Tax
Customs | Bird Feather Used In Fashion Accessories, Ready-To-Wear Items For Luxury Brands Classifiable As 'Dyed': Mumbai AAR
The Mumbai, Customs Authority for Advance Ruling (CAAR) has held that import of Dyed Feathers, wherein dying activity took place in France was classifiable as 'Dyed Feather' in terms of the General Rules of Interpretation. In a ruling dated December 15, 2025 Shri. Prabhat K. Rameshwaram on classification clarified that imported Feathers were intended for use as ornamental materials...
Customs Act | CESTAT Mumbai Quashes Aluminium Metal Scrap Valuation Enhancement; Says Rule 12 Safeguards Mandatory
The Mumbai Bench of the Customs, Excise and Service Tax Appellate Tribunal (CESTAT) has set aside orders enhancing the value of scrap consignments merely on the basis of National Import Data Base (NIDB) data and a Directorate General of Valuation (DGoV) circular. A Bench comprising Mr. S.K. Mohanty (Judicial Member) and Mr. M.M. Parthiban (Technical Member) stated that the...
Income Tax Act | S.153C Notices Unsustainable When Search For 'Other Person' Initiated After 01.04.2021: Madras High Court
The Madras High Court held that the notices under Section 153C are unsustainable where a search for 'other person' was initiated after 01.04.2021. Section 153C of the Income Tax Act applies when documents or assets belonging to a third party are found during a search, and an assessment is made against that person. Section 153C(3) of the Income Tax Act states that Section...
Income Tax Act | Bombay High Court Allows Treaty-Based Cap Of 10% On DDT For Foreign Shareholder; Sets Aside BFAR Ruling
The Bombay High Court (Goa Bench) has held that Dividend Distribution Tax (DDT) paid by an Indian subsidiary to its foreign shareholder must be restricted to the treaty rate of 10% under Article 11 of the India-UK India Double Taxation Avoidance Agreement (DTAA) A Division Bench of Justice Bharati Dangre and Justice Nivedita P. Mehta allowed the appeal filed by the assessee,...
GST | Court Should Not Presume Denial Of Bail Is Rule: Punjab & Haryana High Court Grants Bail In ₹23.66 Cr Fake ITC Case
The Punjab and Haryana High Court held that even in cases involving economic offences under the CGST Act, courts must not proceed on the presumption that “Denial of Bail is the Rule and grant being the exception”. Justice Aaradhna Sawhney stated that even in cases involving economic offences, the Court seized of the matter has to go through the gravity of the offence, the object...
Prosecution Can Be Initiated Without Waiting For ITAT Penalty Confirmation In High-Value Cases: Delhi High Court
The Delhi High Court has made it clear that approval of collegium of two CCIT/DGIT rank officers is only required in cases where tax evaded is less than the threshold limit of ₹25 Lakh.A division bench of Justices V. Kameswar Rao and Vinod Kumar held, “the appropriate authority for initiating the prosecution proceedings would be the sanctioning authority i.e., the PCIT and not the...
Gujarat High Court Restores GST Registration Noting Payment Of Outstanding Tax, Interest, Late Fee In Electronic Cash Ledger
The Gujarat High Court has restored GST registration subject to compliance with filing of pending returns and payment of outstanding tax with interest, late fee and penalty. A Division Bench comprising Justice A.S. Supehia and Justice Pranav Trivedi permitted filing of GST returns for past period after noting copy of GST Returns for the period from April 2022 to December...
Bombay High Court Quashes Tax Notices Issued Against Mumbai Company After SVLDRS Settlement
The Bombay High Court has held that once a dispute is settled under the Sabka Vishwas (Legacy Dispute Resolution) Scheme, 2019 and a Discharge Certificate is issued, tax authorities cannot reopen the matter. A Division Bench of Justice M S Sonak and Justice Advait M Sethna set aside two show cause notices issued by officers of the Central GST Audit-II wing, Mumbai, after the dispute was...
Income Tax Act | S.54 Relief Cannot Be Denied Merely Due To Delay In Registration If Sale Proceeds Invested Within Time: ITAT Chennai
The Chennai Bench of the Income Tax Appellate Tribunal (ITAT) held that deduction under Section 54 of the Income Tax Act cannot be denied merely due to delay in registration if investment in new residential property is made within the prescribed time. Section 54 of the Indian Income Tax Act, 1961 offers individuals and Hindu Undivided Families (HUFs) an exemption from long-term...
Customs Brokers Cannot Be Punished For Bona Fide Classification Claims Made On Basis Of Importer Instructions: CESTAT Mumbai
The Mumbai Bench of the Customs, Excise & Service Tax Appellate Tribunal (CESTAT) has set aside a penalty imposed on a licensed Customs House Agent (CHA), holding that merely claiming an exemption or classification as per the importer's instructions does not amount to misdeclaration or misconduct. A Bench comprising Dr. Suvendu Kumar Pati (Judicial Member) and M.M....
Delhi High Court To Examine Whether Delhi Jal Board Qualifies As 'Local Authority' & Works Contract Services Would Attract 12% GST
In yet another writ petition, concerning works contract services provided to Delhi Jal Board, where its status as a 'Local Authority' was called-into-question, the Delhi High Court has stayed the summary Show Cause Notice under Section 73 of the CGST Act, 2017. A Division Bench comprising, Justice Prathiba M. Singh and Justice Shail Jain noted that few similar disputes relating...
GST Act | Orissa High Court Quashes Recovery Proceedings Premised On 'Mistaken Identity' After Verifying Payment Receipt From Bank
The Orissa High Court in a matter involving 'mistaken identity' where one individual was assessed despite having a cancelled registration number (GSTIN), has quashed Show Cause Notice under Section 73 of the CGST Act, 2017. A Division Bench comprising Chief Justice Harish Tandon and Justice Murahari Sri Raman noted the 'mistaken fact' in Section 73 adjudication proceedings....