Tax
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LiveLawBiz is LiveLaw's dedicated platform for tax and regulatory laws.If you follow developments in direct tax, indirect tax (GST), customs, tax litigation or regulatory matters, we invite you to visit LiveLawBiz for more specialised and comprehensive coverage. LiveLawBiz brings you: - • IPR • Corporate Law • Competition Law • RERA • IBC While selected major tax developments will continue to appear on LiveLaw, more detailed and regular coverage is now available on...
Retrospective Sales Tax Liability: Revenue To State versus Reasonableness.
In a welfare State, the government imposes tax to generate revenue to fund the welfare objectives that serve the people. One such tax prior to enactment of GST Act, 2017 was sales tax. In a commercial activity, sales tax was collected by the dealer from the purchaser and paid to the State. The Supreme Court on 13th July, 2026 in Asia Sugar & Chemical Co., Devangere Versus The State of Karnataka & Ors. with analogous case, 2026 INSC 693 has held retrospective sales tax liability valid but...
Mere Delay In Depositing Foreign Travel Tax Not Same As 'Failure To Pay' : Supreme Court Sets Aside Penalty On Saudi Airlines
The Supreme Court has today (01.09.2026) held that mere delay in depositing Foreign Travel Tax (FTT) collected from passengers cannot be equated with failure to pay the tax, and hence, does not attract the penalty prescribed under Section 38(3) of the Finance Act, 1979. The Court also held that imposition of penalty under the provision is not automatic merely because there has been a breach...
Ports Governed By Major Port Trusts Act Liable To Pay Customs Duty On Pilfered Goods Under Customs Act : Supreme Court
The Supreme Court on Tuesday (August 25) upheld the Commissioner of Customs order of classifying the Mumbai Port Trust as a 'custodian' under the Customs Act for the purpose of paying duty on 'pilfered goods' i.e., loss or damage to stock in a warehouse or to cargo in transit. The Court said that regardless of the fact that the Mumbai Port trust is governed by the Major Port Trusts Act,...
S. 74 CGST Act | General Allegations Of Fraud/Suppression Won't Extend Limitation; SCN Must Specify Foundational Facts : Supreme Court
The Supreme Court on Tuesday (August 25) quashed the GST show-cause notice issued to Tata Steel Ltd. under Section 74 of the Central Goods and Services Tax Act, 2017, for alleged short payment of tax due to suppression of facts. A bench of Justice JB Pardiwala and Justice K Vinod Chandran called the department's invocation of Section 74 of the Act, rather than the ordinary mechanism...
AI-Generated Case Laws In Tax Order: Gujarat High Court Directs Strict Verification And Human Oversight, Warns Of Contempt
The Gujarat High Court quashed a GST cancellation order as well as appellate proceedings against an entity after noting that the State Tax Officer had passed the order relying exclusively on AI-generated case laws, including non-existent and irrelevant authorities. [2026 LiveLaw (Guj) 228]A division bench of Justice AS Supehia and Justice Vaibhavi D Nanavati had in its earlier ordered said...
Only 29 Of 92 Posts Filled: Allahabad High Court Flags 'Disturbing' Vacancies In UP GST Appellate Tribunal
While flagging a “disturbing state of affairs” over substantial vacancies in the GST Appellate Tribunal in Uttar Pradesh, the Allahabad High Court has noted that only 29 of the 92 sanctioned posts have been filled, leaving 63 posts vacant.Justice Piyush Agrawal observed that mere issuance of circulars or advertisements cannot amount to compliance with the obligation to make the...
Referral Charges Received By Auto Dealers For Bank & Insurance Promotion Subject To Service Tax : Supreme Court
The Supreme Court on Wednesday (August 19) held that the referral charges received by automobile dealers from banks and insurance companies for facilitating vehicle loans and insurance policies are taxable as “Business Auxiliary Service” under the Finance Act, 1994. “The assessee is promoting the business of the banks and the insurance company for which they receive an amount as...
Income Tax Act | 18-Month Period To Decide Settlement Application Under S.245D(4A) Is Mandatory, Not Directory: Allahabad High Court
The Allahabad High Court at Lucknow has held that the period of 18 months prescribed under Section 245D(4A)(iii) of the Income Tax Act, 1961 for disposal of a settlement application is mandatory and not directory in nature. It quashed an order of the Interim Board for Settlement passed after that period had expired.Section 245D(4A)(iii) of the Income Tax Act requires an order under...