Tax
S.74 Finance Act Cannot Be Invoked To Seek Redetermination Of Service Tax Liability: Bombay High Court
On November 14th, 2025, the High Court of Bombay at Aurangabad dismissed a writ petition filed by M/s Suman Construction (“assessee” hereinafter), a government-registered civil contractor, which had challenged the service tax demand raised on road construction works for government departments. The principal issue before the Court was whether the assessee could invoke...
Tax Weekly Round-Up: November 10 - November 16, 2025
SUPREME COURTSupreme Court Issues Notice On Patanjali Foods' Rs 2.97 Crore Excise Duty Refund AppealCase Title: Patanjali Foods Ltd. v. Commissioner of Central Excise and Service TaxCase Number: Civil Appeal Diary No(s). 57088/2025The Supreme Court has recently issued notice in an appeal filed by Patanjali Foods Limited (formerly Ruchi Soya Industries Ltd.) seeking a refund of Rs 2.97...
Income Tax Act | Co-operative Societies Not Engaged In Banking Not Entitled To TDS Exemption U/S 194A(3)(iii): Kerala High Court
The Kerala High Court has held that co-operative societies not engaged in banking are not entitled to TDS (Tax Deducted at Source) exemption under section 194A (3)(iii) of the Income Tax Act. Section 194A(3) of the Income Tax Act, 1961 provides exemptions from TDS on interest for certain persons or institutions. Justice Ziyad Rahman A.A. was dealing with a petition...
Customs Duty Payable On Imported Goods Lost In Fire; Exemption Not Available: CESTAT New Delhi
The New Delhi Bench of Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has stated that imported goods which are not used for manufacturing due to fire do not qualify for exemption under Notification No. 12/2012-CUS dated 17.03.2012 and hence, customs duty is payable on such goods. The exemption Notification No. 12/2012-CUS dated 17.03.2012 allows the importers...
Income Tax Act | Rejection Of Settlement Application Does Not Affect Assessee's Right To Contest Assessment Order On Merits : Supreme Court
Rejection of an assessee's settlement application by the Income Tax Settlement Commission without offering settlement terms does not bar the assessee's right to challenge the assessment order on merits under the Income Tax Act, observed the Supreme Court. "The stand of the Revenue that the assessee must give up his right to contest the assessment order on merits, if the settlement application...
Can Arrest Warrants Be Converted To Bailable Warrants In Serious Economic Offence Cases? Rajasthan High Court Refers To Larger Bench
The Rajasthan High Court has referred to a larger bench the question of whether arrest warrants can be converted to bailable warrants in serious economic offences under the provisions of the PMLA (Prevention of Money Laundering Act), Customs, CGST (Central Goods and Services Tax), as well as heinous offences punishable under Indian Penal Code/Bharatiya Nyaya Sanhita. Justice Anoop...
GST Audit | Delhi High Court Sets Aside Show Cause Notice Issued Before Deadline To Reply To Pre-SCN, Says It Violates Natural Justice
The Delhi High Court has quashed the Show Cause Notice (SCN) issued to a company before conducting audit, holding that the authorities violated principles of natural justice by issuing the SCN before expiry of time granted to respond to the pre-SCN.A Division Bench of Justices Prathiba M. Singh and Shail Jain observed,“the Petitioner was given time to file submissions till 28th...
Free Nights & Food Discounts Offered To Lessor Under Hotel Lease Must Be Included In Gross Taxable Value: CESTAT
The New Delhi Bench of Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has stated that service tax is payable on free room nights and food discounts received in kind under a lease agreement with a hotel. Dr. Rachna Gupta (Judicial Member) was examining whether the complementary nights extended by the lessee to the lessor, along with the respective food discount, are to...
Delhi High Court Rejects Appeals By Customs House Clearing Agent Staff Penalised In ₹3.4 Crore Cigarette Smuggling Case
The Delhi High Court recently refused to show any leniency to two employees of a Customs House Clearing Agent (CHA), found involved in smuggling of cigarettes worth Rs.3,40,74,000/-.A division bench of Justices Prathiba M. Singh and Shail Jain observed that CHAs and their employees are responsible to ensure discharge of obligations under the Customs Brokers Licensing Regulations,...
Mere Technical Defects In Supplier Invoices Not Enough To Deny ISD Credit: CESTAT Chennai Sets Aside 'Draconian' Penalty
The Chennai Bench of the Customs, Excise and Service Tax Appellate Tribunal (CESTAT) set aside the denial of service tax credit distributed by the assessee, as an Input Service Distributor (ISD), to its unit. The Tribunal found that although invoices were issued in the name of the Branch Office, such invoices were “received” by the Head Office of the assessee, making it eligible to avail...
UPGST Act | Lien Cannot Be Created On Assessee's Bank Account After Over A Year Has Passed From Payment Of Tax: Allahabad High Court
Recently, the Lucknow Bench of the Allahabad High Court has held that under the UPGST Act, a lien cannot be created on the assessee's bank account an year subsequent to the payment of taxes. Section 62(2) of the UPGST Act provides that where a registered person submits a valid return within 60 days of the service of the order under Section 62(1), the said assessment order would...
Xiaomi India Liable For Differential Customs Duty On Qualcomm Royalties; Royalty Includible In Assessable Value: CESTAT Chennai:
The Chennai Bench of Customs, Excise and Service Tax Appellate Tribunal (CESTAT) has held Xiaomi India liable for differential customs duties on royalties to Qualcomm and Beijing Xiaomi Mobile Software under various agreements for importing and selling Xiaomi-branded mobile phones and components The Bench comprising of Mr. M. Ajit Kumar (Technical Member) and Mr. P....