Tax
Use Of Word 'Determined' In SCN Shows Pre-Determination; S.74 Invocation Unsustainable: Madras High Court Quashes GST Demand
The Madras High Court has held that using the word 'Determined' in the show cause notice (SCN) betrays an element of pre-determination on the part of the authority. The bench highlighted that the show cause notice must clearly specify whether the assessee is being charged with fraud, suppression or wilful misstatement to invoke section 74 of the Tamil Nadu Goods and Services...
Delhi High Court Quashes VAT Assessment Orders Passed By Audit Officer Citing Lack Of Jurisdiction
The Delhi High Court has quashed a batch of VAT assessment orders issued by VAT Audit Officer, stating that the authority did not have necessary delegation to carry out assessments.Form DVAT-50 enables the VAT Commissioner to authorize officials for carrying out audit, investigation and enforcement functions under Delhi Value Added Tax Act and Rules.However, a division bench of Justices...
“Gross Concealment”: Delhi High Court Imposes ₹5 Lakh Costs On Party In Poppy Seeds Smuggling Case
The Delhi High Court recently imposed exemplary costs of ₹5 lakh on the power of attorney holder of a company, purportedly involved in smuggling of prohibited items like poppy seeds.A division bench of Justices Prathiba M. Singh and Shail Jain noted that the Petitioner had failed to disclose that his challenge to the penalty order passed by the Customs authority was previously dismissed by...
Delhi High Court Grants Interim Relief To Aadhar India Over Non-Issuance Of Pre-Show Cause Notice Intimation In GST Case
The Delhi High Court, while examining whether pre-consultation prior to a GST Show Cause Notice was mandatory or discretionary, granted interim relief to Aadhar India by permitting the proceedings arising from the Show Cause Notice dated 29 November 2024 to continue, but directing that any final order passed pursuant thereto should not be given effect without further orders of...
Customs Brokers Creating Fake Firms Jeopardise Real Exporters: Delhi High Court Forfeits ₹2 Lakh Over Alleged Duty Drawback Fraud
The Delhi High Court has ordered forfeiture of ₹2,00,000/- out of the ₹5 lakh security deposit made by a Customs Broker at the time of obtaining license, citing allegations of duty drawback fraud against it.A division bench of Justices Prathiba M. Singh and Shail Jain were dealing with an appeal preferred by the Commissioner of Customs against a CESTAT order, restoring the...
Transfer Pricing Officer Cannot Cherry-Pick Transactions When Transactional Net Margin Method Is Accepted: ITAT Mumbai
The Income Tax Appellate Tribunal (ITAT) Mumbai has held that once the Transactional Net Margin Method (TNMM) is accepted for benchmarking all international transactions, the Transfer Pricing Officer (TPO) cannot cherry-pick only the management fee and assign an Arm's Length Price (ALP) at NIL. In the case in hand, the assessee had preferred an appeal before the ITAT seeking deletion...
Affidavit Of Cost Accountant In Personal Hearing Cannot Be Ignored When Facts Are Admitted By State Tax Officer: Kerala High Court
The Kerala High Court has held that an affidavit by professionals, such as a cost accountant, given during a personal hearing, cannot be ignored, especially when a state tax officer admits facts referred therein. Justice Ziyad Rahman A.A. stated that when a professional swears an affidavit before this Court, highlighting the matters that transpired during the course of the hearing,...
KVAT Act | Permission For Compounding Tax Cannot Be Cancelled For Suppression; Only Suppressed Turnover Can Be Taxed: Kerala High Court
The Kerala High Court has held that under the KVAT Act (Kerala Value Added Tax Act, 2003), the assessing authority cannot cancel permission to pay tax at compounding rates for suppression in the same year it was opted, and only the suppressed turnover can be taxed at normal rates. Justice M.A. Abdul Hakhim opined that cancellation proceedings are still pending, and the cancellation...
Two Days Delay In Paying Last Instalment Under VAT Amnesty Scheme Owing To Technical Glitch Is Condonable: Gujarat High Court
The Gujarat High Court has extended benefit of Amnesty Scheme under the Gujarat Value Added Tax (GVAT) Act, 2003 to dealer who was precluded from making full payment under the Scheme on account of 'automatic' re-adjustment of instalment amount. The Division Bench, comprising Justice Bhargav D. Karia and Justice Pranav Trivedi set aside rejection of application under the Scheme noting...
Refund Of Capital Advance From Karta To HUF Is Capital Receipt; Commercial Use Of Capital Does Not Convert It Into Income: ITAT Mumbai
On November 17th, 2025 the Bench of Shri Vikram Singh Yadav (Accountant Member) and Shri Sandeep Singh Karhail (Judicial Member) of the ITAT Mumbai partly allowed the appeal holding that the disallowance under Section 14A (Expenditure for exempt income) r/w Rule 8D cannot exceed the actual expenditure of ₹69,455 incurred by the assessee, and that the excess refund of...
Punjab & Haryana High Court Quashes Negative Blocking of ITC Under Rule 86A; Holds Ledger Cannot Be Blocked Beyond Available Credit
The Punjab & Haryana High Court has quashed orders that disallowed debit from Electronic Credit Ledgers of taxpayers in excess of the Input Tax Credit (ITC) available at the time of passing of the said order. The Division Bench comprising, Justice Lisa Gill and Justice Meenakshi I. Mehta followed the principles judicial reasoning for blocking of Electronic Credit Ledger under Rule 86-A...
Rebate Under Rule 18 CER Cannot Be Denied Without Examining Duty On Exported Goods: Bombay High Court Remands Yamaha's Claim
The Bombay High Court has held that a rebate under Rule 18 Central Excise Rules, 2002, cannot be denied without determining the tax liability on exported goods, and has remanded Yamaha's rebate claim to the principal commissioner for fresh consideration. Justices M.S. Sonak and Advait M. Sethna were examining whether the India Yamaha Motor P. Limited was entitled to a rebate...