Import Of Technical Designs Not 'Design Service'; No Extended Limitation Or Penalty: CESTAT Mumbai

The Customs, Excise & Service Tax Appellate Tribunal (CESTAT), Mumbai has delivered a significant ruling holding that import of technical know-how, engineering drawings and designs transferred permanently for manufacturing in India cannot be taxed as “Design Services” under the Finance Act, 1994.A Bench comprising S.K. Mohanty (Judicial Member) and M.M. Parthiban (Technical Member)...

Uttarakhand High Court Quashes GST Order After Authorities Ignored Adjournment Request While Assessee Was Abroad

The Uttarakhand High Court has quashed a Goods and Services Tax (GST) demand order passed against an assessee after the department ignored his request for adjournment on the ground that he was abroad at the relevant time. The petitioner had approached the Court challenging an order issued under Section 73 of the CGST/SGST Act, contending that the adjudicating authority proceeded...

Appellate Authority Must Consider Cess-Disclosure In Annual Return, 'No Negative Mandate' For Late-Filing: Calcutta High Court

The Calcutta High Court in a matter concerning non-disclosure of Cess in monthly return GSTR-3B which came to be rectified by filing annual return in GSTR-09, has set aside appellate order. The High Court has directed the Authority to revisit the matter and consider subsequent rectification in GSTR-09 of initial error of non-disclosure. In an order dated November 26, 2025 the...

Income Tax | Statutory Corporation Can Claim Deduction Under S 36(1)(viii) Only For Income Directly Derived From Long-Term Finance : Supreme Court

The Supreme Court on Wednesday (December 10) held that any income earned by a statutory corporation outside its core activity of providing long-term finance for industrial, agricultural, or infrastructure development in India cannot qualify for the 40% deduction available under Section 36(1)(viii) of the Income Tax Act, 1961 (“Act”). A bench of Justice P.S. Narasimha and Justice Atul...

ITC Cannot Be Denied For Non-Filing Of TRAN-1 Due To Transition Issues When GST Regime Came Into Effect: Delhi High Court Allows Credit Of ₹99 Lakh

The Delhi High Court held that legitimate transactional Input Tax Credit (ITC) cannot be denied when the assessee was unable to file TRAN-1 due to a GST portal glitch during the shift to the GST regime. The bench noted that since the form could not be filed in time, the distribution could not take place as per Rule 39(1)(a) of the CGST Rules within one month.Rule 39(1)(a) of the Central Goods...

Customs Act | 'Prohibition Includes Restriction': CESTAT Chennai Holds S.111(d) Covers Both Complete & Partial Restricted Imports

The Chennai Bench of Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) held that under Section 111(d) of the Customs Act, the term 'prohibition' includes both complete and partial restrictions under the Foreign Trade Policy. Hence, restricted goods imported without fulfilling mandatory conditions are treated as prohibited, which attracts confiscation and...

Railway Receipts & STTG Certificates Are Valid Documents For Availing CENVAT Credit Before 27.08.2014: CESTAT Kolkata

The Kolkata Bench of Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) held that railway receipts and STTG (Service Tax Certificate for Transportation of Goods) Certificates are valid documents for taking CENVAT (Central Value Added Tax) Credit even prior to 27.08.2014. R. Muralidhar (Judicial Member) and K. Anpazhakan (Technical Member) opined that the STTG...

'Did Not Apply Mind': Gujarat High Court Quashes Tax Authority's Order Refusing To Condone Delay In Filing Return Due To COVID Pandemic

The Gujarat High Court quashed an order of the tax authorities rejecting a partnership firm's application seeking condonation of 13 day delay in filing income tax return on account of Covid pandemic, observing that authority "did not apply its mind" to the reasons given by the firm. The petitioner partnership firm engaged in real estate development business had challenged a 27.10.2023...

Business Law Daily Round-Up: December 10, 2025

TAXSubway Franchisee Hiked Base Prices To Neutralise ITC Loss, Amounted To Profiteering; 18% Interest Can't Apply Retrospectively: GSTATSupplying AI-Powered IT Infra Services, Content To USA Corp By Indian Counterpart Is 'Export' Not 'Intermediary' : Gujarat High Court"₹41664 Crores ITC Fraud Via Non-Existing Entities, Fake Invoices": Centre Flags Rising GST Evasion In Rajya...

Centre Defends Onion Export Ban, Says MEP Was 'Temporary' & Needed To Protect Consumers Amid Price Spikes

The Centre has clarified on Onion export ban and imposition of Minimum Export Price (MEP), were 'temporary' and 'necessary' to protect consumers, especially low-income households, during years when adverse weather conditions and lower arrivals led to sharp spikes in retail prices. On fair-farmer remuneration, the Centre explained that it balanced consumer price stability and...

Municipality Must Accept Only Tax Component, Penal Charges Not Required For Filing Appeal Under Municipal Act: Kerala High Court

The Kerala High Court held that under Section 509(11) of the Municipality Act, only the tax component shown in the demand notice is required to be paid for filing an appeal. The bench clarified that the Municipality cannot insist on payment of penal interest or any other additional charges for entertaining the appeal. Section 509(11) of the Municipality Act, 1994, provides that...

Refund Cannot Be Denied When CA Certificate & Ledger Confirms Excess Excise Duty: CESTAT Kolkata

The Kolkata Bench of Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) held that the assessee is entitled to a refund of excess excise duty since both the Chartered Accountant's certificate and the ledger clearly established that the duty was paid in excess and was never passed on to any third party. R. Muralidhar (Judicial Member) and K. Anpazhakan (Technical...