TaxCorp GST/VAT

VAT/GST Highlights

26-03-2026 (2026) TaxCorp(VAT) 31536 (HC-ORISSA)

Orissa High Court Rules Post-Disposal Modification Plea Inadmissible: No Revisiting Final Orders Except for Clerical Errors - The Orissa High Court has categorically held that post-disposal interlocutory applications seeking modification, clarification, or rectification of a final order are not maintainable, save for rectifying clerical or arithmetical errors or in the rarest cases of impossibility of execution. Applications that, in essence, seek a review or reopening of the merits are not entertainable once the Court has become functus officio.

16-03-2026 (2026) TaxCorp(VAT) 31535 (HC-ORISSA)

Conditional Interim Relief Against Entry Tax Recovery: Orissa High Court Upholds Discretion in Stay Matters Amidst Dealer’s Non-Compliance - In conclusion, the Orissa High Court refused to interfere with the Commissioner’s discretion in denying an unconditional stay on the recovery of entry tax, considering the petitioner’s repeated non-production of documents and lack of explanation. However, the Court granted conditional interim protection, allowing the petitioner to avoid coercive recovery measures during the pendency of the second appeal, provided that 30% of the outstanding balance is deposited within the time prescribed. This decision underscores the importance of compliance and cooperation by assessees in tax proceedings, particularly when seeking discretionary relief.

12-03-2026 (2026) TaxCorp(VAT) 31534 (HC-KERALA)

Kerala High Court Affirms VAT Exemption for Khadi Board-Approved Earthen Roofing Tiles by Expanding ‘Pottery’ Definition - The Kerala High Court has decisively ruled that the exemption provision under Entry No. 55 for products of Khadi and Village Industries Board-approved units must be given a purposive construction in line with the social objectives of the Khadi Act. Earthen roofing tiles manufactured by such units constitute ‘pottery’ for the purposes of the exemption, and the petitioner is entitled to the benefit of tax exemption under the KVAT Act. The Tribunal’s orders to the contrary stand quashed.

17-02-2026 (2026) TaxCorp(VAT) 31533 (HC-JHARKHAND)

Jharkhand High Court Invalidates Time-Barred VAT Reassessment Initiated Post CAG Audit, Reaffirms Limitation as Jurisdictional Bar - The High Court unequivocally held that reassessment orders passed beyond the limitation prescribed under Section 40(4) of the Jharkhand VAT Act, 2005, are without jurisdiction and thus liable to be quashed. This decision reinforces the need for tax authorities to adhere to statutory timelines and provides an actionable remedy for assessees facing time-barred notices.

25-03-2026 (2026) TaxCorp(VAT) 31532 (SC)

Supreme Court Nullifies Entry Tax Demand on SEZ Imports; Leaves Door Open for Future Action by Revenue Authorities - The Supreme Court’s decision establishes that once the competent authority (here, the Commissioner) accepts the exemption claim under the SEZ Act, further adjudication of the assessment order and demand notices is unnecessary. However, such relief is not absolute, as the Department may revisit the matter if circumstances change or new facts emerge. Parties must also pay heed to procedural developments, such as amendments to settlement schemes, and utilize them where appropriate.

25-03-2026 (2026) TaxCorp(VAT) 31531 (HC-BOMBAY)

Bombay High Court Safeguards Taxpayer from Coercive Recovery Pending Determination of Pre-Deposit Compliance by Appellate Authority - In summary, the Bombay High Court’s decision mandates that appellate authorities must promptly adjudicate applications concerning pre-deposit compliance before proceeding further with recovery actions. Taxpayers are entitled to interim protection against coercive measures until a reasoned decision is rendered on such applications. This ensures both adherence to statutory procedural requirements and protection of taxpayer rights during the pendency of appellate proceedings.

29-01-2026 (2026) TaxCorp(VAT) 31530 (HC-KARNATAKA)

Karnataka High Court Clarifies: No Appeal Maintainable Against Rejection of Rectification Application Absent Rectification Under Section 69 - The High Court concluded that no appeal lies to the Tribunal under Section 63 against the rejection of a rectification application when no actual rectification has occurred. The revision petition was thus dismissed, and the Tribunal’s view was affirmed as correct in law.

11-02-2026 (2026) TaxCorp(VAT) 31529 (HC-MADRAS)

Madras High Court Sets Aside VAT Assessments Due to Procedural Unfairness and Orders Re-Assessment After Partial Pre-Deposit - The Madras High Court has set aside the assessment orders for being procedurally unfair, specifically due to the denial of an effective hearing to the assessee. The assessments are to be redone from the stage of notice, treating the previous orders as supplemental, provided the petitioner fulfills the pre-deposit condition of 25% of the disputed tax amount. The fresh assessment must be made after proper consideration of the assessee’s replies and the relevant departmental circular, ensuring strict adherence to the principles of natural justice.

23-03-2026 (2026) TaxCorp(VAT) 31528 (HC-CALCUTTA)

Calcutta High Court Upholds Primacy of Statutory Appellate Remedy Under VAT Regulations, Limits Writ Jurisdiction for Limitation and Natural Justice Claims - The Calcutta High Court’s decision affirms that when an effective appellate forum is available under the West Bengal VAT Regulation, 2017, aggrieved parties must first pursue the statutory remedy before approaching the writ court. Limitation disputes and natural justice claims, unless raising self-evident jurisdictional errors, are to be addressed within this statutory framework. The intra-court appeals were accordingly dismissed, with the appellants directed to pursue their grievances before the appellate forum constituted under the VAT Regulation.

19-03-2026 (2026) TaxCorp(VAT) 31527 (HC-ORISSA)

Orissa High Court Quashes Non-Speaking Order: Mandates Reasoned Consideration by Commissioner on Stay of Recovery Pending Tribunal Appeal - The High Court’s decision provides a clear and actionable directive: any authority exercising statutory discretion to grant or refuse stay of tax, interest, or penalty recovery pending appeal must issue a well-reasoned and speaking order, after giving the assessee an adequate opportunity of hearing. Failure to do so renders the order unsustainable in law and liable to be set aside on judicial review. Authorities must avoid non-application of mind or mechanical refusals, especially where legislative provisions (such as Section 17(7)) expressly envisage interim protection.

12-02-2026 (2026) TaxCorp(VAT) 31526 (HC-KARNATAKA)

Karnataka High Court Quashes Revisional Orders under Section 64 of KVAT Act: Subcontractor's Tax Discharge Validates Exemption for Principal Contractor - In summary, the Karnataka High Court allowed the appeals, setting aside the revisional orders passed under Section 64 of the KVAT Act for the assessment years 2013-14, 2014-15, and 2015-16. The principal contractors were held entitled to exemption on subcontracted turnover where subcontractors had paid the applicable VAT, rendering further proceedings unnecessary. No order as to costs was made.

18-02-2026 (2026) TaxCorp(VAT) 31525 (SC)

Supreme Court Permits Late Filing, Declines to Intervene in Jharkhand High Court Ruling under Article 136 - In summary, the Supreme Court, while adopting a liberal approach in condoning procedural delays, emphasized that the power under Article 136 is discretionary and will not be exercised unless there exists a compelling reason or a substantial question of law. The present order, therefore, upholds the sanctity of the High Court’s decision and signals that procedural lapses may be excused, but substantive interference requires a higher threshold.

26-02-2026 (2026) TaxCorp(VAT) 31524 (HC-KARNATAKA)

Karnataka High Court Denies State’s Bid for Delay Condonation in Sales Tax Revision Petition: Absence of Cogent Explanation Proves Fatal - Given the absence of a cogent and credible explanation for the inordinate delay and the lack of substantiating material, the Karnataka High Court refused to condone the delay under Section 5 of the Limitation Act. The revision petition filed under Section 65(1) of the KVAT Act was thus not entertained. The decision underscores that State authorities are subject to the same standards of diligence and procedural discipline as any other litigant and that institutional machinery cannot be excused on account of individual lapses.

17-03-2026 (2026) TaxCorp(VAT) 31523 (SC)

Supreme Court Dismisses Review Petition Due to Unexplained 522-Day Delay and Absence of Apparent Error - The Supreme Court’s decision underscores the necessity for strict adherence to procedural requirements and timelines when seeking review of its orders. It affirms that unexplained or inadequately explained delays, particularly of substantial duration (in this case, 522 days), will not be condoned. Further, the Court reiterated that only errors apparent on the face of the record or compelling reasons will justify exercise of review jurisdiction. Parties must, therefore, ensure timely and properly drafted petitions, accompanied by cogent grounds, when seeking review.

12-03-2026 (2026) TaxCorp(VAT) 31522 (SC)

Supreme Court Excuses Delay and Affirms Precedent on Settlement Amount Calculation in Tax Dispute Appeal - The Supreme Court has once again underscored the necessity of consistency in judicial pronouncements, particularly where identical legal issues and factual backgrounds are involved. The condonation of delay paves the way for substantive justice, but the affirmation of the previous dismissal establishes a clear precedent. Taxpayers and counsel should be vigilant in assessing the chances of success where the Supreme Court has already settled the issue in question.

05-02-2026 (2026) TaxCorp(VAT) 31521 (SC)

Supreme Court Bars Continuation of Pending Appeals Below Monetary Threshold as per Recent CBDT Circular; No Decision on Merits - In view of the explicit terms of the Circular dated 26.06.2024 and its binding effect, the Supreme Court has dismissed all pending appeals where the aggregate disputed tax amount is below the prescribed monetary limit. The dismissal is solely on the jurisdictional ground of the monetary threshold, without any adjudication on the merits of the issues involved. Practically, this means that such appeals cannot be continued or revived in the Supreme Court if they do not meet the threshold, irrespective of the substantive questions raised.

24-02-2026 (2026) TaxCorp(VAT) 31520 (HC-P&H)

High Court Rules on Timely Refunds: Interest on VAT Refunds Under Section 20 Must Cover Delay Including Approval Process - The Punjab and Haryana High Court has conclusively determined that interest on refunds under Section 20 of the Haryana Value Added Tax Act, 2003, must be calculated from the date of the refund application to the date of actual disbursement, including any time taken for administrative approval under Rule 42. This actionable conclusion obligates tax authorities to ensure prompt processing of refund applications and to avoid unnecessary delays in the approval process, as any such delay will not absolve the State from its liability to pay interest.

12-03-2026 (2026) TaxCorp(VAT) 31519 (HC-BOMBAY)

Bombay High Court Bars MVAT Refund Adjustment in Settlement Proceedings: Upholds Self-Contained Scheme and Natural Justice - The Bombay High Court decisively held that the Settlement Act is a self-contained code that does not permit the importation of refund adjustment provisions from the MVAT Act, specifically Section 50. Any settlement under the Settlement Act must be determined strictly in accordance with its provisions, and refunds due for prior years cannot be automatically adjusted against settlement dues for another year. Furthermore, settlement orders cannot be passed without granting the assessee a reasonable opportunity of being heard. Authorities must strictly adhere to the Settlement Act’s procedures and ensure compliance with natural justice before passing any adverse order.

09-02-2026 (2026) TaxCorp(VAT) 31518 (HC-KARNATAKA)

Karnataka High Court Refuses to Condon Delay of 847 Days in Sales Tax Revision Due to Absence of Satisfactory Explanation Beyond Routine File Movement - Given the absence of a credible or satisfactory explanation for the long intervals of inactivity, and the Court’s categorical rejection of routine file movement as an adequate ground, the application for condonation of the 847-day delay was dismissed. Consequently, the Sales Tax Revision Petition stood dismissed as being barred by limitation. Government departments and other assessees must ensure that every period of delay is supported by cogent, specific, and verifiable reasons if they seek condonation under Section 5 of the Limitation Act.

18-02-2026 (2026) TaxCorp(VAT) 31517 (HC-Tripura)

Tripura High Court Restricts Writ Interference, Orders Expeditious and Fair Departmental Inquiry Where Prima Facie Attribution Defect Found in Charges Against Tax Inspector - The present decision underscores that, while judicial intervention in ongoing departmental inquiries is to be exercised sparingly, a clear prima facie defect in the attribution of charges—such as an error in the alleged role or tenure of the accused—warrants limited but effective relief. The High Court’s approach was to facilitate a fair, time-bound inquiry without derailing the disciplinary mechanism, thus balancing the interests of justice with procedural discipline.

08-10-2025 NOTIFICATION 5(54)/Policy/VAT/2013/PF/545 & 553

Amendments in the Sixth Schedule of the Delhi Value Added Tax Act, 2004 ...

23-02-2024 NOTIFICATION No. S.O. 834(E)

Designated Indian Carrier - M/s SNV Aviation Private Limited (Akasa Air). ...

28-09-2022 NOTIFICATION No. F. No. 3(15)/Fin.(Exp.-I)/2022-23/DS-I/780

Amendment in Fourth Schedule of Delhi Value Added Tax Act, 2004 ...

01-08-2022 NOTIFICATION No. F. 10/21/2022-23/SRD/Fin/1920-1929

Seek to rescind the Notification No. F.3(107)/Fin.(Exp.-I)/2021-22/DS-I/295 dated the 10th November, 2021 ...

03-02-2022 CIRCULAR NO. 03 of 2021-22

DVAT returns for the quarter ending 31.12.2021 in Form DVAT-16, DVAT-17 and DVAT-48 along with required annexure/enclosures shall stand extended upto 12.02.2022 ...

17-12-2021 Circular No. F. No.5(4)Misc./L&J/2018-2019/2340-45

Clarification on limitation period for Remand Back Cases U/s 34(2) of DVAT Act 2004 ...

01-12-2021 NOTIFICATION No. F.10/45/2021-22/SRD/Fin/3221-3231

Amendments in the Fourth Schedule of the Delhi Value Added Tax, 2004 ...

10-11-2021 NOTIFICATION No. . F. 3(107)/Fin.(Exp.-I)/2021-22/DS-I/295

Amendment in Fourth Schedule of Delhi Value Added Tax Act, 2004 ...

02-08-2021 Circular No. F.3(636)/Policy/VAT/2026/657-64

Advised to adhere to the orders of the Hon'ble Supreme Court while dealing with the limitation period in respect of suo motu review, review, rectification, application and objection petition under the various provisions ...

18-08-2021 Circular No. F.7(420)/VAT/Policy/2011/PF/726-31

Filling of online return for first quarter of 2021-22-extension of thereof. ...

24-03-2021 NOTIFICATION No. F. 5(54)/Policy/VAT/2013/PF/491-502

Seeks to amend Sixth Schedule in the Delhi Value Added Tax Act, 2004 ...

30-07-2020 NOTIFICATION No. F. 3(20)/Fin.(Rev-I)/2020-21/DS-IV/39

Amendment in Fourth schedule of Delhi Value Added Tax, 2004 ...

09-06-2020 NOTIFICATION No. F.3(10)/Fin.(Rev-I)/2020-21/DS-VI/178

Amendment in Fourth Schedule in Delhi Value Added Tax Act, 2004 ...

15-05-2020 Circular No 03/2020/21

Circular regarding Order of Hon'ble Supreme Court dated 23-03-2020 for petition (civil) No. 3/2020. ...

04-05-2020 No. F.3(1) Fin.(Rev-I)/2019-20/DS-VI/149

Amendments in the Fourth Sechedule appended to S. No 12 and 13 ...

News & Views

Article - Input Service Distributor (ISD) under GST: Bridging Legal Framework and Practical Implementation

Article - Uniformity in Tax Law, Disparity in Practice: Examining the Impact of Tata Play v. Union of India on GST Limitation Periods

Article - Interrelation of Rule 39, Section 16 & Section 20 of the CGST Act, 2017: An Analytical Overview

Article - GST Implications on Cross-Border Secondment and Expatriate Employment: Legal Developments Post-NOS, Metal One, Alstom, Bharathi Cement, and Huawei

Article - Comprehensive Review of Amendments in the Finance Bill, 2026 as Passed by Lok Sabha

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Article - Analysis of Employee Secondment under GST: Differentiating Employer–Employee Services from Manpower Supply

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Article - Decoding GST Audit Triggers: Digital Surveillance, Compliance Pitfalls, and Practical Risk Mitigation in India's GST Framework

Article - Judicial Perspective on Cash Seizure During GST Search Operations

Article - Requirement to Pass an Order Under Section 129(3) of CGST Act, 2017 After Payment Under Section 129(5): Is It Still Mandatory?

Article - GST Implications on Director’s Remuneration and Rental Transactions: An Updated Analysis for 2025

Article - Mandatory Profession Tax Registration for GST Registered Assessees in Maharashtra: Key Provisions and Compliance Guide

Article - Comprehensive Analysis of the Interplay Between Section 122 and Sections 73 & 74 of the CGST Act, 2017

Article - Comprehensive Restructuring of Tobacco and Pan Masala Taxation in India Effective February 2026

Article - The State’s Right to Retain Amounts Collected Without Legal Authority

Article - Addressing Procedural Lapses in GST Returns: Rectification Beyond Limitation Where No Revenue Loss Occurs

Article - Major Policy Shift in GST for Exporters and Importers of Intermediary Services: Key Implications and Checklist

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10-04-2026 (2026) TaxCorp(IDT) 12267 (GST)

AAR : Gujarat AAR Clarifies GST Exemption for NSDC-Affiliated Digital Marketing Training Partners, Addresses Exemption Gap Period and Tax Regularisation

10-04-2026 (2026) TaxCorp(IDT) 12266 (GST)

AAR : Gujarat AAR Affirms ITC Eligibility for Foundation and Structural Supports of Process Equipment Under Section 17(5)(c) CGST Act

10-04-2026 (2026) TaxCorp(IDT) 12265 (GST)

AAR : Gujarat AAR Decides ITC Availability on RCC Foundations and Structural Supports Integral to Plant & Machinery for API Manufacturing

10-04-2026 (2026) TaxCorp(IDT) 12264 (GST)

HC : Karnataka High Court Rules B2B E-Commerce Operators Not Liable for TCS Deduction under Section 52 When Not Collecting Consideration

10-04-2026 (2026) TaxCorp(IDT) 12263 (GST)

GSTATDEL : GSTAT Delhi Affirms No Profiteering in Sobha Limited’s International City Project: Full Transaction in Post-GST Era Excludes Section 171 Liability

10-04-2026 (2026) TaxCorp(IDT) 12262 (GST)

AAR : Gujarat AAAR Affirms Technical Textile Classification for HDPE Geomembranes, Rejects Revenue’s Reliance on Raj Packwell and Similar Rulings

10-04-2026 (2026) TaxCorp(IDT) 12261 (GST)

AAR : Tamil Nadu AAAR Confirms ITC Block on Lease Assignment for Construction of Non-Qualifying Manufacturing Facility

10-04-2026 (2026) TaxCorp(IDT) 12260 (GST)

HC : Bombay High Court Rules Against Consolidated GST Show Cause Notices Across Multiple Years; Mandates Year-wise Notices for Alleged Fraudulent ITC Availment

07-04-2026 (2026) TaxCorp(IDT) 12259 (GST)

HC : Bombay High Court Restricts ITC Blocking under Rule 86A to Available Credit in ECL; Partial Quashing of Revenue’s Order on Procedural Grounds

07-04-2026 (2026) TaxCorp(IDT) 12258 (GST)

HC : Bombay High Court Halts GST Recovery, Orders Re-credit of Over Rs. 1.1 Crores to Refex Industries Due to Premature Ledger Debit in Violation of Statutory Timeline

07-04-2026 (2026) TaxCorp(IDT) 12257 (GST)

HC : Bombay High Court Restores GST Registration Cancelled for Bona Fide Delay in Filing Returns, Asserts Substantive Rights Over Procedural Lapses

07-04-2026 (2026) TaxCorp(IDT) 12256 (GST)

HC : Delhi High Court Upholds Clubbing of Multi-Year GST Demands in CCTV Works Contract Rate Dispute—Dismisses Writ, Directs Assessee to Appellate Remedy

03-04-2026 (2026) TaxCorp(IDT) 12255 (GST)

HC : Andhra Pradesh High Court Restricts Transit State GST Officers from Detaining or Confiscating Goods under IGST Act in Interstate Movement

03-04-2026 (2026) TaxCorp(IDT) 12254 (GST)

HC : Bombay High Court Affirms Statutory One-Year Limitation on ITC Blocking under Rule 86A(3) CGST Rules; Quashes Continued Attachment of NZS Traders Pvt. Ltd.’s Electronic Credit Ledger

03-04-2026 (2026) TaxCorp(IDT) 12253 (GST)

HC : Bombay High Court Sets Aside Negative Blocking of ITC, Orders Restoration of Rs. 1.42 Crores for Breach of Rule 86A CGST Rules

03-04-2026 (2026) TaxCorp(IDT) 12252 (Excise)

SC : Supreme Court Affirms Non-Excisability of Iron Ore Crushing and Screening: Process Not Treated as 'Manufacture' Under Central Excise Law

03-04-2026 (2026) TaxCorp(IDT) 12248 (GST)

HC : Bombay High Court Annuls Refund Rejection for Breach of Rule 92(3) and Violation of Natural Justice in ITC Export Case

07-04-2026 (2026) TaxCorp(IDT) 12245 (Service Tax)

CESTAT : CESTAT Kolkata Exonerates Air India from Service Tax on Promotional Tour Packages; Restricts Airport Service Tax to Statutory Providers Only Prior to July 2010

07-04-2026 (2026) TaxCorp(IDT) 12244 (Service Tax)

CESTAT : CESTAT Chandigarh Affirms CENVAT Credit Eligibility for Telecom Tower Inputs, Capital Goods, and Services: Indus Towers Ltd Appeals Succeed Following Bharti Airtel Supreme Court Ruling

03-04-2026 (2026) TaxCorp(IDT) 12241 (GST)

HC : Madras High Court Sets Aside GST Demand: Clarifies “Unbranded” Wheat Products with Statutory Manufacturer Details Not Liable to Tax as “Branded Goods”

07-04-2026 (2026) TaxCorp(IDT) 12240 (GST)

HC : Karnataka High Court Eases ITC Conditions: Bonafide Purchasers Not Liable for Supplier’s GST Default, Reads Down Section 16(2)(c) and Rule 36(4)

30-03-2026 (2026) TaxCorp(IDT) 12239 (GST)

SC : Supreme Court Permits Withdrawal of Article 32 Writ Against Composite Notice; Allows Fresh High Court Challenge in Light of Divergent HC Judgments

30-03-2026 (2026) TaxCorp(IDT) 12238 (GST)

GSTATDEL : GSTAT Upholds Rs. 19.86 Lakh Profiteering Against Jyothi Theatre for Not Passing GST Rate Reduction to Cinema-Goers; No Penalty Imposed Due to Retrospective Applicability

30-03-2026 (2026) TaxCorp(IDT) 12237 (GST)

GSTATDEL : GSTAT Delhi Orders LIC HFL Care Homes Ltd. to Refund Profiteered GST Benefit of Rs. 2.31 Crores with 18% Interest to 240 Homebuyers in ‘Jeevan Ananda’ Project

30-03-2026 (2026) TaxCorp(IDT) 12236 (GST)

HC : Bombay High Court Rules GST Inapplicable on Timber Auctions Concluded Pre-GST, Upholds Pre-GST Tax Liability Despite Post-GST Payment Window

30-03-2026 (2026) TaxCorp(IDT) 12235 (GST)

HC : Rajasthan High Court Nullifies Appellate Authority’s Ex Parte Order for Procedural Lapses, Directs Fresh Hearing with Proper Notice to Assessee

30-03-2026 (2026) TaxCorp(IDT) 12234 (GST)

HC : Bombay High Court Stays GST Recovery on Leasehold Rights Assignment by Microsoft India, Awaiting Supreme Court Clarification on Land Transfer vs. Supply of Service

30-03-2026 (2026) TaxCorp(IDT) 12233 (GST)

HC : Gujarat High Court Nullifies GST Order for Lack of Mandatory Hearings; Reiterates Section 75(4) Safeguards Taxpayer Rights

30-03-2026 (2026) TaxCorp(IDT) 12232 (GST)

HC : Gujarat High Court Mandates GST Refund on Cotton Seed Oil Cakes, Citing Exemption Under Notification No. 02/2017-CT (Rate)

30-03-2026 (2026) TaxCorp(IDT) 12231 (GST)

HC : Allahabad High Court Quashes GST Adjudication Order for Non-Service of Physical Notice Post Registration Cancellation; Reaffirms Statutory Right to Hearing

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