Power of arrest under GST: arrest permissible where reasons to believe exist; anticipatory bail on summons is generally premature.
Power of arrest under the GST framework is a statutory authority exercisable when the officer has reasons to believe that a cognizable, non bailable offence under section 132 has been committed. A summon under section 70 precedes prosecution, but arrest may follow if the Commissioner forms the requisite belief; taxpayers cannot refuse to appear on summons out of fear of arrest, and anticipatory bail on the mere issuance of a summon is generally premature. (AI Summary)

Consideration under GST: book adjustment qualifies as valid payment, enabling input tax credit subject to statutory conditions.
Input tax credit is admissible where consideration is settled by mutual book adjustment between a manufacturer and outsourced vendors, because the CGST Act's inclusive definition of consideration covers reduction of a debtor's book liability as a form of payment. Such admissibility is subject to compliance with the requirements of Sections 16, 17 and 18 of the CGST Act and the corresponding rules, and where invoicing, accounting and procedural conditions for ITC entitlement are satisfied. (AI Summary)

IBC moratorium limits customs to assessing duty and lodging claims; recovery by sale or confiscation is barred during insolvency.
When a moratorium under the IBC is in force, the IBC prevails over the Customs Act to the extent that customs authorities may only assess or determine the quantum of duty and lodge a claim as operational debt under the IBC; they cannot initiate recovery by sale or confiscation or treat warehoused goods as their assets without an adjudication of abandonment. Notices or sale actions issued during the moratorium initiate barred legal proceedings, while the liquidator has the duty to secure assets and contest excessive assessments, and claims must be dealt with through the IBC distribution mechanism. (AI Summary)

Burden of proof in unexplained cash requires AO to establish an alternate source before invoking the statute.
The assessing officer bears the burden of proof to establish an alternate source before invoking Section 69A for unexplained cash; cogent evidentiary material is required to classify bank deposits as unexplained rather than business receipts. Rejection of declared closing stock or explanations of cash sales/purchases must be specifically justified. Without material showing a distinct undisclosed source, additions under unexplained-money provisions cannot be sustained, while satisfactorily explained excess cash and stock should be treated as business income. (AI Summary)

Customs house agent liability limited: CHA not liable for penalties for incorrect classification when relying on exporter-supplied documents.
A customs house agent who files shipping bills based on exporter-supplied documents and test reports cannot be penalised for incorrect classification when there is no evidence of collusion or overt acts assisting export of restricted goods; classification is complex and falls within customs' remit, so penalties under the Customs Act are not warranted absent proof the CHA knowingly abetted or failed to perform distinct due diligence. (AI Summary)

Supply of educational services: university services to affiliated colleges constitute supply but are exempt from GST.
The AAR found that the university's activities-inspections, admissions, registration, examinations, valuation and issuance of marks-constitute supply under Section 7 of the CGST Act but, as a statutory public university functioning as a Governmental authority providing educational services, those supplies are exempt from GST under SI Nos. 4 and 5 of Notification No. 12/2017. (AI Summary)

Nonresident formation of Delaware LLC requires a registered agent and state filing, plus separate IRS EIN application.
Non-US residents may form a Delaware LLC without physical presence but must appoint a Registered Agent. Formation requires filing a Certificate of Organization with the Delaware Division of Corporations to create the LLC, followed by internal organization steps. Separately, the LLC must obtain an Employer Identification Number from the IRS via Form SS 4 to meet federal tax obligations. Typical documentation includes member names, ownership percentages, and certified identity documents. (AI Summary)

Pillar Two safe harbours simplify GloBE compliance and provide temporary penalty relief when reasonable measures are demonstrated.
Pillar Two safe harbours include a temporary Transitional CbCR Safe Harbour allowing jurisdictional exemption from detailed GloBE calculations where one of three CbCR based tests (De Minimis, Simplified ETR, or Routine Profit relative to SBIE) is met; a Transitional Penalty Relief Regime suspending penalties where "reasonable measures" to comply are shown; and a permanent Simplified Calculations Safe Harbour that deems top up tax zero when de minimis, routine profits (SBIE), or ETR thresholds are satisfied using agreed simplified calculations, while keeping NMCEs within scope and preserving GloBE filing obligations. (AI Summary)

Due date for ITR filing: harmonise deadlines to relieve non audit business and professional taxpayers facing unequal compliance burden.
The statutory definition of "due date" produces an earlier uniform filing deadline for non-audit business and professional taxpayers that is unjustified given similar data compilation burdens, processing delays for detailed returns, and consequences for eligibility of certain deductions; the author urges amendment of that definition or immediate remedial extension by the revenue board to harmonise timelines for self-employed persons, firms and HUFs outside audit coverage. (AI Summary)

Election vigilance: CBIC to deploy flying squads and coordinate across agencies to curb economic inducements.
A Finance Ministry SOP directs senior Customs, CGST and investigative officers to coordinate with other agencies and deploy analytics-driven flying squads to detect and interdict cash and non-monetary inducements during elections, identify and search warehouses, detain vehicles used for distribution or cash movement, monitor bonded warehouses and petrol pump transactions, and intensify GST investigations of eateries and event suppliers, with all information routed through state nodal officers. (AI Summary)

Refund application processing must follow prescribed forms and allow an opportunity to reply, or rejection is impermissible.
Once a refund application for unutilised input tax credit on zero rated supply is filed and acknowledged, the proper officer must process the claim, communicate any deficiencies using the prescribed form, allow the applicant to remove defects and to reply, and only thereafter decide on refund, adjustment or withholding with reasons recorded; failure to use prescribed forms or to afford an opportunity to respond constitutes procedural non adherence and mandates fresh processing under the Act and Rules. (AI Summary)

GST on travel agent services: commission and service fees taxed differently with input tax credit consequences.
GST treatment for travel agents separates commission and principal supply: commission income and service charges are taxable at 18% with available Input Tax Credit on eligible inputs, while tour operator services supplied on a principal basis are taxable at 5% without ITC. Commission-based tour arrangements are taxable at 18% with ITC. Government or consular fees for visa/passport services are exempt from GST, but agents' facilitation charges are taxable at 18% and ITC may be claimed where services are outsourced. (AI Summary)

Unauthorized collection during searches: deposits taken without statutory basis must be refunded and restored to input tax credit with interest.
Deposits taken during search proceedings without a statutory notice or other lawful authority must be refunded and reinstated to the taxpayer's Input Tax Credit ledger; revenue bears the burden of showing lawful collection. Reliance on precedent characterizes voluntary deposits during searches as not constituting valid tax collection and as potential infringements of Article 300A. Refunds are accompanied by post-filing interest at the rate specified by the decision. (AI Summary)

Business Auxiliary Services: incentives to travel agents for meeting targets are not taxable as BAS under service tax rules.
Performance-linked bonuses and computer reservation system commissions paid by airlines or CRS providers to travel agents for meeting predefined booking targets do not qualify as taxable Business Auxiliary Services. The agents' services are rendered to passengers-providing booking options and facilitation-and any benefit to airlines is incidental; incentives payable upon attainment of sales milestones reward achievement rather than a separate promotional service to airlines. (AI Summary)

GST on travel agent services affects commission, tour package treatment and Input Tax Credit availability across supply types.
GST applies to agents' commissions and service charges on travel-related supplies; air travel agents can claim Input Tax Credit on GST paid on commission/service charges where allowed. Tour operator supplies differ by billing: principal-basis supplies attract a lower-rate tax without ITC, while commission-basis supplies are taxable at the agent rate with ITC. Taxation of inbound versus outbound packages depends on the service recipient's location, and commissions in convertible foreign currency for packages sold to foreigners for travel outside India are not subject to GST. Government or consular fees are exempt, but agents' service charges for such facilitation are taxable with potential ITC when outsourced. (AI Summary)

Resolution professional's power to keep creditor claims in abeyance while arbitration and counterclaims determine admissibility and quantum.
Whether a resolution professional may withhold admission of a financial creditor's claim while parallel adjudication proceeds, particularly arbitration with a counterclaim likely to determine quantum or entitlement. The creditor urged mandatory recognition and collation of disputed claims under Section 3(6) and related regulations to enable Committee of Creditors participation; the resolution professional relied on pendency of arbitration and the counterclaim to justify keeping the claim in abeyance until determinative information on admissibility and quantum emerged. (AI Summary)

Election-related economic vigilance escalated as tax and customs officers coordinate to detect inducements and illicit movement.
The Ministry of Finance issued an SOP directing senior CBIC officers and ADGs to take an expanded, coordinated enforcement role in election related economic vigilance, including participation in Election Commission meetings and acting as state nodal contacts. Operational measures include DGARM analytical studies of giveaway goods, deployment of Flying Squads for warehouse searches and vehicle detentions, surveillance of customs bonded warehouses, monitoring of fuel sales, targeted GST investigations of hospitality and event services, and increased border and airport checks, with intelligence shared across agencies for joint action. (AI Summary)

Suppression of facts must be deliberate to invoke extended limitation; mere omission cannot justify extended assessment.
Suppression of facts requires deliberate, willful conduct to justify invoking the extended period of limitation; mere omissions are insufficient. The revenue must prove deliberate concealment or intent to evade tax before extended limitation applies. A conclusory finding of suppression without factual examination cannot sustain an extended limitation invocation in BAS-related service tax assessments. (AI Summary)

Enforcement Directorate custody powers affirmed; CrPC remand rules apply and habeas corpus succeeds only in exceptional circumstances.
The core holding: Enforcement Directorate officials are entitled to seek custody on remand and, after arrest, procedural norms under the Criminal Procedure Code apply. Habeas corpus challenges to a judicial remand succeed only in exceptional circumstances, and medically necessitated hospitalization periods may be excluded when computing custody time for further remand-while the distinct question whether customs/DRI or other specialised officers qualify as police officers for evidentiary and procedural consequences depends on whether their statutory powers equate to core police functions and remains unresolved for final adjudication. (AI Summary)

GloBE Safe Harbour election can exempt jurisdictions from top up tax but may be challenged within a statutory time limit.
The GloBE Safe Harbour allows an MNE Group to elect annually to treat Constituent Entities in jurisdictions likely taxed at or above the minimum rate as having zero Top up Tax for a fiscal year, provided the election and identification of entities are recorded in the GloBE Information Return. Jurisdictions affected by the Safe Harbour may challenge the underlying data; they must notify the Liable Constituent Entity within a specified period and invite clarification, and if the entity cannot demonstrate that the identified facts did not materially affect eligibility within the response period, the Safe Harbour will not apply. (AI Summary)