New Constructions Cannot Be Taxed In Appeals Against Earlier Property Assessments: Kerala High Court

The Kerala High Court on 22 January held that new constructions cannot be brought to tax while deciding statutory appeals filed against earlier property tax assessments. It clarified that the scope of such appeals is confined to examining the validity of the existing demand and cannot be expanded to assess buildings constructed subsequently. A Bench of Justice Harisankar V. Menon observed: “The assessment as regards new constructions, if any, requires to be carried out with reference to the...

Tax Authorities Must Return Title Deed Given As Security Or Certify Its Loss: Kerala High Court

The Kerala High Court has clarified that where an assessee furnishes an original title deed to the tax Department as security, the authorities are duty-bound either to trace and return the document or to formally certify that it has been irretrievably lost. Justice Ziyad Rahman A.A., by a judgment delivered on 16 January, was deciding a writ petition filed by M/s Bash-P-International, a partnership firm earlier registered under the Kerala Value Added Tax Act, 2003 (KVAT Act). The Court...

Supreme Court Upholds Odisha Entry Tax Act, Dismisses Tata Sponge Iron's Challenge

The Supreme Court on Tuesday dismissed Tata Sponge Iron Limited's challenge to the constitutional validity of the Odisha Entry Tax Act, 1999, and upheld the Orissa High Court's refusal to entertain the plea. The company had also sought a refund of entry tax collected by the State of Odisha. A bench of Justices Aravind Kumar and Prasanna B. Varale said there was no reason to interfere with the High Court's order. “We do not find any infirmity in the impugned order,” the court said. Tata...

Delhi High Court Says Impermissible Foreign Tax Reference Can't Extend Limitation For Search Assessments

The Delhi High Court has ruled that the Income Tax Department cannot extend the time limit for completing search assessments merely by making a reference to a foreign tax authority if the information sought is not permissible under the applicable tax treaty. Dismissing a batch of appeals filed by the Revenue, a Division Bench of Justices Dinesh Mehta and Vinod Kumar upheld the Income Tax Appellate Tribunal's finding that assessment orders passed for Assessment Years 2011–12 to 2017–18 were...

CESTAT Allows Service Tax Refund Claims of Nokia Solutions' Sriperumbudur SEZ Unit

The Chennai Bench of the Customs, Excise and Service Tax Appellate Tribunal (CESTAT) has held that Nokia Solutions and Networks India Pvt. Ltd. is entitled to a refund of service tax paid on services approved for authorised operations in its Special Economic Zone unit. The appeal was decided by Technical Member Vasa Seshagiri Rao, who set aside the rejection of refund claims totalling Rs 46.20 lakh while upholding the denial of Rs 4,220 linked to invoices raised on the company's Gurgaon unit. ...

Imported Parts Alone Don't Justify Higher Sales Tax On Car Audio Systems: Madras High Court

The Madras High Court has ruled, in a dispute over the tax treatment of Kenwood-branded car audio systems, that the use of imported components does not by itself make the finished product an imported good, holding that “the parts do not, by themselves, constitute a complete car audio system”. A bench of Justices Anita Sumanth and Mummineni Sudheer Kumar was deciding whether Nippon Audiotronix's car audio systems were taxable at 12.5 percent as domestic goods or at 20 percent as imported...

After Supreme Court Dismisses SLP, Delhi High Court Expresses Dissatisfaction Over Duty Drawbacks Withheld By Customs

The Delhi High Court has expressed dissatisfaction over the Customs Department's failure to implement its earlier judgment directing the release of duty drawback amounts to the petitioners, despite the Supreme Court having dismissed the Department's special leave petition (SLP).A Division Bench of Justices Prathiba M. Singh and Shail Jain was hearing a batch of writ petitions seeking implementation of the Court's judgment dated February 13, 2025. The earlier judgment had quashed CBIC...

Uploading Show Cause Notice on 'Additional Notices' Tab Ineffective, Delhi High Court Reiterates

The Delhi High Court, on 21 January 2026, remanded a matter back to the Proper Officer, noting that uploading a show cause notice under the 'Additional Notices' tab was not a valid service. A Division Bench comprising Justice Nitin Wasudeo Sambre and Justice Ajay Digpaul set aside the demand order, allowing the petitioner to file a reply to the show cause notice and avail a personal hearing. The Bench noted: “we are of the view that the petitioner has made out a case for remand for the...

Marine Feed Mixed With Vegetable Protein Attracts Higher Customs Duty: CESTAT Chennai

On 22 January, the Chennai Bench of the Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) held that imports of marine feed mixed with vegetable protein attract higher customs duty as they are classifiable as formulated animal feed and not as simple fish or mollusc meal. A Bench comprising Judicial Member P. Dinesha and Technical Member Vasa Seshagiri Rao upheld the reclassification of imported squid-based feed products under Customs Tariff Heading (CTH) 2309 as preparations for...

Raw Aluminium Cannot Be Reclassified As 'Motor Vehicle Parts' Based On End Use Alone: CESTAT Delhi

The Delhi Bench of the Customs, Excise & Service Tax Appellate Tribunal (CESTAT) recently set aside the re-classification of raw aluminium articles imported from Korea and Thailand as auto-parts solely on the basis of end use. On 21 January 2026, a Bench of Justice Dilip Gupta and Technical Member Hemambika R. Priya rejected the Department's attempt to classify imported aluminium tubes, pipes, and profiles as 'parts of motor vehicles'. The Tribunal held that merely because the imported...

Dormant Partner Cannot Face Criminal Liability Without Proof Of Control Over Firm: Madras High Court

The Madras High Court has held that a dormant partner cannot be fastened with criminal liability in the absence of specific allegations showing that she was in charge of or responsible for the conduct of the firm's business. A Bench of Justice Sunder Mohan was considering criminal revision petitions filed by a firm, its managing partner, and another partner, challenging the trial court's order that had refused to discharge them from criminal proceedings initiated under the Prohibition of Benami...

Johnson Lifts Secures ₹1.24 Crore Relief As CESTAT Chennai Upholds Elevator Parts Classification

The Chennai Bench of the Customs, Excise and Service Tax Appellate Tribunal (CESTAT) has held that lift and elevator parts imported by Johnson Lifts Pvt. Ltd. were correctly classifiable as “parts suitable for use solely or principally with lifts and escalators” under Customs Tariff Heading (CTH) 8431, which attracts a lower rate of customs duty. A Bench comprising Judicial Member Ajayan T.V. and Technical Member Ajit Kumar set aside the department's differential customs duty demand exceeding...