TMI Tax Updates - e-Newsletter
May 22, 2025

Case Laws in this Newsletter:

GST Income Tax Customs PMLA Service Tax Central Excise CST, VAT & Sales Tax Indian Laws

Articles

1. Benefits of 80G5 Registration for NGOs and Donors

   By: Ishita Ramani

2. GRANT OF POST ARBITRAL AWARD INTEREST IS MANDATORY UNDER SECTION 31(7)(b) OF THE ARBITRATION AND CONCILIATION ACT, 1996

   By: DR.MARIAPPAN GOVINDARAJAN

3.  A $500,000 Lesson:Why 15 Indian Mango Shipments Were Destroyed in the U.S.A. and What It Tells Us About Trade Compliance & Diplomacy

   By: DrJoshua Ebenezer

4. 📘 Sustainability Accounting Standards Board (SASB) – Overview.

   By: YAGAY andSUN

5. 🌿 What is an ESG Rating?

   By: YAGAY andSUN

6. ⭐ BEE Star Rating – Energy Efficiency Labeling in India

   By: YAGAY andSUN

7. 🏅 What is a LEED Certificate?

   By: YAGAY andSUN

8. 🌵 “Greening the Arid and Barren Land: My Mission to Revive Arid and Barren Land and Heal the Blue Planet”

   By: YAGAY andSUN

9. 🌿 World Wide Fund for Nature (WWF) – An Overview.

   By: YAGAY andSUN

News

1. CCI approves acquisition of majority stake/control over Nazara Technologies Limited by Axana Estates LLP, Plutus Wealth Management LLP and Junomoneta Finsol Private Limited

2. Stock markets snap 3-day decline on buying in banking shares; Sensex jumps 410 pts

3. CCI approves proposed combination involving acquisition of Batlivala & Karani Securities Private Limited and Batlivala & Karani Finserv Private Limited by 360 ONE

4. While Trump overhauls FEMA, Mississippi tornado survivors await assistance

5. Interim trade deal with US likely by July 8; India for full exemption from 26 pc additional tariff

6. India seeks full exemption from 26 pc additional tariff in interim trade deal with US

7. India, EU looking for early harvest trade agreement by July: Official

8. Japan's exports slow in April as Trump's tariffs dent shipments to US

9. Trump's tariffs will test unity among allies at G7 finance ministers' summit

10. India Assumes Chairmanship of Asian Productivity Organization at 67th Governing Body Meeting in Jakarta

11. CCI approves the proposed combination involving acquisition of Bajaj Allianz Life Insurance Company Limited, Bajaj Allianz General Insurance Company Limited and Bajaj Allianz Financial Distributors Limited by Bajaj Finserv Limited, Bajaj Holdings & Investment Limited and Jamnalal Sons Private Limited

12. CCI approves the acquisition of certain issued and paid-up equity share capital of Haldiram Snacks Food Private Limited (Target) by Jongsong Investments Pte. Ltd. (Acquirer)

13. GST official nabbed for taking Rs 45,000 from Noida bizman

14. 6th Meeting of National Traders’ Welfare Board held in New Delhi

15. Union Minister of Finance & Corporate Affairs Smt. Nirmala Sitharaman presides over 16th Annual Day commemoration of Competition Commission of India, in New Delhi

Notifications

Customs

1. 35/2025 - dated 16-5-2025 - Cus (NT)

Appoints specified officers as Central Excise Officers and invests them with all the powers, to be exercised by them throughout the territory of India, of an officer of Central Excise of the specified rank.

GST - States

2. 11/2025 -State Tax - dated 27-3-2025 - Meghalaya SGST

Meghalaya Goods and Services Tax (Second Amendment) Rules, 2025

Highlights / Catch Notes

GST

• Liberty to Appeal Under CGST Act Section 107 Granted with Mandatory Pre-Deposit and Merit-Based Adjudication

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• Supreme Court Orders Recovery of Missing Administrative Files, Directs Certified Copies and Document Handover for Comprehensive Case Resolution

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• Statutory GST Show Cause Notices Upheld: Complex Transactions Require Detailed Computation for Multiple Parties

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• Freight Forwarding Services Refund Claim Upheld: Full ITC Refund and Interest Ordered Under Section 54(11)

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• Taxpayer Must Comply with GST Circular 224/18/2024, Pre-Deposit Mandatory Under Section 112(8) for Appellate Rights

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• Taxpayer Wins Relief: Authorities Must Align GSTR-1 and GSTR-3B Forms Within One Month, Resolve Grievances Promptly

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• Electronic Credit Ledger Unblocked: Rule 86A Challenge Succeeds After Procedural Flaws Expose Lack of Fair Hearing

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• Simultaneous Proceedings Challenged, Petitioner Granted Relief Under Sections 70 and 74, to proceed before Central Authority only

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Income Tax

• Updated Tax Return Rules Allow Corrections and Additional Income Reporting Within 48 Months of Assessment Year

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• Repeated Share Sales Confirm Trading Intent, Allowing Interest Deduction Under Section 36(1)(iii)

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• Tax Authorities Granted Discretionary Power to Compound Section 276B Offenses Without Strict Procedural Constraints

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• Income Tax Department Validates Search Proceedings Against Political Party Official Under Section 132 with Documented Financial Irregularities

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• Tax Deduction Dispute: Export Turnover Calculations Refined, Software Services Differentiated Under Sections 10A, 80HHE, and 80M

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• Tax Assessment Nullified: Duplicate PAN Resolved with Procedural Flexibility and Verification of Existing Financial Records

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• Excess Pre-deposit Refund Victory: Petitioner Wins 80% Relief, Respondents Ordered to Return Excess Amounts Within Six Weeks

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• Tonnage Tax Scheme Prevails: Transfer Pricing Adjustments Overridden for Shipping Company's Transactions and Tax Refund Income

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• Tax Tribunal Scrutinizes Business Expenses, Disallows Bogus Purchases, On-Money Receipts, and Excessive Director Salary Payments

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• Taxpayer Wins Transfer Pricing Appeal: Functional Dissimilarity and Related Party Transactions Lead to Margin Alignment

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• Taxpayer Prevails: Comprehensive Disclosure of Hong Kong Share Holdings Validated Without Evidence of Undisclosed Investments

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• Tax Relief Granted: Partial Win for Assessee with Remand on Multiple Taxation Challenges Under Sections 251(2) and 14A

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• Transfer Pricing Appeal Succeeds: Internal Comparables Validated, Tax Adjustment of INR 30.2M Overturned Based on Profitability Analysis

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• Tax Deduction Denied: Political Party Donations Exposed as Systematic Financial Manipulation Scheme Under Section 80GGC

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• Real Estate Transaction Tax: 10% Tolerance Band Under Section 43CA Provides Relief for Property Sellers in Assessment Year 2017-18

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• Unsecured Loans Disallowed: No Incriminating Material Found, Tribunal Rejects Addition of Unexplained Cash Credits Under Section 153A

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• Tribunal Resolves Tax Disputes: Non-Resident Commission, Section 14A Interpretation, and CSR Expense Challenges Examined Comprehensively

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• Taxpayer Wins: Income Reassessment Invalidated Due to Lack of Substantial New Evidence in Share Trading Case

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• Transfer Pricing Order Invalidated as Notices Issued to Non-Existent Entity, Rendering Assessment Proceedings Null and Void

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• Taxpayer Wins Challenge Against Cash Transaction Penalty, Tribunal Finds No Statutory Violation in Property Sale

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Customs

• Crude Degummed Soyabean Oil Recognized as Manufactured Product, Enabling Duty-Free Credit Entitlement Under Notification 53/2003

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• Importers Win Partial Relief: Penalty Slashed by Half Under Section 112(a), Section 114AA Penalty Nullified

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• Customs Authority Overreaches: Export Incentive Calculations Cannot Be Unilaterally Modified by Additional Commissioner

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• Customs Broker Wins Appeal: No Misconduct Found, License Reinstated After Thorough Regulatory Compliance Review

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• Polyester Fabric Import Dispute: Transaction Value Upheld, Customs Duty Exemptions Confirmed Under Notification 30/2004-CE

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Corporate Law

• Companies (Accounts) Rules Amendment Extends CSR Report Filing Deadline to June 30, 2025, Modifying Rule 12 Compliance Timeline

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Indian Laws

• Partner's Resignation Doesn't Automatically Absolve Liability for Cheque Dishonor Under Negotiable Instruments Act Section 141

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PMLA

• Secured Creditors Lose Priority: Legislative Supremacy Affirmed in Complex Financial Asset Attachment Dispute

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Service Tax

• Intermediary Services Taxability Clarified: Export of Design Services Validated Under POPS Rules, Tax Demand Overturned

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• Limitation Period Bars Tax Reassessment: No Evidence of Intentional Suppression Invalidates Extended Notices Under Section 73(1)

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Case Laws:

• GST

• 2025 (5) TMI 1441
  HC upheld petitioner's right to access seized documents in tax proceedings. Court directed department to return certified copies of non-relied documents and original files within two weeks. The ruling ensures procedural fairness by allowing petitioner to submit replies, cross-examine witnesses, and access essential evidence while preserving investigative integrity. Timely compliance and cooperative adjudication were emphasized.

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• 2025 (5) TMI 1440
  SC dismissed the appeal, upholding the Customs, Excise and Service Tax Appellate Tribunal's decision. The court, represented by two justices, found no substantive grounds to challenge the lower tribunal's ruling and rejected the appellant's arguments after hearing the Additional Solicitor General.

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• 2025 (5) TMI 1439
  HC addressed a GST registration cancellation case. The court found procedural irregularities in the notice process, setting aside the cancellation order. Authorities were directed to issue proper notice, provide personal hearing, and pass a fresh order within three months, giving the petitioner four weeks to submit a reply.

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• 2025 (5) TMI 1438
  HC analyzed a GST case involving procedural challenges to a show cause notice (SCN) regarding Input Tax Credit (ITC) claims. The Court rejected the writ petition, finding no violation of natural justice and emphasizing the availability of statutory appeal under Section 107 of CGST Act. The Court held that exceptional circumstances justifying writ intervention were not established, and directed the petitioner to pursue the alternate statutory remedy while highlighting the importance of preventing fraudulent ITC claims in the GST regime.

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• 2025 (5) TMI 1437
  The SC rejected the writ petition challenging GST show cause notices. The court held that the notices complied with statutory requirements, and the computation of tax and penalties was adequately communicated. The court emphasized that writ jurisdiction is limited in tax matters, and challenges to statement veracity and tax calculations should be addressed during adjudication proceedings. The GST investigation and proceedings were permitted to continue as per legal framework.

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• 2025 (5) TMI 1436
  HC ruled in favor of taxpayer regarding Input Tax Credit (ITC) refund. The court held that the tax department cannot withhold a refund sanctioned by the Appellate Authority without filing a formal appeal. Section 54(11) of CGST Act requires both pending appeal and proven potential revenue loss to justify refund withholding. The petitioner was directed to receive the refund with applicable interest within two months.

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• 2025 (5) TMI 1435
  HC allowed writ petition challenging GST demand, finding the order exceeded notice amount under Section 75(7) of GST Act. The court quashed the order dated 30.12.2024, directing Deputy Commissioner to reissue notice and provide fair hearing, ensuring demand aligns with original show-cause notice's specified amount.

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• 2025 (5) TMI 1434
  The HC addressed a GST tax dispute involving pre-deposit requirements and appeal procedures. The Court held that the petitioner must: (1) make a 20% pre-deposit electronically, and (2) file an undertaking with the jurisdictional officer to appeal before the GST Tribunal once constituted. Upon compliance, recovery proceedings will be stayed. The Court accepted the petitioner's approach given the GST Tribunal's non-existence and provided procedural guidance for tax appeals.

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• 2025 (5) TMI 1433
  HC adjudicated a GST dispute involving rectification of GSTR-3B returns and tax credit adjustments. The court ruled in favor of the petitioner, permitting rectification of inadvertent clerical errors in tax returns, allowing cross-head tax credit adjustments under Rule 88A, and quashing interest and penalty demands. The decision upholds taxpayer rights and principles of natural justice in GST compliance.

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• 2025 (5) TMI 1432
  HC set aside GST registration cancellation by tax officer, finding petitioner provided evidence of business operations through invoices and photographs. Court remitted matter to tax authority for reconsideration, directing petitioner to appear with supporting documents by specified date, without expressing opinion on case merits.

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• 2025 (5) TMI 1431
  HC ruled on a GST-related dispute, primarily focusing on procedural fairness. The Court disposed of the writ petition by granting liberty to the petitioner to file an appeal against the original order. Interim orders restraining recovery and coercive actions were continued for six weeks, allowing the petitioner to challenge the GST notice through proper appellate channels while preserving the status quo of the financial dispute.

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• 2025 (5) TMI 1430
  The HC ruled that blocking an Electronic Credit Ledger (ECL) under Rule 86A requires adherence to natural justice principles. The court found the tax authorities' orders invalid due to lack of pre-decisional hearing and independent reasoning. The ECL blocking was quashed, with directions to unblock immediately and issue fresh notices following proper procedural safeguards. The decision emphasizes the need for fair administrative actions involving significant civil consequences.

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• 2025 (5) TMI 1429
  HC quashed the State GST authorities' Show Cause Notice as illegal under Section 6(2)(b) of KGST Act, since Central GST authorities had already initiated proceedings. The court directed fresh consideration of the petitioner's Input Tax Credit claim, valuation, and interest issues. The petitioner was granted liberty to seek Amnesty scheme benefits by converting proceedings from Section 74(1) to Section 73.

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• 2025 (5) TMI 1357
  HC examined a petition challenging a consolidated Show Cause Notice (SCN) under GST Act spanning multiple financial years. Petitioner argued separate SCNs are mandatory per Section 74(10), citing prior HC precedents. Respondents countered that consolidated SCNs are permissible. HC reserved final order and listed matter for further hearing, treating petition as part-heard without rendering a definitive ruling.

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• Income Tax

• 2025 (5) TMI 1428
  HC quashed a non-bailable warrant for a bailable tax offence under Section 276C(2), finding the Magistrate's order "cryptic" and lacking reasoned analysis. The Court noted procedural irregularities, set aside the order without impacting underlying proceedings, and directed revenue to file a reply by specified date.

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• 2025 (5) TMI 1427
  The HC dismissed a writ petition challenging a tax assessment notice under Section 148. The Court held that procedural objections to the notice should have been raised earlier, and the petitioner cannot challenge the notice post-assessment. The Court found no violation of natural justice or jurisdiction, directing the petitioner to pursue appellate remedies. A four-week time was granted to approach the appellate authority, which was instructed to hear the case expeditiously.

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• 2025 (5) TMI 1426
  The HC examined the validity of a tax rectification order under Section 154 of the Income Tax Act. The court found procedural defects in the initial rectification by the ACIT, which lacked proper notice. While the subsequent order addressed hearing requirements, the court ultimately remanded the matter due to conflicting rectifications by the CPC. The key ruling emphasized that tax authorities cannot repeatedly rectify intimations, preserving procedural fairness and preventing administrative abuse.

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• 2025 (5) TMI 1425
  The SC resolved a tax dispute involving share classification and interest deduction. The court determined that shares held by the appellant were stock-in-trade, not investments, thereby allowing interest deduction under Section 36(1)(iii) of the Income Tax Act. The tribunal's earlier order was set aside, with the case remanded for proper computation of interest disallowance based on actual figures. The ruling emphasized that holding shares for longer periods does not automatically convert them to investments.

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• 2025 (5) TMI 1424
  HC analyzed prosecution under Income Tax Act for failure to deposit TDS. Court held that after depositing deducted amount with interest before complaint filing, criminal proceedings are not maintainable. The senior tax authorities have suo motu power to compound offences under Section 279(2), and continuing prosecution after deposit amounts to abuse of legal process. The Court quashed criminal proceedings, emphasizing that depositing TDS with interest before complaint should result in compounding, not prosecution.

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• 2025 (5) TMI 1423
  The HC addressed a tax appeal involving procedural delays in income tax assessment. The court found merit in the petitioner's grievance regarding prolonged appeal pendency spanning over a decade. While not interfering with the substantive assessment order, the HC directed the appellate authority to decide the appeal within 12 weeks, emphasizing the assessee's right to timely adjudication and procedural fairness.

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• 2025 (5) TMI 1422
  The HC dismissed the Revenue's appeal challenging the ITAT's order. The appeal was found non-maintainable due to tax effect being below the Rs. 2 Crores threshold. The Court upheld the ITAT's findings that the Assessee's purchases were genuine, based on substantial documentary evidence. The reopening of assessment under Section 148 was deemed unjustified, as no direct link was established between the vendors' transactions and the Assessee's purchases.

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• 2025 (5) TMI 1421
  The HC analyzed the tax effect computation under CBDT Circulars, determining that the disputed additions fell below the Rs. 2 crore threshold for appeal. The court rejected Revenue's attempt to include losses from prior finalized assessments in the tax effect calculation. Consequently, the HC held the appeal was not maintainable and dismissed it, upholding the principle of assessment finality and strict interpretation of tax effect computation methodology.

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• 2025 (5) TMI 1420
  HC dismissed Revenue's appeal regarding tax effect computation. The court held that tax effect was Rs. 1.71 crores, below the Rs. 2 crores threshold mandated by CBDT Circulars. Disallowed brought-forward losses from prior finalized assessments cannot be included in current year's tax effect calculation. The appeal was rejected strictly applying the circulars' prescribed threshold.

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• 2025 (5) TMI 1419
  The SC upheld the revenue's appeal, setting aside the Tribunal's order. The court found the Tribunal erroneously accepted the assessee's bogus long-term capital gains from penny stock transactions. The SC restored the Appellate Authority's order, ruling that the Assessing Officer validly reopened the assessment based on credible evidence of artificial price manipulation and tax evasion through collusive transactions.

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• 2025 (5) TMI 1418
  The HC examined the legality of a tax search and seizure against a political party's district committee. The court found the search under Section 132 of the Income Tax Act valid, based on evidence of an undisclosed bank account, large cash withdrawals, and non-compliance with PAN linkage. The prohibitory order was deemed automatically expired after 60 days. The court dismissed the writ petition, upholding the tax authorities' actions as lawful and bonafide.

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• 2025 (5) TMI 1417
  SC partially allowed tax appeal challenging Tribunal's order. Court found mixed outcomes across six key issues related to income tax deductions for software export. The key rulings involved computational methodology for Sections 10A and 80HHE, distinguishing software manufacturing from technical services, and clarifying dividend income qualification. Most issues were remanded for fresh assessment, with some determinations favoring tax authorities and others supporting taxpayer's contentions.

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• 2025 (5) TMI 1416
  SC found a violation of natural justice principles in tax assessment proceedings. The impugned order was set aside due to respondent's failure to appear in scheduled video conference and denial of hearing opportunities. The court directed a fresh hearing with 14 days' notice, emphasizing the importance of procedural fairness and the right to be heard in administrative proceedings.

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• 2025 (5) TMI 1415
  In this tax appeal case, the SC found that the CIT (Appeals) improperly dismissed the appeal without merit due to non-appearance, violating mandatory procedural requirements under Sections 250(4) and 250(6) of the Income Tax Act. The ITAT's affirmation of this dismissal was also deemed incorrect. The court set aside both orders and directed the CIT (Appeals) to rehear the appeal within 60 days, ensuring a substantive examination of the case on merits.

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• 2025 (5) TMI 1414
  Legal Case Summary:HC adjudicated a tax dispute involving illegal adjustment of refund amounts exceeding 20% of tax demand during appeal proceedings. The court ruled that respondents cannot adjust refunds beyond 20% pre-deposit while an appeal is pending. Key holdings include directing full refund of excess amounts, restraining coercive recovery actions, and mandating expeditious disposal of appeal within three months. The judgment upholds taxpayer protections under Income-Tax Act and emphasizes procedural fairness in tax recovery mechanisms.

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• 2025 (5) TMI 1413
  The SC affirmed the capital expenditure treatment of telecom license fees under Section 35ABB of the Income Tax Act. The Tribunal upheld amortization of license payments over the license period, rejected the appellant's initial revenue expenditure claim, and remanded unresolved additional grounds to the CIT(A). The tax computation was invalidated due to an assessed loss, directing deletion of the tax liability.

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• 2025 (5) TMI 1412
  The SC/Tribunal addressed multiple tax-related issues involving telecommunications expenditure. The key outcome involved remanding the case for fresh adjudication on transponder fees classification (capital vs. revenue expenditure), license fee amortization, and tax computation. The Tribunal directed waiver of section 234B interest, allowed computation of losses and credits, and emphasized principles of natural justice by ensuring the appellant's opportunity to present evidence and arguments.

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• 2025 (5) TMI 1411
  The IT Tribunal partially allowed the appeal, remanding two key issues to the Assessing Officer. First, the Rs. 1.43 crore cash deposit was set aside due to lack of statutory documentation for scrap sale income. Second, the Rs. 43 lakh cash payment was also remanded for further investigation. The Tribunal emphasized the taxpayer's obligation to provide comprehensive evidence explaining unexplained cash credits and expenditures, upholding the section 148 notice's validity.

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• 2025 (5) TMI 1410
  Tax tribunal addressed multiple issues involving duplicate PAN registrations for a company. The SC ruled that reassessment orders under the old PAN were unsustainable since transactions were already reported in the new PAN's accounts. The tribunal condoned the 585-day appeal delay, finding reasonable cause, and directed the AO to verify transactions. Consequential penalty orders were set aside, and the matter was remanded for fresh assessment.

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• 2025 (5) TMI 1409
  Tribunal ruled that payments to non-resident Dash Enterprises for clerical and support services do not constitute managerial services under Income Tax Act. Services performed outside India did not transfer technical knowledge, thus not taxable under domestic law or India-Australia DTAA. Tribunal deleted disallowance under section 40(a)(i), set aside interest levies, and allowed assessee's appeal, emphasizing taxpayer-favorable DTAA interpretation.

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• Customs

• 2025 (5) TMI 1378
  The SC ruled that an administrative circular cannot expand the exclusionary clause of a statutory notification. The court determined that crude degummed soyabean oil is a manufactured product, not an agricultural product, and therefore qualifies for duty-free credit entitlement. The circular attempting to restrict the exemption was declared legally ineffective, and the appellant's customs duty demand was set aside.

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• 2025 (5) TMI 1377
  SC upheld partial appeal in customs duty case. Redemption fine of Rs. 10,00,000 was maintained. Penalty under section 112(a) reduced to Rs. 5,00,000. Penalty under section 114AA was set aside due to non-retrospective application, as the Bill of Entry was filed before the section's enactment. Court balanced statutory interpretation with proportionality in penalty assessment.

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• 2025 (5) TMI 1376
  The Tribunal addressed key legal issues regarding FOB value determination in export goods. The SC held that Customs officers cannot modify the FOB value agreed between buyer and seller, and export incentives must be calculated based on the declared FOB value. The Tribunal invalidated the Additional Commissioner's re-determination of FOB value, set aside consequential penalties, and affirmed that Customs officers lack authority to alter transaction values for export incentive calculations.

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• 2025 (5) TMI 1375
  The HC analyzed a case involving a Customs Broker's alleged regulatory violations under CBLR, 2018. The Court found insufficient evidence to substantiate claims of misconduct. It ruled that the Customs Broker fulfilled verification obligations by examining authentic documents, and was not required to physically inspect client premises or independently verify export transaction details. The HC set aside the license revocation, emphasizing procedural fairness and the need for clear, substantive allegations in disciplinary proceedings.

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• 2025 (5) TMI 1374
  The SC Tribunal addressed three key customs law issues involving imported polyester fabric. The tribunal ruled that transaction values cannot be enhanced solely on DRI alerts, importers are entitled to CVD exemptions for goods manufactured outside India, and procedural delays do not invalidate notification benefits. The tribunal set aside value enhancements, allowed CVD exemptions, and confirmed customs duty benefits based on established legal precedents and statutory interpretation.

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• PMLA

• 2025 (5) TMI 1373
  SC resolved two key legal issues in NSEL investor recovery case:First, secured creditors lack priority over assets attached under PMLA and MPID Act, despite SARFAESI and RDB Act provisions. The Court upheld MPID Act's validity as a state legislation protecting depositors, finding no repugnancy with central laws. Second, properties attached under MPID Act remain available for decree execution, unaffected by IBC's moratorium. The Court emphasized Article 142 powers cannot supersede statutory provisions, maintaining a balanced approach to investor protection and legal principles.

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• 2025 (5) TMI 1372
  SC dismissed SLP, finding the case prima facie covered by precedent in Vijay Madanlal Choudhary v. Union of India. Court found no grounds to interfere with HC orders and kept legal questions open, disposing of all pending applications.

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• Service Tax

• 2025 (5) TMI 1371
  Tribunal addressed three key issues regarding service tax for an appellant's services. First, it ruled that intermediary services related to goods prior to 01.10.2014 were not taxable due to pre-amendment legal definitions. Second, the design and development services provided to foreign clients were determined to be export services, thus not subject to service tax. Third, the extended limitation period was deemed improper as no tax evasion intent was found. The Tribunal ultimately set aside service tax demands and associated penalties, favoring the appellant's interpretation of applicable tax regulations.

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• 2025 (5) TMI 1370
  The Tribunal addressed four key legal issues regarding rectification of a final order. It found that non-consideration of judicial decisions constitutes a mistake apparent on record, allowing partial rectification. The Tribunal incorporated references to omitted decisions and analyzed their applicability, while rejecting the alleged typographical error in the order's date. The rectification was limited to procedural corrections without altering substantive findings. Two cited judicial precedents were deemed inapplicable due to factual differences in the case.

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• 2025 (5) TMI 1369
  Tribunal ruled that service tax is not leviable on incentives and trade discounts received by a motor vehicle dealer from a manufacturer under a principal-to-principal dealership agreement. The incentives were deemed part of the sale transaction, not consideration for a taxable service. The Tribunal set aside the demand for service tax, interest, and penalties, emphasizing that performance-based incentives do not constitute taxable services.

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• 2025 (5) TMI 1368
  The SC examined the invocation of extended limitation period under section 73(1) of the Finance Act for service tax demands. The court held that the department could not invoke the five-year limitation period without proving deliberate suppression of facts with intent to evade tax. Prior knowledge of the appellant's activities and lack of concrete evidence of willful concealment rendered the show cause notices time-barred. The court ruled in favor of the appellant, setting aside the tax demands and penalties.

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• Central Excise

• 2025 (5) TMI 1367
  SC upheld the Tribunal's decision allowing CENVAT credit on fixed facility charges for gas supply. The Court determined that such charges qualify as an "input" under CENVAT Credit Rules, 2004, when directly connected to manufacturing processes. The revenue's challenge was rejected, establishing that duty paid on fixed facility charges is admissible as CENVAT credit if a clear manufacturing nexus exists.

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• 2025 (5) TMI 1366
  The SC/Tribunal resolved a complex central excise dispute involving assessable value calculation and CENVAT credit. The key ruling affirmed that for FOR destination sales, outward freight charges paid by the seller must be included in the transaction value. The court rejected the revenue department's challenge, holding the appellant's freight inclusion and duty payment were lawful. The decision upheld the appellant's claims for CENVAT credit and refund, setting aside demands and penalties.

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• 2025 (5) TMI 1365
  The HC examined multiple tax-related issues involving CENVAT credit, customs duty, and penalties. The court largely ruled in favor of the company, setting aside most duty demands and penalties. Key holdings included: job-work goods are not exempted, credit cannot be denied due to technical non-compliance, and penalties under Section 114A cannot exceed duty. The court reduced the total duty demand to Rs. 3,98,149/- and rejected the Revenue's appeals, providing significant clarifications on tax credit and penalty interpretations.

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• 2025 (5) TMI 1364
  The SC/Tribunal addressed central excise duty reassessment, finding no deliberate suppression of facts by the Appellant. The extended limitation period was improperly invoked since the Appellant had disclosed classification, ingredients, and exemption claims in registration and returns. The Department's allegations lacked merit, and the appellate order introducing new grounds was deemed unsustainable. The appeal was partially allowed, setting aside the extended limitation period while remanding classification issues for verification.

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• CST, VAT & Sales Tax

• 2025 (5) TMI 1363
  SC dismissed SLP due to 405-day delay in filing, explicitly stating "No case is made out to condone the delay." Court kept open potential legal questions while rejecting the petition on strict procedural grounds. The order focused solely on procedural non-compliance without examining underlying substantive issues.

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• 2025 (5) TMI 1362
  SC granted appellant final opportunity to deposit 12.5% of dues before Statutory Appellate Authority by 10.03.2025. Upon deposit, authority must entertain and expeditiously consider appeal. Failure to deposit by specified date will result in appeal being rejected. Substantive contentions remain open for consideration in statutory appeal.

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• 2025 (5) TMI 1361
  HC reviewed a tax dispute involving Form III B declarations under the UP Trade Tax Act. The court found the Tribunal erred by affirming a tax demand without establishing false declarations and ignoring binding Commissioner circulars. HC set aside the Tribunal's order, remanding the case for de novo consideration, emphasizing that each form must be independently examined and procedural safeguards must be followed.

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• 2025 (5) TMI 1360
  Job work case involving input tax credit under TNVAT Act. SC affirmed that only registered dealers who effect taxable sales of manufactured goods can claim input tax credit on capital goods. The court rejected the appellant's claim, emphasizing that job work does not constitute manufacturing for tax credit purposes. The appeal was dismissed, upholding the Appellate Tribunal's original decision.

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• 2025 (5) TMI 1359
  The HC examined revision petitions under the Odisha VAT Act, finding tax authorities lacked jurisdiction to entertain revisions against rectification orders. The court nullified the unauthorized orders and granted the petitioner liberty to pursue the correct appellate remedy under Section 77, recognizing the potential financial impact and principle of not penalizing procedural mistakes by counsel.

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• Indian Laws

• 2025 (5) TMI 1358
  SC analyzed partner's liability under Negotiable Instruments Act. Court held that mere claim of partnership retirement is insufficient without statutory compliance. Respondent remained liable for cheque dishonour despite asserting cessation as partner. High Court's order quashing proceedings was set aside, with directions to proceed with trial and examine factual evidence regarding partnership status and liability.

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