TaxCorp GST/VAT

VAT/GST Highlights

02-02-2026 (2026) TaxCorp(VAT) 31492 (HC-CALCUTTA)

Calcutta High Court Clarifies: No Successive Revisions Permitted under West Bengal VAT Act When Both Officers Act as Commissioner’s Delegates - The Calcutta High Court held that where a revisional order is passed by a Joint Commissioner under Section 86 of the West Bengal Value Added Tax Act, 2003, acting as a delegatee of the Commissioner, it cannot be subjected to a further revision under Section 85 by a Senior Joint Commissioner who is also a delegatee of the Commissioner. Any such attempt at successive revision is contrary to the statutory scheme and risks creating an endless cycle of revisions, which the legislature did not intend. Taxpayers and authorities must recognize that the revisional authority, once exercised by the Commissioner or his delegatee, is final except as otherwise expressly provided by statute.

28-01-2026 (2026) TaxCorp(VAT) 31491 (HC-AP)

Telangana High Court Upholds Dealer’s Right to Sales Tax Deferment Till Cancellation of Eligibility Certificate; State Barred from Retrospective Recovery - The Telangana High Court’s decision makes it clear that where a dealer holds a valid eligibility certificate for sales tax deferment and acts in reliance upon it, the State cannot retrospectively cancel the benefit or seek recovery of tax for the period when the certificate was operative and duly followed. Any cancellation of such benefits will operate only prospectively from the date specified in the cancellation order. Dealers in similar circumstances should ensure strict compliance with the terms of the certificate and refrain from collecting tax during the deferment period to avail protection under the law.

08-01-2026 (2026) TaxCorp(VAT) 31490 (HC-DELHI)

Delhi High Court Directs Interest on Delayed VAT Refund from Statutory Due Date, Citing Mandatory Notice and Fresh Assessment Adjudication - The Delhi High Court’s decision reinforces the principle that the right to interest on delayed tax refunds is not discretionary, but a statutory entitlement under the DVAT Act. Authorities are bound to adhere to statutory timelines and procedural safeguards, failing which interest becomes payable from the date the refund was due, irrespective of when the refund is actually made. The actionable takeaway is that assessees must vigilantly track statutory timelines for refunds and assert their right to interest in cases of delay, supported by the legal precedents affirmed in this decision.

27-01-2026 (2026) TaxCorp(VAT) 31489 (HC-BOMBAY)

Bombay High Court Reiterates Secured Creditors’ Priority Over State Dues Upon CERSAI Registration, Rejects Distinction Sought by State Authorities - The Bombay High Court has decisively reaffirmed that, where a secured creditor has duly registered its security interest with CERSAI, its dues must be satisfied in priority to all other claims, including those of State authorities. Any attempt to create exceptions or distinctions among various types of state dues is contrary to the express provisions and legislative intent of Section 26E of the SARFAESI Act. Financial institutions should, therefore, ensure timely registration with CERSAI to avail themselves of this statutory priority.

19-01-2026 (2026) TaxCorp(VAT) 31488 (HC-DELHI)

Delhi High Court Annuls Order for Lack of Proper Notice Service—Remands Matter for Fresh Hearing with Audi Alteram Partem Safeguards - On the basis of the current decision, it is clear that service of statutory notices through mere uploading on a portal, without ensuring actual or constructive knowledge to the assessee, does not satisfy the requirement of proper service under tax law. The Court’s decision mandates that authorities must adopt methods of notice service that guarantee effective communication to the concerned party. Orders passed without such service are liable to be set aside and the matter remanded for fresh adjudication with an opportunity of personal hearing.

19-01-2026 (2026) TaxCorp(VAT) 31487 (HC-BOMBAY)

Bombay High Court Quashes Bank Account Freeze: No Tax Recovery from Director of Amalgamated Company Where Order Passed Against Non-Existing Entity - Based on the above reasoning, the Bombay High Court quashed the order freezing the petitioner’s bank account. The Court declared that tax authorities cannot enforce recovery proceedings against the directors of a company that has ceased to exist on account of amalgamation, especially where the director had resigned prior to the period in question. The proper course for the authorities, if any liability survives, is to proceed against the amalgamated entity.

15-01-2026 (2026) TaxCorp(VAT) 31486 (HC-KERALA)

Kerala High Court Quashes Penalty for Bona Fide Claim of CST Exemption on Import-Linked Sale - The Kerala High Court’s decision affirms that where an assessee’s sale is inextricably linked to an import, with complete disclosure and a bona fide claim of exemption under Section 5(2) of the CST Act, penalty for suppression cannot be justified under Section 67 of the KVAT Act. The ruling mandates that authorities must distinguish between deliberate suppression and bona fide claims, especially where the law and precedent support the exemption.

31-12-2025 (2026) TaxCorp(VAT) 31485 (HC-AP)

Telangana High Court Invalidates Revisional Order as Time-Barred Under APGST Act: Tribunal Lacks Authority to Review Own Orders - In light of the statutory limitation prescribed by Section 24-A of the APGST Act, the Telangana High Court held that both the impugned orders were time-barred and thus invalid. The Court set aside the Tribunal’s and the revisional authority’s orders, reaffirming that the three-year limitation period is absolute and cannot be circumvented by reference to the general four-year period provided for assessments under Section 14. Tax authorities and quasi-judicial bodies must strictly comply with the statutory timelines laid down for revisionary and reassessment actions.

19-01-2026 (2026) TaxCorp(VAT) 31484 (HC-CHHATTISGARH)

Chhattisgarh High Court Quashes CST Assessment for Non-Furnishing of C-Forms Due to Purchaser's Lapse, Orders Fresh Decision by Assessing Authority - The decision underscores the necessity of strictly adhering to the procedural requirements of the CST Act and Rules while balancing the principles of natural justice. Where C-Forms are not furnished due to circumstances beyond the seller’s control, and such forms are subsequently produced, authorities must reconsider the assessment. Dealers should ensure timely follow-up with purchasers for C-Forms but, in the event of subsequent submission, are entitled to a fresh adjudication on concessional rate claims.

06-01-2026 (2026) TaxCorp(VAT) 31483 (HC-GAUHATI)

Gauhati High Court Strikes Down Penalty for Delay in VAT Audit Report Due to Limitation Bar: Assessment Orders Set Aside for 2005-08 - It is actionable and imperative for tax authorities to strictly adhere to the limitation period prescribed under Section 39 of the Assam VAT Act, 2003, for making assessments under Sections 35 and 36. Any assessment or penalty order issued beyond the five-year limitation period, in the absence of prosecution for an offence under the Act, is without jurisdiction and liable to be set aside. Assessees facing similar delayed proceedings should challenge such actions as being time-barred.

16-01-2026 (2026) TaxCorp(VAT) 31482 (SC)

Supreme Court Permits Withdrawal of Multiple SLPs; Petitioners Directed to Approach Competent Authority under Amendment Act, 2025 - The Supreme Court has facilitated the expeditious resolution of the petitioners’ grievances by permitting the withdrawal of their Special Leave Petitions and directing them to avail statutory remedies under the Amendment Act, 2025. State authorities are bound to process such applications in accordance with the new legislative framework, ensuring that the petitioners’ rights are preserved and adjudicated as per the amended law.

09-01-2026 (2026) TaxCorp(VAT) 31481 (HC-P&H)

Punjab & Haryana High Court Upholds Strict Compliance for Sales Tax Exemption: Registration With Industries Department Mandatory for Expanded Units Under Rule 28C - The decision of the Punjab and Haryana High Court underscores that strict compliance with the requirements of Rule 28C of the Haryana General Sales Tax Rules, 1975, as clarified and amended by relevant notifications, is essential for availing sales tax concessions. Specifically, units seeking concession on expansion must secure separate registration with the Department of Industries as of the notified cut-off date, and merely informing authorities of the intention to expand is insufficient. The Court’s ruling affirms the necessity for assessees to meticulously adhere to the procedural formalities prescribed under statute and departmental notifications.

09-01-2026 (2026) TaxCorp(VAT) 31480 (HC-AP)

Telangana High Court Affirms: Bulldozer Hire Charges for Land Development Classified as Service, Not Transfer of Right to Use under APGST Act - The Telangana High Court has unequivocally determined that hire charges received for bulldozers operated by the respondent’s personnel for land development, even when billed on an hourly basis, represent consideration for a composite works contract and not a transfer of right to use goods under Section 5(E) of the APGST Act. This actionable principle directs assessees and tax authorities to carefully distinguish between service contracts and transfers of right to use goods, focusing on the actual transfer of possession and control as per Supreme Court guidelines.

07-01-2026 (2026) TaxCorp(VAT) 31479 (HC-MADRAS)

Madras High Court Rules in Favor of Assessee: Domestic Manufacture of Car Audio Systems Attracts Lower Tax Rate Despite Imported Components - The Madras High Court allowed the revision petition, setting aside the Tribunal’s order and restoring the First Appellate Authority’s decision. It conclusively held that car audio systems manufactured in India, even if using imported components, are to be taxed at the rate applicable to domestically produced goods. The Court answered the substantial questions of law in favor of the assessee and against the Revenue.

06-01-2026 (2026) TaxCorp(VAT) 31478 (HC-GAUHATI)

Gauhati High Court Upholds Superintendent’s Power to Compound VAT Offences Under Delegated Authority: Refund Petition Denied Where Offence Admitted and Composition Paid - On a holistic consideration of the facts and the law, the Gauhati High Court concluded that the Superintendent of Taxes was fully authorized to compound the offence under Section 89 of the Assam VAT Act, 2003, following the valid delegation of powers. The petitioner company, having expressly admitted the offence and voluntarily paid the composition sum, could not later seek a refund on those funds. Assessees must be cautious in making such admissions and payments, as these are final and binding upon acceptance by the authority.

30-12-2025 (2026) TaxCorp(VAT) 31477 (HC-AP)

Telangana High Court Nullifies Tax Assessment Due to Lack of Statutory Authorization; Proceedings Remitted to Audit Stage - The High Court’s order is explicit: any audit or assessment proceedings under the APVAT Act undertaken without proper written authorization are void ab initio. The authorities are directed to recommence proceedings strictly from the audit stage, this time ensuring compliance with the statutory mandate for authorization. The question of taxpayer liability must be decided afresh by examining the contract in question, and all interim payments are to be adjusted after the conclusion of valid proceedings.

19-11-2025 (2026) TaxCorp(VAT) 31476 (HC-KARNATAKA)

Karnataka High Court Quashes Delayed Suo Motu Revision under Section 64 of KVAT Act for Tax Period 2011-12: Limitation and Reasonableness of Delay Decisive - The Karnataka High Court concluded that the initiation of suo motu revision proceedings by issuance of notice under Section 64(1) of the KVAT Act, after such an inordinate and unexplained delay, was arbitrary and unreasonable even if technically within the limitation period. The failure of the Revenue to justify the prolonged inactivity was deemed material, and as such, the Court set aside the proceedings, holding that the exercise of revisionary power must satisfy both the statutory limitation and the test of reasonableness in the context of the facts and circumstances of each case.

07-11-2025 (2026) TaxCorp(VAT) 31475 (HC-AP)

High Court Denies Writ Relief as Revisional Authority Duly Addresses High Sea Sales Issue and Grants Partial Tax Relief - Based on the above, the High Court concluded that there was no merit in the petitioner’s claim that the Revisional Authority failed to consider the high sea sales issue or acted in breach of judicial directions. The authorities had complied with the earlier order and extended substantial tax relief. In view of the efficacious alternative remedy of appeal, the writ petition was dismissed, reserving liberty to the petitioner to file a statutory appeal if so advised.

24-12-2025 (2026) TaxCorp(VAT) 31474 (HC-AP)

Andhra Pradesh High Court Directs Consideration of Filed H-Forms in Escaped Turnover Assessment for Rice Exports under Section 5(1) of CST Act - On the basis of the records and legal precedents, the Andhra Pradesh High Court concluded that the petitioner is entitled to the benefit of exemption for the disputed turnover since the H-forms were duly filed and acknowledged, albeit as xerox copies. The authorities are directed to reconsider the assessment taking into account the H-forms submitted and to extend the benefit of exemption under Section 5(1) of the CST Act.

15-12-2025 (2025) TaxCorp(VAT) 31473 (HC-KERALA)

Kerala High Court Quashes KVAT Tax Demand on SIM Cards and Digital Services, Citing Limitation and Non-Taxability of Intangibles - Based on the current decision, taxpayers facing VAT demands on telecommunication and digital services in Kerala should carefully examine whether the alleged supply qualifies as “goods” under the KVAT Act, especially in light of binding court precedents. Actions should be taken to challenge any such assessments, particularly where the issue is squarely covered by judicial pronouncements excluding these intangibles from VAT.

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 ...

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10-02-2026 (2026) TaxCorp(IDT) 11953 (Service Tax)

HC : Bombay High Court Upholds CESTAT Order: No Nexus Required Between Input and Output Services for Refund of Unutilised ITC on Export of Services under Notification No. 5/2006

10-02-2026 (2026) TaxCorp(IDT) 11952 (VAT)

SC : Supreme Court Upholds Delhi HC Ruling: Exemption under CST Act Section 6(2) Valid for Second Interstate Sale Even if First Sale was Exempt

10-02-2026 (2026) TaxCorp(IDT) 11951 (GST)

HC : Bombay High Court Quashes Lessor’s Recovery of Interest on Delayed GST Due to Non-Issuance of Tax Invoice in Industrial Land Lease Transfer

10-02-2026 (2026) TaxCorp(IDT) 11950 (GST)

HC : Gujarat High Court Rules: No Writ Jurisdiction to Extend Time for GST Appeal Beyond Statutory Limit; Strict Adherence to Section 107(4) Mandated

10-02-2026 (2026) TaxCorp(IDT) 11949 (GST)

HC : Allahabad High Court Clarifies: Composite Show Cause Notice Under Section 73/74 May Encompass Multiple Tax Periods and Noticees, Limitation to Be Calculated from Earliest Financial Year

10-02-2026 (2026) TaxCorp(IDT) 11948 (GST)

HC : Delhi High Court Affirms Validity of Summons Issued under Section 70 CGST Act, Finds Petition to Quash Summons Premature at Inquiry Stage in Biri Trader’s Case

10-02-2026 (2026) TaxCorp(IDT) 11947 (GST)

HC : Telangana High Court Sets Aside Denial of GST Refund on Export of IT Services: Absence of Clear Findings on Intermediary Status Under IGST Act

05-02-2026 (2026) TaxCorp(IDT) 11946 (GST)

SC : Supreme Court Upholds Jharkhand HC Order for Refund of Compensation Cess to SAIL, Dismisses State’s Appeal Due to Unexplained Delay and Lack of Merit

05-02-2026 (2026) TaxCorp(IDT) 11945 (GST)

HC : Jharkhand High Court Orders State Tax Authorities to Process Unutilised Compensation Cess Refund to Steel Authority of India, Rebukes Violation of Natural Justice and Stresses Mandatory Interest

05-02-2026 (2026) TaxCorp(IDT) 11944 (GST)

HC : Andhra Pradesh High Court Invalidates Bank Attachment for ITC-Related Interest Recovery Without Prior Adjudication Under GST Law

03-02-2026 (2026) TaxCorp(IDT) 11943 (GST)

HC : Andhra Pradesh High Court Rules Transfer of R&D Unit as Going Concern Not Taxable Supply Under GST, Allows ITC Transfer to Transferee Unit

03-02-2026 (2026) TaxCorp(IDT) 11942 (GST)

HC : Delhi High Court Quashes GST Demand Over Invalid Service of SCN via Inaccessible Portal Tab, Orders Fresh Adjudication with Personal Hearing

03-02-2026 (2026) TaxCorp(IDT) 11941 (GST)

HC : Madras High Court Restores GST Registration Cancelled for ‘Nil’ Returns, Recognizes Genuine Hardship Cited by Assessee

03-02-2026 (2026) TaxCorp(IDT) 11940 (GST)

HC : Madras HC Quashes Ex Parte GST Assessment for Inadequate Service: Mandates Use of Alternative Statutory Modes Beyond GST Portal Notices

03-02-2026 (2026) TaxCorp(IDT) 11939 (GST)

HC : Gujarat High Court Upholds Mandatory GST Appellate Tribunal Appeal Route, Denies Writ Petition Against Section 74 and 107 Orders

02-02-2026 (2026) TaxCorp(IDT) 11938 (GST)

HC : Calcutta High Court Quashes GST Demand on Dicalcium Phosphate: Adjudication Order Set Aside for Exceeding Show Cause Notice Scope

02-02-2026 (2026) TaxCorp(IDT) 11937 (GST)

HC : Gujarat High Court Nullifies GST Detention Order for Delay in Portal Upload and Violation of Assessee’s Right to Personal Hearing

02-02-2026 (2026) TaxCorp(IDT) 11936 (GST)

HC : Madhya Pradesh HC Grants Bail to GST Consultant Accused Under CGST Act Post Completion of Investigation Citing Supreme Court Precedent

02-02-2026 (2026) TaxCorp(IDT) 11935 (GST)

HC : Orissa High Court Refuses Writ Relief for GST Adjudication, Directs Assessee to Mandatory GSTAT Appeal Within Prescribed Timelines

02-02-2026 (2026) TaxCorp(IDT) 11934 (Service Tax)

SC : Supreme Court Upholds CESTAT's Relief to IIM Bangalore on Penalty, Confirms Service Tax Demand for PG Courses; Revenue's Delayed Appeal Dismissed

02-02-2026 (2026) TaxCorp(IDT) 11933 (GST)

HC : Kerala High Court Affirms Portal-Based Notice Service as Legally Sufficient, Upholding Dismissal of Writ Appeals

02-02-2026 (2026) TaxCorp(IDT) 11932 (GST)

HC : Bombay High Court Orders Revival of GST Registration, Citing Violation of Assessee’s Right to Hearing and Absence of Outstanding Dues

02-02-2026 (2026) TaxCorp(IDT) 11931 (GST)

HC : Strict Adherence to GST Appeal Limitation: Gujarat High Court Declines to Condone Delay Beyond Statutory Cap, Rejects Assessee’s Pleas

02-02-2026 (2026) TaxCorp(IDT) 11930 (GST)

SC : GST Notice Uploaded on Portal Constitutes Valid Service: Supreme Court Upholds Kerala High Court Decision

02-02-2026 (2026) TaxCorp(IDT) 11929 (GST)

HC : Madras High Court Sets Aside Bank Attachment of Former Directors in Company Under Liquidation: Personal Liability under Section 88(3) GST Act Requires Strict Pre-conditions

02-02-2026 (2026) TaxCorp(IDT) 11928 (Service Tax)

HC : Karnataka High Court Affirms Service Tax Exemption for Works Contract Services Related to Private Railway Infrastructure in JSW Steel Case

03-02-2026 (2026) TaxCorp(IDT) 11927 (GST)

HC : GSTAT Upholds Rs. 1 Crore Profiteering Against Transcon Sheth Creators for Non-Passing of ITC Benefits in Mumbai Real Estate Project; Refund with Interest Ordered to Homebuyers

03-02-2026 (2026) TaxCorp(IDT) 11926 (GST)

HC : GSTAT Delhi Upholds Profiteering Charge against PAN Realtors: Refund of ITC Benefit Ordered for Pre-OC Homebuyers in "PAN Oasis"

03-02-2026 (2026) TaxCorp(IDT) 11925 (GST)

HC : GSTAT Delhi Orders Kolte Patil Developers to Refund Profiteered GST Amount with Interest to Homebuyers within Three Months

03-02-2026 (2026) TaxCorp(IDT) 11924 (GST)

AAR : Kerala AAR Confers GST Exemption on Clinical Dermatology Services for Treatment of Skin Ailments, Excludes Purely Cosmetic Procedures

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