TMI Tax Updates - e-Newsletter
June 5, 2025

Case Laws in this Newsletter:

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

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Articles

1. “REASONABLE TIME" IN INDIRECT TAX CASES: WHEN NO SPECIFIC LIMITATION IS PRESCRIBED

   By: jayaprakash gopinathan

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2. Vague Show Cause Notices Under Indian GST: Judicial Precedents and Legal Implications

   By: Abhishek Raja

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3. THE ASSESSING OFFICER SHOULD NOT BE A PROSECUTOR, JUDGE AND EXECUTOR AT THE SAME TIME

   By: DR.MARIAPPAN GOVINDARAJAN

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4. 1 wrong registration decision =₹1,00,00,000+ lost in credit.

   By: Pradeep Reddy

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5. Pre Deposit of GST through electronic credit ledger

   By: K Balasubramanian

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6. Provisional Duty Bond, Types, Where Such Bonds Can Be Used? How to Close and Get It Cancelled - Complete Procedure.

   By: YAGAY andSUN

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7. Law evolves but facts remain constant.

   By: YAGAY andSUN

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8. AI and Biodiversity: Saving Earth with Artificial Intelligence

   By: YAGAY andSUN

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9. Consequences of Non-Compliance with Legal and Regulatory Framework for Beauty Parlors in India.(Part 2 of 2)

   By: YAGAY andSUN

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10. Legal and Regulatory Framework Governing Beauty Parlors in India.(Part 1 of 2)

   By: YAGAY andSUN

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11. Breathing New Life into the Atmosphere: Ground breaking Carbon Capture Innovations Transforming Our Climate Future.

   By: YAGAY andSUN

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News

1. Union Commerce and Industry Minister Shri Piyush Goyal Commences Official Visit to Italy to Deepen Bilateral Economic Cooperation

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2. DPIIT and Copyright Office to Host Special Event Marking 68 Years of the Copyright Act; Focus on Reforms for the Digital Era

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3. The Latest: Trump promises to hike steel, aluminum tariffs to 50% starting Wednesday

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4. US, Europe trade negotiators discuss tariffs in Paris

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5. India calls for WTO action on non-tariff barriers, ensuring strong dispute resolution mechanism

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6. Trump promises to hike steel, aluminum tariffs to 50 pc starting Wednesday

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7. CCI approves proposed acquisition of The Interpublic Group of Companies, Inc. by Omnicom Group Inc.

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8. CCI approves the proposed acquisition of up to 9.99% of the paid up share capital of IDFC First Bank Limited by Currant Sea Investments B.V.

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9. Union Minister for Finance and Corporate Affairs Smt. Nirmala Sitharaman and Union Minister of State for Finance Shri Pankaj Chaudhary inaugurate Directorate of Revenue Intelligence (DRI) headquarters building, in New Delhi.

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Notifications

Companies Law

1. G.S.R. 361(E) - dated 30-5-2025 - Co. Law

Companies (Cost Records and Audit) Amendment Rules, 2025

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2. G.S.R. 359(E) - dated 30-5-2025 - Co. Law

Companies (Audit and Auditors) Amendment Rules, 2025.

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3. G.S.R. 358(E) - dated 30-5-2025 - Co. Law

Companies (Management and Administration) Amendment Rules, 2025.

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Income Tax

4. 54/2025 - dated 3-6-2025 - IT

U/s 138(1) of IT Act 1961 - Central Government specifies ‘Secretary to the Government of Maharashtra, Women and Child Development’

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SEZ

5. G.S.R. 364(E) - dated 3-6-2025 - SEZ

Special Economic Zones (Amendment) Rules, 2025

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Circulars / Instructions / Orders

Customs

1. PUBLIC NOTICE NO. 03/2025 - dated 22-5-2025

Procedure to be followed in the case of undelivered articles/Return to Sender (RTS) parcels imported through Foreign Post Office- Chennai (Air)-Reg.

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Highlights / Catch Notes

GST

• Forged GST Challenge Exposed: Fabricated Docs Lead to Criminal Investigation and Petition Dismissal

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• Procedural Gaps in E-Way Bill Compliance Don't Automatically Trigger Penalties Without Proven Tax Evasion Intent

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• Bail Granted in Tax Evasion Case: Insufficient Evidence and No Proven Pattern of Deliberate Tax Fraud

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• Legal Challenge Upholds Natural Justice: Section 169 Violation Leads to Order Reversal and Procedural Fairness Restoration

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• High Court Strikes Down Tax Credit Disallowance Orders, Mandates Comprehensive Reevaluation of Electronic Credit Ledger Compartments

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• Services to Intermediary Not Directly Supplied to Government Disqualify Tax Exemption Under Notification 12/2017

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Income Tax

• Zero Coupon Bond by REC Ltd. Offers Tax-Efficient Investment with Comprehensive Regulatory Framework Under Section 2(48)

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• Share Application Money Not Loans: ITAT Quashes Penalty, Affirms Strict Interpretation of Section 269SS Provisions

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• Valuation of Unquoted Equity Shares Upheld: DCF Method Validated, Expert Report Confirmed Under Rule 11UA(2)

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• Retrospective Tax Amendments Clarify Income Assessment Rules Under Sections 149 and 147 with Broad Interpretative Scope

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• Technical Service Fees Not Taxable: Corporate Allocation Charges Exempt Under DTAA and Section 9(1)(vii)

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• Tax Diary Entries Validated as Legitimate Accounting Evidence, Section 69A Additions Upheld for Comprehensive Financial Reconciliation

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• Open Terrace and Portico Excluded from Built-Up Area Calculation, Tax Deduction Eligibility Confirmed Under Section 80-IB

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• Electricity Distribution Entity's Loan Interest Deemed Business Income Under Established Precedential Interpretation of Operational Revenue Streams

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• Tax Penalty Overturned: Income Estimation Error Invalidates Section 270A Assessment for Tempo Transportation Business

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• Charitable Trust Loses Tax Exemption Claim After Repeated Failure to Correct Return Details Under Section 11

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• Taxpayer Wins Capital Gains Tax Exemption by Purchasing Multiple Residential Flats Under Section 54F Interpretation

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• SEZ Income Tax Exemption Recalculation Requires Balanced Adjustment of Sales and Corresponding Cost of Sales Under Section 10AA

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• Voluntary Ex-Gratia Compensation on Employment Termination Ruled Non-Taxable Under Section 17(3) of Income Tax Act

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• Tax Assessment Dispute Resolved: Digital Signatures, Unexplained Cash Deposits, and TDS Compliance Upheld Under Existing Provisions

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• Management Fees Deduction Upheld: Legitimate Business Purpose Trumps Revenue Proportionality Under Section 37(1)

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• Subsidy for Export Potential Deemed Capital Receipt, Excludable from Book Profit Under Section 115JB

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• Incriminating Documents from Unrelated Entity Invalidate Tax Assessment Under Section 153A

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Customs

• Gold Bangles Seizure Invalidated: Customs Department Violates Natural Justice by Ignoring Statutory Hearing Requirements

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• Customs Broker Wins Appeal: No Proof of Deliberate Export Regulation Violations Under CBLR 2018 Regulations

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• Fabric Import Dispute: CVD Exemption Rejected Due to Improper Bill of Entry Amendment Under Section 149

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• Legal Challenge Dismissed: Customs Penalty Voided After Prolonged Delay Beyond Statutory Six-Year Limitation Period

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Corporate Law

• Companies Cost Records and Audit Rules Updated with Revised CRA-2 and CRA-4 Forms Under Sections 469(1), 469(2), and 148

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• Corporate Registration Fees and Procedures Updated: MCA Amends Form GNL-1 Under Sections 396-404 of Companies Act, 2013

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• Corporate Merger Dispute Resolved: Tribunal Upholds Original Amalgamation Scheme Date, Protects Procedural Fairness

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State GST

• Taxpayers Gain Relief: Section 128A Clarifies GST Payment Procedures and Dispute Resolution Mechanisms for Pre-November 2024 Periods

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IBC

• NCLAT Rejects Board Members' Challenge to Resolution Plan, Upholds Creditors' Decision Under IBC Section 61

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• NCLAT Confirms Preferential Transaction Findings, Upholds IBC Sections 43 and 44 Against Related Party Payments

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• Personal Guarantee Remains Valid: Bank Can Pursue Recovery Despite Auction Proceedings Under Section 19 Limitation Act

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Indian Laws

• Bank Can Sell Mortgaged Property Under Sarfaesi Act Despite Tax Recovery Attachment, Rights Subject to Further Legal Determination

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PMLA

• Enforcement Directorate Validates Arrest in Money Laundering Case Based on Documented Evidence of Fraudulent Scholarship Claims

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• Illegal Coal Mining Scheme Exposed: Shell Companies Caught Laundering Funds Through Fabricated Transactions Under PMLA

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• Funds Legitimately Received Through Share Transfer Invalidate Provisional Attachment Order Under Rule 8(6)

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• Legal Probe Confirms Predicate Offence Validity, Validates Criminal Investigation Findings Under Sections 384, 420 IPC and PMLA

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SEBI

• Automated Margin Pledge System Enhances Securities Trading Transparency and Investor Protection Mechanisms Under SEBI Guidelines

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• SEBI Mandates Research Analysts to Enhance Transparency, Disclosure, and Investor Protection Under Comprehensive Investor Charter

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Service Tax

• Tax Refund Upheld: Club Services Exemption Confirmed, Service Tax Liability Overturned After Detailed Precedent Analysis

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• Mailing Service Classification Dispute: Service Tax Demands Overturned on Procedural Grounds and Valuation Rule Interpretation

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Central Excise

• CENVAT Credit Dispute Resolved: Partial Appeal Success with Specific Demand Confirmations and Credit Restrictions

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Case Laws:

• GST

• 2025 (6) TMI 258
  The SC examined GST registration cancellation orders involving retrospective effect and procedural irregularities. The Court found the cancellation orders invalid due to lack of clear reasons in Show Cause Notices. Upon discovering forged documents and fictitious petitioners, the Court dismissed the writ petitions, directed criminal investigations by DGGI and police, and recommended procedural reforms to prevent judicial process misuse.

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• 2025 (6) TMI 256
  SC dismissed the Special Leave Petition after condoning delay, finding no merit for interference under Article 136. The Court's ruling upheld the lower court's decision without substantive modifications, effectively terminating the legal proceedings and disposing of all related applications.

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• 2025 (6) TMI 255
  SC dismissed SLP, granting petitioner liberty to pursue alternative remedy before Appellate Authority. Court directed that all contentions raised by petitioner shall be considered in accordance with law. Pending applications were consequently disposed of, allowing procedural flexibility for further legal recourse.

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• 2025 (6) TMI 254
  HC quashed penalty under GST Act for incomplete e-way bill, ruling that mere technical non-compliance without proven tax evasion intent does not warrant penalty. Court relied on precedent emphasizing need for explicit finding of tax evasion attempt. Order set aside, vehicle and goods ordered released.

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• 2025 (6) TMI 253
  HC denied bail in GST evasion case involving alleged 60 crore tax fraud. Despite applicant's claims of cooperation and retraction of statement, the court found the investigation incomplete and risks of evidence tampering significant. The compoundable nature of the offence did not automatically entitle the applicant to bail. Court suggested reapplying after charge sheet filing or arrest of other accused, emphasizing the ongoing investigation's integrity.

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• 2025 (6) TMI 252
  HC dismissed Department's petition challenging bail order in tax evasion case. Court found no grounds to deny bail, noting respondent's resignation from companies pre-GST Act, permanent residence, absence of prior offenses, and no risk of bail misuse. Investigating agency's reliance on existing records and lack of custodial interrogation request supported bail continuation.

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• 2025 (6) TMI 251
  The SC ruled that uploading a show-cause notice on the GST portal does not constitute valid service under Section 169 of the BGST Act. The ex parte assessment order was quashed for violating natural justice principles by denying an opportunity to be heard. The appellate authority's summary dismissal of the appeal based on delay was set aside, and the matter was remanded for fresh proceedings in compliance with statutory requirements.

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• 2025 (6) TMI 250
  The HC allowed the petitioner's challenge to the dismissal of a statutory appeal under GST Act. The court found the 22-day delay justifiable and within the condonable period. The HC set aside the previous order, directing the appellate authority to number and decide the appeal on merits within 90 days, without imposing costs.

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• 2025 (6) TMI 249
  J&K HC disposed of a GST registration petition, directing petitioner to approach Competent Authority within 7 days for registration restoration. Court mandated compliance with tax formalities, return filing, and payment of taxes/penalties. Failure to comply would result in automatic registration restoration.

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• 2025 (6) TMI 248
  The HC ruled that GST provisions do not apply retrospectively to works contracts with service components before 01.07.2017. Authorities lack jurisdiction to issue notices or take coercive action under GST Act from that date. The Court directed respondent (BDA) to consider the petitioner's VAT refund claim of Rs. 34,03,391 within six weeks, adhering to legal process. The judgment reaffirmed GST as an indirect tax based on collect-and-pay mechanism.

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• 2025 (6) TMI 247
  Kerala HC allowed a writ petition challenging tax credit disallowance for a trader. The court relied on precedent establishing that IGST credits can be used to settle SGST and CGST liabilities. The HC set aside the original orders, directing tax authorities to reconsider the matter and provide a hearing within three months, effectively reinstating the petitioner's input tax credit claim.

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• 2025 (6) TMI 246
  WBAAR ruled that a manpower services provider supplying services to a government undertaking (WTL) through an indirect supply chain is ineligible for GST exemption. The HC determined that the service provider did not directly supply services to a government entity, thereby failing the key condition for tax exemption under Notification No. 12/2017. The appellant's claim was rejected, with the court emphasizing strict interpretation of exemption notifications and the requirement of direct government supply.

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• Income Tax

• 2025 (6) TMI 257
  The SC/HC examined the applicability of penalty under sections 269SS and 271D of Income Tax Act for cash receipt of share application money. The Tribunal ruled that share application money received in cash from directors/shareholders does not constitute a loan or deposit, and thus does not attract penalty. The court dismissed the revenue's appeal, holding that the cash receipt was genuine, within legal limits, and did not violate statutory provisions governing share application money.

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• 2025 (6) TMI 245
  SC upheld the ITAT's order deleting tax addition under Section 56(2)(viib). The court found the Assessee's share valuation using Discounted Cash Flow method valid, rejecting the Assessing Officer's negative book value approach. The expert valuation report was deemed substantiated, with no evidence of mala fide intent. The Revenue's appeal was dismissed, affirming the Assessee's fair market value determination.

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• 2025 (6) TMI 244
  The SC analyzed the retrospective applicability of the 2012 amendment extending limitation period for reopening tax assessments involving foreign assets from six to sixteen years. The Court held that notices issued beyond the original six-year limitation period cannot be sustained without clear legislative intent. Recognizing potential conflicts between legislative purpose and settled judicial principles, the Court referred the matter to a larger bench for definitive resolution, emphasizing the importance of legal certainty in tax proceedings.

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• 2025 (6) TMI 243
  The HC analyzed the taxability of a US-based company's service receipts from Indian customers under the Income Tax Act and India-USA DTAA. The court affirmed the ITAT's ruling that repair and maintenance services and corporate allocation charges did not constitute Fees for Technical Services (FTS). The key determinant was the absence of a "make available" criterion, meaning the services did not transfer enduring technical knowledge enabling independent application by Indian customers. Consequently, the Revenue's appeal was dismissed.

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• 2025 (6) TMI 242
  The SC upheld the ITAT's decision regarding income tax additions based on seized diary entries. The court found that diaries containing cash receipt entries can constitute books of accounts or credible evidence, even if not part of formal accounting records. The AO's reconciliation of diary entries with formal books justified the additions under Section 69A of the Income Tax Act. The court rejected the assessee's arguments and dismissed the appeals.

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• 2025 (6) TMI 241
  SC resolved a tax deduction dispute under Section 80-IB, determining that open terraces and porticos are not part of "built-up area" calculations. The court held that such open spaces, not enclosed by walls, cannot be included in measuring residential unit area for tax benefit eligibility. If excluding these spaces keeps the unit under 1,500 sq.ft., the developer qualifies for the income tax deduction.

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• 2025 (6) TMI 240
  NRI challenged reassessment proceedings initiated by tax authorities under Section 148 of Income Tax Act. HC ruled that mere property purchase and non-filing of return does not constitute sufficient grounds for reassessment. Court found no prima facie evidence of escaped income, rejecting AO's notice as invalid. Proceedings were quashed, emphasizing strict requirements for initiating tax reassessment against non-resident taxpayers.

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• 2025 (6) TMI 239
  The SC upheld the ITAT's classification of various income streams for an electricity distribution company. The court determined that interest income from staff loans, suppliers, and miscellaneous receipts should be treated as business income, not income from other sources. The ruling emphasized that income directly related to business operations must be classified as business income, rejecting the Revenue's arguments about the nature of these earnings.

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• 2025 (6) TMI 238
  SC Tribunal resolved three key tax issues for a law firm: (1) License fee for goodwill is allowable under Section 37, not violating Bar Council Rules; (2) Ad-hoc 10% disallowance of foreign travel expenses rejected due to lack of evidence; (3) TDS credit claim upheld where corresponding income was assessed. All Revenue appeals were dismissed, affirming the assessee's tax treatment across all contested points.

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• 2025 (6) TMI 237
  ITAT Delhi allowed an appeal against a penalty under Section 270A of Income Tax Act. The Tribunal quashed the penalty of Rs. 15,601 imposed on estimated income additions, agreeing with the assessee's argument that penalties cannot be levied solely on estimated income basis. The Revenue did not contest the submission, and the appeal was consequently allowed.

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• 2025 (6) TMI 236
  The SC/Tribunal examined the validity of tax assessment under sections 68 and 69C of the Income Tax Act. After reviewing documentary evidence of loan transactions, the court found the additions by the Assessing Officer arbitrary. The tribunal ruled in favor of the assessee, holding that loan repayments through banking channels and submitted documents established transaction genuineness, thereby quashing the tax department's suspicion-based additions.

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• 2025 (6) TMI 235
  The SC/Tribunal addressed the validity of reopening an assessment for a charitable society under Income Tax Act. The key ruling determined that section 12AA registration obtained during reassessment proceedings is effective prospectively. The Tribunal directed reassessment, finding no exemption for AY 2015-16 and 2016-17 due to absent registration, but allowing future tax benefits from registration date. The appeals were allowed for statistical purposes with instructions for fresh assessment.

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• 2025 (6) TMI 234
  The Tribunal addressed an appeal regarding an incorrect clause selection in a tax exemption registration application. The court held that a technical error in form submission does not invalidate the entire application. The Tribunal set aside the Commissioner's rejection, directing a fresh review with an opportunity for the assessee to rectify the clause selection under section 12A(1)(ac). The matter was remanded for merit-based adjudication, emphasizing procedural fairness over strict technical compliance.

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• 2025 (6) TMI 233
  The SC/Tribunal quashed reassessment proceedings under section 147 due to jurisdictional defects. The AO failed to establish a clear nexus between received information and belief that income escaped assessment. The reopening order was set aside as the AO did not specify material facts allegedly suppressed, despite the assessee's documentary evidence supporting transaction genuineness. Natural justice principles were also potentially violated by non-disclosure of information.

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• 2025 (6) TMI 232
  The SC/Tribunal condoned the delay in filing an appeal after seven and a half years, finding reasonable cause. The assessee's claim for tax exemption under Section 11 was rejected due to non-compliance with statutory conditions, including incorrect return filing and failure to apply 85% of income for charitable purposes. The Section 143(1) order by DCIT was upheld, and the appeal was dismissed based on a coordinate bench's previous decision.

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• 2025 (6) TMI 231
  The SC/Tribunal examined the classification of religious expenditure under Section 80G(5B) of the Income Tax Act. The case involved a trust's Bhagwat Katha event expenses exceeding the 5% statutory limit. While acknowledging the event's religious nature, the Tribunal did not conclusively reject the trust's application. Instead, it remanded the matter for fresh consideration, directing the CIT(E) to re-evaluate the expenditure's classification and allow the trust to present supporting judicial precedents.

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• 2025 (6) TMI 230
  The AT examined the tax treatment of ULIP maturity proceeds for AY 2016-17, focusing on exemption under section 10(10D) and classification of proceeds. The AT found the ULIP not exempt due to premium limits and directed the AO to reconsider taxation based on recent Mumbai Tribunal precedent. The case highlights evolving legislative interpretation regarding ULIP taxation, with proceeds to be treated as income from other sources, pending further administrative review.

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• 2025 (6) TMI 229
  The SC/Tribunal addressed a tax dispute involving an unexplained cash credit under section 68 of the Income-tax Act. After carefully examining the evidence, the Tribunal found the assessee's transaction with VRR Financial Services genuine, rejecting the revenue's claim of an accommodation entry. The Tribunal deleted the Rs. 3.5 crore addition, citing lack of independent inquiry and procedural lapses by the Assessing Officer, thereby dismissing the revenue's appeal.

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• 2025 (6) TMI 228
  The SC examined the applicability of section 80G(5) of the Income Tax Act, focusing on three key issues: maintainability of an application for tax exemption, procedural errors in selecting statutory sub-clauses, and proper consideration of exemption claims. The Court allowed the appeal, directing the CIT(Exemptions) to reconsider the application under the correct sub-clause, emphasizing that technical errors should not automatically disqualify an otherwise eligible institution from tax benefits.

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• 2025 (6) TMI 227
  Tribunal addressed complex tax exemption claims under sections 54 and 54F of Income Tax Act. The SC upheld the assessee's claim of purchasing two simultaneously acquired flats as a single duplex residential house, allowing tax exemption. The court rejected Revenue's arguments, finding the flats constituted one residential unit. The proviso barring multiple house purchases was deemed inapplicable due to simultaneous acquisition. Appeal was partly allowed, deleting the tax addition.

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• Customs

• 2025 (6) TMI 207
  The SC examined a customs case involving gold bangles detention. The court found the Customs Department's actions unlawful due to failure to issue a show cause notice and provide personal hearing as mandated by Section 124 of the Customs Act, 1962. The pre-printed waiver signed by the traveler was deemed invalid. The SC ordered release of the detained goods upon payment of applicable duty, without penalty, emphasizing the importance of natural justice principles in administrative proceedings.

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• 2025 (6) TMI 206
  Tribunal analyzed alleged violations by a Customs Broker under Customs Brokers Licensing Regulations, 2018. After comprehensive review, the Tribunal found no substantive breaches in obtaining export authorizations, client compliance advice, or client verification. The HC concluded that the Customs Broker acted in good faith, quashed license revocation, and set aside penalties, emphasizing the broker's limited role as a processing agent without investigative responsibilities.

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• 2025 (6) TMI 205
  Tribunal addressed the permissibility of amending Bills of Entry under Section 149 of the Customs Act, 1962, several years after import. The SC held that amendment cannot substitute reassessment or appeal, emphasizing that such attempts to claim exemption benefits post-assessment are legally impermissible. The Tribunal affirmed that amendments are restricted to documentary corrections, not substantive assessment modifications, and the proper remedy lies in following statutory appeal mechanisms within prescribed timelines.

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• 2025 (6) TMI 204
  HC ruled that the Show Cause Notice issued over six years after export was time-barred under Section 28 of Customs Act. The eight-year delay in adjudication further invalidated proceedings. No evidence substantiated allegations of excess duty drawback or goods misdeclaration. Retracted statements without proper examination were deemed inadmissible. Consequently, penalties against appellants were set aside, with the court emphasizing procedural compliance and limitation periods in customs proceedings.

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• 2025 (6) TMI 203
  The CESTAT Kolkata ruled that customs duty on exported iron ore fines cannot be calculated using cum-duty value. Citing consistent precedents from previous cases, the Tribunal affirmed that cum-duty value is inappropriate for determining export duty. The Appeals were consequently dismissed, upholding the original order and establishing a clear legal interpretation of valuation methodology.

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• Corporate Laws

• 2025 (6) TMI 202
  AT dismissed appeal for exceeding statutory limitation period under Section 421 of Companies Act, 2013. Appeal filed 54 days beyond permissible 45-day extension, with appellant failing to demonstrate sufficient cause for delay. Official records confirmed late filing, rejecting appellant's claims about earlier submission date. Tribunal strictly applied limitation provisions, emphasizing statutory cap on delay condonation.

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• 2025 (6) TMI 201
  The SC reviewed an appeal challenging the NCLT's modification of the 'Appointed Date' in a cross-border amalgamation scheme. The court found the NCLT exceeded its jurisdiction by unilaterally changing the effective date without cogent reasons or procedural fairness. The SC restored the original 'Appointed Date' as defined in the scheme, emphasizing the tribunal's limited discretion to modify scheme terms and the importance of respecting cross-border legal frameworks.

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• Insolvency & Bankruptcy

• 2025 (6) TMI 200
  The SC/NCLAT addressed a complex insolvency resolution case involving challenges to a resolution plan. The Tribunal dismissed the appeal by suspended board members, finding they lacked locus standi to challenge the plan. The court upheld the CoC's commercial wisdom, validating differential creditor treatment, 'Nil' payments to unsecured creditors, and discretionary employee fund allocations. The decision reinforced limited judicial review in insolvency proceedings, prioritizing timely resolution and maximizing asset value.

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• 2025 (6) TMI 199
  AT upheld the order finding preferential transactions under IBC Sections 43 and 44. Payments made to related parties during look back period were deemed to put recipients in a more favorable position than potential asset distribution. The Tribunal rejected appellants' arguments that transactions were in ordinary course of business, noting the Corporate Debtor's financial distress. Directed recipients to refund amounts within 30 days, effectively setting aside the preferential transactions.

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• 2025 (6) TMI 198
  The SC affirmed the sale of a corporate debtor's assets as a going concern, despite the sale notice not explicitly stating so. The tribunal upheld the purchaser's entitlement to reliefs and concessions, rejecting the liquidator's applications for dissolution. The court emphasized the IBC's objective of reviving businesses, finding that the sale of entire factory assets effectively constituted a going concern sale, and the purchaser's intention to operate the company justified maintaining its status.

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• 2025 (6) TMI 197
  The SC/Tribunal held that a sale under SARFAESI Act conducted before CIRP commencement remains valid. The borrower's redemption rights were extinguished upon auction notice publication. The moratorium under IBC cannot retroactively invalidate sales completed prior to CIRP initiation. The court emphasized preserving auction sanctity and rejected challenges to the sale's validity, thereby upholding the financial creditor's rights.

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• 2025 (6) TMI 196
  The SC/Tribunal dismissed the personal guarantor's insolvency application under Section 94(1) of the Insolvency and Bankruptcy Code. The court held that recoveries from a DRT decree and property auction do not extend the limitation period. The application, filed in 2024, was time-barred as the original guarantee invocation was in 2016. The order emphasized strict adherence to limitation periods and the continuing nature of the personal guarantee.

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• PMLA

• 2025 (6) TMI 195
  The HC upheld the arrest and remand of the petitioner under the Prevention of Money Laundering Act (PMLA). The Court found the arrest lawful, with valid reasons recorded by the authorized officer, and the Judicial Magistrate's remand order compliant with statutory requirements. Constitutional safeguards under Articles 21 and 22 were satisfied, and allegations of mala fide were rejected. The arrest was deemed valid for both investigative and prosecutorial purposes.

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• 2025 (6) TMI 194
  Tribunal dismissed appeals challenging a provisional attachment order under PMLA related to illegal coal mining. The Court found prima facie evidence of money laundering through shell companies and illegal excavation activities. Statements under section 50, corroborated by physical evidence and digital records, substantiated the appellants' involvement in predicate offences. Properties held by family members and associated companies were lawfully attached as proceeds of crime.

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• 2025 (6) TMI 193
  The SC partially allowed the appeal, quashing the attachment of Rs. 2.84 crores received through legitimate banking channels as share transfer consideration. The court upheld the attachment of Rs. 11 crores linked to alleged proceeds of crime from the Syndicate Bank scam. The appellant was permitted to retain property possession pending trial, with restrictions on alienation, ensuring the trial court's independent adjudication remains unaffected.

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• 2025 (6) TMI 192
  The HC upheld the seizure of movable properties under the Prevention of Money Laundering Act, 2002. The court found a valid predicate offence existed when the ECIR was recorded, and the appellant's statements under Section 50 implicated him in a criminal syndicate. The appellant failed to prove the seized cash was from legitimate sources. The court rejected procedural challenges due to lack of supporting evidence and dismissed the appeal, confirming the original seizure order.

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• Service Tax

• 2025 (6) TMI 191
  Tribunal addressed three key issues: service tax on foreign agent commissions, rent paid to company director, and extended limitation period. On commission payments, the Tribunal held that service tax demand was unsustainable due to revenue neutrality and Cenvat credit entitlement. For rent paid to director, the Tribunal ruled no service tax was leviable as premises were provided in individual capacity. The appeal was allowed, setting aside the service tax demands.

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• 2025 (6) TMI 190
  CENVAT Credit Case: Tribunal RulingThe SC Tribunal addressed CENVAT Credit recovery limitations, finding that extended limitation periods cannot be invoked when facts are disclosed in periodical returns. The Tribunal upheld the admitted demand already paid by the appellant, including interest and partial penalty, and set aside the remaining demand. The ruling emphasized principles of fairness, proportionality, and procedural transparency in tax adjudication.

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• 2025 (6) TMI 189
  SC partially allowed the appeal concerning service tax demands. The court upheld tax and interest for rent from shops and lease instalments, finding them within "renting of immovable property" service definition. However, the court set aside demands for mobile tower licensing fees, miscellaneous rents, and bus parking charges. Penalties were waived due to absence of tax evasion intent, though late fees for delayed returns were maintained.

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• 2025 (6) TMI 188
  Tribunal ruled in favor of an incorporated club challenging service tax liability. The key finding was that services provided by incorporated clubs to members are not taxable under the Finance Act, 1994. The principle of mutuality applies, exempting the club from service tax. The refund claim was deemed admissible, with the doctrine of unjust enrichment inapplicable. The Tribunal set aside the lower authorities' orders and allowed the appeal.

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• 2025 (6) TMI 187
  The SC affirmed that pre-1.6.2007 construction contracts involving residential complexes are composite works contracts, not pure construction services. The Tribunal ruled that service tax cannot be levied under 'Construction of Residential Complex Service' but must be under 'Works Contract Service'. The demand was set aside, extended limitation period was rejected, and the appellant was granted relief based on precedential interpretation of service tax classification.

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• 2025 (6) TMI 186
  The SC/Tribunal comprehensively addressed multiple service tax issues, ultimately ruling in favor of the appellant. The key holdings rejected service tax demands on insurance income, transportation charges, weigh bridge services, and delayed payment amounts, primarily on grounds of preventing double taxation. The court applied a restrictive interpretation of taxable services, setting aside all service tax demands and associated penalties, thus substantially vindicating the appellant's tax position.

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• 2025 (6) TMI 185
  Tribunal addressed service tax applicability for Goods Transport Agency (GTA) services involving subcontractor and intermediary. Held that profit margin does not constitute a separate taxable service, and service tax is leviable only on actual services rendered. Rejected Revenue's attempt to tax profit margin separately, finding no evidence of distinct service. Allowed appellant's appeal, set aside tax demand, interest, and penalties, emphasizing service tax applies to services, not profits.

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• 2025 (6) TMI 184
  The SC/Tribunal examined service tax liability for foreign bank charges in export proceeds. It ruled that exporters are not liable for service tax when foreign banks deduct charges during export proceeds remittance, as no direct service relationship exists between exporters and foreign banks. The Tribunal rejected extended limitation period and penalties, setting aside the original tax demand based on established legal precedents.

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• 2025 (6) TMI 183
  CESTAT ruled on four key service tax issues for a company's Bangalore and Pune units. The tribunal allowed cenvat credit of Rs.2,17,92,402/- on financing services, rejected service tax demand of Rs.8,42,53,255/- for inter-unit transactions, partially confirmed Rs.45,88,500/- bad debt adjustment demand for normal limitation period, and denied extended limitation period. The decision emphasized that inter-unit services within same legal entity do not attract service tax and credit adjustments are restricted under specific conditions.

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• 2025 (6) TMI 182
  TRIBUNAL CASE SUMMARY:The Tribunal ruled against the tax department in a service tax dispute involving mail distribution services. Key findings included: (1) mail segregation and delivery does not constitute "Mailing List Compilation and Mailing Service" under statutory definition, (2) reimbursable expenses are not taxable based on SC precedent, and (3) extended limitation period cannot be invoked without evidence of suppression. The Tribunal set aside the service tax demand, remanded short payment calculations, and rejected penalty provisions.

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• 2025 (6) TMI 181
  Tribunal addressed service tax liability for sub-contractors. Ruled that sub-contractors are independently liable to pay service tax even when main contractors have already paid tax on entire contract value. The CENVAT Credit Rules allow main contractors to claim credit for sub-contractors' tax payments, preventing economic double taxation. Appeal was dismissed, upholding the original tax demand against the sub-contractor.

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• Central Excise

• 2025 (6) TMI 180
  AT analyzed a case involving a Central Excise Superintendent's revision of ER-1 Returns. The key issues centered on whether the appellant abetted irregular CENVAT Credit and violated Central Excise Rules. The AT ultimately found the appellant's actions were bona fide mistakes without deliberate intent. Consequently, the Rs. 25,00,000 penalty was set aside, emphasizing that unintentional errors do not automatically warrant disciplinary action when made in good faith.

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• 2025 (6) TMI 179
  Tribunal ruled against the appellant in a CENVAT credit dispute. The key findings were: (1) iron and steel items do not qualify as capital goods or inputs, (2) security services in residential colonies are not input services, and (3) education cess credits cannot be cross-utilized before 1.3.2015. The Tribunal upheld demands totaling Rs. 2,12,998/-, imposed penalties, and confirmed interest on confirmed dues, rejecting the appellant's arguments based on judicial precedents and statutory interpretations.

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• 2025 (6) TMI 178
  CESTAT New Delhi ruled that notional costs of drawings and designs supplied free by a manufacturer to its vendor cannot be included in the assessable value for central excise duty. Following prior precedent, the Tribunal set aside the Additional Director General's order and allowed the appeal, determining that such notional costs should be excluded from duty calculations.

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• CST, VAT & Sales Tax

• 2025 (6) TMI 177
  SC dismissed the Miscellaneous Application as not pressed, granting the petitioner's counsel permission to withdraw the application. All pending applications were disposed of by the court, effectively concluding the legal proceedings without a substantive ruling on the merits of the case.

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• Indian Laws

• 2025 (6) TMI 176
  SC analyzed two key legal issues regarding proclaimed offender status and non-appearance prosecution. The Court held that proclaimed offender status under Section 82 Cr.P.C. ceases upon acquittal in the original case. Additionally, Section 174A IPC is an independent substantive offence that can continue even if the original proclamation is extinguished. The Court ultimately quashed proceedings against the appellant due to acquittal and monetary settlement, establishing clear principles for interpreting these criminal procedural provisions.

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• 2025 (6) TMI 175
  HC analyzed complex legal issues involving SARFAESI Act, Income Tax Act, and property registration. The court held that a mortgagee bank can exercise sale powers under SARFAESI despite tax attachment orders. The auction sale remains valid, and the Sub-Registrar must register the sale certificate. However, the purchaser's title is subject to existing attachments and claims, which must be resolved in separate legal proceedings. The court partly allowed the writ petition, directing sale certificate revalidation and registration.

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• 2025 (6) TMI 174
  The SC upheld the HC's interim order, finding subsequent mortgage deeds executed by the mortgagors void and voidable. The Court ruled that the deeds were created without valid consent, violating the prior mortgage's Clause 5. The civil court retained jurisdiction to examine the legality of mortgage instruments, and the interim injunction against acting on these deeds was justified, preventing potential serious injury to the first mortgagee.

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