Tax
WhatsApp Service of SCN Not Recognised Under Central Excise Law: CESTAT Delhi
The Customs, Excise, and Service Tax Appellate Tribunal (CESTAT), New Delhi, on Monday held that service of a show cause notice through WhatsApp is not a legally recognised mode of service under the Central Excise Act. It set aside a service tax demand of ₹2.28 lakh raised against a person engaged in services relating to sale of advertisement space in print media, also finding that the bulk of the demand was time-barred and the balance unsustainable for want of evidence of fraud or wilful...
CESTAT Delhi Sets Aside ₹3.07 Crore Service Tax Demand, Upholds Cenvat Credit On Running Bills
The Customs, Excise, and Service Tax Appellate Tribunal (CESTAT), New Delhi, has set aside a service tax demand of more than ₹3.07 crore against Resident Engineer, Rajasthan Housing Board, along with interest and penalties, in a dispute over availment of Cenvat credit on running account bills and measurement books. A bench of Judicial Member Binu Tamta and Technical Member Hemambika R. Priya held that the extended limitation period could not be invoked and that credit could not be denied where...
Supreme Court Dismisses IT Dept's Appeal Against Pernod Ricard In Advertising Expense Tax Dispute Over Delay
The Supreme Court on Tuesday dismissed the Income Tax Department's challenge to a Delhi High Court ruling in favour of Pernod Ricard India Pvt Ltd. It declined to interfere with the judgment that had held AMP and brand-building expenses could not be disallowed in the absence of evidence showing an arrangement with the foreign associated enterprise. The top court declined to entertain the Revenue's plea on account of a 384-day delay in filing the appeal. A Bench of Justices J.B. Pardiwala and...
Supreme Court Issues Notice In DMRC Plea Against ₹45 Crore Service Tax Demand On Upfront Lease Premium
The Supreme Court on Tuesday issued notice on an appeal filed by Delhi Metro Rail Corporation Ltd (DMRC) challenging a CESTAT ruling that upheld a service tax demand of over ₹45 crore. The demand relates to upfront fees received under long-term lease arrangements for property development linked to the Delhi Metro project.A Bench of Justices Pamidighantam Sri Narasimha and Alok Aradhe issued notice and agreed to hear the case on merits."Issue notice on the Civil Appeal as well as on the...
GSTAT Delhi Upholds Anti-Profiteering Order Against Builder, Directs ₹63.93 Lakh Refund
The Goods and Services Tax Appellate Tribunal (GSTAT) at Delhi has upheld anti-profiteering proceedings against Siddha Infradev LLP and directed the builder to refund ₹63.93 lakh, along with 18% interest, to nine eligible homebuyers after finding that it failed to pass on the benefit of additional input tax credit in its Kolkata housing project. A single-member bench of Technical Member Anil Kumar Gupta, ruled, “Procedural delays by a statutory authority, in the absence of any prescribed...
Reliance Industries' n-Hexane Import Cannot Be Classified As Motor Spirit Merely For Low Flash Point: Supreme Court
The Supreme Court has ruled in favour of Reliance Industries Ltd. in its long-running customs classification dispute, holding that imported n-Hexane cannot be treated as motor spirit merely because its flash point is below 25°C. The court held that the Customs Department failed to prove that the product satisfied all conditions required for such classification, including suitability for use as fuel in spark ignition engines. A bench of Justice Aravind Kumar and Justice Prasanna B. Varale...
No Excise Duty On Export Unit's Domestic Sale Of Marble Slabs Cut From Imported Blocks Pre-2006: CESTAT Delhi
The Principal Bench of the Customs, Excise & Service Tax Appellate Tribunal (CESTAT) in New Delhi has recently held that no central excise duty could be levied on the domestic sale of marble slabs and tiles by Abhishek Exporters, a 100% export-oriented unit, after finding that cutting imported marble blocks into such products during 2002 to August 2005 did not amount to manufacture. A bench of President Justice Dilip Gupta and Technical Member K. Anpazhakan partly allowed appeals filed by...
CESTAT Allahabad Says Customs Cannot Reassess Value Of Goods After Clearance For Home Consumption
The Customs, Excise and Service Tax Appellate Tribunal (CESTAT), Allahabad has recently set aside a customs duty demand of over ₹10.22 crore against Uttam Steel Alloys after finding multiple flaws in the department's case, including its attempt to enhance the value of goods after they had already been cleared for home consumption. A coram of Judicial Member P K Choudhary and Technical Member P Anjani Kumar held that once goods are cleared for home consumption, they cease to retain the character...
Supreme Court Refuses To Interfere With Relief To Karnataka Bank In HTM Investment Income Tax Dispute
The Supreme Court on Monday declined to interfere with Karnataka Bank Ltd's tax relief in a dispute over deduction for diminution in the value of its held-to-maturity (HTM) investments, which are securities that banks buy with the intention of holding until maturity rather than trading. A Bench of Justices Manoj Misra and Manmohan dismissed the Revenue's special leave petition against the Karnataka High Court's August 2025 judgment that had upheld relief granted to the bank. “We do not find a...
Delhi High Court Protects IndiGo From Coercive Action In ₹458 Crore GST Dispute
The Delhi High Court on Friday protected InterGlobe Aviation, which operates India's largest airline IndiGo, from coercive action over a ₹458.26 crore goods and services tax (GST) demand linked to compensation received from a foreign engine supplier. A division bench of Justices Nitin Wasudeo Sambre and Ajay Digpaul issued notice to the GST department and granted interim protection to the airline after observing that, prima facie, the amount received by IndiGo appeared to be “compensation”, and...
CESTAT Upholds CST Demand, ₹6.43 Crore Penalty On Kedia Vanaspathi, Rejects Consignment Sale Claim
The New Delhi Bench of the Customs, Excise & Service Tax Appellate Tribunal (CESTAT) on 12 May 2026 upheld the tax demand and penalty against Kedia Vanaspathi Ltd., holding that a dealer seeking exemption under Section 6A of the Central Sales Tax Act, 1956 must prove, with prescribed evidence, that inter-State movement of goods arises from consignment transfers and not sales. President Justice Dilip Gupta and Technical Member P.V. Subba Rao dismissed the appeals and confirmed the...
Delhi HC Upholds DGCEI Officers' Discharge In Custodial Torture Case, Rejects CCTV Evidence
On 22 May, the Delhi High Court upheld the discharge of officers of the Directorate General of Central Excise Intelligence (DGCEI) who were accused of illegally detaining, kidnapping and torturing a businessman during a central excise investigation. A Bench of Justice Amit Mahajan held that the CCTV footage relied upon by the complainant was not admissible because it did not have the required certificate under Section 65B of the Indian Evidence Act, 1872 and dismissed the revision petitions...