Supreme Court Upholds Constitutionality of Pre-Amendment West Bengal Entry Tax Act, Allows Petitioners to Seek Relief under 2025 Amendment - The Supreme Court’s decision reaffirms the constitutionality of the West Bengal Entry Tax Act, 2012, both in its original form and as amended by the West Bengal Finance Act, 2017. The Court made it clear that unless discrimination is specifically established, entry taxes are not unconstitutional. Petitioners aggrieved by the operation of the Act, as amended, are directed to seek appropriate remedies before the competent authority under the Amendment Act of 2025. Assessees should thus focus on statutory remedies under the current law, rather than constitutional challenges, unless they can demonstrate specific instances of discrimination.
Supreme Court Affirms Statutory Interest Liability at 12% on Odisha Entry Tax Dues Despite Extension for Payment - The Supreme Court’s decision makes it clear that extensions or administrative leniency in payment timelines do not absolve taxpayers from their liability to pay statutory interest under the Odisha Entry Tax Act, 1999. Taxpayers who avail themselves of additional time to pay tax dues must also factor in the corresponding interest liability that accrues under the statute. The protection from coercive action for the specified eight weeks is a temporary relief and does not diminish the underlying statutory obligations.
CESTAT Upholds Inter-State Sale Classification for Goods Moved from Maharashtra to Uttarakhand on Patanjali’s Purchase Orders; Penalty Set Aside - The CESTAT confirmed that the movement of goods from the appellant’s Indapur factory in Maharashtra to its Haridwar branch in Uttarakhand, pursuant to purchase orders from Patanjali, constituted an inter-State sale under Section 3(a) of the CST Act. The appellant failed to discharge its burden under Section 6A to prove that the movement was a mere branch transfer, as the movement was clearly occasioned by a prior contract of sale. However, the Tribunal set aside the penalty imposed, citing lack of due process.
Karnataka High Court Upholds Validity of ‘H’ Form Covering Multiple Quarters: Technical Objections Overruled in Deemed Export Turnover Case - The Karnataka High Court has authoritatively determined that an ‘H’ Form declaration encompassing turnovers from more than one quarter of a financial year is valid under Rule 12(10)(b) of the CST (R & T) Rules, 1957, particularly in light of the administrative relaxation provided by the Circular dated 11.04.2014. It is further clarified that, unless there is a specific statutory prohibition, technical objections based solely on the combination of quarterly turnovers in one declaration do not sustain if the transactions are otherwise correctly recorded and matched in the books of accounts and returns. Accordingly, the levy of additional tax on this technical ground is unsustainable.
CESTAT Delhi Rules Non-Monetary Perks, Such as Complimentary Room Nights and Food Discounts, Must Be Included in Service Tax Valuation for Leasing of Immovable Property - In light of Section 67 of the Finance Act, 1994, and the facts of the present case, any form of non-monetary consideration—including complimentary facilities or discounts—received by a service provider as part of a leasing or renting agreement must be included in the gross value for the purpose of service tax computation. Service providers must recognize that all forms of consideration, monetary or otherwise, are taxable and should be factored into service tax returns and calculations.
CESTAT Delhi Upholds Denial of CENVAT Credit: Insufficient Evidence on Service Utilization and Procedural Irregularities Post-Registration Surrender - The CESTAT Delhi’s decision reaffirms the principle that CENVAT credit can only be availed when documentary evidence incontrovertibly demonstrates both the receipt and utilization of input services in the manufacture of final products, within the period of valid registration. Claims based on post-surrender invoices or unsupported by matching evidentiary records will not be entertained. Taxpayers must ensure strict compliance with both substantive and procedural requirements to avoid denial of legitimate credits.
No Service Tax Liability on Services Rendered and Consumed in Jammu & Kashmir: CESTAT Chandigarh Rules POPOS Cannot Override Statutory Exclusion - The decision reinforces that, absent explicit statutory extension, service tax cannot be levied on transactions wholly confined to J&K, and attempts to employ subordinate rules like POPOS to bypass such statutory limitations are legally untenable. The regular and truthful disclosure by the assessee in statutory returns negates any justification for extended limitation or penal consequences. Tax authorities must adhere strictly to the jurisdictional boundaries and legislative intent of the parent statute.
Supreme Court Permits Withdrawal of Petition to Pursue Relief Under Amended West Bengal Sales Tax Settlement Scheme, 2025 - Based on the Supreme Court’s order, any petitioner with a pending sales tax dispute under the West Bengal Sales Tax regime may, upon the coming into force of the 2025 Amendment Act, withdraw related litigation and pursue the dispute settlement mechanism provided by the amended Act. The permission to withdraw is granted without prejudice, thereby ensuring that the petitioner’s substantive rights under the amended Act remain intact and are not foreclosed by the act of withdrawal.
Gujarat High Court Condones Two-Day Delay in VAT Amnesty Scheme Payment Due to Technical Glitch; Rejection Order Set Aside - The Gujarat High Court has categorically held that minor delays in payment under amnesty schemes, particularly when caused by technical issues on official portals and where there is clear evidence of bona fide intent and substantial compliance, should be condoned. The order rejecting the petitioner’s application under the “Vera Samadhan Yojna” on account of a two-day delay in payment of the last installment is quashed and the delay is condoned. Taxpayers facing similar circumstances should document their payment attempts and causes for delay to support their request for condonation.
Supreme Court to Examine Transition of Unutilised Input Tax Credit from UP VAT to GST for Registered Dealers with Closing Stock - The Supreme Court’s order to issue notice and club the present case with similar pending matters highlights the ongoing uncertainty regarding the eligibility to transition unutilised ITC from the U.P. VAT Act to the GST regime for dealers with closing stocks as of 30th June 2017. Registered dealers facing this issue should continue to maintain detailed records and substantiate their claim to transitional ITC, as the final outcome will have significant implications for their tax liability under GST.
Supreme Court Upholds Deduction of Sub-Contractor Payments from Taxable Turnover for VAT on Works Contracts—Absence of Direct Deduction Provision Not a Bar - The Supreme Court’s decision provides clear actionable guidance: where a main contractor executes a works contract and sub-contracts part of the work, the payments made to the sub-contractor must be deducted from the total contract value for the purpose of VAT calculation. This principle applies even in the absence of an explicit deduction provision in the statute, by virtue of the legal nature of works contracts and the mechanism of deemed sale through accretion as recognized by law.
Gujarat High Court Rules Mere Bifurcation of Sale Price as 'Tax Component' Does Not Attract Section 56 Penalty Where No Tax Collected During Exemption Period - On the basis of the present decision, it is clear that mere bifurcation of sale price to reflect a hypothetical sales tax component, when no such tax is actually charged or collected during a valid exemption period, cannot attract penalty under section 56 of the Gujarat Sales Tax Act. Assessees must ensure that their books reflect the true nature of transactions and that any accounting entries made for internal or audit purposes are clearly explained and, where necessary, reversed to match statutory compliance standards. Revenue authorities are expected to base their actions on substantive evidence of collection, not on notional or accounting treatments alone.
Punjab & Haryana High Court Upholds Retrospective Interest Liability on Additional Tax Demands Arising from Revisional Orders under HVAT Act - Based on the prevailing legal position and binding precedent, the Court concluded that interest on additional tax liabilities determined through revisional orders under the HVAT Act must be calculated retrospectively from the original due date of tax, and not merely from the date of the revisional order. The revenue’s appeal was thus allowed, setting a clear and actionable direction for tax authorities and assessees alike.
Supreme Court Allows Withdrawal of Petition Challenging Pre-Amendment West Bengal Entry Tax Act; Directs Parties to Seek Relief under 2025 Amendment - In summary, the Supreme Court’s order in this matter underscores the importance of exhausting statutory remedies provided by subsequent legislative amendments before invoking the writ jurisdiction of the apex court. The petitioner is now directed to approach the competent authority under the West Bengal Amendment Act of 2025 for redressal of grievances. This approach preserves judicial economy and allows for specialized forums to address complex tax disputes at the first instance. Assessees with similar grievances should carefully assess the reliefs available under the amended statute before seeking judicial intervention.
Gauhati High Court Affirms Mandatory Submission of ‘C Form’ for Sales Tax Rebate: Strict Interpretation of Exemption Clauses Upheld - Based on the clear statutory framework and binding Supreme Court precedent, the Gauhati High Court concluded that the petitioner’s failure to submit the requisite “C Form” was fatal to their claim for exemption/rebate under Section 8(5) of the CST Act. Administrative recommendations or eligibility certificates cannot override the mandatory statutory requirements. The writ petition was accordingly dismissed.
Gujarat High Court Nullifies Tribunal Order for Failing to Address Appellant’s Core Issues—Mandates Strict Adherence to Principles of Natural Justice - The Gujarat High Court’s decision underscores the imperative for appellate authorities to meticulously examine and adjudicate each ground raised by appellants. Before passing any order, tribunals and quasi-judicial bodies must ensure comprehensive consideration and reasoned disposal of all issues presented. Failure to do so will render their orders liable to be set aside for breach of the principles of natural justice. Practitioners and litigants should meticulously document and reiterate all grounds of appeal to safeguard their right to a fair hearing.
Gujarat High Court Bars Recovery of Company’s VAT Dues from HUF-Owned Leased Property: Lessor-Lessee Relationship Does Not Confer Ownership - This decision emphatically clarifies that revenue authorities cannot recover company tax dues by attaching or auctioning properties belonging to the HUF, even if some HUF members are directors of the defaulting company. The only relationship between the HUF and the company being that of lessor and lessee, there is no legal foundation for treating the property as that of the company. Effective recovery action must be confined to property actually owned by the taxable entity unless statutory exceptions apply.
Allahabad High Court Clarifies Interstate Sale Criteria Under CST Act: Stock Transfer of Coal from Assam to UP Not Eligible for Section 6(2) Exemption - The Allahabad High Court concluded that the transaction in question was not a sale or purchase in the course of interstate trade or commerce, but merely a stock transfer from Assam to Uttar Pradesh. Accordingly, the revisionist was ineligible to claim exemption under Section 6(2) of the CST Act. All forms submitted for the purpose of claiming such exemption, specifically Form C, E-1, and related forms, were deemed inappropriate. The actionable takeaway is that dealers must ensure the correct classification of their transactions and use the appropriate statutory forms—specifically, Form F in the case of stock transfers.
Patna High Court Condones Delay and Allows Appeal in Toner and Cartridge Taxation Dispute, Citing Parity with Savex Technologies Case - The Patna High Court’s decision represents a clear application of the doctrine of judicial precedent, ensuring consistency in the treatment of identically situated appellants. By condoning the delay and allowing the appeal on merits, the Court provided effective relief in line with its previous pronouncement in the Savex Technologies case. Assessees facing similar factual and legal circumstances can take actionable steps to seek parity of treatment in their appeals or pending matters, particularly where issues have already been adjudicated favorably by a higher judicial forum.
Allahabad High Court Quashes Penalty for Seizure of Goods Due to Blank Form-38; No Evidence of Tax Evasion in Non-Sale Goods - This decision establishes that the mere detection of a blank Form-38 during the movement of goods does not, in itself, constitute sufficient grounds to allege tax evasion, particularly where there is no evidence suggesting the goods were intended for sale. Authorities must exercise due process and should require the completion of documentation as per legal requirements, rather than presuming malafide intent and proceeding to penal action without substantive evidence.