Indirect Tax Quarterly Digest: January - March, 2025
LIVELAW NEWS NETWORK
13 April 2025 10:00 AM IST
SUPREME COURTSupreme Court Sets Aside Excise Duty Demand On Oil Marketing Companies For Inter-Supply Of Petroleum ProductsCase Title: Bharat Petroleum Corporation Ltd. versus Commissioner of Central Excise Nashik Commissionerate (and connected matters)Case no.: CIVIL APPEAL NO. 5642 OF 2009In a significant relief for Oil Marketing Companies (OMCs), the Supreme Court ruled (Jan. 20) that...
SUPREME COURT
Case Title: Bharat Petroleum Corporation Ltd. versus Commissioner of Central Excise Nashik Commissionerate (and connected matters)
Case no.: CIVIL APPEAL NO. 5642 OF 2009
In a significant relief for Oil Marketing Companies (OMCs), the Supreme Court ruled (Jan. 20) that prices under the MoU for inter-supply of petroleum products, designed to ensure smooth nationwide distribution, do not constitute "transaction value" and are exempt from excise duty due to their non-commercial nature.
The Court emphasised that the inter-supply arrangement was not solely price-driven but aimed at facilitating seamless distribution, rendering it ineligible for excise duty.
Case Name: THE STATE OF MAHARASHTRA & ORS. V. PRISM CEMENT LIMITED & ANR.
Case no.: CIVIL APPEAL NO.13928 OF 2015
The Supreme Court yesterday (on February 12) held that though after the amendment of Section 8(5) of the Central Sales Tax Act, the State Government's right to grant exemption from tax has ceased to exist, the amendment is prospective. Thus, it would not apply to the cases where an absolute exemption has already been granted.
The amended Act nowhere stipulates that rights previously accrued stand nullified or all previous exemptions stand cancelled or revoked., the Bench of Justices P.S. Narasimha and Pankaj Mithal said.
Benefit Of Input Tax Credit Can't Be Reduced Without Statutory Sanction : Supreme Court
Case Title – State of Punjab & Ors. v. Trishala Alloys Pvt. Ltd.
Case no. – Civil Appeal No. 2212 of 2024
The Supreme Court recently held that Rule 21(8) of the Punjab Value Added Tax Rules, 2005, which was notified on January 25, 2014, could not be applied to transactions before April 1, 2014, as the enabling amendment to Section 13 of the parent statute, the Punjab Value Added Tax Act, 2005, was effective from that date.
This means businesses that bought goods at a higher tax rate before this date are not subject to the limitation imposed by Rule 21(8) when claiming ITC, even if the tax rate was later lowered.
Case Name: M/S HCC-SEW-MEIL-AAG JV v. ASSISTANT COMMISSIONER OF STATE TAX & ORS.
Case no.: Petition for Special Leave to Appeal (C) No.4240/2025
The Supreme Court is to decide whether the time limit for adjudicating show cause notice and passing an order can be extended by the issuance of notifications under Section 168-A of the GST Act. This provision empowers the Government to issue notification for extending the time limit prescribed under the Act which cannot be complied with due to force majeure.
“The issue that falls for the consideration of this Court is whether the time limit for adjudication of show cause notice and passing order under Section 73 of the GST Act and SGST Act (Telangana GST Act) for financial year 2019-2020 could have been extended by issuing the Notifications in question under Section 168-A of the GST Act.,” remarked the Bench of Justices J.B. Pardiwala and R. Mahadevan.
BNSS/CrPC Provisions On Rights Of Arrested Persons Applicable To GST & Customs Acts : Supreme Court
Case Title: Radhika Agarwal v. Union of India and Ors.
Case no.: W.P.(Crl.) No. 336/2018 (and connected matters)
The Supreme Court on Thursday(February 27) delivered a significant ruling on the powers of arrest under the Goods and Services Tax Act and the Customs Act.
The Court held that the provisions of the Code of Criminal Procedure (now Bharatiya Nagarik Suraksha Sanhita) on the rights of accused persons are equally applicable to the arrests made both under the Customs Act and the GST Act.
Case Title: Radhika Agarwal v. Union of India and Ors.
Case no.: W.P.(Crl.) No. 336/2018 (and connected matters)
The Supreme Court on Thursday (February 27) observed that there was some merit in the allegation that tax officials coerce assesses to pay the Goods and Services Tax with the threat of arrest. This observation was made by the Court on the basis of data.
The Court said that if any person is feeling coerced to pay GST, they can approach the writ court for refund of the tax paid by them under coercion. The Court also said that the officers who indulge in such coercion must be dealt with departmentally.
Case Title: Radhika Agarwal v. Union of India and Ors.
Case no.: W.P.(Crl.) No. 336/2018 (and connected matters)
The Supreme Court has overruled its previous decisions which held that anticipatory bail applications were not maintainable with respect to offences under the Goods and Services Tax Act.
A three-judge bench comprising Chief Justice of India Sanjiv Khanna, Justice MM Sundresh and Justice Bela Trivedi overruled the two-judge bench judgments in State of Gujarat v. Choodamani Parmeshwaran Iyer and Another and Bharat Bhushan v. Director General of GST Intelligence, Nagpur Zonal Unit Through Its Investigating officer which held that a person summoned under the GST Act cannot file anticipatory bail application and that the only remedy was to file a writ petition under Article 226 of the Constitution.
Case Title: Radhika Agarwal v. Union of India and Ors.
Case no.: W.P.(Crl.) No. 336/2018 (and connected matters)
An arrest under the Goods and Services Act cannot be carried out merely on the basis of suspicion, the Supreme Court stated. Such an arrest cannot be carried out merely to investigate if a cognizable and non-bailable offence has been committed.
The Court held that the arrest must proceed on the belief supported by reasons relying on material that the conditions specified in sub-section (5) of Section 132 are satisfied. This means that there has to be a satisfaction that a cognizable and non-bailable offence has been committed.
Case Title: Radhika Agarwal v. Union of India and Ors.
Case no.: W.P.(Crl.) No. 336/2018 (and connected matters)
Dealing with a challenge to penal provisions of the Customs Act, the Supreme Court today observed that 'customs officers' are not 'police officers' and that they must satisfy a higher threshold of "reasons to believe" before arresting an accused.
A bench of CJI Sanjiv Khanna and Justices MM Sundresh, Bela M Trivedi made the observation while delivering verdict in a batch of 279 petitions challenging the penal provisions in the Customs Act, CGST/SGST Act, etc. as non-compatible with the CrPC and the Constitution.
Supreme Court Upholds Constitutionality Of GST Act Provisions On Arrest & Summons
Case Title: Radhika Agarwal v. Union of India and Ors.
Case no.: W.P.(Crl.) No. 336/2018 (and connected matters)
The Supreme Court has upheld the Constitutional validity of Sections 69 and 70 of the Goods and Services Tax Act, which provide for the power to arrest and the power to summon. The Constitutionality of these provisions were challenged on the ground that the Parliament lacked the legislative competence to enact them.
The petitioners argued that Article 246-A of the Constitution, while conferring legislative powers on Parliament and State Legislatures to levy and collect GST, does not explicitly authorize the violations thereof to be made criminal offences. Referring to Entry 93 of List I to the Seventh Schedule, it was submitted that the Parliament can enact criminal provisions only for the matters in List I. It was further argued that the power to summon, arrest and prosecute are not ancillary and incidental to the power of levying GST and therefore, are beyond the legislative competence of the Parliament under Article 246-A of the Constitution.
Case title: COMMISSIONER, COMMERCIAL TAX
Case no.: U. P. LUCKNOW vs. M/S SAMSUNG (INDIA) ELECTRONICS PVT. LTD.| Diary No. - 20066/2021
The Supreme Court recently upheld the decision of the Allahabad High Court which observed that the charger sold with a cell phone under the MRP cannot be taxed separately under the UP VAT Act 2008.
The bench of Justice BV Nagarathna and Justice SC Sharma was hearing a challenge to the order of the Allahabad High Court which held that a mobile charger contained in a composite package with the cell phone cannot be taxed separately under Entry 28 Part B Schedule II U.P. VAT Act 2008.
Case title : CENTRAL BOARD OF INDIRECT TAXES AND CUSTOMS v. M/S ABERDARE TECHNOLOGIES PRIVATE LIMITED & ORS.
Case no.: SPECIAL LEAVE PETITION (CIVIL) Diary No. 6332/2025
The Supreme Court recently underscored the need for the Central Board of Indirect Taxes and Customs to fix realistic timelines for correcting bonafide errors by the assesses in forms when filing GST returns.
The bench of CJI Sanjiv Khanna and Justice Sanjay Kumar was hearing a challenge to the Bombay High Court order which allowed an assesee to rectify its form GSTR-1 after missing the deadline under S. 39(9) of the CGST Act. The order was challenged by the Central Board of Indirect Taxes and Customs (CBIC).
Case title: THE UNION OF INDIA & ORS. v. BRIJ SYSTEMS LTD & ORS.
Case no.: SPECIAL LEAVE PETITION (CIVIL) Diary No. 6334/2025
The Supreme Court recently issued notice to the Central Board of Indirect Taxes and Customs (CBIC) over the recurrent issue of not allowing rectification of bonafide errors made after the lapse of prescribed deadlines under the CGST Act.
The bench of CJI Sanjiv Khanna and Justices Sanjay Kumar and KV Viswanathan was hearing a challenge by the Union against the decision of the Bombay High Court which allowed the rectification of bonafide errors by the assessee in GSTR-1 Form despite missing the deadline under S. 39(9) of the CGST Act 2017. Here the assessee wanted to rectify the returns filed for Financial Year 2017-2018 in Form GSTR-1. The application to rectify was rejected on the ground that the time to rectify had ended.
Case Title: GASTRADE INTERNATIONAL VERSUS COMMISSIONER OF CUSTOMS, KANDLA
In a key decision, the Supreme Court today overturned the confiscation of imported goods labelled as "Base Oil SN 50," which customs authorities had classified as High-Speed Diesel (HSD), which only the State entities can import.
The Court found that the Customs Department failed to provide conclusive evidence proving the goods were High-Speed Diesel (HSD), due to inadequate laboratory testing and conflicting expert opinions.
Supreme Court Issues Notice In Challenge To West Bengal Taxes On Entry Of Goods Act
Case Title – Samsung India Electronics Pvt. Ltd. v. State of West Bengal & Ors.
Case no. – Petition for Special Leave to Appeal (C) No.7295/2025
The Supreme Court is set to examine the constitutional validity of the West Bengal Taxes on Entry of Goods into the Local Areas Act, 2012, as amended by the West Bengal Finance Act, 2017, along with related Rules and notifications.
A bench of Justice JB Pardiwala and Justice R Mahadevan recently issued notice returnable on April 22, 2025 in a batch of petitions challenging the constitutional validity of the Act. The Finance Act amended various provisions of the Entry Tax Act with retrospective effect.
HIGH COURTS
Allahabad HC
Case Title: M/S Akriti Food Industry Llp v. State Of UP And 3 Others
Case no.: [WRIT TAX No. - 2070 of 2024]
While directing that the order under Section 73 of the Goods and Service Tax Act, 2017 uploaded in the “Additional Notices and Tabs” on the GST portal be treated as the show cause notice, the Allahabad High Court observed,
“If in a decision making procedure adopted by the authority is de hors the provisions of the act or rules framed thereunder, it is liable to be rendered as flawed one.”
Case Title:- M/S Gurunanak Arecanut Traders v. Commercial Tax And Another
Case no.: WRIT TAX No. - 1177 of 2022
The Allahabad High Court has held that the intention to evade tax is established by the fact that the goods in transit were not accompanied by e-way bill and the goods taxable at 18% were taxed only at 5%.
The Court held that after 2018, it was mandatory for the assesee to download e-way bill with goods in transit. “It is mandatory on the part of the seller to download the e-way bill once the goods are put in transit. Subsequent downloading of e-way bill would not absolve the liability under the Act.”
Case Title: M/S Jaya Traders Through Its Proprietor Mr. Vishwanath Tiwari v. Additional Commissioner Grade-2 And Another
Case no.: WRIT TAX No. - 1022 of 2021
The Allahabad High Court has held that proceedings under section 129 of the GST Act are summary proceedings where the burden to prove the actual physical movement of goods is on the assesee transporting the goods. It further held that authorities have the power to seize goods on grounds of undervaluation.
Justice Piyush Agrawal held, “Under the taxing statute, in the original proceeding or in the summary proceeding, the primary burden is to be discharged by the assessee by bringing on record the cogent material. The burden of proof is shifting to the department only in the re-assessment proceeding or subsequent proceeding not being the original proceeding. In other words, the assessee in the original proceeding is duty bound to bring the material on record in support of its claim but in the subsequent proceeding i.e. re-assessment proceedings, the burden shifts on the revenue.”
Andhra Pradesh HC
Case Title: Sterling And Wilson Private Limited v. The Joint Commissioner and Others
Case Number: WRIT PETITION NO: 20096/2020
The Andhra Pradesh High Court stated that the supply of solar generating power station is a composite supply and it would not amount to a works contract. Also, it is a moveable property and attracted 5% GST.
The Division Bench of Justices R Raghunandan Rao and Maheswara Rao Kuncheam observed that “a 'works contract' is also a composite supply. However, there could be a 'composite supply', which does not fall within the ambit of 'works contract'….. The distinction between 'works contract' and a 'composite supply' would be whether the end product handed over to the contractee, is moveable or immoveable property.”
Case title: M/s. Mohan Spintex India Limited v. Commercial Tax Officer and Others
Case no.: WRIT PETITION NOs: 7158/2018,10587/2016, 2514/2020, 6480/2020, 6597/2020, 3111/2021, 40351/2022, 40354/2022, 23960/2023 & 29854 of 2024
A Division Bench of the Andhra Pradesh High Court has placed a matter regarding the interpretation of Rule 12(10) of the Central Sale Tax (R&T) Rules before the Chief Justice for reference to a Full Bench.
The question that arose before the coordinate bench was whether akin to Form C (Form of Declaration) and F (Form of declaration to be issued by the transferee); Form H (Certificate of Export that relieves from payment of VAT/CST) can also be filed after the sales tax assessment proceedings have been completed.
Case title: M/s. The Cotton Corporation Of India v. Assistant Commissioner St Auditfac and Others
Case no.: WRIT PETITION NO: 1463/2025
The Andhra Pradesh High Court has held that the time permit set out under 73(2) of the AP GST Act for issuance of show cause notice in relation to alleged short payment of tax, etc. is mandatory in nature.
A division bench of Justices R Raghunandan Rao and Harinath N. added that any violation of that time period cannot be condoned and would render the show cause notice otiose.
Case title: Chakkas Enterprises vs. The Chief Commissioner Of State Taxes and Others
Case no.: W.P.NO: 30501/2023 & W.P.No. 16819/2024
The Andhra Pradesh High Court has held that pleadings relating to suppression of material facts, in an assessment order are the sine qua non for invoking section 21(5); by way of which limitation for filing an assessment order is extended to 6 years from 4 years.
"There is nowhere any mention of suppression of facts, much less, wilful suppression of facts, resulting in wilful evasion of tax, which is the sine qua non, for invoking Section 21(5) of the Act. In such circumstances, the provisions of Section 21(5) of the Act would not be applicable and the period of limitation would be four years, as set out under Section 21(4) of the Act," held Justice R. Raghunandan Rao and Justice Harinath N.
Case Title: Tirumala Balaji Marbles And Granites v. The Assistant Commissioner St and Others
Case Number: WRIT PETITION NO: 1200/2025
The Andhra Pradesh High Court stated that GST registration can't be refused merely because the assessee belongs to another State.
“Though the apprehension of the respondents may not be misplaced, it would not mean that registration can be refused on a ground, which is not available under the Statute or the Rules. There do not appear to be any restriction for persons outside the State to come into the State of Andhra Pradesh and seek registration under the APGST Act,” stated the Division Bench of Justices R Raghunandan Rao and Harinath N.
Delay Of Two Days In Issuing GST Notice Can't Be Condoned: Andhra Pradesh High Court
Case Title: M/s The Cotton Corporation of India v. Assistant Commissioner (ST) (Audit) (FAC)
Case Number: W.P.No.1463 of 2025
The Andhra Pradesh High Court stated that delay of two days in issuing the GST notice cannot be condoned.
The Division Bench of Justices R. Raghunandan Rao and Harinath N. observed that “the time permit set out under 73(2) of the Act is mandatory and any violation of that time period cannot be condoned, and would render the show cause notice otiose.”
Case Title: Sri Durga Granites v. The Deputy Assistant Commissioner and Others
Case Number: W.P.Nos.3480 & 6504 of 2020
The Andhra Pradesh High Court stated that a notice under Rule 142(1)(A) of CGST Rules must be issued before issuing proper show cause notice.
The Division Bench of Justices R. Raghunandan Rao and K Manmadha Rao was addressing a case where notice under Rule-142(1)(A) of the CGST Rules was not issued to the assessees/petitioners, prior to the Orders of assessment.
Bombay HC
Case Title: M/s. Himesh Foods Pvt Ltd. v. Union of India & Ors.
Case Number: WRIT PETITION NO.718 OF 2025
The Bombay High Court is to decide whether the donuts and cakes should be classified as restaurant service or a bakery product under Goods and Services Tax. The Division Bench of Justices B.P Colabawalla and Firdosh P. Pooniwalla were addressing the issue of whether the supply of donuts falls within the ambit of restaurant services under Service Accounting Code (SAC) 9963 or should be categorized as a bakery product subject to separate tax treatment under the Goods and Services Tax (GST) framework.
If the donuts and other bakery items classified under restaurant services they would be taxed at 5% and if they classified under bakery product, they would be subjected to tax upto 18%.
Calcutta HC
Service Tax Liability Cannot Be Fastened On Implementation Of Govt Projects: Calcutta High Court
Case title: Commissioner Of Service Tax Kolkata Vs M/S Electrosteel Castings Limited
Case no.: CEXA/56/2024
The Calcutta High Court has held that construction of canals/ pipelines/ conduits to support irrigation, water supply or for sewerage disposal, when provided to the Government, cannot be exigible to service tax.
A division bench of Chief Justice TS Sivagnanam and Justice Hiranmay Bhattacharyya relied on two Circulars issued by the Central Board of Indirect Taxes and Customs to observe, “Even in case of works contract, if the nature of the activities is such that they are excluded from the purview of commercial or industrial construction services, or erection, commissioning or installation services, then they would generally remain excluded from this taxable service as well. These circulars are sufficient indication to hold that when the Government projects are being implemented, the service tax liability cannot be fastened.”
Case Title: Ashok Sharma v. The State of West Bengal & Ors.
Case Number: FMA 136 of 2025
The Calcutta High Court stated that customs department cannot seize the goods if the quantity or weight of the goods is found correct on physical verification.
The Division Bench of Chief Justice T.S Sivagnanam and Justice Hiranmay Bhattacharyya noted that the quantity or the weight of the goods, which were carried in the vehicle, has been found to be correct by the department on physical verification and there is no discrepancy.
Delhi HC
Case title: Chegg India Pvt Ltd v. UoI & Ors.
Case no.: W.P.(C) 1062/2024
The Delhi High Court has held that delay in filing certified copy of impugned order in an appeal preferred by Assessee under Section 107 of the Central Goods and Services Tax Act, 2017 would not render the appeal time-barred, if it was filed online within prescribed time. A division bench of Justices Prathiba M. Singh and Amit Sharma reasoned,
“the condition to physically file the certified copy of the impugned decision/order is not mandatory…where the certified copy was submitted with a delay, may be condoned if the online filing was completed within the prescribed limitation period. Ultimately, what is to be borne in mind is the fact that online filing was within limitation…In most Courts and Tribunals, online filing and electronic filing is now prescribed mode and the Courts are moving towards technologically advance systems. It would be retrograde to opine that online filing, which was complete in all respects, including electronic copy of the order, is not valid filing.”
Case title: Shri Balaji Enterprises v. Additional Director General New Delhi & Ors.
Case no.: W.P.(C) 11207/2023
The Delhi High Court has cautioned the Customs Authorities against keeping show-cause notices pending in call-book only to take them up after several years, leaving the assessee in lurch.
A division bench of Justices Prathiba M. Singh and Amit Sharma observed that in the absence of any “glaring impossibility”, such an approach of the authorities would not be permissible. In the case at hand, Petitioner challenged the delay of almost eight years in adjudication of the show-cause notice issued to it in 2015.
Case title: M/S G.S Industries v. Commissioner Of Central Tax And Gst, Delhi (West)
Case no.: W.P.(C) 13149/2024
The Delhi High Court has made it clear that a Commissioner under the Central Goods and Services Tax Act 2017 cannot, in purported exercise of its powers under Section 107(2), sit in appeal over an order passed by the Appellate Authority.
A division bench of Justices Yashwant Varma and Dharmesh Sharma ruled, “The Commissioner, while seeking to review an order passed under the Act and in purported exercise of powers vested by Section 107(2), cannot possibly sit over and above an order passed by the appellate authority.”
Case title: Bonanza Enterprises v. The Assistant Commissioner Of Customs & Anr.
Case no.: W.P.(C) 7510/2024
The Delhi High Court recently called upon the Customs Department to make use of Section 153(c) of the Customs Act, 1962 which empowers it to serve notices through email. A division bench of Justices Prathiba M. Singh and Amit Sharma said such an approach will prevent delay and non-appearances, leading to expeditious disposal of matters.
“In the opinion of this Court, the provision itself makes it clear that notices can be sent by email…The Customs Department ought to in future follow a system by which in addition to notices by speed post, registered post or courier, notices are also sent on the email address which is provided on the letterhead of the Petitioner or any authorised person. This would avoid substantial delay and matters proceeding ex-parte as has happened in the present case,” it said.
Case title: Abhishek Bansal v. Income Tax Officer, Ward 58(3), Delhi
Case no.: W.P.(C) 17300/2024
The Delhi High Court has made it clear that merely producing transaction documents to establish that payments were made to an entity is not sufficient to defend the allegations of accommodation entries.
A division bench of Acting Chief Justice Vibhu Bakhru and Justice Tushar Rao Gedela observed, “The documents provided by the petitioner would establish that the payments had been made to Shri Ajay Gupta through banking channels. However, the same does not address the allegation of purchases reflected were accommodation entries…In the present case, the petitioner was required to clearly show the movement of goods to establish that the goods had in fact moved from Shri Ajay Gupta to the petitioner. However, it does not appear that any such information was provided by the petitioner to the AO.”
Case title: Amar Singh And Sons Tree Nuts LLP v. The Superintendent Of Customs, Epm, Import & Ors.
Case no.: W.P.(C) 149/2025
Based on a circular issued by the Finance Ministry, the Delhi High Court has affirmed that the Customs Department cannot encash the bank guarantee furnished by a trader, whose import/export transactions are in dispute, if the latter has made a pre-deposit with his appeal against the demand and penalty.
A division bench of Justices Prathiba M. Singh and Dharmesh Sharma observed, “A perusal of the Circular and the clauses extracted above would show that no coercive measures can be taken against the Appellant during the period when the limitation for filing of the appeal has not expired. In addition, if the pre-deposit has already been made the remaining amount cannot be recovered by encashment of the bank guarantee.”
Case title: Central Electricity Regulatory Commission v. The Additional Director Directorate General Of Gst Intelligence (Dggi) & Anr
Case no.: W.P.(C) 10680/2024 and connected matters
The Delhi High Court has made it clear that amounts received by the Electricity Regulatory Commissions under the heads of filing fee, tariff fee, license fee, annual registration fee and miscellaneous fee are not exigible to tax.
A division bench of Justices Yashwant Varma and Dharmesh Sharma thus allowed the petitions filed by the Central Electricity Regulatory Commission as well as the Delhi Electricity Regulatory Commission against the show cause notices issued to them by the GST Department. It observed, “We find ourselves unable to accept, affirm or even fathom the conclusion that regulation of tariff, inter-State transmission of electricity or the issuance of license would be liable to be construed as activities undertaken or functions discharged in the furtherance of business.
Case title: Qamar Jahan v. Union Of India, Represented By Secretary, Ministry Of Finance & Ors.
Case no.: W.P.(C) 198/2025
The Delhi High Court has urged the Central government as well as the Customs department to review the Baggage Rules, 2016 which regulate the amount of gold or gold jewellery that can be carried by a person travelling to India by air.
A division bench of Justices Prathiba M. Singh and Dharmesh Sharma observed, “While, there is no doubt that any illegal smuggling of gold deserves to be curbed, at the same time, bona-fidely and genuine tourists/travellers, including people from Indian Origin such as the OCI Cardholders, PIOs etc., could be travelling for social engagements in India or social events such as marriages etc., with gold, which could be of a much higher value than the permissible limits.
Case title: Kamal Envirotech Pvt. Ltd. v. Commissioner Of Gst And Anr
Case no.: W.P.(C) 12142/2022
The Delhi High Court has held that Section 129 of the Central Goods & Services Tax Act, 2017 which pertains to detention, seizure and release of goods while in transit cannot be invoked for imposing penalties for minor breaches, like incomplete e-way bill.
A division bench of Justices Yashwant Varma and Harish Vaidyanathan Shankar further held that Section 129 cannot, merely by virtue of its non-obstante clause, be construed to have an overriding effect on Section 126 which interdicts tax officers from imposing any penalty for minor breaches of tax regulations or procedural requirements.
Case title: Commissioner Of Customs Air Chennai-Vii Commissionerate v. M/S. Ingram Micro India Pvt. Ltd.
Case no.: CUSAA 38/2023
Coming to the rescue of an IT distribution company, the Delhi High Court has held that the import of Wireless Access Points (WAPs), which operate on MIMO technology, are exempt from Customs duty.
In doing so, the division bench of Acting Chief Justice Vibhu Bakhru and Justice Swarana Kanta Sharma held that the word “and” used between 'MIMO and LTE Products', which are eligible for exemption under the relevant notification issued by the Centre, is disjunctive.
Case title: KBS Industries Ltd & Anr. v. The Customs Central Excise And Service Tax Settlement Commission Principal Bench New Delhi & Ors
Case no.: W.P.(C) 10505/2024
The Delhi High Court has held that an order passed by the Settlement Commission under Section 127C of the Customs Act, 1962 is in the nature of a 'settlement' and cannot be accepted by a trader only in part.
A division bench of Acting Chief Justice Vibhu Bakhru and Justice Swarana Kanta Sharma observed, “Given the nature of the order passed under Section 127C of the Act – which is in the nature of a settlement – it would not be permissible to dissect the same and accept that parts of the order which are favourable to the applicant while rejecting the other directions which are not. The order of Settlement Commission must be accepted in entirety.”
Case title: Vijay Enterprises & Anr v. The Principal Commissioner Of Customs & Anr
Case no.: W.P.(C) 5809/2024
The Delhi High Court has set aside a final order of penalty passed by the Customs Department against a paper trader for alleged undervaluation of imported goods, stating that the same was passed during pendency of challenge to the show cause notice (SCN) issued to the trader.
A division bench of Justices Prathiba M. Singh and Dharmesh Sharma observed, “passing of the impugned Order-in-Original while the impugned SCN was under challenge before this Court would amount to initiation of parallel proceedings rendering the scrutiny of the Court as infructuous.”
Case title: M/S Om Gems And Jewellery v. Deputy Commissioner Of Customs (Import) Air Cargo Complex Nscbi Airport & Ors.
Case no.: W.P.(C) 6218/2024
The Delhi High Court has made it clear that once a court of law directs the Customs Department to release the bank guarantee furnished by a trader, the Department cannot turn around and say that the amount will be adjusted towards the final demand order.
A division bench of Justices Prathiba M. Singh and Dharmesh Sharma observed, “the Division Bench judgment had to be complied with and the Customs Department could not hold back compliance thereof by directing adjustment in the final order. Such a course of action would not be permissible.”
Case title: Anjali Pandey v. Union Of India And Ors
Case no.: W.P.(C) 10482/2024
The Delhi High Court has held that foreign nationals coming to India need not declare to the Customs Department their gold jewellery which they are carrying for bonafide personal use.
A division bench of Justices Prathiba M. Singh and Dharmesh Sharma further held that the Customs Department must make a distinction between 'jewellery' and 'personal jewellery', while seizing items for violation of the Baggage Rules, 2016 which are framed under the Customs Act, 1962.
Case title: The Pr. Commissioner Of Income Tax - International Taxation -3 v. Samsung Electronics Co. Ltd.
Case no.: ITA 1029/2018
The Delhi High Court has held that Samsung India Electronics Pvt. Ltd (SIEL), a wholly owned subsidiary of South Korea-based Samsung Electronics Co. is not its 'Permanent Establishment' (PE) in India, hence not exigible to tax here.
A division bench of Justices Yashwant Varma and Harish Vaidyanathan Shankar agreed with ITAT's findings that the secondment of employees by Samsung Korea was merely with the objective of facilitating the activities of SIEL, not its own.
Case title: Grid Solutions OY (Ltd) v. Assistant Commissioner Of Income Tax International Taxation & Anr.
Case no.: W.P.(C) 1196/2022
The Delhi High Court has held that whether an entity is a Permanent Establishment (PE) of a foreign company or not is a “fact-specific” issue which must be examined separately for different tax periods.
A division bench of Justices Yashwant Varma and Harish Vaidyanathan Shankar observed, “The position of a PE being a facts-specific issue and thus liable to be examined against the backdrop of what obtained in a particular tax period…”
Case title: Principal Commissioner Of Income Tax – 1, New Delhi v. DCM Shriram Ltd.
Case no: ITA 566/2023
The Delhi High Court has held that the rate at which power is supplied by the State Electricity Board (SEB) or the Power Distribution Companies is an appropriate metric for determining market price of electricity.
A division bench of Acting Chief Justice Vibhu Bakhru and Justice Swarana Kanta Sharma further held that rate at which electricity is sold on the Indian Energy Exchange (IEX) platform is not a 'comparable' and should not be considered to determine market value of the power supplied by the Assessee to its industrial units.
Case title: M/S Vishal Video And Appliances Pvt Ltd v. Commissioner Of Customs Acc(Import)
Case no.: CUSAA 9/2025
The Delhi High Court has asked the Customs Department, the Central GST Department, the Directorate of Revenue Intelligence (DRI), Directorate of General GST Intelligence (DGGI) to make sure that counsel representing them on advance service are instructed properly.
A bench of Justices Prathiba M. Singh and Dharmesh Sharma ordered the Commissioner of Customs to prepare an SOP as to the manner in which the Department shall ensure that instructions are given to the nominated Counsels in the matter when advance copies are served.
Case title: The Commissioner Of Income Tax - International Taxation -1 v. Adobe Systems Software Ireland Ltd
Case no.: ITA 474/2023
The Delhi High Court has upheld an order of the Income Tax Appellate Tribunal to the effect that Adobe Systems India Pvt. Ltd is not a dependent agent permanent establishment (DAPE) of Adobe Systems Software Ireland Ltd.
In doing so, a division bench of Justices Yashwant Varma and Harish Vaidyanathan Shankar affirmed that no further attribution of profit can be made as Adobe India was remunerated at arm's length.
Case title: Rocktek Infra Services Pvt. Ltd. v. Principal Commissioner Of Customs (Import)
Case no.: W.P.(C) 12489/2024
The Delhi High Court has held that the imposition and severity of conditions imposed by the Customs Department for permitting provisional release of seized goods is “discretionary” in nature.
In doing so, a division bench of Justices Prathiba M. Singh and Dharmesh Sharma scaled down the alleged onerous condition imposed on an importer, for executing a Bank Guarantee of 130% of the deferential duty.
Case title: Sushil Aggarwal v. Principal Commissioner Of Customs and connected matter
Case no.: CUSAA 35/2025
The Delhi High Court has made it clear that a person facing charges under the Customs Act, 1962 does not have an unfettered right under Section 138B, to cross-examine the informant or person making incriminatory statements. Section 138(B) of the Customs Act of 1962 deals with the admissibility of statements made during customs proceedings.
A division bench of Justices Prathiba M. Singh and Dharmesh Sharma relied on Kanungo & Co. v. Collector of Customs, Calcutta and Others (1983) where a Coordinate bench of the High Court observed that if any information is received from a statutory authority and an adjudicating process is initiated, there is nothing in law which compels the information provider to be involved in the judicial proceedings or warrant him/her for cross examination.
Case title: M/S Addichem Speciallity LLP v. Special Commissioner I, Department Of Trade And Taxes And Anr and batch
Case no.: W.P.(C) 14279/2024
The Delhi High Court has held that since Section 107 of the Central Goods and Services Tax Act, 2017 prescribes an “independent regime” to determine the limitation period for filing statutory appeals, the provision for condonation of delay under Section 5 of the Limitation Act stands excluded.
A division bench of Justices Yashwant Varma and Dharmesh Sharma observed, “The facility to seek condonation can be resorted provided the legislation does not construct an independent regime with respect to an appeal being preferred. Once it is found that the legislation incorporates a provision which creates a special period of limitation and proscribes the same being entertained after a terminal date, the general provisions of the Limitation Act would cease to apply.”
Case title: Aon Consulting Pvt. Ltd. (Successor Entity Of Aon Services (I) Pvt. Ltd. v. Principal Commissioner Of Income Tax – 1 And Ors.
Case no.: ITA 244/2024
The Delhi High Court has made it clear that a dispute with respect to arm's length price in a transfer pricing can be resolved under Mutual Agreement Procedure (MAP) only by consent and negotiations between contracting parties.
A division bench of Justices Vibhu Bakhru and Swarana Kanta Sharma observed that such a resolution cannot be imposed in a contested case, where there is no consensus.
Case title: Amit Kumar v. The Commissioner Of Customs
Case no.: W.P.(C) 15973/2024
The Delhi High Court recently ordered the Customs authorities to release a traveller's gold worth over ₹14 lakh and other branded articles like iPhone, PlayStation, etc. over the authority's failure to issue him a show cause notice.
The Department on the other hand contended that an oral SCN was given to the Petitioner, who also signed an undertaking that he does not want a written SCN or even a personal hearing. The High Court observed that such signing of a standard form of waiver by the Petitioner would not be in compliance with the principles of natural justice, inasmuch as, the waiver under Section 124 has to be “conscious” and “informed”.
Case title: Commissioner Of Income Tax v. Benetton India Pvt. Ltd.
Case no.: ITA 472/2018
The Delhi High Court has held that a Transfer Pricing Officer cannot compute the arm's length price of an assessee's international transactions as nil, merely because despite the services availed from such transactions, the assessee incurred a loss in business.
A division bench of Justices Vibhu Bakhru and Swarana Kanta Sharma observed that the TPO cannot weigh the ALP on the basis of financial benefits or commercial expediency of the transactions in question.
Case title: Commissioner Of Income Tax v. Benetton India Pvt. Ltd.
Case no.: ITA 472/2018
The Delhi High Court has made it clear that the role of a Transfer Pricing Officer is to conduct a transfer pricing analysis and determine the arm's length price of an assessee's international transaction and the TPO cannot act as an Assessing Officer to probe the legitimacy of such transactions.
A division bench of Justices Vibhu Bakhru and Swarana Kanta Sharma observed, “It is necessary to bear in mind that there is a distinction between the functions of a TPO and an AO. The TPO is required to conduct a transfer pricing analysis to determine the ALP. It is not the TPO's function to determine whether, in fact, there is any service from which the Assessee derived any benefit. The question whether any expenditure has been incurred by the Assessee for earning revenue is a matter, which is required to be determined by the AO.”
Case title: M/S Aims Retail Services Private Limited v. Union Of India & Ors. and batch
Case no.: W.P.(C) 9461/2023 and batch
The Delhi High Court has held that merely unlocking/ activating a new mobile phone by disabling the “regional lock” which is put by original equipment manufacturers to restrict usage to a specific geographical location, does not make the mobile phone a “used” good.
A division bench of Justices Prathiba M. Singh and Dharmesh Sharma thus held that exporters of such mobile phones will also be eligible to claim duty drawbacks.
Case title: Gor Sharian v. The Commissioner Of Customs
Case no.: W.P.(C) 1807/2025
The Delhi High Court has held that the Customs Department must ensure that the intimation of disposal of detained or confiscated property is given to the concerned party both via email as also the mobile number.
A division bench of Justices Prathiba M. Singh and Dharmesh Sharma reasoned this will ensure that a party who succeeded in Court or Tribunal against the detention of the property is not deprived of their properties.
Case title: Principal Commissioner, Central Tax Commissionerate, Gst Delhi West v. M/S Alkarma
Case no.: SERTA 3/2025
The Delhi High Court has made it clear that if a show cause notice is quashed by a higher authority on one issue, it doesn't mean that other issues raised in the SCN are not liable to be adjudicated.
The observation was made by the bench of Justices Prathiba M. Singh and Dharmesh Sharma in a case where the SCN was quashed by another division bench of the High Court so far as the issue relating to duty on free supply of materials was concerned. However, the CESTAT proceeded to discharge the entire SCN.
Case title: Mohamed Shamiuddeen v. Commissioner Of Customs & Ors.
Case no.: W.P.(C) 2030/2025
The Delhi High Court has reiterated that authorities making a traveller waive show cause notice before confiscation of goods, etc. under Section 124 of the Customs Act 1962, on a mere proforma, is not lawful.
A division bench of Justices Prathiba M. Singh and Dharmesh Sharma thus granted relief to a permanent resident of Hong Kong, whose Rolex wristwatch valued at ₹30,29,400/- was confiscated by the Customs Department at the airport.
Case title: The Commissioner Of Income Tax - International Taxation -2 v. Nokia Network OY
Case no.: ITA 785/2019
The Delhi High Court has held that a subsidiary or an entity which is substantially controlled by another entity in a contracting State does not by itself become a Permanent Establishment (PE) of that other entity.
Citing Article 5 of the India-Finland Double Taxation Treaty, a division bench of Justices Yashwant Varma and Ravinder Dudeja observed, “There is no general presumption in law that a subsidiary can never be acknowledged to be a PE. This since Article 5(8) itself merely states that the said factor alone shall not be determinative of the PE question. The covenant thus clearly obliges us to evaluate the facts based on the other provisions comprised in Article 5 of the DTAA.”
Case title: Daljeet Singh Gill v. Union Of India & Ors.
Case no.: W.P.(C) 4644/2021
The Delhi High Court recently granted relief to a trader whose application for availing the Sabka Vishwas (Legacy Dispute Resolution) Scheme, 2019 over service tax dues was declined by the GST Department “without providing any reason”.
A division bench of Justices Prathiba M. Singh and Dharmesh Sharma observed that in the absence of proof of service of notice upon the trader, prior to his making an application for dispute resolution, it cannot be presumed that any investigation was pending against him.
Case title: MR Makhinder Chopra Commissioner Of Customs New Delhi
Case no.: W.P.(C) 2049/2025
The Delhi High Court has held that the Baggage Rules 2016 which are framed under the Customs Act 1962 to ensure that every passenger entering India passes through a Customs check has limited application on foreign tourists coming to India.
While holding so, a division bench of Justices Prathiba M. Singh and Dharmesh Sharma ordered the release of a Russian national's gold chain, valued at about Rs. 7 lakhs, which was confiscated by the Customs Department when he arrived in India.
Case title: Interglobe Aviation Ltd v. Principal Commissioner Of Customs Acc (Import) New Custom House New Delhi & Ors. and batch
Case no.: W.P.(C) 934/2023
In big relief to Indigo airlines, the Delhi High Court has held that an additional levy of Integrated Goods and Services Tax (IGST) and cess under Section 3(7) of the Customs Tariff Act, 1975 on re-import of aircraft parts that were repaired abroad, is unconstitutional.
A division bench of Justice Yashwant Varma and Ravinder Dudeja observed that “additional duty even after the transaction has been subjected to the imposition of a tax treating it to be a supply of service would be clearly unconstitutional and cannot be sustained.”
Case title: Tata Teleservices Limited v. The Commissioner CGST Delhi East & Anr.
Case no.: W.P.(C) 1142/2025
The Delhi High Court has asked the Customs Excise & Service Tax Appellate Tribunal to decide whether levy of tax on the services purchased by a prepaid subscriber of Tata Teleservices, using the existing mobile balance on which tax was already paid, would amount to double taxation.
Considering that the matter would involve factual evaluation of the manner in which services are provided and charged by the company, a division bench of Justices Prathiba M. Singh and Rajneesh Kumar Gupta relegated it to the Tribunal.
Case title: M/S DD Interiors v. Commissioner Of Service Tax & Anr.
Case no.: W.P.(C) 877/2025
The Delhi High Court has held that merely because a pre-deposit prescribed under Section 35F of the Central Excise Act, 1944, for preferring an appeal is made in the wrong account, that too when the integrated portal might not have been fully functional, cannot result in rejection of appeal on the ground of defects.
A division bench of Justices Prathiba M. Singh and Rajneesh Kumar Gupta was dealing with a petitioner preferred by M/s DD Interiors, challenging the return of its appeal by CESTAT, stating that since the deposit was in a wrong account, credit cannot be given.
Case title: GE Grid (Switzerland) GMBH v. Assistant Commissioner Of Income Tax & Anr.
Case no.: W.P.(C) 1294/2022
The Delhi High Court has held that the existence of a foreign entity's Permanent Establishment (PE) in India is required to be determined in law for each year separately on the basis of the scope, extent, nature and duration of activities in each year.
A division bench of Justices Yashwant Varma and Ravinder Dudeja made the observation while dealing with a Swiss company's case, which was aggrieved by various reassessment notices issued for AYs 2013-18 for alleged escapement of income generated by its alleged PE, namely, GE T&D India Ltd.
Case title: Sentec India Company Private Limited v. Assistant Commissioner Of Customs, Delhi & Ors.
Case no.: W.P.(C) 868/2025
The Delhi High Court has held that an Extra Duty Deposit (EDD) does not constitute a payment in the nature of customs duty under the scope of Section 27 of the Customs Act, 1962 and thus, the period of limitation for seeking a refund of customs duty under the provision would not apply qua EDD. Section 27 deals with a person/entity's claim for a refund of Customs duty in certain circumstances.
A division bench of Justices Prathiba M. Singh and Dharmesh Sharma observed, “A perusal of Section 27 would show that the same deals with refund of customs duty. It is abundantly clear that EDD is not in the nature of customs duty. The deposit of the EDD was itself to secure any customs duty which may have been later on found to be payable, due to the allegation of underdeclaration. However, when the said allegation has been disproved and the Department has taken a view that there was no under-declaration, the substratum of the deposit of EDD itself no longer exists.”
Case title: Rahul Vattamparambil Remesh v. Union Of India & Ors
Case no.: W.P.(C) 2690/2025
The Delhi High Court recently expressed its displeasure at the frequent non-appearance of government counsel in customs related matters. A division bench comprising Justices Prathiba M. Singh and Rajneesh Kumar Gupta observed,
“It is noticed that in a large number of customs matters, the Counsels are either not appearing or appear without proper instructions. In cases of nonappearance, the Court is compelled to request Standing Counsels present in Court to accept notice. This reflects a clear lack of coordination between the Department and the learned panel of Standing Counsels. Such a practice is highly undesirable and leads to gross wastage of judicial time.”
Case title: M/S Kashish Optics Ltd. v. The Commissioner, CGST Delhi West & Ors.
Case no.: W.P.(C) 7741/2022
The Delhi High Court has held that an assessee must be issued notice within six months of seizure of its goods under Section 67 of the Central Goods and Services Tax Act 2017, failing which the goods must be returned by the Department.
A division bench of Justices Yashwant Varma and Harish Vaidyanathan Shankar further held that the period of seizure cannot be extended under Section 67)7) for a further six-month period without giving notice to the accused.
Case title: PCIT-1, New Delhi v. Beam Global Spirits & Wine (India) Pvt.Ltd.
Case no.: ITA 155/2022
The Delhi High Court has held that before the Income Tax Department commences transfer pricing benchmarking analysis of an assessee's international transactions, the very existence of such 'international transaction' must be determined.
A division bench of Justices Yashwant Varma and Harish Vaidyanathan Shankar, while dealing with the case of an Indian entity producing liquor for brands like Jim Beam, observed, “the commencement of a benchmarking analysis would have to necessarily be preceded by the Revenue identifying the existence of a transaction as defined and which undoubtedly constitutes a sine qua non. This clearly flows from the plain text of Section 92B(1), which proceeds to define an “international transaction” as being a “transaction” between two or more AEs.”
Case title: JSD Traders LLP v. Additional Commissioner, GST
Case no.: W.P.(C) 2608/2025
The Delhi High Court has made it clear that an order cancelling GST registration of a trader with retrospective effect will not sustain unless the show cause notice preceding such decision reflects both the reasons and the authority's intent for retrospective cancellation.
A division bench of Justices Yashwant Varma and Harish Vaidyanathan Shankar observed, “in the absence of reasons having been assigned in the original SCN in support of a proposed retrospective cancellation as well as a failure to place the petitioner on prior notice of such an intent clearly invalidates the impugned action.”
Case title: M/S Ismartu India Pvt. Ltd. v. Union Of India And Others
Case no.: W.P.(C) 15199/2023
The Delhi High Court has held that merely because there is disagreement between the Customs department and a trader regarding the classification of the latter's goods for the purpose of levying duty, it does not mean that the trader has indulged in 'suppression of facts' from the Department.
A division bench of Justices Yashwant Varma and Harish Vaidyanathan Shankar observed, “Based on the set of facts as they presented themselves, both parties are entitled to make contesting claims. However, a genuine disagreement, as in the present case, of the classification of the goods cannot possibly be elevated to 'suppression'.”
Case title: M/S Ismartu India Pvt. Ltd. v. Union Of India And Others
Case no.: W.P.(C) 15199/2023
The Delhi High Court has held that notices under Section 28(1) and Section 28(4) of the Customs Act 1962 operate in different scenarios and even by an exaggerated stretch, cannot possibly be said to be interchangeably issued.
Section 28 relates to recovery of duties not levied or not paid or short-levied or short-paid or erroneously refunded. It provides for two separate types of notices: One under Section 28(4) where elements of collusion, wilful mis-statement and suppression are made out in assessee' conduct. The other under Section 28(1) where the elements of Section 28(4) of the Act are absent. “Meaning thereby that it is only in those circumstances where Section 28(4) of the Act is not attracted that a Notice under Section 28(1) of the Act is issued,” a division bench of Justices Yashwant Varma and Harish Vaidyanathan Shankar observed.
Case title: Amirhossein Alizadeh v. The Commissioner Of Customs & Ors.
Case no.: W.P.(C) 3002/2025
The Delhi High Court ordered the Customs Department to release the silver-coated gold chains of an Iranian national, which were confiscated on his arrival in India almost three years ago.
A division bench of Justices Prathiba M. Singh and Rajneesh Kumar Gupta noted that the prescribed period of six months for issuance of a Show Cause Notice had already elapsed. Further, no personal hearing was granted to the Petitioner, who sought the release of his jewelry, and no final order was served on him till date.
Case title: M/S B Braun Medical India Pvt Ltd v. Union Of India & Ors.
Case no.: W.P.(C) 114/2025
The Delhi High Court recently came to the rescue of a Company engaged in the sale of various pharmaceutical products and medical devices, holding that it could not be denied Input Tax Credit on purchases merely because its supplier had mentioned a wrong GST number on the invoices.
In the facts of the case, a division bench of Justices Prathiba M. Singh and Rajneesh Kumar Gupta observed, “The only basis for rejecting the ITC is the mention of the Bombay office GSTN instead of the Delhi office GSTN. Substantial loss would be caused to the Petitioner if the credit is not granted for such a small error on behalf of the supplier.”
Case title: Gopika Vennankot Govind v. Union Of India & Ors.
Case no.: W.P.(C) 2784/2025
The Delhi High Court has ordered the Customs Department to release the personal jewellery of a minor from UAE who had come to India to attend a relative's wedding.
A division bench of Justices Prathiba M. Singh and Rajneesh Kumar Gupta passed the direction after perusing a photograph, depicting that she used to wear the said pieces of jewelry since childhood. It observed, “This Court has now pronounced several orders/judgments, following various judgments of the Supreme Court and this Court, wherein it has been held clearly that if the gold items seized are personal jewellery, the same would not be liable to be confiscated.”
Case title: Muhammad Nazim v. Commissioner Of Customs & Ors.
Case no.: W.P.(C) 3042/2025
The Delhi High Court has asked the Customs Department to scrupulously comply with its “repeated” direction to serve notices, orders on an assessee under the Customs Act, 1962 via email.
Traditionally, correspondence related to any violation of the Act is made via post. However, with advent of technology and to avoid delays, Court had in Bonanza Enterprises vs. The Assistant Commissioner of Customs & Anr. (2024) called upon the Department to send notices via email, in addition to service by speed post, registered post or courier.
Case title: Mea Ame Pvt. Ltd. v. Deputy Commissioner, Customs (Preventive), New Delhi
Case no.: W.P.(C) 3200/2025
The Delhi High Court is set to examine the extent of jurisdiction which can be exercised by the Customs Department under the Prohibition of Electronic Cigarettes (Production, Manufacture, Import, Transport, Sale, Distribution, Storage and Advertisement) Act, 2019.
A division bench of Justices Prathiba M. Singh and Rajneesh Kumar Gupta have sought the authority's response on a private company's petition challenging seizure of its imported “empty atomizer devices” purportedly to be put to use for smoking de-addiction.
Case title: M/S Saha Traders Zonal Joint Director General Of Foreign Trade(Cla)
Case no.: W.P.(C) 7295/2021
The Delhi High Court recently quashed a Directorate General of Foreign Trade (DGFT) communication cancelling the license issued to a trader involved in import and export of goods, citing almost fifteen years delay in culminating the show cause notice.
Justice Sachin Datta cited Vos Technologies India Pvt. Ltd. v. The Principal Additional Director General & Anr. (2024) where the Delhi High Court had emphasized that matters which have the potential of casting financial liabilities of penal consequences, cannot be kept pending for years and decades together.
Case title: Pr. Commissioner Of Income Tax-1, Delhi v. D Light Energy P. Ltd.
Case no.: ITA 53/2025
The Delhi High Court has made it clear that where the distributor of an imported product makes no value addition to it before sale, Resale Price Method is the most appropriate method to determine the arm's length price in relation to its business with an Associated Enterprise.
A division bench of Chief Justice Devendra Kumar Upadhyaya and Justice Tushar Rao Gedela thus dismissed the appeal preferred by Revenue against a Solar products distributor, which imported goods from an Associated Enterprise (AE) for resale.
Case title: Amal Krishna v. Union Of India & Ors.
Case no.: W.P.(C) 2957/2025
The Delhi High Court has held that a non-resident Indian is fully entitled to the benefit provided to an “eligible passenger” under the Baggage Rules, 2016 for the purposes of Customs on arrival to India.
Eligible passenger was defined by the Finance Ministry via a Notification dated June 30, 2017, to mean a passenger of Indian origin or a passenger holding a valid Indian passport, coming to India after not less than six months of stay abroad. Baggage Rules allow duty-free clearance of certain items, including used household articles, professional equipment, and personal effects to eligible passengers.
Case title: Jai Durga Rubberised Fabrics India Pvt. Ltd. v. Commissioner Of Customs
Case no.: W.P.(C) 530/2025
The Delhi High Court recently took a critical view of the Customs Excise And Service Tax Appellate Tribunal at New Delhi for repeatedly passing contradictory orders in an appeal, which should have been dismissed for want of pecuniary jurisdiction.
“This order reveals a complete comedy of error…The petition reveals an unfortunate situation wherein the CESTAT while intending to correct an error in its initial order…continued to make repeated errors resulting in the impugned order and the present challenge,” a division bench of Justices Prathiba M. Singh and Rajneesh Kumar Gupta remarked at the outset.
Delhi High Court Orders Customs To Release 'Name Engraved' Gold Jewellery Of Indian Tourist
Case title: Sai Kiran Goud Tirupathi v. Commissioner Of Customs
Case no.: W.P.(C) 3347/2025
The Delhi High Court has ordered the Customs Department to release the gold kada of an Indian tourist, which was seized upon his return to the country after a visit to the Republic of Mali.
Petitioner had argued that the jewellery was a personal effect, as evident from engraving of his first name on the same, and was thus exempted from duty. A division bench of Justices Prathiba M. Singh and Rajneesh Kumar Gupta ordered that the jewellery be released within four weeks.
Case title: Paras Products v. Commissioner Central Gst, Delhi North (and batch)
Case no.: W.P.(C) 6235/2023 and batch
The Delhi High Court has held that Section 11A of the Central Excise Act 1944, which empowers taxing authorities to recover duties not levied/ short-levied or short-paid, is pari materia to corresponding provisions of the Customs Act, the Finance Act and the CGST Act.
A division bench of Justices Yashwant Varma and Harish Vaidyanathan Shankar thus held that the High Court's judgment in M/S VOS Technologies India Pvt. Ltd. v. The Principal Additional Director General & Anr. (2024) is applicable to the said provision.
Case title: Husky Injection Molding Systems Shanghai Ltd & Ors. v. Union Of India & Ors.
Case no.: W.P.(C) 3431/2025
The Delhi High Court has held that writ petitions challenging the determination of anti-dumping duties by Directorate General of Trade Remedies are maintainable however, since the determination is a time bound process, Courts will not readily interfere in the process.
A division bench of Justices Prathiba M. Singh and Rajneesh Kumar Gupta observed, "while the writ petitions cannot be held to be not maintainable at the stage of the disclosure statement, the Court would be hesitant and reluctant in exercising jurisdiction as determination of anti-dumping duty is a time bound process which is to be exercised by the designated authority."
Case title: Mohammad Arham v. Commissioner Of Customs
Case no.: W.P.(C) 2760/2025
The Delhi High Court has held that detention of goods by the Customs Department cannot continue beyond a period of one year, if a show cause notice was not issued to the assessee within such period.
A division bench of Justices Prathiba M. Singh and Rajneesh Kumar Gupta cited Section 110 of the Customs Act, 1962 which prescribes a period of six months. Further, subject to complying with certain formalities, a further extension for a period of six months for the Department to issue a show cause notice can be given in terms of Section 110(5).
Case title: Rakesh Kumar Gupta v. DRI
Case no.: W.P.(C) 11518/2024
The Delhi High Court has called upon the Customs Department to clone the required data from seized electronic devices of persons allegedly involved in smuggling and other violations under the Act, instead of retaining such devices throughout prosecutions.
A division bench of Justices Prathiba M. Singh and Rajneesh Kumar Gupta observed that such a practice will not only ensure that the Department does not lose the data due to the seized device getting outdated but it will also provide make the data readily accessible to the investigation officers.
Case title: The Commissioner Of Central Tax, CGST Delhi East v. M/S Simplex Infrastructure Limited
Case no.: CEAC 3/2024
The Delhi High Court has upheld an order of the Customs Excise and Service Tax Appellate Tribunal interdicting the GST Department from invoking extended period of limitation for recovery action against a sub-contractor who did not pay service tax amid confusion as to his liability to pay the same.
A division bench of Justices Prathiba M. Singh and Rajneesh Kumar Gupta upheld the CESTAT order which held that bonafide belief of the sub-contractor that he was not required to discharge service tax liability cannot be ruled out amid prevailing controversy.
Case title: Vedanta Limited v. CBIC
Case no.: W.P.(C) 3675/2025
The Delhi High Court has asked the Central Board of Indirect Taxes and Customs to pass a “reasoned order” on Indian multinational mining company- Vedanata's plea claiming duty drawbacks on clean energy cess, paid between the year 2010-17.
The plea was rejected by CBIC through a “cryptic order” citing limitation despite its own Instruction clearing air on eligibility of drawbacks on clean energy cess, with retrospective benefit to pending cases, a division bench of Justices Prathiba M. Singh and Rajneesh Kumar Gupta noted.
Case title: Backbone Overseas v. Assistant Commissioner Of Customs, Foreign Post Office , New Delhi And Anr.
Case no.: W.P.(C) 3711/2025
The Delhi High Court has criticised the Customs Department for acting against its own Circular for expeditious clearance of goods, by detaining the export goods of a trader for over two months.
A division bench of Justices Prathiba M. Singh and Rajneesh Kumar Gupta observed, “This position is completely unacceptable to the Court…consignment cannot be held up in this manner…expedited steps are not taken for clearing of goods.”
Gauhati HC
Case title: Shri Shambhu Prasad v. The State Of Assam And Ors
Case no.: WP(C)/6807/2024
The Gauhati HIgh Court has held that the Show Cause Notice issued to an assessee under Section 73 of the Central Goods and Services Tax Act, 2017, the Statement issued along with the SCN as well as an Order passed under Section 73(9) must mandatorily be signed by the Proper Officer.
Justice Soumitra Saikia observed, “As it is the statutory mandate that it is only the Proper Officer who has the authority to issue Show Cause Notice and the Statement and pass the order, the authentication in the Show Cause Notice, Statement as well as the Order by the Proper Officer is a must and failure to do so, makes the Show Cause Notice, Statement and Order ineffective and redundant.”
Case title: Dharmendra Agarwal v. The Union Of India And 2 Ors.
Case no.: WP(C)/6963/2024
The Gauhati High Court has held that Section 69 of the Central Goods and Services Tax Act 2017, which confers power to arrest on a Commissioner under the Act, requires the authority to not only record 'reasons to believe' that an assessee committed the specified offence but also specify the necessity to arrest.
While dealing with a writ petition challenging Petitioner's arrest, Justice Soumitra Saikia observed, “The requirement under Sub-section (1) of Section 69 is to have “reasons to believe” that not only a person has committed any offence as specified but also as to why such person needs to be arrested.”
Case title: M/S High Tech Ecogreen Contractors LLP v. Joint Director, Directorate General Of Goods And Services Tax Inteligence (DGGI)
Case no.: WP(C)/4787/2024
The Gauhati High Court has upheld the constitutional validity of Rule 36(4) of the Central Goods and Services Tax/Assam Goods and Services Tax Rules, 2017. The provision stipulates documentary requirements and conditions for a registered person claiming input tax credit (ITC).
A division bench of Chief Justice Vijay Bishnoi and Justice N. Unni Krishnan Nair observed that the provision was enacted based on powers derived from Section 16 of the CGST Act and the general rule-making powers under Section 164, not from the unenforced Section 43A.
Carbonated Fruit Drinks Qualify As Fruit Beverages, Taxable At 12% GST: Gauhati High Court
Case Title: X'S Beverage CO. v. The State of Assam
Case Number: W.P(C) NO. 5347/2022
The Gauhati High Court stated that carbonated fruit drinks qualify as fruit beverages and are taxable at 12% GST.
The Bench of Justice Soumitra Saikia opined that “where the subject product contains soluble solids and fruit content as per the report of the State Food Laboratory, it cannot be said to be akin to water, mineral water or aerated water. Mere presence of carbon dioxide or carbonated water cannot be treated to classify the subject items under water or carbonated water. The classifications by the petitioner of the items under the subject head Fruit Pulp or Fruit Based Drink appear to be correct.”
Gujarat HC
Case title: Infodesk India Pvt. Limited Versus The Union Of India & Ors
Case no.: R/SPECIAL CIVIL APPLICATION NO. 25609 of 2022
The Gujarat High Court has made it clear that where a subsidiary company provides goods or services to its parent company in its independent capacity, it cannot be said that such services fall under 'intermediary service' under Section 2(13) of the Integrated Goods and Service Tax Act, 2017.
The division bench of Justices Bhargav D. Karia and DN Ray observed, “it is apparent that the petitioner is required to assist the US entity in carrying on the business of providing information and consultancy in business of software development and for that purpose, the petitioner is required to set up consultations and meetings between globally based experts and globally based clients and to participate in any business of consultants, agents, sub-agents, liaison agents/liaison sub-agents for its parent company and foreign clients for such activities. The petitioner is also to provide advisory services for expansion of business, marketing, advertisement, publicity, personnel accounting to its parent company. Therefore, on conjoint reading of the scope of services to be provided by the petitioner, it cannot be said that the petitioner is only to work as an agent or a broker between parent company and its customers without supplying any goods or services on its own account.”
Case Title: M/S SHREENATHJI EXTRUCTION v/s UNION OF INDIA AND
Case no.: R/SCA/17685 of 2024
The Gujarat High Court recently issued notice on a plea challenging the validity of Section 75(2) CGST Act wherein if the concerned court or authority concludes that show cause notice issued under Section 74(1) to a person for tax evasion is unsustainable as the charges of fraud, wilful misstatement or suppression of facts aren't established, then the department shall determine the tax payable as if the notice was issued under Section 73(1).
For context, Section 73(1) states that where it appears to the proper officer that any tax has not been paid or short paid or erroneously refunded, or where input tax credit has been wrongly availed or utilised for "any reason, other than the reason of fraud or any wilful-misstatement or suppression of facts to evade tax", he shall serve notice on the person chargeable with such a tax, requiring him to show cause as to why he should not pay the amount specified in the notice along with interest payable thereon under section 50 and a penalty leviable under the provisions of this Act or the rules made thereunder.
Himachal Pradesh HC
Case title: M/s Bhushan Power & Steel Ltd. v. Assistant Excise & Taxation Commissioner and another
Case no.: Civil Revision No. 267 of 2017
The Himachal Pradesh High Court has held that the penalty provision couched in Section 16(7) of the HP Value Added Tax Act, 2005 cannot be invoked until the statutory authority is satisfied regarding the applicability of Section 16(4) of the Act.
Section 16(4) requires a registered dealer to pay the full amount of tax due from him into a Government Treasury before it furnishes the return. Failure to do so attracts a penalty under Section 16(7).
Jharkhand HC
Case Title: Satya Prakash Singh v. The State of Jharkhand
Case Number: A.B.A. No. 2096 of 2024
The Jharkhand High Court stated that an advocate is not liable to verify fake documents provided by a client for registration of a firm to evade tax.
The bench of Justice Anil Kumar Choudhary was dealing with a case where an advocate had moved a petition for anticipatory bail in a case registered under sections 406/420/468/471/120B of the Indian Penal Code and under Section 132 (1) (b)/131 (1) (e)/132 (1) (1) of Jharkhand Goods and Services Tax (JGST).
Case Title: M/s. Castrol India Limited v. The State of Jharkhand
Case Number: W.P.(T) No. 7098 of 2023
The Jharkhand High Court stated that retaining balance amount by department after the tax demand is reduced is violative of Article 14 & Article 265 of the constitution.
The Division Bench of Chief Justice M.S. Ramachandra Rao and Justice Deepak Roshan observed that the department cannot retain the amounts deposited by the assessee pursuant to condition imposed by the appellate authority for stay of the assessment order and contend that there is no necessity to refund the same.
Case Title: Limra Traders v. The State of Jharkhand
Case Number: W.P.(T) No. 6027 of 2024
The Jharkhand High Court directed the state tax authorities to follow due procedure while passing adjudication orders.
The Division Bench of Chief Justice Ramachandra Rao and Justice Deepak Roshan stated that “despite directions issued by the Court, it appears that State Tax authorities are continuing to conduct adjudication proceedings in utter disregard to the mandatory provisions of the Act and in violation of the principles of natural justice.”
Karnataka HC
Case Title: M/s Vigneshwara Transport Company v. Additional Commissioner of Central Tax Bengaluru North-West Commissionerate
Case Number: WRIT PETITION NO.18305 OF 2023 (T-RES)
The Karnataka High Court held that when investigation is substantially completed by improper officer, show cause notice issued by proper officer u/s 74 of CGST Act is liable to be set aside.
The Bench of Justice M.I. Arun observed that “…substantial part of the investigation including search and seizure of the materials has been done by respondent no.2 who is not the proper Officer and under the circumstances, the said investigation, inspection, search and seizure in respect of the assessee herein has to be considered ab initio void…”
Case Title: The State Of Karnataka v. Tractor And Farm Equipment Limited
Case Number: STRP NO.26 OF 2023
The Karnataka High Court while laying down vital guidelines on Input Tax Credit stated that if the Assessee during the course of reassessment proceedings makes a claim for Input Tax Credit, the same cannot be disallowed only on the ground that the claim of the Assessee is disadvantageous to the State Exchequer.
The Division Bench of Justices Krishna S Dixit and G. Basavaraja observed that ordinarily, the claim for Input Tax Credit has to be made in the Return or Revised Return only. A claim otherwise is an exception and bona fide of the same has to be demonstrated.
Case Title: B G Parmeshwara AND Bangalore Development Authority & Others
Case No: WRIT PETITION No.51001 OF 2019 (BDA) C/W WRIT PETITION No.7028 OF 2022
The Karnataka High Court has reiterated that if the transaction of booking a residential house is entered into before the completion of construction and the consideration was paid (partly or fully) before issuance of completion certificate, the same would amount to supply of services requiring payment of the service tax (GST) by the purchaser.
Justice M G S Kamal recently dismissed a batch of petitions filed by B g Parmeshwara and others which had challenged the endorsement issued by Bangalore Development Authority (BDA) calling upon the petitioners to pay amount towards the service Tax (GST) under the provisions of the Central Goods and Services Tax Act, 2017, before registration of the apartment.
Kerala HC
Case Title: Shish Jewels Private Limited v. The Intelligence Officer
Case Number: WP(C) NO. 40450 OF 2023
The Kerala High Court has held that interim release of goods can be ordered pending adjudication of notice under section 130 GST Act in lieu of fine.
The Bench of Justice Murali Purushothaman observed that “…the adjudication can be proceeded even if the goods are released pending adjudication. Even if confiscation is ordered, there is an option to the owner of the goods to pay fine in lieu of confiscation…”
GST Act | Notification Not Needed For Cross-Empowerment Of State Officials : Kerala High Court
Case : Pinnacle Vehicles and Services Pvt Ltd v. Joint Commissioner
Case no.: W.P(C).NO.25724 OF 2024
In a significant judgment having a wide impact on several pending cases, the Kerala High Court on Wednesday (January 15) ruled that separate notification is not necessary for the cross-empowerment of State officials under the Goods and Services Tax Act.
A division bench comprising Justice Dr AK Jayasankaran Nambiar and Justice S Easwaran delivered this significant judgment while answering a reference made to it by a single bench. It endorsed the prima facie view expressed by the single bench (Justice P Gopinath) that notification was not necessary for cross-empowerement.
Case Title: The Kerala Film Exhibitors Federation v. State of Kerala
Case Number: WA NO. 2300 OF 2015
The Kerala High Court has stated that cess levied on cinema tickets under Section 3C Of Kerala Local Authorities Entertainment Tax Act is constitutionally Valid.
“Cess can also mean a tax levied for a special purpose or as an increment to the existing tax and, in given circumstances, a fee. In the case at hand, entertainment tax is already levied under the Act of 1961 and the Cess under Section 3C is an additional levy. Thus, the contention of the Assessee that under Entry 62 of List II of Schedule VII to the Constitution of India, only tax can be levied, and Cess cannot be levied is without merit” stated the Division Bench of Chief Justice Nitin Jamdar and Justice S. Manu.
Case Title: Centre C Edtech Private Limited v. The Intelligence Officer
Case Number: WA NO. 1934 OF 2024
The Kerala High Court stated that illegal cash seizure by GST Department and handing over to Income Tax Department is illegal under Section 132A of the Income Tax Act.
The Division Bench of Justices A.K. Jyasankaran Nambiar and Easwaran S. held that “Cash amount seized from the premises of the assessee cannot be retained either by the GST Department of the State or the Income Tax Department prior to a finalisation of respective proceedings initiated by them.”
Case Title: Joint Commissioner (Intelligence and Enforcement) v. M/s Lakshmi Mobile Accessories
Case Number: W.A.NO.258 OF 2025
The Kerala High Court stated that consolidated show cause notice involving multiple assessment years can be issued when common period of adjudication exists.
“Issuing a consolidated show cause notice covering various financial/assessment years would cause prejudice to an assessee who would not get the full period envisaged for adjudication under the Statute, if that period is circumscribed by the limitation period prescribed in relation to an earlier financial/assessment year” stated the Division Bench of Justices A.K. Jayasankaran Nambiar and Easwaran S.
Case Title: The Deputy Commissioner (Intelligence) v. Minimol Sabu
Case Number: WA NO. 238 OF 2025
The Kerala High Court stated that Article 226 cannot be invoked against a show cause notice issued under Section 74 of the CGST Act at preliminary stage.
“Article 226 of the Constitution of India is not meant to be used to break the resistance of the Revenue in this fashion. In exercise of such jurisdiction, the High Court is required to refrain from issuing directions to the authorities under the taxation statute to decide issues in stages or on a preliminary basis,” stated the Division Bench of Justices A.K. Jayasankaran Nambiar and Easwaran S.
Case Title: M/s Ramanattu Motor Corp. v. State of Kerala
Case Number: WP(C) NO. 23872 OF 2024
The Kerala High Court has explained the difference between 'non-service of notice' and 'not noticing or lack of knowledge of service of notice'.
“Lack of knowledge of service of notice can amount to a violation of principles of natural justice only in certain limited circumstances. When lack of knowledge is attributable to the default of the sender of the notice, then 'not noticing or lack of knowledge of service of notice' can amount to a negation of the principles of natural justice,” observed Justice Bechu Kurian Thomas.
Case Title: Managing Partner, Vee Tee Logistics v. Joint Regional Transport Officer
Case Number: WA NO. 2129 OF 2024
The Kerala High Court stated that vehicles registered as goods carriage vehicles, could not be classified under a different head for the purposes of demanding one-time tax under the second proviso to Section 3(1) of the Kerala Motor Vehicles Taxation Act.
The Division Bench of Justices A.K. Jayasankaran Nambiar and Easwaran S. stated that “the department cannot alter their stand and classify the vehicles separately for the purposes of levy of one- time tax to the Kerala Motor Vehicles Taxation Act.”
Case Title: Keraleeyam Ayurvedic Resort v. The Commercial Tax Officer (Luxury Tax)
Case Number: WA NO. 709 OF 2018
The Kerala High Court stated that ayurvedic treatment is only incidental to facilities provided by assessee in a resort, hence liable to be taxed.
“the main activities of the assessee as per the brochures produced before the assessing officer, are canoeing, motor boat cruises, houseboat stay, trekking, Alleppey beach visit, coir factory visit, elephant ride, Kathakali, temple dance, dramas, Mohiniyattam and Kalaripayattu. Therefore, the main activities of the assessee are not running the hospital but providing a resort and other facilities and the Ayurvedic treatment is only incidental to that of the facilities” observed the Division Bench of Justices A.K. Jayasankaran Nambiar and Easwaran S.
Case Title: Sajeer A v. State of Kerala
Case Number: OT.REV NO. 3 OF 2024
The Kerala High Court stated that Joint Commissioner has jurisdiction to initiate proceedings under Section 56 of the KVAT Act against assessment order passed pursuant to remand.
The Division Bench of Justices A.K. Jayasankaran Nambiar and Easwaran S. observed that “when the fresh assessment order was passed consequence to the remand, the original assessment order ceased to exist in law and thereafter the only assessment order that survived for the purposes of exercise of the power of revisions under Section 56 was the subsequent order passed by the Assessing Authority.”
Case Title: The State of Kerala v. M/s Chowdhary Rubber & Chemicals Pvt. Ltd.
Case Number: O.T.REV. NO.106 OF 2021
The Kerala High Court stated that revenue cannot re-assess time barred assessment under KVAT Act based on CAG report. The Division Bench of Justices A.Y. Jayasankaran Nambiar and Easwaran S. observed,
“there cannot be an exercise of power under Section 25A of the KVAT Act beyond the period of limitation prescribed under Section 25(1) of the KVAT Act. In fact the provisions of Section 25A allude to this aspect when it refers to the satisfaction to be recorded by the Assessing Officer of the “lawfulness” of an audit objection.”
Customs Department Can't Invoke Expired Bank Guarantees: Kerala High Court
Case Title: M/s Itma Hotels India Pvt. Ltd. v. The Additional Commissioner of Customs
Case Number: WA NO. 2183 OF 2023
The Kerala High Court stated that invocation of the expired bank guarantees by Customs Department is not permissible under law.
The Division Bench of Justices A.K. Jayasankaran Nambiar and Easwaran S. were addressing the issue of whether the customs department can invoke expired bank guarantees.
Madras HC
What Constitutes Valid Service Of Notice U/S 169 Of CGST Act? Madras High Court Clarifies
Case Title: Udumalpet Sarvodaya Sangham v. The Authority
Case Number: W.P.(MD)Nos.26481
The Madras High Court interpreted Section 169 of Central Goods and Services Tax Act, 2017 and stated that Section 169 mandates a notice in person or by registered post or to the registered e-mail ID alternatively and on a failure or impracticability of adopting any of the aforesaid modes, then the State can, in addition, make a publication of such notices/ summons/ orders in the portal/ newspaper through the concerned officials.
The Bench of Justice K. Kumaresh Babu observed that “when the Statute had also mandated issuance of notice in person/ registered post/ e-mail, etc., the Rules cannot be limited to only serving it through electronic modes.”
GST Registration And Payment Of Tax After Inspection Is Not Voluntary Conduct: Madras High Court
Case Title: M/s.Annai Angammal Arakkattalai v. The Joint Commissioner or GST (Appeals), Coimbatore
Case Number: W.P.(MD)No.28502 of 2022
The Madras High Court stated that GST registration and payment of tax after inspection is not a voluntary conduct.
The Bench of Justice K. Kumaresh Babu observed that “there is a deliberate attempt to evade payment of tax by not registering himself under the Act and also issuing receipts as donation to the Trust. Only after the inspection they have agreed to pay the tax by registering themselves. This conduct cannot be said to be a voluntary conduct.”
Case Title: Thanushika v The Principal Commissioner of Customs (Chennai)
Case No: W.P.No.5005 of 2024
The Madras High Court has recently criticised a Seizing Officer attached to the office of the Principal Commissioner of Customs for seizing a gold “Mangalya Thali Kodi” (necklace) from a Srilankan citizen alleging that the same was against the Baggage Rules 2016.
The court observed that the quantity of jewellery worn by the petitioner was normal for a newly married person and that the officers, while conducting searches should respect the customs of every religion in the country. The court also noted that it was unfair on the part of the officer to remove the petitioner's thali and such act was intolerable.
Case Title: Tvl. Chennais Pet v. The State Tax Officer
Case Number: W.P.(MD)No.3995 of 2025
The Madras High Court stated that appeal can't be dismissed due to procedural delay, when assessee has complied statutory requirements including pre-deposit.
“The appeal should not be dismissed merely due to a procedural delay, especially when the petitioner has made an effort to comply with the statutory requirements, including the pre-deposit of 10% of the tax liability and additional payments towards the disputed tax amount” stated the bench of Justice Vivek Kumar Singh.
Case Title: M/s.United Breweries Limited v. The Joint Commissioner of GST and Central Excise (Appeals II)
Case No: W.P.No.14080 of 2021
The Madras High Court has recently observed that the supply of holographic stickers or excise labels by the Prohibition and Excise Department which is to be affixed on manufactured and bottles alcoholic liquor is a supply of “goods” simplicitor and not a supply of “service”.
The court thus ruled that such supply of holographic stickers would not be taxable under the GST enactments. Justice C Saravanan noted that the holographic sticker was a label and therefore a good within the meaning of Section 2(52) of the CGST Act and the supply of label by the department had to be construed as a supply of “goods” and not a supply of “service”.
Case Title: Gillette Diversified Operations vs. Joint Commissioner of GST and Central Excise
Case Number: W.P.Nos.6524, 6527, 6531, 6537 and 6541 of 2022
Finding that the refund claim was filed within two years from the “relevant date” as defined in Explanation 2(a) to Section 54(14) of CGST Act , the Madras High Court recently clarified that a refund claim cannot be denied on the basis of retrospective operation of the Proviso to Rule 90(3) pf the CGST Rules.
The High Court clarified this upon finding that the refund claims filed in the portal on Sep 21, 2018, Oct 09, 2018 and Oct 10, 2018, were within two years from the date of exports made during July 2017, August 2017 and September 2017, in time in terms of Circular No. 79/53/2018-GST.
Telangana HC
Case title: M/s.Brunda Infra Pvt. Limited and Others. vs. The Additional Commissioner of Central Tax
Case no.: WRIT PETITION Nos.1154 OF 2024
The Telangana High Court has upheld the validity of a 2023 notification, issued by the GST Department post COVID-19 pandemic, for extending the limitation period prescribed for issuing notices under Section 73 of the Central Goods and Services Tax Act, 2017. A division bench of Justice Sujoy Paul and Dr. Justice G. Radha Rani also upheld a notification issued in 2022 for similar purpose. In doing so, it observed,
“In the manner statute i.e., Section 168A is worded, there is no cavil of doubt that the Law makers intended to give it a broader umbrella to bring within its shadow, such actions which could not be completed or complied with, due to force majeure…The COVID-19 Pandemic created extraordinary difficulties which could not have been anticipated, measured and solved with mathematical precision. Thus, hair-splitting in many aspects must be eschewed…While dealing with such an extraordinary crisis, Government's action must be viewed in a broad perspective.”
Case title: M/s Diwakar Road Lines vs. The Union Of India and Others
Case no.: WRIT PETITION NO: 19920/2020
A division bench of the Andhra Pradesh High Court has dismissed a writ petition filed by M/s Diwakar Road Lines challenging the rejection of an application to compound all previous service tax by way of a one-time settlement.
The bench held that even though the statute does not prescribe for the rejection of any application, the committee may reject an application when the documents relied upon are ingenuine.
Case Title: M/s Bigleap Technologies and Solutions Pvt. Ltd. and others v. The State of Telangana and others
Case Number: WRIT PETITION No. 21101 of 2024
The Telangana High Court stated that the show cause notices and the orders which are not pregnant with the signature of the Proper Officer cannot sustain judicial scrutiny.
The Division Bench of Acting Chief Justice Sujoy Paul and Justice Renuka Yara observed that “since Rule and prescribed Forms mandate requirement of signature of Proper Officer, its violation makes the notice/order vulnerable. Any contrary view taken by Court about DRC-07 having no signature without considering the above rule and prescribed Form must be held as per incuriam.”
TRIBUNALS
Case Title: TC Global India Pvt. Ltd. v. Additional Director General, DGCEI, New Delhi
Case Number: Service Tax Appeal No. 51355 of 2017
The New Delhi Bench of Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has stated that service tax is not payable on commission received from foreign universities for promoting and publicizing business in India.
The Bench of Dr. Rachna Gupta (Judicial Member) and Hemambika R. Priya (Technical Member) has observed that “the assessee is held not liable to pay service tax with reference to foreign Consultancy Income i.e. the income received from foreign universities for promoting and publicizing their business in India.”
Case title: M/s. Samudera Shipping Line (India) Pvt. Ltd. v. Commissioner of Customs (Port)
Case no.: Customs Appeal No. 75641 of 2021
Stating that goods wrongly loaded by the steamer agent could not have been exported without clearance by the Customs officials themselves, the Customs, Excise & Service Tax Appellate Tribunal at Kolkata set aside the penalty imposed under Section 114 of the Customs Act, 1962.
Noting that the goods had been successfully exported and remittance against it had been received, the bench comprising Judicial Member R. Muralidhar and Technical Member K. Anpazhakan said the same could not have been possible without clearance by the Customs Department. Thus, the penalty imposed on Appellant would be bad in law.
Excise Duty Not Payable On 'Bagasse' Which Emerges As A Waste Product During Sugar Crushing: CESTAT
Case Title: M/s. Sakthi Sugars Ltd. v. Commissioner of GST and Central Excise
Case Number: Excise Appeal Nos. 40479 to 40482 of 2015
The Chennai Bench of Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has stated that excise duty is not payable on the Bagasse emerged as waste product during sugar crushing.
The Bench of Ajayan T.V. (Judicial Member) and Vasa Seshagiri Rao (Technical Member) has observed that Bagasse emerged only as a waste product during crushing of sugarcane during the manufacturing process and though marketable, duty could not be imposed on it as there was no manufacturing activity involved.
Case Title: Hyundai Motor India Ltd. v. Commissioner of Customs
Case Number: Customs Appeal No.40501 of 2024
The Chennai Bench of Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has stated that investigation report is not an appealable order and there is no statutory right for a hearing at the stage of preparation of investigation report.
The Bench of P. Dinesha (Judicial Member) and M. Ajit Kumar (Technical Member) has observed that “the assessee has also not demonstrated any real prejudice caused to them by the investigation report. Merely being disappointed or dissatisfied is not enough”.
Seized Gold Cannot Be Confiscated Just For Having An Invalid Letter Of Approval: CESTAT
Case Title: M/s Encee International NSEZ v. Commissioner of Customs, Noida
Case Number: Customs Appeal No.70692 of 2019
The Allahabad Bench of Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has stated that seized gold cannot be confiscated just for having an invalid letter of approval.
There was a difference in the opinion between the P.K. Choudhary (Judicial Member) and Sanjiv Srivastava (Technical Member) on the issues involved in the case. Therefore, the matter was place before third member ie. S.S. Garg (Judicial Member) for determination of the same.
Case Title: M/s. Wellworth Project Developers Private Limited v. Commissioner of Commissioner of CGST
Case Number: Service Tax Appeal No. 50259 of 2024
The New Delhi Bench of Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has stated that the department cannot invoke the extended period of limitation merely because the returns were self-assessed.
The Bench of Justice Dilip Gupta (President) and P. V. Subba Rao (Technical Member) has observed that “Mere suppression of facts is not enough to invoke the extended period of limitation contemplated under the proviso to section 73(1) of the Finance Act. The suppression has to be with an intent to evade payment of service tax and for this purpose the show cause notice must specifically allege why the asseessee has suppressed facts with intent to evade payment of service tax.”
Case Title: Deepak Pandey v. Commissioner of Service Tax
Case Number: Service Appeal No. 52346 of 2018
The New Delhi Bench of Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has stated that the prescribed time limit for filing a refund application cannot be disregarded merely because the tax was collected without legal authority.
The Bench of Justices Dilip Gupta (President) and P. V. Subba Rao (Technical) has observed that “the appellant cannot be permitted to claim a refund of service tax under sub-section (1) of section 102 and at the same time contend that the condition stipulated in sub-section (3) of section 102 of the Finance Act should be ignored.”
Case Title: Executive Engineer (Workshop) M.P. Power Appellant Transmission Co. Ltd. v. Commissioner (Appeals) Central Excise Customs & CGST
Case Number: Excise Appeal No.50329 of 2021
The New Delhi Bench of Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has granted a refund along with interest, despite the absence of a statutory provision for interest under central excise laws at the relevant time.
The Bench of Binu Tamta (Judicial Member) and P.V. Subba Rao (Technical Member) has observed that “the amount collected by way of Central excise duty was illegal as the activity itself did not involve any manufacture and the same cannot be allowed to be retained by the Government.”
Case Title: M/s Secure Meters Ltd. v. Principal Commissioner of Customs (Imports)
Case Number: CUSTOMS APPEAL NO. 51041 OF 2020
The New Delhi Bench of Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has stated that imported communication modules function independently as parts of communication hubs, classifiable under CTI 8517 70 90.
The Bench of Binu Tamta (Judicial Member) and P.V. Subba Rao (Technical Member) have observed that “since the communication modules were imported, they should be classified as such. The correct classification of the communication modules is CTI 8517 70 90.”
Case Title: Rallis India Limited v. C.C.E-Bharuch
Case Number: Service Appeal No 11894 of 2016 - SM
The Ahmedabad Bench of Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has stated that the department cannot consider a refund claim unless it is specified under which notification and provision the same has been sought.
The Bench of Somesh Arora (Judicial) has observed that, “The lapse of non-filing of refund under proper notification separately for June 2013 cannot be termed as mere procedural lapse. The department cannot be expected to consider refund claim if it is not indicated to them as to under which notification and provisions same has been sought.”
Case Title: M/s Indus Towers Limited v. Commissioner of Central Excise, Central Goods and Service Tax, Gurugram
Case Number: Service Tax Appeal No. 60744 of 2023
The Chandigarh Bench of Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has stated that adjustment of refund against a confirmed demand during the pendency of an appeal amounts to coercive recovery.
The amount adjusted from the total refund sanctioned to the assessee is refundable to the assessee at the rate of 12% per annum computed from the date of deposit till the date of its refund, stated the bench.
Two Or More Bills Of Entry Or Shipping Bills Cannot Be Taken Together And Assessed: CESTAT
Case Title: M/S Disha Realcon Pvt Ltd V. Commissioner of Customs Adjudication
Case Number: Customs Appeal No. 54710 of 2023
The New Delhi Bench of Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has stated that two or more bills of entry or shipping bills cannot be taken together and assessed.
The Bench of Dilip Gupta (President) and P. V. Subba Rao (Technical) has observed that, “Two or more Bills of Entry or Shipping Bills cannot be taken together and assessed. The only exception made in the law are the Project Imports under Project Import Regulations, 1986.”
Transaction Value Is Not The Only Basis For Assessment Of Duty: CESTAT
Case Title: M/s Mittal Appliances Limited V. The Commissioner of Customs
Case Number: Customs Appeal No. 51888 of 2021
The New Delhi Bench of Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has stated that the transaction value is not the only basis for assessment of the duty.
The Bench of Dilip Gupta (President) and P. V. Subba Rao (Technical) has observed that, “transaction value is not the only basis for assessment of the duty. The Valuation Rules and Section 14 of the Act provide for rejection of transaction value. When rejecting the transaction value, the customs officer does not modify the transaction value but only rejects it as the assessable value for determination of the duty.”
Case Title: M/s. Aglowmed Ltd. V. Commissioner Central Goods and Service Tax, Dehradun
Case Number: Excise Appeal No. 51902 of 2021
The New Delhi Bench of Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has stated that mere wrong availment of exemption notification does not mean that availment was done to evade payment of central excise duty.
The Bench of Dilip Gupta (President) and P. V. Subba Rao (Technical) has observed that, “Mere wrong availment of an Exemption Notification would not lead to a conclusion that it was with an intent to evade payment of central excise duty unless the department is able to not only allege but substantiate that the said suppression was deliberate with an intent to evade payment of central excise duty.”
Case Title: M/s Prestige Polymers Pvt. Ltd. V. The Commissioner of Customs
Case Number: Customs Appeal No. 51470 of 2019
The New Delhi Bench of Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has stated that if goods imported into an SEZ are not used for the authorised operations but are sold in Domestic Tariff Area, duty has to be paid.
The Bench of Dilip Gupta (President) and P. V. Subba Rao (Technical) has observed that, “if goods imported into an SEZ are not used for the authorised operations but are sold in Domestic Tariff Area, duty has to be paid. If duty is not paid or short paid and as a result a demand has to be raised, it must be done as per the Customs Act by the jurisdictional Customs Officers.”
Case Title: Svam Toyal Packaging Industries Pvt. Ltd. v. Principal Commissioner of Customs
Case Number: Customs Appeal No.50780 Of 2021
The New Delhi Bench of Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has stated that the Customs authorities cannot deny the benefit of Customs duty exemption under the notifications governing the Advance Licensing Scheme.
The Bench of Dr. Rachna Gupta (Judicial Member) and Hemambika R. Priya (Technical Member) was addressing the issue of whether the goods imported by the assessee under AAs are permitted for duty free import under Advance Authorization Scheme.
Obligation Under CENVAT Credit Rules, 2004, Cannot Be Transferred To Recipient Of Credit: CESTAT
Case Title: Hindustan Coca-Cola Beverages Pvt Ltd V. The Commissioner of CGST & Customs
Case Number: Excise Appeal No. 85225 of 2020
The Mumbai Bench of Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has stated that the obligation under rule 3(1) of CENVAT Credit Rules, 2004 cannot be transferred to the recipient of credit under rule 7 of CENVAT Credit Rules, 2004.
The Bench of C J Mathew (Technical) has observed that, “the mechanism provided in rule 7 of CENVAT Credit Rules, 2004, governing the distribution of such credit, deems the credit so distributed to be eligible credit for the purpose of utilization. A harmonious reading of rule 3 and 4 of CENVAT Credit Rules, 2004 and the conditions prescribed in rule 7 alone would determine the extent of validity of the credit so distributed within the scheme of CENVAT Credit Rules, 2004.”
Assessee Not Eligible To Avail CENVAT Credit On Invoices Not In Their Name: CESTAT
Case Title: M/s Leel Electricals Ltd. v. Commissioner of CGST & Central Excise
Case Number: EXCISE APPEAL NO. 50277 of 2019
The New Delhi Bench of Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has stated that the assessee is not eligible to avail the CENVAT Credit on the basis of the invoices which were not in their name.
The Bench of Binu Tamta (Judicial Member) and Hemambika R. Priya (Technical Member) has observed that “it is necessary that the document contains all particulars as mentioned therein to avail the credit. The name of the consignee or service receiver on the invoice is the basic requirement for availing the CENVAT Credit.”
Case Title: M/s. Assam Gas Company Limited V. Commissioner of Central Excise & Service Tax
Case Number: Service Tax Appeal No. 75603 of 2015
The Kolkata Bench of Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has stated that the reimbursements received by the assessee cannot be considered as 'consideration' towards any taxable service.
The Bench of Ashok Jindal (President) and K. Anpazhakan (Technical) has observed that, “the service rendered by the appellant is not for any other company but to themselves. Thus, there is no service provider and service receiver relationship exists in the transaction.”
Service Tax Liability Can't Be Levied On Freight And Cartage Expenses Under GTA Services: CESTAT
Case Title: Commissioner of Service Tax - Delhi III V. M/s. Globe Civil Projects Pvt. Ltd.
Case Number: Service Tax Appeal No. 54328 of 2015
The New Delhi Bench of Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has stated that service tax liability cannot be levied on freight and cartage expenses under GTA (Good Transport Agency) services.
“The said amount/expenses/charges were not paid by the assessee directly to the transporter for transportation of any goods. Thus, the said activity cannot be covered under GTA Services, hence, no service tax liability can be levied on the aforesaid amount/expenses/charges under GTA services” stated the bench of Rachna Gupta (Judicial) and Hemambika R. Priya (Technical).
Legal & Consultancy Services Under RCM Is Liable To Service Tax: CESTAT
Case Title: Saisun Outsourcing Services Private Limited v. Commissioner of Central Goods, Service Tax, Jabalpur
Case Number: Service Tax Appeal No. 54991 Of 2023
The New Delhi Bench of Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has stated that legal & consultancy services under RCM is liable to service tax.
The Bench of Binu Tamta (Judicial Member) and Hemambika R. Priya (Technical Member) has stated that “in absence of any reply or any supporting documents, Legal fees expense incurred by the assessee are expenses towards Legal services. Accordingly, Service Tax on Legal Fee expense incurred by the assessee is upheld.”
Case Title: M/s Akanksha Global Logistics Pvt. Ltd. v. Commissioner, Customs-New Delhi
Case Number: CUSTOMS APPEAL NO. 51269 OF 2023
The New Delhi Bench of Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has stated that customs broker not responsible if client moves to new premises once verification of address is complete.
“The responsibility of the Customs Broker under Regulation 10(n) does not include keeping a continuous surveillance on the client to ensure that he continues to operate from that address and has not changed his operations. Therefore, once verification of the address is complete, if the client moves to a new premises and does not inform the authorities or does not get his documents amended, such act or omission of the client cannot be held against the Customs Broker” stated the Bench of Justice Dilip Gupta (President) and P.V. Subba Rao (Technical Member).
FOB Value Of Goods Can't Be Modified By Anyone Including Any Customs Officer: CESTAT
Case Title: JBN Apparels Pvt. Ltd. v. Commissioner of Customs, New Delhi
Case Number: CUSTOMS APPEAL NO. 50127 OF 2024
The New Delhi Bench of Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has stated that no stranger to the contract, including any Customs officer has any right to interfere with the Free on Board (FOB) value of the goods.
The Bench of Justice Dilip Gupta (President) and P.V. Subba Rao (Technical Member) has stated that “there is a privity of contract between the buyer and the seller and they alone can decide the terms of contract and in case of non-compliance by one, the other can seek to enforce it. The consideration or the transaction value cannot be modified by any stranger to the contract including any officer.”
Case Title: M/s Spain Electronics v. Commissioner (Appeals-I)
Case Number: SERVICE TAX APPEAL NO. 50585 OF 2019
The New Delhi Bench of Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has stated that installation and commissioning of goods after sale is not a “works contracts”, hence service tax is not leviable.
The Bench of Binu Tamta (Judicial Member) and P.V. Subba Rao (Technical Member) has observed that “merely because the goods were installed and commissioned after sale, the contract would not become a works contract services.”
Service Tax Is Leviable On Renting Of Immovable Property: CESTAT
Case Title: Satnam Kaur v. Commissioner of Central Excise and Service Tax
Case Number: SERVICE TAX APPEAL NO. 53769 OF 2014
The New Delhi Bench of Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has stated that service tax is leviable on renting of immovable property.
The Bench of Dr. Rachna Gupta (Judicial Member) and P.V. Subba Rao (Technical Member) has opined that unless the levy of service tax on renting of immovable property service is held to be ultra vires by any constitutional court, it will continue to be a valid levy.
Case Title: M/s Essjay Telecom and IT Services Private Limited
Case Number: SERVICE TAX APPEAL NO. 50853 OF 2024
The New Delhi Bench of Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has stated that the amount deposited as service tax, if refundable, should not be treated as pre-deposit under Section 35F of Central Excise Act, 1944.
“Section 11B provides for refund of duty or service tax. If an amount is already paid as duty or service tax, it is reckoned while computing if any further amount needs to be paid to meet the mandatory requirement of pre-deposit under section 35F. Merely because such adjustment is made, the amount paid as service tax or fine or penalty does not become pre-deposit under section 35F” stated the bench of P.V. Subba Rao (Technical Member).
No Service Tax On Services By Organizer In Respect Of Business Exhibition Held Outside India: CESTAT
Case Title: Aksh Optifibre Ltd. v. Commissioner of Central Excise & CGST, Alwar
Case Number: Service Tax Appeal No. 50810 of 2019
The New Delhi Bench of Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has stated that no service tax on services by organizer in respect of business exhibition held outside India. The Bench of Dr. Rachna Gupta (Judicial Member) and Hemambika R. Priya (Technical Member) has observed that
“…the Business Exhibition for which the appellant received services from the foreign agencies, were held outside the taxable territory. Resultantly, the Place of Provision of Services received by the appellant from the foreign service provider shall be outside the territory of India. Accordingly, appellant is not liable to pay service tax even under RCM.”
Activity Of “Chilling Of Milk” Is A Service, Leviable To Service Tax: CESTAT
Case Title: M/s. Jai Durge Ice Factory v. Commissioner of CGST & Central Excise, Udaipur
Case Number: Service Tax Appeal No. 52965 of 2018 [DB]
The New Delhi Bench of Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has stated that activity of chilling of milk is leviable to service tax.
The Bench of Binu Tamta (Judicial Member) and P.V. Subba Rao (Technical Member) has observed that “the activity of chilling of milk during the post negative period amounts to rendering 'services' as defined in section 65B (44) and is therefore, leviable to service tax.”
Case Title: M/s. Raj Kumar Jain v. Commissioner of CGST & Central Excise – Jodhpur
Case Number: Service Tax Appeal No. 54671 of 2023
The New Delhi Bench of Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has stated that the advertising agency being a pure agent is not liable to pay service tax on amount payable to media companies on behalf of their clients.
The Bench of Dilip Gupta (President) and P. V. Subba Rao (Technical) has observed that, “The assessee has conceded about their liability to pay service tax on the amount of commission received by them while rendering the advertising agency service to the print media. However, still has contested the same on the ground of limitation.”
Case Title: M/s The Indure Private Limited v. The Commissioner of Service Tax
Case Number: Service Tax Appeal No. 51192 Of 2017
The New Delhi Bench of Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has held that if an assessee fails to discharge his tax liability under the bonafide belief that tax did not need to be paid, no penalty is leviable.
The Bench of Dr. Rachna Gupta (Judicial) and Ms. Hemambika R. Priya (Technical) has observed that, “even if payment is made through CENVAT for GTA services, which is impermissible, it cannot be stated that the assessee had misstated or suppressed any information or evaded tax in as much as the details of the payment were available in the return.”
Service Tax Leviable On RIICO And RASMB For Commercial And Industrial Construction Services: CESTAT
Case Title: M/s. Gokulnath Construction Company v. Commissioner of Central Excise & Central GST, Jaipur
Case Number: Service Tax Appeal No. 53032 OF 2018
The New Delhi Bench of Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has stated that there is a service tax liability on RIICO and RASMB for commercial and industrial construction services.
The Bench of Dr. Rachna Gupta (Judicial) and Hemambika R. Priya (Technical) was addressing the issue of the tax liability of the service provider providing “Commercial and Industrial Construction Service” to the public authorities.
Amount Recovered Towards Penalty Is Not A Service, Service Tax Not Leviable: CESTAT
Case Title: M/s. AVVNL V. Principal Commissioner of CGST & Central Excise, Jaipur
Case Number: Service Tax Appeal No. 51973 of 2019
The New Delhi Bench of Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has stated that the amount recovered towards penalty is not a consideration for any activity and as a result there is no 'service'. Therefore, no service tax is leviable.
The Bench of Bintu Tamta (Technical) and P.V. Subba Rao (Technical) has observed that, “the amount recovered by the assessee towards penalty is not a consideration for any activity which has been undertaken by the assessee and as a result there is no 'service' in terms of Section 65B (44) of the Act.”
Service Tax Not Leviable On Excess Transportation Charges Recovered From Buyers: CESTAT
Case Title: M/s. Honda Motorcycle and Scooter India Pvt. Ltd. v. Commissioner of Service Tax
Case Number: Service Tax Appeal No. 51587 of 2017
The New Delhi Bench of Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has stated that service tax is not leviable on excess transportation charges recovered from the buyers.
The activity of arranging transportation of goods till the dealer's premises cannot be classified under “Business Auxiliary Service” and, therefore, no service tax is payable on transportation related expenses recovered in excess by the assessee from their buyers, stated the Bench of Binu Tamta (Judicial) and P.V. Subba Rao (Technical).
Customs Broker Cannot Be Faulted For Trusting Government-Issued Certificates: CESTAT
Case Title: Ravi Dhanwariya v. The Commissioner of Customs-New Delhi -Airport And General
Case Number: Customs Appeal No. 54889 OF 2023
The New Delhi Bench of Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has stated that when a government officer issues a certificate or registration with an address to an exporter, the Customs Broker cannot be faulted for trusting the certificates so issued.
The Tribunal opined that “If there are documents issued by the Government Officers which show that the client is functioning at the address, it would be reasonable for the Customs Broker to presume that the officer is not wrong and that the client is indeed, functioning at that address.”
Student Almanac And Teacher Planner Not Exigible To Excise Duty: CESTAT
Case Title: M/s Sona Printers Pvt. Ltd. v. The Commissioner of Central Tax, Appeal
Case Number: EXCISE APPEAL NO. 55542 OF 2023
The New Delhi Bench of Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has stated that Student Almanac and teacher planner not exigible to excise duty.
The Bench of Justice Dilip Gupta (President) and P.V. Subba Rao (Technical Member) has observed that the submission of the assessee that since Student Almanac is used only by students of a particular school, it becomes a product of printing industry cannot be accepted.
OTHER DEVELOPMENTS
Rajasthan GST Department Mandates Virtual Hearing In All Tax Matters, Issues Guidelines
The Rajasthan GST Department on 20.02.2025 issued guidelines on virtual hearing. The Guidelines have been issued in pursuance of the para 143 of the Budget Speech 2025-26 and in exercise of power conferred under Section 168 of the RGST Act, 2017.
The circular highlights that in Rajasthan, provisions have also been made for faceless scrutiny as well as carrying out of Business Audit and Enforcement pertaining to the taxpayers not just by the jurisdictional Proper Officers bit also by the officers posted in the Business Audit and Enforcement Wings. In such a scenario, it becomes increasingly difficult for the taxpayers or their authorized representative to appear in person for submission of documents or for personal hearing.