Tax Weekly Round-Up: July 14 - July 20, 2025

SUPREME COURTStem Cell Banking Services Qualify As "Healthcare Services" In Service Tax Exemption Notification : Supreme CourtCase : M/S. STEMCYTE INDIA THERAPEUTICS PVT. LTD vs COMMISSIONER OF CENTRAL EXCISE AND SERVICE TAX, AHMEDABAD - IIICase no.: CIVIL APPEAL NOS. 3816-3817 OF 2025The Supreme Court held that stem cell banking services, including enrolment, collection, processing, and storage of umbilical cord blood stem cells, constitute “Healthcare Services” which were exempted from service tax as per the notifications issued by the Ministry of Finance in 2012 and 2014 under the Finance Act, 1994.Holding so, a bench comprising Justice JB Pardiwala and Justice R Mahadevan set aside the assessment orders issued against M/s Stemcyte India Therapeutics Ltd for over Rs 2 crores as service tax for the period from 01.07.2012 to 16.02.2014.MP Entry Tax Act | Manufacturers Liable For Entry Tax As They “Cause Entry” Of Liquor Into Local Areas : Supreme CourtCase Title: M/S UNITED SPIRITS LTD. VERSUS THE STATE OF MADHYA PRADESH & ORS.Citation : 2025 LiveLaw (SC) 727The Supreme Court upheld the MP High Court's decision to levy the 'entry tax' on the beer and Indian Made Foreign Liquor (“IMFL”) manufacturers for transporting goods into local areas for sale.The Court reasoned that the liquor manufacturers "cause entry" of goods into local areas, making them liable for tax under Section 2(3) of the Madhya Pradesh Sthaniya Kshetra Me Mal Ke Pravesh Par Kar Adhiniyam, 1976 (“M.P. Entry Tax Act, 1976”), even if sales occur through state-controlled warehouses.HIGH COURTSAllahabad HC[Income Tax] Filing Of Form 10-IC Prior To Filing Of Return Not Mandatory, Delay May Be Condoned In “Genuine Hardship”: Allahabad High CourtCase Title: CELL COM TELESERVICES PRIVATE LIMITED v. UNION OF INDIA AND OTHERS Case no.: WRIT TAX NO. 278 OF 2024The Allahabad High Court has held that filing of Form 10-IC prior to filing of income tax return is not mandatory and the delay in filing the Form may be condoned in cases where “genuine hardship” is shown to exist.Form 10-IC, under the Income Tax Act, is required to filed only if a Domestic Company chooses to pay tax at concessional rate of 22% under Section 115BAA of the Income Tax Act,1961. Section 115BAA provides that subject to the provisions of Chapter XII of the Income Tax Act, a domestic company may choose to compute its income tax at 22% for any previous year relevant to the assessment year beginning on or after the 1st day of April, 2020 provided the conditions mentioned in Section 115BAA(2) are fulfilled.Delhi HCCustoms Act | Adjudicating Authority Can't Decline Refund Of Excess Duty In Presence Of CA's Certificate: Delhi High CourtCase title: Principal Commissioner Of Customs (ACC Imports) Nokia India Sales Pvt. Ltd.Case no.: CUSAA 66/2025The Delhi High Court has made it clear that the Customs authority cannot, in absence of some evidence, decline refund of excess duty paid by a trader when the latter furnishes certificates from a qualified chartered accountant in support of its case.A division bench of Justices Prathiba M. Singh and Rajneesh Kumar Gupta thus dismissed the Department's appeal against Nokia. Nokia sought refund of excess duty paid on import of mobile handsets. While the goods were exempted by the Central government vide a notification issued in March 2015, Nokia said it had paid additional duty of customs at the rate of 6%.S.107 GST Act | Impugned Order “Automatically Stayed” Once Appeal Is Filed & Pre-Deposit Is Made; No Attachment Of Bank Account: Delhi HCCase title: M/S MJ Bizcrafts LLP Through Partner Rajender Kumar v. Central Goods And Services Tax Delhi South Commissionerate Through Its Commissioner & Ors.Case no.: W.P.(C) 9061/2025The Delhi High Court has observed that once an appeal is filed by the assessee under Section 107 of the Central Goods and Services Tax Act 2017 and pre-deposit is made, there is “automatic stay” of the impugned order raising demand.A division bench of Justices Prathiba M. Singh and Rajneesh Kumar Gupta thus interdicted the bank from attaching the account of an assessee, who had preferred an appeal against demand. It observed, “A perusal of Section 107(7) of the Central Goods and Services Tax Act, 2017 and the judgments relied on, would show that once an appeal is filed and pre-deposit is made, there is automatic stay of the impugned order. In view thereof, the attachment of the bank account is not sustainable.”Penalty U/S 122(1A) GST Act Can Be Imposed Retrospectively Even If SCN Was Issued After Its Enactment: Delhi High CourtCase title: Bhupender Kumar v. Additional Commissioner Adjudication CGST Delhi North & Ors.Case no.: W.P.(C) 9141/2025The Delhi High Court has made it clear that Section 122(1A) of the Goods and Services Tax Act 2017 can be imposed retrospectively, provided the show cause notice had been issued to the assessee when the provision was introduced.Section 122 contemplates penalties for certain offences under the GST ...

Tax Weekly Round-Up: July 14 - July 20, 2025

Kapil Dhyani

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