Tax
Can States Impose Additional Levy On Sales Tax? Supreme Court 7-Judge Bench To Hear On September 22
The Supreme Court will, from September 22, hear a long-pending dispute concerning the constitutional power of State legislatures to impose an additional levy on sales tax, with a seven-judge Constitution Bench set to examine the scope of the States' taxing powers under the Seventh Schedule.A bench comprising Chief Justice of India Surya Kant, Justice Joymalya Bagchi and Justice V Mohana...
GST | Exporters Whose Applications Were Pending Before Omission Of Rule 96(10) Entitled To IGST Refund : Supreme Court
The Supreme Court has given a quietus to the controversy surrounding exporters' eligibility to claim Integrated Tax (IGST) refunds, with their applications pending when the rule restricting such claims was omitted in 2024 without any saving clause. Providing relief to exporters, a bench of Justice JB Pardiwala and Justice K Vinod Chandran held that exporters whose applications were pending...
Retrospective Tax Liability Valid, But Not Retrospective Penalty : Supreme Court
The Supreme Court has held that while a tax liability can validly be imposed retrospectively through legislative amendment, penalty cannot be imposed retrospectively on a dealer who had complied with the law as it stood when the transaction took place.A Bench of Justice Aravind Kumar and Justice Prasanna B. Varale made the distinction while upholding the constitutional validity of a...
Central Excise | 'Mere Grouping And Unpacking Does Not Attract Excise Duty', Supreme Court Dismisses Revenue's ₹17.86 Crore Demand Against Xerox
The Supreme Court on Wednesday (August 5) held that a mere grouping and fitting together of imported photocopier modules for dispatch to customers does not amount to “manufacture” under the Central Excise Act, 1944, to attract an excise duty. A bench of Justice S.V.N. Bhatti and Justice N.V. Anjaria dismissed the revenue's appeal, upholding the Customs Excise & Service Tax...
S. 44B Income Tax Act | Cruise Voyages Remain Shipping Business Though Providing Entertainment & Hospitality Services : Supreme Court
The Supreme Court has recently held that a foreign cruise ship operator that provides hospitality and entertainment services during a voyage would still qualify as a shipping business under Section 44B of the Income Tax Act. Thus, its taxable income would be computed on a presumptive basis at 7.5% of the specified receipts by an assessee under the provision. Dismissing the Revenue's appeal,...
Tax Dispute Not Arbitrable Where Statutory Determination Required : Allahabad High Court
The Allahabad High Court at Lucknow has recently held that a tax-related dispute between contracting parties may be referred to arbitration so long as it can be resolved through interpretation of the contract.It held that the dispute stops being arbitrable the moment its resolution turns on a determination reserved to the taxing authorities.The bench of Chief Justice Arun Bhansali and...
RTO Can Cancel Vehicle Registration Obtained On False Documents: Karnataka High Court Upholds Action Against Mercedes Car
The Karnataka High Court has set aside a Single Judge's order that had quashed the seizure of a premium Mercedes Benz AMG G63 suspected of tax evasion using fabricated documents. The single judge had also directed restoration of the vehicle's registration. [2026 LiveLaw (Kar) 272]. The Division Bench of Chief Justice Vibhu Bakhru and Justice K.S Hemalekha however held that the vehicle...
GST | 'ITC Available To Buyer Only If Supplier Paid Tax', Supreme Court Upholds Validity Of S. 16(2)(c) Of CGST Act
The Supreme Court has recently affirmed the Gujarat High Court's judgment, which held that the Input Tax Credit (ITC) can be availed only if the supplier has actually paid the tax to the government.A bench of Justice Sanjay Kumar and Justice Sanjeev Sachdeva dismissed a batch of petitions filed against the Gujarat High Court's judgment, which had upheld the constitutional validity of...
Income Tax Set-Off Rules Can't Be Applied To Reduce Motor Accident Compensation: Bombay High Court
The Bombay High Court has held that loss computed under the head "Income from House Property" under the Income-tax Act, 1961, cannot be set off against income under the head "Business or Profession" while determining compensation under the Motor Vehicles Act, 1988. The Court observed that the Income-tax Act and the Motor Vehicles Act operate in distinct fields, and the mechanism of set-off...
Stamp Duty On Mining Leases Based On Anticipated Royalty, Not Dead Rent : Supreme Court
The Supreme Court on Thursday (July 23) ruled that stamp duty payable on mining leases must be calculated based on anticipated royalty and not dead rent. Relying on the proviso to Section 26 of the Indian Stamp Act, 1899, a bench of Justice Sanjay Karol and Justice Augustine George Masih dismissed the M/s. Birla Corporation Ltd. appeal against the Madhya Pradesh High Court's decision to...
Income Tax Act | Notice To Deceased Assessee Under S.148 Void, Not Curable: Allahabad High Court
The Allahabad High Court has held that a notice issued under Section 148 of the Income Tax Act, 1961 in the name of an assessee who was already dead on the date of its issuance is void ab initio, rendering every proceeding taken pursuant to it null and void. It held that the defect goes to jurisdiction and is not a mistake, defect or omission curable under Section 292B of the Act.Section 148...