SUPREME COURTNo Export Duty On Transfer From Domestic Tariff Area To SEZ : Supreme Court Dismisses Union's Appeal Against Adani PowerCause Title: UNION OF INDIA THROUGH SECRETARY & OTHER VERSUS M/S ADANI POWER LTD.Observing that the movement of goods from a Domestic Tariff Area (DTA) to a Special Economic Zone (SEZ) is a domestic supply and not an export outside India, the Supreme...
SUPREME COURT
Cause Title: UNION OF INDIA THROUGH SECRETARY & OTHER VERSUS M/S ADANI POWER LTD.
Observing that the movement of goods from a Domestic Tariff Area (DTA) to a Special Economic Zone (SEZ) is a domestic supply and not an export outside India, the Supreme Court provided relief to Adani Power Ltd. and other entities from paying export duty under the Customs Act, 1962, for the movement of goods from DTA to SEZ.
A bench of Justice BV Nagarathna and Justice R Mahadevan dismissed the Union of India's appeal against a judgment of the Gujarat High Court which ruled that export duty cannot be levied for movement from a Domestic Tariff Area (DTA) to an SEZ. The High Court had held that it was a domestic supply and not an export outside India, therefore exempted from the payment of the export duty.
Supreme Court Dismisses Airports Authority's Appeal Against Service Tax Levy For Cargo Handling
Case : Airports Authority of India v. Commissioner of Service Tax
The Supreme Court on Tuesday dismissed an appeal filed by the Airports Authority of India (AAI) challenging the levy of service tax on services rendered in handling export cargo, ruling that such services fall within the ambit of “taxable services” under the Finance Act, 1994.
A Bench of Justice Pankaj Mithal and Justice Prasanna B. Varale held that while “handling of export cargo” is excluded from the definition of “cargo handling service” under Section 65(23) of the Act, cargo handling service nonetheless qualifies as a “taxable service” in terms of sub-clause (zzm) of Section 65(105) was introduced with effect from September 10, 2004.
HIGH COURTS
Allahabad HC
Case Title: Shree Balaji Aromatics Pvt. Ltd v. State of U.P. and Another
Recently, the Allahabad High Court has issued notices to office of the Solicitor General of India and Advocate General, Uttar Pradesh in a writ petition challenging the validity of Section 127 of the Central and State Goods and Service Tax Act, 2017.
Petitioner was issued an order under Section 127, which he allegedly came to know of in 2025. It has been pleaded that the orders were neither sent to the petitioner nor uploaded on the portal. Petitioner, in the writ petition, submitted that proceedings under Section 74 were initiated regarding transactions made by the petitioner with another assesee, which were later dropped.
Case Title: M/S Soraza Recycling Private Limited Versus Union Of India And 4 Others
Case no.: WRIT TAX No. - 4630 of 2025
The Allahabad High Court has held that provisional attachment of bank accounts cannot be done merely upon issue of show cause notice under Section 74 of the Goods and Service Tax Act, 2017.
Referring to the judgment of the Supreme Court in Radha Krishan Industries v. State of H.P. and its earlier judgment in R.D. Enterprises v. Union of India, the bench of Justice Shekhar B. Saraf and Justice Praveen Kumar Giri held, “If the reason that provisional attachment is being done as proceedings have been initiated under Section 74 of the Act is allowed to stand, then in all proceedings wherein show cause notice is issued under Section 74, provisional attachment would become valid. The law as laid down in the abovementioned judgements makes it patently clear that a proper opinion has to be formed based on adequate reasons for such a draconian action to be taken.”
Case Title: Mahesh Gautam v. Commissioner Of Income Tax
Case no.: INCOME TAX APPEAL No. - 436 of 2012
The Allahabad High Court has held that notices under Section 148 and 282 of the Income tax Act, 1961 must be delivered to the assesee personally through speed post and not merely upon his address to complete service under Section 27 of the General Clauses Act, 1897.
It held that presumption of sufficient service arises only when the notice is sent by registered post as in registered post the notice is delivered to the person it is addressed to. Highlighting the difference between registered post and speed post, the Court held that service will be deemed sufficient when sent through speed post only if it has been delivered to the addressee him/herself and not upon the address to a different person.
Bombay HC
Case Title: Hikal Limited v. Union of India
Case Number: WRIT PETITION NO. 78 OF 2025
The Bombay High Court has held that all pending proceedings under the omitted CGST Rules 89(4B) & 96(10) lapse in the absence of a savings clause.
The bench agreed with the assessee/petitioners that the provisions of Section 6 of the General Clauses Act are not attracted and therefore the pending proceedings can claim no immunity or protection.
Denial Of Re-Testing Of Seized Goods Must Be Occasional And Recorded In Writing: Bombay High Court
Case Title: Shri Vyom Dipesh Raichanna v. Union of India
Case Number: WRIT PETITION NO.10708 OF 2025
The Bombay High Court has held that re-testing of seized goods is a trade facilitation measure, not to be denied in the ordinary course.
Justices M.S. Sonak and Advait M. Sethna stated that "...Ultimately, such denial must be only occasional and that too, on reasonable grounds to be recorded in writing. The guidelines emphasised that this facility of re-testing is nothing but a trade facilitation measure, which, generally, will not be denied in the ordinary course…"
Chhattisgarh HC
Compensation Received From NHAI For Acquisition Of Land Not Taxable: Chhattisgarh High Court
Case Title: Sanjay Kumar Baid v. Income Tax Officer
Case Number: TAXC No. 176 of 2025
The Chhattisgarh High Court held that the compensation received against the acquisition of land from the NHAI (National Highways Authority of India) is not exigible to tax under Section 96 of the RFCTLARR Act (Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement Act, 2013).
Justices Sanjay K. Agrawal and Sanjay Kumar Jaiswal stated that once compensation is determined under the provisions of the RFCTLARR Act, as a necessary corollary, the benefits flowing from the provisions of the said Act, including exemptions from income tax, stamp duty and fees contemplated under Section 96 of the RFCTLARR Act, would also have to be made applicable.
Delhi HC
Case Title: Genesis Enterprises v. Principal Commissioner CGST Delhi East
Case Number: W.P.(C) 13821/2025
The Delhi High Court has issued directions safeguarding the right to privacy in GST search proceedings, stating that any family-related CCTV footage which violates the privacy of family members cannot be used or disseminated in any manner.
“Some of the concerns which are raised by the Petitioners such as right to privacy of the family being violated, etc., deserve to be addressed. Clearly, any family-related CCTV footage which is with the GST department and violates the privacy of family members cannot be used or disseminated in any manner,” stated the bench consists of Justices Prathiba M. Singh and Shail Jain.
One Rolex Watch Can Be For Personal Use, Not 'Commercial Quantity': Delhi High Court To Customs
Case title: Mahesh Malkani v. Commissioner Of Customs
Case no.: W.P.(C) 14402/2025
The Delhi High Court has made it clear that one Rolex watch seized by the Customs Department from an air passenger cannot be called 'commercial quantity'. It thus cautioned the Department's Adjudicating Authority against “error” on its part, in declaring the same as commercial.
“Clearly, this Court is of the view that one Rolex watch cannot be held to be a commercial quantity and there is no reason as to why the same cannot be kept for personal use,” a division bench of Justices Prathiba M. Singh and Shail Jain observed.
Case title: Union of India v. Essilorluxottica Asia Pacific Pte Ltd. And Ors
Case no.: W.P.(C) 14723/2025
The Delhi High Court is set to examine whether the Customs, Excise & Service Tax Appellate Tribunal (CESTAT) has jurisdiction to hear challenges to notifications issued by the Central Government, imposing Anti-Dumping Duty.
Prior to Finance Act 2023, Section 9C of the Customs Tariff Act, 1975, which is the governing provision for appeals before CESTAT, conferred jurisdiction on CESTAT to hear appeals against 'order'. However, post amendment vide Section 134 of Finance Act, the power is circumscribed to appeals against 'determination or review'. Hence, the question before the High Court is whether only 'determination or review' finding of the DGTR can be challenged before CESTAT or also the 'order' of its acceptance by the Finance Ministry.
Karnataka HC
Karnataka High Court Directs CBDT To Extend Tax Audit Due Date To 31st October
The Karnataka High Court today directed the Central Board of Direct Taxes to extend the due date for filing Tax Audit Reports under Section 44AB of the Income Tax Act, 1961, by one month to 31st October, 2025.
The Court took into consideration the difficulties faced and directed the CBDT to extend the due date until the end of October.
Kerala HC
Case Title: Mrs. Sainaba Hamza Koya v. The Income Tax Officer
Case Number: WP(C) NO. 40744 OF 2024
The Kerala High Court stated that to claim the Section 54F deduction under the Income Tax Act, the assessee must satisfy the authorities that borrowed funds were used at their own risk with the intention to be repaid with capital gains.
Justice Ziyad Rahman A.A. stated that "...even in a case where, the residential building was purchased, or it was constructed utilising the borrowed funds or funds from other sources, there is an obligation on the part of the Assessee to satisfy the authorities that, the funds were spent by the assessee either through borrowing or arranging from other sources at his/her own risks and costs, in anticipation of or with an intention to appropriate the income to be subjected to capital gain tax, for such purchase or construction…"
Madhya Pradesh HC
Case Title: M/s Hindustan Unilever Ltd. v. Commercial Taxes Department
Case Number: VALUE ADDED TAX APPEAL No. 73 of 2019
The Madhya Pradesh High Court stated that White Petroleum Jelly is classified as a 'Drug', not 'Cosmetic', and therefore is not liable to higher VAT and Entry Tax.
Justices Vivek Rusia and Jai Kumar Pillai stated that a White Petroleum Jelly of IP grade manufactured and sold by appellant under a valid drug licence is liable to be classified as a category of drug and medicine under Entry 19-A of Part II, Schedule II of the MP VAT Act.
Madras HC
Case Title: M/s.Sivakumar and Co., Perundurai Road, Erode v. The Tamil Nadu Sales Tax Appellate Tribunal
Case Number: W.P.No.33265 of 2007
The Madras High Court has held that if the assessee has purchased goods both within the State and from other States, then to claim exemption for inter-State purchases, the purchases made within the State must be segregated from those made from others.
Justices S.M. Subramaniam stated that when the facts are established in clear terms that the goods were found mingled during the course of physical verification/inspection, the decision of the assessing Authority and the appellate Tribunal that the assessee is not entitled for exemption, is correct and in consonance with the provisions of the exemption Order.
Case Title: M/s. Inalfa Gabriel Sunroof Systems Pvt. Ltd. v. Customs Authority for Advance Ruling, Mumbai
Case Number: C.M.A.No.2553 of 2025
The Madras High Court has held that the scope of appeal is limited under Section 28KA of the Customs Act and an advance ruling is binding unless it is palpably arbitrary or irrational.
Justices S.M. Subramaniam and C. Saravanan stated that the scope of appeal under Section 28KA of the Customs Act, 1962, is limited, as the ruling obtained is binding on the persons mentioned in Section 28J of the Customs Act, 1962. Unless the ruling of the Authority is palpably arbitrary or irrational or without any proper reasoning, they cannot be interfered by this Court under Section 28KA of the Customs Act, 1962.
No Tax Exemption On Bakery Products Sold At Snack Bar: Madras High Court
Case Title: Cakes N Bakes v. The Commercial Tax Officer
Case Number: W.P.No. 19651 of 2007
The Madras High Court held that there is no tax exemption for bakery products sold in a snack bar.
Justices S.M. Subramaniam and C. Saravanan were addressing the issue of whether bakery products sold in a snack bar are covered under the notification G.O.P.No.570 dated 10th June 1987 and exempted from tax.
Rajasthan HC
Title: Tax Bar Association, Bhilwara v UOI & Anr.
The Rajasthan High Court has extended the deadline for filing the Tax Audit Report by one month. A division bench of Justice (Dr.) Pushpendra Singh Bhati and Justice Bipin Gupta at the Rajasthan High Court extended the deadline under Section 44AB of the Income Tax Act, 1961, by 1 (one) month beyond September 30, 2025.
It was submitted that in the previous years, CBDT had consistently granted such extensions in similar circumstances, and refusal to grant the same in the present situation was arbitrary, unreasonable, and a violation of Articles 14, 19(1)(g) and 21 of the Constitution of India.
TRIBUNALS
Case Title: Habasit Iakoka Pvt. Ltd v. Commissioner of Customs
Case Number: Customs Appeal No. 41230/2013
The Chennai Bench of Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has directed the Registry to refer two appeals to the President of CESTAT for the constitution of a Special Bench to hear and decide the matter against a common order.
Citing the principle of “comity of Courts,” the bench, consisting of Ajayan T.V. (Judicial Member) and M. Ajit Kumar (Technical Member), observed that since the Ahmedabad Bench had already heard an appeal from the same impugned order, it would be appropriate for the Chennai Bench to decline jurisdiction over the same subject matter.
OTHER DEVELOPMENTS
CBDT Extends Due Date For Filing Tax Audit Reports To 31st October
On 25th September, the Central Board of Direct Taxes extended the specified date for filing various audit reports for the Previous Year 2024-25 (Assessment Year 2025-26), from 30th September 2025 to 31st October 2025, for assesses referred to in clause (a) of Explanation 2 to sub-section (1) of section 139 of the Income Tax Act,1961.
The extension was granted after the Board received multiple representations from various professional associations, including Chartered Accountant bodies. These associations submitted that the taxpayers and professionals were facing difficulties in timely completion of audit reports due to disruptions caused by natural calamities and floods in certain parts of the country.