Supreme Court Dismisses Customs' Appeal Seeking Rs 93 Lakh Duty On Lulu Malls' Imported Trampolines

The Supreme Court recently (October 31) dismissed an appeal filed by the Customs Department challenging the classification and valuation of imported amusement equipment, including trampolines, by Lulu International Shopping Malls Pvt Ltd.A bench of Justices Pankaj Mittal and Prasanna B Varale held that there was no error in the classification of the trampolines and other equipment under the category of gymnastics equipment. The bench observed, “we do not find any infirmity in the...

Customs | AIFTA Exemption Cannot Be Denied Without Verifying Certificate Of Origin: CESTAT

The Mumbai Bench of Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has stated that the AIFTA (ASEAN-India Free Trade Agreement) exemption cannot be denied without verifying the certificate of origin. Ajay Sharma (Judicial Member) and C J Mathew (Technical Member) noted that there is no allegation, let alone ascertainment, that the 'certificate of origin' corresponding to each of the impugned consignments is not authentic or not issued by the competent authority. There is...

Approval From Higher Authority Mandatory For Issuing Notice U/S 148 Income Tax Act After Expiry Of 3-Year Limitation: Madras High Court

The Madras High Court has held that under the new regime, approval from a higher authority, such as the Principal Chief Commissioner of Income Tax or the Principal Director General, is mandatory to issue a notice under Section 148 of the Income Tax Act after the expiry of a three-year limitation period. Justice C. Saravanan stated that …….three years from the end of the Assessment Year 2016-2017, 2017-2018 and 2018-2019, to issue Section 148 Notice under the new regime had already...

Tax Monthly Digest: October 2025

SUPREME COURTSupreme Court Issues Notice To IndiGo On Plea Of Customs Dept & GST Council Against Ruling On IGST Exemption For Imported PartsCase : Principal Commissioner of Customs Acc (Import) and others v. Interglobe Aviation LtdCase no.: Diary No. 49140-2025The Supreme Court on Monday sought a response from IndiGo's parent company, InterGlobe Aviation, on a petition filed by the Customs Department challenging a Delhi High Court ruling that exempted the airline from paying Integrated Goods...

Customs | FOB Value Determined Between Parties Protected By Privity Of Contract; Cannot Be Modified By Stranger: CESTAT

The New Delhi Bench of Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has stated that the FOB (Free On Board) value determined between the parties is protected by privity of contract, and it cannot be modified by a stranger to the contract. Justice Dilip Gupta (President) and Hemambika R. Priya (Technical Member) opined that FOB value is the product of negotiations and deliberations between the parties to the contract, which value cannot be modified by any stranger to...

Income Tax | Verification By Dept Is Mandatory Before Treating Charitable Donations As Involuntary: ITAT

The Chennai Bench of the Income Tax Appellate Tribunal (ITAT) has held that an independent enquiry or verification by the department is mandatory before treating charitable donations as involuntary. George George K (Vice President) stated that the First Appellate Authority (FAA) treated the donations as not voluntary donation and sustained the addition made by the AO. The FAA has not carried out any independent enquiry or verification to ascertain whether donations are voluntary or...

CENVAT Credit Rules | Variable 'P' Under Rule 6(3A) Refers Only To Common Credit, Not Total Credit, Prior To 01.04.2016: CESTAT

The Chennai Bench of Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has stated that variable 'P' under Rule 6(3A) of CENVAT Credit Rules, 2004, refers only to common credit, not total credit, prior to 01.04.2016. P. Dinesha (Judicial Member) and Vasa Seshagiri Rao (Technical Member) were addressing the issue of whether, for the tax periods April 2012 to March 2014, the variable “P” in Rule 6(3A) of the CENVAT Credit Rules, 2004 would denote total credit or common credit....

Income Tax | Assessee Should Not Be Penalised For Delay In Filing Return Caused By CA's Belated Advice: Bombay High Court

The Bombay High Court has held that the assessee should not be penalised for the delay in filing the return caused by the chartered accountant's belated advice. The bench noted that the delay is not due to any negligence on the part of the assessee, but to inadequate advice by the Chartered Accountant, a fact admitted by him in his affidavit. Justices B.P. Colabawalla and Amit S. Jamsandekar opined that the Petitioner ought not to be put to a considerable disadvantage as a result...

SSI Exemption Can't Be Denied Merely For Using Common/Assigned Brand Names: CESTAT

The Chennai Bench of Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has stated that SSI (Small Scale Industry) Exemption can't be denied merely for using common/assigned brand names. The Tribunal opined that once a brand name is legally assigned or transferred, the SSI unit becomes the “owner” of the brand. Therefore, it is no longer the “brand name of another person,” and the restriction in Condition No. 4 of Notification No. 8/2003-CE does not apply. The Tribunal...

Customs | Royalty For Technical Know-How Not 'Condition Of Sale' Even If Included In Value Of Imported Goods: CESTAT

The New Delhi Bench of Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has stated that royalty paid for technical know-how is not a 'condition of sale' merely because it is included in the value of imported goods. Justice Dilip Gupta (President) and Hemembika R. Priya (Technical Member) opined that both the Technical Agreements relate to transfer of technical know-how, amongst others, in the form of design sheets detailing manufacturing methods and specifications of raw...

CESTAT Quashes Excise Duty Demand Against Wipro Over Tamil Nadu Govt's Free Laptop Scheme

The Customs, Excise & Service Tax Appellate Tribunal (CESTAT) in Chennai on Wednesday quashed the excise department's demand for additional duty from Wipro Ltd., ruling that the company's supply of laptops to the Tamil Nadu government for free distribution to students cannot be treated as a commercial sale and therefore cannot be taxed at retail price. A two-member bench comprising Judicial Member P Dinesha and Technical Member M Ajit Kumar said the case was covered by an earlier...

GST Levy On Group Health Insurance Policies Challenged; Kerala High Court Grants Interim Relief To Union Bank Pensioners

The Kerala High Court has granted interim relief to retired employees of the Union Bank by allowing them to renew their group health insurance policies without paying the 18% Goods and Services Tax (GST) on the premium.The Court passed the interim order in a writ petition filed by Vinod Mukundan and others, including the All India Union Bank Pensioners & Retirees Federation, challenging the levy of 18% GST on group health insurance policies. While the GST levy on individual health...