Voluntary GST Cancellation Not Grounds To Freeze Company's Bank Account: Rajasthan High Court

The Rajasthan High Court has directed the Bank of Baroda to de-freeze the account of the petitioner-company, allowing it to use it freely till finally deciding the company's representation, observing that the bank could not freeze the account merely because the company's GST registration was voluntarily cancelled.The bench of Justice Nupur Bhati was hearing a petition filed by a company trading in goods which were exempted from the Goods and Services Tax, whose application for...

Customs | Drawback Cannot Be Denied On Grounds Of Alleged Forgery By Foreign Buyer Once Goods Are Exported: CESTAT

The New Delhi Bench of the Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has held that drawback cannot be denied on the grounds of alleged forgery by a foreign buyer after goods are exported under the Customs & Central Excise Duties Drawback Rules 1995. The single bench consists of (Judicial Member) opined that any forgery, if revealed during a further investigation being committed by the Russian company vis-a-vis the Landing certificate in the light of Drawback...

Payment Of Tax Cannot Legalise Unlicensed Activity, GST Registration Doesn't Confer Right To Conduct Business: J&K&L High Court

The High Court of Jammu & Kashmir and Ladakh has held that obtaining registration under the Goods and Services Tax Act, 2017, does not amount to authorisation to conduct a trade or business, nor can payment of tax legitimise an otherwise unlicensed commercial activity.The High Court clarified that taxation statutes and regulatory licensing statutes operate in distinct spheres, and compliance with one cannot override mandatory licensing requirements under another.The Court was hearing a batch...

Customs Act | Electronic Evidence From Unsealed CPU Without Certificate U/S 139C Cannot Form Basis Of Assessment: CESTAT

The New Delhi Bench of Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has stated that electronic evidence from an unsealed CPU without any Section 139C certificate under the Customs Act cannot form the basis of assessment. Dr. Rachna Gupta (Judicial Member) and P.V. Subba Rao (Technical Member) opined that the computer/ CPU was not sealed at the time of panchnama and was lying with the investigating agency for 47 days, after which it was first examined and then sealed,...

Tax Weekly Round-Up: October 27 - November 02, 2025

SUPREME COURTAutomobile Dealers Association Moves Supreme Court Over Compensation Cess Lapse After GST 2.0 Reforms, Claims Loss Of Rs.2500 CrCase Title: FEDERATION OF AUTOMOBILE DEALERS ASSOCIATION v. UNION OF INDIADiary No. 60671/2025The Federation of Automobile Dealers Association has moved the Supreme Court seeking relief related to compensation cess input tax credit worth Rs.2500 crores, which stands locked in dealers ledgers as a consequence of recent revision in the Goods and Services Tax...

Kerala High Court Quashes Income Tax Appellate Order Against AMMA, Directs Fresh Consideration

The Kerala High Court has set aside an order passed by the Commissioner of Income tax (Appeals), against the Association of Malayalam Movie Artists (AMMA), holding that the appellate authority failed to comply with the mandatory requirements under the Income Tax Act.Justice Ziyad Rahman A A, observed that the Commissioner of Income Tax (Appeals) erred by rejecting AMMA's appeal solely on the ground of non-appearance, without addressing the merits of the case as mandated under Section 250(6) of...

Income Tax Act | Trust's Legitimate Tax Exemption Cannot Be Denied For Delay In Filing Form 10B: Madras High Court

The Madras High Court held that delay in filing Form 10B required under Section 44AB for the purpose of Section 12A(1)(b) of the Income Tax Act, 1961, is not a ground to deny legitimate exemption tax exemptions. Justice C. Saravanan observed that the assessee was registered as a “Trust” in the year 2017. Effectively, the assessee would have carried on operation as a “Trust” from 01.04.2017 onwards, which would fall under the Assessment Year 2018-2019. The failure is in the year...

Income Tax Act | Supreme Court To Examine If S.12AA Registration Alone Entitles Trusts To 80G Benefits To Donors

The Supreme Court is set to examine whether the registration of a trust under Section 12AA of the Income Tax Act, 1961, which recognizes it as a charitable institution for income tax exemption purposes, is sufficient to entitle its donors to claim tax deduction benefits under Section 80G of the Act. A bench of Justice J.B. Pardiwala and Justice K.V. Viswanathan has issued notice on a petition filed by the Income Tax Department challenging the Chhattisgarh High Court's ruling that once a...

Income Tax Act | Revisional Power U/S 263 Cannot Be Invoked When AO Allows Deduction U/S 32AC After Proper Inquiry: Kerala High Court

The Kerala High Court stated that revisional power under Section 263 of the Income Tax Act cannot be invoked when Assessing Officer (AO) allowed deduction under Section 32AC after proper inquiry. Justices A. Muhamed Mustaque and Harisankar V. Menon opined that merely for the reason that AO extended the deduction claimed after carrying out investigations, the exercise of the power under Section 263 of the Act is not required. At worst, the revisional authority can correct the error, if...

Customs | Confiscation, Penalty & Fine Can't Be Imposed On IGST Demand Arising From Breach Of Pre-Import Condition: CESTAT

The Mumbai Bench of Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has stated that confiscation, penalty & fine cannot be imposed on IGST (Integrated Goods and Services Tax) demand arising from breach of pre-import condition under Customs Act. Ajay Sharma (Judicial Member) and C J Mathew (Technical Member) opined that the IGST demand arose because of the breach of the pre-import condition. Although IGST is payable for such a breach, no confiscation or penalty can be ...

TNGST Act | Purchase Tax Cannot Be Levied on Buyer for Seller's Tax Default: Madras High Court

The Madras High Court on Monday held that purchase tax cannot be levied under Section 7A of the Tamil Nadu General Sales Tax Act, 1959 (TNGST Act) on the purchaser merely because the seller failed to pay tax. The bench, comprising Justices S M Subramaniam and Mohammed Shaffiq, clarified the scope of Section 7A in transactions where the vendor has defaulted on tax payments "Having found that the sale to petitioner is liable to tax in the hands of the petitioner's vendor, levy of purchase tax...

Differential Duty Paid For Provisional Release Not Pre-Deposit; Refund Interest Payable Only At 6% U/S 27A Customs Act: CESTAT

The New Delhi Bench of Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has stated that the differential duty paid for provisional release is not a pre-deposit. Hence, refund interest payable only at 6% U/S 27A Customs Act, not 12% U/S 35FF Central Excise Act. Dr. Rachna Gupta (Judicial Member) opined that all those goods were ordered to be released as per the provisions of the Customs Act, 1962, at the assessee's own request for provisional release of the goods. This ...