Tax Management India. Com
Law and Practice  :  Digital eBook
Research is most exciting & rewarding
  TMI - Tax Management India. Com
Follow us:
  Facebook   Twitter   Linkedin   Telegram
Tax Updates - TMI e-Newsletters

Home e-Newsletters Index Year 2025 March Day 18 - Tuesday

TMI e-Newsletters FAQ
You need to Subscribe a package.

Newsletter: Where Service Meets Reader Approval.

TMI Tax Updates - e-Newsletter
March 18, 2025

Case Laws in this Newsletter:

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



TMI Short Notes

1. Capital Gains: Exemption against Residential Property Sales and Reinvestment Incentives in Clause 82 of the Income Tax Bill, 2025 vs. Section 54 of the Income Tax Act, 1961

Bill:

Summary: Clause 82 of the Income Tax Bill, 2025, outlines provisions for deferring or exempting capital gains tax from the sale of residential properties when proceeds are reinvested in new residential properties. It aims to stimulate the real estate sector and provide tax relief to individuals and Hindu Undivided Families (HUFs). Key features include a structured approach for managing unutilized gains, flexibility in reinvestment options, and caps on tax benefits to target middle-income taxpayers. Compared to Section 54 of the Income Tax Act, 1961, Clause 82 offers enhanced clarity and modernized provisions, reflecting evolving economic policies.

2. Capital Gains Taxation: The Role of Advance Payments in Clause 81 of the Income Tax Bill, 2025 vs. Section 51 of the Income-tax Act, 1961

Bill:

Summary: The Income Tax Bill, 2025, introduces Clause 81, refining the treatment of advance payments in capital gains taxation. It mandates that advance money retained during asset transfer negotiations must be deducted from the acquisition cost unless already included in total income, thus preventing double deductions. This aligns with Section 51 of the Income-tax Act, 1961, which also addresses advance money deductions. Differences include Clause 81's reference to section 92(2)(h) and streamlined language. Both provisions aim to prevent tax avoidance and ensure fair capital gains computation, necessitating careful interpretation to avoid disputes.

3. Valuation - transfer of capital assets when the actual consideration is not ascertainable: Clause 80 of the Income Tax Bill, 2025 vs. Section 50D of the Income-tax Act, 1961

Bill:

Summary: Clause 80 of the Income Tax Bill, 2025, and Section 50D of the Income-tax Act, 1961, address the valuation of capital assets when actual consideration is unascertainable. Both provisions mandate using the fair market value (FMV) as the full value of consideration for tax purposes, ensuring capital gains reflect true economic value and preventing tax evasion. While both aim for consistency in tax assessments, practical challenges in determining FMV, especially for unique assets, may lead to disputes. Clause 80 updates the framework to reflect current economic conditions, aligning with international best practices.

4. Full value of consideration for transfer of share other than quoted share for computation of Capital Gain - Clause 79 of the Income Tax Bill, 2025 vs Section 50CA of the Income-tax Act, 1961

Bill:

Summary: Clause 79 of the Income Tax Bill, 2025, and Section 50CA of the Income-tax Act, 1961, both focus on ensuring that capital gains from the transfer of unquoted shares are calculated based on their fair market value, preventing tax evasion through undervaluation. Clause 79 mandates that if the transaction value is less than the fair market value, the latter is deemed the consideration for tax purposes, with exemptions for certain entities. Section 50CA mirrors these provisions, providing consistency and flexibility in tax legislation. Both aim to align taxable amounts with economic realities while accommodating genuine cases through exemptions.


Articles

1. GST on Resident Welfare Associations

   By: K Balasubramanian

Summary: The applicability of GST on Resident Welfare Associations (RWA) is contentious, particularly regarding maintenance charges exceeding INR 7,500 per month per member. The exemption notification specifies GST is applicable only on amounts exceeding this threshold. However, authorities and a CBIC Circular suggest GST applies to the entire amount once it exceeds INR 7,500. The Madras High Court ruled that only the excess amount attracts GST, but this decision is under appeal. Consequently, RWAs are divided in their GST payment approach, with some paying on the entire amount and others only on the excess. The issue remains unresolved, with potential for retrospective amendments.

2. Got paid in INR for your Exports?

   By: Pradeep Reddy

Summary: An export business owner faced a challenge when a payment for a shipment arrived in Indian Rupees (INR) instead of US dollars, risking eligibility for export incentives. However, certain conditions allow export proceeds to be realized in INR while still qualifying for incentives. These include routing payments through specific non-resident bank accounts, using special banking arrangements, or exporting to countries like Iran, Nepal, and Bhutan under specific guidelines. To maintain compliance, it is crucial to ensure realization in foreign currency and utilize the outlined options to protect export benefits.

3. GST Update- Karnataka High Court Quashes Single SCN Issued for Multiple Years

   By: Pradeep Reddy

Summary: The Karnataka High Court quashed a show cause notice issued under Section 73 of the CGST Act, 2017, which improperly consolidated multiple tax periods from 2017-18 to 2020-21 into a single notice. The petitioner argued that each tax year should be assessed individually according to the CGST Act's three-year limitation. The court agreed, citing legal precedents that require separate assessments for each tax year. Consequently, the consolidated notice was invalidated, but the respondent is permitted to issue individual notices for each tax period in compliance with the law.

4. Our bank account is attached by the GST officer. How do I manage my operations now

   By: Pradeep Reddy

Summary: A bank account attachment by a GST officer can disrupt business operations. Provisional attachments are meant to protect revenue during audits or investigations and expire after one year unless renewed. Taxpayers can file objections and request releases using Form GST DRC-22. Issues arise due to procedural delays, lack of timely updates, and absence of prior hearings. Taxpayers often require court intervention to address these inefficiencies. To manage such situations, file objections, engage constructively, and monitor deadlines to ensure compliance with the one-year limit for attachments. Sharing experiences can help others navigate similar challenges.

5. Importance of ROC Filing for Private Limited Companies

   By: Ishita Ramani

Summary: ROC Filing is crucial for private limited companies in India to ensure legal compliance, avoid penalties, and maintain a positive standing with regulatory authorities. Timely filing of annual returns and financial statements helps avoid fines and potential legal actions, thus preserving the company's credibility and reputation. Compliance facilitates smooth business operations, enhances the likelihood of securing loans and investments, and supports mergers and acquisitions. Key filings include Annual Returns (MGT-7), Financial Statements (AOC-4), and DIR-3 KYC for directors. Prioritizing ROC compliance is essential for legal stability, economic health, and fostering business growth.

6. HIGH COURTS DO NOT SUBSTITUTE THEMSELVES AS DECISION MAKING AUTHORITY WHILE EXERCISING JUDICAL REVIEW

   By: DR.MARIAPPAN GOVINDARAJAN

Summary: The article discusses the Supreme Court's decision in a case involving the insolvency resolution process under the Insolvency and Bankruptcy Code, 2016. A financial creditor initiated a corporate insolvency resolution process against a corporate debtor and its guarantor. The High Court intervened, halting proceedings based on the claim that the guarantor's liability was waived. The Supreme Court ruled that High Courts should not interfere in insolvency proceedings before the Adjudicating Authority's decision, as the Resolution Professional's report is only recommendatory. The Supreme Court set aside the High Court's order, allowing the proceedings to continue.

7. Transfer Pricing and Special Valuation Branch – Two Separate Laws for a Common Goal

   By: YAGAY andSUN

Summary: The article discusses the distinct yet interconnected roles of Transfer Pricing (TP) and the Special Valuation Branch (SVB) in regulating intercompany transactions involving related parties. TP ensures that transactions are priced at arm's length to prevent profit shifting and tax evasion, while SVB focuses on the accurate valuation of imported goods for customs duties. Both systems scrutinize related-party transactions to avoid manipulation of prices for tax or duty benefits. Companies must navigate compliance with both income tax and customs regulations, often facing challenges like documentation demands, potential double scrutiny, and the risk of double taxation. Understanding these complexities is crucial for multinational enterprises engaged in cross-border trade.

8. FSSAI and Reporting on Expired Food - FSSAI  Advisory dtd. 16 Dec, 2024

   By: YAGAY andSUN

Summary: The Food Safety and Standards Authority of India (FSSAI) has mandated that food businesses, including manufacturers, importers, and retailers, submit quarterly reports on expired food products to enhance accountability and transparency. These reports must detail the quantity, nature, and traceability of expired items, ensuring they are not reintroduced into the market. The rule aims to prevent malpractices such as re-labelling and repackaging of expired goods, thereby protecting consumer health. Non-compliance could lead to penalties, including fines and revocation of food licenses. Businesses must maintain accurate records and submit data through the FoSCoS system once activated.

9. Do Industrial Climate Investments Pay Off?

   By: YAGAY andSUN

Summary: Investing in industrial climate solutions can yield significant benefits, contingent on factors like investment type, industry, and economic conditions. Key advantages include cost savings through energy efficiency and waste reduction, regulatory compliance, enhanced brand value, access to green financing, innovation, and government incentives. Companies like Siemens and Unilever have successfully leveraged these investments for market leadership and brand loyalty. However, challenges include high initial costs, technological uncertainty, and market volatility. Success requires strategic planning that balances immediate costs with long-term gains, aligning with regulatory and market trends for sustainable practices.

10. Forest Produce in India: A Game Changer for Locals

   By: YAGAY andSUN

Summary: India's rich forest produce, including timber and non-timber forest products (NTFPs) like honey, tendu leaves, and bamboo, significantly impacts local communities' livelihoods. These resources provide economic empowerment, especially for indigenous people, through sustainable harvesting, which ensures long-term resource availability. Forest produce promotes livelihood diversification, reduces agricultural dependency, and generates employment in value-added products like handicrafts and herbal goods. Women play a crucial role in this sector, gaining economic independence. Government and NGO initiatives support these communities, enhancing market access and sustainability. Challenges include resource over-exploitation, market access, policy implementation, and climate change impacts.

11. SWOT Analysis on the concept of making India a Green Superpower.

   By: YAGAY andSUN

Summary: The SWOT analysis on making India a Green Superpower identifies significant strengths, including its vast renewable energy resources, strong government commitment, and a burgeoning green tech industry. However, challenges such as reliance on fossil fuels, implementation hurdles, and financial constraints persist. Opportunities exist in creating green jobs, leveraging international green finance, and technological innovation. Threats include climate change impacts, resistance to change, and inadequate policy coordination. To succeed, India must enhance sustainable infrastructure, ensure cohesive policies, and drive innovation. Successfully navigating these factors could position India as a leader in sustainable development, offering economic, environmental, and social benefits.

12. How Indian can make India a GREEN Super Power?

   By: YAGAY andSUN

Summary: To transform into a Green Superpower, India must leverage its population and economic growth by adopting renewable energy, enhancing energy efficiency, and promoting sustainable transportation and agriculture. Key actions include expanding solar and wind energy, encouraging electric vehicle use, and implementing water conservation techniques. Reforestation, biodiversity conservation, and waste management are crucial, alongside enforcing environmental regulations and fostering green innovation. Public awareness and corporate responsibility are essential for cultural shifts toward sustainability. Green finance and private sector involvement can drive investment in eco-friendly projects. A comprehensive strategy involving all societal sectors is vital for reducing India's carbon footprint and leading global sustainability efforts.

13. Junk Food: Is It Really Food?[Ironically it is not Food]

   By: YAGAY andSUN

Summary: Junk food, prevalent in today's fast-paced society, is often marketed as convenient and delicious, but it lacks the nutritional value of real food. These processed items, laden with artificial flavors, colors, preservatives, and unhealthy fats, fail to nourish the body and can lead to health issues like obesity and diabetes. The addictive nature of junk food, especially among children, fosters unhealthy eating habits and long-term health risks. Emphasizing home-cooked meals can provide essential nutrients and foster healthier eating habits. True food should nourish and sustain, serving as medicine for the body, mind, and soul.

14. Multi Coloured Fryums/Papad Containing Prohibited Dyes/Synthetic Food Colors being sold throughout Indian Markets.

   By: YAGAY andSUN

Summary: Multi-colored fryums in Indian markets contain prohibited synthetic dyes, posing significant health risks, especially to children. These dyes, such as Sudan I-IV, are banned in many countries due to their carcinogenic and toxic effects. Despite regulations by the Food Safety and Standards Authority of India (FSSAI), these harmful dyes persist due to inadequate enforcement and awareness. Suggested actions include FSSAI conducting surprise inspections, raising awareness, imposing stringent penalties, enhancing product testing, and encouraging consumer vigilance. Ensuring food safety and regulatory compliance is crucial to protect public health, particularly for vulnerable populations like children.


News

1. Advisory for Biometric-Based Aadhaar Authentication and Document Verification for GST Registration Applicants of Uttar Pradesh

Summary: The GST registration process in Uttar Pradesh now includes biometric-based Aadhaar authentication and document verification. Rule 8 of the CGST Rules, 2017, has been amended to facilitate this. Applicants will receive an email with a link for either OTP-based authentication or to book an appointment at a GST Suvidha Kendra (GSK) for biometric verification. From March 18, 2025, applicants can book appointments. They must carry specific documents, including Aadhaar and PAN cards, to the GSK. The process ensures that authentication and verification are completed within the permissible period, after which ARNs will be generated.

2. Delhi govt's revenue collections below projections, except for GST and VAT

Summary: The Delhi government's revenue collections for the fiscal year are falling short of budget projections, with the exception of GST and VAT. As of February 2025, GST and VAT collections reached Rs 40,009 crore. However, motor vehicle taxes and excise revenue, at Rs 2,810 crore and Rs 5,516 crore respectively, are below expectations. The budget for 2024-25 projected total tax revenue of Rs 58,750 crore, including Rs 41,000 crore from GST and VAT. Motor vehicle taxes and excise revenue are 22% and 14% below projections, respectively, indicating sluggish performance in these areas.

3. Expenditure on salaries, pensions of employees to be highest in Himachal budget 2025-26

Summary: Expenditure on salaries and pensions will dominate the Himachal Pradesh budget for 2025-26, with Rs 25 out of every Rs 100 allocated to salaries and Rs 20 to pensions. Developmental works will receive Rs 24, while interest and debt repayments are set at Rs 12 and Rs 10, respectively. Grants to autonomous institutions will account for Rs 9. The total revenue expenditure is estimated at Rs 48,733.04 crore, with a fiscal deficit projected at Rs 10,337.97 crore. The state's own tax revenue is anticipated to be Rs 16,101.1 crore, including significant contributions from state GST and excise duty.

4. Visionless budget of directionless govt: Former Himachal CM Thakur

Summary: Leader of Opposition criticized Himachal Pradesh's 2025-26 budget as lacking vision and direction, stating it offered little for the state. The budget, focused on tourism, rural development, and green energy, was Rs 58,514 crore, with a minimal increase from the previous year. Capital expenditure was notably low, and key health schemes were omitted. The opposition accused the government of financial mismanagement and neglecting issues like unemployment, women's and farmers' welfare, and law and order. They claimed the budget repackaged old schemes and failed to address the state's developmental needs.

5. MEA constituted 'gender budget cell': Govt to parliamentary panel

Summary: The government informed a parliamentary panel about the establishment of a "gender budget cell" within the Ministry of External Affairs (MEA) to evaluate gender-related contributions of its projects. The Committee on External Affairs recommended creating a comprehensive monitoring framework for development projects. The report also noted the need for faster analysis of gender-related data and a concrete action plan for gender budgeting. The panel commended the MEA for increasing female representation in the Indian Foreign Service and other initiatives promoting gender equality. It also highlighted the need for improved budget forecasting and robust monitoring mechanisms for development projects.

6. Haryana budget proposes Rs 5,000 cr for Lado Lakshmi Yojana, authority to check drug abuse

Summary: Haryana's 2025-26 budget, presented by the Chief Minister, allocates Rs 5,000 crore for the 'Lado Lakshmi Yojana' and establishes an authority to combat drug abuse. The budget, totaling Rs 2.05 lakh crore, introduces no new taxes and includes the creation of a "Department of Future" to enhance state capabilities. It proposes Rs 2,100 monthly assistance for women, a Rs 2,000 crore startup fund, and Rs 474 crore for an AI mission. Additional initiatives include support for farmers, new horticulture policies, and sports development programs, with a focus on international employment and addressing illegal migration routes.

7. Par panel for hike in MEA budget, says current allocation not reflective of India's growing stature

Summary: A parliamentary panel has criticized the reduction in the Ministry of External Affairs' (MEA) budget for 2025-26, highlighting that the current allocation of Rs 20,516.61 crores is insufficient given India's expanding global role. The budget represents a 7.39% decrease from the previous year and an 18.83% decrease from revised estimates. The panel recommends a 20% increase to support India's foreign policy priorities and international stature. Key areas needing urgent attention include strengthening diplomatic cadre, enhancing embassy operations, and acquiring diplomatic real estate. The panel urges the government to prioritize these areas to bolster India's diplomatic infrastructure and influence.

8. Haryana CM Saini presents Rs 2.05 lakh cr budget with aim to make state 'future capable'

Summary: Haryana's Chief Minister presented a Rs 2.05 lakh crore budget for 2025-26, aiming to make the state "future capable." The budget includes a 13.70% increase from the previous year and plans for a new "Department of Future." Initiatives include the Haryana AI Mission, supported by the World Bank, with hubs in Gurugram and Panchkula, and a Rs 2,000 crore 'fund of funds' for startups. A Rs 10 crore Substance Abuse Authority and Rs 5,000 crore for the 'Lado Lakshmi Yojana' are proposed. Additionally, a Horticulture Research Centre in Palwal and a flower market in Gurugram are planned.

9. CM Sukhu presents Rs 58,514-cr Budget with focus on tourism, rural development, green energy

Summary: Chief Minister Sukhu presented a Rs 58,514 crore budget for 2025-26, emphasizing tourism, rural development, and green energy. Despite financial challenges due to reduced revenue deficit grants and halted GST compensation, the budget aims to promote eco-tourism, develop tea estates, and allocate 78 new eco-tourism sites. The debt liability has reached Rs 1,04,729 crore, with most loans used for previous debt repayments. Initiatives include increased pensions, higher milk support prices, and natural farming targets. A Special Task Force will address drug abuse, and 500 electric buses will be purchased. Various schemes for farmers, women, and children were also announced.

10. Himachal Budget: Milk prices increased by Rs 6/litre, eco-tourism in focus

Summary: Himachal Pradesh's Chief Minister presented the 2025-26 budget, focusing on promoting religious and eco-tourism and exploring lesser-known destinations. The budget addresses financial challenges due to reduced revenue grants and halted GST compensation. A Rs 6 per litre increase in milk prices was announced, along with a target to involve one lakh farmers in natural farming. A Spice Park is planned in Hamirpur, and daily wages under the Mahatma Gandhi National Rural Employment Guarantee Act will rise by Rs 20. A Special Task Force will combat drug abuse, and 500 electric buses will be purchased. Separate directorates for schools and colleges will be established.

11. Rail budget no record breaking but failed budget; oppn slams Rail ministry in LS

Summary: The opposition criticized the Railways ministry in the Lok Sabha, arguing that the budget for 2025-26 was not "record breaking" but rather a failure due to poor management. They highlighted the declining financial health of the Railways and accused the government of creating misleading narratives about development. Concerns were raised about the safety measures and the imposition of cancellation charges on tickets. Additionally, disparities in passenger services between high-end and ordinary trains were noted. Criticism also targeted the lack of budget increases for train facilities and the need for improved station amenities and train punctuality.

12. Delhi's budget to focus on raising living standards, improving basic infra: CM Gupta

Summary: Delhi Chief Minister Rekha Gupta announced that the upcoming budget will prioritize raising living standards, enhancing basic infrastructure, and promoting development across all societal sections. Following discussions with BJP MLAs, the budget aims to address critical areas such as water supply, sewerage, and road improvements. Special attention will be given to underdeveloped areas, particularly slum clusters. The BJP, having recently regained power in Delhi, emphasizes a "Viksit Delhi" (developed Delhi) approach, incorporating public feedback gathered through various channels. Gupta assured that the budget would reflect the city's needs and aspirations, aiming for holistic development and prosperity.

13. 'Ru' symbol in TN budget to show our determination for language policy: Stalin

Summary: The Tamil Nadu government replaced the Indian rupee symbol with the Tamil letter 'Ru' in the 2025-26 budget to emphasize its commitment to language policy, according to the Chief Minister. This move sparked controversy, particularly with the BJP, which objected to the change. The Chief Minister criticized the Union Finance Minister for focusing on this issue while ignoring Tamil Nadu's requests for funds. The ruling party accuses the central government of imposing Hindi through the National Education Policy, while the state remains committed to its two-language policy. The government aims to make Tamil Nadu a USD 1 trillion economy by 2030.

14. Delhi CM receives feedback from farmers ahead of budget session, assures them of all help

Summary: Delhi's Chief Minister met with farmers to gather feedback before the upcoming budget session, promising to address their concerns. Farmers requested the implementation of a land pooling policy, subsidies on fertilizers and seeds, and measures to prevent crop inundation. They also sought permission to use diesel tractors for up to 20 years. The Chief Minister criticized previous administrations for neglecting farmers and pledged that the current government would resolve their issues. The meeting also covered topics like village pond beautification, rural electricity, and access to government schemes. The budget session is set to begin on March 25.

15. Delhi CM receives feedback from farmers ahead of budget session, assures assistance

Summary: Delhi's Chief Minister engaged with farmers to gather feedback ahead of the upcoming budget session. Farmers highlighted issues such as the need for a land pooling policy, subsidies on fertilizers and seeds, and solutions for crop inundation from overflowing drains. They also requested an extension on the use of diesel tractors from 10 to 20 years. The Chief Minister assured that the BJP government would address these concerns, contrasting with previous administrations. The budget session is set to begin on March 25, where the government will present the Viksit Delhi budget for 2025-26.

16. T'gana CM acknowledges debt burden, says state borrowed Rs 4,000 cr RBI loan to pay salaries

Summary: Telangana's Chief Minister has acknowledged the state's financial struggles, citing a debt burden that necessitated a Rs 4,000 crore loan from the Reserve Bank of India to pay government employee salaries. He appealed for employee cooperation regarding Dearness Allowance payments amidst the cash crunch. The CM criticized the previous administration for the state's financial woes, likening it to a severe ailment. With monthly revenues between Rs 18,000 crore and Rs 18,500 crore, the government allocates Rs 6,500 crore each for salaries and debt servicing, leaving limited funds for welfare schemes and development projects. The government manages these demands through staggered payments.

17. Net direct tax kitty rises 13 pc to Rs 21.26 lakh crore till Mar 16

Summary: Net direct tax collection in India increased by 13.13% to over Rs 21.26 lakh crore for the fiscal year up to March 16, 2025, driven by a significant rise in advance tax payments. Advance tax collections totaled Rs 10.44 lakh crore, a 14.62% increase from the previous year. Corporate advance tax rose by 12.54% to Rs 7.57 lakh crore, while non-corporate collections grew by 20.47% to Rs 2.87 lakh crore. Net non-corporate taxes increased by 17% to approximately Rs 11.01 lakh crore, and securities transaction tax collections surged by 56% to Rs 53,095 crore. Refunds issued amounted to over Rs 4.60 lakh crore.

18. Efforts to make ‘Viksit Bharat’ by 2047

Summary: The Ministry of Statistics and Programme Implementation (MoSPI) in India is implementing various initiatives to achieve 'Viksit Bharat' by 2047. These efforts focus on enhancing the National Statistical System to provide timely and quality economic data for informed decision-making. Key measures include conducting nationwide socio-economic surveys, utilizing digital platforms for data collection to reduce time lags, and releasing macroeconomic indicators like GDP and CPI promptly. The eSankhyiki portal was launched for efficient data management, and financial aid is provided to States/UTs to strengthen their statistical systems. This information was shared by a government official in the Rajya Sabha.

19. Government e Marketplace Surpasses ₹5 Lakh Crore GMV Before FY 2024-25 Year-End

Summary: The Government e Marketplace (GeM) has surpassed 5 lakh crore in Gross Merchandise Value (GMV) ahead of the fiscal year 2024-25 end, marking rapid expansion in public procurement. Recent policy reforms have enhanced market accessibility, benefiting Micro and Small Enterprises (MSEs), startups, and women-led businesses. GeM has onboarded over 22 lakh sellers, including 29,000 startups and 1.8 lakh women-led enterprises. Technological advancements like cloud migration and AI-powered search have improved procurement efficiency. GeM's efforts have resulted in public savings of over 1,15,000 crore, reinforcing its role in India's economic progress and digital procurement.

20. Govt says 28,818 insolvency applications involving Rs 10 lakh cr resolved under IBC

Summary: The government reported that out of 40,943 applications filed under the Insolvency and Bankruptcy Code (IBC), 28,818 involving Rs 10 lakh crore were resolved before admission. The IBC, introduced in 2016, improved India's global insolvency resolution rank significantly. As of December 31, 2024, 12,351 cases were pending under the IBC. The government is implementing measures like e-courts to expedite case resolution. The World Bank's new B-Ready project, replacing the Doing Business rankings, will assess India's business environment, with a report expected in September 2026. The IBC has been crucial in enhancing India's business climate.

21. CCI Organises 10th Edition of National Conference on Economics of Competition Law

Summary: The Competition Commission of India (CCI) held its 10th National Conference on Economics of Competition Law in New Delhi, featuring a keynote address by a Minister of State who praised CCI's efforts in curbing the abusive conduct of dominant enterprises. The Minister emphasized the importance of fair competition, particularly for MSMEs, and advocated for a collaborative regulatory approach. CCI Chairperson highlighted the need for dynamic regulation in response to technological advancements like AI. The conference included discussions on digital markets and mergers, and concluded with a session on trust-based market correction. The event underscored competition law's role in fostering a fair economic environment.

22. India - New Zealand announce launch of FTA negotiations

Summary: India and New Zealand have announced the commencement of negotiations for a comprehensive Free Trade Agreement (FTA) to strengthen their economic and trade ties. The decision was made during a bilateral meeting involving the Prime Ministers of both countries, alongside their respective Ministers for Commerce and Trade. This initiative aims to enhance supply chain integration and improve market access, reflecting a shared commitment to deepening economic cooperation and fostering mutual prosperity. The negotiations are expected to build on the longstanding partnership between the two nations, which is based on shared democratic values and strong economic complementarities.

23. Ram Temple Trust pays Rs 400 crore in taxes over past five years

Summary: The Shri Ram Janmabhoomi Teerth Kshetra Trust has paid approximately Rs 400 crore in taxes over five years, driven by a rise in religious tourism, according to the Trust Secretary. From February 2020 to February 2025, Rs 270 crore was paid as GST, with the rest under other tax categories. Ayodhya has seen a tenfold increase in visitors, becoming a significant religious tourism hub and creating local employment. Last year, 16 crore people visited Ayodhya, with 5 crore visiting the Ram temple. The trust's finances are audited by the Comptroller and Auditor General.

24. PM hails RBI for being selected for Digital Transformation Award

Summary: The Prime Minister praised the Reserve Bank of India (RBI) for receiving the Digital Transformation Award 2025 from Central Banking, London. The award acknowledges RBI's innovative initiatives, including the Pravaah and Sarthi systems, developed by its in-house team. These initiatives have significantly reduced paper-based submissions, transforming both internal and external processes. The Prime Minister emphasized that such digital innovations enhance India's financial ecosystem and empower many lives, highlighting the importance of innovation and efficiency in governance.


Circulars / Instructions / Orders

Income Tax

1. 04/2025 - dated 17-3-2025

Frequently Asked Questions (FAQs) on Guidelines for Compounding of Offences under the Income-Tax Act, 1961 dated 17.10.2024

Summary: The Central Board of Direct Taxes (CBDT) issued revised guidelines for the compounding of offences under the Income-Tax Act, 1961, effective from October 17, 2024. These guidelines simplify previous rules by eliminating offence categorization, removing application limits, and allowing fresh applications upon defect correction. All offences are now compoundable without time limits for application filing. Applications can be filed with jurisdictional authorities, and fees are adjustable against compounding charges. Compounding is possible even post-prosecution initiation, with charges based on application sequence. Co-accused can apply separately or jointly, and guidelines accommodate cases involving insolvency proceedings.

GST - States

2. TRADE CIRCULAR No. 05/2025 - dated 13-3-2025

Clarifying the issues regarding implementation of provisions of sub-section (5) and sub-section (6) in section 16 of WBGST Act, 2017

Summary: The circular addresses the implementation of sub-sections (5) and (6) of section 16 of the West Bengal Goods and Services Tax (WBGST) Act, 2017, which retrospectively extend the time limit for availing input tax credit in specific cases. It clarifies procedures for taxpayers and authorities when dealing with demands related to incorrect input tax credit claims under sub-section (4). The circular outlines actions for various scenarios, including cases without demand notices, those with issued orders, and those under appeal. It also specifies procedures for rectifying orders and highlights that no refunds will be granted for tax paid or credit reversed due to contravention of sub-section (4), except in specific appeal situations.

3. TRADE CIRCULAR No. 06/2025 - dated 13-3-2025

Clarification of various doubts related to Section 128A of the WBGST Act, 2017

Summary: The West Bengal Directorate of Commercial Taxes issued a circular clarifying Section 128A of the WBGST Act, 2017, which allows for the waiver of interest or penalties related to demands under Section 73 for the fiscal years 2017-18, 2018-19, and 2019-20. The circular outlines the procedures and conditions for taxpayers to avail themselves of this waiver, including the filing of applications in specific forms, payment requirements, and the processing of applications by tax officers. It also addresses various issues related to the waiver, such as eligibility criteria, payment methods, and the applicability of the waiver to different tax components.

4. Trade Circular No. 12T of 2025 - dated 4-3-2025

Clarification regarding GST rates & classification (goods) based on the recommendations of the GST Council in its 55th meeting held on 21st December, 2024, at Jaisalmer

Summary: The circular clarifies GST rates and classifications based on the GST Council's 55th meeting recommendations. It specifies that pepper of the genus Piper attracts a 5% GST, while dried pepper supplied by agriculturists is exempt from GST. Raisins supplied by agriculturists are also GST-exempt. Ready-to-eat popcorn mixed with salt and spices attracts 5% GST if unpackaged and 12% if packaged, with caramel popcorn attracting 18% GST. Autoclaved aerated concrete blocks with over 50% fly ash content fall under HS 6815 with a 12% GST. Amendments to the compensation cess for utility vehicles apply from July 26, 2023.

5. Trade Circular No. 11T of 2025 - dated 3-3-2025

Clarification on applicability of late fee for delay in furnishing of FORM GSTR-9C

Summary: The circular clarifies the applicability of late fees for delays in submitting FORM GSTR-9C under the Maharashtra SGST Act, 2017, aligning with a similar circular from the Central Board of Indirect Taxes and Customs. It states that late fees apply if both FORM GSTR-9 and FORM GSTR-9C are not submitted together by the due date, as required for registered persons with turnovers exceeding specified limits. The late fee is calculated from the due date until the complete annual return is furnished. A waiver on excess late fees for financial years up to 2022-23 is granted if FORM GSTR-9C is submitted by March 31, 2025.

6. Trade Circular No. 10T of 2025 - dated 28-2-2025

Clarification regarding applicability of GST on certain services

Summary: The circular clarifies the applicability of GST on various services, aligning with recommendations from the 55th GST Council meeting. Penal charges by Regulated Entities for non-compliance with loan terms are not subject to GST. Payment Aggregators are exempt from GST for transactions up to two thousand rupees. GST on research and development services by government entities and skilling services by National Skill Development Corporation-approved partners is regularized. Facility management services to the Municipal Corporation of Delhi are taxable. Delhi Development Authority is not a local authority under GST law. GST on renting commercial property by unregistered persons to registered persons is regularized. Ancillary services by electricity utilities and services by Goethe Institute/Max Mueller Bhawans are also regularized.

Customs

7. PUBLIC NOTICE NO. / 2025 - dated 14-3-2025

Intimation of suspension of Custodianship of M/s. Sudharsan Logistics Pvt. Ltd., CFS, Chennai under the provisions of Regulation 11(2) of HCCAR, 2009 – Reg.

Summary: The custodianship of a logistics company in Chennai has been suspended under Regulation 11(2) of HCCAR, 2009, effective March 14, 2025. This suspension follows the initial appointment of the company as a custodian for import and export goods in 2015. To minimize disruption, existing goods with the custodian can still be cleared for export and import during office hours, but no new goods will be accepted unless related documentation was filed before the suspension order. The suspension will remain in effect until further notice.

8. Public Notice. 05/2025 - dated 28-1-2025

Realisation of Sale proceeds on Exports - Submission of proof by Exporters -(BRC Compliance Drive from 29.01.2025 to 28.02.2025 for the submission of proof towards realisation of export sale proceeds)

Summary: The Customs Department in Chennai has announced a compliance drive from January 29 to February 28, 2025, requiring exporters to submit proof of realization of export sale proceeds. Exporters must provide electronic Bank Realisation Certificates (e-BRCs) for shipping bills listed on the Chennai Customs website. Failure to realize export proceeds may result in the recovery of drawback amounts with interest. Exporters can verify and update realization details through the ICEGATE Portal. The BRC Section will prioritize case closures for valid submissions, and any implementation issues should be reported to the Deputy Commissioner, BRC Cell, Chennai.


Highlights / Catch Notes

    GST

  • GST Jurisdictional Boundaries Redefined for Seven Key Locations Under Section 3 of CGST Act

    Notifications : The Central Government amended Notification No. 02/2017-Central Tax regarding jurisdictional boundaries of CGST officers. The amendments, exercised under section 3 read with section 5 of CGST Act and section 3 of IGST Act, redefine territorial jurisdictions for seven key locations: Alwar, Chennai Outer, Jaipur, Jodhpur, Madurai, Tiruchirapalli, and Udaipur. The notification specifically restructures district allocations within these jurisdictions, particularly affecting administrative boundaries in Rajasthan and Tamil Nadu. For Madurai, the amendment also clarifies jurisdiction over territorial waters and underlying seabed. The changes represent a significant administrative reorganization of GST enforcement territories.

  • Assessment Order Set Aside Due to Missing Document Identification Number (DIN) Requirement Under CBIC Circular No.128/47/2019-GST

    Case-Laws - HC : The HC set aside the assessment order due to the absence of a Document Identification Number (DIN), ruling it non-est and invalid. Following precedents established in Pradeep Goyal v. Union of India and M/s. Cluster Enterprises v. The Deputy Assistant Commissioner, along with CBIC Circular No.128/47/2019-GST, the court determined that proceedings lacking a DIN number cannot be sustained. The petition was disposed of with the impugned proceedings dated 18.07.2023 set aside, granting liberty to the respondent to conduct fresh assessment after proper notice and assigning a DIN number to the order.

  • Bus Services Paid Directly by Students Not Exempt from 5% GST Under SAC 9964 Transport Classification

    Case-Laws - AAR : The AAR determined that transportation services provided to students and staff could not be considered as services to the educational institution since the applicant received payment directly from students rather than the school, as evidenced by the Profit and Loss Account showing only "Bus Fees Receipt" from students with no financial transactions with the school. Consequently, these services are classified as "Transport of passenger by any motor vehicle" under SAC 9964, attracting 5% GST without ITC per Notification No. 11/2017 as amended. The exemption under Serial No. 66 of Notification No. 12/2017-Central Tax (Rate) is inapplicable as it requires services be provided to an educational institution, not directly to students.

  • Minor Clerical Error in GSTN Documentation Cannot Be Grounds for Denying Input Tax Credit Under Section 16(2)(aa)

    Case-Laws - HC : HC held that a minor clerical error in GST documentation - specifically, the mention of petitioner's Bombay office GSTN instead of Delhi office GSTN on invoices - cannot be grounds for denying Input Tax Credit under Section 16(2)(aa) of CGST Act, 2017. The court noted that petitioner's name was correctly mentioned on invoices and no other entity had claimed the ITC on these purchases. The impugned Order dated June 28, 2024 was set aside, allowing petitioner to avail the ITC, as denying credit for such a minor error would cause substantial financial loss. Petition partly allowed.

  • GST Appeal Dismissed: 95-Day Delay Beyond Statutory Limit of One Month Cannot Be Condoned Under Section 107(4)

    Case-Laws - HC : The HC dismissed a petition challenging the Appellate Authority's refusal to condone a 95-day delay in filing a GST appeal. Under Section 107(1) of GST law, appeals must be filed within three months from communication of the order, with Section 107(4) allowing the Authority to condone delays only up to an additional one month. The Court affirmed that the Limitation Act does not apply to GST appeals, citing Chintels India Limited v. Bhayana Builders Private Limited where the SC held delays beyond 120 days cannot be condoned. Since the petitioner failed to disclose when the order was communicated, limitation was counted from the order date (21.07.2023), and neither the Appellate Authority nor the HC had statutory power to condone delays exceeding one month.

  • Tax Intimation Under Section 73(5) of GST Act Not Challengeable Before Show Cause Notice or Final Order

    Case-Laws - HC : The HC rejected the writ petition challenging an intimation of tax issued under Section 73(5) of the KGST/CGST Act, 2017 as premature. The Court noted that the intimation merely ascertained tax with options for the petitioner to either pay with interest or file submissions. The document itself provided an opportunity for the petitioner to respond, and no show cause notice under Section 73(1) or final order under Section 73(9) had yet been issued. The Court concluded that judicial intervention was unwarranted at this preliminary stage of the tax assessment process.

  • GST Registration Cancellation Cannot Be Applied Retrospectively Without Prior Notice and Proper Reasoning

    Case-Laws - HC : The HC modified the GST registration cancellation order, ruling that it would take effect from the date of the Show Cause Notice (12 February 2024) rather than retrospectively from 7 February 2019. The Court found the retrospective cancellation invalid due to absence of supporting reasons in the original SCN and failure to provide prior notice to the petitioner, which violated principles of natural justice. The Court determined these procedural defects alone were sufficient grounds to grant relief, consequently quashing the retrospective aspect of the impugned order while allowing the cancellation to stand from the SCN date.

  • Income Tax

  • Burden of Proof on Taxpayer: Seized Cash Properly Assessed as Unaccounted Money Under Section 69A and 115BBE

    Case-Laws - HC : The HC held that the seized cash was properly assessed as unaccounted money under section 69A read with section 115BBE. Despite the appellant's declaration during search operations that the money represented commission income, the court found this mere assertion insufficient without satisfactory explanation supported by material evidence. The appellants' failure to respond to show cause notices demonstrated indifference. The court emphasized that even when an explanation is provided, it must satisfy the Assessing Officer as required by section 69A. Following Shashi Garg, the court affirmed that the burden to explain cash sources rests with the assessee, and this burden was not discharged. The appeal was dismissed.

  • Tax Authorities Cannot Reject DTVSV Application When Matter Is Under Appeal, Must Process Discharge Certificate

    Case-Laws - HC : The HC set aside the rejection of the petitioner's application under the Direct Tax Vivad Se Vishwas Scheme, 2024. The Court held that since the tax liability was under dispute before the Appellate Authority, the petitioner qualified for the scheme regardless of potential jurisdictional issues. The Court found it improper for respondents to reject the application on jurisdictional grounds that should be determined by the Appellate Authority. The HC directed the first respondent to accept the petitioner's application filed on October 4, 2024, and issue a discharge certificate in accordance with DTVSV Scheme provisions.

  • ITAT Rejects Revenue's Claims of Sales Suppression and Excessive Commission Without Proper Evidence or Investigation

    Case-Laws - AT : The ITAT dismissed revenue appeals concerning alleged suppression of sales and inflated commission expenditure. Regarding sales suppression, the Tribunal found the addition unjustified as the AO failed to establish how electronic sales could be deposited into separate bank accounts, never provided IATA data to the assessee for verification, and misunderstood Agency Debit Memo as income rather than expense. The AO relied solely on an appraisal report without independent investigation or providing computation methods. Concerning commission expenditure, the ITAT upheld CIT(A)'s deletion of additions, noting the AO arbitrarily set 10% as reasonable without justification, failed to challenge payment genuineness, and disregarded business prudence from the assessee's perspective as established in Dhanrajgiri Raja Narasingirji.

  • Diamond Trade Promotion Body Qualifies for Tax Exemption Under Sections 11 and 12 as Activities Not Commercial

    Case-Laws - AT : The ITAT ruled that the appellant organization qualifies for exemption under sections 11 and 12 of the Income Tax Act, finding that the proviso to section 2(15) does not apply. The Tribunal determined that the appellant's activities do not constitute trade, commerce, or business, nor does it render services related to such activities. The organization merely provides a platform facilitating import/export of diamonds and precious stones, functioning as a trade promotion body. The ITAT noted that the appellant's receipts represent cost reimbursements without excessive markup. Since no material evidence demonstrated the appellant was engaged in commercial activities or charging fees exceeding costs incurred, the Tribunal allowed the appeal, confirming the organization's charitable status and eligibility for tax exemption.

  • Customs

  • CBIC Revises Tariff Values for Imported Oils, Precious Metals, and Areca Nuts Under Section 14(2) of Customs Act

    Notifications : The CBIC, exercising powers under Section 14(2) of the Customs Act, 1962, has revised tariff values for specified imported goods through Notification No. 13/2025-Customs (N.T.) dated March 13, 2025. The notification amends the earlier Notification No. 36/2001-Customs (N.T.) by substituting new tariff values in three tables covering: edible oils (including Crude Palm Oil at $1169/MT and Crude Soya bean Oil at $1098/MT); precious metals (gold at $941 per 10 grams and silver at $1067 per kilogram); and areca nuts at $8140/MT (unchanged). The revised tariff values, which determine the customs duty calculation basis for these commodities, take effect from March 14, 2025.

  • Amendment of Shipping Bill for Drawback Claims on Re-exported Goods Permissible Under Section 149 of Customs Act

    Case-Laws - HC : The HC held that amendment of a shipping bill from "Free Shipping Bill" to "Shipping Bill for Claim for Drawback" regarding re-export of goods under Section 149 of the Customs Act was permissible. Since the imported Black Pepper was never allowed outside customs area and had already been tested per Food Safety and Standards Act requirements, re-examination before re-export would have been merely procedural. Procedural irregularities under the Re-export of Imported Goods Rules cannot prejudice the petitioner's rights, as procedures are "handmaids of justice." The court directed respondents to refund the amount within two months, ruling that the petitioner could not be denied substantial benefits where goods were exported without being cleared.

  • Export Obligation Discharge Under Amnesty Scheme Prevents Additional Penalties Under Customs Act Section 112(a)

    Case-Laws - HC : The HC ruled that once the petitioner regularized their export obligation under the Amnesty Scheme by paying the entire duty forgone (Rs. 50,23,802/-) plus interest (Rs. 13,35,689/-) under the EPCG Scheme, and obtained an export obligation discharge certificate, no additional penalties could be imposed. The Court reasoned that payment of the full duty amount with interest effectively meant the petitioner had not availed of the EPCG Scheme benefits, thereby discharging the export obligation. Consequently, the fine imposed under Section 112(a) of the Customs Act in lieu of confiscation under Section 111(o) was held unrecoverable, as the same default could not be subject to multiple penalties once regularized through the Amnesty Scheme. Petition allowed.

  • Gold Chain of UAE Resident Wrongfully Seized While Traveling to India for Wedding Under Baggage Rules, 2016

    Case-Laws - HC : The HC quashed the confiscation order of a gold chain valued at Rs. 1,76,488/- from the petitioner, a UAE resident who was traveling to India for a wedding. The Court determined the petitioner was an "eligible passenger" under the Baggage Rules, 2016, and the gold chain constituted personal effects that should not have been seized. The Court noted that personal jewelry is not liable for confiscation under established precedents. Additionally, procedural violations occurred as no show cause notice was issued and no personal hearing was afforded to the petitioner. The HC ordered that no penalty, redemption fine, or warehousing charges be collected, and any amounts already paid be refunded.

  • Customs' Seizure of Wedding Guest's Gold Chain Overturned Under Baggage Rules 2016 for Non-Resident Travelers

    Case-Laws - HC : The HC ruled that seizure of the petitioner's gold chain by Customs authorities was unjustified. The petitioner, a UAE resident traveling to India for a wedding, was entitled to benefits under the Baggage Rules, 2016 as an eligible non-resident passenger. Photographic evidence confirmed the chain was personal jewelry, which according to established precedent is not subject to confiscation. The court found procedural violations as no show cause notice was issued nor personal hearing afforded, violating principles of natural justice. The adjudication order was quashed, with directions that no penalty, redemption fine, or warehousing charges be collected from the petitioner, and any amounts already paid be refunded.

  • Customs Must Release Detained Gold Ornaments Due to Procedural Violations Including Failure to Issue Timely Show Cause Notice

    Case-Laws - HC : The HC quashed the detention of Petitioner's gold ornaments after finding multiple procedural violations by Customs authorities. The department failed to issue a Show Cause Notice within the mandatory six-month period, did not grant the Petitioner a personal hearing, and neglected to serve the order-in-original despite previous court directives. The court determined these procedural failures constituted sufficient grounds to order unconditional release of the detained goods without requiring the Petitioner to repeatedly seek judicial intervention. The court directed that the gold ornaments be released to the Petitioner with warehouse charges waived. The petition was accordingly disposed of.

  • Customs Broker's License Revocation Overturned: Verification Limited to Document Authenticity, Not Content Accuracy Under Regulation 10(n)

    Case-Laws - AT : The CESTAT ruled in favor of the appellant Customs Broker, setting aside the revocation of license and penalties. The Tribunal clarified that Regulation 10(n) of the Customs Broker Licensing Regulations, 2018 only requires brokers to verify that documents were genuinely issued by government officers, not to investigate their correctness. The Customs Broker fulfilled obligations by verifying the client's IEC and GSTIN through online verification. The Tribunal held that brokers cannot be expected to judge the validity of government-issued certificates or maintain continuous surveillance of clients' addresses. As no evidence showed that any documents were fake or forged, the appellant had not violated Regulation 10(n), and the impugned order was set aside.

  • Indian Laws

  • Director's Resignation After Cheque Issuance Cannot Escape Liability Under Sections 138 and 141 of NI Act

    Case-Laws - HC : The HC affirmed the vicarious liability of the petitioner under Section 138 read with Section 141 of the NI Act for dishonored cheques. As a whole-time director and signatory of the company at the time of issuance, the petitioner's subsequent resignation (one day after issuance) did not absolve liability. Unlike in Kamal Goyal, where resignation preceded cheque issuance, here the petitioner resigned after the cheques were issued. The court found sufficient basis for prosecution given the petitioner's role as director when the cheques were issued and specific averments in the complaint regarding his position. The petition challenging the summoning order was accordingly dismissed.

  • SARFAESI Act: Financial Institution Requires Rs.100 Crore Asset Threshold to Qualify as Secured Creditor

    Case-Laws - HC : The HC determined that the third respondent, with an asset size of Rs.16.30 crores as of March 31, 2024, failed to meet the Rs.100 crores threshold established in the February 24, 2020 Notification. Consequently, the respondent does not qualify as a "financial institution" under Section 2(1)(m)(iv) of the SARFAESI Act, 2002, and therefore cannot be considered a "secured creditor" entitled to invoke Section 14 provisions. Since the respondent lacked standing to file an application with the Chief Metropolitan Magistrate for possession of secured assets, the Court issued a writ of Prohibition, finding that the jurisdictional prerequisite was not satisfied. The application was accordingly disposed of.

  • SEBI

  • Third-Party Information Now Exempt from Trading Window Closure Under Insider Trading Regulations Amendment

    Notifications : SEBI has amended the Prohibition of Insider Trading Regulations, effective ninety days after official publication. The amendments significantly expand the definition of "unpublished price sensitive information" to include sixteen specific corporate events, such as termination of business contracts, auditor resignations, rating changes, fund-raising proposals, forensic audits, regulatory actions, and key license changes. The notification introduces flexibility for information not originating within organizations by allowing entry into structured digital databases within two calendar days of receipt and exempting such external information from trading window closure requirements. These modifications aim to enhance regulatory clarity and provide nuanced compliance guidance for market participants.

  • VAT

  • Charitable Hospital's Medicine Supplies and Canteen Services Exempt from Tax Under MP Commercial Tax Act, 1994

    Case-Laws - HC : The HC ruled that the petitioner, a charitable hospital, is exempt from tax under the Madhya Pradesh Commercial Tax Act, 1994 for medicine supplies and canteen services. The Court distinguished this case from Cochin Port Trust, noting that unlike Kerala's law which includes persons selling goods "whether in the course of business or not," the MP Act only applies to persons "carrying on business." Following precedents from Gujarat and Kerala High Courts, the Court determined that supplying medicines and operating a canteen for patients' attendants were activities incidental to the charitable hospital's non-business operations, not independent business activities. The Court rejected the respondents' argument that profit generation automatically constituted business activity. Petition allowed.

  • Service Tax

  • Amounts Deposited During Investigation Must Be Treated as Service Tax Payment, Not Pre-deposit, Under Section 11B

    Case-Laws - AT : The CESTAT set aside the impugned order and remanded the matter to the Assistant Commissioner, ruling that amounts deposited by the appellant during investigation, which were appropriated toward service tax demand, should be treated as service tax payment rather than pre-deposit. Following the Tribunal's earlier decision setting aside the demand, these amounts became refundable under Section 11B of the Central Excise Act (as applicable to service tax via Section 83 of the Finance Act, 1994). The Tribunal directed that interest should be calculated under Section 11BB rather than Section 35FF, with the relevant date for interest calculation being the date of the Tribunal's order setting aside the demand. No new refund application was required as the appellant's letter already constituted a valid application.

  • Service Tax on One-Time Property Rental Premium Valid: Premium and Recurring Rent Combined for Exemption Threshold Calculation

    Case-Laws - AT : The CESTAT dismissed the appellant's challenge to service tax levied on one-time premium collected for renting immovable property. Following the Allahabad HC decision in Greater Noida Industrial Development Authority case, the Tribunal held that letting immovable property for consideration determined through public offers constitutes a taxable service, not a statutory function or public service. The Tribunal rejected the appellant's argument regarding threshold exemption limits under Notification No. 4/2007-ST, finding that both one-time premium ("salami") and recurring rent are subject to service tax under the renting of immovable property service category, with the exemption limit applying to their combined total.

  • Central Excise

  • Exemption Notification No. 23/2003-CE Must Be Strictly Interpreted; Duty Demand Upheld While Penalties Set Aside

    Case-Laws - AT : The CESTAT upheld the demand for short payment of duty under Section 11A(1) of Central Excise Act, 1944 with interest under Section 11AB, confirming that exemption Notification No. 23/2003-CE must be interpreted strictly per established jurisprudence. The Tribunal determined that the appellant's immediate substantial DTA clearances after establishing an EOU indicated improper intent. However, the Tribunal set aside penalties imposed under Section 11AC read with Rule 25 of Central Excise Rules, 2002 and FTP. Penalties against individual appellants were also set aside, as they were improperly based solely on knowledge rather than specific acts of omission or commission. The appeal was partially allowed, with duty and interest demands sustained but penalties vacated.


Case Laws:

  • GST

  • 2025 (3) TMI 774
  • 2025 (3) TMI 773
  • 2025 (3) TMI 772
  • 2025 (3) TMI 771
  • 2025 (3) TMI 770
  • 2025 (3) TMI 769
  • 2025 (3) TMI 768
  • 2025 (3) TMI 767
  • 2025 (3) TMI 766
  • 2025 (3) TMI 765
  • Income Tax

  • 2025 (3) TMI 764
  • 2025 (3) TMI 763
  • 2025 (3) TMI 762
  • 2025 (3) TMI 761
  • 2025 (3) TMI 760
  • 2025 (3) TMI 759
  • 2025 (3) TMI 758
  • 2025 (3) TMI 757
  • 2025 (3) TMI 756
  • Customs

  • 2025 (3) TMI 755
  • 2025 (3) TMI 754
  • 2025 (3) TMI 753
  • 2025 (3) TMI 752
  • 2025 (3) TMI 751
  • 2025 (3) TMI 750
  • 2025 (3) TMI 749
  • 2025 (3) TMI 748
  • 2025 (3) TMI 747
  • 2025 (3) TMI 746
  • Service Tax

  • 2025 (3) TMI 745
  • 2025 (3) TMI 744
  • 2025 (3) TMI 743
  • 2025 (3) TMI 742
  • Central Excise

  • 2025 (3) TMI 741
  • 2025 (3) TMI 740
  • 2025 (3) TMI 739
  • 2025 (3) TMI 738
  • CST, VAT & Sales Tax

  • 2025 (3) TMI 737
  • Indian Laws

  • 2025 (3) TMI 736
  • 2025 (3) TMI 735
 

Quick Updates:Latest Updates