Tax
Income Tax Act | S.153C Trigger Starts On Handing-Over Date, Not Search Date: Delhi High Court
The Delhi High Court has dismissed an appeal filed by the Principal Commissioner of Income Tax (Central), Gurugram, upholding the Income Tax Appellate Tribunal's order which had rejected a reassessment notice issued under Section 153C of the Income Tax Act for AY 2013-14. A Division Bench of Justice V. Kameswar Rao and Justice Vinod Kumar held that the six-year block period under...
Can GST Be Levied On Medicines Supplied During In-Patient Treatment? Delhi High Court To Examine
The Delhi High Court will examine whether GST can be demanded on medicines and consumables supplied to patients as part of inpatient treatment.The court issued notice in a writ petition filed by Escorts Heart Institute and Research Centre Limited, a wholly owned subsidiary of Fortis Healthcare, challenging a GST demand of Rs 6.66 crore, along with interest and penalty. A division bench...
Business Law Daily Round-Up: December 19, 2025
TAX “Illegal, Arbitrary & Colourable Exercise Of Power": Karnataka High Court Quashes Consolidated GST Show Cause Notice Clubbing Multiple FYsSVLDR Scheme Can't Be Invoked For Fresh SCN Issued After Deadline Even If Arising From Same Dispute: Delhi High CourtWrit Petition Not Maintainable After GSTAT Becomes Functional; Assessees Must Avail Remedy U/S 112 GST Act: Orissa High CourtGST Act...
Fraudulent CENVAT Credit Allegations Involving Complex Facts Not Fit For Writ Jurisdiction: Delhi High Court
The Delhi High Court has held that the precedents barring invocation of writ jurisdiction in cases involving complex GST/ ITC transactions equally apply to cases of fraudulent CENVAT Credit.A division bench of Justices Prathiba M. Singh and Renu Bhatnagar observed,“This Court has consistently taken the view that in cases involving fraudulent availment of ITC, ordinarily, the Court would not...
Customs | Attending Weddings Can't Justify Indian Origin Foreigner Bringing Half Kilogram Gold Jewellery: Delhi High Court
The Delhi High Court has made it clear that under the garb of attending weddings where wearing gold jewellery is a common affair, a foreigner of Indian origin cannot be permitted to bring half kg gold jewellery to India.A division bench of Justices Prathiba M. Singh and Renu Bhatnagar further added that there was no explanation for the Petitioner, a US citizen, to bring 17 high value...
Export Held Up Due To Conflicting Lab Reports: Delhi High Court Asks Customs To Decide Pan Masala Exporter's Plea
The Delhi High Court has asked the Customs authorities to consider releasing the bank guarantee of a city-based pan masala exporter, forfeited after conflicting lab reports about adulteration of its export products with tobacco.A division bench of Justices Prathiba M. Singh and Shail Jain observed that when no objections were found in the first lab test report (CRCL), “the circumstances...
Home Delivery Services By E-Commerce Platforms To Consumers Exempt From GST: West Bengal AAR
The West Bengal Authority for Advance Ruling (AAR) has ruled that transportation services proposed to be provided by Flipkart India Private Limited under a new logistics model qualify as Goods Transport Agency (GTA) services and are exempt from GST when supplied to unregistered end customers under Serial No. 21A of Notification No. 12/2017–Central Tax (Rate). Flipkart...
GST Interest/Penalty Waiver Can't Be Denied For Initial Wrong RCM Payment Through ITC Once Cash Compliance Is Made: Orissa High Court
The Orissa High Court has held that a GST interest and penalty waiver application filed by the petitioner cannot be rejected merely because a portion of tax liability under reverse charge mechanism (RCM) was initially discharged through input tax credit, subsequently pays the amount in cash and complies with legal requirements. A Division Bench comprising the Chief Justice Harish...
GST Department Can't Raise Fresh Demands For Pre-CIRP Period After Resolution Plan Approval: Delhi High Court
The Delhi High Court has made it clear that the GST Department cannot raise fresh demands for a period prior to the commencement of the Corporate Insolvency Resolution Process (CIRP) under the Insolvency and Bankruptcy Code 2016, after the resolution plan has been approved by the NCLT.A division bench of Justices Prathiba M. Singh and Shail Jain held, “no demand can be raised after...
Customs | Bird Feather Used In Fashion Accessories, Ready-To-Wear Items For Luxury Brands Classifiable As 'Dyed': Mumbai AAR
The Mumbai, Customs Authority for Advance Ruling (CAAR) has held that import of Dyed Feathers, wherein dying activity took place in France was classifiable as 'Dyed Feather' in terms of the General Rules of Interpretation. In a ruling dated December 15, 2025 Shri. Prabhat K. Rameshwaram on classification clarified that imported Feathers were intended for use as ornamental materials...
Customs Act | CESTAT Mumbai Quashes Aluminium Metal Scrap Valuation Enhancement; Says Rule 12 Safeguards Mandatory
The Mumbai Bench of the Customs, Excise and Service Tax Appellate Tribunal (CESTAT) has set aside orders enhancing the value of scrap consignments merely on the basis of National Import Data Base (NIDB) data and a Directorate General of Valuation (DGoV) circular. A Bench comprising Mr. S.K. Mohanty (Judicial Member) and Mr. M.M. Parthiban (Technical Member) stated that the...
Income Tax Act | S.153C Notices Unsustainable When Search For 'Other Person' Initiated After 01.04.2021: Madras High Court
The Madras High Court held that the notices under Section 153C are unsustainable where a search for 'other person' was initiated after 01.04.2021. Section 153C of the Income Tax Act applies when documents or assets belonging to a third party are found during a search, and an assessment is made against that person. Section 153C(3) of the Income Tax Act states that Section...