Issues: Whether a former 100% EOU, after debonding and conversion into a DTA unit, may avail CENVAT credit of eligible duties paid on inputs and capital goods at the time of debonding.

Analysis: Rule 3(1) of the CENVAT Credit Rules, 2004 confers the substantive entitlement to credit of eligible duties, while Rule 9 prescribes the documentary basis for availing it. The proviso inserted in Rule 3(1) by Notification No. 35/2008-CE(N.T.) is to be harmoniously construed with the object of avoiding cascading of duties and cannot operate as an exclusive or restrictive source of credit limited to central excise duty paid on capital goods. Upon debonding and payment of assessed duty, the inputs and capital goods became duty-paid goods available for DTA manufacture; their prior duty-free procurement during EOU operations does not bar credit of the duty actually paid at debonding. The commercial decision to exit the EOU scheme, without blameworthy conduct, does not establish that the credit was inadmissible.

Conclusion: CENVAT credit of eligible duties paid on inputs and capital goods at debonding is admissible to the DTA unit, and the denial of such credit cannot be sustained.

Issues: (i) Whether refund of Rs.28,66,198 sanctioned in de novo proceedings could be treated as erroneous for want of one-to-one correlation between inputs and exported goods and the related alleged deficiencies; (ii) Whether the finding that repayment of drawback removes the bar to refund remained open for reconsideration; (iii) Whether consequential effect had to be given to the final order concerning Rs.9,03,190; and (iv) Whether the recovery proceeding should have been kept in abeyance pending the related appeal.

Issue (i): Whether refund of Rs.28,66,198 sanctioned in de novo proceedings could be treated as erroneous for want of one-to-one correlation between inputs and exported goods and the related alleged deficiencies.

Analysis: Rule 5 of the Cenvat Credit Rules, 2004, read with Notification No. 11/2002-CE (N.T.) dated 01.03.2002, does not require item-wise or one-to-one correlation between particular duty-paid inputs and particular exported goods. It is sufficient that the inputs were used in manufacture and that accumulated credit became incapable of utilisation because the finished goods were exported. The verification report confirmed the relevant purchase orders, input documents and export documents, with only short-shipment discrepancies already excluded. The alleged deficiencies were therefore contrary both to the governing legal requirement and to the verified record.

Conclusion: The sanctioned refund could not be treated as erroneous on the stated grounds and remains sustainable, in favour of the assessee.

Issue (ii): Whether the finding that repayment of drawback removes the bar to refund remained open for reconsideration.

Analysis: The earlier unchallenged finding that full repayment of drawback removes the bar to refund under Rule 5 had attained finality. Res judicata applies between successive stages of the same proceeding. A remand confined to documentary verification and quantification does not reopen an independently determined legal issue that was neither remanded nor challenged.

Conclusion: The drawback issue was not open for reconsideration, and repayment of drawback did not bar the refund, in favour of the assessee.

Issue (iii): Whether consequential effect had to be given to the final order concerning Rs.9,03,190.

Analysis: The earlier final determination had found the denial of this amount unsustainable. As the record did not establish implementation of that determination, only its execution remained, including any necessary verification of quantum and residual statutory requirements consistent with the earlier final order.

Conclusion: Consequential effect must be granted in respect of Rs.9,03,190 to the extent not already implemented, in favour of the assessee.

Issue (iv): Whether the recovery proceeding should have been kept in abeyance pending the related appeal.

Analysis: Pendency of an appeal without a stay does not suspend the operation of the challenged order, and proceeding with recovery adjudication was not jurisdictionally improper. However, the recovery under Section 11A(1) of the Central Excise Act rested entirely on the refund being erroneous. Once that premise failed, the principal recovery and the consequential interest under Section 11AB of the Central Excise Act lost their foundation.

Conclusion: Refusal to keep the proceeding in abeyance was valid, but the recovery demand and interest are unsustainable; the substantive result is in favour of the assessee.

Final Conclusion: The sanctioned refund remains effective, recovery and interest are without foundation, and the unimplemented amount must receive effect in accordance with law.

Issues: (i) Whether the search of the advocate's cabin and seizure of documents and CPU were invalidated by advocate-client privilege; (ii) Whether investigation material placed in a sealed cover had to be disclosed to the petitioner; (iii) Whether absence of a show-cause notice to the investigated entity invalidated the search or summons; (iv) Whether later attribution of a role to the petitioner amounted to an impermissible change of investigative stand; (v) Whether alleged procedural departures, including non-compliance with departmental instructions and the absence of a personal hearing before seizure, invalidated the search; and (vi) Whether recorded reasons to believe validly supported the search authorization.

Issue (i): Whether the search of the advocate's cabin and seizure of documents and CPU were invalidated by advocate-client privilege.

Analysis: Section 67(2) of the Central Goods and Services Tax Act, 2017 permits a search of authorised premises upon the prescribed statutory satisfaction. The cabin was an integral part of the premises covered by the authorization. Advocate-client privilege attaches to the nature and circumstances of professional communications, not to every item found in an advocate's office or possession.

Analysis: The material indicating possible involvement by the advocate in the affairs under investigation justified inquiry into conduct beyond professional representation, without determining ultimate liability. The investigated client's subsequent consent enabled disclosure of that client's material but neither retrospectively validated the search nor permitted access to unrelated client data. Safeguards restricting use of the cloned data protect privileged communications and confidential information of other clients.

Conclusion: Advocate-client privilege did not invalidate the search or seizure, which remain subject to safeguards for privileged and unrelated client material.

Issue (ii): Whether investigation material placed in a sealed cover had to be disclosed to the petitioner.

Analysis: The sealed material comprised statements and other records obtained in an ongoing investigation and was used only to assess whether there was a basis for continuing the investigation, not to determine liability. Sections 192(5) of the Bharatiya Nagarik Suraksha Sanhita, 2023 and 130 of the Bharatiya Sakshya Adhiniyam, 2023 reflect the principle that investigative records and confidential official communications are not ordinarily disclosed where disclosure may prejudice the investigation.

Conclusion: Copies of the sealed-cover investigation material were not required to be furnished at the ongoing-investigation stage.

Issue (iii): Whether absence of a show-cause notice to the investigated entity invalidated the search or summons.

Analysis: A show-cause notice is an adjudicatory step that may follow completion of investigation. Search and summons during investigation do not depend upon prior issuance of such notice.

Conclusion: The absence of a show-cause notice did not invalidate the search or summons.

Issue (iv): Whether later attribution of a role to the petitioner amounted to an impermissible change of investigative stand.

Analysis: Investigation may develop as further material is collected. Earlier identification of one person as handling operational or financial matters does not exclude examination of another person's potentially active or consequential role.

Conclusion: The subsequent examination of the petitioner's role did not constitute an impermissible change of investigative stand.

Issue (v): Whether alleged procedural departures, including non-compliance with departmental instructions and the absence of a personal hearing before seizure, invalidated the search.

Analysis: Administrative instructions, circulars and digital-evidence procedures cannot override or curtail the statutory search power under Section 67 of the Central Goods and Services Tax Act, 2017. A procedural departure, absent a demonstrated breach of a mandatory statutory requirement affecting authorization or jurisdiction, does not render a search void. A personal hearing was not a precondition to seizure during an authorised search, and the prescribed safeguards regulated subsequent access to the CPU.

Conclusion: The alleged procedural departures did not invalidate the search or seizure.

Issue (vi): Whether recorded reasons to believe validly supported the search authorization.

Analysis: The statutory threshold required material capable of supporting the competent authority's reasons to believe, rather than proof of guilt or a final finding on the allegations. The recorded material disclosed a sufficient basis for exercise of the search power.

Conclusion: The recorded reasons to believe validly supported the search authorization.

Final Conclusion: The statutory investigation may continue using cloned data confined to material relevant to the entity under investigation, while privileged communications and confidential information of unrelated clients remain protected by the prescribed safeguards.

Issues: Whether Styrene Butadiene Rubber Latex, marketed as SBR Latex, is classifiable as "rubber" under Entry No. 96 of Schedule II-B of the Uttarakhand Value Added Tax Act or as unclassified goods under the residuary entry.

Analysis: Entry No. 96 employs the unqualified expression "rubber" and does not restrict its scope to natural rubber or exclude synthetic rubber. SBR Latex is admittedly Styrene Butadiene Rubber in latex form; its synthetic origin or physical form does not displace its essential character as rubber. The Schedule demonstrates that the legislature used express exclusionary language where intended, whereas no such exclusion appears in Entry No. 96. A commodity having a reasonable claim to a specified entry should not be relegated to a residuary entry. The Revenue, seeking classification under the higher-rated residuary entry, did not establish that synthetic SBR Latex was excluded from the specified entry. The products' use as waterproofing, bonding, or concrete additives is immaterial where their nature and composition answer the description of rubber.

Conclusion: SBR Latex is covered by the expression "rubber" in Entry No. 96 of Schedule II-B and is taxable at the rate applicable to that entry, not as unclassified goods.

Issues: (i) Whether proceedings under Section 74 of the Central Goods and Services Tax Act, 2017, were barred by Section 6(2)(b) owing to earlier State proceedings under Section 73 concerning input tax credit from M.R. Enterprises; (ii) Whether writ interference was warranted in respect of factual adjudication grievances where a statutory appeal under Section 107 was available.

Issue (i): Whether proceedings under Section 74 of the Central Goods and Services Tax Act, 2017, were barred by Section 6(2)(b) owing to earlier State proceedings under Section 73 concerning input tax credit from M.R. Enterprises.

Analysis: Section 6(2)(b) bars proceedings only where both authorities seek to adjudicate the identical liability or contravention. A common assessee, financial year, supplier name, or similar tax liability does not alone establish the same subject matter. The later proceedings were founded on alleged fraudulent availment of input tax credit through invoices unsupported by actual supply of goods, and the material did not establish that this precise contravention had already been adjudicated in the earlier State proceedings. Distinct GSTINs of entities bearing the same trade name were relevant, though not conclusive, circumstances.

Conclusion: The bar under Section 6(2)(b) was not attracted, and the Central proceedings were not ex facie barred. The issue is decided against the assessee.

Issue (ii): Whether writ interference was warranted in respect of factual adjudication grievances where a statutory appeal under Section 107 was available.

Analysis: Objections concerning consideration of the reply, supply of relied-upon material, genuineness and receipt of goods, fraud or suppression, overlapping liability, and the sustainability of tax, interest and penalty required review of the adjudication record and disputed factual material. Section 107 provides an appellate remedy competent to determine those matters. No exceptional circumstance justified exercise of extraordinary jurisdiction under Article 226 in substitution of that remedy.

Conclusion: Writ interference was not warranted, and the issue is decided against the assessee.

Final Conclusion: The challenge to the jurisdictional bar fails, while factual and merits-based objections remain for determination through the statutory appellate framework.

Ratio Decidendi: Section 6(2)(b) of the Central Goods and Services Tax Act, 2017 applies only upon identity of the liability or contravention under adjudication; common factual background, assessee, period, or similar tax exposure is insufficient.

Issues: Whether the writ challenge to an Order-in-Original should be entertained notwithstanding the statutory appellate remedy.

Analysis: Section 107 of the Central Goods and Services Tax Act, 2017 provides a statutory appeal against the Order-in-Original. The objection under Section 6(2)(b) requires examination of disputed facts concerning the nature, factual foundation, transactions and overlap, if any, between the State GST and DGGI proceedings. Such jurisdictional objection, along with the challenge to the demand and evidentiary findings, can be examined by the appellate authority.

Conclusion: The petitioner must pursue the statutory appellate remedy; the objection under Section 6(2)(b) of the Central Goods and Services Tax Act, 2017 and all merits issues are left open for determination by the appellate authority.

Issues: (i) Whether writ jurisdiction should be exercised against an Order-in-Original despite the statutory appeal under Section 107 of the Central Goods and Services Tax Act, 2017; (ii) Whether proceedings initiated under Section 74 of the Central Goods and Services Tax Act, 2017 were barred by Section 6(2)(b) of that Act owing to earlier State GST proceedings; and (iii) Whether a consolidated show cause notice under Section 74 of the Central Goods and Services Tax Act, 2017 covering multiple financial years was without jurisdiction.

Issue (i): Whether writ jurisdiction should be exercised against an Order-in-Original despite the statutory appeal under Section 107 of the Central Goods and Services Tax Act, 2017.

Analysis: An adjudicated demand is appealable under Section 107. Issues concerning the evidentiary basis of the demand, alleged fraudulent input tax credit, suppliers, and the claimed overlap of State and Central proceedings require factual assessment appropriately undertaken in the statutory appeal. The requirement of pre-deposit does not, by itself, justify bypassing that remedy, and no patent jurisdictional infirmity was established.

Conclusion: Writ jurisdiction was not liable to be exercised; the issue was decided against the assessee.

Issue (ii): Whether proceedings initiated under Section 74 of the Central Goods and Services Tax Act, 2017 were barred by Section 6(2)(b) of that Act owing to earlier State GST proceedings.

Analysis: Section 6(2)(b) bars parallel proceedings only on the same subject matter, namely an identical or overlapping tax liability, deficiency, or obligation arising from the same contravention. The applicable inquiry is whether the proceedings concern identical liability or alleged offence on the same facts and seek identical demand or relief. The State proceedings under Section 73 of the Delhi Goods and Services Tax Act, 2017 concerned ineligible input tax credit, whereas the Central proceedings arose from allegations of fraudulent invoices issued by fictitious or non-existent entities, utilisation of credit for export-related integrated tax liability, and refund claims. Overlap in period, transactions, or input tax credit claims was insufficient by itself.

Conclusion: Section 6(2)(b) did not bar the Central proceedings merely because the proceedings overlapped in respect of input tax credit; the issue was decided against the assessee.

Issue (iii): Whether a consolidated show cause notice under Section 74 of the Central Goods and Services Tax Act, 2017 covering multiple financial years was without jurisdiction.

Analysis: Sections 73(3), 73(10), 74(3), and 74(10) of the Central Goods and Services Tax Act, 2017 do not prohibit a consolidated notice under Section 74 merely because it covers more than one financial year. Questions of limitation, satisfaction of the ingredients for invoking Section 74, and period-wise quantification remain available for statutory appellate examination.

Conclusion: A consolidated show cause notice covering multiple financial years was not inherently without jurisdiction; the issue was decided against the assessee.

Final Conclusion: The challenge to the adjudicated demand must be pursued through the statutory appellate mechanism, where all permissible grounds remain open for determination independently on merits.

Ratio Decidendi: A writ challenge to a GST adjudication ordinarily will not be entertained where an efficacious statutory appeal is available and no patent jurisdictional infirmity is established.

Issues: (i) Whether exclusion of a substantial shareholder from management and the financial benefits of a quasi-partnership company constituted oppression under Sections 241 and 242 of the Companies Act, 2013; (ii) Whether the shareholder's disengagement from the company, competing business and alleged absence from board meetings disqualified him as a director or defeated the oppression petition; (iii) Whether an inter se Swiss Challenge bidding process for the shareholding could be ordered despite the pre-emptive rights under the articles of association.

Issue (i): Whether exclusion of a substantial shareholder from management and the financial benefits of a quasi-partnership company constituted oppression under Sections 241 and 242 of the Companies Act, 2013.

Analysis: The company was a closely held family concern operating as a quasi-partnership. The shareholder respondents, who collectively held over 40% and included a founder, were excluded from management and deprived of remuneration and benefits through which company profits had historically been distributed. Important financial decisions were taken without their participation. Their exclusion occurred without due process or justification and frustrated their legitimate expectation to participate in management and share in the company's financial benefits.

Conclusion: The conduct amounted to oppression under Sections 241 and 242 of the Companies Act, 2013, in favour of the shareholder respondents.

Issue (ii): Whether the shareholder's disengagement from the company, competing business and alleged absence from board meetings disqualified him as a director or defeated the oppression petition.

Analysis: The settlement contemplated the shareholder's exit on payment of the agreed consideration and expressly allowed competing business, subject only to non-use of company data. The agreed consideration was not fully paid. No evidence established misuse of confidential data or solicitation of employees. Further, the appellants did not prove service of notices for board meetings or minutes upon the shareholder; therefore, absence from meetings could not result in vacation of office under Section 167(1)(b) of the Companies Act, 2013. The company's filings also continued to show him as a director.

Conclusion: The shareholder was not shown to have incurred disqualification or committed conduct defeating the oppression petition, in favour of the shareholder respondents.

Issue (iii): Whether an inter se Swiss Challenge bidding process for the shareholding could be ordered despite the pre-emptive rights under the articles of association.

Analysis: Section 242(2)(b) of the Companies Act, 2013 authorises an order for purchase of a member's shares by other members or the company. The earlier settlement for purchase of the respondent shareholder's shares, followed by his reciprocal offer to purchase the appellants' shares, substantially met the purpose of the pre-emptive provisions. As both factions were willing and capable of purchasing the other's shares, and mutual trust had irretrievably broken down, supervised inter se bidding through the Swiss Challenge Method was an appropriate, transparent and non-arbitrary exit mechanism.

Conclusion: The inter se Swiss Challenge bidding process was validly directed and the challenge to it failed, in favour of the shareholder respondents.

Final Conclusion: The equitable exit mechanism under Section 242(2)(b) of the Companies Act, 2013 appropriately resolves the established oppression and irreconcilable breakdown within the quasi-partnership company.

Ratio Decidendi: Where oppression in a closely held quasi-partnership company is accompanied by an irretrievable breakdown of trust and both shareholder groups are willing to acquire the other's interest, Section 242(2)(b) permits a supervised Swiss Challenge process to determine a fair exit arrangement.

Issues: (i) Whether receipts from software maintenance, support and training services constitute fees for technical services under the India-Singapore Double Taxation Avoidance Agreement; (ii) Whether receipts from software migration and additional services constitute fees for technical services under the India-Singapore Double Taxation Avoidance Agreement.

Issue (i): Whether receipts from software maintenance, support and training services constitute fees for technical services under the India-Singapore Double Taxation Avoidance Agreement.

Analysis: Article 12(4)(b) requires that technical, managerial or consultancy services make available technical knowledge, experience, skill, know-how or processes enabling the recipient to apply them independently. The services comprised recurring remote assistance for software use, resolution of bugs and errors, standard updates without additional functionality, and training limited to proper use of the software. The Indian customers remained dependent on continuing assistance and did not acquire the technical capability to perform the services independently.

Conclusion: The maintenance, support and training receipts do not satisfy the make available condition and are not fees for technical services. This issue is decided in favour of the assessee.

Issue (ii): Whether receipts from software migration and additional services constitute fees for technical services under the India-Singapore Double Taxation Avoidance Agreement.

Analysis: The additional services were confined to migration of software from an old version to a new version. No material established that technical knowledge, know-how or skill was transferred to Indian customers so as to enable independent performance of such migration services. The make available condition was therefore not met; the receipts were business receipts and, in the absence of a permanent establishment in India, were not taxable in India.

Conclusion: The software migration and additional-service receipts are not fees for technical services and are not taxable in India. This issue is decided in favour of the assessee.

Final Conclusion: The impugned software-related service receipts remain outside Indian taxation under the treaty because no technical capability was made available to the customers and there was no permanent establishment in India.

Ratio Decidendi: Software support, training and migration services are not fees for technical services under Article 12(4)(b) unless they impart technical knowledge or skill enabling the recipient to apply the technology independently.

Issues: (i) Whether outstanding trade-creditor balances, continuously acknowledged in the books, could be treated as remission or cessation of liability taxable under section 41(1) of the Income-tax Act, 1961 merely because they remained unpaid for more than two years; (ii) Whether interest under section 234C of the Income-tax Act, 1961 could be computed with reference to assessed income rather than tax due on returned income.

Issue (i): Whether outstanding trade-creditor balances, continuously acknowledged in the books, could be treated as remission or cessation of liability taxable under section 41(1) of the Income-tax Act, 1961 merely because they remained unpaid for more than two years.

Analysis: Section 41(1) requires that an allowance or deduction was allowed in an earlier year and that the assessee obtained a benefit during the relevant previous year through remission or cessation of the trading liability. The Revenue identified no waiver, agreement, settlement, write-back, discharge or other event showing remission, cessation, or a benefit obtained during the relevant year. Mere age of a liability, absence of creditor confirmation or recovery proceedings, or expiry of limitation does not by itself extinguish the debt where the debtor continues to acknowledge it. Payment shortly after the year-end was relevant evidence inconsistent with an inference that the liability had already ceased at the balance-sheet date. The additional evidence also went to the root of the inference drawn under section 41(1).

Conclusion: The conditions for application of section 41(1) were not met; the creditor balances could not be treated as ceased liabilities. This issue is decided in favour of the assessee.

Issue (ii): Whether interest under section 234C of the Income-tax Act, 1961 could be computed with reference to assessed income rather than tax due on returned income.

Analysis: Interest for deferment of advance tax is mandatory, but its computation for a company is governed by tax due on returned income, subject to the adjustments specified in the provision and due credit for tax deducted at source and advance tax. Assessed income could not be used as the basis merely because assessment was completed at a higher income.

Conclusion: Interest under section 234C must be recomputed on the tax due on returned income after statutory credits and verification of the assessee's computation. This issue is decided in favour of the assessee.

Final Conclusion: An acknowledged trade liability does not become taxable income without an actual remission, cessation, or benefit in the relevant year, and advance-tax interest remains confined to the statutory basis of returned income.

Ratio Decidendi: An outstanding and acknowledged trading liability cannot be brought to tax under section 41(1) solely because it is old or time-barred; an actual remission, cessation, or benefit obtained in the relevant previous year must be established.

Issues: (i) Whether advertisement and publicity expenditure incurred with third parties constitutes an international transaction with associated enterprises warranting an arm's-length-price adjustment; (ii) Whether the loss eligible for carry-forward should be recomputed where the assessment order and computation sheet show different losses; (iii) Whether TDS/TCS credit of the transferor entity is available to the transferee upon amalgamation when the corresponding income is assessed in the transferee's hands.

Issue (i): Whether advertisement and publicity expenditure incurred with third parties constitutes an international transaction with associated enterprises warranting an arm's-length-price adjustment.

Analysis: Section 92B of the Income-tax Act, 1961 requires the existence of an international transaction before its arm's-length price can be determined. Advertisement and publicity expenditure incurred with third-party vendors for the assessee's own business does not, merely because it may incidentally benefit an associated enterprise or its brand, establish such a transaction. A common group code prescribing standards for commercial communications does not, without tangible material showing an arrangement or understanding to provide brand-promotion services to the associated enterprise, establish an international transaction.

Conclusion: The advertisement and publicity expenditure was not an international transaction in the absence of evidence of an arrangement or understanding with the associated enterprise; the transfer-pricing adjustment was deleted, in favour of the assessee.

Issue (ii): Whether the loss eligible for carry-forward should be recomputed where the assessment order and computation sheet show different losses.

Analysis: The assessed loss and the loss recorded in the computation sheet for carry-forward differed. The loss eligible for carry-forward must correspond with the assessed income or loss and requires verification of the computation.

Conclusion: The issue was remitted for limited verification and correction of the loss eligible for carry-forward in accordance with law.

Issue (iii): Whether TDS/TCS credit of the transferor entity is available to the transferee upon amalgamation when the corresponding income is assessed in the transferee's hands.

Analysis: Section 199 of the Income-tax Act, 1961 read with Rule 37BA of the Income-tax Rules links tax credit to the assessment of the corresponding income. Following amalgamation, the transferee may claim TDS/TCS credit relating to the transferor where the relevant income is offered and assessed in the transferee's hands, subject to verification of the amalgamation scheme, tax credit and corresponding income.

Conclusion: Eligible TDS/TCS credit is to be granted to the transferee after verification of the relevant records, in favour of the assessee to that extent.

Final Conclusion: The AMP adjustment cannot survive without proof of an arrangement with the associated enterprise, while the carry-forward loss and transferee tax-credit claims require factual verification.

Ratio Decidendi: Advertisement and publicity expenditure constitutes an international transaction only where tangible material establishes an arrangement or understanding with the associated enterprise for incurring that expenditure.

Issues: Whether a non-executive Chairman or Director is personally liable for deposits accepted by a company merely by virtue of holding office, absent a personal guarantee, independent contractual undertaking, statutory liability, or other recognised legal basis.

Analysis: A company has a legal personality distinct from its Directors and shareholders, and its debts ordinarily remain its own. The deposit receipts evidenced transactions with the company. No evidence established that the Chairman had personally guaranteed repayment or independently undertaken liability. Holding the office of Chairman or Director when deposits were received did not, by itself, create personal liability.

Conclusion: The Chairman or Director was not personally liable for the company's deposit obligations merely by virtue of that office; personal liability was not established.

Issues: Whether the petitioner was entitled to anticipatory bail in an investigation alleging fraudulent availment of input tax credit.

Analysis: The gravity and magnitude of an alleged economic offence, including a cognizable and non-bailable offence under the GST enactments, are relevant but do not by themselves establish the necessity of arrest. The statutory power of arrest requires recorded reasons to believe and must be distinguished from the actual investigative necessity for custodial interrogation. That necessity is to be assessed with reference to the accused's individual role, cooperation, availability of documentary and electronic evidence, risk of abscondence or tampering, and whether investigation can proceed through measures short of custody. Parity with a similarly placed co-accused is relevant but not conclusive. Here, searches had already resulted in seizure of material, the investigation substantially concerned documentary and electronic evidence, the petitioner asserted continued cooperation, and the co-accused had been released on bail. Protective conditions could adequately preserve the investigation and address risks of non-cooperation or interference.

Conclusion: The petitioner was entitled to anticipatory bail subject to conditions securing continued cooperation with the investigation and protecting the prosecution's interests.

Issues: (i) Whether an additional disallowance under section 14A read with Rule 8D could be made without examining the assessee's suo motu disallowance and recording dissatisfaction with it; (ii) Whether expenditure attributable to qualifying royalty income under section 115BBF(2) could be determined by applying the ratio of total royalty receipts to gross expenditure.

Issue (i): Whether an additional disallowance under section 14A read with Rule 8D could be made without examining the assessee's suo motu disallowance and recording dissatisfaction with it.

Analysis: Section 14A(2) permits recourse to the prescribed method only after the Assessing Officer examines the assessee's actual claim with reference to its accounts and records dissatisfaction as to its correctness. The assessee had already made a disallowance relating to exempt income, but the assessment proceeded on the incorrect premise that no disallowance had been made. The recorded observations addressed a nil claim and did not evaluate the actual disallowance. The further amount computed under Rule 8D was also lower than the amount already disallowed by the assessee.

Conclusion: The additional disallowance under Rule 8D, including the corresponding book-profit adjustment, is deleted in favour of the assessee; the disallowance voluntarily made by the assessee remains undisturbed.

Issue (ii): Whether expenditure attributable to qualifying royalty income under section 115BBF(2) could be determined by applying the ratio of total royalty receipts to gross expenditure.

Analysis: Section 115BBF(2) prevents expenditure having a nexus with qualifying royalty income from reducing other business income. It does not permit an indiscriminate apportionment of every profit-and-loss account expense merely by reference to gross receipts. The royalty included receipts not offered under the special provision, while the allocation base potentially included expenditure already disallowed and expenses exclusively connected with manufacturing and trading. The additional evidence concerning patent-wise royalty and expenditure required verification from the books and supporting records and was admitted under Rule 29.

Conclusion: In favour of the assessee to the extent of fresh verification, the quantum of expenditure attributable to qualifying royalty income is restored for a fact-specific recomputation; no final determination on the amount of disallowance is made.

Final Conclusion: The additional section 14A amount cannot be sustained, while attribution of expenditure to royalty income must be determined through a verified nexus-based exercise rather than gross-receipts apportionment.

Issues: (i) Whether the arbitrators were disqualified on account of prior service in a related maritime arbitration and inadequate disclosure; (ii) Whether Clause 62 of the Contract of Affreightment permitted unilateral termination for non-issuance of shipment nominations; (iii) Whether the award of damages and interest was sustainable.

Issue (i): Whether the arbitrators were disqualified on account of prior service in a related maritime arbitration and inadequate disclosure.

Analysis: The award arose from an international commercial arbitration, for which review under Section 34 is confined to the limited public-policy grounds; patent illegality is unavailable. Section 12 and Item 24 of the Fifth Schedule identify circumstances capable of giving rise to justifiable doubts as to independence or impartiality, while Explanation 3 recognises that maritime arbitrations may draw from a small pool of specialised arbitrators. The applicable maritime rules and Section 13 required a challenge within fifteen days. The appellant had knowledge of the arbitrators' participation in the related arbitration but did not raise its challenge within the prescribed period, resulting in waiver. Prior adjudication of a similar contractual issue, without material showing a closed mind, partiality, or lack of objective judgment, did not establish disqualification.

Conclusion: The arbitrators were not disqualified, and the award was not vitiated by conflict of interest or any deficiency in disclosure.

Issue (ii): Whether Clause 62 of the Contract of Affreightment permitted unilateral termination for non-issuance of shipment nominations.

Analysis: Clause 62 was required to be read with the agreement as a whole and alongside the force-majeure mechanism in Clause 61. The clause addressed a supplier's failure or inability to supply cargo, resulting in frustration of performance; it did not authorise termination because of the charterer's own failure to issue shipment nominations. The force-majeure provision was not invoked. The proposed construction would permit a party to benefit from its own breach and would undermine the binding shipment obligations under the contract.

Conclusion: Clause 62 did not permit unilateral termination for the appellant's own non-performance, and the termination was unjustified.

Issue (iii): Whether the award of damages and interest was sustainable.

Analysis: The damages calculation adopted the difference between the contractual freight rate and the relevant spot rate, applied to the affected tonnage, after notice of mitigation. This was a rational measure of contractual loss. The assessment did not violate the restricted public-policy standard applicable to review of an international commercial arbitral award, and the interest award was also within the arbitral determination.

Conclusion: The award of damages and interest was sustained.

Final Conclusion: The limited public-policy review furnished no basis to disturb the arbitral determination on liability, compensation, or interest.

Ratio Decidendi: Prior service by arbitrators in a related specialised arbitration does not, without material establishing a real likelihood of closed-mindedness or partiality, create justifiable doubts as to their independence or impartiality; an objection to their appointment must also be raised within the prescribed period.

Issues: Whether adjustment or recovery of an outstanding tax demand pending a first appeal could be challenged, and refund of the amount recovered claimed, where no stay application had been filed.

Analysis: Section 245 of the Income-tax Act, 1961 and the CBDT Office Memorandum dated 29.02.2016 contemplate a stay of demand only upon a request for such stay. Mere filing of an appeal does not suspend recovery, and a stay petition, when filed, is required to be decided within two weeks. No stay petition had been filed before the recovery was effected.

Conclusion: The recovery already effected was valid and no refund of the amount recovered was warranted. No further recovery shall be made until disposal of the first appeal.

Issues: Whether a cheque drawn on an account with a bank that subsequently merged with another bank becomes invalid, thereby warranting quashing of proceedings for dishonour under Section 138 of the Negotiable Instruments Act.

Analysis: A bank merger transfers the merged bank's assets, liabilities, and customer accounts to the successor bank. Consequently, the account on which the cheque was drawn does not vanish merely because the original bank ceases to exist. An endorsement stating that there was no such bank could not, by itself, render the cheque invalid where the successor bank had taken over the account. The allegation that the cheque was misplaced and the circumstances concerning closure of the account are matters requiring proof in trial.

Conclusion: A cheque does not become invalid solely because the drawee bank has merged into a successor bank; such merger does not preclude proceedings under Section 138 of the Negotiable Instruments Act.

Issues: Whether the penalty order in Form GST MOV-09 could be sustained without determining whether the e-way bill accompanying the vehicle was fabricated or was genuine but omitted the vehicle number due to a technical glitch.

Analysis: The e-way bill produced showed a generation time of 11:34 a.m., rendering the explanation for non-reflection of the vehicle number implausible. However, the system-generated e-way bill without the vehicle number required verification to ascertain whether it was fabricated or was a genuine bill affected by a technical glitch.

Conclusion: The impugned penalty order could not be sustained pending verification of the authenticity and validity of the e-way bill, requiring fresh determination by the proper officer.

Issues: (i) Whether the assessment order and DRC-7 could confirm a demand beyond the scope of the show cause notice and without accounting for tax already paid; (ii) Whether cancellation of GST registration for discontinuance of business could be refused solely because of an outstanding tax demand.

Issue (i): Whether the assessment order and DRC-7 could confirm a demand beyond the scope of the show cause notice and without accounting for tax already paid.

Analysis: The detailed assessment order and DRC-7 travelled beyond the tax proposal in the show cause notice. Although the detailed order recorded payment of Rs. 47,57,105 through belated GSTR-3B returns and appropriated it towards the demand, the DRC-7 did not account for that payment and confirmed the entire demand. A tax determination must remain within the scope of the show cause notice.

Conclusion: In favour of the assessee, the assessment order was set aside for fresh adjudication after issuance of a fresh show cause notice, conditional on payment of 50% of the tax demand proposed in the original notice.

Issue (ii): Whether cancellation of GST registration for discontinuance of business could be refused solely because of an outstanding tax demand.

Analysis: Discontinuance of business is an express ground for cancellation under Section 29(1)(a) of the Central Goods and Services Tax Act, 2017. Section 29(3) preserves the statutory power to recover outstanding amounts even after cancellation; therefore, an outstanding demand does not by itself justify rejecting an application for cancellation.

Conclusion: In favour of the assessee, the rejection of the cancellation application was set aside and the application was directed to be reconsidered in accordance with law.

Final Conclusion: Fresh tax proceedings must be founded on a proper notice and account for payments already made, while cancellation of registration must be assessed independently of the continuing statutory recovery mechanism.

Issues: Whether an adjudication imposing tax, interest and penalty under the GST law can be made without granting a personal hearing merely because the assessee did not opt for one.

Analysis: Section 75(4) mandates an opportunity of hearing where a written request is made or where an adverse decision is contemplated. The requirement applies independently when the proposed adjudication is adverse and is not displaced by the absence of a request for personal hearing.

Conclusion: An adverse adjudication under Section 74 imposing tax, interest and penalty without affording an opportunity of hearing is invalid, notwithstanding that the assessee did not opt for a personal hearing.