Tax
Penalty Can Be Imposed On Courier Agency For Not Reporting Suspicious Consignment To Customs: Delhi High Court
The Delhi High Court has held that the Commissioner of Customs can impose a penalty on a courier service which fails to report suspicious consignments being sent or received from abroad.A division bench comprising Justices Prathiba M. Singh and Shail Jain observed that courier agencies have a responsibility to ensure that whenever there are any suspicious courier packets being delivered or...
S.171 GST Act | Businesses Registration Can Be Cancelled Over Non-Reduction Of Prices After GST-Rate Cut: Delhi High Court
The Delhi High Court has held that an authority constituted under Section 171 of the Central Goods and Services Tax Act 2017 can order businesses to reduce their prices following reduction in GST rates applicable to their products.A division bench of Justices Prathiba M. Singh and Shail Jain further held that such authority can also impose penalty or cancel GST registration of those in...
After GST Rate Cut, Non-Reduction Of Price Can't Be Justified By Secretly Increasing Product Quantity At Same MRP : Delhi High Court
The Delhi High Court has made it clear that when GST rates applicable on a given product are reduced by the GST Council, its benefit should trickle down to the end consumer by reduction in prices of such products.A division bench of Justices Prathiba M. Singh and Shail Jain observed that letting manufacturers increase the quantity of the product while charging the same MRP will defeat the...
Tax Weekly Round-Up: September 22 - September 28, 2025
SUPREME COURTNo Export Duty On Transfer From Domestic Tariff Area To SEZ : Supreme Court Dismisses Union's Appeal Against Adani PowerCause Title: UNION OF INDIA THROUGH SECRETARY & OTHER VERSUS M/S ADANI POWER LTD.Observing that the movement of goods from a Domestic Tariff Area (DTA) to a Special Economic Zone (SEZ) is a domestic supply and not an export outside India, the Supreme...
Denial Of Re-Testing Of Seized Goods Must Be Occasional And Recorded In Writing: Bombay High Court
The Bombay High Court has held that re-testing of seized goods is a trade facilitation measure, not to be denied in the ordinary course. Justices M.S. Sonak and Advait M. Sethna stated that "...Ultimately, such denial must be only occasional and that too, on reasonable grounds to be recorded in writing. The guidelines emphasised that this facility of re-testing is nothing but a...
Pending Proceedings Under Omitted CGST Rules 89(4B) & 96(10) Lapse In Absence Of Savings Clause: Bombay High Court
The Bombay High Court has held that all pending proceedings under the omitted CGST Rules 89(4B) & 96(10) lapse in the absence of a savings clause. The bench agreed with the assessee/petitioners that the provisions of Section 6 of the General Clauses Act are not attracted and therefore the pending proceedings can claim no immunity or protection. Unless the Respondents...
Notice U/S 148 Income Tax Act Must Be Delivered To Addressee Personally By Post To Complete Service U/S 27: Allahabad High Court
The Allahabad High Court has held that notices under Section 148 and 282 of the Income tax Act, 1961 must be delivered to the assesee personally through speed post and not merely upon his address to complete service under Section 27 of the General Clauses Act, 1897. It held that presumption of sufficient service arises only when the notice is sent by registered post as in registered...
'Same Order Challenged Before Multiple Benches': CESTAT Refers Matter To President For Constitution Of Special Bench
The Chennai Bench of Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has directed the Registry to refer two appeals to the President of CESTAT for the constitution of a Special Bench to hear and decide the matter against a common order. Citing the principle of “comity of Courts,” the bench, consisting of Ajayan T.V. (Judicial Member) and M. Ajit Kumar (Technical...
Provisional Attachment Of Bank Accounts Cannot Be Done Merely Upon Issue Of Show Cause Notice U/S 74 GST Act: Allahabad High Court
The Allahabad High Court has held that provisional attachment of bank accounts cannot be done merely upon issue of show cause notice under Section 74 of the Goods and Service Tax Act, 2017. Referring to the judgment of the Supreme Court in Radha Krishan Industries v. State of H.P. and its earlier judgment in R.D. Enterprises v. Union of India, the bench of Justice Shekhar B....
White Petroleum Jelly Classified As 'Drug', Not Cosmetic; Higher VAT & Entry Tax Not Leviable: Madhya Pradesh High Court
The Madhya Pradesh High Court stated that White Petroleum Jelly is classified as a 'Drug', not 'Cosmetic', and therefore is not liable to higher VAT and Entry Tax. Justices Vivek Rusia and Jai Kumar Pillai stated that a White Petroleum Jelly of IP grade manufactured and sold by appellant under a valid drug licence is liable to be classified as a category of drug and medicine under...
No Tax Exemption On Bakery Products Sold At Snack Bar: Madras High Court
The Madras High Court held that there is no tax exemption for bakery products sold in a snack bar. Justices S.M. Subramaniam and C. Saravanan were addressing the issue of whether bakery products sold in a snack bar are covered under the notification G.O.P.No.570 dated 10th June 1987 and exempted from tax. The assessee/petitioner is running a restaurant in which they are involved...
CBDT Extends Due Date For Filing Tax Audit Reports To 31st October
On 25th September, the Central Board of Direct Taxes extended the specified date for filing various audit reports for the Previous Year 2024-25 (Assessment Year 2025-26), from 30th September 2025 to 31st October 2025, for assesses referred to in clause (a) of Explanation 2 to sub-section (1) of section 139 of the Income Tax Act,1961.The extension was granted after the Board received...