TMI Tax Updates - e-Newsletter
May 23, 2025

Case Laws in this Newsletter:

GST Income Tax Benami Property Customs PMLA Service Tax Central Excise Indian Laws

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Articles

1. GST applicability on Gold

   By: Lokesh Aggarwal

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2. VALIDITY OF REVIVAL OF A COMPANY

   By: DR.MARIAPPAN GOVINDARAJAN

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3. Appellate Authority had no power to condone delay after expiry of one month beyond prescribed period of limitation

   By: Bimal jain

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4. Why Municipal Corporations are not able to stop the Banned ‘Single Use Plastics’ (SUPs)?

   By: YAGAY andSUN

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5. Tasmania’s Ancient Forests Under Siege: A Global Call to Action

   By: YAGAY andSUN

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6. 🔧 ISO 9809 and ISO 11120 – Seamless Steel Gas Cylinders and Seamless Steel Tubes for High-Pressure Gases.

   By: YAGAY andSUN

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

   By: YAGAY andSUN

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8. Comprehensive Guide to Gas Cylinder Rules and Compliances in Chemical Industries.

   By: YAGAY andSUN

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9. Gas Cylinder Rules and applicable compliances for Chemical Industries.

   By: YAGAY andSUN

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News

1. Himadri Speciality to pick 16 pc stake in US-based International Battery Company

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2. Getepay Receives Final RBI Approval to Operate as Online Payment Aggregator

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3. Average mandi prices of major food crops ruling below MSP: RBI article

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4. Amid global realignments, India positioned to become 'connector country' in tech, pharma trades: RBI bulletin

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5. US tariff hikes, Myanmar war, sea disputes will top ASEAN summit agenda

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6. Kenyans worry US duty-free trade deal might end, expose them to Trump's tariffs

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7. Saying Trump exceeded his authority, 12 states ask court to strike down his sweeping tariffs

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8. “CemHack for Green Infra” Hackathon Launched to Drive Innovation in Cement and Construction Sector

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9. International Tea Day Convention held at Vanijya Bhawan

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10. CRCL and IIT Delhi Sign Memorandum of Understanding (MoU) to strengthen scientific capabilities and promote ease of doing business

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Notifications

GST - States

1. 11/2025-State Tax - dated 29-4-2025 - Mizoram SGST

Mizoram Goods and Services Tax (Second Amendment) Rules, 2025.

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2. G.O.Ms.No. 57 - dated 12-5-2025 - Telangana SGST

Telangana Goods and Services Tax (Amendment) Rules, 2025

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3. G.O.Ms.No. 56 - dated 12-5-2025 - Telangana SGST

State Tax Notification for waiver of the late fee

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4. 8/2025 – State Tax (Rate) - dated 12-5-2025 - Telangana SGST

Amendment in Notification No. 17/2017- State Tax (Rate) dt. 29.06.2017

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5. 07/2025 – State Tax (Rate) - dated 12-5-2025 - Telangana SGST

Amendment in Notification No. 13/2017- State Tax (Rate), Dt. 29-06-2017

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6. 06/2025 – State Tax (Rate) - dated 12-5-2025 - Telangana SGST

Amendment in Notification No. 12/2017- State Tax (Rate), Dt. 29-06-2017

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7. 05/2025 – State Tax (Rate) - dated 12-5-2025 - Telangana SGST

Amendment in Notification No. 11/2017- State Tax (Rate), Dt. 29-06-2017

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IBC

8. IBBI/2025-26/GN/REG126 - dated 19-5-2025 - IBC

Insolvency and Bankruptcy Board of India (Insolvency Resolution Process for Corporate Persons) (Third Amendment) Regulations, 2025

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9. IBBI/2025-26/GN/REG125 - dated 19-5-2025 - IBC

Insolvency and Bankruptcy Board of India (Insolvency Resolution Process for Personal Guarantors to Corporate Debtors) (Amendment) Regulations, 2025

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Circulars / Instructions / Orders

Customs

1. Instruction No.12/2025 - dated 22-5-2025

Disposal of Red Sanders seized by DRI and Customs field formations

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Highlights / Catch Notes

GST

• Seizure of Mentha Oil Upheld: GST Act Sections 35, 73/74 Govern Accounting Discrepancies and Tax Determination

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• Input Tax Credit Denied for Unsold Inventory at GST Transition, Precedent Limits Dealer's Retrospective Credit Claims

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• Anticipatory Bail Denied: Applicant Linked to Fictitious Firm Fails to Secure Pre-Arrest Relief Under GST Inquiry

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• Digital Signatures Critical: GST Show Cause Notice Invalidated for Procedural Defect in Signature Authentication Process

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• Legal Challenge Succeeds: GST Registration Cancellation Invalidated Due to Procedural Defects in Show Cause Notice

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• GST Registration Cancellation Quashed: Authorities Violated Natural Justice by Improper Notice and Hearing Procedure

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• Transshipment Penalty Dismissed: Technical Portal Errors Not Sufficient Grounds for Direct Writ Challenge, Appellate Remedy Preferred

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• Refund Claim Rejected: Unutilized CENVAT Credit Challenge Fails Under Statutory Interpretation and Precedent

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• Air Conditioning and Fire Extinguishing Systems Lease Ruling Sent Back for Comprehensive Tax Classification Review

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• Water Quality Management Contracts Clarified: Tax Exemption Based on Service Composition and Goods Percentage Threshold

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• Landmark GST Ruling: Construction Services Taxed at 18% with Land Value Deduction, No Special Exemptions Apply

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Income Tax

• Tax Dispute Resolution: ITAT Orders Fresh Assessment, Remands Section 68 Additions, and Upholds Partial Expense Disallowance

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• Tax Credit Fully Granted to Property Co-Owner Who Paid Capital Gains Tax and Received Sale Proceeds

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• Tax Assessment Upheld: Undisclosed Income Confirmed with 8% Gross Profit and 1% Commission Under Section 153A

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• Legal Challenge Succeeds: Dispute Settlement Allowed Despite Loss Carry Forward Limitations Under Finance Act Provisions

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• Delayed Audit Report Filing Granted Relief: Section 12A Exemption Upheld Despite Procedural Noncompliance

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• Invalid Assessment Order Quashed: Procedural Flaws Render Demand Notice Null, Directing Fresh Review with Fair Hearing

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• Taxpayer Wins: Income Estimation by Assessing Officer Doesn't Automatically Trigger Penalty, Tribunal Provides Relief Under Sections 270A and 272A

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• International Transaction Reimbursement: Penalty Quashed as Income Already Declared and Reasonable Cause Established

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• Management Support Services Income Not Taxable Under India-Singapore DTAA, Tribunal Upholds Precedent in Favor of Assessee

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• Hardship Compensation in Property Redevelopment Deemed Capital Receipt, Not Taxable Income Under Section 45

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• Tribunal Validates Corporate Expense Claims, Upholds Tax Neutrality and Rejects Revenue's Unsubstantiated Additions

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• Training and Development Programs Recognized as Core Educational Activities, Qualifying for Tax Exemption Under Section 2(15)

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Customs

• Common Adjudication Authorities Appointed for Export Units to Resolve Pending Customs and Excise Duty Notices Across Duty Thresholds

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• Legal Challenge to Pesticide Misdeclaration Dismissed as Petitioner Already Pursued Alternative Remedies Under Sections 177 IPC and 132 Customs Act

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• Customs Duty Case: Tribunal Grants Compensatory Interest at Reduced 6% Rate Under Section 27A, Prioritizing Substantial Justice

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• Importer Successfully Appeals Seizure of Novaluron Goods, Wins Right to Re-Export Without Penalties Under Insecticides Act

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• Customs Duty Exemption Upheld: Imported Project Equipment Protected Against Retroactive Regulatory Restrictions

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• Importers Win: Valuation Challenge Upheld as Revenue Fails to Prove Underreporting of Goods' True Value Under Section 14

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• Tribunal Overturns Penalty Against Managing Director, Finds No Deliberate Duty Evasion Intent Under Section 112(a)(ii)

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• Duty Credit Scrips Validated for Excise Duty Payment by 100% Export-Oriented Units Under Foreign Trade Policy

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• Customs Broker Wins Partial Appeal: Licence Revocation Overturned Due to Lack of Conclusive Misconduct Evidence

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• Customs Duty Evasion: Company Caught Manipulating Invoices, Faces Penalties for Deliberate Undervaluation of Import Transactions

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Benami Property

• High Court Validates Benami Property Order, Upholds Seizure After Petitioners Fail to Challenge Notices or Appear Before Authorities

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Indian Laws

• Property Ownership Dispute: Plaint Challenges Limited by Lack of Direct Knowledge and Procedural Constraints Under Rule 11 CPC

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• Corruption Case Dismissed: Critical Evidence Gaps Undermine Prosecution's Narrative, Accused Acquitted Under Benefit of Doubt Principle

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• Free Speech Prevails: Online Platforms Protected from Censorship Under Constitutional Right to Expression and Information

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• Revision Petition Rejected: Cheque Bounce Case Upheld with Statutory Presumption Under Section 138 NI Act

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• Supreme Court Clarifies Jurisdictional Challenges in Arbitration: Section 34 Interpretation Resolves Precedent Conflicts

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PMLA

• Regulatory Violations Do Not Provide Blanket Immunity: FEMA Cannot Shield Parties from Criminal Prosecution Under IPC

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Service Tax

• Delayed adjudication Invalidate Service Tax Demand, Statutory Time Limits Breach Renders Order Unsustainable

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Case Laws:

• GST

• 2025 (5) TMI 1519
  SC dismissed the SLP, condonating delay but finding no merit for interference under Article 136. The Court preserved petitioners' alternative legal remedies for recovery while disposing of the petition and any pending applications, effectively maintaining the lower court's decision without substantive intervention.

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• 2025 (5) TMI 1518
  HC analyzed a GST registration cancellation case involving procedural defects. The court found the show cause notice, cancellation orders, and recovery notice legally invalid due to lack of specific grounds, absence of reasoning, and violation of natural justice principles. All challenged actions were quashed, with permission granted to initiate fresh proceedings in compliance with legal requirements. The ruling emphasized the importance of providing clear, detailed notices and following proper procedural safeguards in administrative actions.

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• 2025 (5) TMI 1517
  SC found significant procedural irregularities in tax proceedings under CGST Act. The court held that the appellant was denied natural justice, as the adjudicating authority ignored the submitted reply and audit report indicating full tax payment. The impugned orders were set aside, and the matter was remanded for fresh adjudication with proper opportunity for the appellant to present submissions within prescribed timelines.

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• 2025 (5) TMI 1516
  SC upheld that GST proceedings under Section 130 are not maintainable for excess stock found during survey. The court ruled that Sections 73/74 are the appropriate legal mechanism for addressing unaccounted goods. The petitioner lacked jurisdiction to initiate Section 130 proceedings, and the appellate order exempting tax, penalty, and fine on mentha oil was legally sound and correctly decided.

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• 2025 (5) TMI 1515
  The SC examined the entitlement to Input Tax Credit (ITC) under the UP VAT Act for unsold closing stock at GST regime transition. The Court strictly interpreted Section 13(1)(a), holding that ITC can only be claimed for goods re-sold. Since the goods remained unsold as of 30.6.2017, the ITC claim was rejected. The transition to GST was deemed a discontinuation of the previous tax regime, effectively terminating ITC entitlement. The revision was allowed in favor of Revenue.

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• 2025 (5) TMI 1514
  HC found significant procedural irregularities in GST tax adjudication. The court set aside demand orders due to improper service of show cause notice and lack of fair hearing opportunity. While deferring final determination on notification validity to SC, the HC directed fresh adjudication with proper notice and personal hearing. The order emphasizes procedural fairness in tax proceedings, ensuring taxpayers receive adequate communication and opportunity to respond.

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• 2025 (5) TMI 1513
  HC analyzed GST notifications challenging deadline extensions for adjudication. Key issues involved procedural validity, natural justice, and notice communication. The Court set aside ex-parte orders, directing fresh adjudication with proper notice and hearing. While deferring to SC's pending ruling on notification validity, the HC emphasized procedural fairness, mandating email notices and portal access for the petitioner. The matter was remanded for re-examination, ensuring the party's right to be heard.

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• 2025 (5) TMI 1512
  HC invalidated GST notice DRC-01A due to absence of mandatory digital signature under Rule 26(3) of Jharkhand GST Tax Rules. Court found entire document chain procedurally defective, set aside impugned orders, and granted authorities liberty to reinitiate proceedings with proper legal compliance, ensuring due process and reasoned order.

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• 2025 (5) TMI 1511
  HC dismissed transit anticipatory bail application under Section 482 for a GST-related inquiry. Court emphasized bail is granted only in exceptional circumstances, noting the applicant's absence and failure to seek pre-arrest bail from the competent jurisdictional court. The application was rejected without examining the case merits, reinforcing strict standards for transit anticipatory bail.

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• 2025 (5) TMI 1510
  The HC examined challenges to a GST tax notice and related notifications under Section 73 of the DGST Act. The court upheld the adjudication order, finding procedural compliance and opportunity to be heard. While deferring final determination on notification validity to the SC, the court granted liberty to appeal without limitation constraints and mandated GST portal access for the petitioner.

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• 2025 (5) TMI 1509
  HC quashed GST registration cancellation order due to procedural irregularities. The show cause notice was improperly communicated, and the cancellation order lacked reasoned findings. Court found violations of natural justice, directing restoration of registration and allowing submission of belated returns within three months. The decision emphasized proper communication and reasoned decision-making in quasi-judicial proceedings.

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• 2025 (5) TMI 1508
  Transporter challenged penalty for e-way bill discrepancy during goods transshipment. HC held that writ petition was not maintainable due to available alternative appeal remedy. Court emphasized adherence to CGST/WBGST Act procedural requirements and declined to interfere with penalty order, directing petitioner to pursue appellate process for resolving factual disputes regarding vehicle registration and technical portal issues.

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• 2025 (5) TMI 1507
  SC remanded case to WBAAR regarding GST classification of air conditioning, fire sprinkler, and electrical installation services. The court found conflicting interpretations about whether installed equipment constitutes movable goods or immovable property. Unable to definitively resolve the classification, SC directed WBAAR to conduct a comprehensive review considering contractual terms, asset nature, and applicable legal tests, without rendering a final verdict on the GST rate applicable.

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• 2025 (5) TMI 1506
  The AAR ruled on GST classification for Jal Jeevan Mission contracts involving government services and water quality management. Pure services directly related to drinking water functions were exempted from GST. Composite supplies involving goods exceeding 25% of contract value were deemed taxable, with tax rates determined by the principal supply component. A Mobile Laboratory Van was classified as a special purpose vehicle taxable at 9% CGST plus 9% SGST. The ruling clarified GST treatment for government service contracts with mixed goods and service elements.

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• 2025 (5) TMI 1505
  AAR ruled on GST applicability for construction services under a 99-year lease. The HC determined GST is payable at 18% (SAC 9954) for construction work, whether lump sum or periodic payments. One-third of consideration can be deducted for land portion. Leasing constructed units does not qualify as accommodation service, and maintenance charges attract 18% GST under SAC 9995.

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• 2025 (5) TMI 1442
  SC dismissed special leave petitions while condoning delay, explicitly stating that the dismissal would not preclude petitioners from pursuing alternative legal remedies. The court's ruling maintained procedural flexibility without definitively resolving the underlying substantive issues, leaving open future legal pathways for the parties involved.

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• Income Tax

• 2025 (5) TMI 1504
  SC dismissed Special Leave Petitions, upholding HC's previous order. The court saw no grounds to intervene, condonded delay, and disposed of pending applications, effectively maintaining the lower court's ruling without substantial modification.

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• 2025 (5) TMI 1503
  SC order resolved tax dispute by directing Registry to release deposited funds (Rs. 95,03,859/-) to respondents. Department must release lands to appellants within four weeks. Appeals disposed of, with substantial legal questions left open, ensuring fair resolution without prejudicing future legal interpretations.

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• 2025 (5) TMI 1502
  HC quashed a Section 148 income tax reassessment notice for lacking mandatory prior approval from the Principal Chief Commissioner as required under Section 151(ii). The court held that the notice issued beyond three years from the assessment year was procedurally invalid, despite the extended limitation under TOLA. Revenue was granted liberty to re-initiate proceedings after obtaining proper statutory sanction.

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• 2025 (5) TMI 1501
  The HC analyzed the Direct Tax Vivad Se Vishwas Scheme's applicability for a tax dispute involving loss carry-forward. The Court held that failure to claim loss in a subsequent assessment year does not preclude dispute settlement for the original year. The Court rejected the revenue authority's narrow interpretation, emphasizing that Rule 9 is procedural and cannot restrict the scheme's scope. The petition was allowed, directing the authority to process the application in accordance with the scheme's provisions.

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• 2025 (5) TMI 1500
  SC found the Commissioner erred in rejecting a charitable trust's delayed Audit Report filing during COVID-19. The court condoned the 76-day delay, ruling the Commissioner incorrectly relied on an outdated circular and failed to recognize pandemic-related hardships. The SC directed reconsideration of the Audit Report and modification of the tax demand, emphasizing a liberal interpretation of "genuine hardship" during extraordinary circumstances.

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• 2025 (5) TMI 1499
  HC quashed the Assessment Order and demand notice under Income Tax Act due to procedural violations. The court found that the Assessing Officer did not consider the petitioner's reply to the show-cause notice and failed to address objections against assessment reopening. These omissions violated principles of natural justice. The matter was remitted for fresh consideration, ensuring the petitioner's right to be heard is respected.

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• 2025 (5) TMI 1498
  Tribunal ruled that a minor three-day delay in uploading Form 10B does not warrant denial of tax exemption for a charitable trust under section 11 of Income Tax Act. The court found the filing requirement procedural, not substantive, and emphasized that substantial compliance suffices. The delay was deemed condonable under section 119(2)(b), and the trust's exemption claim was ultimately allowed.

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• 2025 (5) TMI 1497
  TRIB dismissed Revenue's appeal challenging LTCG exemption. SC held that general investigation reports cannot disallow tax exemption without specific evidence proving transaction's illegitimacy. Assessee successfully demonstrated genuine share sale on recognized stock exchange with STT payment. Revenue failed to establish direct nexus between assessee's transactions and alleged bogus entries. CIT(A)'s order deleting tax addition was upheld.

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• 2025 (5) TMI 1496
  The SC/Tribunal examined a cooperative society's tax deduction claims under Section 80P(2)(a)(i). The key ruling allowed the entire gross total income of Rs. 1,53,59,677 as deductible business income from credit facilities. The court condoned a 96-day delay in filing appeals, deleted unexplained cash deposit additions, and directed proper segregation of income sources. The decision provides comprehensive guidance on tax treatment of cooperative society income.

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• 2025 (5) TMI 1495
  The SC/Tribunal reviewed penalties under Income Tax Act Sections 270A and 272A(1)(d). The court found both penalties unsustainable due to lack of clarity in identifying the nature of income reporting default and reasonable cause for non-compliance with notices. The AO's estimation of income without rejecting books of accounts and the assessee's bona fide participation in proceedings led to deletion of penalties. Appeals were allowed, with both Section 270A and 272A(1)(d) penalties set aside.

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• 2025 (5) TMI 1494
  In this case, the HC examined the mandatory requirement of filing Form 10CCB for claiming deduction under section 80IAC. The court held that start-ups must submit the audit report in Form 10CCB within prescribed timelines, and failure to do so results in automatic disallowance of the tax deduction. The ruling affirms strict procedural compliance for start-ups seeking tax benefits, emphasizing that statutory requirements cannot be circumvented through technical arguments.

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• 2025 (5) TMI 1493
  The SC/Tribunal addressed four key tax appeal grounds involving income tax assessment. The Tribunal partially allowed the appeal, remanding two issues (revised return figures and section 68 cash credits) for fresh assessment by the Assessing Officer with proper reasoning. The appeal grounds regarding non-consideration of submissions and expense disallowance were dismissed. The key principles established include the taxpayer's obligation to produce documentary evidence and the requirement for speaking orders with reasoned findings.

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• 2025 (5) TMI 1492
  The SC/ITAT addressed the validity of deduction claims under section 80JJAA, holding that belated filing of Form 10DA does not automatically disqualify the deduction. The court ruled that procedural requirements are directory, not mandatory, and claims can be admitted at the appellate stage if supporting documents are filed before assessment completion. The assessee's deduction claim was ultimately allowed, reversing lower authorities' rejections.

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• 2025 (5) TMI 1491
  The SC/Tribunal addressed two primary issues: (1) legality of depositing Rs. 13,75,000 in Specified Bank Notes on 25.11.2016, and (2) disallowance of 10% car expenses. The Tribunal ruled in favor of the assessee on the first issue, holding the deposit lawful under the Specified Bank Notes (Cessation of Liabilities) Act, 2017, and upheld the disallowance of car expenses due to lack of evidence. The appeal was partially allowed.

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• 2025 (5) TMI 1490
  The SC/Tribunal addressed unexplained cash deposits under section 69A of Income Tax Act. Despite the assessee's failure to explain deposits, the court applied a 30% profit rate based on prior assessments under section 144. The Tribunal upheld the CIT(A)'s approach, restricting the taxable addition to Rs. 89,40,039/- from total deposits of Rs. 2,98,00,130/-, finding the estimation reasonable and consistent with previous years' assessments.

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• 2025 (5) TMI 1489
  INCOME TAX TRIBUNAL DECISIONThe Tribunal ruled against levying a penalty under section 271AA for non-reporting of a reimbursement transaction in Form 3CEB. The tribunal found the transaction was a transfer pricing adjustment from prior years, already taxed, and not a new international transaction. The assessee had reasonable cause for non-reporting, thus qualifying for immunity under section 273B. The appeal was allowed, and the penalty was set aside.

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• 2025 (5) TMI 1488
  The SC/Tribunal examined the taxability of management support services under the India-Singapore DTAA. The key issue was whether such services constitute Fees for Technical Services (FTS) under Article 12. The Tribunal held that the services did not 'make available' technical knowledge or skills enabling independent service provision. Consequently, the income was not taxable as FTS, following previous coordinate bench rulings and deleting the tax demand of INR 15,59,23,979.

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• 2025 (5) TMI 1487
  Tribunal ruled that CPC lacks jurisdiction to disallow Section 80P deduction for AY 2019-20 due to late filing. The 2021 amendment empowering CPC to reject Chapter VI-A deductions is prospective, applying only from AY 2021-22. The Tribunal reversed lower authorities' orders, directing the AO to allow the claimed deduction, emphasizing that prior to the amendment, no mechanism existed to deny such deductions based on late return filing.

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• 2025 (5) TMI 1486
  The SC/Tribunal addressed three key tax law issues: (1) Section 14A disallowance without exempt income was rejected, (2) interest expense disallowance under Section 36(1)(iii) was negated due to sufficient own funds, and (3) penalty under Section 270A was quashed due to ambiguous show cause notice. The rulings favored the assessee on procedural and substantive grounds, emphasizing precise legal interpretation and natural justice principles.

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• 2025 (5) TMI 1485
  Tribunal allowed appeal challenging income tax assessment. The key issues involved carry forward of house property loss, lack of rental documentation, and penalty under section 270A. The Tribunal found no deliberate misreporting, accepted the assessee's explanation for absence of formal rental agreement, and deleted the penalty. The 75-day delay in filing appeal was also condoned, with the appeal being admitted for adjudication.

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• Benami Property

• 2025 (5) TMI 1469
  HC dismissed writ petition challenging an order declaring seized cash as benami property. The court found no jurisdictional error, as petitioners failed to respond to multiple summons and provide credible explanation for cash source. The court directed petitioners to seek remedies before the designated Adjudicating Authority under the Benami Transactions Act, declining to interfere under Article 226 of the Constitution.

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• Customs

• 2025 (5) TMI 1468
  HC dismissed writ petition challenging criminal complaint under Section 177 IPC related to customs investigation. The court held that the petitioner had alternative statutory remedies through revision petition and could not bypass those by seeking writ jurisdiction. The complaint was found prima facie maintainable, with no merit in arguments of double jeopardy or absence of legal obligation to furnish information. The court emphasized adhering to proper legal procedures and statutory remedies.

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• 2025 (5) TMI 1467
  DRI officers' jurisdictional challenge resolved by SC in Canon-II case. HC restored appeals to CESTAT for re-adjudication, overturning previous orders that invalidated show cause notices. SC definitively ruled DRI officers are proper officers under Section 28 of Customs Act, mandating fresh hearings on merits for pending cases challenging jurisdictional validity.

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• 2025 (5) TMI 1466
  The SC examined the Tribunal's jurisdiction to grant compensatory interest on delayed customs duty refunds. The Court affirmed the Tribunal's power to award interest beyond statutory provisions, modifying the interest rate from 12% to 6% per annum. The ruling emphasized preventing unjust enrichment by the Department and highlighted the importance of timely adjudication of provisional assessments, despite technical objections.

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• 2025 (5) TMI 1465
  The SC/Tribunal addressed a complex customs case involving mis-declared restricted goods (Novaluron insecticide). The court ruled in favor of the importer, permitting unconditional re-export of the goods without penalties. The decision emphasized distinguishing between restricted and prohibited goods, recognizing the importer's bona fide intent and right to re-export goods received by mistake from an overseas supplier.

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• 2025 (5) TMI 1464
  Tribunal ruled against Revenue's retrospective duty recovery attempt for imported machinery. The court found that post-import conditions inserted via 2008 and 2014 notifications were invalid when applied to 2005-2007 imports. No bond was executed at import, limitation period had expired, and goods were no longer available for confiscation. Appeals by Revenue were dismissed, upholding the original duty exemption for the importers.

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• 2025 (5) TMI 1463
  The SC examined the validity of undervaluation charges against an importer under the Customs Act. The court found the department's reassessment unsustainable, as it relied solely on a tentative statement by the proprietor without corroborative evidence. The SC emphasized that rejecting transaction value requires cogent proof, sequential application of valuation rules, and proper procedural safeguards. The appeal was allowed, and the original transaction value was upheld.

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• 2025 (5) TMI 1462
  Tribunal addressed penalty liability under Customs Act for import duty discrepancies. Rejected automatic penalty for Managing Director, emphasizing requirement of conscious duty evasion. Determined that appellant's conduct of paying excess duty and seeking refunds negated intentional evasion. Tribunal set aside penalty, ruling managerial position alone does not trigger liability without proof of deliberate attempt to evade customs duty.

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• 2025 (5) TMI 1461
  The SC/Tribunal resolved a complex excise duty dispute involving Export Oriented Units (EOUs) and Served From India Scheme (SFIS) scrips. The key ruling affirmed that debiting SFIS scrips constitutes valid duty payment when clearing goods to Domestic Tariff Area, enabling duty-free input procurement. The tribunal rejected revenue's arguments, holding that SFIS scrips are a legitimate mode of discharging excise duty obligations under Central Excise Act and relevant notifications.

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• 2025 (5) TMI 1460
  Tribunal partially found breaches of customs broker regulations 10(d) and 10(n) regarding client advisory and verification duties. While rejecting full abetment charges, the Tribunal held that the customs broker exhibited carelessness in client verification. The Tribunal set aside licence revocation and security deposit forfeiture as disproportionate, maintaining the regulation 18 penalty. The decision emphasizes due diligence requirements balanced with proportional disciplinary actions.

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• 2025 (5) TMI 1459
  SC upheld customs duty demand against importers for deliberate undervaluation of goods. The court found evidence of fraudulent invoicing, with appellants submitting artificially low-value documents to evade customs duties. Despite procedural opportunities, appellants failed to cooperate or challenge evidence. The court confirmed confiscation of goods, redemption fine, duty demand, and penalties under Customs Act, dismissing all appellants' challenges to the original order.

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• PMLA

• 2025 (5) TMI 1458
  SC granted bail to appellant in an ongoing investigation involving multiple ECIRs after 80 days of custody. Court noted no imminent trial commencement and relied on precedent to allow bail with stringent conditions, including passport surrender and court attendance. The decision balanced custodial detention against bail rights, considering the maximum sentence and investigation complexity.

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• 2025 (5) TMI 1457
  SC dismissed the SLP, upholding the HC order without substantive intervention. The court found no compelling reason to modify the lower court's decision, effectively maintaining the existing judicial determination and rejecting the petitioner's challenge.

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• 2025 (5) TMI 1456
  SC upheld ED arrests under PMLA as legal while quashing Delhi Police arrests for procedural non-compliance. The Court ruled that FEMA's decriminalization does not grant immunity from IPC prosecution for underlying criminal acts. FIR registration was deemed valid based on evidence of cognizable offences. Petitioners must be released on personal bonds in the FIR case, with ED arrests remaining valid.

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• Service Tax

• 2025 (5) TMI 1455
  The HC set aside an Order-in-Original imposing service tax liabilities and penalties due to significant procedural delays. The court found no justification for the nearly three-year gap between show cause notice and order issuance, violating statutory time limits under Section 73(4B) of the Finance Act, 1994. The order was quashed, effectively nullifying the tax demand and preventing coercive recovery actions against the petitioner.

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• 2025 (5) TMI 1454
  The Appellate Tribunal dismissed the appeal involving work contract services to a government department (BSNL). The tribunal found partial exemption applicable only to maintenance services, with full service tax liability on original works. Due to the total demand being under Rs. 2 lakhs and not involving rate or valuation issues, the appeal was deemed non-maintainable under statutory provisions, effectively upholding the original tax assessment and penalties.

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• 2025 (5) TMI 1453
  Stock broker appealed against service tax levy on Delayed Payment Charges (DPC). SC/Tribunal ruled DPC are penal charges, not taxable service consideration. The court determined DPC do not constitute a separate service, relying on CBEC Circular and precedent cases. Tribunal concluded DPC are safeguards for commercial interests, not intended as taxable service, and thus exempt from service tax.

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• Central Excise

• 2025 (5) TMI 1452
  The SC examined the mandatory pre-deposit condition under Section 35B of the Central Excise Act, 1944. The Court held that the statutory pre-deposit requirement is non-negotiable and cannot be waived under Article 226, even in cases of financial hardship. The appeal was correctly dismissed for non-compliance with the pre-deposit mandate, and the writ petition seeking relaxation was rejected, affirming the strict interpretation of the statutory provision.

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• Indian Laws

• 2025 (5) TMI 1451
  SC analyzed a partition suit's maintainability under the Benami Transaction Act. The Court held that the suit is not barred at the threshold, as the properties' benami character requires evidentiary determination. Subsequent purchasers cannot challenge suit maintainability under Order VII Rule 11 CPC without conclusive evidence. The Court emphasized that disputed factual issues must be resolved during trial, not at the plaint rejection stage.

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• 2025 (5) TMI 1450
  The SC ruled in favor of the insured, finding that basement flooding from heavy rainfall constituted a covered peril under the insurance policy, not excluded seepage. The Court rejected the insurer's second survey report as arbitrary and unreliable, prioritizing the first comprehensive survey report. The claim repudiation was deemed unjustified, and the case was remanded to determine compensation, emphasizing fair claim assessment and good faith in insurance disputes.

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• 2025 (5) TMI 1449
  SC resolved complex arbitration jurisdiction issues involving MP Act, 1983 and Arbitration Act, 1996. The Court held that jurisdictional objections must be raised timely before the arbitral tribunal, and failure to do so results in waiver. Awards cannot be annulled solely on jurisdictional grounds if no early objection was made. The MP Act, 1983 prevails over the 1996 Act for specific state government contract disputes, but procedural safeguards remain critical.

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• 2025 (5) TMI 1448
  The SC analyzed a corruption case involving an alleged bribe demand by a public officer. After carefully examining procedural safeguards, witness testimonies, and evidentiary standards, the Court found significant contradictions in the prosecution's case. The appeal was allowed, with the conviction set aside due to insufficient proof beyond reasonable doubt. The Court emphasized the importance of rigorous evidence in corruption prosecutions and extended benefit of doubt to the accused.

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• 2025 (5) TMI 1447
  The SC examined the legality of a HC direction to take down web pages discussing ongoing court proceedings. The Court found the directive unwarranted, ruling that hosting critical commentary does not inherently constitute interference with judicial processes. It emphasized the constitutional right to free speech, holding that criticism of court orders is permissible unless it poses a substantial risk to judicial fairness. The appeal was allowed, preserving the principles of open justice and freedom of expression.

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• 2025 (5) TMI 1446
  SC analyzed a mineral quarry tender dispute focusing on document compliance and tender process validity. The Court upheld the tendering authority's decision, finding the petitioner's Income Tax Return and GST certificate substantively compliant despite technical variations. The SC reversed the HC's order, emphasizing judicial restraint in tender matters and rejecting strict literal interpretations that would unfairly disadvantage bidders. The highest bidder's tender was ultimately reinstated.

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• 2025 (5) TMI 1445
  HC resolved a complex leave and license dispute through a comprehensive settlement. The parties agreed on Rs. 3 crore full payment of license fee arrears, statutory dues of Rs. 33.6 lakhs, and possession handover by October 2028. The Court encouraged amicable resolution, set aside prior HC order rejecting arbitration, and facilitated withdrawal of complaints and FIRs, emphasizing judicial preference for negotiated settlements in commercial disputes.

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• 2025 (5) TMI 1444
  The SC examined disciplinary proceedings against a bank officer, focusing on mandatory CVC consultation before issuing a charge sheet. The Court found the bank's actions arbitrary, as it served a charge sheet without obtaining first-stage CVC advice despite acknowledging a vigilance angle. The SC quashed the disciplinary proceedings, held the suspension illegal, and directed payment of retirement benefits, emphasizing procedural fairness and the importance of following regulatory guidelines in vigilance cases.

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• 2025 (5) TMI 1443
  SC upheld accused's conviction under Section 138 of Negotiable Instruments Act. The court found no merit in the accused's defense that the cheque was issued as security rather than for debt discharge. Statutory presumptions under Sections 118 and 139 remained unrebutted due to lack of credible evidence. The concurrent findings of lower courts were maintained, and the conviction was affirmed.

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