TMI Tax Updates - e-Newsletter
May 28, 2025

Case Laws in this Newsletter:

GST Income Tax Benami Property Customs Corporate Laws Law of Competition PMLA Service Tax Central Excise Indian Laws

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Articles

1. KNOW YOUR LIMITS PART 1

   By: K Balasubramanian

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2. Why is Form ADT-1 Important for Pvt. Ltd Annual Filing?

   By: Ishita Ramani

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3. Writ petition is not maintainable unless the statutory remedy to appeal has been exhausted

   By: Bimal jain

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4. How do Indian Credit Rating Agencies Work?

   By: YAGAY andSUN

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5. The Evolving Landscape of GST Laws in India.

   By: YAGAY andSUN

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6. Legal, Tax and Environmental Professionals and Altruism: A Collaborative Pathway to Reform.

   By: YAGAY andSUN

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7. Capital goods imported under the MOOWR scheme.(Part 1 of 2)

   By: YAGAY andSUN

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8. Whether a sale without any consideration amounts to a valid sale under the Indian Contract Act and GST Laws?

   By: YAGAY andSUN

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9. Fillable compliance form for the Storage of Chemicals in Warehouses/Godowns.

   By: YAGAY andSUN

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News

1. ValueLabs Wins Nine Globee® Awards, Validates Position as Agentic AI Services Leader

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2. Stock markets snap 2-day rally, Sensex falls nearly 625 pts as banking, IT shares retreat

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3. Stock markets snap 2-day rally on profit-taking in banking shares; Sensex drops nearly 625 pts

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4. ASEAN opens summit with Persian Gulf nations and China as US threatens tariffs

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5. ASEAN opens summit with Gulf nations, China amid US tariffs threat

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6. DGFT Enhances Ease of Doing Business for Leather Exporters

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7. Government Restores RoDTEP Benefits for AA, SEZ, and EOU Exports

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8. Wabtec, Railways unveil first locomotive manufactured in Bihar for export to West Africa

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9. CBDT extends date of filing of Income Tax Returns (ITRs) due for filing by 31st July 2025 to 15th September 2025

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10. I-T dept extends due date for income tax return filing for AY26 to Sep 15

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11. Income Tax dept extends due date to file ITR for AY26 till Sep 15

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Notifications

Customs

1. 37/2025 - dated 26-5-2025 - Cus (NT)

Amendment in Notification No. 12/97-Customs (N.T.) dated the 2nd April, 1997 - Inland Container Depots for loading and unloading of goods

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DGFT

2. 15/2025-26 - dated 26-5-2025 - FTP

Removal of Port Restrictions and Testing Requirements for Export of Finished Leather, Wet Blue Leather, El Tanned Leather and Crust Leather

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3. 14/2025-26 - dated 26-5-2025 - FTP

Amendment in Import Policy Condition of Cabinet Hinges covered under Chapter 83 of ITC (HS), 2022, Schedule-I (Import Policy)

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4. 13/2025-26 - dated 26-5-2025 - FTP

Amendment in Import Policy Condition of Roller chain and parts thereof covered under Chapter 73 of ITC (HS), 2022, Schedule-I (Import Policy)

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Circulars / Instructions / Orders

SEBI

1. SEBI/HO/MRD/MRD-PoD-3/P/CIR/2025/75 - dated 26-5-2025

Process for appointment, re-appointment, termination or acceptance of resignation of specific Key Management Personnel (KMPs) of a Market Infrastructure Institution (MII)

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2. SEBI/HO/MRD/MRD-TPD-1/P/CIR/2025/76 - dated 26-5-2025

Final Settlement Day (Expiry Day) for Equity Derivatives Contracts

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Highlights / Catch Notes

GST

• Rule 96(10) Deletion Invalidates Subsequent Proceedings, Halting Administrative Actions Without Saving Clause

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• Notification Misinterpretation: GST Paragraph 3(iv) Limited to Pre-GST Contracts, Reimbursement Rights Affirmed for Post-July 2017 Contracts

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• Tax Credit Challenge Dismissed: Procedural Defects Noted, Appeal Path Open Under Section 107 with Mandatory Pre-Deposit

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• Tax Credit Appeal: Petitioner Must Submit DRC-03A Form to Validate Deposit and Enable Appellate Challenge

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• Contractor Fails to Recover Dues as Evidence Gaps Prevent Claim Validation Under Project Completion Requirements

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• Supplier's Tax Registration Validity Upheld, ITC Claim Requires Comprehensive Evidence Review Under GST Provisions

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Income Tax

• Tax Reassessment Block Period Capped at Six Years, Jurisdictional Notice for AY 2016-17 Invalidated Under Section 153C(1)(b)

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• Email Notice on MCA Website Deemed Valid: Petitioner's Response Confirms Procedural Compliance Under Section 292BB

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• Reassessment Notice Validity Hinges on Timing and Proper Section 151 Approval for Tax Proceedings

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• Taxpayer's Challenge Fails: TOLA Upholds Re-assessment with 8% Profit Margin on Unexplained Bank Deposits

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• Property Transaction Valuation Dispute Resolved: Unregistered Agreement Invalidates Short-Term Capital Gains Assessment Under Section 56(vii)(b)

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• Capital Loss Offset Allowed: STT-Paid Shares Can Neutralize Short-Term Gains Under Section 70(2) Interpretation

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• Cooperative Society Wins Major Tax Battle: Tribunal Rejects Status Change and Challenges Arbitrary Tax Assessments

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• Taxpayer Wins Appeal: Arbitrary Income Estimation Rejected Due to Lack of Substantive Evidence Against Accounting Records

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• Procedural Flaws Invalidate Tax Assessment: Approval Lacking Substantive Review Renders Order Legally Unsustainable Under Section 153A

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• Income Tax Reassessment Quashed: Jurisdictional Defects and Time-Barred Notice Invalidate Reopening of Assessment Proceedings

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• Taxpayer Wins: Unexplained Expenditure Challenge Rejected Due to Lack of Credible Evidence under Section 69C

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• Revisionary Order Under Section 263 Upheld: Tribunal Validates PCIT's Decision on Tax Assessment Irregularities

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• Penalty Proceedings Under Section 271AAB Quashed Due to Time Limitation and Procedural Defects in Notice

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Customs

• High Court Upholds Lower Court Decision, Condones Procedural Delays and Affirms Existing Investigative Processes

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• Legal Challenge Upholds Timely Appeal Under Section 153, Invalidates Improper Service Methods in Customs Act Dispute

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• Industrial Inkjet Printing Machines Misdeclared: Customs Tribunal Confirms Higher Duty Classification and Sustains Penalty

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• Customs Broker License Reinstated: Procedural Delays Invalidate Revocation Order Under Licensing Regulations

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DGFT

• Government Updates Name of International Gemmological Institute in Foreign Trade Policy Under Sections 3 and 5 of Trade Act

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• GoI Revives RoDTEP Scheme for Export Entities, Offering Comprehensive Incentives Across Advance Authorisation and SEZ Sectors

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• Government Updates Export Incentive Scheme RoDTEP Rates Aligned with Customs Tariff Act Modifications Effective May 2025

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Corporate Law

• Dependent Members Lose Club Privileges at 21, No Independent Rights Under Articles of Association

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• Massive 2659-Day Delay Torpedoes Appeal: Tribunal Rejects Condonation Application for Procedural Negligence

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Benami Property

• Tribunal Validates Benami Property Seizure, Confirms Indirect Ownership Transfer Through Controlled Transactions Under Benami Act

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Indian Laws

• Tax Return Filing Deadline Extended to September 15, 2025, Addressing System Readiness and Compliance Challenges

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• Supreme Court Clarifies Mandatory Arbitration for Banking Disputes Under Section 11 of SARFAESI Act Involving Securitization and Debt Recovery

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• Corporate Directors Face Liability: Negotiable Instruments Act Empowers Prosecution Against Non-Executive Leadership

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• Arbitration Award Invalidated: Unsubstantiated CA Certificates Render Financial Claims Legally Unsound Under Section 37

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• Swift Justice: Negotiable Instruments Act Complaint Fast-Tracked with Strict Timelines and Zero Procedural Delays

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• Security Cheque Dishonour Leads to Six-Month Imprisonment and Rs. 15.6 Lakh Compensation Under Section 138 of NI Act

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PMLA

• Legal Challenge Upholds Property Rights: Provisional Attachment Order Quashed Due to Procedural Defect in Show Cause Notice

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Central Excise

• Excise Duty Dispute Resolved: CENVAT Credit, Product Classification, and Duty Rates Clarified for Food Ingredient Manufacturer

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• CESTAT Upholds Input Service Credit Claim, Finds No Mandatory Reversal for Pre-April 2011 Trading Activities

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Case Laws:

• GST

• 2025 (5) TMI 1811
  The SC examined the legal implications of omitting Rule 96(10) of CGST Rules without a saving clause. The Court held that when a rule is unconditionally omitted, all pending proceedings must cease immediately. The impugned order passed after the rule's omission was declared invalid, as the respondent lacked jurisdiction to invoke a non-existent rule. The writ petition was allowed, setting aside the order and emphasizing the complete obliteration of the rule from the statute book.

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• 2025 (5) TMI 1810
  The HC ruled that the respondents must reimburse GST for work contracts executed after July 1, 2017, based on Paragraph 4 of the Notification. The court found the respondents' denial arbitrary and violating Article 14 of the Constitution. The petitioner was directed to receive GST reimbursement for contracts from July 2017 to March 2019, with the respondents instructed to reconsider the claim fairly and reasonably.

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• 2025 (5) TMI 1809
  The HC dismissed a writ petition challenging a GST demand for fraudulent Input Tax Credit (ITC). The Court found the impugned order sustainable, holding that the petitioners failed to effectively challenge the Department's evidence of goods-less invoices. The Court directed the petitioners to pursue the statutory appellate remedy under Section 107 of the CGST Act, emphasizing that writ jurisdiction is inappropriate for complex revenue fraud disputes involving significant tax amounts.

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• 2025 (5) TMI 1808
  HC allowed petition challenging tax demand, remanding matter to tax authority. Petitioner must deposit Rs. 10,22,963/- by specified date, file reply, and receive personal hearing. Original ex-parte order set aside, with directive for fresh adjudication on merits without prejudice to original proceedings.

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• 2025 (5) TMI 1807
  The HC addressed a GST appeal pre-deposit issue, allowing a taxpayer to adjust a prior deposit through Form GST DRC-03A by 30th May 2025. The court provided a clear procedural pathway for filing the appeal by 31st July 2025, ensuring the appeal would not be dismissed on limitation grounds. The ruling balances procedural compliance with taxpayer rights by offering a remedial mechanism for deposit adjustment.

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• 2025 (5) TMI 1806
  HC dismissed writ petition seeking payment for construction work. Court found no documentary evidence of work completion and existence of disputed factual issues. Petitioners directed to pursue remedy through appropriate legal forums. Petition disposed without costs, with respondents' non-filing of affidavits implying non-admission of allegations.

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• 2025 (5) TMI 1805
  The HC allowed the petitioner's challenge to tax authorities' disallowance of Input Tax Credit (ITC). The court found that the authorities mechanically rejected the ITC claim without properly examining documentary evidence of goods movement and supplier's tax compliance. The HC set aside the original orders and directed the tax authorities to re-evaluate the ITC claim comprehensively, providing a fair hearing and reasoned assessment within six weeks.

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• 2025 (5) TMI 1804
  HC quashed GST order due to procedural violation of natural justice. The court found that the assessee was not given proper hearing opportunity, with hearing and objection dates set on the same day. Citing previous precedent, the court remanded the matter back to the Assessing Authority with directions to provide adequate opportunity for hearing before passing a fresh order.

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• Income Tax

• 2025 (5) TMI 1803
  HC analyzed the validity of income tax reassessment notices for AY 2018-19. The court found the Assessing Officer's reopening of assessment legally valid, based on verifiable information from a third-party statement admitting bogus transactions and corroborating evidence in the petitioner's own books. The court rejected challenges to procedural safeguards, holding that the petitioner was provided opportunity to respond and the information justified reassessment. The petition was dismissed as lacking merit.

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• 2025 (5) TMI 1802
  The HC upheld the centralization of income tax assessment proceedings under Section 127(2) for the petitioners with the Faridabad income tax authority. The Court found a legitimate connection between the petitioners and Pavel Garg, justifying the jurisdictional transfer for coordinated investigation. The petitioners' arguments regarding inconvenience and lack of connection were rejected, with the Court emphasizing the statutory purpose of effective tax assessment.

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• 2025 (5) TMI 1801
  HC quashed a tax notice under Section 153C for AY 2016-17, finding the Assessing Officer lacked jurisdiction. The court determined the six-year block period for reopening assessments started from the date of satisfaction (28.07.2022), covering AY 2017-18 to AY 2022-23. Since AY 2016-17 fell outside this period, the notice was deemed unsustainable and set aside.

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• 2025 (5) TMI 1800
  SC analyzed the validity of tax assessment notices served electronically to a company's MCA-registered email address. The Court upheld the notices' legitimacy under Rule 127 of Income Tax Rules, finding that Section 292BB applied since the petitioner participated in proceedings. The Court dismissed technical objections about email service, emphasizing statutory compliance and procedural fairness, and directed appellate authorities to consider any potential appeals without delay.

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• 2025 (5) TMI 1799
  HC invalidated a reassessment notice under Section 148 for non-compliance with mandatory approval requirements. The notice was issued beyond three years from the assessment year without obtaining prior approval from the Principal Chief Commissioner, rendering it procedurally invalid. Despite extended limitation under TOLA, the Court held that statutory approval hierarchies remain unchanged. The Revenue was granted liberty to initiate fresh proceedings in accordance with legal requirements.

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• 2025 (5) TMI 1798
  The HC ruled that the income tax reassessment notice for AY 2013-2014 was invalid due to limitation. Despite potential merit in the tax authority's claims of undisclosed transactions involving share manipulations, the notice issued on 26.03.2021 exceeded the six-year statutory limitation period under Section 149 of the IT Act. Consequently, the HC allowed the writ petition, holding the reopening proceedings as jurisdictionally barred and quashing the reassessment notice.

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• 2025 (5) TMI 1797
  The SC upheld the validity of a reassessment notice issued on 31.03.2021 for AY 2013-14, finding it within the extended limitation period under TOLA. The Tribunal partially confirmed income additions, adopting an 8% profit rate on cash deposits totaling Rs. 2,83,22,613/- and taxing interest income, resulting in a modified taxable income assessment. The decision emphasized procedural compliance and evidentiary requirements in tax proceedings.

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• 2025 (5) TMI 1796
  Tribunal ruled that CIT(A)/NFAC improperly dismissed the cooperative society's tax appeal under section 249(4)(b) without admitting it for adjudication. The court held that advance tax liability must be determined by the assessee, and summary dismissal without hearing is inappropriate. The case was remanded with directions to admit the appeal, provide a hearing, and decide on merits, particularly regarding claimed deductions under sections 80P(2)(a)(i) and 80P(2)(d).

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• 2025 (5) TMI 1795
  Tax Tribunal ruled in favor of assessee, invalidating two tax additions. First, the tribunal found no justification for adding income under section 56(vii)(b) since total payments exceeded market value. Second, the tribunal held that an unregistered sale agreement without possession transfer does not constitute a valid property sale for capital gains taxation. Both disputed additions were deleted, with the tribunal emphasizing the importance of actual property transfer and comprehensive consideration calculations.

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• 2025 (5) TMI 1794
  The SC/Tribunal resolved a tax dispute concerning set-off of short-term capital losses across transactions with different Securities Transaction Tax (STT) applicability. The Tribunal ruled that section 70(2) allows unrestricted set-off of capital losses against gains, rejecting Revenue's argument for hierarchical set-off based on tax rates. The decision upheld the assessee's method of offsetting losses against higher-taxed gains, directing recomputation of capital gains accordingly and dismissing penalty proceedings.

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• 2025 (5) TMI 1793
  The SC/Tribunal resolved a tax deduction dispute concerning a co-operative credit society's interest income from co-operative bank deposits. Interpreting Section 80P(2)(d) of the Income Tax Act, the court allowed the deduction, distinguishing between co-operative and commercial banks. The ruling clarified that statutory amendments to TDS provisions do not negate substantive tax deduction rights, thereby favoring the assessee's claim and directing deletion of the disallowed deduction.

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• 2025 (5) TMI 1792
  The SC's Tribunal addressed multiple tax assessment issues, primarily focusing on an unexplained advance of Rs. 50,00,000. After analyzing documentary evidence, the Tribunal concluded that the advance was fully explained through a cheque payment for flat booking. The Tribunal deleted the addition, finding the assessee's explanation credible and supported by receipt documentation. Additional procedural challenges were noted but not definitively ruled upon, with the appeal ultimately allowed in favor of the assessee.

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• 2025 (5) TMI 1791
  The Tribunal addressed multiple tax-related issues for a cooperative society across assessment years 2014-18. Key outcomes include: (1) confirming the assessee's status as a cooperative society, not a banking company; (2) rejecting dividend distribution tax; (3) remitting TDS disallowances for further verification; (4) partially allowing provident fund contribution deductions; and (5) reducing arbitrary expense disallowances. The Tribunal largely favored the assessee, directing the Assessing Officer to re-examine several disputed tax treatments.

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• 2025 (5) TMI 1790
  Tax Tribunal ruled against Assessing Officer's arbitrary income estimation. The AO's rejection of assessee's books of account under section 145(3) was found unjustified due to lack of material defects. The Tribunal deleted the Rs. 2.88 crore addition, holding that gross profit estimation must be based on sound data, not arbitrary averages, especially when audited accounts and reasonable explanations are provided.

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• 2025 (5) TMI 1789
  ITAT addressed a complex tax appeal involving revisionary order under section 263 of Income Tax Act. The Tribunal comprehensively rejected PCIT's challenge to AO's assessment order for AY 2018-19, finding no procedural or substantive errors prejudicial to revenue. Key issues relating to depreciation on goodwill, unabsorbed depreciation set-off, section 80IA deduction, and loan transaction were systematically analyzed. The order was ultimately quashed, with the appeal allowed in favor of the assessee.

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• 2025 (5) TMI 1788
  The SC/Tribunal invalidated assessment orders under section 153D of Income Tax Act due to mechanical approval without proper application of mind. The approving authority granted approval without examining seized materials or assessment records, rendering the orders void ab initio. The decision emphasized that section 153D approval must be a substantive supervisory act involving independent judicial scrutiny, not a perfunctory formality.

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• 2025 (5) TMI 1787
  The SC/HC affirmed the tax tribunal's decision regarding a cooperative society's income from a housing project. The court ruled that: (1) the society does not qualify as an "authority" for tax exemption under section 10(20A), (2) project income is business income, not capital gains, (3) interest income is not eligible for deduction under section 80P, and (4) no expenditure apportionment is permitted. The income is thus taxable as business income.

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• 2025 (5) TMI 1786
  ITAT Dehradun ruled on a tax reassessment case for AY 2012-13. The tribunal invalidated the reopening of assessment beyond four years, finding the Assessing Officer's reasons insufficient under section 147. The reopening was based on alleged undisclosed income from land acquisition, but the tribunal determined all relevant facts were originally disclosed. Consequently, the reassessment order was quashed, and the appeal was allowed.

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• 2025 (5) TMI 1785
  ITAT Dehradun partially allowed an appeal regarding cash deposits during demonetization. The tribunal reduced unexplained cash deposits from Rs. 9,12,302/- to Rs. 1,00,000/- and held section 115BBE applicable only for transactions after 01.04.2017. The assessee, engaged in wholesale grocery trading, received partial relief in tax assessment for AY 2017-18.

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• 2025 (5) TMI 1784
  The SC/Tribunal denied registration under section 12AB of Income Tax Act for a Trust benefiting "Vaishnav Sadhu (Bava Vairagi)" caste. The ruling determined that the Trust's charitable objects restricted to a specific religious community triggered section 13(1)(b), disqualifying it from tax exemption. The pending amendment to the Trust Deed was not considered, and the original restrictive objects led to rejection of registration.

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• Benami Property

• 2025 (5) TMI 1770
  The SC upheld the Tribunal's decision that the agricultural lands and bank accounts constituted benami properties under the PBPT Act. The Tribunal found that properties were held by benamidars, with consideration provided by the beneficial owner to circumvent the Rajasthan Tenancy Act. The court rejected arguments of fiduciary capacity, confirming the provisional attachment orders and establishing that indirect benefit through controlled entities qualifies as a benami transaction.

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• Customs

• 2025 (5) TMI 1769
  HC affirmed respondent's actions in seized gold case. Appellant received full compensation for gold at current market value, calculated per Customs Instruction 22/2022. Court rejected claims of excess customs duty and declined to direct independent investigation. Valuation based on 2023 rates was deemed legally valid. Appeal dismissed with liberty to pursue additional legal remedies if warranted.

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• 2025 (5) TMI 1768
  HC analyzed the validity of service of an order-in-original (OIO) under pre-2018 Customs Act. The court found speed post was not a valid mode of service, and the actual communication date was when the petitioner became aware of the order. Consequently, the appeal filed on 07.11.2017 was within limitation. HC quashed the earlier orders and directed the appellate authority to hear the appeal on merits.

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• 2025 (5) TMI 1767
  The Tribunal addressed the classification of imported industrial inkjet printers, determining they are independent printing machines under CTI 8443 3910, not ADP-connectable printers under CTI 8443 3250. The SC found deliberate misdeclaration to evade customs duty, upheld differential duty demand of Rs. 50,36,786/-, confirmed statutory penalties, and sustained goods confiscation, allowing redemption on fine payment.

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• 2025 (5) TMI 1766
  HC analyzed the Customs Broker Licensing Regulations, 2018, focusing on procedural timelines and licensing authority's actions. The court found the authority's delay in revoking a customs broker's license unjustified. Regulation 20 timelines were deemed directory but requiring accountability. The court set aside the revocation order due to unexplained delays and lack of justification, emphasizing procedural fairness and the need for reasonable explanations when statutory timelines are not met.

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• 2025 (5) TMI 1765
  Tribunal addressed CVD interest liability under Customs Act Sections 28AA and 47. Held that no interest is payable when short duty payment results from EDI system error and importer promptly pays differential duty upon notification. Clearance under Section 47 based on initially assessed duty precludes subsequent interest demand. Appeal allowed, emphasizing compensatory nature of interest and absence of importer fault in system-generated errors.

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• Corporate Laws

• 2025 (5) TMI 1764
  The SC ruled that Green Card Holders over 21 years old have no legal right to continue using club facilities without full membership. The court found the Green Card system void ab initio, contrary to the Club's Articles of Association. Termination of Green Card privileges was lawful, following NCLT/NCLAT orders. The appellants' claims of contractual rights based on historical practices were rejected, and no principles of natural justice were violated in the process.

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• 2025 (5) TMI 1763
  The SC dismissed the appeal due to significant delay in filing. The appeal was filed 2659 days after the original order, far exceeding the statutory 90-day limitation period under Section 421(3) of the Companies Act, 1956. The Tribunal held that knowledge of the order does not extend limitation, and the appellant's arguments for delay condonation were rejected, resulting in the appeal's dismissal on procedural grounds.

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• Law of Competition

• 2025 (5) TMI 1762
  The National Company Law Appellate Tribunal (NCLAT) reviewed a Competition Commission of India (CCI) penalty order. The Tribunal found procedural deficiencies in the CCI's penalty imposition, specifically the lack of detailed reasoning for the maximum 10% penalty and failure to provide a fair hearing. Consequently, the Tribunal remanded the matter back to CCI for reconsideration, directing a reasoned order and full opportunity for the appellants to address the penalty quantum. The Tribunal also ordered the release of Fixed Deposit Receipts with accrued interest.

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• PMLA

• 2025 (5) TMI 1761
  The SC/Tribunal examined PMLA attachment orders involving multiple legal issues. The court partially allowed the appeal, upholding attachment of most properties while setting aside attachment of a jointly-owned flat due to procedural non-compliance in show cause notice issuance. The ruling affirmed PMLA's retrospective applicability, rejected cross-examination claims, and confirmed the validity of provisional attachment orders based on recorded reasons of proceeds of crime.

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• Service Tax

• 2025 (5) TMI 1760
  SC analyzed a tax refund case involving Reverse Charge Mechanism (RCM). The court found the Tribunal erroneously expanded dispute scope by introducing unjust enrichment, which was not originally raised. The SC held that RCM tax refund claims are not subject to unjust enrichment principles. The court directed the Adjudicating Authority to grant the refund within 60 days, setting aside the Tribunal's order that improperly remanded the matter for further verification.

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• 2025 (5) TMI 1759
  The Tribunal addressed two key issues: (a) service tax liability of a sub-contractor and (b) extended limitation period for tax recovery. It held that sub-contractors are independently liable to pay service tax, even if the main contractor has already paid tax. However, due to conflicting precedents and the appellant's reasonable belief, the Tribunal rejected penalties and the extended limitation period, partially allowing the appeal.

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• 2025 (5) TMI 1758
  The SC examined the condonation of delay in filing an appeal, focusing on an 824-day delay beyond the Covid-19 limitation exclusion period. Despite the pandemic-related limitation orders, the Tribunal rejected the appellant's explanation as insufficient and non-credible. The appeal was dismissed, emphasizing that delay explanations must cover the entire period and demonstrate due diligence, even during extraordinary circumstances.

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• 2025 (5) TMI 1757
  The HC allowed the appeal against refund appropriation under Section 79 of CGST Act. The court found a violation of natural justice due to lack of notice and opportunity to be heard. The order was set aside and remanded to the original authority to reconsider the matter, ensuring due process and providing the appellant a chance to represent their case within 16 weeks.

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• 2025 (5) TMI 1756
  The SC/Tribunal addressed Service Tax liability for construction services, finding partial relief for the appellant. The court set aside Rs. 16,57,583/- demand for residential construction services before 1st July 2010 due to exemption. The appellant was directed to pay Rs. 6,27,895/- for manpower services with interest. The case was remanded for verification of payments, contractor attributions, and potential government service exemptions, ensuring comprehensive factual assessment without granting refunds.

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• Central Excise

• 2025 (5) TMI 1755
  The SC resolved a tax credit dispute involving sugar cess, determining that the cess constitutes an excise duty eligible for Cenvat Credit. Despite absence of explicit provisions in Cenvat Credit Rules, the Court held that sugar cess paid under the Sugar Cess Act qualifies as a production tax. The revenue's arguments were rejected, and the High Court's original judgment was upheld, affirming the taxpayer's entitlement to claim credit on the sugar cess.

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• 2025 (5) TMI 1754
  SC Tribunal ruled on four key issues involving central excise regulations. The tribunal rejected Revenue's claims regarding unauthorized pole removal, duty on damaged poles, SSI exemption denial, and return discrepancies. Findings favored the appellant by recognizing lack of malafide intent, accepting SSI exemption, and barring extended limitation period. The appeal was ultimately allowed, setting aside the lower authority's order.

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• 2025 (5) TMI 1753
  Tribunal resolved complex excise valuation dispute, rejecting revenue's methodology for determining duty on partially sold/captively consumed goods. Found Rule 8 inapplicable and department's valuation approach unscientific. Held that burden of proving cost of production lies with revenue. Allowed appellant's appeal, quashed duty demand and penalties, emphasizing procedural and substantive legal deficiencies in the department's case.

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• 2025 (5) TMI 1752
  CESTAT Ahmedabad allowed an appeal challenging Cenvat credit disallowance. The Tribunal found the Commissioner incorrectly applied SC precedent from Safari Retreats Ltd across different legislations without verifying provision similarities. The case was remanded with a three-week timeline for fresh adjudication, directing a comparative analysis of relevant rules and provisions before making a final determination.

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• 2025 (5) TMI 1751
  The Tribunal resolved a dispute over excise duty classification for centrifugal pumps. It held that pumps classified under different tariff entries (84137010 and 84137094) are equally eligible for concessional duty rates if primarily designed for handling water. The Tribunal set aside the duty demand, interest, and penalties, finding the original assessment incorrect and affirming a broader interpretation of the notification's applicability.

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• 2025 (5) TMI 1750
  CESTAT addressed five key legal issues regarding CENVAT Credit Rules, 2004. The Tribunal ruled in favor of the appellant, holding that: (1) entire credit cannot be denied due to lack of bifurcation between manufacturing and trading activities, (2) trading was not an exempted service prior to 01.04.2011, (3) Rule 14 recovery requires establishing credit inadmissibility, (4) appellant's suo-moto credit reversal absolves liability, and (5) extended recovery period is not applicable when statutory returns are filed. The appeal was allowed, setting aside the original order disallowing credit.

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• 2025 (5) TMI 1749
  The SC Tribunal addressed multiple excise duty issues for a food manufacturing firm. The key outcomes include: (i) allowing Cenvat credit on maize starch inputs retrospectively, (ii) granting concessional 1-2% duty rates for custard powder, (iii) rejecting excise duty demand on corn flour, (iv) dismissing extended limitation period claims due to lack of deliberate suppression, and (v) setting aside penalties against the firm and its partners. The decision largely favored the appellant by narrowing the revenue's claims.

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• 2025 (5) TMI 1748
  The Tribunal addressed whether cement and steel used in foundations for plant and machinery qualify as 'capital goods' or 'inputs' under Cenvat Credit Rules, 2004. Relying on previous judicial precedents, the Tribunal held that such materials are integral to capital goods and qualify for Cenvat credit. The Tribunal set aside earlier orders denying credit, allowing the appellants to claim Cenvat credit for these supporting structural materials.

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• 2025 (5) TMI 1747
  The SC/Tribunal ruled that reassessment of export duty without a speaking order under Section 17(5) of the Customs Act, 1962, renders the assessment non-final. The court directed the proper officer to pass a mandatory speaking order within 15 days, allowing the appellant to maintain refund claims for excess duty paid. The decision emphasizes procedural safeguards in customs assessments and the importance of transparent, reasoned decision-making.

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• 2025 (5) TMI 1746
  Tribunal examined the jurisdiction of Commissioner (Appeals) to remand a refund claim under the Central Excise Act, 1944. Despite statutory amendments limiting remand powers, the Tribunal upheld the remand order, directing the adjudicating authority to recalculate the refund for Chapters 34 and 38 goods. The appeal was dismissed, affirming the procedural approach of ensuring comprehensive and lawful adjudication.

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• 2025 (5) TMI 1745
  Tribunal resolved a dispute over the date of commercial production for an Export Oriented Unit. The Development Commissioner certified 23.03.2004 as the commencement date, which the department challenged. The Tribunal upheld the certified date, rejecting the department's claim that first export date (27.11.2004) should determine commercial production. Consequently, the Tribunal set aside the demand for duty recovery and penalties, affirming the Development Commissioner's authoritative certification.

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• Indian Laws

• 2025 (5) TMI 1744
  SC clarified the scope of Section 11 of SARFAESI Act, holding that disputes between banks over priority of security charges following borrower default qualify for mandatory arbitration. The Court established that no written arbitration agreement is required, and the provision creates a statutory fiction of consent. The ruling emphasizes expeditious resolution of inter-creditor disputes, mandating arbitration for specified parties relating to securitization, reconstruction, or non-payment of dues.

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• 2025 (5) TMI 1743
  SC analyzed the vicarious liability of a company director under Section 141 of the Negotiable Instruments Act. The Court held that complaint averments describing the director's role in day-to-day business operations sufficiently invoke vicarious criminal liability. The HC's order quashing proceedings was set aside, finding the complaint's substance met statutory requirements without requiring verbatim reproduction of legal language. The trial court's process against the director was restored.

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• 2025 (5) TMI 1742
  SC analyzed charges against a public servant for alleged forgery and criminal breach of trust in tender document processing. The Court upheld charges under IPC Sections 409 and 468 based on prima facie evidence, including forensic handwriting analysis and ministerial testimony. However, charges under Prevention of Corruption Act were dismissed due to lack of pecuniary advantage allegations. The Court emphasized that departmental inquiry findings do not preclude criminal prosecution and judicial scrutiny at charge framing is limited to assessing prima facie material.

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• 2025 (5) TMI 1741
  HC analyzed a case involving compounding of a cheque dishonor offense under Section 138 of the Negotiable Instruments Act. The court allowed compounding post-conviction, accepting the parties' mutual compromise. Relying on SC precedents, the court quashed the conviction, acquitted the accused, and imposed a token Rs. 10,000 compounding fee, emphasizing the statutory provision enabling offence settlement at any stage of proceedings.

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• 2025 (5) TMI 1740
  The SC partially allowed the appeal, setting aside portions of the arbitral award that relied on unverified Chartered Accountant (CA) Certificates without underlying documentary evidence. The court held that accepting such certificates without examination constitutes "no evidence" and is perverse. While upholding the interest on profit-loss claim, the court emphasized that arbitral awards must be founded on credible, cogent evidence and subjected to proper judicial scrutiny under Section 34 of the Arbitration & Conciliation Act.

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• 2025 (5) TMI 1739
  SC directed trial court to conclude Section 138 N.I. Act case expeditiously within six months. Court emphasized strict adherence to statutory timelines and Apex Court directions, mandating day-to-day trial proceedings. Trial court authorized to use coercive measures under Cr.P.C. to ensure accused's presence and prevent unnecessary delays in resolving negotiable instruments dispute.

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• 2025 (5) TMI 1738
  The SC examined a criminal complaint under the Negotiable Instruments Act, addressing procedural delays and trial expedience. Finding the respondent's repeated attempts to defer proceedings as deliberate, the court directed the trial court to conclude the case within one month, prohibiting further adjournments. The ruling emphasized judicial economy and prevented unjustified litigation prolongation by closing defence evidence and mandating immediate case resolution.

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• 2025 (5) TMI 1737
  SC upheld conviction under Section 138 of NI Act for dishonour of cheques issued towards loan repayment. Court applied statutory presumptions under Sections 118(a) and 139, finding accused failed to rebut evidence of outstanding debt. The accused's plea of cheques being security and loan repayment was rejected. Sentence of six months imprisonment and compensation of Rs.15,60,000 was confirmed as legally justified.

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