Chartered Accountant granted anticipatory bail in GST evasion probe; bail granted with cooperation and non tamper conditions.
A chartered accountant under investigation for alleged GST evasion by client firms was granted anticipatory bail because an accountant who merely maintains or audits accounts cannot be held liable for payment of GST absent direct culpability; the court stressed that bail is the rule, directed investigators to follow arrest-avoidance procedures for offences punishable up to seven years, and imposed conditions requiring cooperation, presence before investigators with records, surrender of passport or affidavit, and prohibitions on tampering with evidence or influencing witnesses. (AI Summary)

Doctrine of noscitur a sociis: interpret words by their immediate associates to resolve tax classification ambiguities.
The doctrine of noscitur a sociis requires interpreting a word by reference to immediately associated words, restricting general terms to senses analogous to narrower, associated terms. It is a rule of construction broader than ejusdem generis and is applied in tax schedule classification when legislative intention is doubtful or statutory language is ambiguous; it must not override clearly wider legislative language and may be treacherous if the associative context is not properly identified. (AI Summary)

GST appeals: deadline extended to 30/06/2026 for Section 107 cases for 2017-2026 orders; review high-value cases promptly.
GSTAT permits filing of Section 107 appeals for 01/07/2017-31/03/2026 until 30/06/2026 irrespective of pre-deposit or full tax payment, provided there is a first appellate order denying relief; a three-month limitation from the appellate order will commence from 01/04/2026. Review of cases, especially demands above Rs.10,00,000, is recommended to determine suitability for appeal before the deadline. (AI Summary)

GST show-cause notice lacking factual particulars of fraud found prima facie deficient; enhanced assessment procedure requires specific averments.
The Supreme Court found prima facie that the SCN issued under Section 74 was bereft of material particulars, containing only figures without explaining why fraud, willful misstatement or suppression of facts was alleged, and stayed further proceedings, underscoring that invocation of the extended assessment regime requires foundational factual averments from the revenue. (AI Summary)

Basis of Charge in taxation must rest on lawful charging sections and four foundational pillars for clear, sustainable tax levies.
The Basis of Charge is the legal authorization enabling taxation and must be grounded in law; charging sections create liability while statutes supply collection machinery. Lawful levies rest on four pillars-the taxable event, taxable person, rate, and measure-and modern digital value chains require adjudicators to apply evidence-based interpretation. Overbroad constructions to meet revenue aims subvert legislative purpose; instead, "organic adjudication"-fact rooted and legally clear processes-promotes transparent, sustainable taxation, though commentators caution enforcement integrity and taxpayer conduct may affect outcomes. (AI Summary)

GST suppression and return non-filing can trigger Section 74 penalty exposure despite later tax payment.
Section 74 of the CGST Act applies to aggravated GST defaults involving fraud, wilful misstatement, or suppression of facts to evade tax, and Explanation 2 expands suppression to include non-declaration of information required in returns. Prolonged non-filing of monthly GST returns may therefore support invocation of Section 74 where culpable conduct is inferred. The commentary explains that payment of tax alone does not secure immunity unless tax, interest, and the prescribed pre-notice penalty are paid before the show cause notice, and it describes Section 74 as a conditional compliance mechanism with staged penalty consequences. (AI Summary)

Leasing residential property to an aggregator for sub leasing as a hostel qualifies for GST exemption under Entry 13.
Leasing residential premises to an aggregator who sub lets them as long term hostels qualifies for exemption under Entry 13 of Notification No. 9/2017 as services by way of renting of residential dwelling for use as residence; "residential dwelling" includes hostel accommodation in common parlance and under the CBIC Education Guide, and Entry 13 does not require the immediate lessee to personally occupy the premises. (AI Summary)

SARFAESI enforcement in Nagaland requires a qualifying security interest; guarantee alone cannot support statutory enforcement by financial creditors.
The SARFAESI regime requires a creditor to be a secured creditor by virtue of a security interest created in the secured asset per the Act; a separate guarantee by a village council does not itself constitute such a security interest, and absent a mortgage, charge or security agreement meeting the Act's requirements the statutory enforcement procedure under the Act cannot be invoked, leaving the creditor to pursue ordinary remedies against the borrower and guarantor subject to Nagaland's land transfer and customary constraints. (AI Summary)

GST extended limitation under Section 74 requires wilful suppression; revenue knowledge or pending rulings negate its invocation.
Invocation of the extended limitation under Section 74 requires establishment of wilful suppression-non declaration or failure to furnish information with intent to evade tax. Mere omission, return discrepancies, or contested classification do not satisfy this jurisdictional fact absent mens rea. If Revenue had full knowledge of transactions through AAR/AAAR proceedings and the classification remained sub judice with interim protection, the extended limitation is not properly available. (AI Summary)

Resolution plans under the IBC extinguish unquantified ITC claims, shielding resolution applicants from prior GST anti profiteering liabilities.
Approval of a resolution plan under the Insolvency and Bankruptcy Code, through the Section 238 non obstante effect and the clean slate principle, gives finality to insolvency proceedings so that claims and dues not included, including unquantified input tax credit benefits not documented in the insolvency record, are extinguished and cannot be imposed on the resolution applicant under the anti profiteering provisions of the CGST Act. (AI Summary)

Personal guarantor liability under insolvency law proceeds despite corporate moratorium; quantum disputes resolved during repayment processes.
The moratorium under Section 14 does not prevent initiation of proceedings under Part III of the Code against a personal guarantor; Section 10A's suspension of certain corporate filings likewise does not extend to guarantor proceedings. An Interim Resolution Professional may report under Section 99 and the adjudicating authority must consider guarantor objections before admission. Disputes over claim quantum and co guarantor payments require detailed accounting and are to be addressed during repayment plan or related processes. (AI Summary)

Interest on home loan: unclaimed pre construction interest may be capitalised, but claimed interest cannot be added to cost.
Whether interest on a home loan may be added to the cost of acquisition depends on whether that interest was previously claimed as an interest deduction under the house property rules or Chapter VIA; tribunals and some high courts have allowed capitalisation of unclaimed pre construction interest into the asset's cost, but a proviso effective AY 2024 25 bars including interest already claimed as a deduction to prevent double benefit. (AI Summary)

Tobacco taxes: central excise duty replaces compensation cess with much higher specific and ad valorem rates on tobacco products.
The Central Excise (Amendment) Act, 2025 substitutes the Fourth Schedule tariff table to reintroduce central excise duty as the principal levy on tobacco and tobacco products, replacing the compensation cess where applicable; it prescribes specific and ad valorem rates across defined product categories (including uniform 70% on unmanufactured tobacco, increased per 1,000 cigarette specific rates, expanded slabs for manufactured tobacco and 100% on nicotine/inhalation products) and provides that collections are excise receipts entering the divisible pool for distribution to states. (AI Summary)

Input tax credit reversal cannot be initiated against a bona fide recipient without first serving discrepancy notice to the supplier.
The authority must follow the statutory matching and communication sequence under Section 42: where a recipient's ITC claim exceeds supplier declarations, the discrepancy must be communicated to both supplier and recipient and the supplier given an opportunity to rectify; only on supplier's non-rectification may the amount be added to the recipient's output liability, making recovery or ITC reversal against a bona fide recipient premature without prior proceedings against the supplier. (AI Summary)

Re-import of rejected export goods can be duty-free if export benefits are fully reversed and procedures followed.
Duty-free re-import under Notification 45/2017-Cus is available for goods returned after export for genuine commercial reasons provided all previously claimed export incentives are fully reversed and a specific exemption claim with documentary linkage is made on the bill of entry; timing limits apply and extensions require approval. (AI Summary)

Intellectual property infringement may justify urgent interim relief despite filing delays and pre-suit mediation requirements.
A suit alleging continuing infringement of patent and design rights with a prayer for interim injunction may contemplate urgent interim relief where the plaint and annexed documents clearly show a real need for immediate intervention; urgency is assessed from the persistence of the wrong, risk of market confusion and consumer deception, and mere delay in filing does not by itself negate urgency when infringement is ongoing. (AI Summary)

GST reforms: rate rationalisation accepted with short-term revenue trade-offs while technology bolsters compliance.
The Finance Ministry summarised support for GST 2.0 rate rationalisation as a citizen friendly reform expected to lower living costs and boost growth, accepting a projected short-term net revenue shortfall while emphasising improved compliance and monitoring of price pass through. It reaffirmed that the five year constitutional compensation mechanism has ended and no alternative is planned, rejected end use exemptions such as for MPLADS to protect Input Tax Credit and prevent misuse, and detailed technology driven anti evasion and simplification measures for compliance and enforcement. (AI Summary)

IGST refund on export sales remitted for limited verification; reconcile export turnover, ledger and refund receipts.
The tribunal remitted the IGST refund issue to the AO for limited verification after the taxpayer produced an IGST refundable ledger at the appellate stage; the AO must verify reconciliation of export turnover across books, GSTR 1 and GSTR 3B, confirm ledger debits/credits against GST portal and refund receipts, and assess whether the accounting treatment treats the IGST payment as a receivable or results in undisclosed income. (AI Summary)

Claim shares from IEPF: file IEPF Form-5, submit verification documents, and receive shares in your demat account.
Recovery from IEPF requires online filing of IEPF Form-5 with shareholder, company, share and demat details, followed by submission of supporting physical documents to the company or its registrar. The company verifies the claim and forwards a verification report to the IEPF Authority, which on satisfaction directs transfer of shares in dematerialised form to the claimant's demat account and credits accumulated dividends to the linked bank account; claimants must hold a demat account and meet KYC and title-document requirements. (AI Summary)

Goods and Services Tax: zero-rated exports and SEZ supplies now require authorized operations for zero-rating and ITC compliance.
Section 16 treats physical exports as zero rated and, until 30/09/2023, treated SEZ supplies as zero rated irrespective of purpose; from 01/10/2023 SEZ zero-rating requires supplies to be for authorized operations. Section 16(2) limits ITC denial to only section 17(5) of the CGST Act. Section 16(3) earlier allowed choice of bond/LOU without payment and refund of unutilized ITC or payment of IGST with refund; post-amendment refunds must follow section 54 and include repayment with interest if export proceeds are not realized. Sections 16(4) and 16(5) deal with notifications and bar refunds where export duty applies. (AI Summary)