Delhi High Court and Indian Tribunals issue various tax and customs rulings

Several judicial bodies in India have issued significant rulings regarding tax administration and customs enforcement. The Delhi High Court ruled that under Rule 86A of the CGST Rules, 2017, tax authorities cannot create an artificial negative balance in an Electronic Credit Ledger to offset future, legitimate input tax credits. In a separate matter, the court held that reassessment notices issued in the name of a deceased individual are void due to jurisdictional defects.

Regarding customs and exports, the Delhi High Court affirmed that authorities may investigate whether third-party remittances constitute genuine sale proceeds for exported goods when determining incentive eligibility. Additionally, the Customs, Excise and Service Tax Appellate Tribunal (CESTAT) in Mumbai allowed an appeal for a customs broker after authorities failed to prove the firm's role in an alleged license violation.

In New Delhi, CESTAT ruled that service tax paid by mistake on non-taxable construction activities is refundable without being subject to limitation periods or the principle of unjust enrichment. These decisions collectively address the limits of revenue recovery powers and the necessity of procedural safeguards in tax and customs law.