CESTAT Kolkata Says Customs Cannot Extend Findings From Two Tested Mica Consignments To 72 Earlier Imports

The Kolkata Bench of the Customs, Excise and Service Tax Appellate Tribunal (CESTAT) has partly allowed an appeal by M.P. Mica Enterprises Private Limited, holding that customs authorities could not apply laboratory findings from two live consignments of imported mica to 72 past consignments without independent evidence that the earlier imports were identical. A bench of Judicial Member Ashok Jindal and Technical Member K. Anpazhakan, however, upheld the reclassification of the two live...

CESTAT Kolkata Sets Aside Service Duty On Sterling Meta-Plast, Excludes Franchise Fees, AMP From Value

The Kolkata Bench of the Customs, Excise & Service Tax Appellate Tribunal (CESTAT) on 26 May held that franchise fees, advertisement and promotional expenses, and corporate marketing fees paid under brand licensing arrangements for Tommy Hilfiger and French Connection eyewear are not includible in the assessable value of imported goods. Judicial Member Ashok Jindal and Technical Member K. Anpazhakan reasoned that the expenses are not linked to the import transaction or a condition of sale...

Supreme Court Upholds 28% GST On Online Money Gaming, Fantasy Sports; 2023 Amendments Retrospective

The Supreme Court on Wednesday upheld the constitutional validity of the GST framework taxing online gaming, fantasy sports, and casino transactions involving staking on uncertain outcomes, affirming the 28% levy applicable to such taxable actionable claims. It also held that the 2023 GST amendments, which specifically brought online money gaming, casinos, and horse racing within the revised tax framework, are merely clarificatory and therefore apply retrospectively.A bench of Justices J.B....

CESTAT Chandigarh Holds 'Input Service' Has Wide Scope Under Cenvat Rules, Allows Hero MotoCorp Appeals

The Chandigarh Bench of the Customs, Excise and Service Tax Appellate Tribunal (CESTAT) on 26 May held that the definition of “input service” under Rule 2(l) of the Cenvat Credit Rules, 2004 has a wide ambit and includes services having even an indirect nexus with manufacturing or business activities. Judicial Member S.S. Garg and Technical Member P. Anjani Kumar allowed a batch of appeals filed by Hero MotoCorp Ltd (formerly Hero Honda Motors Ltd) and set aside the demand raised by the...

Statutory CAMPA Deposits Not Consideration For Taxable Service Under Finance Act: CESTAT New Delhi

The Principal Bench of the Customs, Excise & Service Tax Appellate Tribunal (CESTAT), New Delhi, on 25 May held that mandatory Net Present Value (NPV) deposits made into the Compensatory Afforestation Fund (CAMPA) for obtaining forest clearance cannot be treated as consideration for a taxable service under the Finance Act, 1994. Judicial Member Ajay Sharma and Technical Member P.V. Subba Rao allowed the appeal filed by Chhattisgarh State Power Transmission Company Ltd. and set aside a...

Service Tax Demand Based Solely On Third-Party TDS, ITR Data Unsustainable Without Inquiry: CESTAT Delhi

The Customs, Excise & Service Tax Appellate Tribunal (CESTAT) at New Delhi has recently held that the tax department cannot sustain a service tax demand by invoking the extended limitation period solely on the basis of discrepancies between service tax returns and third-party TDS/ITR data. The tribunal held the department must independently verify whether taxable services were actually rendered before raising such a demand. It accordingly set aside a ₹7.67 lakh demand against Vikash...

Proportionate CENVAT Credit Reversal Equals Non-Availment; CESTAT Delhi Quashes Demand Against Hindustan Zinc

The Principal Bench of the Customs, Excise & Service Tax Appellate Tribunal (CESTAT), New Delhi has set aside a more than ₹7.18 crore demand, along with interest and penalties, raised against Hindustan Zinc Limited over electricity wheeled out from its captive power plant to sister concerns and the state distribution utility. A coram of President Justice Dilip Gupta and Technical Member P. Anjani Kumar held that the reversal of proportionate CENVAT credit attributable to such electricity...

Himachal Pradesh HC Quashes GST Show Cause Notice, Says Department Bound By Unchallenged Advance Ruling

The High Court of Himachal Pradesh has quashed a GST show cause notice issued to Amit Engineers after finding that the notice was issued despite an earlier Advance Ruling that had attained finality between the parties. A bench of Justice Vivek Singh Thakur and Justice Ranjan Sharma observed: “in view of the finality attached to the Advance Ruling between the parties, the show cause notice dated 14.02.2025 (Annexure P-6) was without foundation. In view of the finality of the advance ruling...

ITAT Delhi Deletes ₹15.96 Crore Addition Against Charitable Society Over Allegedly Non-Genuine Donations

The Income Tax Appellate Tribunal (ITAT) has deleted a ₹15.96 crore addition made against ARVR Education Societya charitable society after rejecting the tax department's claim that corpus donations received by the charitable society from four parties were unexplained cash credits rather than genuine voluntary contributions. A Delhi bench comprising Judicial Member Satbeer Singh Godara and Accountant Member Naveen Chandra framed the central issue as, “The first and foremost question which...

Supreme Court Refuses To Interfere With HC Ruling Allowing JSW Steel's Rs 47.47 Crore Electricity Duty Refund

The Supreme Court on Tuesday refused to interfere with a Bombay High Court ruling directing Maharashtra authorities to refund Rs 47.47 crore in electricity duty to JSW Steel, upholding the company's claim to exemption till August 2019 under the State's incentive scheme. A Bench of Justices B.V. Nagarathna and Ujjal Bhuyan dismissed the State of Maharashtra's special leave petitions challenging the April 2 judgment. “We have heard learned senior counsel for the petitioners and learned senior...

Ergotamine Preparation Export Needed No NOC From Narcotics Commissioner: CESTAT Delhi Sets Aside Penalty

The Customs, Excise & Service Tax Appellate Tribunal (CESTAT) at Delhi has recently held that the export of the pharmaceutical product in question containing 1% Ergotamine did not require prior clearance from the Narcotics Commissioner, setting aside a ₹50,000 penalty imposed on customs broker Unnati Cargo. The single-member bench of Judicial Member Binu Tamta held that the product could at best be treated as a preparation of Ergotamine and not as “Ergotamine and its salts,” the category...

Supreme Court Refuses To Interfere With Delay Condonation In Income Tax Dept's Appeal Against IFUNA

The Supreme Court on Monday refused to interfere with a Delhi High Court order that condoned the Income Tax Department's delay in filing and re-filing its appeal against Indian Federation of United Nations Association (IFUNA). The delay was 154 days in filing the appeal and 112 days in re-filing it.The Delhi High Court had on March 24, 2026 condoned the delay observing that though the delay was substantial and not properly explained, a “lenient view in the interest of justice” was required A...