Tax
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. ...
MS Frame Parts, Tanks Built To Customer Drawings Not Articles of Iron & Steel; CESTAT Ahmedabad Sets Aside Excise Duty Demand
The Ahmedabad Bench of the Customs, Excise and Service Tax Appellate Tribunal (CESTAT) has held that MS frame parts, gland plates and MS tanks manufactured as per buyer-specific drawings for use in transformers cannot be treated as general articles of iron and steel. The Tribunal set aside the demand for differential excise duty of Rs.3.69 lakhs raised against Gayatri Engineering, along with interest and penalty.A coram of Judicial Member Ajaya Krishna Vishvesha and Technical Member...
GST Appellate Tribunal Can Grant Interim Relief, Including Stay On Recovery: Bombay High Court
The Bombay High Court has recently held that the GST Appellate Tribunal possesses inherent and incidental powers to grant interim relief. This includes protection against recovery pending disposal of appeals. The Court said that any interpretation to the contrary would render the appellate remedy “illusory” and defeat legislative intent. A Division Bench of Justices G.S. Kulkarni and Aarti Sathe was hearing a writ petition filed by The Hongkong and Shanghai Banking Corporation Ltd. The bank...
ITAT Delhi Remands Dispute Over ₹32.13 Lakh Addition Based On Seized Excel Sheet
The Delhi Bench of the Income Tax Appellate Tribunal (ITAT) has restored to the Assessing Officer a dispute in relation to the addition of Rs 32.13 lakh made against a Greater Noida taxpayer in connection with the purchase of a commercial unit. The tribunal directed that all material relied upon must be furnished to the taxpayer and cross-examination allowed if any statements are used to sustain the addition. Judicial Member C.N. Prasad noted that the addition arose from an Excel sheet seized...
Is Cane Development Council A 'Local Authority' Or An 'AOP'? Delhi ITAT Remands Nanauta Parishad's Case For Fresh Examination
The Delhi Bench of the Income Tax Appellate Tribunal (ITAT) has remanded to the Assessing Officer the case of Ganna Vikas Parishad, Nanauta, holding that the authorities below had not examined the constitution and activities of the taxpayer while sustaining an addition of Rs 32,91,119 and denying its claim of exemption. Judicial Member C.N. Prasad observed that although he “could not find fault with the reasoning of the Ld. CIT(A) in sustaining the addition,” the authorities had failed to...
Delhi High Court Quashes 2005 Order Denying Additional Tax Refund Interest To Mitsui Engineering, Cites Sandvik Asia
The Delhi High Court has allowed the writ petition filed by a Japan-based maritime engineering and logistics company, seeking additional interest on a long-pending income tax refund, in light of the Supreme Court's ruling in Sandvik Asia Ltd. v. Commissioner of Income Tax.A Division Bench of Justices Dinesh Mehta and Vinod Kumar set aside a 2005 order passed by the Director of Income Tax (International Taxation), which had rejected the petitioner's application under Section 154 of the Income Tax...
CESTAT Quashes Rs 3.47 Crore Duty Demand On Myntra Jabong, Says No Wilful Suppression
The Delhi Bench of Customs, Excise and Service Tax Appellate Tribunal (CESTAT) on Friday set aside a Rs 3.47 crore customs duty demand against Myntra Jabong India Pvt Ltd, holding that the extended limitation period under Section 28(4) of the Customs Act could not be invoked in a classification dispute.Allowing the appeal, The Tribunal noted that the company had deposited the entire differential duty along with interest before issuance of the show cause notice and that its failure to mention the...
CESTAT Delhi Quashes ₹1.81 Crore Service Tax Demand on CII For Overseas Exhibitions
The New Delhi Bench of Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has held that fees collected by the Confederation of Indian Industry (CII) from its members for facilitating participation in overseas business exhibitions are not liable to service tax under the category of “Business Exhibition Service”.The bench consists of Judicial Member Binu Tamta and Technical Member Hemambika R. Priya, was hearing an appeal filed by Confederation of Indian Industry (appellant) against...
Gujarat High Court Quashes Reassessment On Income From Property Sale After Fraudulent Deeds Cancelled
The Gujarat High Court has recently quashed reassessment proceedings initiated under Section 148A of the Income Tax Act agaisnt an individual taxpayer after noting that the Assessing Officer failed to consider that two sale deeds had been cancelled on account of fraud and that the sale consideration had been reversed. Section 148A governs the procedure to be followed before reopening an assessment. A bench of Justice A.S. Supehia and Justice Pranav Trivedi recorded that the sale deeds dated...
Ready Rotis Classifiable as Bread, Not Ready-To-Eat Food; CESTAT Grants Nil Excise Duty
The New Delhi Bench of the Customs, Excise and Service Tax Appellate Tribunal (CESTAT) has held that “Ready Roti/Halka Fulka” manufactured by Ready Roti India Pvt. Ltd. is classifiable as bread and not as packaged or instant food, and is therefore chargeable to a nil rate of excise duty. The bench of Judicial Member Ajay Sharma and Technical Member P.V. Subba Rao was dealing with an appeal against an order upholding excise duty demand, interest and penalty on the allegation that the appellant...
Bought-Out Optional Plywood Tops Value Not Includible In Excise Duty on Folding Cots: CESTAT Kolkata
In partial relief to Shree Durga Industry, the Kolkata Bench of the Customs, Excise and Service Tax Appellate Tribunal (CESTAT) has held that while fabrication of steel folding cots amounts to “manufacture” under the Central Excise Act, the value of optional plywood tops procured from the open market cannot be added to the assessable value for levy of excise duty. The bench of Judicial Member R. Muralidhar and Technical Member K. Anpazhakan was hearing appeals filed by Shree Durga Industry and...
Income Tax Act | Ten-Year Block Under Section 153A Includes Search Year: Gujarat High Court
The Gujarat High Court on 23 February held that tax authorities must include the search year when computing the ten-year block for reopening assessments under Section 153A of the Income Tax Act, 1961. A Bench comprising Justice A.S. Supehia and Justice Pranav Trivedi quashed a notice issued in 2025 for Assessment Year 2014-2015, as it fell outside the ten-year period, with the tenth year being Assessment Year 2015-16. The Court observed that to reopen proceedings under Section 153A, “the date...