International Tax Ruling


Mixing of paint with additive doesn’t result in new commercial product, hence the process is not ‘manufacture’

SC holds that mixing of base paint with additive doesn’t result in a new commercial product but paint itself, thus the process doesn’t amount to ‘manufacture’; Revenue contende...View More

State competent to levy tax on tobacco till 2001; Embarks on ‘inclusion’ effect 

SC while deciding a batch of appeals rules on the question of taxability of ‘Pan Masala’ or ‘Gutka/Gutkha’ by State enactments viz. the Delhi Sales Tax Act, the Uttar Pradesh T...View More

“Nycil Prickly Heat Powder” not 'medicine/drug' but 'cosmetic'; Accords ‘plain meaning’

SC rules that Medicated Talcum Powder (Nycil) sold by Heinz (assessee/ now taken over by Glaxo Smithkline Pharmaceuticals) to treat heat rashes is taxable as a cosmetic, ...View More

Split verdict on Smuggler's right to approach Settlement Commission; Matter placed before CJI 

SC delivers split verdict hearing an application of Writ Petitioner concerning the accused’s right to approach the Settlement Commission u/s 127B of Customs Act to settle the matter and gain imm...View More

'Gross Premium’ amount for deposit insurance treatable as cum-tax; Remands matter for interest computation 

CESTAT Mumbai rules on levy of service tax on the deposit insurance activity of insuring all bank deposits, savings, fixed, current and recurring deposits upto the prescribed limit per deposit in a ba...View More

Extending corporate guarantee to associate enterprise not taxable as 'Banking Service'

CESTAT New Delhi holds that activity of extending ‘corporate guarantee’ (CG) by assessee to its associate companies (AE) cannot be called as ‘Banking and oth...View More

Tapioca Papad rightly classifiable under CTH 1905; Quashes differential duty demand 

CESTAT Delhi quashes order re-classifying Tapioca Papad imported by Assessee under CTH 1903, holds that, in today's modern era the scope of food items is changing with new innovative concepts,since th...View More

Waives mandatory pre-deposit condition for financially challenged Petitioners; Allows writ petition

Delhi HC allows writ, dispense with requirement of mandatorily depositing 7.5% of demand or penalty amount imposed  u/s 128-E of the Customs Act considering the poor financial...View More

Dismisses writ challenging constitutional validity of Goa Entry Tax Act: Following SC ratio 

Bombay HC (Goa) dismisses writ challenging the constitutional validity of Goa Tax on Entry of Goods Act, 2000 (Act) imposing entry tax on goods imported from other States; Relies upon the settled prec...View More

Homeopathy ‘Hair Oil’ for therapeutic/ prophylactic use classifiable as 'medicament', not 'cosmetic’ 

SC dismisses Revenue's appeal against the order of CESTAT involving classification of ‘Aswini Homeo Arnica Hair Oil’ (AHAHO), rules that, AHAHO is a ‘medicament’ classifiable u...View More