Tax
CGST Act | Gauhati High Court Reads Down S.16(2)(aa); Says ITC Can't Be Denied To Bona Fide Buyer For Supplier's Default
The Gauhati High Court has held that Input Tax Credit (ITC) cannot be denied to a bona fide purchaser merely because the supplier failed to upload invoice details in Form GSTR-1, and has read down Section 16(2)(aa) of the CGST Act and AGST Act to protect genuine taxpayers. A Division Bench comprising Chief Justice Ashutosh Kumar and Justice Arun Dev Choudhury disposed of a writ petition filed by the assessee, M/s McLeod Russel India Limited, holding that while the provision itself is...
Income Tax Return Must Be Accepted For Assessing Victim's Income In Motor Accident Claims: Calcutta High Court Grants ₹39 Lakh Compensation
The Calcutta High Court held that when a victim's income tax return is filed, it is a reliable and authentic basis for assessing income in motor accident claims. The bench granted compensation of Rs. 39 Lakh to the claimants (mother and father) of the victim. Justice Biswaroop Chowdhury stated that once an Income Tax Return is accepted by the Income Tax Authority, it becomes an authentic document with regard to the income of the victim. When Income Tax Return is not filed it...
CST Act | After 20 Yrs, Gujarat High Court Permits PSU To Claim Branch Transfer Exemption Denied For Non-Production Of Original 'Form-F'
After almost 20 year litigation, the Gujarat High Court permitted a public sector energy enterprise to claim branch transfer exemption of over Rs 6 crore under the Central Sales Tax Act, which was denied earlier on non-production of the original Form-F. Form F is a document used for branch transfer of goods in the course of inter-state trade, which permits claiming of exemption from Central Sales Tax (CST) on such transactions. A division bench of Justice AS Supehia and Justice...
PVC Raincoats Classified As Plastic Articles And Not Textile Apparel, Attract 18% GST: Gujarat AAR
The Gujarat Authority for Advance Ruling (AAR) has ruled that PVC raincoats are to be treated as plastic articles and not textile apparel, and therefore attract 18% GST. The ruling came on an application filed by a Gujarat-based manufacturer of PVC and plastic raincoats. The applicant had sought clarity on whether PVC raincoats should be taxed at 5% as apparel or at 18% as articles of plastic. The applicant is engaged in the business of manufacture, resale, deal, purchase, import,...
Customs | Direct Reliance On NIDB Data For Re-Assessment Of Import Value Not Permissible: CESTAT Kolkata
The Kolkata Bench of Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has stated that Customs cannot directly rely on NIDB (National Import Database) data to enhance import value. R. Muralidhar (Judicial Member) and K. Anpazhakan (Technical Member) noted that the adjudicating authority straightaway has re-determined the value on the basis of NIDB data retrieved, indicating the Bill of Entry and the description of the goods, which is legally not maintainable. In the...
Separate Proceedings Under Customs Act Not Permissible Once CBLR Proceedings Are Initiated: CESTAT Kolkata
The Kolkata Bench of Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has stated that separate proceedings under the Customs Act are not permissible once CBLR (Customs Brokers Licensing Regulations, 2018) proceedings are initiated. R. Muralidhar (Judicial Member) and K. Anpazhakan (Technical Member) opined that once separate proceedings have been initiated against the assessee under CBLR, 2018, for violation of the provisions of the said Regulations, no separate penalty is...
"₹41664 Crores ITC Fraud Via Non-Existing Entities, Fake Invoices": Centre Flags Rising GST Evasion In Rajya Sabha
The Centre has acknowledged a sharp rise in GST evasion and Input Tax Credit (ITC) frauds, where bogus or dummy entities were found to be used as fronts for fake invoicing. In a tabulated scale of Fake Invoicing Cases, the Centre has put forth number of cases registered and corresponding detection amount by Central tax formations during 2022-23, 2023-24 with the Financial Years 2024-25 and 2025-25 (upto October 2025) witnessing 15283 and 24109 cases. The statistics indicate that ₹7.5...
Pan Masala, Tobacco Profits Invested In Mutual Funds Not 'Trading In Securities', Service Tax Not Applicable: CESTAT Delhi
The Delhi Bench, Customs, Excise and Service Tax Appellate Tribunal (CESTAT) has set aside service tax demand on the activity of investing in Mutual Funds as such activities undertaken by Godfrey Phillips India Limited (Appellant) would be different from 'trading in securities' and cannot be considered as an exempted service in terms of section 66D(e) of the Finance Act. In an order dated December 05, 2025 the Bench comprising Justice Dilip Gupta (President) and Shri. P..V. Subba Rao...
Supplying AI-Powered IT Infra Services, Content To USA Corp By Indian Counterpart Is 'Export' Not 'Intermediary' : Gujarat High Court
The Gujarat High Court has held that rendering software consultancy services including editorial and content creation activities as well as customer support services to Infodesk Inc., Parent Company in the United States is 'export of service' and not 'intermediary service'. In a judgment dated November 27, 2025 the Bench comprising Justice A.S. Supehia and Justice Pranav Trivedi quashed the refund rejection order as in passing the same lower authorities erred in holding that Petitioner...
Subway Franchisee Hiked Base Prices To Neutralise ITC Loss, Amounted To Profiteering; 18% Interest Can't Apply Retrospectively: GSTAT
The Goods and Services Appellate Tribunal (GSTAT), Anti Profiteering Division at Delhi has held that Franchisee of Subway Systems profiteered in respect of restaurant services by increasing base price of the products to offset loss of Input Tax Credit (ITC). In an order dated December 02, 2025 the Single Bench of Justice (Retd.) Dr. Sanjaya Kumar Mishra (President) has accepted the second report submitted by the Directorate General of Anti-Profiteering (DGAP) in respect of profiteering...
LiveLawBiz: Business Law Daily Round-Up: December 09, 2025
TAX Service Tax | No Reverse Charge Liability On Software Maintenance Consumed Abroad; Hotel Expenses Not 'Sponsorship Services': CESTAT Bangalore Foreign Markings On Gold Biscuits Not Enough To Prove Smuggling: CESTAT Kolkata Sets Aside Confiscation Staff Reimbursement, Training, And Hospital Management In Joint Venture Not Taxable Under Service Tax: CESTAT Chennai Income Tax Act | Long Term Capital Gain On Shares Cannot Be Branded Bogus Without Evidence: ITAT Mumbai Revenue-Sharing...
Service Tax | No Reverse Charge Liability On Software Maintenance Consumed Abroad; Hotel Expenses Not 'Sponsorship Services': CESTAT Bangalore
The Customs, Excise & Service Tax Appellate Tribunal (CESTAT), Bangalore has held that no Service Tax liability can be applied under the reverse charge mechanism on an Indian branch where the software maintenance services were contracted, received and consumed entirely outside India. The Tribunal further held that payments made towards hotel expenses of guests cannot be treated as taxable “Sponsorship Services”. A Division Bench comprising P.A. Augustian (Judicial Member) and R. ...