Service Taxability Appeals Lie To Supreme Court, Not High Court: Delhi High Court Reiterates

The Delhi High Court has dismissed a service tax appeal filed by the Revenue, holding that questions relating to taxability fall outside the High Court's appellate jurisdiction under Section 35G of the Central Excise Act, and can be examined only by the Supreme Court.A Division Bench of Justices Nitin Wasudeo Sambre and Ajay Digpaul observed, “we have gone through the judgments cited by the counsel for the respondent in the matter of M/S Konark Exim Pvt. Ltd (referred supra). In the said matter,...

Delhi High Court Upholds CESTAT Order Allowing Verification Of Tax Exemption On Services To Foreign Embassies

The Delhi High Court has recently upheld an order passed by the Customs, Excise and Service Tax Appellate Tribunal (CESTAT) permitting verification of certificates for claiming service tax exemption on services rendered to foreign embassies and diplomatic missions.A Division Bench of Justices Nitin Wasudeo Sambre and Ajay Digpaul held that no substantial question of law arose from the CESTAT's decision, which had remanded the matter to the adjudicating authority for the limited purpose of...

Check-Posts Cannot Value or Confiscate Goods in Transit: Andhra Pradesh High Court

The Andhra Pradesh High Court has held that authorities stationed at GST check-posts lack jurisdiction to examine the valuation of goods or to confiscate and levy penalties merely because the goods are in transit. The Bench comprising Justice R. Raghunandan Rao and Justice T.C.D. Sekhar, observed that disputes relating to valuation and tax liability must be examined only by the jurisdictional assessing authority and not by proceedings initiated at the stage of interception under Sections 129 or...

Delhi High Court Calls ITAT's Indefinite Adjournment After Reserving Judgment 'Sheer Wastage Of Time'

The Delhi High Court has reprimanded the Income Tax Appellate Tribunal (ITAT) for adjourning an appeal sine die after the matter had already been heard and reserved for judgment. For context, although Petitioner's appeal before the ITAT had been heard at length and reserved for orders on September 3, 2025, the Tribunal subsequently listed the matter again and, on January 19, 2026, adjourned it sine die. This was done on the ground that a similar issue decided by the Tribunal in another case was...

Indirect Tax Weekly Round-Up: February 23 - March 01, 2026

SUPREME COURTCBIC's 2024 Policy Barring Govt Appeals Below ₹2 Crore Covers Pending Cases, Not Merely Future Filings: Supreme CourtCase Title : COMMISSIONER OF COMMERCIAL TAX . & ORS. VS VIKARAM CEMENT Case Number : Civil Appeal No(s). 710/2012 CITATION : 2026 LLBiz SC 82Holding that the Centre's 2024 litigation policy applies even to pending appeals, the Supreme Court on February 5, 2026 dismissed appeals filed by the Commissioner of Commercial Tax against Vikaram Cement, ruling that the...

Direct Tax Weekly Round-Up: February 23 - March 01, 2026

SUPREME COURTSupreme Court Dismisses Revenue SLP Against Bombay HC Ruling On Tax Assessments Of Merged Reliance EntitiesCase Title : DEPUTY COMMISSIONER OF INCOME TAX 3 VS M/S RELIANCE INDUSTRIES LTD Case Number : Special Leave to Appeal (C) No(s). 7819/2026 CITATION : 2026 LLBiz SC 92The Supreme Court recently declined to entertain the Income Tax Department's Special Leave Petition against a Bombay High Court judgment that had quashed assessment orders passed in the names of Reliance...

Allahabad High Court Grants Oppo Interim Relief In ₹599 Crore GST Case, Issues Notice On Challenge To CGST Section 15(3)(b)

The Allahabad High Court has recently granted interim protection to Oppo Mobile India Private Limited in its challenge to the validity of Section 15(3)(b) of the Central Goods and Services Tax Act, 2017, after an adjudication order confirmed a total tax demand of Rs 599.07 crore along with equivalent penalty and interest under Section 74 of the Act, according to the writ petition. The order in challenge dated December 12, 2025, confirmed demands of Integrated Goods and Services Tax, Central...

CESTAT Sets Aside Rs 24.96 Lakh Service Tax Demand Against Contractor Based Only On TDS Statement

The Kolkata Bench of CESTAT has set aside a service tax demand of Rs 24.96 lakh against a Chakradharpur contractor, holding that his work for the Railways, exempt subcontracted projects, and construction of single residential units did not attract service tax. The bench of Judicial Member Ashok Jindal and Technical Member K. Anpazhakan held that a demand cannot stand if it is based solely on Form 26AS data without corroborative evidence or independent inquiry. Form 26AS is an annual tax...

BSNL VRS Retirees Absorbed From DoT Entitled To Leave Encashment Tax Exemption: Kerala High Court

The Kerala High Court has held that retired BSNL employees who were originally absorbed from the Department of Telecommunications (DoT) are entitled to full income-tax exemption on leave encashment under the Income Tax Act, 1961.The writ petition was filed by the Sanchar Nigam Pensioners' Welfare Association and two retired officers of Bharat Sanchar Nigam Limited, who had opted for the BSNL voluntary Retirement Scheme, 2019.The grievance arose when BSNL deducted tax at source on leave...

No Bar On CENVAT Credit Where Supplementary Invoice Is Not Linked To Suppression: CESTAT Kolkata

The Kolkata Bench of the Customs, Excise and Service Tax Appellate Tribunal (CESTAT) on 13 February, allowed an appeal by Agrasen Sponge Pvt. Ltd., holding that CENVAT credit claimed on the basis of supplementary invoices issued by Mahanadi Coalfields Ltd. (MCL) is admissible where the additional duty arose due to an interpretational dispute and not on account of suppression or fraud. A Bench comprising Judicial Member R. Muralidhar set aside the order of the Commissioner (Appeals),...

No Excise Duty On Dolochar Generated During Sponge Iron Production: CESTAT Kolkata

The Kolkata Bench of Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has held that 'dolochar' generated during the manufacture of sponge iron is an inevitable waste and not a manufactured excisable product. Therefore no central excise duty is payable on its clearance. A Bench comprising Judicial Member Ashok Jindal and Technical Member K. Anpazhakan was hearing an appeal filed by Kaushal Ferro Metals (P) Ltd., challenging the confirmation of excise duty along with interest and...

Service Tax Is Leviable On Repair Services Provided To Kolkata Metro: CESTAT New Delhi

The New Delhi Bench of Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) on 26 February, held that repair and maintenance services rendered to the Kolkata Metro Railway are not eligible for tax exemption under the Mega Exemption Notification. A Bench comprising Judicial Member Dr. Rachna Gupta, focussed on whether such services could be treated as exempt railway-related works and whether the Department was justified in invoking the extended period to confirm the service tax demand. ...