Indirect Tax Weekly Round-Up: December 29, 2025 - January 04, 2026

HIGH COURTSAndhra Pradesh HCAPVAT | Value Added Tax Not Leviable On Offshore Sales Beyond Territorial Waters: Andhra Pradesh High CourtCase Title: M/s Helix Energy Solutions Group Inc. v. The Commercial Tax OfficerCase Number: WRIT PETITION Nos.6319 & 6321 & 5089 of 2010The Andhra Pradesh High Court held that Value Added Tax (VAT) under the Andhra Pradesh Value Added Tax Act (AP VAT) cannot be levied on sales beyond 12 nautical miles, as such transactions fall outside the State's territorial jurisdiction.Justices R. Raghunandan Rao and T.C.D. Sekhar stated that neither the State Legislature nor the Central Legislature would have the power to levy tax on the sale of goods made beyond the territorial waters of India.Notification Defining Jurisdiction Does Not Automatically Empower All Officers To Invoke S. 122 CGST Act: AP High CourtCase Title: Ganpati Ispat v. Union of IndiaCase Number: WRIT PETITION NO: 31263/2025The Andhra Pradesh High Court held that a notification merely defining or fixing the territorial jurisdiction of officers cannot be construed as conferring the power to initiate penalty proceedings under Section 122 of the CGST Act.Justices R. Raghunandan Rao and T.C.D. Sekhar examined whether Notification No.2/2017-Central Tax dated 19.06.2017 conferred power on any authority or officer to initiate or conduct proceedings under Section 122 of the CGST Act.Bombay HCBombay High Court Upholds 18% Interest Levy On Delayed VAT Payment, Says Interest Levied Automatically Once Payment Is DelayedCase Title: United Spirits Ltd. v. Additional Commissioner of State Tax-II & Appellate Authority, South Goa & Ors.Case No.: Writ Petition No. 229 of 2025The Bombay High Court at Goa has dismissed a writ petition filed by United Spirits Ltd. challenging the levy of interest on delayed payment of VAT on sales of Extra Neutral Alcohol (ENA), Rectified Spirit (RS) and High Bouquet Spirit (HBS) for the financial year 2019–20.A Division Bench of Justices Bharati Dangre and Ashish S. Chavan held that interest under Section 25(4) of the Goa Value Added Tax Act, 2005 is compensatory in nature and becomes automatically payable once tax is not deposited within the prescribed time, irrespective of any claimed ambiguity on taxability.Calcutta HCNo Interest On Excise Duty Payable In Revenue-Neutral Situation Even Though Duty Demand Attained Finality: Calcutta High CourtCase Title: Commissioner of Central Excise Bolpur Commissionerate v. M/s. Steel Authority of India LimitedCase Number: CEXA 31 OF 2024The Calcutta High Court held that statutory interest under Section 11AB of the Central Excise Act is not leviable where the entire transaction is revenue-neutral and the duty paid is available as Cenvat Credit to downstream units, causing no loss to the exchequer.Justices Rajarshi Bharadwaj and Uday Kumar stated that the Tribunal has recorded a clear finding that the situation is revenue-neutral, inasmuch as the duty paid by the assessee was available as Cenvat credit to its downstream units and there is no net loss of revenue to the exchequer.GST Registration Cancellation Unsustainable When Hearing & Decision Were Made By Different Authorities: Calcutta High CourtCase Title: S.K.M. Timber Private Limited v. Superintendent of Central Tax, Burrabazar Division, Kolkata North CGST & CX Commissionerate and othersCase Number: WPA 11034 of 2025The Calcutta High Court held that a GST registration cancellation order is unsustainable where the personal hearing is granted by one authority, but the final order is passed by another.Justice Om Narayan Rai stated that, interestingly, while the notice for personal hearing was issued by the Assistant Commissioner, CGST & CX, Burrabazar Division, but the order impugned has been passed by the Superintendent. The order therefore defies the very well-settled principle that an order must be passed by the authority that hears the parties or that one who hears must decide.Chhattisgarh HCExporters Not Using Letters Of Credit Cannot Be Denied Rice Export Duty Exemption: Chhattisgarh High Court Directs ₹2.1 Crore RefundCase Title: M/s Eastman International v. Union of India & OrsCase Number: WPT No. 228 of 2023The Chhattisgarh High Court has held that exporters who do not carry out exports through Letters of Credit (LoCs) cannot be denied exemption from export duty on parboiled rice solely on the ground that they failed to satisfy an LoC-related condition in a temporary exemption notification.A Division Bench of Chief Justice Ramesh Sinha and Justice Bibhu Datta Guru delivered the ruling while allowing the writ petition filed by a Ludhiana-based exporter engaged in the export of parboiled rice. The petitioner had challenged the levy and collection of 20 per cent export duty on its rice consignments during the brief period between 25 August 2023 and 15 October 2023.Delhi HCGST | Failure To Prove Dispatch Of Hearing Notice Doesn't Automatically Mean No Personal Hearing Was Given: Delhi High CourtCase title:...

Indirect Tax Weekly Round-Up: December 29, 2025 - January 04, 2026

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