Pre-Show Cause Notice Consultation Not An Empty Formality, Mandatory When Demand Is Over ₹50 Lakhs: Bombay High Court

The Bombay High Court has held that pre-show cause notice consultation is not an empty formality; mandatory before the show cause notice (SCN) in demands above Rs. 50 lakhs. The question before Justices M.S. Sonak and Advait M. Sethna was whether a pre-consultation notice would be mandatory before issuing show cause notices where the tax demand exceeds Rs. 50 Lakhs. The bench...

Revisional Powers U/S 56 KVAT Act Are Limited, Clarificatory Orders Have Only Prospective Effect: Kerala High Court

The Kerala High Court stated that revisional powers under Section 56 of the KVAT Act (Kerala Value Added Tax Act, 2003) are limited, and clarificatory orders only have a prospective effect. Justices A. Muhamed Mustaque and Harisankar V. Menon stated that with reference to the power to issue clarification under Section 94 of the Act, the Commissioner has been empowered to hold...

Delhi High Court Orders Economic Offences Wing To Probe Alleged Forgery Of Customs Stamps At Airport

The Delhi High Court has asked the Economic Offences Wing of the Delhi Police to conduct an enquiry into alleged forgery of Customs stamps at the Delhi International Airport.A division bench comprising ​​justices Prathiba M. Singh and Shail Jain passed the direction after the Department claimed that the Customs stamp on an air traveller's representations in connection with their seized...

Voluntarily Filed Returns Cannot Be Revised Through Additional Evidence Under Rule 29 ITAT Rules: Kerala High Court

The Kerala High Court held that voluntarily filed returns cannot be revised through additional evidence under Rule 29 of the ITAT Rules (Income Tax (Appellate Tribunal) Rules, 1963). Rule 29 of the Income Tax (Appellate Tribunal) Rules, 1963 permits the Tribunal to admit additional evidence for any substantial cause. Justices A. Muhamed Mustaque and Harisankar V. Menon...

FIRC Need Not Match Each Transaction, Periodic Certificate Sufficient If Total Forex Benefit Proven: Delhi High Court

The Delhi High Court has held that a Foreign Inward Remittance Certificate (FIRC) need not correspond to each individual transaction and it may reflect a period as a whole, provided that the overall benefit being claimed is fully substantiated by the total foreign exchange remittance.FIRC is issued by bank as proof of international payments for exports.A division bench comprising...

[S.6 CGST Act] J&K&L High Court Upholds GST Show Cause Notices Based On Intelligence Inputs

The Jammu & Kashmir and Ladakh High Court has held that intelligence-based enforcement actions can be initiated by either the Central or the State tax authorities, irrespective of taxpayer assignment, and such actions do not require a separate notification for cross-empowerment.The court dismissed a batch of writ petitions filed by several companies challenging show cause notices issued...

Delhi High Court Refuses To Interfere With Rejection Of AAI's ₹9.34 Crore CENVAT Credit

The Delhi High Court has refused to interfere with an order of the GST authority rejecting CENVAT Credit to the tune of Rs.9.34 crores claimed by the Airport Authority of India.A division bench comprising ​​justices Prathiba M. Singh and Shail Jain noted that the central authority had failed to furnish documents in support of its claim and said, “there is no jurisdictional error...

Tax Monthly Digest: September 2025

SUPREME COURTCustoms Act | Electronic Evidence Admissible Without S.138C(4) Certificate If Assessee's S.108 Statement Admits Contents : Supreme CourtCause Title: ADDITIONAL DIRECTOR GENERAL ADJUDICATION, DIRECTORATE OF REVENUE INTELLIGENCE VERSUS SURESH KUMAR AND CO. IMPEX PVT. LTD. & ORS.The Supreme Court recently held that electronic evidence seized by the Directorate of...

Who Is Prescribed Authority For Appeal U/S 54 U.P. Water Supply & Sewerage Act? Allahabad High Court Asks State

Recently, the Allahabad High Court has asked the State to clarify as to who is the prescribed authority under Section 54 of the U.P. Water Supply and Sewerage Act, 1975 to decide appeal against the assessment order passed by JaI Sansthan or any other agency under sub-section (2) of Section 53 of the Act. Petitioner, Hindustan Aeronautics Limited Transport Aircraft Division Chakeri,...

Delhi High Court Flags Glitch In GST Portal Generating Notice For Personal Hearing After Decision On Appeal

The Delhi High Court recently came across a peculiar case relating to Input Tax Credit refund claim, whereby a notice for personal hearing was issued to the trader, after the Appellate Authority rejected its plea.A division bench comprising Justices Prathiba M. Singh and Shail Jain flagged the glitch in the Department's portal, which generated a personal hearing notice after the passage of...

Assessments U/S 17D Kerala General Sales Tax Act Must Be Finalised Within Reasonable Time Despite Absence Of Limitation Period: High Court

The Kerala High Court stated that the assessments under Section 17D Kerala General Sales Tax Act must be finalised within a reasonable period despite the absence of a limitation period. Justices A. Muhamed Mustaque and Harisankar V. Menon stated that even when the statute does not provide for an outer time limit, the authority has to exercise jurisdiction within a reasonable time....

After Delhi High Court Nudge, Customs Dept Finalises Amendments To Baggage Rules, Seeks Time For Infrastructure Upgrade

The Customs Department recently informed the Delhi High Court that the Draft Baggage Rules (amending Baggage Rules, 2016) have been finalized and are ready to be issued.A division bench of Justices Prathiba M. Singh and Rajneesh Kumar Gupta were further informed that the Department is awaiting upgradation of IT infrastructure, for effective implementation of the new rules.“Issuance of...