No Statutory Mechanism To Revise GST Return For ITC: HP High Court Allows Manual Filing Of Monthly Return

In the absence of any statutory mechanism under the GST law to revise or correct GSTR-3B, the monthly GST return used to declare tax liability and claim Input Tax Credit, a taxpayer cannot be left without a remedy for a bona fide mistake, the Himachal Pradesh High Court has held. A division bench of Justices Vivek Singh Thakur and Romesh Verma allowed a registered taxpayer to file the GSTR-3B return manually for the quarter ending March 2021 so that its unclaimed Input Tax Credit (ITC) could be...

Delhi High Court Quashes Higher 3.5% TDS On GE Group Payments, Restores 1.5% Rate

The Delhi High Court has quashed the certificates issued by the Income Tax Department directing deduction of tax at source (TDS) at a higher rate of 3.5% on payments made to two GE group entities, and directed the authorities to issue fresh certificates prescribing deduction at the rate of 1.5%.A Division Bench of Justices Dinesh Mehta and Vinod Kumar allowed the writ petitions filed by GE Energy Parts Inc. and GE Global Parts and Products GmbH, challenging certificates issued under Section 197...

Dermatological Treatments For Psoriasis And Skin Disorders Exempt from GST: Kerala AAR Clarifies

The Kerala Authority for Advance Ruling (AAR) ruled that healthcare services provided for the treatment of psoriasis, dandruff, dermatitis, fungal infections and folliculitis are exempt from GST. The ruling was delivered by a coram comprising Jomy Jacob, IRS (Additional Commissioner of Central Tax) and Mansur M. I. (Joint Commissioner of State Tax). The applicant, a board, engaged in providing dermatological treatments through qualified medical practitioners at licensed clinics. It sought...

Himachal Pradesh High Court Quashes ₹16.72 Lakh GST Input Tax Credit Demand After Tax Is Paid

The Himachal Pradesh High Court has quashed a tax demand of Rs 16.72 lakh raised against Shivalik Containers Pvt. Ltd. for the alleged wrongful availment of Input Tax Credit (ITC).The court held that the subsequent payment of tax along with interest by the supplier cannot be ignored while examining the sustainability of a demand raised against the recipient, even if such compliance takes place after a delay of more than five years. A Division Bench of Justice Vivek Singh Thakur and Justice Jiya...

Income Tax | Delhi High Court Bars Tax Recovery After Taxpayer Pays 20% Of Disputed Demand

The Delhi High Court on Tuesday restrained the Income Tax Department from taking any recovery action, including adjusting refunds, after it orally observed that the taxpayer had already paid 20% of the disputed tax demand and had the balance stayed during the pendency of the appeal. A Division Bench of Justice Dinesh Mehta and Justice Vinod Kumar was hearing a petition filed by a trader who had filed his return for Assessment Year 2021–22. The tax demand arose after additions were made to the...

Judiciary Fixing GST Rate On Air Purifiers Would Disrupt Constitutional Framework: Centre Tells Delhi High Court

The Central Government has opposed before the Delhi High Court a public interest litigation (PIL) to declare air-purifiers as “medical devices” and for removing imposition of 18% GST on them.In its affidavit, the Government has said that the GST Council is the sole Constitutionally designated body for making recommendations on matters pertaining to GST, and judicial interference in such matters would necessarily bypass the constitutionally mandated process. The affidavit says that such an...

Can Customs Reopen Decade-Old Duty Drawback Claims? Delhi High Court To Examine?

In March, the Delhi High Court is set to examine whether customs authorities can revive decade-old export transactions through belated show cause notices (SCNs) without running afoul of the doctrine of delay and laches.On December 9, 2025, a Division Bench of the Delhi High Court comprising Justices Prathiba M. Singh and Shail Jain heard a batch of petitions concerning the validity of SCNs issued in relation to the availment of duty drawback. The issue arose from the issuance of SCNs to the...

"Shocking": Delhi HC Pulls Up IT Dept For 8-Year Delay In Processing ₹5.37 Crore Microsoft Refund

The Delhi High Court has pulled up the Income Tax Department over “shocking” eight years delay in processing Rs 5.37 crore tax refund to Microsoft Corporation India.A Division Bench of Justices Dinesh Mehta and Vinod Kumar allowed the writ petition filed by Microsoft India seeking refund of amounts arising from Fringe Benefit Tax (FBT), which had been acknowledged as payable as far back as in June 2017.The court noted that while the Assessing Officer had determined refundable amounts of Rs 6.94...

AP VAT Act | Tax Dept Must Specify Negligence Before Recovering Company Dues From Directors: Andhra Pradesh High Court

The Andhra Pradesh High Court at Amaravati has held that tax authorities cannot recover unpaid taxes under the Andhra Pradesh Value Added Tax Act, 2005, from directors of the company unless they first clearly spell out the negligence or breach of duty alleged against them. A Division Bench of Justice R Raghunandan Rao and Justice T. C. D. Sekhar clarified the scope of Section 24(5) of the Andhra Pradesh Value Added Tax Act, 2005. The court said that while the provision does allow directors of...

Income Tax | Manual Returns Invalid After E-Filing Became Mandatory For Companies on May 14, 2007: Madras High Court

The Madras High Court has held that from May 14, 2007, companies had to file their income tax returns electronically, and that paper returns filed after that date carry no legal validity A bench of Justices Anita Sumanth and Mummineni Sudheer Kumar rejected a claim for deduction under Section 80-IC of the Income Tax Act, holding that electronic filing of returns was a mandatory requirement for availing the benefit. The case reached the High Court after the Income Tax Department filed an appeal...

Textile Committee Cess Not Leviable On Independent Dyeing, Processing Units: Punjab And Haryana High Court

The Punjab and Haryana High Court has recently ruled that the textile committee cess cannot be imposed on independent dyeing and processing units. It held that fabric processing on a job-work basis does not amount to “manufacture” under the Textile Committee Act, 1963. The bench, consisting of Justices Jagmohan Bansal and Amarinder Singh Grewal, stated that the respondent (department) is attempting to borrow the definition of 'manufacture' from the Central Excise Act, read with the Central...

Belated Deposit Of TDS Doesn't Extinguish Criminal Liability Under Income Tax Act: Delhi High Court

The Delhi High Court has held that the subsequent or belated deposit of tax deducted at source (TDS) does not absolve an assessee or company officials of criminal liability under Section 276B of the Income Tax Act, 1961.Justice Amit Mahajan thus dismissed the petition filed by a company's Managing Director, seeking quashing of a criminal complaint and summoning order in a case relating to delayed deposit of TDS amounting to over ₹2.09 crore for the financial year 2017–18.The plea challenged the...