court Sets Aside VAT Orders On ISRO's Satish Dhawan Space Centre, Flags National Interest

The Andhra Pradesh High Court on 22 June set aside VAT assessment orders passed against Satish Dhawan Space Centre SHAR, a unit of the Indian Space Research Organisation, holding that an improper tax burden on an institution engaged in critical space programmes could adversely affect national interest. A Division Bench of Justices R. Raghunandan Rao and T. C. D. Sekhar allowed the writ petition, set aside the assessment orders, and remanded the matter to the assessing authority for fresh...

ITAT Delhi Allows Paper Company's Appeal In Captive Power Transfer Pricing Dispute

The Delhi Bench of the Income Tax Appellate Tribunal (ITAT) has allowed an appeal filed by K.R. Pulp & Papers Ltd. against transfer pricing adjustments that had denied the company a tax deduction on profits earned from transferring electricity and steam from its captive power plant to its manufacturing unit.The tribunal held that electricity generated by the company's eligible captive power unit and supplied to its non-eligible manufacturing unit should be valued at the tariff charged by the...