Tax
ITAT Flags Mismatch Between Stock & Sales Of Jewellery Firm During Demonetisation Period, Orders Fresh Examination
The Lucknow Bench of the Income Tax Appellate Tribunal (ITAT) has set aside an appellate order deleting a ₹2.75 crore addition made on account of cash deposits during the demonetisation period and has remanded the matter back to the Assessing Officer for a fresh assessment. A Bench comprising Vice President Kul Bharat and Accountant Member Anadee Nath Mishra was hearing the...
Delhi High Court Grants Bail To Accountant Accused Of Running Fake Firms, Passing Fraudulent ITC On ₹5 Lakh Bond
The Delhi High Court on Friday, December 26 2025 has granted bail to an Accountant allegedly involved in running fictitious firms and passing on fraudulent Input Tax Credit (ITC) upon furnishing a bond of Rs. 5,00,000. A Vacation Bench of Justice Vikas Mahajan found this a fit case for regular bail noting 'no previous involvements' with co-accused already released on bail in 2024 in...
Business Law Daily Round-Up: December 27, 2025
TaxWorks Contract Service Provided To CESC For Transmission Or Distribution Of Electricity Not Liable To Service Tax: CESTAT KolkataRemuneration Paid To Whole-Time Directors Treated As 'Salary'; Service Tax Not Leviable: CESTAT Chennai Limitation Not “Extinguishing Engine' For Substantive Rights: Calcutta High Court Condones 2262 Day Delay In Filing Appeal GST | Mismatch In E-Way...
Customs Notifications Cannot Override FTP & HBP Benefits Once DGFT Grants Approval: CESTAT Chennai Grants Relief To Hyundai Motor
The Chennai Bench of Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) held that once benefits under the Foreign Trade Policy (FTP) and Handbook of Procedures (HBP) are granted by the Directorate General of Foreign Trade (DGFT), the same cannot be nullified by Customs through Notifications or Circulars issued under the Customs Act, 1962. Ajayan T.V (Judicial Member) and...
Penalty U/S 45A KGST Act Cannot Be Initiated Beyond 'Reasonable Time' Despite No Prescribed Limitation Period: Kerala High Court
The Kerala High Court held that even though Section 45A of the Kerala General Sales Tax Act, 1963 (KGST Act) does not prescribe any limitation period, penalty proceedings must be initiated within a reasonable time. Justices A. Muhamed Mustaque and Harisankar V. Menon stated that since the notice was issued with reference to the assessment year 2011-12, the period of five years had...
No Service Tax Payable On Laying Of Cables Under Or Alongside Roads: CESTAT Kolkata
The Kolkata Bench of Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) held that consideration received for laying of underground telecom/optical fibre cables under or alongside roads is not liable to service tax. Ashok Jindal (Judicial Member) and K. Anpazhakan (Technical Member) opined that the entire demand confirmed in the impugned order under these specific categories...
GST | Mismatch In E-Way Bill Destination Is Substantive Violation, Not Bonafide Error: Madhya Pradesh High Court
The Madhya Pradesh High Court, in a matter where Invoices and Consignment Note mentioned the correct destination address, but E-way Bill mentioned another address, has dismissed the writ petition. In a recent order, a Division Bench comprising Justice Vivek Rusia and Justice Pradeep Mittal emphasized on how during transportation of the goods 'no steps' were taken to correct the mistake...
Limitation Not “Extinguishing Engine' For Substantive Rights: Calcutta High Court Condones 2262 Day Delay In Filing Appeal
The Calcutta High Court held that the law of limitation is not meant to extinguish substantive rights and must be applied with a liberal approach where delay is caused by bona fide conduct. The bench condoned the delay of 2262 days in filing the CESTAT appeal, holding that the assessee's bona fide pursuit of settlement under the Sabka Vishwas (Legacy Dispute Resolution) Scheme,...
Remuneration Paid To Whole-Time Directors Treated As 'Salary'; Service Tax Not Leviable: CESTAT Chennai
The Chennai Bench of Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) held that remuneration paid to whole-time directors does not constitute a taxable service. Consequently, service tax under the reverse charge mechanism (RCM) is not leviable. P. Dinesha (Judicial Member) and Vasa Seshagiri Rao (Technical Member) opined that the remuneration paid to the...
Works Contract Service Provided To CESC For Transmission Or Distribution Of Electricity Not Liable To Service Tax: CESTAT Kolkata
The Kolkata Bench of Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) held that works contract service provided to Calcutta Electricity Supply Corporation (CESC) for transmission or distribution of electricity is not liable to service tax. Ashok Jindal (Judicial Member) and K. Anpazhakan (Technical Member) examined whether the works contract service provided by...
Business Law Daily Round-Up: December 26, 2025
Tax GST Registration Can Be Restored If Returns And Dues Are Cleared: Gauhati High CourtRevenue Cannot Reclassify Input Services Or Deny CENVAT Credit While Sanctioning Refund: CESTAT ChandigarhCentre Imposes Anti-Dumping Duty On 2-Ethyl Hexanol Imports From EU, US, Korea, Others Till June 2026Service Tax | Sale Of Popcorn & Beverages At Cinema Counters Is Not Service, No Service Tax...
Excise | No Suppression Where Credits Reflected In Statutory Returns; Extended Limitation Invalid; Indian Oil Petronas Wins CESTAT Appeal
The Chennai Bench of Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) held that when the availment of CENVAT credit is duly disclosed in statutory ER-1 returns and the assessee has regularly paid excise duty, allegations of suppression within the intent to evade duty cannot be sustained. P. Dinesha (Judicial Member) and Vasa Seshagiri Rao (Technical Member) stated that...