Latest news with #CentralBoardofIndirectTaxesandCustoms
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Business Standard
6 days ago
- Business
- Business Standard
Supreme Court dismisses tax demand raised by CBIC against IndiGo
The Supreme Court on Monday dismissed a plea by the Central Board of Indirect Taxes and Customs (CBIC) against InterGlobe Aviation, the parent company of India's largest airline, IndiGo, seeking to impose integrated goods and services tax (IGST) on re-imported aircraft and parts sent overseas for repairs. The tax demand was based on a 2021 government notification that sought to clarify and retrospectively amend a 2017 exemption. The government had challenged the Customs, Excise & Service Tax Appellate Tribunal (CESTAT) ruling of August 2024, which rejected the retrospective tax demand, stating that it would place an additional burden on airlines. A bench comprising Justices B.V. Nagarathna and K.V. Viswanathan on Monday refused to admit the customs department's appeal and dismissed it. Additional Solicitor General (ASG) N. Venkataraman, appearing for the customs department, argued that nearly ₹100 crore in tax revenue was at stake. He also submitted that the interpretation of the 2017 notification is already under challenge before the Supreme Court. 'Even if the 2021 notification is struck down for being retrospective, our case survives because duties of customs under the 2017 notification include IGST. All I am requesting is that if we win on the 2017 notification, the benefit of that ruling should apply to these bills [and] other imports as well,' he said. The court, however, rejected the argument, stating: 'You can't do it by a retrospective amendment… If the 2017 notification did not cover IGST, you cannot use the 2021 notification to impose it retrospectively.' The government has announced that a uniform IGST rate of 5 per cent on all aircraft and aircraft engine parts will come into effect from 15 July. Last week, the 53rd GST Council recommended a uniform 5 per cent tax on imports of parts, components, testing equipment, tools, and toolkits of aircraft, irrespective of their HSN code. The aim is to reduce operational costs, resolve tax credit issues, and attract investment. IndiGo has also challenged the constitutionality of the 2021 notification before the Delhi High Court. On 4 March, the High Court struck down the additional tax imposed on the repair cost of goods re-imported into India after being sent abroad for maintenance. The airline's parent company argued that it had already paid import duties on overseas repairs as part of the import of services and should not be taxed again upon the re-import of the repaired aircraft parts. IndiGo, which is principally engaged in the transportation of passengers and goods by air within and outside India, sends its goods to maintenance, repair, and overhaul (MRO) service providers outside the country. Once repaired, the goods are re-imported. S.R. Patnaik, Partner and Head of Taxation Practice at law firm Cyril Amarchand Mangaldas, said the Supreme Court's decision to dismiss the revenue's plea reinforces a vital principle in tax jurisprudence—that retrospective tax demands must pass the test of fairness and legal certainty. 'This ruling provides much-needed reassurance to businesses that tax exemptions, once validly claimed, will not be reopened by retrospective changes. It will likely influence how courts approach other cases involving retrospective levies, and hence, it is expected that the tax authorities shall use their powers in a more restrained manner,' he said. 'This precedent strengthens challenges in sectors like online gaming, where the retrospective levy of GST on the face value of bets is under judicial scrutiny. The ruling signals that tax certainty cannot be achieved by imposing obligations retrospectively, a development that certainly restores hope among taxpayers,' said Karan Sarawagi, an advocate practising in the Bombay High Court. 'The Supreme Court's decision is rooted in the jurisprudential principle that notifications are inherently prospective in nature. Since this was a notification and not a legislative clarification, its applicability should always be considered prospective, starting from the date of its publication in the official gazette,' said Sachin Sharma, Managing Partner of KSV Tax Consultants.
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Business Standard
6 days ago
- Business
- Business Standard
'No retrospective amendment': SC dismisses CBIC tax demand on IndiGo
The Supreme Court on Monday dismissed a plea by the Central Board of Indirect Taxes and Customs (CBIC) against InterGlobe Aviation, the parent company of India's largest airline, IndiGo, seeking to impose integrated goods and services tax (IGST) on re-imported aircraft and parts sent overseas for repairs. The tax demand was based on a 2021 government notification that sought to clarify and retrospectively amend a 2017 exemption. The government had challenged the Customs, Excise & Service Tax Appellate Tribunal (CESTAT) ruling of August 2024, which rejected the retrospective tax demand, stating that it would place an additional burden on airlines. A bench comprising Justices B.V. Nagarathna and K.V. Viswanathan on Monday refused to admit the customs department's appeal and dismissed it. Additional Solicitor General (ASG) N. Venkataraman, appearing for the customs department, argued that nearly ₹100 crore in tax revenue was at stake. He also submitted that the interpretation of the 2017 notification is already under challenge before the Supreme Court. 'Even if the 2021 notification is struck down for being retrospective, our case survives because duties of customs under the 2017 notification include IGST. All I am requesting is that if we win on the 2017 notification, the benefit of that ruling should apply to these bills [and] other imports as well,' he said. The court, however, rejected the argument, stating: 'You can't do it by a retrospective amendment… If the 2017 notification did not cover IGST, you cannot use the 2021 notification to impose it retrospectively.' The government has announced that a uniform IGST rate of 5 per cent on all aircraft and aircraft engine parts will come into effect from 15 July. Last week, the 53rd GST Council recommended a uniform 5 per cent tax on imports of parts, components, testing equipment, tools, and toolkits of aircraft, irrespective of their HSN code. The aim is to reduce operational costs, resolve tax credit issues, and attract investment. IndiGo has also challenged the constitutionality of the 2021 notification before the Delhi High Court. On 4 March, the High Court struck down the additional tax imposed on the repair cost of goods re-imported into India after being sent abroad for maintenance. The airline's parent company argued that it had already paid import duties on overseas repairs as part of the import of services and should not be taxed again upon the re-import of the repaired aircraft parts. IndiGo, which is principally engaged in the transportation of passengers and goods by air within and outside India, sends its goods to maintenance, repair, and overhaul (MRO) service providers outside the country. Once repaired, the goods are re-imported. S.R. Patnaik, Partner and Head of Taxation Practice at law firm Cyril Amarchand Mangaldas, said the Supreme Court's decision to dismiss the revenue's plea reinforces a vital principle in tax jurisprudence—that retrospective tax demands must pass the test of fairness and legal certainty. 'This ruling provides much-needed reassurance to businesses that tax exemptions, once validly claimed, will not be reopened by retrospective changes. It will likely influence how courts approach other cases involving retrospective levies, and hence, it is expected that the tax authorities shall use their powers in a more restrained manner,' he said. 'This precedent strengthens challenges in sectors like online gaming, where the retrospective levy of GST on the face value of bets is under judicial scrutiny. The ruling signals that tax certainty cannot be achieved by imposing obligations retrospectively, a development that certainly restores hope among taxpayers,' said Karan Sarawagi, an advocate practising in the Bombay High Court. 'The Supreme Court's decision is rooted in the jurisprudential principle that notifications are inherently prospective in nature. Since this was a notification and not a legislative clarification, its applicability should always be considered prospective, starting from the date of its publication in the official gazette,' said Sachin Sharma, Managing Partner of KSV Tax Consultants.
India Gazette
11-07-2025
- Business
- India Gazette
Centre to offer SASCI scheme to Meghalaya for redevelopment: FM Nirmala Sitharaman
Shillong (Meghalaya) [India], July 11 (ANI): Union Finance Minister Nirmala Sitharaman, while addressing a public gathering in Shillong, Meghalaya, said that the government will offer the Scheme for Special Assistance to States for Capital Investment (SASCI) to Meghalaya to assist the state in the process of redevelopment. Under this Scheme, the government will provide 50-year interest-free loans to the state government. Additionally, the Finance Minister, Nirmala Sitharaman, also announced some projects in Meghalaya under the SASCI scheme. The minister is on a 4-day visit to the northeastern state of India, where she will interact with Industry stakeholders, beneficiaries of the payment ecosystem service program and many others in the upcoming days. Among the major projects, the redevelopment of the iconic Lake Umiam has been sanctioned at a cost of Rs 99 crore. Another Rs 99 crore has been earmarked for the development of a modern MICE (Meetings, Incentives, Conferences, and Exhibitions) infrastructure at Mawkhanu, for which the foundation stone has already been laid. In a major boost to sports infrastructure, a world-class football stadium is proposed at Mawkhanu with a massive investment of Rs 732 crore under the SASCI scheme. Further, to promote women's safety and support working professionals, a network of working women's hostels is planned in Shillong, Jowai, Byrnihat, and Tura at a total cost of Rs 132 crore. To enhance digital access and learning in remote areas, the state has constructed and inaugurated 75 digital libraries out of the 750 sanctioned, with a total project cost of Rs 162 crore. Outside of the SASCI Scheme, the foundation stone for the construction of the Office cum Residential complex of the Central Board of Indirect Taxes and Customs (CBIC), Unsawli, New Shillong. Project Cost: Rs 256 crore. The foundation stone for the Indian Institute of Corporate Affairs (IICA)-NE Chapter, Umsawli, has been laid. Project cost: Rs 100.95 crore,' posted on the social media 'X' by Nirmala Sitharaman Office. While addressing a public program in the state capital, Nirmala Sitharaman also highlighted that under the Pradhan Mantri Jan Dhan Yojana, 8.64 lakh bank accounts have been opened, driving financial inclusion across the state. Additionally, the Pradhan Mantri Jeevan Jyoti Bima Yojana has seen 5.5 lakh enrolments for life insurance cover. In contrast, nearly 1 lakh individuals have availed of accidental insurance under the Pradhan Mantri Suraksha Bima Yojana. Over 1.5 lakh houses have been built under the PM Awas Yojana, significantly improving housing access for the underprivileged. In the water and sanitation sector, the Jal Jeevan Mission has provided tap water connections to 5.3 lakh rural households, increasing rural tap water coverage from just 4,550 households in 2019 to an impressive 82.85 per cent as of July 2025. Under the Swachh Bharat Mission (Rural), over 3 lakh rural households have been provided with toilets, reinforcing the goal of achieving total sanitation. More than 3 lakh LPG connections have been released under the PM Ujjwala Yojana, improving access to clean cooking fuel for women and rural families. (ANI)
Gulf Today
10-07-2025
- Business
- Gulf Today
Abu Dhabi Customs, Indian delegation explore cooperation to facilitate bilateral trade
The General Administration of Abu Dhabi Customs hosted a workshop in collaboration with an official delegation from the Republic of India, led by Arti Agarwal Srinivas, Director-General of Systems and Data Management at the Central Board of Indirect Taxes and Customs (CBIC), Ministry of Finance, India. The delegation also included representatives from the Embassy of India in Abu Dhabi. The workshop aimed to explore avenues for strengthening cooperation in facilitating bilateral trade, enhancing supply chain efficiency, and advancing the digital trade corridor between the two nations. During the visit, the delegation met with Rashed Lahej Al Mansoori, Director-General of Abu Dhabi Customs, where both sides discussed opportunities to deepen customs cooperation and accelerate digital transformation across the customs sector to enhance procedural efficiency and ensure the seamless flow of goods across borders. The workshop showcased Abu Dhabi Customs' advanced digital ecosystem, highlighting its cutting-edge technical capabilities in managing customs operations. These include a smart, integrated infrastructure that provides around-the-clock customs services, in conjunction with the invisible customs ecosystem, blockchain technologies, and government service platforms such as TAMM and ATLP. Key technical topics discussed included system integration between both countries, mechanisms for data exchange, and streamlined customs procedures. These discussions were held within the framework of the MAITRI initiative, a middleware platform designed to interconnect with various national systems to facilitate international trade. The initiative serves governmental bodies, customs authorities, importers, exporters, and logistics service providers, aiming to establish a secure and fully digital trade corridor. This would enable faster customs clearance, improved transparency and compliance, enhanced trade fluidity, and a reduction in transaction time and cost between the two sides. This workshop aligns with Abu Dhabi Customs' strategic efforts to bolster partnerships with international customs administrations and develop innovative digital solutions that support global trade, in line with the economic development objectives of Abu Dhabi and the UAE. WAM
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Business Standard
08-07-2025
- Business
- Business Standard
CBIC may free up importers' IGST credits to address payment issues
Short payments of IGST on imports are usually discovered during internal audits or regulatory checks, and tend to arise due to valuation differences, classification errors, or other discrepancie Monika Yadav New Delhi Listen to This Article In a bid to facilitate importers who may have underpaid Integrated Goods and Services Tax (IGST) dues, the Central Board of Indirect Taxes and Customs (CBIC) is likely to issue a standard operating procedure (SOP) to enable them to claim input tax credit (ITC) on IGST payments made to rectify shortfalls flagged after Customs clearance. This new protocol for GST field formations could potentially unlock several hundreds of crores worth of input tax credits of importers that are currently stuck, straining their working capital flows, two government officials aware of the development told Business Standard.
