Tax
Construction Of School & College Buildings Between 2008-2012 Not Taxable As Commercial Or Industrial Construction Service: CESTAT Chennai
The Chennai Bench of Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has stated that the construction of school and college buildings during 2008-2012 is not taxable as commercial or industrial construction service. P. Dinesha (Judicial Member) and Vasa Seshagiri Rao (Technical Member) examined whether the construction of buildings for educational institutions, such...
Service Tax Cannot Be Levied On Rent-A-Cab Services Provided To SEZ Units: CESTAT Chennai
The Chennai Bench of Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has stated that the service tax cannot be levied on rent-a-cab services provided to Special Economic Zone (SEZ) units as per the overriding effect under Section 51 of the SEZ Act (The Special Economic Zones Act, 2005). Ajayan T.V. (Judicial Member) and M. Ajit Kumar (Technical Member) observed that...
Delhi High Court Dismisses Revenue's Appeal In Avery Dennison Transfer Pricing Case, Upholds ITAT Order On Intra-Group Services
The Delhi High Court has dismissed the Income Tax Department's appeal against M/s Avery Dennison (India) Pvt. Ltd., reaffirming that no substantial question of law arises where the Transfer Pricing Officer's (TPO) conclusions are unsupported by cogent evidence and the issue stands settled in favour of the assessee in earlier years. A Division Bench comprising Justice V. Kameswar Rao...
Meter Reading, Billing & Disconnection Services Are Ancillary To Electricity Distribution; Exempt From Service Tax: CESTAT Allahabad
The Allahabad Bench of Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has held that services, such as meter reading, billing, and connection/disconnection of electricity, are ancillary services of transmission and distribution of electricity and service tax is not payable for these services. P.K. Choudhary (Judicial Member) examined whether the services such as...
LiveLawBiz: Business Law Daily Round-Up: December 07, 2025
TAX Madras HC Quashes SCNs Against Apollo Tyres & MRF; Says S.74 GST Act Cannot Be Invoked When Tax Was Paid Voluntarily GST Demand Cannot Exceed Amount Mentioned In Show Cause Notice: J&K& L High Court ITAT Cannot Re-Adjudicate Issues Under Guise Of Rectification U/S 254(2)Income Tax Act: Madras High Court Manufacturing& Packaging Of Cement Not Civil Construction Activities;...
Madras HC Quashes SCNs Against Apollo Tyres & MRF; Says S.74 GST Act Cannot Be Invoked When Tax Was Paid Voluntarily
The Madras High Court has quashed Show Cause Notices issued to Apollo Tyres Limited and MRF Limited alleging wrongful availment of Input Tax Credit (ITC) for the composite supply of Tyres, Tubes and Flaps (TFF) since tax difference was paid voluntarily. In twin judgments dated November 28,2025, Justice Krishnan Ramasamy examined if Show Cause Notice had fulfilled the ingredients...
GST Demand Cannot Exceed Amount Mentioned In Show Cause Notice: J&K&L High Court
The Jammu & Kashmir and Ladakh High Court has held that a tax demand under GST cannot exceed the amount mentioned in the show cause notice and that doing so violates basic principles of fairness. The Division Bench of Justice Sanjeev Kumar and Justice Sanjay Parihar set aside a GST demand raised against a goods transport agency (GTA), after finding that the final demand was...
ITAT Cannot Re-Adjudicate Issues Under Guise Of Rectification U/S 254(2) Income Tax Act: Madras High Court
The Madras High Court has held that the rectification power under Section 254(2) of the Income Tax Act is akin to the review power under Order 47 Rule 1 CPC and is limited to rectifying any mistake apparent on the face of the record. The Tribunal cannot re-adjudicate issues or modify its original order under the guise of rectification. Section 254(2) of the Indian Income Tax Act,...
Manufacturing & Packaging Of Cement Not Civil Construction Activities; CENVAT Credit Cannot Be Denied: CESTAT Bangalore
The Bangalore Bench of Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has stated that manufacturing and packaging of cement are works service contracts, not civil construction activities, and therefore CENVAT (Central Value Added Tax) Credit cannot be denied. Regarding the allegation of ineligible CENVAT credit availed by the assessee on lease premium, the bench consists...
Income Tax Act | CIT(A) Can't Remand Matter Back To AO Without Deciding Jurisdictional Validity Of S.144 Order: Delhi High Court
The Delhi High Court has made it clear that the Commissioner of Income Tax Appeals cannot remand assessment back to the Assessing Officer, unless it decides the jurisdictional validity of AO's order passed under Section 144 of the Income Tax Act 1961.Section 144 empowers the deals with the assessment of a taxpayer that is carried out by the Assessing Officer (AO) as per his best judgement...
Income Tax Act | No Error In Issuing Successive Reassessment Notices On Same 'Reasons To Believe': Delhi High Court
The Delhi High Court has refused to interfere with income reassessment action initiated by the tax authorities merely on the ground that two successive notices under Section 148A(1) of the Income Tax Act 1961 were issued to the assessee.A division bench of Justices V. Kameswar Rao and Vinod Kumar observed,“as the fresh notice dated 13.06.2025 was issued with the same contents, the...
Paddy Is An Agricultural Produce, No GST Leviable On Rent Received For Its Storage: Tamil Nadu AAR
The Tamil Nadu Authority for Advance Ruling (AAR) has ruled that rent received for letting out a godown to store paddy does not attract Goods and Services Tax (GST), as paddy qualifies as an agricultural produce. The ruling was passed on an advance ruling application filed by M/s Lena Modern Rice Mill, owned by Lakshmanan Sivalingam, which had rented out its premises for use as...