Customs Department Can't Invoke Expired Bank Guarantees: Kerala High Court

The Kerala High Court stated that invocation of the expired bank guarantees by Customs Department is not permissible under law. The Division Bench of Justices A.K. Jayasankaran Nambiar and Easwaran S. was addressing the issue of whether customs department can invoke expired bank guarantees. The assessee/appellant has filed an appeal challenging the order of Single Judge who found that the challenge to the invocation of the Bank Guarantees cannot be made, except on fraud or...

Determination Of Anti-Dumping Duties Is A Time-Bound Process By Competent Authority, Writ Courts Will Be Hesitant To Interfere: Delhi HC

The Delhi High Court has held that writ petitions challenging the determination of anti-dumping duties by Directorate General of Trade Remedies are maintainable however, since the determination is a time bound process, Courts will not readily interfere in the process.Anti-dumping investigation determines whether a product is being dumped in the country at a lower price, causing material injury to the domestic industry. If found true, the DGTR may impose anti-dumping duties on the importer of...

Service Tax Not Leviable On Excess Transportation Charges Recovered From Buyers: CESTAT

The New Delhi Bench of Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has stated that service tax is not leviable on excess transportation charges recovered from the buyers. The activity of arranging transportation of goods till the dealer's premises cannot be classified under “Business Auxiliary Service” and, therefore, no service tax is payable on transportation related expenses recovered in excess by the assessee from their buyers, stated the Bench of Binu Tamta...

Vos Technologies Judgment On Time Bound Adjudication Of SCNs Applicable To Recovery Proceedings U/S 11A Of Central Excise Act: Delhi High Court

The Delhi High Court has held that Section 11A of the Central Excise Act 1944, which empowers taxing authorities to recover duties not levied/ short-levied or short-paid, is pari materia to corresponding provisions of the Customs Act, the Finance Act and the CGST Act.A division bench of Justices Yashwant Varma and Harish Vaidyanathan Shankar thus held that the High Court's judgment in M/S VOS Technologies India Pvt. Ltd. v. The Principal Additional Director General & Anr. (2024) is...

Purchaser Of Residential Property Liable To Pay GST If Property Booked Before Construction Is Completed: Karnataka HC

The Karnataka High Court has reiterated that if the transaction of booking a residential house is entered into before the completion of construction and the consideration was paid (partly or fully) before issuance of completion certificate, the same would amount to supply of services requiring payment of the service tax (GST) by the purchaser. Justice M G S Kamal recently dismissed a batch of petitions filed by B g Parmeshwara and others which had challenged the endorsement issued by...

Income Tax Bill Allows Officials To Access Assessee's Computer System Overriding Access Code In Certain Cases: Finance Ministry

The Ministry of Finance has told the Parliament that the Income Tax officials cannot access the personal emails, social media accounts and bank accounts of all assesses.However, there is a provision in the new Income Tax Bill 2025, which allows Income Tax officals, in certain cases of search and seizure, to access the computer systems of the assesses by "overriding the access code", if the assesse is not cooperating. Minister of State in the Ministry of Finance, Pankaj Chaudhary, made these...

Amount Recovered Towards Penalty Is Not A Service, Service Tax Not Leviable: CESTAT

The New Delhi Bench of Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has stated that the amount recovered towards penalty is not a consideration for any activity and as a result there is no 'service'. Therefore, no service tax is leviable. The Bench of Bintu Tamta (Technical) and P.V. Subba Rao (Technical) has observed that, “the amount recovered by the assessee towards penalty is not a consideration for any activity which has been undertaken by the assessee and as a...

Application Of Funds By Indian Broadcasting Foundation In BARC Is Not For Profit, Exempted U/S 11 & 12 Of Income Tax Act: Delhi High Court

In an order bringing relief to the Indian Broadcasting Foundation (IBF), which was incorporated to protect the interests of various stakeholders in the field of television broadcasting, the Delhi High Court allowed the body to claim exemption from payment of tax under Sections 11 and 12 of the Income Tax Act, 1961.The provisions govern the taxation of income derived from property held under trust for charitable or religious purposes.Section 11 provides for the exemption of income from property...

Delhi High Court Orders Customs To Release 'Name Engraved' Gold Jewellery Of Indian Tourist

The Delhi High Court has ordered the Customs Department to release the gold kada of an Indian tourist, which was seized upon his return to the country after a visit to the Republic of Mali.Petitioner had argued that the jewellery was a personal effect, as evident from engraving of his first name on the same, and was thus exempted from duty.A division bench of Justices Prathiba M. Singh and Rajneesh Kumar Gupta ordered that the jewellery be released within four weeks.Petitioner had claimed that...

'Comedy Of Errors': Delhi HC On CESTAT Passing Contradictory Orders In Appeal Which Did Not Meet Its Pecuniary Jurisdiction

The Delhi High Court recently took a critical view of the Customs Excise And Service Tax Appellate Tribunal at New Delhi for repeatedly passing contradictory orders in an appeal, which should have been dismissed for want of pecuniary jurisdiction.“This order reveals a complete comedy of error…The petition reveals an unfortunate situation wherein the CESTAT while intending to correct an error in its initial order…continued to make repeated errors resulting in the impugned order and the present...

Service Tax Leviable On RIICO And RASMB For Commercial And Industrial Construction Services: CESTAT

The New Delhi Bench of Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has stated that there is a service tax liability on RIICO and RASMB for commercial and industrial construction services. The Bench of Dr. Rachna Gupta (Judicial) and Hemambika R. Priya (Technical) was addressing the issue of the tax liability of the service provider providing “Commercial and Industrial Construction Service” to the public authorities. In this case, the assessee/appellant had entered...

Tax Weekly Round-Up: March 17 - March 23, 2025

HIGH COURTSAllahabad HCProceedings U/S 129 Of GST Act Are Summary Proceedings, Burden To Prove Actual Movement Of Goods Lies On Assesee: Allahabad High CourtCase Title: M/S Jaya Traders Through Its Proprietor Mr. Vishwanath Tiwari v. Additional Commissioner Grade-2 And Another Case no.: WRIT TAX No. - 1022 of 2021The Allahabad High Court has held that proceedings under section 129 of the GST Act are summary proceedings where the burden to prove the actual physical movement of goods is on the...