Appellate Authority Cannot Enhance GST Liability Without Hearing Taxpayer: Calcutta High Court

The Calcutta High Court on 14 January reiterated that a GST appellate authority cannot enhance taxable turnover or impose a higher rate of tax on grounds that were never part of the original adjudication, without giving the taxpayer an opportunity to be heard. A Bench of Justice Om Narayan Rai set aside an appellate order which enhanced the petitioner's taxable turnover by adding zero-rated supplies of Rs. 27 lakh and imposed GST at 18%, holding that such enhancement at the appellate stage...

Direct Tax Weekly Round-Up: January 19 - January 25, 2026

SUPREME COURTSupreme Court Quashes Gujarat HC Order To Modify Income Tax Software To Prevent TDS-Default Demands Against DeducteeCITATION : 2026 LLBiz SC 16 Case Number : CIVIL APPEAL NO.197 OF 2026 Case Title : Income Tax Assessing Officer, Baroda & Ors. v. Shobhan Shantilal DoshiThe Supreme Court on January 12, 2026, set aside directions issued by the Gujarat High Court requiring the Central Board of Direct Taxes (CBDT) to modify the income-tax department's software. The court, however,...

Branding Structures Installed At Indian Oil Fuel Stations Not Liable To Excise Duty: CESTAT

The Chandigarh Bench of the Customs, Excise and Service Tax Appellate Tribunal (CESTAT) has recently held that branding and signage structures installed at Indian Oil Corporation Ltd. fuel stations are not subject to central excise duty. These structures are known as Retail Visual Identity or RVI elements. They include monoliths, logos, directional signs and facility signs. The tribunal said the structures come into existence only at the site. Once installed, they become permanent. They...

Penal Interest On Delayed Loan EMIs Not Liable To Service Tax: CESTAT Chennai

The Chennai Bench of the Customs, Excise and Service Tax Appellate Tribunal (CESTAT) has held that penal interest charged by banks on delayed or defaulted EMIs cannot be subjected to service tax under the Finance Act, 1994. The tribunal said such charges are not linked to any service offered by banks but flow automatically from a borrower's failure to repay on time. “Penal interest is not a charge levied for any independent activity undertaken by the banks but is a contractual consequence of...

Indirect Tax Weekly Round-Up: January 19 - January 25, 2026

SUPREME COURTBooking Speakers For Events Is Not Event Management, No Service Tax Under That Head: Supreme CourtCase Title: HT Media Limited v. Principal Commissioner, Delhi South Goods and Services Tax Citation: 2026 LLBiz SC 14 Case Number: CIVIL APPEAL NOS. 23525 - 23526 OF 2017The Supreme Court has ruled that merely booking speakers through agents at an event does not amount to 'event management' and therefore cannot be subjected to service tax under that category The Court held that fees...

Service Tax Paid by Mistake Not Eligible For Suo Motu Adjustment: CESTAT Chennai In TVS Motor Case

The Chennai Bench of the Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has ruled against TVS Motor Company Ltd., holding that service tax paid under a mistaken belief of law cannot be adjusted suo motu against future service tax liability in the manner adopted by it. The ruling was delivered by Judicial Member Ajayan T.V., dismissing the appeal filed by TVS Motor against an order confirming a service tax demand of Rs 41.97 lakh along with applicable interest. The tribunal held...

Tax Authorities Cannot Exceed Scope of Show Cause Notice: Calcutta High Court

The Calcutta High Court emphasised that a GST adjudicating authority cannot deny tax exemption on grounds that were never raised in the show cause notice. A Bench of Justice Om Narayan Rai set aside an adjudication order passed against M/s Duakem Pharma Pvt. Ltd., observing that the proper officer exceeded the scope of the show cause notice by deciding an issue that was never put to the assessee for explanation. The Court noted: "The question as to whether the products/items dealt in by the...

Local Iron Ore Transport Not Taxable As Cargo Handling Service: CESTAT Kolkata

On 9 January, the Kolkata Bench of the Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) reiterated that that service tax cannot be levied on local transportation of iron ore by classifying it as a “Cargo Handling Service” when the activity is essentially one of transportation. A Bench comprising Judicial Member Ashok Jindal and Technical Member K. Anpazhakan allowed the appeal filed by M/s Mata Dadhimati Transport and set aside the service tax demand and the equivalent penalty...

GSTAT Delhi Says Pan Realtors Not Liable For Profiteering On Flat Sales After Occupancy Certificate

The Delhi Bench of the Goods and Services Tax Appellate Tribunal (GSTAT) has held that, in this case, no issue of profiteering arose in respect of residential units sold after the issuance of an occupancy certificate in Pan Realtors Private Limited's Noida project while closing a buyer's complaint relating to alleged input tax credit benefits under GST.The tribunal, however, closed the complaint after recording the developer's undertaking to refund the computed profiteered amount of over Rs 40...

GSTN Issues Advisory On RSP-Based Valuation For Tobacco Products

Ahead of the rollout of the Retail Sale Price (RSP)–based valuation mechanism from 1 February 2026, the Goods and Services Tax Network (GSTN) has issued an advisory for taxpayers.The advisory provides guidance on reporting taxable value and tax liability under the RSP-based valuation in e-invoices, e-way bills, GSTR-1, GSTR-1A, and the Invoice Furnishing Facility (IFF).As part of the RSP-based system, GST on notified tobacco products has been computed at 40% and the taxable value will now be...

Developer Not Liable For Profiteering When ITC Benefits Are Fully Passed to Buyers: GSTAT Delhi

On 20 January, the Delhi Bench of the Goods and Services Tax Appellate Tribunal (GSTAT) closed anti-profiteering proceedings against Arkade Developers, holding that no contravention of Section 171 arises when Input Tax Credit (ITC) benefits are fully passed on to homebuyers. The Tribunal noted that the developer had not only fully passed on Input Tax Credit (ITC) benefits to homebuyers but also slightly exceeded the statutory requirement A Bench of Technical Member Anil Gupta took note of the...

Rectification Of GST Returns Permissible Where There Is No Revenue Loss: Gujarat High Court

Earlier this month, the Gujarat High Court held that inadvertent errors in GST returns can be rectified, provided there is no loss of revenue, and directed the authorities to facilitate amendment of GSTR-01 and GSTR-3B for the initial years of GST rollout. A Division Bench comprising Justice A.S. Supehia and Justice Pranav Trivedi allowed the writ petition filed by an authorized dealer of TATA Motors, permitting rectification of monthly returns electronically or manually. The Bench referred to...