Tax
LiveLawBiz: Business Law Daily Round-Up: December 08, 2025
TAX Revenue Cannot Adjudicate Decade-Old SCNs On NPV Sales Tax Retention: Bombay High Court KeralaHigh Court Upholds Over ₹15 Lakh Motor Vehicle Tax Demand OnPuducherry-Registered Car Found Used In Kerala Customs| Bills Of Entry Cannot Be Reassessed After Clearance Merely To Claim Refund Based On Later SC Judgment: CESTAT Mumbai Sales Tax Discharged Through NPV Under State Incentive Scheme Cannot Be Added Back To Excise Transaction Value: CESTAT Mumbai ED Has Seized ₹4,189.89 Crore In...
Revenue Cannot Adjudicate Decade-Old SCNs On NPV Sales Tax Retention: Bombay High Court
The Bombay High Court at Goa has set aside two show cause notices issued to a manufacturer seeking to levy central excise duty on the differential amount of sales tax/VAT retained by it under a Net Present Value (NPV) incentive scheme, holding that the Revenue cannot be permitted to adjudicate stale notices after an unexplained and inordinate delay. A Division Bench of Justice Bharati Dangre and Justice Ashish S. Chavan allowed the writ petitions filed by the assessee, quashing show...
Kerala High Court Upholds Over ₹15 Lakh Motor Vehicle Tax Demand On Puducherry-Registered Car Found Used In Kerala
The Kerala High Court upheld the motor vehicle tax demand on a car registered in Puducherry after finding no evidence that it was actually used there. Justices A. Muhamed Mustaque and Harisankar V. Menon noted that the NIL returns do not reflect any business being carried out by the assessee from Puducherry. The bench opined that the onus shifts to the assessee to show that the vehicle was not being used in Kerala to attract tax. In the case at hand, the assessee/appellant...
Customs | Bills Of Entry Cannot Be Reassessed After Clearance Merely To Claim Refund Based On Later SC Judgment: CESTAT Mumbai
The Customs, Excise & Service Tax Appellate Tribunal (CESTAT), Mumbai has held that reassessment of Bills of Entry cannot be sought at a belated stage after clearance of goods merely to claim refund on the basis of a favourable Supreme Court judgment delivered in another assessee's case. A Division Bench comprising Dr. Suvendu Kumar Pati (Judicial Member) and M.M. Parthiban (Technical Member) dismissed the appeal filed by the assessee, M/s Minerva Enterprises and upheld the order of...
Tax Weekly Round-Up: December 01 - December 07, 2025
SUPREME COURTCentral Excise Exemption For Cotton Fabrics Not Available If Any Interlinked Process Uses Power : Supreme CourtCause Title: COMMISSIONER OF CUSTOMS, CENTRAL EXCISE & SERVICE TAX, RAJKOT VERSUS NARSIBHAI KARAMSIBHAI GAJERA & ORS.The Supreme Court has held that manufacturers cannot claim central excise duty exemption for processed cotton fabrics if power is used at any stage of the manufacturing chain, even when the work is carried out through separate units. The Court...
Sales Tax Discharged Through NPV Under State Incentive Scheme Cannot Be Added Back To Excise Transaction Value: CESTAT Mumbai
The Customs, Excise and Service Tax Appellate Tribunal (CESTAT), Mumbai has held that sales tax deferred under a State incentive scheme and subsequently discharged by payment of its Net Present Value (NPV) cannot be treated as “sales tax not paid” so as to be added back to the transaction value for levy of central excise duty. A Division Bench comprising C.J. Mathew (Technical Member) and Ajay Sharma (Judicial Member) allowed the appeal filed by the assessee, M/s Grindwell Norton Ltd....
ED Has Seized ₹4,189.89 Crore In Crypto-Linked Black Money Under PMLA; 44,057 Notices Issued For Unreported Trades: Centre Tells Lok Sabha
The Centre, in response to a question posed in the Lok Sabha, relating to black money routed through cryptocurrency, has informed that the Enforcement Directorate has attached, seized, and frozen proceeds of crime worth Rs. 4189.89 crore under the Prevention of Money Laundering (PMLA), 2002. On Monday, December 08, 2025, in relation to Regulations governing cryptocurrency in the country, the Centre outlined statistics of tax evasion cases linked to cryptocurrency and Virtual Digital...
S.62 CGST Act | Filing Pending Returns Automatically Withdraws Best-Judgment Assessment: Andhra Pradesh High Court
The Andhra Pradesh High Court has held that a best judgment assessment passed under Section 62 of the Central Goods and Services Tax Act, 2017 stands deemed withdrawn once the registered dealer files the pending returns along with payment of tax and applicable late fee, even if such returns are filed beyond the initially prescribed period. A Division Bench comprising Justice R. Raghunandan Rao and Justice T.C.D. Sekhar was hearing a batch of writ petitions filed by the assessee,...
Construction Of School & College Buildings Between 2008-2012 Not Taxable As Commercial Or Industrial Construction Service: CESTAT Chennai
The Chennai Bench of Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has stated that the construction of school and college buildings during 2008-2012 is not taxable as commercial or industrial construction service. P. Dinesha (Judicial Member) and Vasa Seshagiri Rao (Technical Member) examined whether the construction of buildings for educational institutions, such as schools and colleges, during 2008–2012, is taxable under Commercial or Industrial Construction Service...
Service Tax Cannot Be Levied On Rent-A-Cab Services Provided To SEZ Units: CESTAT Chennai
The Chennai Bench of Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has stated that the service tax cannot be levied on rent-a-cab services provided to Special Economic Zone (SEZ) units as per the overriding effect under Section 51 of the SEZ Act (The Special Economic Zones Act, 2005). Ajayan T.V. (Judicial Member) and M. Ajit Kumar (Technical Member) observed that the SEZ Act is a self-contained Act which provides exemptions on taxes, duties, cess, drawbacks and...
Delhi High Court Dismisses Revenue's Appeal In Avery Dennison Transfer Pricing Case, Upholds ITAT Order On Intra-Group Services
The Delhi High Court has dismissed the Income Tax Department's appeal against M/s Avery Dennison (India) Pvt. Ltd., reaffirming that no substantial question of law arises where the Transfer Pricing Officer's (TPO) conclusions are unsupported by cogent evidence and the issue stands settled in favour of the assessee in earlier years. A Division Bench comprising Justice V. Kameswar Rao and Justice Mini Pushkarna was hearing an appeal filed by the Revenue for AY. 2012-2013, stated that that...
Meter Reading, Billing & Disconnection Services Are Ancillary To Electricity Distribution; Exempt From Service Tax: CESTAT Allahabad
The Allahabad Bench of Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has held that services, such as meter reading, billing, and connection/disconnection of electricity, are ancillary services of transmission and distribution of electricity and service tax is not payable for these services. P.K. Choudhary (Judicial Member) examined whether the services such as meter reading, collection of revenue, connection and disconnection of electricity supply would be covered under...