Supreme Court Reverses Direct Refund of Unconstitutional Ocean Freight Tax 1. The Core Dispute: Unjust Enrichment vs. Class Restitution The petitioner, a power distribution company, paid IGST and Service Tax on ocean freight for natural gas imports on a CIF (Cost, Insurance, and Freight) basis. Following the landmark Mohit Minerals judgment, which declared the levy… Read More »
Portal Upload Alone Is Not “Effective Service” if Taxpayer Is Unresponsive 1. The Core Dispute: Digital “Empty Formalities” vs. Natural Justice The tax authorities issued a Show Cause Notice (SCN) and subsequent reminders solely by uploading them to the GST portal. Because the petitioner did not respond to these digital notifications, the Assessing Officer (AO)… Read More »
High Court Quashes “Negative Blocking” of Electronic Credit Ledger 1. The Core Dispute: “Negative Blocking” Beyond Available Credit The tax authorities used Rule 86A to block the Electronic Credit Ledger (ECL) of several taxpayers. However, since the petitioners had little or no balance in their ledgers at the time, the officers created an artificial negative… Read More »
After getting income tax refund, need to pay tax on the interest amount Based on the Income-tax Act, 2025 and Draft Income-tax Rules, 2026, the answer is Yes, the taxpayer must pay tax on the interest amount received. Here are the specific details regarding the taxability of interest on income tax refunds, using the terminology… Read More »