Supreme Court
2 articles
When Is a Building a “Plant”? The Supreme Court in Safari Retreats on Section 17(5)(d), Blocked Credit and the Functionality Test
A mall developer with more than Rs. 34 crores of input tax credit was told that Section 17(5)(d) blocked it. The Supreme Court upheld the blocked-credit clauses, refused to read “plant or machinery” as “plant and machinery”, and held that whether a building is a “plant” turns on a fact-specific functionality test — with hotels and cinema theatres excluded.
7 min readDelay Is Not Default: Supreme Court Holds a Carrier Who Deposits Foreign Travel Tax Late Cannot Be Penalised as One Who Failed to Pay It
An airline deposited Foreign Travel Tax late in six instances, once by 63 days, and was hit with a penalty of over Rs. 71 lakh — nearly 600 times the amount first imposed before its own appeal triggered a remand. The Supreme Court set the penalty aside, holding that 'failure to pay' cannot be equated with delay, and that customs officers retain discretion not to impose a penalty even where a statutory minimum is prescribed.
14 min read