Tax
Tax Weekly Round-Up: August 04 - August 10, 2025
SUPREME COURTLet GST Council Look Into Tracking Of GST Paid On Foreign OIDAR Services : Supreme CourtCase Title – Pradeep Goyal v. Union of India & Ors.Case no. – Writ Petition No. 258 of 2021The Supreme Court recently disposed of a public interest litigation seeking directions for setting up a mechanism to track services provided by foreign entities in India under the Goods and...
Income Tax Act | Supreme Court Delivers Split Verdict On Timelimit For Assessments Under S.144C
The Supreme Court on Friday (Aug. 8) delivered a split verdict on the interpretation of the limitation period under Section 144C of the Income Tax Act, 1961 (“Act”), governing the timeline for passing assessment orders by the Assessing Officer in cases involving eligible assessees, such as foreign companies and transfer pricing matters.The judgment was delivered by the bench of Justices...
Serving Order On Chartered Accountant Doesn't Count As Service On Assessee: Bombay High Court
The Bombay High Court held that serving order on chartered accountant doesn't count as service on assessee. The issue before the bench was whether the copy of the order passed by the Tribunal when served upon the Chartered Accountant is sufficient service and whether it can be construed as 'copy received by the assesse/applicant'. Justices Bharati Dangre and Nivedita P. Mehta...
Drawback Not Allowed Where Refund Exceeds Market Value Of Goods: CESTAT
The New Delhi Bench of Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has stated that drawback not allowed where refund exceeds market value of goods. Dr. Rachna Gupta (Judicial Member) and P.V. Subba Rao (Technical Member) opined that if the transaction value (FOB value) is so high, that the drawback due on the goods exceeds the market value of the goods, then, as...
Digital Marketing Is Business, Not Profession; Audit Report Not Required For Turnover Below ₹5 Crores: Madras High Court
The Madras High Court held that digital marketing is a business and not a profession; and an audit report is not required for turnovers below Rs. 5 crores. Justice Krishnan Ramasamy stated that “Digital Marketing is the business for persons who carry out the said activities. In the event anybody carrying on the business of Digital Marketing with cash transactions both on the aspect...
ITC Not Available On Cess For Electricity Supplied To Residential Township: Chhattisgarh High Court
The Chhattisgarh High Court held that input tax credit is not available on cess for electricity supplied to residential township. Justice Sanjay K. Agrawal stated that the electricity generated is used in the course of or furtherance of his business, which is evident from Form G provided by the taxpayer(assessee), hence, the assessee would not be entitled for ITC to electrical...
Customs Wrongly Treated 998 Purity Gold Jewellery As Prohibited Goods Under Baggage Rules: Delhi High Court Grants Relief To Traveller
The Delhi High Court recently granted relief to a woman whose 998 purity (equivalent to 24 karat) gold jewellery was treated as prohibited goods under the Baggage Rules 2016, and absolutely confiscated by the Customs Department on her return to the country.A division bench of Justices Prathiba M. Singh and Rajneesh Kumar Gupta observed,“On the aspect of personal effects and jewellery,...
Failure To Notify GST Commissioner About Partner's Retirement Makes Ex-Partner Liable For Firm's GST: Punjab & Haryana High Court
The Punjab and Haryana High Court stated that failure to notify commissioner of partner's retirement makes former partner liable for firm's GST. Section 90 of the CGST Act, 2017 extends the liability in case of partnership firm to its partners as well. Justices Lisa Gill and Sudeepti Sharma stated that “intimation of retirement of partner has to be given to the Commissioner...
Trader Can't Be Labelled Defaulter Over Unpaid Demand During Pendency Of GST Appeal, After Making Pre-Deposit: Delhi High Court
The Delhi HIgh Court has held that once a trader prefers an appeal against a demand raised by the GST Department and makes the mandatory pre-deposit, the demand order is automatically stayed and the trader cannot be treated as a defaulter.A division bench of Justices Prathiba M. Singh and Rajneesh Kumar Gupta thus granted relief to the Petitioner-proprietorship firm and directed the Department...
No KVAT Levy On Advertisement Hoardings Where Right To Use Has Not Been Transferred: Kerala High Court
The Kerala High Court has held that transactions involving the display of advertisements on hoardings are not taxable under the Kerala Value Added Tax Act (KVAT), where the right to use has not been transferred. Justice Ziyad Rahman A.A. agreed with the assessee that the charges collected by the assessee for displaying the advertisement included the charges for erection, printing...
Merely Attaching Tax Determination Statement To DRC-01 Summary Cannot Be Treated As A Valid SCN: Gauhati High Court
The Gauhati High Court held that merely attaching tax determination statement to Drc-01 summary cannot be treated as a valid show cause notice. Justice Sanjay Kumar Medhi stated that “…….a formal and duly authenticated SCN is mandatorily required to initiate proceedings under Section 73. The Statement of tax determination under Section 73(3), which is attached to the summary...
Income Tax | S.194C & S.194LA Would Not Apply When TDR Certificates Are Issued In Lieu Of Compensation: Bombay High Court
The Bombay High Court held that Section 194C and Section 194LA of the Income Tax Act would not apply when TDR Certificates are issued in lieu of compensation. Justices B.P. Colabawalla and Firdosh P. Pooniwalla agreed with the assessee that the words “or by any other mode” appearing in Section 194C would have to be read ejusdem generis to the words “payment thereof in cash or...