Indian CESTAT tax litigation rulings

The Customs, Excise and Service Tax Appellate Tribunal (CESTAT) has issued several rulings in India favoring taxpayers across various sectors.

In August 2026, the tribunal addressed disputes in Chandigarh and Hyderabad. In Chandigarh, CESTAT set aside a ₹1.04 crore service tax demand against S. S. Cargo, ruling that discrepancies between tax returns and income tax filings alone are insufficient to raise a demand without identifying specific taxable services. In Hyderabad, an excise duty demand of ₹7.04 lakhs against GR Power Switchgear Ltd was quashed after the tribunal determined a payment was a reimbursement of statutory liability rather than excise duty.

In September 2026, the Mumbai bench issued rulings concerning telecommunications and banking. The tribunal ruled that transponder services from foreign satellite providers used by Tata Communications Limited constitute telecommunication services rather than “Business Support Services,” leading to the dismissal of tax proceedings. Additionally, the tribunal ruled that DBS Bank’s Indian branch does not provide “intermediary services” to its own Singapore head office, and determined that HDFC Bank is not required to pay separate service tax on credit card interchange fees if tax has already been applied to the total Merchant Discount Rate.