CST
Sales Tax | Whether C-Form Acknowledges Liability To Extend Limitation Requires Evidence: Delhi High Court
The Delhi High Court has recently ruled that whether a C-Form issued under the Central Sales Tax Act, 1956 (CST Act), certifying a transaction between registered dealers, amounts to an acknowledgment of debt, must be examined on the facts and evidence. The question cannot be decided at the threshold stage while considering an application to reject a plaint under Order VII Rule 11 of the Code of Civil Procedure (CPC).The Division Bench of Justices Avneesh Jhingan and Shail Jain made the...
Supreme Court Directs No Coercive Steps Against ITC In ₹11.59-Crore CST Demand
The Supreme Court on Tuesday directed that no coercive steps be taken against ITC Ltd in its challenge to the Telangana High Court judgment that upheld a ₹11.59 crore commercial tax demand on its inter State stock transfers.The High Court on July 22, 2026 dismissed ITC's six writ petitions. It held that the transactions involving movement of goods from Andhra Pradesh to other States were, in substance inter State sales under Section 3(a) of the Central Sales Tax Act and therefore liable to tax.A...
Telangana High Court Upholds ₹43.48 Crore CST Demand Against Mahindra & Mahindra For Inter-State Sales
The Telangana High Court on 5 August held that movement of vehicles from Mahindra & Mahindra Ltd.'s Zaheerabad manufacturing unit to its regional sales offices in other States constituted inter-State sales under Section 3(a) of the Central Sales Tax Act, 1956. A Division Bench comprising Justices P. Sam Koshy and Narsing Rao Nandikonda upheld a tax demand of around Rs. 43.48 crore, and dismissed two writ petitions filed by the company. It observed: “...It is not necessary, for a...
CESTAT Upholds CST Demand, ₹6.43 Crore Penalty On Kedia Vanaspathi, Rejects Consignment Sale Claim
The New Delhi Bench of the Customs, Excise & Service Tax Appellate Tribunal (CESTAT) on 12 May 2026 upheld the tax demand and penalty against Kedia Vanaspathi Ltd., holding that a dealer seeking exemption under Section 6A of the Central Sales Tax Act, 1956 must prove, with prescribed evidence, that inter-State movement of goods arises from consignment transfers and not sales. President Justice Dilip Gupta and Technical Member P.V. Subba Rao dismissed the appeals and confirmed the...
Kimberly Clark's Goods Movement To Other States Was Stock Transfer, Not Inter-State Sale: CESTAT New Delhi
The Customs, Excise and Service Tax Appellate Tribunal (CESTAT), New Delhi has held that Kimberly Clark Lever Pvt. Ltd.'s movement of goods from Maharashtra to its depots in other States for subsequent sales amounted to stock transfers and not inter-State sales liable to Central Sales Tax. A bench of President Justice Dilip Gupta and Technical Member P.V. Subba Rao observed that the agreement between Kimberly Clark and Hindustan Lever Limited was merely a broad framework or standing offer, with...
Licence Fee, Technical Assistance Charges Not Part Of Customs Value Unless Condition Of Sale: CESTAT Delhi
The Principal Bench of the Customs, Excise & Service Tax Appellate Tribunal (CESTAT), New Delhi has held that licence fees, engineering package charges, and technical assistance payments cannot be added to the assessable value of imported equipment where they are separately contracted and are not a condition of sale. A bench of Judicial Member Binu Tamta and Technical Member P.V. Subba Rao observed, “Law has been settled that once separate prices are provided for the supply of technical...
States Cannot Levy Local VAT On Inter-State Sales Even If Sale Is Deemed To Occur Within The State: Supreme Court
The Supreme Court on Friday held that a state cannot impose its own Value-Added Tax (VAT) on a transaction that qualifies as an inter-state sale merely because the Central Sales Tax Act deems the sale to have taken place within that state for the limited purpose of identifying which state may collect tax. A bench of Justice J.K. Maheshwari and Justice Atul S Chandurkar held that where the statutory provision defining an inter-state sale conflicts with the provision determining the deemed...
Senior Tax Officers Can Exercise Powers Of Subordinate Officers Under AP Sales Tax Act: CESTAT Delhi
The Principal Bench of the Customs, Excise & Service Tax Appellate Tribunal (CESTAT), New Delhi, has recently held that senior tax officers can exercise powers vested in subordinate officers under the Andhra Pradesh sales tax law.The tribunal made the observation while dismissing appeals filed by Hyderabad-based refined oil and vanaspati manufacturer Kedia Vanaspathi Ltd. against a Central Sales Tax demand of Rs. 2.33 crore and a penalty of Rs. 6.43 crore. “A plain reading of section 4A of...
Bombay High Court Declines To Answer Reference On Taxability Of Hire-Purchase Premium In Tata Motors Case
The court declined to answer the reference after Tata Motors and the Revenue stated they were not interested in pursuing the questions of law.
Sales Directly Linked To Export Cannot Be Taxed Under Central Sales Tax: Andhra Pradesh High Reaffirms
The Andhra Pradesh High Court has recently reiterated that where export is the direct result of a sale and the two form an integrated transaction that cannot be dissociated, such a sale is protected under Article 286 of the Constitution and cannot be subjected to State taxation. Explaining the law, the Division Bench of Justice R. Raghunandan Rao and Justice T.C.D. Sekhar held that a sale is “in the course of export” under Section 5(1) of the Central Sales Tax Act, 1956, when the sale itself...
Supreme Court Refuses To Interfere With Delhi HC Ruling On CST Exemption For Inter-State Sales In Mitsubishi Case
The Supreme Court of India has refused to interfere with a Delhi High Court ruling that allowed a tax exemption claimed by Mitsubishi Corporation India for inter-state sales, rejecting the tax department's argument that the benefit was unavailable because an earlier sale of the goods was already exempt from tax. A bench of Justices J.B. Pardiwala and R. Mahadevan said the case did not warrant interference. “We see no good reason to interfere in the impugned judgment and order passed by the High...
GSTAT President Orders Lenient Scrutiny Of GST Appeals In Initial Filing Phase
The President of the Goods and Services Tax Appellate Tribunal (GSTAT), New Delhi Principal Bench, recently directed all GSTAT registries to adopt a lenient approach in scrutinising GST appeal filings, limiting objections during the initial phase to only substantive defects that affect the merits of the case. The direction was issued by an office order dated 20 January 2026 to address the practical difficulties faced by appellants in filing appeals on the newly operational GSTAT portal. The...