Tax
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...
Second-Hand Digital Multifunction Machines Imported Pre-2012 Not Confiscable: CESTAT Chennai
The Chennai Bench of Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) on 19 February held that second-hand digital multifunction print and copying machines imported before June 2012 were freely importable and not liable to confiscation. A Bench comprising Judicial Member P. Dinesha and Technical Member Vasa Seshagiri Rao were hearing an appeal by Jaya Trading Company. The members examined whether the rejection of the importer's appeal on limitation was legally sustainable and...
Expired E-Way Bill Does Not Justify Harsh Penalty Under GST Law: Gujarat High Court Orders ₹18 Lakh Refund
The Gujarat High Court has ordered refund of Rs. 18,00,140 collected as penalty from Balkrishna Industries Limited, holding that imposition of penalty merely because an e-way bill expired during transit was unsustainable in the facts of the case. A Division Bench of Justice A.S. Supehia and Justice Pranav Trivedi held that “In wake of such undisputed fact, the imposition of harsh penalty under Section 129(3) of the CGST Act was uncalled for and is also beyond the scope of Section 129(1)(a) of...
Rooh Afza Is Fruit Drink, Not Residuary Goods; Supreme Court Applies 4% VAT Under Uttar Pradesh VAT Act
The Supreme Court on Wednesday held that “Sharbat Rooh Afza” manufactured by Hamdard (Wakf) Laboratories is classifiable as a “fruit drink / processed fruit product” under Entry 103 of Schedule II Part A of the Uttar Pradesh Value Added Tax Act, 2008, and not under the residuary entry taxable at 12.5%. A Bench of Justice B.V. Nagarathna and Justice R. Mahadevan allowed the appeals and set aside the Allahabad High Court's judgments dated July 2, 2018 and August 3, 2022, which had upheld taxing...
Pre-Adjudication Amount Paid Under Protest Is Deposit, Not Duty; CESTAT Allahabad Grants 12% Interest From Deposit
The Allahabad Bench of the Customs, Excise and Service Tax Appellate Tribunal (CESTAT) has held that, in the facts of the case, an amount paid under protest during investigation, before any adjudication or confirmed demand, cannot be treated as “duty” but only as a deposit. It ruled that interest on such a refund is payable at 12% per annum from the date of deposit till the date of actual refund. The order was passed by Judicial Member P.K. Choudhary while allowing the appeal filed by T T...
Missing Export Form Not Fatal If Duty-Paid Export Proven: Gujarat High Court Restores Rs 1.29 Crore Excise Rebate
The Gujarat High Court has restored over Rs.1.29 Crore rebate claim of a merchant exporter, holding that the absence of original ARE-1 forms cannot defeat a rebate claim when export and duty payment are otherwise verifiable. ARE-1 stands for Application for Removal of Excisable Goods for Export. It was a statutory export document under the Central Excise Rules, 2002. It recorded details of manufacture, duty payment, and export. Under Rule 18, the original copy was ordinarily required to be...
Bombay High Court Quashes ₹1 Crore Stamp Duty Demand On Romell Real Estate's Slum Redevelopment Agreement
The Bombay High Court on Tuesday set aside a stamp duty demand of over Rs. 1 crore raised against Romell Real Estate Pvt. Ltd., holding that the authorities erred by adding the cost of constructing a Permanent Transit Camp (PTC) while recalculating the market value in a slum redevelopment project. A Single Judge Bench of Justice Somasekhar Sundaresan found that the Chief Controlling Revenue Authority (CCRA) acted arbitrarily in enhancing the market value by including the PTC construction cost...
Importer Who Voluntarily Pays Differential Customs Duty, Seeks DRI Probe Closure Cannot Claim Refund: Madras High Court
The Madras High Court on Wednesday held that differential customs duty voluntarily paid during a Directorate of Revenue Intelligence (DRI) investigation cannot be claimed as a refund. The Court further held that Notification No. 25/2019-Customs amended the applicable customs duty rate by treating shrimp larvae feed in both pellet and non-pellet form as attracting 5% basic customs duty. The notification cannot be applied retrospectively to imports made prior to its issuance.The judgment was...
Customs House Agent Services To Foreign Clients Are Export, Service Tax Not Payable: CESTAT Kolkata
The Kolkata Bench of Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) on 19 February held that Customs House Agent (CHA) services rendered by an international freight forwarder to overseas customers constitute “export of service” and are not liable to service tax. A Bench comprising Judicial Member Ashok Jindal and Technical Member K. Anpazhakan heard cross appeals arising from an order passed against Ceva Freight India Pvt. Ltd (taxpayer), an international freight forwarder engaged...
Service Tax Leviable On Infrastructure Support To TCS, Educational Training Exempt: CESTAT Kolkata
The Kolkata Bench of Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) on 18 February, confirmed service tax liability on infrastructure and allied facilities provided to Tata Consultancy Services (TCS) under “Business Support Service”, while setting aside the entire demand for training and educational activities under “Management or Business Consultancy Service”. A Bench comprising Judicial Member Ashok Jindal and Technical Member K. Anpazhakan, decided the appeal filed by Kalinga...
Supreme Court Issues Notice In Zoomcar Plea Over Denial Of Appeal Against GST Order By Rajasthan High Court
The Supreme Court on Wednesday issued notice on a special leave petition filed by Zoomcar India Pvt. Ltd., a self-drive car rental platform, challenging a Rajasthan High Court order that disposed of its writ petition without granting liberty to pursue a statutory appeal under the GST law. A bench of Justice J.B. Pardiwala and Justice K.V. Viswanathan heard the matter and directed the issuance of notice. Zoomcar had approached the High Court of Judicature for Rajasthan challenging...
Shifting Materials Within Factory Not Taxable As “Cargo Handling Service”: CESTAT Kolkata
The Kolkata Bench of the Customs, Excise and Service Tax Appellate Tribunal (CESTAT) on 17 February, held that shifting and transportation of materials within factory premises does not fall under the category of "Cargo Handling Service" and therefore no service tax is payable on such activity. A Bench comprising Judicial Member Ashok Jindal and Technical Member K. Anpazhakan was hearing an appeal filed by Eastern Transport Agency (taxpayer) against an order passed by the Commissioner of CGST...