Refund Claim On Service Tax For Cancelled Property Bookings Maintainable: CESTAT

The New Delhi Bench of Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has stated that refund claim on service tax for cancelled property bookings maintainable. The Tribunal stated that the assessee had issued credit notes in respect of service which is not rendered to the customers on account of cancellation of the agreement and hence there was no scope of rendering...

Tax Weekly Round-Up: August 25 - August 31, 2025

SUPREME COURTSupreme Court Directs DGFT & CBIC To Update Tech Systems To Ensure Genuine Exporters Don't Lose Benefits Over Clerical ErrorsCause Title: M/S SHAH NANJI NAGSI EXPORTS PVT. LTD. Versus UNION OF INDIA AND ORS.The Supreme Court observed that an exporter cannot be denied legitimate entitlements under the government's incentive schemes merely because of an inadvertent clerical...

Customs Act | Electronic Evidence Admissible Without S.138C(4) Certificate If Assessee's S.108 Statement Admits Contents : Supreme Court

The Supreme Court recently held that electronic evidence seized by the Directorate of Revenue Intelligence (“DRI”) can be admissible even without a certificate under Section 138C(4) of the Customs Act, if the assessees has acknowledged these the documents in the devices in their statements under Section 108 of the Customs Act.Section 138C (4) of the Customs Act requires the production of...

Cash Deposits During Demonetisation Not 'Unexplained Money' If Traceable To Previous Year's Balance: Chhattisgarh High Court

The Chhattisgarh High Court held that cash deposits during demonetisation are not unexplained money if traceable to previous year's balance. Section 69 of the Income Tax Act, 1961 requires the assessee to provide proof of income and provide a proper explanation of the source of such unexplained income. Justices Sanjay K. Agrawal and Deepak Kumar Tiwari stated that the factum...

Vehicles Plying Only Within Enclosed Premises Of Factory/Plant Not Liable To Pay Motor Vehicle Tax : Supreme Court

The Supreme Court on Friday (Aug. 29) ruled that the vehicles operating exclusively within the enclosed premises of a factory or plant are not liable to pay motor vehicle tax, as such areas do not constitute a "public place." “Motor vehicle tax is compensatory in nature. It has a direct nexus with the end use. The rationale for levy of motor vehicle tax is that a person who is using...

Income Tax | Interest On Fixed Deposits, TDS Refund Linked To Business Qualifies For S. 80IA Deduction: Bombay High Court

The Bombay High Court held that interest on fixed deposits, TDS refund linked to business qualifies for deduction under Section 80IA of the Income Tax Act. Section 80IA of the Income Tax Act, 1961 provides tax incentives for businesses operating in certain sectors such as infrastructure, power, and telecommunications. Justices B.P. Colabawalla and Firdosh P. Pooniwalla...

Supreme Court Pulls Up Income Tax Dept For Launching Prosecution For Tax Evasion Without ITAT Confirmation, Imposes Rs 2 Lakh Cost

The Supreme Court on Thursday (Aug. 28) imposed Rs. 2 Lakhs cost on Income Tax Department for 'grossly abusing its position' to continue a prosecution against an assessee alleging willful tax evasion.The bench comprising Justices JK Maheshwari and Vijay Bishnoi set aside the Madras High Court's decision, which refused to quash the prosecution case initiated by the department. The Court...

Wedding Gifts Can't Be Automatically Treated As 'Unexplained Income' Without Evidence: ITAT

The Ahmedabad Bench of Income Tax Appellate Tribunal (ITAT) has stated that wedding gifts can't be automatically treated as unexplained income without evidence. Dr. BRR Kumar (Vice President) and Siddhartha Nautiyal (Judicial Member) stated that the fact that marriage gifts were received prior to the date of marriage itself could not lead to the conclusion that the same are not...

GST Dept Can't Probe Misuse Of GSTIN By Third Party, Power Lies With Economic Offences Wing: Delhi High Court

The Delhi High Court has made it clear that allegations of misuse of a trader's GST identification number by a third party cannot be probed by the GST Department.A division bench of Justices Prathiba M. Singh and Shail Jain observed,“Section 132 of the CGST Act, 2017 provides for certain offences which the GST Department can take cognizance of. However, the allegation here is that the...

Curtain Glass Affixed To Building Not Removable, Hence Not Liable To Central Excise Duty: CESTAT

The New Delhi Bench of Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has stated that curtain glass/ structural glazing affixed to building not removable, hence not liable to central excise duty. Justice Dilip Gupta (President) and P.V. Subba Rao (Technical Member) were addressing the issue of whether the curtain glass fixed by the assessee in the form of works contract...

Supreme Court Directs DGFT & CBIC To Update Tech Systems To Ensure Genuine Exporters Don't Lose Benefits Over Clerical Errors

The Supreme Court observed that an exporter cannot be denied legitimate entitlements under the government's incentive schemes merely because of an inadvertent clerical error that was later corrected through statutory processes. Holding thus, a bench of Justices Aravind Kumar and NV Anjaria ruled in favour of an exporter who was denied a claim for benefits under the Merchandise Exports from...

'Mere Prospect Of Filing Review Not Grounds To Hold Seized Goods': Delhi High Court Orders Customs To Release Woman's Gold Jewellery

The Delhi High Court has granted relief to a Muslim woman whose gold bangles were seized by the Customs Department on return from Mecca and were withheld despite an order of the Adjudicating Authority, directing release.A division bench of Justices Prathiba M. Singh and Shail Jain observed that merely because the Department plans to seek a review of the order for return, as upheld by...