Newsletter: Where Service Meets Reader Approval.
TMI Tax Updates - e-Newsletter
June 2, 2025
Case Laws in this Newsletter:
GST
Income Tax
Customs
Corporate Laws
PMLA
Service Tax
Central Excise
TMI Short Notes
Bills:
Summary: A new legislative provision in the Income Tax Bill, 2025 introduces a faceless scheme for tax information collection. The clause aims to eliminate direct interaction between taxpayers and tax authorities by leveraging technology, reducing corruption, and optimizing administrative resources. It empowers the central government to establish a digital, team-based system for collecting tax information with dynamic jurisdiction, ensuring transparency and efficiency while maintaining parliamentary oversight.
Bills:
Summary: A legal analysis of Clause 256 in the Income Tax Bill, 2025 reveals a modernized approach to tax authority powers. The provision empowers a broadly defined "competent authority" to conduct enquiries with the same investigative powers as an Assessing Officer. Compared to the previous Section 135, this clause offers greater administrative flexibility by using a generic term instead of listing specific authorities. The change aims to streamline tax administration while maintaining core investigative capabilities, though potential ambiguities in defining the "competent authority" may require careful interpretation.
Bills:
Summary: A legal analysis of tax authorities' inspection powers over company registers under Clause 255 of the Income Tax Bill, 2025 reveals a modernized framework for accessing corporate records. The provision empowers designated tax authorities to inspect registers of members, debenture holders, and mortgagees to verify ownership, detect potential tax evasion, and ensure compliance. The updated clause introduces technology-driven assessment units while maintaining core investigative capabilities, reflecting a shift towards more centralized and digital tax administration processes.
Articles
By: Bimal jain
Summary: A manufacturing company sought clarification on Input Tax Credit (ITC) for raw materials used in producing finished goods destroyed by fire. The Telangana Appellate Authority for Advance Ruling held that ITC must be reversed under Section 17(5)(h) of the Central Goods and Services Tax Act, as goods destroyed cannot be considered used in business furtherance, regardless of whether they were sold as scrap or completely lost in the incident.
By: DR.MARIAPPAN GOVINDARAJAN
Summary: A tax investigation revealed potential GST irregularities in a company involving directors who allegedly availed improper input tax credits and failed to file returns. The High Court analyzed whether non-taxable persons can file appeals under GST Act, concluding that Section 107 permits appeals by "any person" regardless of taxable status. The court directed the tax department to provide an appeal mechanism for the directors and mandated merit-based consideration of their potential appeal within specified timelines.
By: Dr. Sanjiv Agarwal
Summary: A new Section 128A in the CGST Act provides a conditional waiver of interest and penalty for GST demand notices issued for financial years 2017-18, 2018-19, and 2019-20. Taxpayers can avail the benefit by paying full tax liability before 31.03.2025, with specific conditions including exclusions for erroneous refunds and pending appeals. The scheme allows partial selection of show cause notices and covers IGST, compensation cess, CGST, and SGST, with no refund of previously paid interest or penalties.
By: Ishita Ramani
Summary: An article detailing the correction process for 12A registration errors for NGOs, trusts, and societies in India. It outlines common mistakes such as incorrect trustee details, PAN/Aadhaar errors, and document uploading issues. The guide provides steps to rectify these errors, including reapplying, addressing discrepancies, and ensuring accurate documentation to successfully claim tax exemption under the Income Tax Act.
By: YAGAY andSUN
Summary: India's Line of Credit (LoC) strategy is a sophisticated financial diplomacy tool enabling partner countries to access funds for importing Indian goods and services. Primarily administered through the Export-Import Bank of India, these credits require recipients to source 75% of materials from India, strategically promoting Indian exports while supporting infrastructure development in neighboring and developing nations across multiple sectors like transportation, energy, and technology.
By: YAGAY andSUN
Summary: Global leaders in recycling demonstrate advanced waste management through comprehensive policies, infrastructure, and public engagement. Top-performing countries like Germany, South Korea, and Austria achieve recycling rates between 52-65%. India currently recycles approximately 30% of its waste, relying heavily on an informal sector of ragpickers and scrap dealers. Despite challenges in infrastructure and policy implementation, India shows potential for improving its recycling systems through emerging initiatives and technological investments.
By: YAGAY andSUN
Summary: Biodegradable electronics offer a potential solution to the growing e-waste crisis by utilizing naturally decomposing materials like silk, cellulose, and magnesium. These devices are designed to break down safely after serving their purpose, with promising applications in medical implants, environmental sensors, and temporary technologies. Despite challenges in performance, scalability, and consumer adoption, researchers view this innovation as a critical step toward sustainable technology that minimizes environmental contamination from electronic waste.
By: YAGAY andSUN
Summary: Orbital debris poses a critical threat to space exploration and satellite infrastructure. Accumulated from decades of space missions, this junk includes defunct satellites, rocket fragments, and microscopic particles traveling at high velocities. The increasing number of launches escalates collision risks, potentially triggering a chain reaction known as the Kessler Syndrome. Governments and space agencies are developing strategies like active debris removal, international guidelines, and space traffic management to mitigate this growing environmental and technological challenge.
By: YAGAY andSUN
Summary: Carbon capture technology aims to trap and store carbon dioxide from industrial emissions or directly from the atmosphere, offering a potential solution to reduce greenhouse gas levels. Despite promises of helping achieve net-zero emissions, the technology faces significant challenges including high costs, limited scalability, and concerns about potentially prolonging fossil fuel dependency. Experts debate whether carbon capture represents a genuine climate solution or a costly distraction from more fundamental energy transformation strategies.
News
Summary: India and Chile concluded the first round of Comprehensive Economic Partnership Agreement (CEPA) negotiations in New Delhi. Discussions covered 17 thematic tracks including trade, services, investment, and economic cooperation. Both countries aim to enhance bilateral trade, create global value chains, and strengthen economic integration. The next negotiation round is expected in July/August 2025, with virtual intersessional discussions planned to address outstanding issues.
Summary: A presidential candidate announced plans to double tariffs on steel and aluminum imports to 50 percent, targeting protection for domestic steel industry workers. The proposal accompanies a potential investment deal with a foreign steel company for a major American steel manufacturer. The tariff increase could significantly impact metal prices and manufacturing costs, while the proposed acquisition aims to maintain substantial American control and oversight of the company's operations.
Summary: US President announced plans to double steel tariffs from 25% to 50% during a rally at a steel plant in Pennsylvania. The event celebrated an investment deal with a Japanese steel company. Steel product prices have increased approximately 16% since the president took office. The announcement aims to support domestic steel manufacturing and potentially impact global trade dynamics.
Summary: The government reduced basic customs duty on crude edible oils from 20% to 10% to lower retail cooking oil prices and protect domestic processors. India imports over 50% of its edible oil requirements, with imports totaling 159.6 lakh tonnes in 2023-24. The effective import duty will now be 16.5% instead of 27.5%. Industry bodies welcomed the move, seeing it as beneficial for domestic refiners and consumers by encouraging crude oil imports and discouraging refined oil imports.
Summary: The government reduced basic customs duty on crude edible oils from 20% to 10% to lower cooking oil prices and protect domestic processing industries. The move aims to help local refiners utilize capacity and reduce retail prices. India imports over 50% of its edible oil requirements, primarily palm oil from Malaysia and Indonesia. Industry associations welcomed the decision, seeing it as a strategy to support domestic oil production and manage refined oil imports.
Summary: Wall Street experienced market volatility due to uncertainty surrounding trade tariffs. Major indexes declined slightly as companies reported mixed quarterly results. A retailer projected significant potential cost increases from tariffs, while another saw stock gains. Market sentiment was influenced by recent court rulings and ongoing trade tensions, with investors monitoring potential economic impacts of potential tariff implementations and their broader implications for business performance.
Notifications
Customs
1.
31/2025 - dated
30-5-2025
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Cus
Seeks to extend the specified condition of exemption to imports of Yellow Peas (HS 0713 10 10) to bill of lading issued on or before 31.03.2026; and reduce the basic custom duty on crude soya bean oil (HS Code 15071000), crude sunflower oil (HS Code 15121110), and crude palm oil (HS Code 15111000) from 20% to 10%
Summary: The notification amends previous customs tariff regulations by reducing basic custom duty to 10% for crude soya bean, sunflower, and palm oils, and extending the exemption condition for yellow peas imports to bills of lading issued on or before 31.03.2026. The changes take immediate effect and are implemented by the finance ministry to address public interest considerations.
2.
38/2025 - dated
30-5-2025
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Cus (NT)
Fixation of Tariff Value of Edible Oils, Brass Scrap, Areca Nut, Gold and Silver
Summary: The notification amends tariff values for various goods including edible oils, brass scrap, areca nuts, gold, and silver. It establishes new tariff values for crude and refined palm oil, palmolein, soya bean oil, brass scrap, and precious metals. The changes will take effect from May 31, 2025, as issued by the Central Board of Indirect Taxes and Customs under the Customs Act, 1962.
Income Tax
3.
53/2025 - dated
30-5-2025
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IT
Corrigendum - Notification No. 44/2025, dated 06th May, 2025
Summary: A corrigendum to a previous income tax notification modifies two sections: first, correcting a reference in Schedule CG from "(4ca-biva)" to "(4a-biva)", and second, inserting a new row item "ah" for Sikkim in Schedule 80IE, which details deductions for undertakings located in North-Eastern states under section 80-IE.
Highlights / Catch Notes
GST
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Genuine Medical Hardship Leads to GST Registration Restoration with Mandatory Compliance and Timely Return Submissions
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Contractual Services Qualify as Export, Affirming Independent Contractor Status and ITC Refund Eligibility Under IGST Act
Income Tax
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Tax Rate Election Missed: No Retroactive Relief Allowed Under Section 115BAA for Explicit Non-Selection
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Trust Registration Challenged: Charitable Intent Needs Deeper Proof of Genuine Funding and Actual Philanthropic Implementation
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Common Area Maintenance Charges Clarified as Shared Infrastructure Expenses, Not Rental Payments Under Tax Regulations
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Tax Dispute Resolved: Interest on Land Compensation and Political Contribution Deductions Remanded for Detailed Verification
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Tax Exemption Claim Revived: Technical Filing Delay Does Not Automatically Invalidate Charitable Organization's Section 11 Benefits
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Unsecured Business Loan Deduction Upheld: Interest Expenses Validated Under Section 36(1)(iii) for Commercial Purpose
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Tax Dispute Resolved: Management Fees, Donations, and Royalty Payments Upheld Without Substantial Evidence of Impropriety
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Felt Packaging Firm Wins Transfer Pricing Battle: Unique Business Model Defeats Inappropriate Comparable Selection Methodology
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Seized Cash Dispute: Tribunal Orders Fresh Probe into Income Source and Tax Credit for Speculative Food Grains Business
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Compensation Expenses Unlinked to Share Transfer Denied Tax Deduction Under Section 48 Principles of Direct Connection
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Income Tax Tribunal Strikes Down Unsubstantiated Cash Loan and Asset Additions Under Sections 69 and 56
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Foreign Tax Credit Claim Remanded: Assessee Must Provide Comprehensive Documentation for Verification Under Section 90
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Tax Dispute: Creditor PAN Absence Doesn't Automatically Nullify Liability Under Section 41(1)
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Tax Dispute Resolved: Tribunal Rejects Revenue's Claims on Loan Allegations and Upholds Debenture Sale Transaction
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Reassessment Notice Invalidated: Lack of Jurisdictional Requirements Leads to Quashing of Proceedings Under Section 147/148
Customs
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Customs Tariff Amendment Adjusts Valuation for Edible Oils, Metals, and Agricultural Commodities Under Section 14(2)
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Gold Smuggling Case Dismissed: Prosecution Fails to Prove Guilt Beyond Reasonable Doubt Under Customs Act Section 135(1)(a)
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Customs Detention Invalidated: Personal Effects Must Be Released Due to Missed Show Cause Notice Deadline Under Section 110
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Customs House Agent Cleared of Red Sanders Export Allegations Due to Lack of Concrete Evidence in Procedural Review
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EPCG Authorization Appeals Partially Allowed: Duty Demand Reduced, Penalties Quashed, Limitation Period Challenged
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Gold Smuggling Case: Burden of Proof Rests on Carrier Under Section 123 of Customs Act, Non-Legitimate Origin Confirmed
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Hydrocarbon Oil Import: Classification Dispute Resolved with Incomplete Testing Evidence Favoring Appellant
DGFT
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Ayush Export Promotion Council Gains Authority to Issue Non-Preferential Certificates of Origin Under Paragraph 2.04 of Trade Policy
FEMA
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Foreign Contribution Rules Overhauled: Stricter Compliance, Enhanced Transparency, and Comprehensive Reporting Mandates Introduced
Corporate Law
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Corporate Governance Dispute: NCLAT Clarifies Tribunal Order Enforcement Under Sections 241 and 242 of Companies Act
IBC
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IBBI Simplifies Corporate Insolvency Resolution with Consolidated Five-Form Framework, Reducing Compliance Burden
PMLA
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Bail Denied: Online Betting Fraud Suspect Held for Serious Financial Crimes Under PMLA-2002 Section 45
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Legal Challenge Exposes Critical Procedural Gaps in Money Laundering Investigation Under PMLA Section 17(2)
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Provisional Attachment Order Upheld in Wildlife Trafficking Case: Property Seizure Confirmed Despite Partial Proceeds Traceability
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Tribunal Confirms Provisional Attachment of Rs. 4.05 Crores Due to Lack of Credible Evidence on Fund Origins
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Corporate MD Faces Criminal Charges for Rs. 10 Crore Fraud Through Systematic Bribery and Fraudulent Tender Allocation
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Spouse of NSEL Executive Loses Appeal Against Property Seizure Under PMLA Section 8 for Fraud-Linked Assets
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Legal Victory: Property Attachment Overturned as Appellant Proves Legitimate Fund Sources Under PMLA Section 8(3)
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Undisclosed Funds Expose Family's Asset Concealment: PMLA Section 5(1) Validates Property Attachment After Comprehensive Financial Investigation
Service Tax
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Mining Services Not Classified as Site Formation; Statutory Auditor Certificate Validates Tax Compliance for Specified Period
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Warehousing Charges Excluded from Service Tax: Reimbursed Expenses Not Considered Taxable Service Value
Case Laws:
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GST
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2025 (5) TMI 2140 HC allowed writ petition challenging tax assessment order. Petitioner, a wooden product manufacturer, missed initial hearing due to limited GST knowledge and accountant's error. Court condoned 192-day appeal delay, citing reasonable cause related to proprietor's health. Order directed appellate authority to review appeal on merits, providing hearing opportunity, without considering limitation period.
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2025 (5) TMI 2139 HC ruled that the petitioner's services do not constitute intermediary services under IGST Act. The services qualify as export of services, entitling the petitioner to Input Tax Credit refund. Demands raised under service tax and GST provisions were quashed. Refund claims were not barred by limitation. The court emphasized the distinction between intermediary and principal-to-principal service arrangements, confirming the petitioner's independent contractor status.
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2025 (5) TMI 2138 The HC revoked the cancellation of the petitioner's GST registration due to genuine ill-health preventing timely return filing. Restoration was granted subject to strict conditions: filing all pending returns within four weeks, paying outstanding dues and penalties, and obtaining departmental approval for Input Tax Credit utilization. The court balanced compliance requirements with recognizing exceptional circumstances, emphasizing fairness and revenue protection.
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Income Tax
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2025 (5) TMI 2159 SC dismissed SLP filed 275 days late, following prior precedent in tax-related case. Court upheld its standard approach to delay condonation, disposing of the application and maintaining consistent judicial stance on procedural timelines.
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2025 (5) TMI 2158 SC ruled that a Rs. 27,50,000 unsecured loan from a director to an assessee was not an unexplained credit under Section 68 of Income Tax Act. The court found the assessee had satisfactorily explained the loan's origin through bank documents and overdraft facilities. The Tribunal's addition of the amount to the assessee's income was deemed perverse, with the appeal allowed in the assessee's favor.
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2025 (5) TMI 2157 The HC ruled that a taxpayer cannot claim lower tax rates under Section 115BAA of the Income Tax Act if the option was not originally exercised in the prescribed return within the statutory deadline. Despite COVID-19 challenges and subsequent attempts to file revised returns, the court strictly interpreted the statutory requirement, emphasizing that the option must be affirmatively chosen in the original return by the prescribed due date, without exceptions.
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2025 (5) TMI 2156 The SC invalidated a tax reassessment notice for AY 2014-15, finding it beyond the statutory limitation period. The Court determined that the notice was issued outside the permissible ten-year block from AY 2025-26, rendering it invalid. The ruling emphasized that limitation periods for post-search reassessments must be computed according to pre-2021 legal provisions, despite amendments to Section 153C effective 1 April 2021.
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2025 (5) TMI 2155 HC invalidated reassessment proceedings against taxpayer due to procedural defects. The court found the Assessing Officer improperly issued notice under Section 148A(b) without particular information, mechanically rejected taxpayer's evidence, and failed to independently verify allegations of bogus transactions. The notice and subsequent order were quashed, with liberty to initiate fresh proceedings if legitimate material emerges. Key principles of procedural fairness and substantive evidence evaluation were affirmed.
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2025 (5) TMI 2154 HC analyzed TDS liability and limitation period in tax proceedings. Court held that an order passed beyond seven-year limitation under Section 201(3) of Income Tax Act is invalid. The court's previous order granting liberty to proceed "in accordance with law" did not extend limitation period. While TDS under Section 194C might apply to External Development Charges, the specific order was barred by limitation and thus set aside.
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2025 (5) TMI 2153 The SC condoned a 649-day delay in filing an appeal, finding sufficient cause due to the appellant's medical issues. The Tribunal rejected the assessee's books of account, upheld additions for undisclosed bank balance and unexplained investments, and set aside the CIT(A)'s order for non-compliance with statutory requirements. The case was remitted for fresh adjudication with a directive to pass a reasoned order.
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2025 (5) TMI 2152 SC Tribunal addressed registration and approval issues under Income Tax Act. Found technical delay in filing applications was condonable. Rejected CIT(E)'s orders cancelling provisional registration under section 12A and 80G approval. Directed fresh adjudication by CIT(E), emphasizing substantial justice over procedural technicalities. Remanded case for reconsideration, allowing assessee opportunity to substantiate claims and present complete documentation.
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2025 (5) TMI 2151 The SC/Tribunal addressed a tax appeal involving section 40(a)(ia) of the Income Tax Act. The key issues were disallowance of interest payments due to non-deduction of TDS and non-submission of Forms 15G/15H. After examining the factual ambiguities, the Tribunal condoned the 279-day appeal delay, set aside the lower court's order, and remanded the matter to the AO for fresh adjudication with clear procedural instructions.
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2025 (5) TMI 2150 AT allowed appeal challenging CIT(E)'s rejection of trust registration under Section 12AB. Key findings: (1) Section 115BBC inapplicable at registration stage; (2) Composite trusts with religious and charitable objects can obtain registration if activities benefit broader public; (3) Procedural fairness requires thorough enquiry before cancelling provisional registration. Case remanded for fresh consideration with guidelines on examining trust's genuine charitable activities and compliance with statutory objectives.
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2025 (5) TMI 2149 The SC/Tribunal addressed a charitable trust's application for registration under Income Tax Act. Despite procedural errors in form submission and non-compliance with notices, the Tribunal granted the trust a final opportunity to rectify its application. The ruling emphasized procedural fairness, rejecting hyper-technical grounds for rejection and directing the trust to provide comprehensive documentation to substantiate its charitable activities.
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2025 (5) TMI 2148 HC upheld PCIT's revisionary order under section 263 of Income Tax Act. The court found the Assessing Officer's original assessment erroneous, as no business activity was proven and expenses were claimed without proper verification. The PCIT's directions to disallow expenses and assess income from six flats were legally sustainable. The appeal was dismissed, affirming the PCIT's order.
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2025 (5) TMI 2147 The HC invalidated the tax reassessment beyond four years under Section 147, finding no failure by the assessee to disclose material facts. The court quashed the reassessment order, ruling that the Assessing Officer lacked sufficient tangible evidence to believe income had escaped assessment. The entire gross sale value addition under Section 68 was rejected, with the court permitting taxation only of the declared profit element.
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2025 (5) TMI 2146 AT partially allowed the appeal relating to income tax assessment. The tribunal deleted Rs. 7,00,000/- addition under Section 68 after finding the loan from a retired bank officer genuine and properly documented. For the Rs. 10,00,000/- loan from Supreme Gold, the matter was remanded to the AO for fresh examination due to incomplete evidence. The TDS disallowance under Section 40(a)(ia) remained unchanged. The key principle established was the need to substantiate loan transactions' identity, creditworthiness, and genuineness.
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2025 (5) TMI 2137 The HC directed tax authorities to dispose of pending rectification applications under Section 154 of Income Tax Act within six weeks. The court found the delay in processing tax credit applications for multiple assessment years was unjustified. The ruling emphasized the obligation to promptly address taxpayers' claims for prepaid tax credits, particularly where assessment orders were previously quashed or DRP directions existed.
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2025 (5) TMI 2136 The SC examined whether Common Area Maintenance (CAM) charges constitute "rent" under Section 194-I or "work" under Section 194-C of the Income Tax Act. The Court upheld the ITAT's ruling that CAM charges are payments for maintenance services, attracting 2% TDS under Section 194-C, not 10% under Section 194-I. The Revenue's appeal was dismissed, confirming that CAM charges are separate from rental payments and represent contractual work for common area maintenance.
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2025 (5) TMI 2135 The HC dismissed the writ petition challenging an income tax assessment order, holding that the petitioner must first exhaust statutory appeal remedies before the Commissioner of Income Tax and ITAT. The Court emphasized that writ jurisdiction under Article 226 is not a substitute for statutory appeals, and procedural or natural justice concerns should be addressed through the established appellate mechanism in tax matters.
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2025 (5) TMI 2134 The SC Tribunal addressed the denial of tax exemption under section 11 of the Income Tax Act due to delayed audit report filing. The Tribunal held that procedural delays in submitting Form 10B/10BB should not automatically disqualify exemption claims. The audit report's timely availability during return processing was deemed more significant than strict adherence to filing deadlines. The case was remanded for fresh assessment, emphasizing procedural flexibility over technical non-compliance.
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2025 (5) TMI 2133 SC/Tribunal remanded tax assessment case involving multiple issues. Key outcomes include: (1) Correcting clerical error in classifying enhanced land acquisition compensation as exempt income, (2) Removing 7.5% restriction on political contribution deductions after 2017 legislative amendment, and (3) Directing reassessment of interest income for proper verification. The order mandates Assessing Officer to recompute total income considering procedural and substantive tax law principles.
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2025 (5) TMI 2132 The ITAT condoned a 326-day delay in appeal filing, finding the reason valid due to inadvertent accountant oversight. The Tribunal upheld the addition of Rs. 58,23,000 under Section 69A for unexplained cash credits during demonetization, as the assessee failed to provide credible evidence of the cash source. Interest under Section 234B was also confirmed. The appeal was ultimately dismissed.
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Customs
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2025 (5) TMI 2145 The SC upheld the HC's acquittal of the Respondent in a gold smuggling case. Despite a statement under Section 108 of the Customs Act, the prosecution failed to conclusively prove recovery of gold from the accused. Hostile witnesses, lack of corroborative evidence, and procedural irregularities led the court to extend benefit of doubt to the Respondent. The Customs Department's appeal was dismissed.
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2025 (5) TMI 2144 The HC ruled that the detained gold jewellery constituted used personal effects exempt from customs duty. Based on judicial precedents, the Court found the Customs authority's detention improper, as personal jewellery cannot be mechanically detained. The goods were ordered released within four weeks without warehouse charges, emphasizing the need to distinguish between general jewellery and bona fide personal jewellery under Customs Baggage Rules.
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2025 (5) TMI 2143 The SC examined the detention of personal jewellery by Customs authorities, finding the seizure unlawful. The Court ruled that used personal jewellery within prescribed limits is exempt from duty under Baggage Rules. Critical procedural non-compliance, specifically the failure to issue a Show Cause Notice within the mandatory one-year timeline under Section 110 of the Customs Act, 1962, rendered the detention illegal. The Court ordered the release of the detained gold chain and kada, subject to verification and partial storage charges.
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2025 (5) TMI 2142 The Tribunal ruled in favor of the appellant, a Custom House Agent employee, by setting aside penalties imposed under Customs Act sections 114(i) and 117. The court determined that procedural lapses in export documentation do not automatically warrant penalties without direct evidence of intentional wrongdoing. The Tribunal emphasized that violations of Custom House Agent Licensing Regulations should be addressed under those specific regulations, not the Customs Act, and that penalties must conform to statutory limits.
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2025 (5) TMI 2141 Customs Tribunal ruled on EPCG Authorization export obligation case. Appellant failed to fulfill 50% export obligation within first four years under exemption notification. Tribunal upheld customs duty demand with interest for non-compliance, but set aside penalties and confiscation orders due to lack of conclusive evidence of intentional violation. Most show cause notices were deemed valid, with some excess duty demands and penalties nullified.
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2025 (5) TMI 2112 SC declined to interfere with HC order, condoning delay and dismissing the Special Leave Petition. All pending applications were disposed of by the bench of Justices Pardiwala and Mahadevan, effectively upholding the lower court's decision without substantial modification.
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2025 (5) TMI 2111 The HC ruled on a case involving detention of gold jewellery by customs authorities. The court held that personal jewellery worn by a foreign national qualifies as personal effects under Baggage Rules, 2016. The detention was deemed unlawful due to failure to issue a Show Cause Notice within the prescribed statutory period. The court ordered release of the detained jewellery without imposing storage charges, emphasizing protection of personal effects for international travelers.
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2025 (5) TMI 2110 HC ruled that detained silver-coated metal kada constituted personal effects for a foreign national tourist, exempt from customs duty under Baggage Rules, 2016. The Customs Department's seizure and disposal without proper intimation were deemed illegal. The court directed refund of sale proceeds (Rs. 12,66,557) with 6% statutory interest to the petitioner by 15th July, 2025.
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2025 (5) TMI 2109 The SC examined a customs smuggling case involving seized gold bars. The court found the DRI's investigation incomplete but upheld the confiscation due to the respondent's failure to prove lawful ownership. The burden of proof under Section 123 of the Customs Act rested with the respondent. The SC restored the original confiscation order, reducing the penalty from Rs. 5,00,000 to Rs. 1,00,000, considering the respondent's limited role and means.
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2025 (5) TMI 2108 The SC/Tribunal addressed complex customs classification dispute involving imported petroleum products. Key ruling determined that incomplete laboratory testing (missing three mandatory parameters) invalidates classification as Superior Kerosene Oil (SKO). The Tribunal rejected Revenue's classification, emphasizing statutory requirements mandate complete testing per Indian Standards. Importers were accorded benefit of doubt, with confiscation and penalties set aside due to inconclusive scientific evidence.
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Corporate Laws
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2025 (5) TMI 2107 The SC examined whether NCLT/NCLAT orders can be equated to civil court decrees for execution purposes. The Tribunal held that while such orders are enforceable like decrees, they cannot be formally drawn as decrees under CPC. The court emphasized that the Administrator lacks judicial power to determine rights conclusively and must pursue recovery through appropriate executable orders under the Companies Act, not through mechanical decree drawing.
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PMLA
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2025 (5) TMI 2106 HC rejected bail application in money laundering case involving online betting platform. Court found prima facie evidence establishing applicant's involvement in illegal transactions and layering of funds through the "Sky-exchange" platform. Bail denied based on substantial electronic evidence, corroborative statements, and the serious economic nature of the offence, emphasizing the need for stringent approach in economic crimes.
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2025 (5) TMI 2105 The HC examined the Enforcement Directorate's (ED) seizure and retention of properties under the Prevention of Money Laundering Act (PMLA). The court found critical procedural violations, including failure to forward reasons and materials to the Adjudicating Authority, absence of mandatory retention orders, and lack of evidence linking seized properties to scheduled offences. Consequently, the HC upheld the release of seized properties, rejecting the ED's appeal and emphasizing strict compliance with statutory requirements.
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2025 (5) TMI 2104 Court confirms provisional attachment of properties linked to illegal ivory trade under Prevention of Money-Laundering Act, 2002. The SC upheld attachment of properties acquired before and after criminal activity, finding sufficient prima facie evidence of proceeds of crime. The court interpreted "proceeds of crime" broadly to prevent asset dissipation, rejecting appellants' challenge to attachment of pre-crime properties.
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2025 (5) TMI 2103 The SC upheld a PMLA Provisional Attachment Order against appellants involved in a recruitment racket. The court found Rs. 4.05 crores in bank deposits and property acquisitions were proceeds of crime, rejecting appellants' claims of lawful sources. Despite procedural irregularities in evidence submission, the court confirmed the attachment based on prima facie money laundering evidence, emphasizing the appellants' failure to explain the unexplained wealth.
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2025 (5) TMI 2102 The SC examined an appeal challenging property attachment under PMLA involving financial irregularities in a government scheme. The court upheld the Enforcement Directorate's attachment order, finding the appellant's defense regarding property ownership unconvincing. The judgment confirmed the attachment based on prima facie evidence of proceeds of crime, emphasizing the limited review powers of appellate tribunals and rejecting the appellant's arguments about legitimate property acquisition.
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2025 (5) TMI 2101 Tribunal upheld attachment of property under PMLA, finding it proceeds of crime connected to NSEL scam. Despite no predicate offence charge-sheet, appellant was held liable for money laundering based on evidence of receiving kickbacks and purchasing property with tainted funds. The Tribunal rejected appellant's claims of legitimate income, confirming the Adjudicating Authority's order and dismissing the appeal.
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2025 (5) TMI 2100 The SC examined the attachment of properties under PMLA by ED, finding no nexus between the properties and alleged criminal activities. The Court ruled that properties acquired through legitimate sources prior to the FIR cannot be considered proceeds of crime. The attachment orders were set aside, as the appellants demonstrated transparent acquisition of properties through disclosed financial transactions, and the attachment would constitute double jeopardy against individual property owners.
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2025 (5) TMI 2099 The SC/Tribunal dismissed appeals challenging property attachment under PMLA. Despite initial disproportionate assets of Rs. 1,01,66,405/-, investigation revealed total assets worth Rs. 2,71,98,661/-. The court found appellants failed to demonstrate legitimate income sources for properties acquired between 1980-2013, including assets held in family members' names. Attachment was deemed valid, with no procedural irregularities in seizure and valuation.
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Service Tax
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2025 (5) TMI 2098 SC affirmed the Tribunal's decision regarding service tax on mining services. The court held that composite mining contracts could not be artificially bifurcated for service tax purposes before 1.6.2007. The demand for service tax on site formation and excavation services was dropped. Additionally, the court accepted the assessee's auditor certificate explaining the differential amount in service tax returns, rejecting the revenue's appeal for additional tax liability.
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2025 (5) TMI 2097 The SC/Tribunal addressed a complex service tax refund claim for an SEZ unit, examining exemption entitlements under Notification No. 40/2012-ST and No. 12/2013-ST. While recognizing the appellant's potential eligibility, the court remanded the case for re-examination, directing the original authority to allow procedural deficiency corrections and apply the doctrine of substantial compliance, ensuring both procedural integrity and fair assessment of the refund claim.
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2025 (5) TMI 2096 Tribunal ruled that warehousing charges collected by Custom House Agent (CHA) as reimbursed expenses cannot be included in taxable service value for service tax purposes. Relying on SC precedent, the Tribunal held that Rule 5(1) of Service Tax Valuation Rules was ultra vires, and only consideration for actual service can be taxed. The 2015 amendment expanding taxable value was deemed prospective, not retrospective. Appeal was allowed, setting aside service tax demand for 2006-07.
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Central Excise
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2025 (5) TMI 2095 CENVAT Credit Case Summary:Tribunal addressed the legality of carrying forward accumulated CENVAT credit by an Export Oriented Unit (EOU) after de-bonding and converting to Domestic Tariff Area (DTA). The SC set aside the Revenue's order denying credit transfer, remitting the case to the Original Authority for fresh adjudication. The key holding affirmed an EOU's right to carry forward accumulated credit upon paying appropriate duty, directing compliance with the HC's binding precedent after obtaining necessary factual clarifications.
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2025 (5) TMI 2094 The SC/Tribunal addressed the validity of a Show Cause Notice (SCN) regarding differential excise duty on fuel adaptors. The court ruled that the Original Authority exceeded the SCN's scope by introducing new grounds not originally proposed. The tribunal found that fitting fuel adaptors to diesel cars does not constitute manufacture under the Central Excise Act. Since the appellant had already paid duty and interest, and the penalty was deleted, the demand was deemed unsustainable. The appeal was allowed, setting aside the impugned order.
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