TMI Tax Updates - e-Newsletter
June 7, 2025
Case Laws in this Newsletter:
GST
Income Tax
Customs
Corporate Laws
Insolvency & Bankruptcy
Law of Competition
PMLA
Service Tax
Central Excise
Indian Laws
TMI Short Notes
Bills:
Summary: Legal document analysis reveals a comprehensive update to tax return verification procedures in India. The new Income Tax Bill, 2025 modernizes verification requirements for different entity types, maintaining core principles from the 1961 Act while incorporating contemporary business structures. Key changes include clarified verification authorities for companies, partnerships, and entities under insolvency, with enhanced procedural flexibility. The legislation aims to reduce ambiguities, align with current legal frameworks, and ensure robust tax compliance across diverse organizational forms.
Bills:
Summary: A comprehensive legal analysis comparing Clause 263(2)(a) of the Income Tax Bill, 2025 with Section 139D of the Income-tax Act, 1961 reveals significant procedural innovations in tax return filing. The new clause expands rule-making powers for electronic tax return submissions, enhancing digital compliance, verification mechanisms, and administrative flexibility while providing a more comprehensive framework for taxpayer reporting requirements across different categories of individuals and entities.
Bills:
Summary: A comprehensive legal analysis of the Income Tax Bill, 2025, focuses on Clause 263(2)(a), which modernizes return filing procedures. The provision empowers the tax authority to prescribe electronic filing formats, verification methods, and document submission requirements. Compared to the previous Section 139C, the new clause offers a more flexible, technology-driven approach to tax compliance, reducing upfront documentation while maintaining the ability to request information during assessment.
Bills:
Summary: Tax return preparer scheme under Clause 264 of the Income Tax Bill, 2025 introduces a statutory framework for submitting income tax returns through authorized intermediaries. The provision enables specified taxpayer classes to prepare returns via tax return preparers, excluding companies and audit-required entities. The scheme grants CBDT discretionary power to design and implement return preparation mechanisms, focusing on simplifying tax compliance for individual and small taxpayers while maintaining regulatory oversight.
Bills:
Summary: A new legislative provision in the Income Tax Bill, 2025 mandates comprehensive PAN-Aadhaar integration for prescribed transactions. Clause 262(9) requires individuals to quote and authenticate their identification numbers when entering specified transactions, with reciprocal verification obligations for transaction recipients. This expands existing tax compliance frameworks by introducing real-time authentication mechanisms, creating a more robust system to track financial activities, prevent identity fraud, and enhance tax administration through digital infrastructure.
Bills:
Summary: A comprehensive legal provision in the Income Tax Bill, 2025 governs Permanent Account Number (PAN) allocation and Aadhaar integration. The clause mandates PAN application for specified persons and transactions, requires Aadhaar linkage, and prohibits multiple PANs. It aims to enhance tax compliance, reduce fraud, and modernize tax administration through digital identity infrastructure, with robust rule-making powers and potential penalties for non-compliance.
Articles
By: Dr. Sanjiv Agarwal
Summary: The article details the GST amnesty scheme under Section 128A of the CGST Act, providing comprehensive procedures for taxpayers to file applications for waiving interest and penalties. Eligible persons can electronically submit applications within specified timeframes, subject to full tax payment and withdrawal of existing appeals. The scheme allows taxpayers to resolve pending tax demands by following specific procedural requirements, with clear guidelines on application submission, evaluation, and potential outcomes of the waiver process.
By: Bimal jain
Summary: A cement manufacturing company challenged the partial rejection of its refund claim under the Budgetary Support Scheme. The Jammu & Kashmir High Court ruled that the rejection without providing reasons was invalid. The court determined the company correctly calculated its refund based on prescribed percentages of GST paid and directed the authorities to release the withheld amount, emphasizing the need for transparent and justified refund processing.
By: Ishita Ramani
Summary: One-person companies (OPCs) must file annual returns with the Ministry of Corporate Affairs, including Form AOC-4 and Form MGT-7A. While enjoying some compliance relaxations like no mandatory annual general meetings, OPCs are not entirely exempt from filing requirements. Timely submission within specified deadlines is crucial to maintain legal status and avoid penalties.
By: Pradeep Reddy
Summary: A GST audit revealed compliance issues for a digital-to-consumer brand, highlighting potential tax risks. Key problems included mismatched financial records, incomplete cross-charges, inadequate documentation, and untracked vendor compliance. The article presents a 10-point checklist for businesses to proactively prepare for GST audits, emphasizing the importance of maintaining accurate financial records and addressing potential discrepancies before official scrutiny.
By: K Balasubramanian
Summary: Tax authorities uploaded a show cause notice on the GST portal for a medical shop owner, alleging improper input tax credit. Without effectively serving the notice or providing personal hearing, they froze the business bank account. The Madras High Court criticized the mechanical approach, emphasizing that uploading notices online does not constitute effective service. The court recommended alternative notification methods and highlighted the need for proper communication with taxpayers before taking coercive recovery actions.
By: YAGAY andSUN
Summary: The Companies (The Registration Offices and Fees) Rules, 2014 establish a regulatory framework for Registrar of Companies (RoC) operations under the Companies Act, 2013. The rules define fee structures for company registrations, annual filings, and various corporate submissions, emphasizing electronic filing through the MCA portal. They outline jurisdiction, fee payment methods, penalties for non-compliance, and aim to streamline corporate regulatory processes while ensuring transparency and efficient corporate governance.
By: YAGAY andSUN
Summary: A legal framework regulating Nidhi companies under the Companies Act, 2013, establishes specific guidelines for non-banking financial entities. The rules define operational parameters including minimum capital requirements, membership criteria, deposit restrictions, and governance standards. Nidhi companies must maintain statutory reserves, comply with regulatory directives, and operate exclusively for member financial services while adhering to strict corporate governance principles.
By: YAGAY andSUN
Summary: The Companies (Appointment and Qualifications of Directors) Rules, 2014 establish comprehensive guidelines for director appointments in companies. These rules define eligibility criteria, including age requirements, disqualification conditions, and limitations on directorships. They mandate obtaining a Director Identification Number, specify appointment procedures, outline independent director qualifications, and require consent and disclosure of interests. The regulations aim to ensure corporate governance, transparency, and accountability in director selection and management.
By: YAGAY andSUN
Summary: Concise Summary:The a comprehensive five-phase restoration plan for Badkal Lake in Faridabad, addressing ecological, environmental, and cultural challenges. The strategy involves systematic infrastructure development, ecological restoration, community engagement, and long-term sustainability monitoring. The revival aims to solve water scarcity, enhance biodiversity, restore local heritage, and create a sustainable urban ecosystem through collaborative efforts between municipal authorities, government agencies, and local communities.
By: YAGAY andSUN
Summary: A comprehensive overview of legal and statutory compliances for the telecom sector in India, covering licensing, regulatory approvals, security, financial obligations, and operational requirements. The document details mandatory regulations across eight key areas including licensing from Department of Telecommunications, TRAI guidelines, data security, taxation, infrastructure standards, foreign investment rules, labor laws, and miscellaneous compliance requirements with potential penalties for non-adherence.
By: YAGAY andSUN
Summary: Green hydrogen and green ammonia are emerging clean energy technologies produced using renewable electricity to split water and create hydrogen, then combine it with nitrogen. These alternatives aim to decarbonize hard-to-electrify sectors like heavy industry, shipping, and power storage. While promising, they face significant challenges including high production costs, infrastructure limitations, and energy-intensive processes. Their viability depends on technological advancements, policy support, and strategic implementation in specific regions and industrial applications.
News
Summary: The Reserve Bank of India rescheduled its August Monetary Policy Committee meeting from August 5-7 to August 4-6, 2025, due to administrative exigencies. The announcement was made under Section 45ZI(4) of the Reserve Bank of India Act, 1934, with the six-member rate-setting panel adjusting its original schedule by one day.
Summary: The central bank governor announced future monetary policy actions will depend on growth and inflation data. The monetary policy committee voted to cut repo rates and change stance from 'accommodative' to 'neutral'. The governor indicated limited space for further interest rate cuts if projected economic growth and inflation targets are met. The cash reserve ratio was reduced, and the policy aims to accelerate credit growth while providing economic certainty. Transmission of rate changes and potential future adjustments will depend on emerging economic indicators.
Summary: The Reserve Bank of India's recent rate cut of 50 basis points and 100 basis points CRR reduction is expected to boost Kolkata's housing demand by 5-10 percent, particularly in the affordable segment. Real estate developers anticipate lower interest rates will make home loans cheaper, driving increased residential unit sales. The city's property market shows sustained buyer interest, with unsold affordable homes decreasing and potential for improved liquidity for homebuyers and builders.
Summary: The Reserve Bank of India's governor stated there are currently no plans to increase foreign ownership limits beyond 15% in banks. While acknowledging India needs more banks, the RBI will carefully examine ownership structures and eligibility criteria. The central bank allows exceptions on a case-by-case basis and may consider higher foreign ownership in the future, but emphasizes the importance of trustworthy owners and managers.
Summary: The central bank reduced interest rates by 50 basis points, lowering the repo rate to 5.5% and cutting the cash reserve ratio to 3%. This move aims to stimulate economic growth by making home, auto, and personal loans cheaper. The decision comes amid softening inflation and slower economic growth, with the central bank seeking to boost domestic consumption and investment while maintaining price stability.
Summary: India's central bank reported a decrease in foreign exchange reserves by USD 1.24 billion to USD 691.49 billion for the week ending May 30. Despite the drop, the reserves remain sufficient to cover over 11 months of goods imports and 96% of external debt. Foreign currency assets declined, while gold reserves slightly increased. The reserves had previously reached an all-time high of USD 704.885 billion in September 2024.
Summary: The Reserve Bank of India's monetary policy announcement triggered a significant stock market rally, with Sensex jumping 746.95 points and Nifty reclaiming the 25,000-level. The 50 basis points repo rate cut and 100 basis points CRR reduction boosted investor sentiment, particularly in rate-sensitive sectors like realty, financials, and auto. Market analysts viewed the policy as positive for growth amid challenging global economic conditions, with expectations of sustained economic momentum and potential market recovery.
Summary: The Indian rupee strengthened 11 paise to close at 85.68 against the US dollar after the central bank unexpectedly cut repo rates by 50 basis points. The rate reduction and 100 basis points cash reserve ratio cut aimed to support economic growth. Domestic market surge and volatility characterized the day's trading, with the central bank changing its monetary policy stance to 'neutral' while maintaining GDP growth projection at 6.5 percent.
Summary: The Reserve Bank of India (RBI) reduced repo rate by 50 basis points to 5.50% and cash reserve ratio by 100 basis points across four tranches. Experts viewed this as a strong, timely policy shift aimed at balancing growth with price stability. The move is expected to release Rs 2.5 lakh crore liquidity, ease credit conditions, and spur aggregate demand amid global challenges. The central bank maintained its growth forecast at 6.5% while lowering inflation estimate to 3.7%.
Summary: The Reserve Bank of India cut repo rates by 50 basis points to 5.5% and reduced cash reserve ratio to 3%, triggering a significant stock market rally. The Sensex jumped 746.95 points, closing at 82,188.99, while the Nifty reclaimed the 25,000-level. Rate-sensitive sectors like realty, banking, and auto stocks surged, reflecting optimism about the central bank's pro-growth monetary policy stance. The RBI also lowered its inflation projection for the year.
Summary: A military conflict between India and Pakistan following a terror attack in Pahalgam resulted in armed operations by both countries. The RBI Governor stated the conflict had minimal economic impact, with temporary disruptions like airport closures and regional price fluctuations. Air passenger traffic decreased briefly, but supply chains remained largely unaffected. The Governor emphasized no significant long-term economic consequences emerged from the confrontation.
Summary: The central bank reduced policy rates by 50 basis points, bringing the repo rate to 5.5%, the lowest in three years. The Governor indicated very limited space for further rate cuts, projecting growth at 6.5% and inflation at 3.7%. The monetary policy stance shifted to "neutral" from "accommodative". A significant Cash Reserve Ratio cut of 100 basis points will unlock 2.5 lakh crore rupees of liquidity by December, potentially boosting credit flow to productive sectors.
Summary: The national central bank reduced its policy rate by 50 basis points to support economic growth, cutting the benchmark rate to 5.5%. The rupee appreciated 13 paise to 85.66 against the US dollar. The Reserve Bank also reduced Cash Reserve Ratio by 1%, unlocking liquidity worth Rs 2.5 lakh crore for lending. The monetary policy aims to maintain growth momentum and target inflation at 3.7% for the fiscal year, with GDP growth projections maintained at 6.5%.
Summary: The Reserve Bank of India (RBI) cut interest rates by 50 basis points and reduced the cash reserve ratio by 100 basis points to stimulate economic growth. The central bank shifted its monetary policy stance to "neutral" while projecting lower inflation and economic growth. The rate cuts aim to boost domestic consumption and investment amid challenging global economic conditions, with the governor emphasizing the importance of balancing price stability and economic growth.
Summary: The Reserve Bank of India reduced its retail inflation projection to 3.7% for the fiscal year, the lowest in recent years. This projection assumes a normal monsoon and reflects easing global commodity prices. The central bank remains cautious about potential weather-related and tariff-related uncertainties. Inflation expectations are moderating, particularly in rural areas, with expectations of continued commodity price stabilization.
Summary: The Reserve Bank of India announced a significant 1% reduction in Cash Reserve Ratio (CRR), which will unlock Rs 2.5 lakh crore in bank funds by December 2025. The cut will be implemented in four equal 25 basis point tranches, reducing CRR to 3%. This move aims to boost liquidity, reduce bank funding costs, and support economic growth, which recently hit a four-year low of 6.5%. The central bank remains committed to monitoring financial market conditions and taking proactive measures.
Summary: The Reserve Bank of India (RBI) cut repo rate by 50 basis points to 5.5%, the lowest in three years, aiming to boost economic growth. The stock market responded positively, with Sensex jumping 591.94 points and Nifty climbing 205.2 points. Interest-sensitive sectors like realty, auto, and banking saw significant gains. The RBI maintained GDP forecast at 6.5% and lowered inflation projection to 3.7%, supported by expected good monsoon conditions.
Summary: The Reserve Bank Governor highlighted India's robust foreign investment landscape, noting gross FDI inflows increased by 14% to USD 81 billion in 2024-25, despite net FDI moderating to USD 0.4 billion. The rise in fund repatriation is viewed as a sign of market maturity, indicating smooth entry and exit for foreign investors. Foreign portfolio investments dropped to USD 1.7 billion. The current account deficit is expected to remain low, supported by strong services exports and remittance receipts, with foreign exchange reserves at USD 691.5 billion.
Summary: The Reserve Bank of India retained its GDP growth forecast at 6.5% for fiscal year 2026, highlighting the economy's strength, stability, and opportunity amid global uncertainty. The Monetary Policy Committee cut the benchmark policy rate by 50 basis points to 5.5%. The RBI emphasized domestic growth potential, citing strong balance sheets, stability across price, financial, and political fronts, and opportunities in demography, digitalization, and domestic demand.
Summary: The Reserve Bank of India reduced the repo rate by 50 basis points to 5.5%, marking the third consecutive reduction since February 2025. The monetary policy committee aims to support economic growth, which has slowed to 6.5% in the fiscal year. The rate cut provides relief for borrowers and brings the policy rate to a three-year low. The central bank retained the GDP forecast and lowered inflation projections, shifting the monetary stance from accommodative to neutral.
Summary: Financial markets experienced a decline in early trading ahead of the central bank's monetary policy announcement. Benchmark indices dropped due to global market trends and foreign fund outflows. Analysts anticipate a potential interest rate cut and are focused on the central bank's commentary regarding growth and inflation projections. Foreign institutional investors withdrew significant equity investments, contributing to market uncertainty. Global market indicators showed mixed performance, with Asian markets displaying varied trends.
Summary: The Indian rupee traded within a narrow range ahead of the Reserve Bank of India's monetary policy decision. Market participants anticipate a potential interest rate cut and are closely watching the policy outcome. The currency opened at 85.91, experiencing initial volatility, with expectations of trading between 85.50 and 86.25. Foreign institutional investor flows and the RBI's stance are expected to influence the rupee's trajectory.
Summary: Global tariff wars are significantly impacting the hospitality and wedding industries, compelling businesses to adapt their sourcing and planning strategies. The sector is responding by embracing local alternatives, fusion cuisines, and sustainable practices to manage increased import costs. Industry leaders are focusing on innovation, cultural adaptability, and economic resilience to navigate international trade complexities while maintaining luxury experiences.
Summary: Two global economic powers agreed to resume tariff negotiations after a high-level diplomatic call. Trade tensions persist over critical minerals, technology access, and economic competition. Both sides reduced tariff rates to facilitate dialogue, with significant trade imbalance and strategic interests driving discussions. The leaders aim to restart negotiations while maintaining their respective economic objectives, despite ongoing challenges in reaching a comprehensive agreement.
Summary: China maintains export restrictions on rare earth metals, sparking global concerns from the US, EU, and India. The country controls 92% of global rare earth production and argues its export controls are non-discriminatory. These restrictions have impacted manufacturing, particularly in automotive and semiconductor industries, with companies like Suzuki suspending production. The EU and other nations are urging China to lift these export curbs, highlighting potential supply chain disruptions.
Summary: The Monetary Policy Committee reduced the policy repo rate by 50 basis points to 5.50 percent, aiming to support economic growth while maintaining inflation targeting. The decision reflects a softening inflation outlook projected at 3.7 percent for 2025-26, with GDP growth estimated at 6.5 percent. The committee shifted its stance from accommodative to neutral, signaling limited further monetary policy interventions while carefully monitoring global economic developments.
Summary: An investor roundtable in New Delhi highlighted India's foreign direct investment (FDI) transformation. Government officials emphasized India's investor-friendly policies, noting FDI inflows now originate from 112 countries. The event featured over 90 representatives from industrial parks and companies, discussing investment ecosystem, expansion strategies, and reinvestment opportunities. Participants appreciated government reforms and suggested improvements in land, labor, and policy coordination to further attract international investments.
Summary: A high-level meeting between Indian and Italian officials focused on strengthening bilateral economic cooperation. The discussions covered strategic sectors including Industry 4.0, aerospace, energy transition, and sustainable mobility. Both nations agreed to establish joint working groups in automobile and space sectors, explore collaborative opportunities in agriculture, renewable energy, and facilitate professional mobility between countries.
Notifications
GST - States
1.
48/2023-State Tax - dated
5-6-2025
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Delhi SGST
Seeks to bring in force provisions Delhi Goods and Services Tax (Amendment) Act, 2024
Summary: A government notification activates provisions of the Delhi Goods and Services Tax (Amendment) Act, 2024, specifically designating October 1, 2023, as the effective date for implementing the act's provisions. The notification is issued by the Finance Department of the National Capital Territory, exercising statutory powers to bring the legislative amendments into force.
2.
06/2025-State Tax - dated
5-6-2025
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Delhi SGST
Extend the due date for furnishing FORM GSTR-8 for the month of December, 2024
Summary: A government notification extends the deadline for submitting FORM GSTR-8 for December 2024 until January 12, 2025. The extension is issued by the State Tax Commissioner under the Delhi Goods and Services Tax Act, following Council recommendations. The notification applies to e-commerce operators reporting outward supply details for the specified month.
3.
05/2025-State Tax - dated
5-6-2025
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Delhi SGST
Extend the due date for furnishing FORM GSTR-7 for the month of December, 2024
Summary: A government notification extends the deadline for filing FORM GSTR-7 for tax deduction at source for December 2024, moving the submission date to January 12, 2025. The extension is issued by the State Tax Commissioner under the Delhi Goods and Services Tax Act, following council recommendations and statutory provisions.
4.
03/2025-State Tax - dated
5-6-2025
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Delhi SGST
Extend the due date for furnishing FORM GSTR-5 for the month of December, 2024
Summary: A government notification extends the deadline for filing FORM GSTR-5 for non-resident taxable persons for December 2024, shifting the submission date to January 15, 2025. The extension is issued by the State Tax Commissioner under the Delhi Goods and Services Tax Act, following council recommendations.
5.
02/2025-State Tax - dated
5-6-2025
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Delhi SGST
Extend the due date for furnishing FORM GSTR-3B for the month of December, 2024 and the quarter of October to December, 2024
Summary: A government notification extends the due date for filing FORM GSTR-3B for December 2024 and the October-December 2024 quarter. The extension varies by state and union territory, with different deadlines set for registered persons based on their principal place of business, ranging from January 22nd to January 26th, 2025.
6.
52/2023-State Tax - dated
2-6-2025
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Delhi SGST
Delhi Goods and Services Tax (Fourth Amendment) Rules, 2023
Summary: The Delhi Goods and Services Tax (Fourth Amendment) Rules, 2023 introduces several modifications to the existing GST rules. Key changes include redefining service supply valuation for related parties, updating registration forms, modifying cancellation procedures, and adjusting tax collection statement formats. The amendments aim to streamline GST compliance and clarify administrative processes for tax deductors and collectors.
Indian Laws
7.
F. No. IFSCA/GN/2025/003 - dated
11-4-2025
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Indian Law
INTERNATIONAL FINANCIAL SERVICES CENTRES AUTHORITY (CAPITAL MARKET INTERMEDIARIES) REGULATIONS, 2025
Summary: The International Financial Services Centres Authority (Capital Market Intermediaries) Regulations, 2025 establishes a comprehensive regulatory framework for capital market intermediaries operating in International Financial Services Centres in India. The regulations cover registration, obligations, and conduct requirements for various intermediary categories like broker dealers, investment advisers, credit rating agencies, and distributors. Key objectives include protecting investor interests, maintaining market integrity, and providing clear guidelines for different types of capital market intermediaries.
Circulars / Instructions / Orders
SEBI
1.
SEBI/HO/AFD/SEC-3/P/CIR2025/85 - dated
6-6-2025
Extension of timeline of additional liquidation period for VCFs migrating to SEBI (Alternative Investment Funds) Regulations, 2012
Summary: Regulatory body extended the additional liquidation period for Venture Capital Funds migrating to Alternative Investment Funds Regulations from July 19, 2025 to July 19, 2026. The extension aims to facilitate migration and provide more time for funds with expired liquidation periods. The last date for migration application remains July 19, 2025, and all other previous circular provisions remain unchanged.
Customs
2.
Instruction No. 14/2025 - dated
5-6-2025
Implementation of "Agreement" signed between FSSAI, Ministry of Health and Family Welfare, Government of India and Bhutan Food and Drug Authority (BFDA)
Summary: A government circular detailing implementation of an agreement between India's Food Safety and Standards Authority (FSSAI) and Bhutan's Food and Drug Authority. The document updates a list of 117 approved establishments from Bhutan, maintaining previous health certificate formats and authorized signatory lists. Customs authorities are instructed to sensitize officers about the agreement and take necessary implementation actions.
Highlights / Catch Notes
GST
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GST Liability Challenge Rejected: Petitioner Must First Exhaust Administrative Appeal Mechanism Under Section 107
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Judicial Review Mandates Enhanced Communication Protocols for Efficient Legal Proceedings and Transparent Administrative Processes
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Tax Dispute Resolved: Consolidated Show Cause Notice Upheld, Petitioner Granted Right to Challenge Order Under Section 74
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Procedural Fairness Prevails: Rectification Order Quashed for Denying Petitioner's Right to Be Heard and Fundamental Hearing Principles
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Legal Challenge Succeeds: Notice Invalidated Due to Procedural Flaws and Violation of Natural Justice Principles
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Tax Interest Penalty Invalidated: Electronic Cash Ledger Deposit Halts Levy Under Rule 88 B(1) of CGST Rules
Income Tax
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Legal Challenge Overturns Tax Reassessment Due to Insufficient Evidence of Income Concealment Under Section 147
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Duplicate Form 26AS Entries Insufficient to Reopen Tax Assessment, Minimal Discrepancy Invalidates Reassessment Proceedings Under Section 147
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NRI Taxpayer Wins TDS Credit Battle, Secures Retroactive Form 26QB Correction and Potential Refund Calculation
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Capital Gains Dispute: Payments to Third Party Not Considered Direct Income Under Section 48 Tax Provisions
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Cash Loans Penalty Upheld: Seized Documents Confirm Violation of Section 271D Against Assessee
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Property Transfer Case: Additional Amenities Payment Cleared as Legitimate Transaction Under Section 269SS
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Taxpayer's Undisclosed Cash Income Challenged: Section 263 Revision Order Upheld, Requiring Comprehensive Income Source Verification
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Trust's Charitable Purpose Scrutiny Requires Comprehensive Evaluation of Activities, Expenditures, and Donor Contributions for 12A Registration
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Tax Treaty Triumph: DTAA Provisions Favor Assessee in Share Alienation Case, Enabling Capital Loss Carry Forward and Treaty Benefits
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Syngene's Transfer Pricing Battle: Comparables, AMP Expenses, and Margins Scrutinized in Complex Tax Dispute
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Sales Tax Subsidy from Dadra & Nagar Haveli Classified as Revenue Receipt Based on Operational Purpose
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Taxpayer's Challenge Dismissed: Lack of Section 153D Approval and Insufficient Evidence Undermines Income Declaration Appeal
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Tribunal Validates Business Expenses, Rejects Tax Disallowances Across Multiple Taxation Claims Under Section 36(1)(iii)
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Infrastructure Deduction Dispute: Lack of Evidence Triggers Comprehensive Reassessment of 80IA Eligibility Criteria
Customs
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Smuggled Cigarettes Seized: No Valid Import Docs Leads to Confiscation Under Customs Act Section 111(d)
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Customs Seizure Invalidated: Pre-printed Waiver Rejected, Gold Chain Release Ordered Under Section 124
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Unlocking Mobile Phones Does Not Invalidate Duty Drawback Benefits Under Export Regulations
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Customs Broker Wins Appeal: Penalties Overturned Due to Insufficient Evidence Under Sections 112 and 114AA
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Imported AC Component Classification Resolved: Specific Tariff Items Determined Based on Unique Functional Characteristics
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Gold Smuggling Case Dismissed: Lack of Concrete Evidence Leads to Acquittal Under Section 112(b) of Customs Act
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Customs Appeal Succeeds: Export Instrument Validity Challenges Authority's Jurisdiction and Penalties Under Sections 28AAA, 114AA
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Customs Penalty Overturned: Evidence Reveals No Fraudulent Export Documentation Manipulation Under Section 114(iii)
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Legal Challenge Overturned: Procedural Gaps Invalidate Customs Penalty under Sections 114(iii) and 114AA
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Export Duty Challenge Succeeds: Tribunal Overturns Order Due to Jurisdictional Defect and Insufficient Evidence of Misconduct
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Customs Appeal Succeeds: Export License Dispute Resolved, Penalties Quashed Under Jurisdictional Challenge
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Customs Broker Wins Appeal: License Reinstated After Clearing Regulatory Compliance and KYC Documentation Requirements
Corporate Law
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Electronic Filing Revolution: Companies Must Submit Comprehensive E-Forms with Detailed Financial Disclosures and Compliance Statements
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Corporate Compliance Overhaul: New E-Forms Replace MGT-7, MGT-7A, and MGT-15 Under Sections 469(1) and 469(2)
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Corporate Partnership Dispute Dismissed: No Evidence of Mismanagement Under Section 241-242, Shareholding Structure Remains Unchanged
IBC
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Legal Challenge: Insolvency Appeals Rejected Due to Excessive 210-Day Delay Without Credible Justification Under IBC
Law of Competition
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Financial Institution Cleared of Anti-Competitive Practices: Interest Rates, Valuation Claims Dismissed Lacking Substantive Evidence
PMLA
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Accused Must Prove Asset Legitimacy When Proceeds of Crime Are Suspected Under Money Laundering Investigations
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Money Laundering Conspiracy: Senior Manager Convicted for Suspicious Transactions and Illegal Property Sales Through Multiple Bank Accounts
SEBI
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SEBI Introduces Comprehensive ESG Debt Securities Framework to Enhance Transparency and Investor Protection in Sustainable Finance
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SEBI Offers Temporary Relief for Listed Entities on Financial Statement Distribution Under Regulation 58(1)(b)
Service Tax
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Tax Relief Scheme Deadline Extended: COVID-19 Hardships Justify Flexible Interpretation of SVLDRS-3 Time Limits
Central Excise
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Petroleum Product Sales Valuation Dispute Resolved: Rule 4 and Rule 6 Interpretation Leads to Appellant's Victory
Case Laws:
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GST
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2025 (6) TMI 435 SC examined legal challenges to GST notifications and input tax credit denial. The court set aside the impugned order denying IGST credit and directed fresh adjudication, allowing the petitioner an opportunity to be heard. The court deferred to the pending SC proceedings regarding notification validity, ensuring procedural fairness while maintaining judicial restraint on final determination of statutory notification issues.
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2025 (6) TMI 434 Court dismissed writ petition challenging GST liability computation. The HC held that alternative statutory remedy under Section 107 of CGST Act was available and should be pursued. The court found no exceptional circumstances warranting direct judicial intervention, emphasizing that factual disputes regarding turnover and product classification should be resolved through appellate mechanisms. Petitioner was directed to pursue appeal before Commissioner (Appeals).
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2025 (6) TMI 426 HC dismissed petitions by industrial firms challenging GST department's cash seizure during investigation. Court found no immediate grounds to interfere with ongoing departmental proceedings and noted significant delay in challenging the seizure. Firms' legal contentions remain open for adjudication through existing administrative processes, preserving their rights to defend against the action.
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2025 (6) TMI 425 HC dismissed writ petition challenging tax authorities' order regarding Input Tax Credit (ITC) claims. The court held that the petition was not maintainable due to availability of alternate statutory remedy under CGST Act. Allegations of fraudulent ITC require detailed factual adjudication by appellate authorities, not writ jurisdiction. Petitioner directed to pursue appeal mechanism under Section 107 of CGST Act.
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2025 (6) TMI 424 HC dismissed writ petition challenging tax authority's order on Input Tax Credit (ITC). Court held that statutory appeal under Section 107 of CGST Act is the appropriate remedy. Petitioner alleged fraudulent ITC availment, but HC found no exceptional circumstances to invoke writ jurisdiction. The court directed the petitioner to pursue appellate remedy and refrained from interfering with the consolidated show cause notice covering multiple financial years.
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2025 (6) TMI 423 HC addressed critical procedural issues in GST litigation, focusing on effective communication and efficient case management. The court mandated GST Department to provide proof of notice service, directed deployment of litigation officers for prompt case resolution, and established Standard Operating Procedures (SOPs) for streamlining writ petition processes. Key outcomes include creating dedicated communication channels, ensuring timely instructions to counsels, and improving institutional coordination to expedite GST-related legal proceedings.
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2025 (6) TMI 422 HC in tax dispute case involving media company upheld tax department's show cause notices for multiple financial years. Court found procedural compliance with natural justice principles and directed department to clarify tax demand details. Petitioner permitted to pursue appellate remedy after pre-deposit, with opportunity to raise substantive arguments. Petitions disposed of with specific procedural directions.
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2025 (6) TMI 421 Delhi HC analyzed the legal requirements for rectification under Section 161 of DGST Act, 2017. The Court found that rejecting a rectification application without providing a hearing violates principles of natural justice, particularly when the rectification adversely affects the applicant. The impugned order was set aside, directing the authority to provide the petitioner an opportunity to be heard and reconsider the rectification application in accordance with statutory mandates.
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2025 (6) TMI 420 HC analyzed a GST tax case involving procedural challenges to a show cause notice and demand order. The court set aside the impugned order due to lack of personal hearing and procedural irregularities. While deferring the substantive question of notification validity to the SC, the HC granted the petitioner an opportunity to file a reply and receive a personal hearing, emphasizing principles of natural justice and procedural fairness.
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2025 (6) TMI 419 GST Case Law Summary:HC ruled on interest liability for delayed GSTR 3B returns where tax was timely deposited in Electronic Cash Ledger. The Court held that interest should not accrue when tax amounts are credited on or before the due date, despite late return filing. Rule 88B(1) was interpreted to mean that technical delays in return submission do not justify continued interest charges. The HC quashed the interest levy while preserving the respondent's right to pursue other potential penalties, effectively providing relief to the taxpayer based on statutory interpretation and procedural compliance.
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Income Tax
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2025 (6) TMI 418 SC partially dismissed the petition challenging a HC order. Despite counsel's arguments, the court condoned delay but refused to intervene in the original High Court decision. The petition was ultimately rejected, with all associated applications being disposed of by the bench.
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2025 (6) TMI 417 The SC addressed two key issues regarding Section 10AA deduction under the Income Tax Act. The court ruled that delayed filing of Form 56F is a procedural lapse and does not invalidate the deduction claim. The filing of Form 56F was deemed directory, not mandatory, allowing the assessee to claim the deduction despite late submission of the audit report. The court emphasized substantive compliance over strict procedural adherence.
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2025 (6) TMI 416 SC analyzed the tax treatment of club life membership fees, determining they constitute capital receipts. The court distinguished between one-time entrance fees (capital) and ongoing monthly subscriptions (revenue). Based on precedent from RWITC, the court held that non-refundable membership fees paid to acquire club rights are capital receipts not subject to income tax. The tribunal's previous revenue classification was overturned, with the appeals allowed in favor of the appellant club.
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2025 (6) TMI 415 The SC upheld the ITAT's decision invalidating a tax reassessment order under Section 147. The court found the Assessing Officer's reasons for reopening the assessment were vague, unsubstantiated, and based on unverified investigation materials. The reopening beyond four years was deemed improper as the assessee had fully disclosed relevant facts during the original assessment. The appeal by the Revenue was consequently dismissed.
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2025 (6) TMI 414 The SC upheld the ITAT's decision that the AO lacked jurisdiction to reopen the assessment due to limitation period expiry. The court deferred the question of retrospective applicability of the 2012 amendment to Section 149 to a larger bench, noting conflicting judicial interpretations about extending reassessment proceedings from 6 to 16 years. The appeal was directed to be heard with connected matters raising similar legal issues.
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2025 (6) TMI 413 The HC ruled that the Assessing Officer lacked jurisdiction under Section 153A of the Income Tax Act to make additions in the absence of incriminating material during search operations. The court affirmed that without specific evidence found during the search, the AO cannot reassess or make fresh additions. The assessment order was declared invalid, and the Revenue's appeal was dismissed, upholding the Tribunal's original decision.
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2025 (6) TMI 412 SC upheld ITAT's decision quashing reassessment proceedings under Section 147 of Income Tax Act. The court found that duplicate entries in Form 26AS and minimal income discrepancy did not constitute tangible material to justify reopening an assessment. The ruling emphasized that mere suspicion or erroneous documents cannot trigger reassessment, reinforcing taxpayer protection against arbitrary income tax proceedings.
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2025 (6) TMI 411 HC ruled that the Assessing Officer (AO) improperly withdrew a clean assessment order without legal basis. The court found the AO's actions procedurally incorrect, particularly regarding TDS credit for an NRI. Despite the deductor using an incorrect form, the court mandated full TDS credit since the tax was correctly deposited. Penalty proceedings were dropped, and the Revenue was directed to rectify the TDS record and compute any refund due to the petitioner.
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2025 (6) TMI 410 AT examined the validity of revision orders under Section 263 of Income Tax Act for two assessment years. The key issues involved determining whether amounts paid to a confirming party constitute consideration for capital gains and if the Assessing Officer's original orders were erroneous. The AT ultimately quashed the revision orders, finding no justification for reopening the assessments, as the payments did not accrue to the assessee and the prior reassessment was comprehensive. The appeals by the assessee were allowed.
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2025 (6) TMI 409 The SC examined the validity of reopening an income tax assessment under section 147. The court found the reopening valid, based on tangible material indicating income escapement. However, the court rejected the AO's arbitrary profit estimation of 9.29%, accepting the assessee's audit report profit rate of 1.74%. The appeal was partly allowed, with the excessive profit addition set aside while maintaining the assessment's reopening.
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2025 (6) TMI 408 The SC/Tribunal addressed multiple tax-related issues involving procedural compliance and income estimation. The key outcome was setting aside the CIT(A)'s order and remanding the case for re-adjudication, primarily due to non-compliance with Rule 46A regarding additional evidence admission. The Tribunal upheld income estimation under Section 44AD at 8% of gross receipts, condoned the 54-day appeal delay, and directed proper procedural review of TCS/TDS credits and cash deposit quantum.
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2025 (6) TMI 407 Tribunal upheld penalty under section 271D of Income Tax Act for accepting cash loans exceeding Rs. 20,000 without account payee instruments. Evidence from seized documents and third-party statements confirmed loan transactions. The court rejected the argument that penalty required foolproof evidence, finding documentary proof and unchallenged statements sufficient to establish violation of section 269SS. The Revenue's appeal was allowed, reinstating the original penalty.
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2025 (6) TMI 406 The Tribunal addressed two key issues: (1) the date of business establishment and (2) the allowability of business expenditure. It held that the company set up its business on 11/08/2006, with readiness to function being the critical factor, not actual revenue generation. The Tribunal allowed expenditures incurred after business setup as legitimate business expenses, rejecting the Revenue's arguments about investment classification. The appeal by the Revenue was dismissed, affirming the CIT(A)'s original order.
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2025 (6) TMI 405 The SC Tribunal addressed tax assessment issues during demonetization, focusing on unexplained cash deposits and income estimation. The Tribunal partially allowed the appeal for AY 2017-18, directing uniform treatment of bank deposits at 8% profit rate under section 44AD. For AY 2018-19, the Tribunal upheld the original assessment. The key ruling emphasized the assessee's burden to explain cash deposits and the need for consistent, fair assessment procedures.
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2025 (6) TMI 404 Tribunal examined the validity of a consolidated approval under section 153D of the Income Tax Act. It found the approval mechanically granted without individual assessment of each year and assessee invalid. The Tribunal held that such approval lacks judicial scrutiny, rendering subsequent assessment orders void. Relying on precedents, it quashed the assessments and dismissed the Revenue's appeal, emphasizing the mandatory requirement of individualized approval.
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2025 (6) TMI 403 Legal Case Summary:SC allowed an appeal by a charitable trust challenging the denial of tax exemption under section 11 of Income Tax Act. The key ruling centered on the procedural requirement of Form 10B, holding that a minimal one-day delay does not disqualify the exemption. The Court emphasized that procedural technicalities should not defeat substantive statutory benefits, particularly when the audit report was filed before the income tax return. The tax demand was set aside, and the exemption claim was directed to be allowed.
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2025 (6) TMI 402 Tribunal allowed appeal challenging tax reassessment for AY 2011-12. Key findings: (i) reassessment under section 147 was invalid due to lack of substantive evidence; (ii) additions based on property valuation were unsupported; (iii) section 56(2)(viib) was not retrospectively applicable; (iv) principles of natural justice were violated. The case was remanded to Assessing Officer for fresh examination, providing the assessee a fair opportunity to present her case.
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2025 (6) TMI 401 The SC examined the jurisdictional scope of CIT(A)'s power to set aside an assessment order under Section 251(1)(a). The court held that the CIT(A) exceeded its authority by setting aside an assessment under Section 143(3) r.w.s 144C(3), as the proviso to Section 251(1)(a) applies only to Section 144 assessments. The order was quashed, and the matter was remanded for fresh adjudication with procedural fairness.
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2025 (6) TMI 400 SC/Tribunal examined a case involving alleged cash receipt violation under Income Tax Act sections 269SS and 271D. The tribunal found no substantive evidence proving cash receipt beyond sale consideration. The additional amounts for optional amenities were deemed separate from property transfer consideration. Consequently, the tribunal deleted the penalty, ruling that the Assessing Officer failed to establish a clear violation of statutory provisions with corroborative evidence.
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2025 (6) TMI 399 ITAT Chandigarh allowed appeal for registration under section 12AB for a statutory pharmacy regulatory authority. Despite generating 29.96% to 43.43% surpluses, the Tribunal held that surplus from statutory functions does not constitute commercial activity. Relying on SC precedent, the Tribunal emphasized that public service authorities performing essential regulatory roles are exempt from commercial classification. Registration was granted.
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Customs
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2025 (6) TMI 433 The SC examined a case involving customs proceedings and locus standi. The Court held that a complainant who is not a party to original proceedings lacks standing to appeal before CESTAT. The petitioner's complaint did not specify relevant Customs Act provisions, and the order did not adversely affect their legal rights. The Court dismissed the writ petition, suggesting alternative legal remedies like criminal complaint or civil suit.
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2025 (6) TMI 432 In this customs smuggling case, the HC upheld the seizure of foreign origin cigarettes. The court found the Panchnama valid, the appellant's confessional statement voluntary, and the goods smuggled due to non-compliance with packaging regulations. The appeal was dismissed, confirming confiscation and penalties under the Customs Act. The court emphasized that the burden of proving lawful import rests with the appellant, and minor procedural discrepancies do not invalidate the seizure.
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2025 (6) TMI 381 HC ruled that Customs Department's detention and confiscation of jewellery without issuing show cause notice (SCN) and personal hearing violated legal procedural requirements. The pre-printed waiver signed by the traveler was deemed invalid. While acknowledging the traveler's non-declaration of goods, the court set aside the confiscation order due to procedural irregularities. The court imposed the original penalty of Rs. 1,00,000 and directed release of jewellery upon payment of penalty and storage charges within four weeks.
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2025 (6) TMI 380 SC held that Customs Department's detention and confiscation of jewellery without proper show cause notice (SCN) and personal hearing violated Section 124 of Customs Act, 1962. Pre-printed waivers signed by traveler cannot substitute statutory requirements of natural justice. Court ordered release of detained jewellery upon payment of penalty and storage charges, directing Customs to discontinue practice of obtaining blanket waivers and strictly follow legal procedural safeguards.
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2025 (6) TMI 379 HC ruled that pre-printed SCN waivers violate natural justice principles. Gold bangles worn during pilgrimage were classified as personal effects exempt from customs duty. The Customs Department's confiscation order was set aside due to procedural irregularities. Court ordered release of bangles, upheld partial penalty, and directed 50% warehousing charges payment, balancing procedural fairness with regulatory compliance.
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2025 (6) TMI 378 HC ruled that Customs Department's detention and confiscation of gold chain and iPhones was unlawful. The pre-printed waiver form signed by the traveler was deemed invalid, violating natural justice principles under Section 124 of Customs Act. The court directed release of gold chain upon payment of fine and ordered reconsideration of iPhone confiscation, emphasizing the need for proper show cause notice and personal hearing in customs proceedings.
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2025 (6) TMI 377 HC ruled that Customs Department's pre-printed waiver of show cause notice (SCN) and personal hearing is invalid under Section 124 of Customs Act, 1962. The detention of gold chain without proper SCN and hearing was deemed illegal. Court directed release of detained jewelry upon appraisement, re-export undertaking, and payment of charges. The department was instructed to discontinue standard waiver practices and strictly follow natural justice principles in future proceedings.
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2025 (6) TMI 376 SC ruled that unlocking/activating mobile phones does not constitute "taken into use" under Duty Drawback Rules. The court quashed CBIC clarifications denying drawback benefits, holding that unlocking is merely a configuration step that enhances product usability. Exporters are entitled to drawback benefits, with claims to be processed within three months without interest penalties. The judgment supports mobile phone export competitiveness by interpreting statutory provisions favorably for exporters.
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2025 (6) TMI 375 Tribunal allowed appeal by customs broker, setting aside penalties under Customs Act sections 112 and 114AA. The order found no evidence of deliberate mis-declaration or connivance, emphasized procedural deficiencies in penalty imposition, and ruled that mere acceptance of IEC documents without knowledge of wrongdoing does not constitute a violation. Penalties were deemed unsustainable due to lack of independent findings and improper evidentiary basis.
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2025 (6) TMI 374 Tribunal ruled on classification of imported goods under Customs Tariff Act, 1975. Held that goods like blower, filter, water valve, control panel, and thermostat should be classified under their specific CTIs in Chapters 84 and 85, not as generic air conditioner parts. Rejected department's classification under CTI 8415 90 00, affirming Note 2(a) applies when goods are themselves classifiable under specific headings. Quashed differential customs duty demand.
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2025 (6) TMI 373 The Tribunal examined a customs smuggling case involving gold bars. The court found insufficient evidence to prove the appellant's involvement in smuggling, ruling that uncorroborated statements from intercepted persons cannot substantiate penalty proceedings. The Tribunal set aside the Rs.30,00,000 penalty under Section 112(b) of the Customs Act, 1962, emphasizing the need for corroborative evidence beyond mere statements of co-accused.
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2025 (6) TMI 372 The SC addressed jurisdiction under the Customs Act regarding export incentive instruments. The court ruled that customs authorities cannot invoke section 28AAA without prior DGFT cancellation proceedings. The statement from a freight forwarder was deemed inadmissible due to procedural non-compliance. The court set aside penalties against the exporter, emphasizing the need for proper evidence and procedural adherence in customs enforcement actions.
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2025 (6) TMI 371 Tribunal analyzed penalty imposition under Customs Act for freight forwarding agency's involvement in export goods diversion. Initially found liable for assisting goods' redirection from Panama to Jebel Ali, violating shipping bill declarations. However, subsequent appellate order setting aside goods confiscation negated penalty basis. Tribunal ultimately set aside penalty, emphasizing statutory link between confiscation and penalty under section 114(iii), thereby allowing appellant's appeal.
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2025 (6) TMI 370 SC examined the admissibility of statements under section 108 of the Customs Act without following section 138B's procedural safeguards. The Court found that statements recorded during investigation cannot be relied upon as evidence without examining witnesses and allowing cross-examination. Consequently, penalties imposed on a freight forwarding company director for fraudulently amending shipping bills were set aside due to procedural non-compliance, despite evidence suggesting involvement in fraudulent customs activities.
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2025 (6) TMI 369 The HC/Tribunal examined jurisdictional and evidentiary issues in a customs export case. The court ruled that customs authorities cannot invoke section 28AAA without prior DGFT cancellation proceedings. Inadmissible statements under section 108 were rejected, and penalties were set aside due to lack of substantive evidence. The exporter's FOB export status was partially recognized, with responsibility to prove Focus Market destination maintained.
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2025 (6) TMI 368 Legal Case Summary:The SC/Tribunal addressed jurisdictional and evidentiary issues in a customs export benefit case. The key ruling invalidated penalties and confiscation due to procedural defects: (1) Customs lacked jurisdiction to challenge an export benefit instrument without prior DGFT cancellation, (2) a witness statement was inadmissible due to non-compliance with statutory examination procedures, and (3) the exporter's FOB sale terms mitigated direct liability. The appeal was allowed, setting aside the original order of confiscation and penalties.
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2025 (6) TMI 367 The Tribunal examined a case involving Customs Brokers (CB) accused of violating Customs Brokers Licensing Regulations (CBLR), 2018. After detailed analysis, the Tribunal rejected all allegations of non-compliance with Regulations 10(d), 10(e), and 10(n). The Tribunal found insufficient evidence of intentional misconduct, emphasized the limited professional responsibilities of CBs, and set aside the order revoking their license. The appeal was allowed, absolving the CBs of alleged regulatory violations.
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Corporate Laws
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2025 (6) TMI 366 Tribunal resolved a corporate dispute involving shareholding and mediation. The court rejected the petition to divide shares held by a partnership firm, finding such division impermissible under the Companies Act. Allegations of mismanagement were deemed unsubstantiated. The Tribunal directed parties to mediation, preserving their right to judicial remedies if mediation fails, with costs to be shared equally.
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Insolvency & Bankruptcy
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2025 (6) TMI 431 NCLT appeal concerning sale of Corporate Debtor under Insolvency and Bankruptcy Code, 2016. SC allowed appeal, directing modification of 02.09.2024 order to clarify sale under Regulation 32(f) as sale of business as a going concern. Court found NCLT's rejection of clarification application incorrect, accepting Stakeholders Consultation Committee's resolution and emphasizing tribunal's inherent powers to modify orders without prejudicing parties' rights.
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2025 (6) TMI 430 The NCLAT dismissed company appeals with delays of 210 and 213 days in refiling. The Tribunal found the reasons for delay (misplaced documents and difficulty obtaining copies) insufficient to constitute "sufficient cause" under Rule 26. Despite multiple counsels, the Appellant failed to demonstrate bona fide effort or credible explanation for the prolonged delay. The appeals were consequently rejected, emphasizing strict adherence to IBC timelines and procedural diligence.
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Law of Competition
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2025 (6) TMI 365 Legal Case Summary:The Competition Commission examined allegations against a public sector bank regarding anti-competitive practices. The Commission found no evidence of violations under Sections 3 and 4 of the Competition Act. Key findings included: the bank did not hold a dominant market position, interest rate changes were contractually agreed, and SARFAESI proceedings were legally conducted. The Commission rejected all claims of anti-competitive conduct, concluding the matter was essentially a contractual dispute outside competition law's scope. No interim relief was granted.
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PMLA
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2025 (6) TMI 364 The SC affirmed a provisional attachment order of properties worth Rs. 1,42,83,000/- under the Prevention of Corruption Act. The Tribunal rejected the appellant's challenge, finding the attachment valid based on the charge-sheet's quantification of pecuniary loss. Withholding amounts in arbitration and security deposits did not negate the need for property attachment. The appeal was dismissed, upholding the attachment as a protective measure pending final adjudication of criminal proceedings.
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2025 (6) TMI 363 The Appellate Tribunal under PMLA upheld the Enforcement Directorate's attachment of the appellant's movable properties. The court found the attachment justified based on the police charge-sheet, which provided prima facie evidence of a scheduled offence. The ED's investigation powers were deemed limited to tracing proceeds of crime, not re-investigating the predicate offence. The appellant failed to prove the lawful source of assets, and the attachment was confirmed without violating natural justice principles.
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2025 (6) TMI 362 The SC upheld the PMLA Tribunal's order confirming provisional attachment of properties acquired through illegal gratification. The appellant, a senior manager at MECON Ltd., received Rs. 1.65 crores from two firms in exchange for tender manipulations. Despite claiming legitimate sale transactions, the court found no credible evidence to rebut the presumption of proceeds of crime. The properties, including an apartment and car, were determined to be proceeds of money laundering, and the appeal was dismissed.
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Service Tax
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2025 (6) TMI 361 HC resolved a tax dispute under the Sabka Vishwas (Legacy Dispute Resolution) Scheme, 2019. The court found the statutory time limits directory, not mandatory, and granted the petitioner relief from COVID-19 related payment delays. HC directed tax authorities to recalculate the tax liability, accept late payments, and issue a discharge certificate, emphasizing the scheme's objective of resolving legacy disputes equitably.
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2025 (6) TMI 360 The Appellate Tribunal (AT) addressed service tax demands on port, cargo handling, and GTA services. The Tribunal set aside the port services tax demand, upheld cargo and GTA service tax payments already made by the appellant, and nullified penalties. The court strongly criticized revenue authorities for passing orders during pending appeal, emphasizing judicial discipline and the principle of order finality. The decision reinforced procedural integrity and prevented harassment through repeated proceedings.
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2025 (6) TMI 359 The Tribunal partially allowed the appeal, ruling that the appellant was not liable for Service Tax from 2008-09 to 30.06.2012 due to lack of RBI recognition. Post 1.7.2012, Service Tax was applicable on fees charged, except interest. Penalties were quashed, but interest liability was upheld. The case clarified definitions of banking services, taxable fees, and penalty impositions under Service Tax regulations.
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Central Excise
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2025 (6) TMI 429 Tribunal addressed key legal issues regarding interest on duty refunds under Central Excise Act. Ruled that interest is payable only if refund is delayed beyond three months from the date of formal application under Section 11B, not from the date of initial deposit. Relied on judicial precedents to distinguish between deposits under protest and pre-deposits during appeals. Dismissed appellant's claim for interest from deposit date, upholding the Commissioner's order limiting interest entitlement.
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2025 (6) TMI 428 The SC examined a central excise duty case involving alleged clandestine removal of iron and steel scrap. The Court ruled in favor of the appellant, holding that discrepancies between internal Annual Statistics Report and statutory RT-12 returns cannot constitute evidence of clandestine removal. The Department failed to provide positive, tangible proof of unauthorized goods removal. Consequently, the SC set aside the duty demand, interest, and penalty, emphasizing the need for concrete evidence beyond statistical differences.
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2025 (6) TMI 427 The CESTAT allowed an appeal concerning Central Excise duty exemption for by-products like waxes, gums, and fatty acids arising during vegetable oil manufacturing. Relying on precedent from the Ricela Health Foods Ltd. case, the Tribunal held these by-products qualify as 'waste' under Notification No. 89/1995-CE, regardless of market value, and are therefore exempt from duty. The revenue's demand for duty and penalties was set aside.
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2025 (6) TMI 358 CESTAT Chandigarh allowed an appeal by a co-noticee against penalty imposition, finding that since the main noticee settled the dispute under SVLDR Scheme and paid taxes, no penalty could be levied on co-noticees. Relying on precedent cases, the Tribunal set aside the Commissioner (Appeals)'s order and quashed the penalty, emphasizing the principle of settlement's comprehensive effect.
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2025 (6) TMI 357 The SC/Tribunal ruled that VAT remission retained by the manufacturer must be included in the assessable value for excise duty. While upholding the duty demand for the normal limitation period with interest, the court set aside extended period demands due to lack of suppression. Penalties were quashed, and the Supreme Court judgment was applied retrospectively, establishing that unremitted VAT constitutes additional consideration for goods sold.
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2025 (6) TMI 356 SC ruled on excise duty valuation for petroleum products among Oil Marketing Companies (OMCs). The court found that the Memorandum of Understanding (MoU) price was not the sole consideration for sale due to supply continuity arrangements. The tribunal rejected the revenue's demand for differential duty, holding that Rule 4 was inapplicable, Rule 6 was not originally invoked, and no quantifiable additional consideration existed. The appeal was allowed, with no interest or penalties sustained.
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2025 (6) TMI 355 The Tribunal ruled in favor of the appellants, dismissing confiscation of cash and penalties related to alleged clandestine goods clearance. Based on a prior ruling in a connected case, the Tribunal found insufficient evidence to substantiate claims of illegal goods removal. The cash seized during investigation must be returned, and no penalties can be imposed on the appellants due to lack of conclusive proof of wrongdoing.
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Indian Laws
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2025 (6) TMI 354 Court analyzed promotion eligibility for CCIT vacancy in 2008-09, focusing on Annual Confidential Reports (ACRs) benchmarks. SC precedents emphasized that ACR entries must be communicated to employees. Despite meeting eligibility criteria, respondent was found unsuitable due to ACR ratings. Court rejected claims of discrimination, holding that promotion is a consideration, not a right. The HC allowed the writ petition, quashing the Tribunal's order and confirming departmental promotion committee's decision.
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