Works Contract Service classification confirmed for supply-of-material-plus-labour contracts; extended limitation period not invokable.
Contracts that combine supply of materials and labour are classifiable as Works Contract Service, making them taxable only from the point the statutory category became chargeable; reliance on precedent supports that composite construction contracts attract works contract classification. The Tribunal also held that the extended period of limitation is not invokable to recover service tax in such cases and set aside the departmental demand and penalties. (AI Summary)

Deemed consolidation test: use authorized consolidated accounts to determine GloBE scope and constituent status.
The guidance requires preparing a deemed set of Consolidated Financial Statements under an Authorized Financial Accounting Standard when the UPE does not prepare consolidated statements; that set is used to assess GloBE applicability, including revenue threshold and Constituent Entity status. It clarifies that the deemed consolidation does not alter the consolidation outcomes under the applicable accounting standard and that the Controlling Interests definition uses an analogous deemed consolidation approach. Where a non acceptable accounting treatment causes a Material Competitive Distortion, adjustments must align the treatment with IFRS. (AI Summary)

Input tax credit on demo cars depends on capital good treatment and limits imposed by passenger vehicle credit exceptions.
Availability of input tax credit on demonstration vehicles depends on their characterization as capital goods and use in the course or furtherance of business, but is limited by a statutory exclusion denying credit on motor vehicles for passenger transport except where specific taxable supplies are made or where the recipient is engaged in manufacture or insurance services; interpretation disputes focus on the scope of the exceptions and advance rulings are inconsistent. (AI Summary)

Right to personal hearing must be specified in show cause notices; absence vitiates subsequent orders and mandates fresh hearing.
Failure to specify the date, time and venue for a personal hearing in a show cause notice breaches the right to personal hearing and principles of natural justice; the High Court set aside the adjudication order and remitted the matter for fresh hearing after affording the taxpayer a personal hearing. (AI Summary)

Refund of wrongly collected service tax: unregistered real estate buyers can recover tax paid when contracts are cancelled.
Refund of service tax is admissible when a real estate booking is cancelled and no service has been rendered; the tax retained by revenue is treated as an amount paid under mistake of law lacking legal authority, so Section 11B limitation does not apply and the amount is recoverable. Retention without legal backing contravenes Article 265, and unregistered purchasers may therefore pursue refund or recovery even after contract cancellation, with analogous administrative procedures provided under GST for similar situations. (AI Summary)

GSTIN verification strengthens taxpayer legitimacy and secures proper claim of input tax credit in business transactions.
The text sets out that the GSTIN is a 15 digit unique identifier assigned on completion of online registration (Form Part A and Part B, document upload, OTP/email verification, and officer verification), and explains that GSTIN verification on the GST portal-by searching GSTIN/UIN-reveals official business details, GSTIN status and jurisdictional data; such verification is critical to validate registration legitimacy, protect Input Tax Credit claims, ensure correct tax remittance, and promote transactional transparency. (AI Summary)

Compromise settlements and technical write offs to ease credit flow, plus insured TReDS and capped default loss guarantees.
RBI permits compromise settlements and technical write offs for fraud accounts and wilful defaults under board approved policies, with cash settlements potentially involving sacrifice of claim amounts, a minimum cooling period before fresh exposure in non farm credit, and write offs that do not waive recovery rights. It also expands TReDS participation to insurance companies and factoring entities to hedge financier risk without charging MSME sellers, and allows fintechs to enter into default loss guarantee arrangements with REs under outsourcing relationships subject to an upfront capped cover. (AI Summary)

Show Cause Notice insufficiency: inadequate reasons invalidate proposed GST cancellation and lead to restoration of registration.
A show cause notice proposing cancellation of GST registration that states only that the taxpayer has "ceased to be liable to pay tax" without explaining the factual or legal basis is deficient. A valid notice must clearly set out the reasons for the proposed adverse action so the noticee can meaningfully respond; absence of intelligible reasons justifies setting the notice aside and restoring registration under the CGST suspension/cancellation framework. (AI Summary)

Compounding of offences allows eligible companies and officers to seek monetary settlement instead of prosecution after AGM non compliance.
The note explains statutory obligations to hold Annual General Meetings and the penal consequences for defaults under the Companies Act, 1956 and Companies Act, 2013. It details the compounding of offences mechanism under the 2013 Act, including authorities empowered to compound, eligibility limits, and the Registrar of Companies' role in reporting defaults and computing maximum potential fines that inform compounding applications by companies and officers-in-default. (AI Summary)

SEZ search and seizure authority confirmed: GST agencies may investigate SEZ units and enforce compliance under IGST principles.
GST authorities may lawfully conduct search and seizure and related investigations within Special Economic Zones where officers are authorised, and supplies to or by SEZ units are treated as inter state supplies under the IGST framework; consequently SEZ status does not confer immunity from GST inspection or seizure, and actions taken under SEZ investigative powers can operate within the GST regime. (AI Summary)

Alternate remedy bars writ: pursue statutory appeal and provisional release procedures under Section 129 promptly.
Writ jurisdiction is inappropriate where the dispute is factual and an alternate statutory remedy exists; the petitioner must pursue the statutory appeal and may apply for provisional release of the detained goods and vehicle under the applicable detention regime, with the Appellate Authority directed to decide the appeal on merits expeditiously and to consider release on terms such as a bank guarantee. (AI Summary)

Seizure on suspicion under Section 37A upheld; post-seizure procedures and appellate remedy remain available for companies.
The court upheld the statutory seizure and confiscation mechanism introduced to address undisclosed foreign-held assets, noting the provision was enacted after focused investigations and legislative scrutiny. The decision emphasises that seizure operates as an interim coercive measure rather than final adjudication, and that post-seizure procedures and an appellate remedy remain available to the affected party. (AI Summary)

Summons power limits: officer cannot direct customers to stop payments; such restraint requires provisional attachment procedure.
The summoning power is limited to securing attendance and production of evidence or documents and does not authorize directing a third party customer to stop payments; restraints on property or bank accounts to protect revenue must be effected through the distinct provisional attachment regime that permits written orders to attach property, including bank accounts, where prescribed conditions indicating revenue risk exist. (AI Summary)

Voluntary GST payment during search must be acknowledged and refunded if no notice under section 74(1) is issued.
Deposits of tax, interest and penalty made during a search must be treated as voluntary only when the officer has informed the taxpayer of the voluntary payment mechanism and has issued the prescribed acknowledgement; absent issuance of the prescribed acknowledgement or initiation of recovery by issuing the requisite notice, the department must return the deposited amount with interest and comply with administrative instructions governing recoveries during search. (AI Summary)

Validity of IGST place-of-supply provisions upheld but barred from creating tax authority under central or state GST laws.
Sections 13(8)(b) and 8(2) of the IGST Act are constitutionally valid and operative within the IGST framework, but their place of supply deeming rules cannot be used to authorize or levy tax under the Central or State Goods and Services Tax statutes on intermediary services. (AI Summary)

Pre import IGST procedure clarified: reassessment, electronic challan payment and notional OOC enable input credit transmission to GSTN.
Administrative GST developments emphasize digital verification and authentication, import stage tax assessment procedures, and process improvements for litigation and communication. GSTN's e Invoice Verifier App and expanded e invoicing require IRP generated IRNs and QR codes for validation, while two factor authentication is mandated for high turnover users. CBIC's circular prescribes reassessment, electronic challan payment of IGST and compensation cess for imports failing pre import conditions, cancellation/recreation of OOC and transmission of payment details to GSTN to enable input tax credit and potential refund subject to CGST Act eligibility provisions. (AI Summary)

Double taxation of the same income invalid; rental receipts declared under house property cannot be re-taxed under other sources.
The tribunal held that rental receipts properly declared and taxed as Income from House Property could not be re-taxed as Income from Other Sources at the processing stage; the duplicate taxation was a processing error and unsustainable because the return already reflected the receipts under the appropriate head after statutory deduction. (AI Summary)

ITR form eligibility clarifies filing categories and electronic verification obligations for different assessees and professionals
Classification of income tax returns identifies eligible taxpayer categories and exclusions for each Form, highlights limited updates for reporting retirement benefits and the option between old and new tax regimes, allocates ITR-2 through ITR-7 by income source and entity type with specified exclusions for presumptive schemes, and sets filing modalities-electronic filing with digital signature, electronic verification methods or limited paper filing-while requiring electronic submission of specified audit and statutory reports and disclosure of the tax-return preparer and documentary confirmation for claimed deductions. (AI Summary)

Plant and machinery classification: oil wells qualify, enabling higher depreciation under income tax rules for exploration assets.
Oil wells installed for exploration qualify as plant and machinery under the Income Tax Rules; the rules do not require use for "distribution" to attract that classification. Relying on precedent where oil wells were treated as plant and machinery, the tribunal treated the earlier classification as building as erroneous and ordered recomputation of depreciation on the opening written down value at the higher rate applicable to plant and machinery. (AI Summary)

Scrutiny of GST returns requires a filed return, may prompt audit, and proceeds through online notices and replies.
Scrutiny of GST returns is an online examination of filed returns to verify declared figures by matching and reconciliation; it applies only where a return has been filed and cannot be used to compel filing, with non filing dealt with by best judgment assessment. Scrutiny may prompt an audit but is distinct from audit, and notices of discrepancy issued in scrutiny must be replied to within a prescribed period, subject to extensions by the proper officer. (AI Summary)