#Taxation

The Patna HC held that post-registration, authorities lack jurisdiction to levy deficit stamp duty under Section 47-A(1) of the Indian Stamp Act and quashed the orders demanding it. It directed refund of any pre-deposited amounts within eight weeks, affecting buyers, sellers and revenue officials in Bihar.

CESTAT held that airline cancellation fees are liquidated damages, not a separate service taxable under Section 66E(e) Finance Act 1994. The ruling exempts airlines from paying service tax on penal charges, affecting carriers and passengers.

The CESTAT set aside ₹42 crore of service tax demands on MP Online Ltd., holding that OIDAR tax applies only when the service provider owns the data. It also ruled that interest on fixed deposits and educational services remain exempt from service tax.

ITAT Jaipur held that Section 87A rebate is available on short-term capital gains under the new tax regime, directing AO to allow Rs 25,000 rebate. This lets STCG earners under the new regime claim the rebate, cutting their tax outflow.

Tax proceedings can be initiated against a legal representative after a taxpayer's death under Section 93 CGST Act if conditions are met. The department must account for ₹15.4 lakh seized from the deceased's premises within three weeks.

Duty free shops cannot claim automatic exemption from regulatory laws merely operating beyond the customs barrier, Bombay High Court held. It affirmed that drugs and cosmetics remain under regulatory control despite customs barrier fiscal exemptions.

CESTAT Chennai ruled that processed milk is an intermediate product, not an exempted final product, so Rule 6 of the CENVAT Credit Rules does not trigger credit reversal. The decision sets aside the tax demand on Lotte India, clarifying that captive consumption of processed milk in confectionery manufacture does not attract CENVAT credit liability.

A payer’s residence alone does not trigger tax under Sec 5(2)(b) absent a business connection in India, the Delhi HC ruled, quashing Rs 783 crore of TDS demands on pharma firms. The ruling clarifies source rule, shielding payments from unjust tax claims.

The Gauhati HC held a Section 73(2) CGST show cause notice dated 29 Nov 2024 timely as three months remained after excluding the notice date, letting the appellant reply. This clarifies the GST notice limitation period and affects taxpayers.

The Gujarat High Court held corporate guarantees are not a supply under the CGST Act, striking down Rule 28(2) and related CBIC circulars. Consequently, issuers of such guarantees are exempt from GST, removing the tax burden nationwide.

CESTAT ruled that royalties for pre-installing Microsoft operating systems are not ‘IPR services’, rendering the service-tax demand invalid and time-barred because tax cannot be levied before 16 May 2008 or after the limitation period. The decision shields hardware manufacturers that bundle OS software.

The Supreme Court ruled that fitting together imported CKD components at Xerox’s warehouse does not amount to ‘manufacture’ within Section 2(f) of the Central Excise Act, shielding the company from excise duty and penalty. This clarifies that mere assembly of knocked-down parts is outside the scope of central excise liability.

The tribunal quashed a Rs 89.13 lakh service tax demand, holding that royalty payable under a mining lease granted before 1 April 2016 falls outside the service tax net. It also ruled that the extended limitation period cannot be invoked, benefiting entities with pre-2016 mining assignments.

CESTAT ruled that the freight concession granted to UltraTech under the LWIS does not constitute consideration for a taxable service, overturning service tax, interest and penalty demands. Consequently, entities receiving similar concessions are exempt from service tax liability.

ITAT Pune quashes reassessment notice u/s 148 for AY 2015-16 after harmonious construction of Section 149(1) provisos. The ruling underscores strict compliance with limitation periods in reassessment proceedings, impacting taxpayers facing similar notices.