The Supreme Court held that excavators, dumpers, loaders, and other heavy earth-moving machinery used exclusively within a factory or enclosed premises are not “motor vehicles” under the Motor Vehicles Act.
Allowing Ultratech Cement’s appeal, the Court ruled that such off-road construction equipment is not liable to road tax, as taxation applies only to vehicles suitable for use on public roads.
However, the Court clarified that if such machinery is used on public roads, tax and penalties may apply.
[Ultratech Cement Ltd v. State of Gujarat & Ors.]
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The Central government told the Delhi High Court that courts cannot order a GST reduction on air purifiers, arguing it would violate the doctrine of separation of powers.
The statement came in response to a PIL that sought to classify air purifiers as medical devices and cut GST from 18% to 5%.
The Centre said the GST Council is the only constitutional body authorised to decide GST rates under Article 279A. It stressed that tax rate decisions follow a consensus-based cooperative federalism process between the Union and States, balancing fiscal priorities, and judicial directions would override this framework.
The High Court will hear the matter again on January 9.
4 days ago
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The Delhi High Court refused to cancel the bail granted to Kamal Kishore Aggarwal in a ₹72 crore GST evasion case, criticising the Directorate General of GST Intelligence for its failure to complete the investigation even after more than five years.
The Court noted that no criminal complaint had been filed since the probe began in 2020 and held that the accused could not be subjected to unending incarceration due to the department’s inaction.
It observed that the accused had not misused the liberty granted to him and that continued custody was unjustified.
Emphasising the right to personal liberty, the Court declined to interfere with the bail order and remarked that the department showed greater interest in custody than in concluding the proceedings.
[Directorate General of GST Intelligence v. Kamal Kishore Aggarwal]
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The Central Board of Indirect Taxes and Customs (CBIC) has notified a new retail sale price (RSP)-based valuation mechanism and revised GST framework for pan masala, cigarettes, cigars, and other tobacco products, effective from February 1, 2026.
Under the new regime, these products will attract a 40% GST rate, along with amendments to the GST Rules.
The move is part of a phased plan to withdraw the Compensation Cess on pan masala, tobacco, and allied products, for which a nil rate has been prescribed.
The changes aim to streamline valuation, curb tax evasion, and rationalise indirect taxation on sin goods.
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The Gujarat High Court has quashed the reopening of an income tax assessment under Section 148A of the Income Tax Act, holding that the Assessing Officer cannot initiate reassessment proceedings by conducting a roving or fishing inquiry.
The Court observed that the assessee had already furnished all relevant details sought by the tax authorities and that reopening the assessment without fresh tangible material amounted to an abuse of process.
The Court said Section 148A does not permit reassessment merely on suspicion or for verification purposes.
It held that reassessment proceedings must be based on specific information suggesting income escapement, and not on a general desire to re-examine concluded assessments.
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The Gujarat High Court refused to condone a delay in filing a GST appeal, rejecting claims of the illness of an accountant and closure of business as “lame excuses.”
The Court held that under Section 107 of the CGST Act, the maximum condonable period is 120 days, beyond which neither the appellate authority nor the High Court can grant relief.
Filing the appeal even six days beyond the outer limit was fatal.
Emphasising strict adherence to statutory timelines, the Court dismissed the plea and declined to interfere under writ jurisdiction.
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After 21 years, the Delhi High Court upheld the levy of withholding tax on a portion of LG Electronics India’s sponsorship payments for the 2003 ICC Cricket World Cup.
The Court held that one-third of the USD 11 million payment amounted to “royalty” for the right to use ICC trademarks, taxable under Indian law and the India–Singapore DTAA.
Rejecting LG’s argument, the Court observed that the use of ICC marks was not incidental to advertising but involved substantive and global trademark rights under the sponsorship agreement.
[LG Electronics v. Department of Income Tax]
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The Delhi High Court heard the Centre’s objections to a PIL seeking a reduction of GST on air purifiers from 18% to 5% by treating them as medical devices.
The Centre argued that granting such relief without routing it through the GST Council would trigger constitutional concerns and open a “Pandora’s Box” of similar demands.
The Court agreed that the issue requires deliberation by the GST Council and granted the Centre ten days to file a detailed counter-affidavit.
On December 24, the Court had urged the GST Council to consider an urgent meeting on the issue amid Delhi’s pollution crisis. The matter is listed for January 9, 2026.
[Kapil Madan v. UOI & Ors.]
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The Delhi High Court has urged the GST Council to convene an urgent meeting to consider reducing GST on air purifiers from 18% to 5%, noting Delhi’s severe air pollution crisis.
The Court observed that if clean air cannot be ensured, lowering GST is the minimum relief citizens deserve.
Referring to parliamentary recommendations, it also asked the Council to examine whether air purifiers can be classified as medical devices for tax purposes.
Stressing the urgency of the issue, the Court said the matter would be reviewed shortly in view of escalating pollution levels and public health concerns.
[Kapil Madan v. UOI & Ors]
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The Kerala High Court has held that the levy of service tax on access to amusement facilities is unconstitutional, as the activity falls exclusively within the State’s taxing domain.
The Court said that the entire activity falls within the State’s exclusive taxing power under Entry 62 of List II of the Constitution, which covers taxes on entertainments and amusements.
It observed that once the activity is squarely classifiable as entertainment, the Union cannot impose service tax on the same transaction. Such a levy, the Court said, amounts to encroachment upon the State’s legislative field and violates the constitutional scheme governing distribution of taxing powers.
Accordingly, the service tax demand was struck down.
[Amusement Facility Operator v. UOI]
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The Delhi High Court has agreed to examine whether Goods and Services Tax (GST) can be levied on medicines and consumables supplied to patients as part of in-patient hospital treatment.
The notice was issued in a writ petition filed by Escorts Heart Institute and Research Centre Limited, a subsidiary of Fortis Healthcare, challenging a GST demand of ₹6.66 crore, along with interest and penalty.
The hospital contends that such supplies are inseparable from healthcare services, which are exempt from GST.
The Court will consider the scope of GST on bundled hospital services and medical supplies, a question with significant implications for hospitals and patients.
[Escorts Heart Institute & Research Centre v. UOI]
23 days ago
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The Delhi High Court has sought a response from the Customs Department on IndiGo Airlines’ challenge to customs duty levied on aircraft engines and parts re-imported after overseas repairs.
IndiGo contends that it was forced to pay duties under protest, despite tribunal rulings deeming such levies unconstitutional, and claims refunds exceeding ₹900 crore were wrongly denied.
The matter has been listed for further hearing in April 2026.
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The Maharashtra government informed the Bombay High Court that its ‘Maharashtra Made Liquor (MML)’ policy has led to a nearly 17% rise in excise revenue.
Collections between July–November 2025 increased from ₹9,665.64 crore to ₹11,299.40 crore.
Defending the policy against a challenge by the International Spirits and Wines Association of India, the government argued that the lower-duty MML regime supports local manufacturers, revives idle distilleries, and addresses market concentration.
The petition contends that the policy is arbitrary and violates Article 14 of the Constitution.
[International Spirits and Wines Association of India v. State of Maharashtra & Ors.]
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IndiGo has moved the Delhi HC seeking a refund of over ₹900 crore paid as customs duty on aircraft engines and parts re-imported after overseas repairs.
The petition arises from the airline’s claim that the duty amounted to an unconstitutional double levy, since GST was already discharged on the repair service.
IndiGo submitted that it paid the duty under protest across more than 4,000 bills of entry to avoid grounding aircraft, yet refund claims were denied for want of reassessment. IndiGo relied on earlier tribunal rulings holding that such re-imports cannot attract duty twice.
Justice Shail Jain recused from the case; it will now be listed before another Bench.
[InterGlobe Aviation v. Deputy Commissioner (Refund) Customs]
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The Gujarat Authority for Advance Ruling (AAR) has held that PVC raincoats should be classified as plastic articles and not as textile apparel for GST purposes.
The ruling came on an application filed by a manufacturer seeking clarity on whether such raincoats fall under the 5% GST slab applicable to apparel or the 18% rate applicable to plastic products.
The AAR said the essential character of PVC raincoats is derived from their plastic composition, and therefore they cannot be treated as textile garments.
As a result, they attract 18% GST under the relevant tariff entry.
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