TMI Tax Updates - e-Newsletter
May 24, 2025

Case Laws in this Newsletter:

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

Articles

1. COMPENSATION FOR FLOOD AFFECTED BUILDING

   By: DR.MARIAPPAN GOVINDARAJAN

2. UNLOCKING CASH FLOW WITH MOOWR

   By: Pradeep Reddy

3. GST Registration cannot be cancelled without proper verification of the supporting evidence

   By: Bimal jain

4. How Safeguard Duty is Imposed?

   By: YAGAY andSUN

5. How Anti-Dumping Duty is Imposed?

   By: YAGAY andSUN

6. Working Towards a More Sustainable World.

   By: YAGAY andSUN

7. Why India Didn't Join RCEP: A Detailed Analysis

   By: YAGAY andSUN

8. The Role of Artificial Intelligence in Solving Complex Legal and Tax Issues — A Tool for the Modern Professional!

   By: YAGAY andSUN

9. Reviving Swadeshi Spirit: Phasing Out Unnecessary Imports to Support Indian MSMEs

   By: YAGAY andSUN

News

1. FREQUENTLY ASKED QUESTIONS ON ACCOUNT OPENING BY PERSONS WITH DISABILITY

2. RBI to pay govt record dividend of Rs 2.69 lakh crore for FY25

3. Trump threatens 50% tariffs on EU and 25% penalties on Apple as his trade war intensifies

4. Trump tariff threats on EU, Apple send US futures, global markets skidding

5. Trump threatens 25% import tax on Apple unless iPhones are made in US

6. 'Investment, not tariffs,' says Ishiba after telephone talks with Trump before 3rd round of talks

7. G7 nations paper over differences on tariffs and Ukraine, agree to address 'imbalances'

8. India calls for dismantling of export controls among BRICS members at 15th BRICS Trade Ministers’ Meeting

Notifications

Customs

1. 30/2025 - dated 23-5-2025 - Cus

Seeks to amend notification No. 55/2022-Customs dated 31.10.2022 to remove the condition required for availing exemption on Bangalore Rose Onion.

GST - States

2. 11/2025 - State Tax - dated 1-5-2025 - Chhattisgarh SGST

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

3. 09/2025 - State Tax - dated 1-5-2025 - Chhattisgarh SGST

Seeks to bring in force provisions of various rule of Chhattisgarh Goods and Services Tax (Amendment) Rules, 2024

4. 49/2023-State Tax - dated 21-5-2025 - Delhi SGST

Supply of online money gaming, supply of online gaming other than online money gaming and supply of actionable claims in casinos under section 15(5) of DGST Act notified

5. 520/XI-2&25-9(47)-17-T.C.-283-U.P.Act-1-2017-Order-(347)-2025 - dated 28-3-2025 - Uttar Pradesh SGST

Seeks to bring in force provision of rule 2 of the Uttar Pradesh Goods and Services Tax (Sixtieth Amendment) Rules, 2023

6. 331/XI-2–25-9(47)-17-T.C.282-U.P.Act-1-2017-Order(346)-2025 - dated 12-3-2025 - Uttar Pradesh SGST

State Tax Notification for waiver of the late fee

Circulars / Instructions / Orders

SEBI

1. SEBI/HO/MIRSD/SECFATF/P/CIR/2025/74 - dated 23-5-2025

Accessibility and Inclusiveness of Digital KYC to Persons with Disabilities

FEMA

2. 06 - dated 23-5-2025

Reporting on FIRMS portal – Issuance of Partly Paid Units by Investment Vehicles

Highlights / Catch Notes

GST

• Electronic Cash Ledger Payment Directive Upheld: Administrative Order Survives Constitutional Challenge Without Procedural Irregularities

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• Procedural Lapses in GST Notice Invalidate Department's Order Due to Non-Compliance with Statutory Upload and Communication Requirements

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• Tax Authorities Issue Show Cause Notice for Fraudulent Input Tax Credit, Petitioner Directed to Pursue Statutory Appellate Remedy Under Section 107

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• Statutory Limitations Bar Appeal: Tax Authority's Penalty for Stock Shortage Upheld Under OGST Act Sections 122 and 130

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• GST Registration Revocation: Petitioner Granted Opportunity to Rectify Defaults and Restore Compliance Under Rule 22(4)

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• Consolidated Appeal Allowed: Taxpayer Granted Opportunity to Challenge Wrongful Input Tax Credit Under Section 107

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• Procedural Safeguards Upheld: Petitioners Granted Appeal Window and Fair Hearing Opportunity Under GST Act Provisions

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• GST Registration Restoration: Petitioner Granted Opportunity to Rectify Compliance and Seek Reinstatement Under CGST Rules

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• Solar Power Plant Installation Deemed Works Contract: 12% and 18% IGST Applied Based on Goods and Services Ratio

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Income Tax

• Supreme Court Clarifies Tax Deduction Limits: Section 80IA(9) Caps Aggregate Deductions at 100% of Business Profits

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• Taxpayer Wins Challenge Against Reassessment, AO's Suspicion Deemed Insufficient to Reopen Concluded Income Tax Proceedings

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• Income Tax Reassessment Upheld: Section 147 Reopening Validated Based on Unsubstantiated Penny Stock Transactions and Shell Company Involvement

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• Legal Victory: Direct Tax Dispute Resolution Act Compels Interest Payment on Withheld Tax Refund Despite Initial Non-Entitlement

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• Tax Compliance Wins: Voluntary TDS Deposit and No Malicious Intent Shield Petitioner from Prosecution Under Section 276B

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• Income Addition Rejected: No Evidence Found in Search Operation, Surrender Statement Deemed Insufficient Under Section 132(4)

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• Transfer Pricing: ITAT Rejects Isolated Interest Benchmarking, Upholds TNMM Principle and Prevents Double Taxation

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• Tax Surcharge Calculation for Discretionary Trusts: Lower 15% Rate Upheld, Challenging Uniform Maximum Marginal Rate Application

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• Cash Payment for Property Sale Under Rs. 7 Lakhs Upheld: Section 269SS Compliance Confirmed, Penalty Deleted

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• Taxpayer Wins: No Incriminating Evidence Found, Assessment for AY 2011-12 Quashed Under Section 153D

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• Income Tax Appeal Partially Allowed: Section 14A Restriction, Depreciation Adjustment, and Loss Set-Off Provisions Clarified

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• Tax Deduction Denied for Leave Encashment Provision, Partial Relief Granted for Warranty and Maintenance Charges Under Section 43B

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• Property Rental Income Dispute Resolved: Tribunal Overturns Penalty by Citing Consistent Prior Precedent Under Section 271(1)(c)

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• Legal Scrutiny Breach: Assessing Officer Overreaches Jurisdictional Limits, Violates Procedural Safeguards in Tax Assessment

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• Charitable Trust Wins Tax Exemption Claim with Bonafide Intent and Proper Fund Utilization Under Section 11(1)(a)

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• Tax Exemption for Religious Trust Donations Upheld: Consistent Treatment Prevails Under Established Corpus Donation Principles

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• Brokerage Expenses Validated as Legitimate Business Costs Under IND AS-2, Supporting Normal Selling Operations and Income Generation

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• Capital Gains Calculation: Tribunal Validates Assessee's Book Value and Rejects Revenue's Alternative Valuation Method

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• Land Acquisition Compensation Exempted from Long Term Capital Gains Tax Under Section 96 of RFCTLARR Act, 2013

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Customs

• Red Sanders Seizure Protocol: Customs and DRI Collaborate on Systematic Disposal, Export, and Environmental Compliance

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• Young truck cleaner's bail upheld despite smuggling allegations, court prioritizes age and limited involvement in criminal activity

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• Smuggling Case: Petitioner Denied Cross-Examination, Ordered to Pre-Deposit 7.5% Penalty for CESTAT Appeal

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• Electronic Evidence Printout from Pen Drive Invalidates Duty Demand Under Section 138C Without Statutory Certificate

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• Personal Numismatic Coin Collection Cleared: Customs Confiscation Overturned, Duties Applicable for Baggage Import

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IBC

• Insolvency Professionals Must Electronically File CP-1 to CP-5 Forms Within Strict Timelines or Face Monthly Penalties

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• Personal Guarantor Insolvency: Resolution Professionals Must File Application When Debtor Fails to Prepare Repayment Plan Under Section 105

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• Insolvency Threshold Determined by Original Filing Amount, Not Subsequent Partial Payments Under Section 9

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• Homebuyer's Late Claim Validated: Resolution Plan Must Accommodate Legitimate Interests Despite Procedural Timing Constraints

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Indian Laws

• Legal Notice Served to Partners Deemed Valid; Security Cheque Confirms Debt Liability Under Section 138 of NI Act

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• Voting Rights Restrictions in Bar Association Elections Upheld: Internal Rules Prevail Over Judicial Challenge

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Service Tax

• Service Tax Reimbursement Granted with Interest After Defendant's Unjustified Eight-Month Payment Delay Under VCES 2013

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• High Court Quashes Appellate Order for Procedural Flaws, Mandates Fresh Hearing with Proper Reasoning and Notice

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• Tribunal Quashes Rs. 1.24 Crore Service Tax Demands, Finds No Evidence of Evasion in Complex Construction Service Case

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Central Excise

• Unutilized Cenvat Credit Refund Denied: Rule 5 Amendment Restricts Cash Refund Claim Under Statutory Interpretation

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Case Laws:

• GST

• 2025 (5) TMI 1614
  SC dismissed SLP filed by Department challenging HC order. Court found Department's reliance on previous petitioner cases misplaced. Counsel highlighted deletion of CGST Rule 96(10) in 2024, weakening Department's position. SC held HC order did not require interference and dismissed petition, condoning delay.

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• 2025 (5) TMI 1613
  SC dismissed SLP due to unexplained 243-day delay in filing. Court found no merit in the petitions and rejected them based on procedural tardiness and substantive grounds. Pending applications were also disposed of, emphasizing strict adherence to timely legal procedures.

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• 2025 (5) TMI 1612
  SC dismissed SLP due to two critical factors: a 225-day unexplained delay in filing and lack of substantive legal merit. The court explicitly noted "no merit" in the petition, effectively rejecting both procedural and substantive aspects of the case, thereby upholding the lower court's decision.

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• 2025 (5) TMI 1611
  The HC examined a GST-related dispute involving a Show Cause Notice and order under Section 74 of HPGST/CGST Act. The Court rejected the petitioner's challenges to jurisdictional validity and procedural fairness, finding no substantive violations. The HC held that the tax authority followed due process, and the petitioner failed to demonstrate any illegality in the notices or orders demanding GST, interest, and penalties.

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• 2025 (5) TMI 1610
  The HC examined two key issues in a GST-related case: (i) proper communication of a Show Cause Notice (SCN), and (ii) compliance with limitation periods for order issuance. The Court found procedural irregularities in the GST Department's notice communication, highlighting systemic lapses in portal uploads, email notifications, and document authentication. While not fully invalidating the order, the HC directed the Department to develop a comprehensive Standard Operating Procedure ensuring consistent, transparent administrative processes and restrained coercive actions against the Petitioner.

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• 2025 (5) TMI 1609
  HC dismissed writ petitions challenging tax department's order alleging fraudulent Input Tax Credit (ITC) claims. The court found no violation of natural justice, as hearing notices were issued and petitioners failed to substantively respond. The petitioners were directed to pursue statutory appeal under CGST Act, with the court emphasizing that factual disputes regarding ITC fraud require detailed examination by appellate authorities. Writ petition was deemed not maintainable due to availability of alternative remedy.

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• 2025 (5) TMI 1608
  HC dismissed writ petitions challenging tax orders under TGST Act. Court held that alternative statutory remedy of appeal under Section 107(1) exists and must be exhausted before seeking writ relief. Procedural requirements were followed, including show-cause notices and personal hearings. Non-supply of specific documents did not constitute violation of natural justice, and petitioner can raise grievances in appellate proceedings.

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• 2025 (5) TMI 1607
  The HC examined the validity of a show cause notice and demand order under the OGST Act where goods were not physically available. The court upheld the tax authority's actions, finding the notice valid because the petitioner admitted stock shortage and paid penalties. The appeal was rejected on limitation grounds, and the writ petition was deemed non-maintainable due to available statutory remedies. The court emphasized broad interpretative powers in tax proceedings to prevent evasion.

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• 2025 (5) TMI 1606
  HC addressed GST registration cancellation due to non-filing of returns for six months. The Court validated the cancellation under Section 29(2)(c) but allowed restoration if all pending returns are filed and dues paid. Despite procedural irregularities in notice service, the cancellation remained valid. The petitioner was granted a two-month window to seek registration restoration, with the authority required to consider the application expeditiously while maintaining liability for outstanding arrears.

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• 2025 (5) TMI 1605
  Delhi HC in W.P.(C) 6397/2025 addressed a GST dispute involving Metalax Industries challenging an order on Input Tax Credit. The HC permitted a consolidated appeal under Section 107 of CGST Act for 2017-20, granting time until 10th July 2025 to file appeal with pre-deposit, ensuring merits-based adjudication and opportunity to contest Form GST DRC-07 issuance.

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• 2025 (5) TMI 1604
  HC ruled on goods detention under GST Act, finding that a tax invoice alone does not conclusively establish ownership when the purported supplier disclaims issuing the document. While rejecting the petitioner's claim under Section 129(1)(a), the court directed procedural fairness in appeal proceedings, allowing the petitioner to challenge the supplier's denial and potentially establish ownership through cross-examination. The goods could be released by paying a penalty under Section 129(1)(b).

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• 2025 (5) TMI 1603
  DHC disposed of writ petitions challenging CGST demands for duplicate tax claims. Court directed petitioner to file appeals under Section 107 with 10% pre-deposit, allowing credit for previous Rs. 30,00,000 payment. Appeals filed within 30 days will be adjudicated on merits, ensuring procedural fairness while addressing potential tax credit irregularities.

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• 2025 (5) TMI 1602
  HC upheld GST registration cancellation under Section 29(2)(c) for non-filing of returns. Despite no personal hearing notification, cancellation was valid as petitioner received show cause notice. Court directed petitioner can seek registration restoration by submitting pending returns and paying dues within two months. The proper officer must expeditiously consider restoration application if statutory conditions are met.

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• 2025 (5) TMI 1601
  HC dismissed writ petition challenging tax liability, finding insufficient documentary evidence for claimed exemption. Court directed petitioner to pursue appellate remedy under Section 107 of B.G.S.T. Act and mandated that any appeal filed within one month be admitted without delay and decided on merits.

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• 2025 (5) TMI 1600
  AAR ruled on GST treatment of rooftop solar power plant contracts. Determined the installation constitutes a works contract with composite supply. Held that 70% of contract value is taxable at 12% GST (goods component) and 30% at 18% GST (services component), resulting in an effective 13.8% GST rate. Confirmed Notification No. 24/2018 governs valuation and tax rate apportionment for such renewable energy system installations.

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• Income Tax

• 2025 (5) TMI 1599
  SC analyzed the interpretation of Section 80-IA(9) of the Income Tax Act, 1961. The court held that deductions under Sections 80-IA and 80-HHC must be computed independently on gross total income, with an aggregate deduction cap not exceeding 100% of business profits. The court rejected Revenue's argument to reduce gross total income and clarified that Section 80-IA(9) restricts allowability, not computation, of deductions under Chapter VI-A, heading 'C'.

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• 2025 (5) TMI 1598
  SC dismissed SLP due to 396-day delay in filing, finding no justifiable reason to condone the procedural lapse. The court's bench unanimously rejected the petition based strictly on the significant time gap between the original order and petition submission, emphasizing procedural punctuality as a critical legal requirement.

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• 2025 (5) TMI 1597
  SC dismissed Revenue's SLP due to 295-day delay in filing, which was not satisfactorily explained. While dismissing the petition on procedural grounds, the court explicitly left open any potential substantive legal questions. All associated applications were simultaneously disposed of.

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• 2025 (5) TMI 1596
  SC condoned delay in SLPs filed by Revenue, disposing them in line with a previous judgment. The court directed assessing officers to handle objections per established legal principles. Assessees retain rights to pursue remedies, excluding conclusively decided issues. Pending applications were also resolved, maintaining consistency with the earlier precedent.

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• 2025 (5) TMI 1595
  The SC examined the validity of reopening a tax assessment under Section 147 of the Income Tax Act. The court found the Assessing Officer (AO) lacked substantive "reason to believe" that income had escaped assessment. The reopening was based on generalized suspicions about penny stock trading, without specific evidence linking the taxpayer to tax evasion. Consequently, the SC quashed the reassessment notice, emphasizing that reopening must be grounded in tangible material, not mere conjecture.

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• 2025 (5) TMI 1594
  HC allowed revenue's appeal challenging Tribunal's order, finding the reassessment under Section 147 valid. The Assessing Officer had objective satisfaction based on specific material about a Rs. 1 Crore credit from a shell company. The Court held that the reopening was justified, the reasons were not vague, and the Tribunal incorrectly quashed the assessment order. The appeal was allowed, restoring the original assessment order.

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• 2025 (5) TMI 1593
  HC ruled that a 26-day delay in filing an audit report for tax exemption was justifiable due to pandemic-related technical challenges. The court set aside the CIT's rejection of delay condonation, directing the CIT to accept the audit report as timely filed under Section 119(2)(b) of Income Tax Act. The decision emphasized substantial justice over technical procedural compliance, recognizing pandemic-induced hardships as sufficient cause for delay.

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• 2025 (5) TMI 1592
  The HC ruled that recovery notices issued by the Income Tax Department after a resolution plan's approval under IBC 2016 are invalid. The court held that claims not included in the approved resolution plan are extinguished, rendering post-approval recovery attempts for pre-existing dues impermissible. Unserved penalty orders cannot form the basis for recovery, and statutory dues not incorporated in the resolution plan stand legally unenforceable.

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• 2025 (5) TMI 1591
  SC ruled that taxpayer is entitled to interest on delayed tax refund under Direct Tax Vivad Se Vishwas Act, 2020. The court held that absence of express provision does not exclude interest payment under Section 244A of Income Tax Act. Respondent directed to pay Rs. 4,39,010/- interest within 12 weeks, with 12% interest on further delay.

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• 2025 (5) TMI 1590
  The HC examined the validity of a section 148 income tax reassessment notice due to a technical portal glitch. The court found that notice served in another person's name, despite being issued under the petitioner's PAN, constitutes invalid service. Consequently, the HC quashed the reassessment proceedings, ruling that technical errors cannot circumvent mandatory procedural requirements for notice service, which is a jurisdictional prerequisite for reopening an assessment.

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• 2025 (5) TMI 1589
  RC held that delayed TDS deposit alone does not warrant prosecution under Income Tax Act. Despite 10-month delay in depositing Rs. 79,893/- TDS, petitioner paid full amount with 18% interest before show cause notice. Court set aside prosecution sanction, emphasizing penal proceedings require malicious intent, which was absent in this case.

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• 2025 (5) TMI 1588
  Legal Case Summary:The Tribunal addressed two primary issues: condonation of a 510-day delay in filing an appeal and verification of a Tax Deducted at Source (TDS) credit claim. The Tribunal condoned the delay, finding sufficient cause in the assessee's bonafide belief and absence of Revenue's opposition. On the TDS credit issue, the Tribunal directed the Assessing Officer to verify the claim afresh, ensuring the assessee receives a fair hearing. The appeal was partly allowed for statistical purposes, emphasizing substantive justice over procedural technicalities.

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• 2025 (5) TMI 1587
  SC analyzed the validity of an income tax addition based on an admission during a search operation under section 132(4) of the Income Tax Act. The Court held that the Rs. 10 crores addition was unjustified, as it was made solely on an uncorroborated statement obtained under duress, without supporting incriminating material. The appeal by revenue was dismissed, emphasizing that assessments must be based on credible evidence, not coerced admissions.

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• 2025 (5) TMI 1586
  Legal Case Summary:SC ruled against tax authority's transfer pricing adjustment on notional interest for outstanding trade receivables. The court found that working capital adjustments under Transactional Net Margin Method (TNMM) already account for delayed receivables, rendering separate interest imputation unnecessary and constituting double taxation. The benchmarking methodology was deemed consistent with statutory rules and OECD guidelines. Consequently, the tax adjustment was deleted, and related penalty proceedings were quashed.

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• 2025 (5) TMI 1585
  ITAT addressed a tax assessment case involving alleged bogus purchases. The tribunal partially allowed the appeal, validating the reassessment under Sections 147/148 but rejecting 100% disallowance. Instead, the court directed an addition of 10.4% based on gross profit rate differential, emphasizing proportionate taxation and the need for independent verification of investigative information. The ruling balanced procedural fairness with tax compliance requirements.

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• 2025 (5) TMI 1584
  Legal Case Summary:SC partially upheld tax authority's assessment against assessee involving bogus purchase entries. The court validated reopening of assessment under section 148 based on Investigation Wing's information. While rejecting full disallowance of purchases, the court directed addition of 5.5% gross profit margin instead of entire purchase amount. The ruling emphasized that third-party survey statements can substantiate tax additions when assessee fails to produce contradictory evidence. Appeal was partly allowed with modified income addition approach.

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• 2025 (5) TMI 1583
  Tribunal addressed the computation of surcharge for Private Discretionary Trusts under Income Tax Act. The key ruling held that surcharge must be calculated based on slab-specific rates prescribed in the Finance Act, not automatically at the highest 37% rate. The decision rejected Revenue's argument for a uniform highest surcharge rate, emphasizing that such an interpretation would render detailed statutory surcharge slabs meaningless. The appeal was allowed, affirming slab-specific surcharge calculation for trusts taxed at Maximum Marginal Rate.

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• 2025 (5) TMI 1582
  The SC/Tribunal allowed the tax appeal, finding the income tax addition based solely on AIR data without corroborative evidence was invalid. The court directed remand to the Assessing Officer, mandating comprehensive verification and ensuring the assessee receives a fair opportunity to present evidence. The ruling emphasized procedural fairness, rejecting additions without substantive proof linking the assessee to alleged share transactions.

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• 2025 (5) TMI 1581
  The SC examined the validity of tax assessments and penalties, focusing on three key issues: (1) penalty sustainability after quantum addition deletion, (2) assessment orders without proper transfer orders under section 127, and (3) violation of natural justice principles. The Court quashed the assessments and penalties, finding no valid jurisdiction due to non-compliance with statutory transfer requirements and lack of opportunity to be heard. The appeal was allowed, with grounds challenging additions left open for future proceedings.

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• 2025 (5) TMI 1580
  The SC/ITAT quashed the PCIT's revisionary order under section 263 of the Income-tax Act. The Tribunal held that the order was based on a mere difference of opinion, not a substantive error. The AO's original assessment was upheld, finding no justification for disallowing TDS credits or professional income. The ruling emphasized that timing differences in accounting systems do not automatically warrant income addition, and prior judicial precedents supported the assessee's position.

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• Customs

• 2025 (5) TMI 1540
  The HC upheld bail granted to a 20-year-old accused in a gold smuggling case involving 66.40 kg of gold valued at Rs. 33 crores. Despite the serious offence, the court found the respondent was a minor participant (helper/driver) used by main conspirators. The bail was justified considering his young age, limited role, and absence of bail condition violations, balancing offence gravity with individual circumstances.

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• 2025 (5) TMI 1539
  HC upheld a Rs. 5 Crore penalty against a party for knowingly facilitating false customs declarations under Section 114AA of the Customs Act. The court found the party's role in smuggling established through corroborative statements and documentary evidence. While reducing the pre-deposit requirement to 7.5%, the HC confirmed the penalty's legal validity and the party's procedural obligations for challenging the order.

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• 2025 (5) TMI 1538
  The Tribunal invalidated customs duty demand based on inadmissible electronic evidence. The Excel sheet printout was rejected for lack of statutory certification under section 138C. The partner's statement under section 108 was deemed inadmissible without procedural safeguards. Consequently, the Tribunal set aside the Principal Commissioner's order, quashed penalties, and accepted the appellant's declared transaction value.

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• 2025 (5) TMI 1537
  Tribunal resolved a case involving imported coin collection, ruling against customs authorities. The SC found no evidence of misdeclaration or commercial intent. Goods were classified as personal baggage, not antiques. Confiscation and penalties were unsustainable due to lack of proof and procedural violations. The Tribunal set aside the original order, directing proper customs clearance and emphasizing procedural fairness in customs proceedings.

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• Insolvency & Bankruptcy

• 2025 (5) TMI 1536
  The SC examined the threshold for initiating insolvency proceedings under Section 9 of the Insolvency and Bankruptcy Code. The Court held that the default amount must be assessed at the time of filing the application, not at admission. Subsequent partial payment reducing the amount below Rs. 1 crore does not invalidate the application if the threshold was met at filing. The Tribunal's dismissal was overturned, and the matter was remanded for fresh adjudication.

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• 2025 (5) TMI 1535
  SC addressed homebuyers' claims in corporate insolvency resolution process. The court allowed belated claims reflected in corporate debtor's records, directing resolution professional to submit claim details to resolution applicant for plan addendum. The ruling emphasized equitable treatment of homebuyers, distinguishing them from commercial creditors and mandating consideration of claims even if filed after committee of creditors' approval but before adjudicating authority's final approval.

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• Service Tax

• 2025 (5) TMI 1534
  The SC resolved a dispute over service tax reimbursement under a contract's voluntary compliance scheme. The court ruled in favor of the plaintiff, mandating reimbursement based on submitted documentary evidence without requiring the original discharge certificate. The defendant was ordered to pay the service tax amount with 10% interest from the suit's institution date, rejecting demands for additional bank guarantees or indemnity bonds.

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• 2025 (5) TMI 1533
  The SC found that the Appellate Authority violated natural justice principles by disposing of the appeal without properly addressing the petitioner's adjournment request and failing to provide a reasoned order. The court set aside the order, remitting the matter for fresh adjudication with a directive to afford the petitioner a reasonable hearing opportunity by 16.05.2025, while explicitly avoiding commentary on the appeal's substantive merits.

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• 2025 (5) TMI 1532
  The SC examined a complex service tax dispute involving multiple legal issues. The court ruled in favor of the appellant, invalidating the tax demand based on Form 26AS entries without independent verification. The key holdings included: rejecting service classification under obsolete provisions, accepting proper valuation under Rule 2A, allowing Cenvat credit despite non-filing of returns, and finding no basis for penalty imposition. The demand was ultimately set aside with consequential relief.

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• 2025 (5) TMI 1531
  Tribunal resolved a service tax dispute regarding Haj pilgrim assistance services. The case determined that assistance in religious pilgrimages up to 30.06.2012 did not constitute taxable 'tour operator' services under the Finance Act, 1994. Relying on established judicial precedents, the Tribunal rejected revenue's service tax demand, finding the appellant's services exempt from taxation during the specified period.

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• 2025 (5) TMI 1530
  Tribunal case involving service tax on construction services addressed multiple issues: (1) Preferential Location Charges (PLC) and club construction costs were deemed part of bundled construction service eligible for abatement, not separate taxable services. (2) Revenue's allegations of clandestine cash receipts were rejected due to lack of substantive evidence. (3) The Tribunal emphasized that burden of proof lies with Revenue to establish taxability, setting aside demands based on unsubstantiated claims. Appeals were allowed with consequential relief.

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• Central Excise

• 2025 (5) TMI 1529
  The HC examined the admissibility of electronic evidence in an excise duty case. The court invalidated the Department's demand due to procedural non-compliance with Section 36(B) of the Central Excise Act. Pen drive data was deemed inadmissible as it lacked proper seizure documentation and certification. Without corroborative evidence of clandestine goods removal, the excise duty, interest, and penalty were set aside, emphasizing strict evidentiary standards for electronic records.

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• 2025 (5) TMI 1528
  HC ruled that Central Excise duty is not leviable on imported edible lactose merely cleared from a factory without manufacturing. The appellant imported lactose, processed part through a job worker, and reversed CENVAT credit. The court found no evidence of manufacture, emphasizing that excise duty applies only to goods produced or manufactured in India, not just cleared from factory premises. The demand and penalty were consequently set aside.

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• 2025 (5) TMI 1527
  The SC/Tribunal dismissed an appeal challenging the denial of cash refund for unutilized Cenvat credit. The court held that the appellant failed to meet statutory requirements for refund under Central Excise law and GST transitional provisions. No right to cash refund existed due to procedural non-compliance, limitation periods, and absence of specific legal provisions supporting the claim. The appeal was rejected, emphasizing strict interpretation of tax refund provisions.

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• 2025 (5) TMI 1526
  Tribunal determined sale was FOR destination basis, not ex-works. Ownership transferred at buyer's premises, making freight and insurance charges part of assessable value. Relying on precedents like Roofit Industries and Emco Ltd, the Tribunal rejected appellant's arguments about ex-works pricing. The decision emphasized examining contractual terms holistically to determine place of sale and valuation for excise/GST purposes.

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• 2025 (5) TMI 1525
  The SC/Tribunal addressed excise duty classification for pharmaceutical products supplied to institutional consumers. The key ruling held that goods sold through distributors without direct manufacturer sale or "not for retail sale" marking are subject to MRP declaration and Section 4A assessment. The Tribunal upheld differential duty, interest, confiscation, and company penalty while setting aside the manager's penalty due to lack of personal culpability.

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• CST, VAT & Sales Tax

• 2025 (5) TMI 1524
  The SC reviewed a tax dispute involving Form III B under the UP Trade Tax Act. The Court found the Commercial Tax Tribunal's order invalid, ruling that the assessing authority failed to establish specific false declarations, improperly imposed blanket penalties, and did not follow binding circulars. The case was remanded for fresh adjudication, emphasizing procedural compliance and individual scrutiny of tax certificates.

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• 2025 (5) TMI 1523
  HC allowed the tax appeal challenging the Commercial Tax Tribunal's order. The court found that the delay in filing the appeal was due to the advocate's negligence, not the appellant's fault. Relying on precedents, the HC held that the appellant should not suffer for the advocate's mistake. The court set aside the tribunal's order and directed the first appellate authority to hear the appeal on merits upon payment of costs.

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• 2025 (5) TMI 1522
  HC ruled that a dealer with sales exempt under Section 7(c) of the Commercial Tax Act cannot claim input tax credit under Section 13. The court applied the Apex Court's precedent in Neha Enterprises, finding the statutory prohibition in Section 13(7) mandatory. The exemption from tax precludes input tax credit, regardless of policy considerations, and the impugned order was quashed accordingly.

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• Indian Laws

• 2025 (5) TMI 1521
  Delhi HC upheld a complaint under the Negotiable Instruments Act against a partnership firm and its partners. The Court rejected technical arguments about notice service, found the security cheque valid, and maintained summons against all partners. The ruling emphasized that liability disputes should be resolved during trial, not at the summoning stage, and dismissed the petition seeking complaint quashing.

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• 2025 (5) TMI 1520
  The HC dismissed a writ petition challenging a Bar Association's election notice. The Court held that the Bar Association is not a "State" under Article 12 and thus not amenable to writ jurisdiction under Article 226. The notice restricting voting rights for members with unpaid dues was deemed valid. The Court emphasized that internal disputes of voluntary associations should be resolved through civil courts or internal mechanisms, not constitutional writs.

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