Issues: (i) Whether interest on income-tax refund received by an Irish tax resident is taxable at the beneficial rate of 10% under Article 11 of the India-Ireland Double Taxation Avoidance Agreement; (ii) Whether credit for tax deducted at source is allowable.

Issue (i): Whether interest on income-tax refund received by an Irish tax resident is taxable at the beneficial rate of 10% under Article 11 of the India-Ireland Double Taxation Avoidance Agreement.

Analysis: Article 11 limits Indian taxation of interest paid to an Irish resident to 10% of the gross interest. By virtue of section 90(2) of the Income-tax Act, 1961, treaty provisions prevail where more beneficial. The assessee's Irish tax residency and entitlement to treaty benefits were undisputed, and the facts were identical to the earlier assessment year.

Conclusion: Interest on the income-tax refund is taxable at 10% under Article 11 of the India-Ireland Double Taxation Avoidance Agreement, in favour of the assessee.

Issue (ii): Whether credit for tax deducted at source is allowable.

Analysis: The claim for tax deducted at source credit required examination as to whether the credit had already been granted and, if not, its allowability in accordance with law.

Conclusion: The tax deducted at source credit issue is restored to the Assessing Officer for re-examination and grant of eligible credit in accordance with law.

Final Conclusion: The beneficial treaty rate governs the taxation of the refund interest, while the tax deducted at source credit claim requires fresh verification.

Ratio Decidendi: Where an eligible non-resident is entitled to a more beneficial treaty rate, the treaty limitation on tax applies in preference to the domestic-law rate.

Issues: (i) Whether section 123 of the Customs Act, 1962, applies to the seized Indian currency; (ii) Whether the requirements of section 121 of the Customs Act, 1962, have been established; (iii) Whether the penalties under section 112(a) and 112(b) of the Customs Act, 1962, are sustainable; and (iv) Whether the matters require remand.

Issue (i): Whether section 123 of the Customs Act, 1962, applies to the seized Indian currency.

Analysis: Section 123 creates an exception to the ordinary burden of proof only for specified or notified goods. Although gold is covered, Indian currency is not a specified or notified good. Since the seized property was currency and not gold, the statutory burden of proof remained upon the Revenue to establish that it represented sale proceeds of smuggled goods.

Conclusion: Section 123 does not apply to the seized Indian currency; the burden of proof rested upon the Revenue, in favour of the assessee.

Issue (ii): Whether the requirements of section 121 of the Customs Act, 1962, have been established.

Analysis: Confiscation under section 121 requires cumulative statutory ingredients: legally established smuggled goods, their sale by a person having knowledge or reason to believe them to be smuggled, and a direct evidentiary nexus between that sale and the currency. Suspicion arising from possession of substantial cash or doubts regarding its source cannot substitute this proof. No particular smuggled gold consignment, illegal importation, seller, buyer, sale, consideration, or identifiable part of the currency linked to such sale was established. The business records, GST returns, bill books, and customer confirmations supporting alternative sources were not displaced by contrary evidence.

Conclusion: The statutory requirements for confiscation under section 121 were not established; confiscation of the currency is unsustainable, in favour of the assessee.

Issue (iii): Whether the penalties under section 112(a) and 112(b) of the Customs Act, 1962, are sustainable.

Analysis: Penalty under section 112(a) or section 112(b) requires identified goods liable to confiscation under section 111 and an established act, omission, abetment, or knowing dealing in relation to those goods. No specific smuggled gold or conduct relating to identified confiscable goods was proved. Allegations or conduct arising from an unconnected proceeding cannot supply the missing factual foundation, and confiscation proposed under section 121 cannot replace the foundational requirements for penalty.

Conclusion: The penalties under section 112(a) and section 112(b) are unsustainable, in favour of the assessee.

Issue (iv): Whether the matters require remand.

Analysis: Though the appellate remand direction could not be sustained under section 128A, remand was not warranted after findings that confiscation lacked legal authority and the statutory ingredients were unproved. Remand cannot be used to permit reconstruction of a fundamentally deficient case by identifying new facts or evidentiary links absent from the show cause notice. Fresh adjudication on the same record would serve no purpose.

Conclusion: Remand was unwarranted and the remand direction is set aside, in favour of the assessee.

Final Conclusion: The absence of proof linking the currency to identified sales of smuggled goods defeats both confiscation and penalty; the matter attains finality without a fresh adjudication.

Ratio Decidendi: Currency may be confiscated as sale proceeds of smuggled goods only upon the Revenue proving all statutory ingredients, including a direct and identifiable evidentiary nexus between a proven sale of smuggled goods and the currency sought to be confiscated.

Issues: (i) Whether the declared CIF transaction value was liable to be accepted; (ii) Whether freight and insurance could be added to the declared CIF value; (iii) Whether upstream FOB values in supplier invoices and Non-GMO certificates could replace the importer's transaction value; (iv) Whether the extended limitation period was validly invoked; (v) Whether confiscation, redemption fine and penalties could be sustained.

Issue (i): Whether the declared CIF transaction value was liable to be accepted.

Analysis: Section 14(1) of the Customs Act, 1962 and Rule 3(1) of the Customs Valuation (Determination of Value of Imported Goods) Rules, 2007 prescribe the price actually paid or payable in the sale for export to India as the primary valuation basis. Rejection under Rule 12 required cogent evidence that the declared price was not the real consideration. Banking remittances did not exceed the declared invoice value, and no extra payment, relationship affecting price, or flow-back of funds was established.

Conclusion: The declared CIF transaction value was required to be accepted. This issue is decided in favour of the assessee.

Issue (ii): Whether freight and insurance could be added to the declared CIF value.

Analysis: Rule 10(2) permits addition of transport and insurance costs only to the extent they are not included in the price actually paid or payable. The invoices were on CIF terms and identified the Indian destination; freight was prepaid abroad by the foreign supplier, and there was no evidence that the importer paid or was liable to reimburse freight or insurance. Rule 10(3) also required any addition to rest on objective and quantifiable data rather than assumption.

Conclusion: No addition towards freight or insurance was permissible. This issue is decided in favour of the assessee.

Issue (iii): Whether upstream FOB values in supplier invoices and Non-GMO certificates could replace the importer's transaction value.

Analysis: The upstream FOB figures related to a separate transaction between foreign entities and did not establish the price paid or payable in the sale for export to India. Non-GMO certificates were regulatory compliance documents, not commercial valuation documents, and did not provide comparable-import data, actual consideration, or a quantifiable omitted amount. Similarity between the upstream FOB price and the downstream CIF price created, at most, suspicion and did not prove undervaluation.

Conclusion: The upstream FOB values and Non-GMO certificates could not substitute the declared CIF transaction value. This issue is decided in favour of the assessee.

Issue (iv): Whether the extended limitation period was validly invoked.

Analysis: Invocation of Section 28(4) required collusion, wilful misstatement, or suppression of facts with intent to evade duty. The primary import documents and CIF Incoterm were disclosed at assessment, and the dispute concerned valuation methodology rather than concealment or deliberate evasion.

Conclusion: The extended limitation period was not validly invoked, and the demand beyond the normal period was time-barred. This issue is decided in favour of the assessee.

Issue (v): Whether confiscation, redemption fine and penalties could be sustained.

Analysis: Confiscation under Section 111(m) depended on a sustainable finding of value misdeclaration. Penalty under Section 114A was contingent upon a valid extended-period duty determination, while penalties under Sections 112(a) and 112(b) rested on the same unproved valuation allegation. With the valuation enhancement and extended-period demand failing, no foundation remained for these consequences.

Conclusion: The confiscation, redemption fine, and penalties were unsustainable. This issue is decided in favour of the assessee.

Final Conclusion: Customs assessment must proceed on the declared CIF consideration, with the consequential differential-duty demand and related liabilities having no legal basis.

Ratio Decidendi: A declared CIF transaction value cannot be rejected or enhanced by imputing freight and insurance from an upstream FOB transaction unless reliable, objective evidence establishes that the importer paid or was liable to pay additional consideration not included in the invoice price.

Issues: (i) Whether the ex parte proceedings denied the suspended directors a fair opportunity to contest the liquidator's application and whether the forensic audit report could be relied upon; (ii) Whether the property transactions and cash-expense entries constituted fraudulent accommodation and round-tripping transactions warranting contribution to the corporate debtor.

Issue (i): Whether the ex parte proceedings denied the suspended directors a fair opportunity to contest the liquidator's application and whether the forensic audit report could be relied upon.

Analysis: The appellants had been afforded sufficient opportunities before the Adjudicating Authority and their explanation for non-participation was not accepted. They were also able to place defence material in the appeal but did not produce reliable evidence sufficient to displace the audit findings. Though a forensic report is not conclusive by itself, it acquired evidentiary significance because it was founded on sale deeds, bank records, sub-registrar records and title-verification material. The burden to explain facts especially within the erstwhile management's knowledge remained on the appellants once the liquidator had produced a reliable forensic report.

Conclusion: The proceedings did not occasion any denial of fair opportunity, and the forensic audit report was rightly relied upon. The issue is decided against the appellants.

Issue (ii): Whether the property transactions and cash-expense entries constituted fraudulent accommodation and round-tripping transactions warranting contribution to the corporate debtor.

Analysis: The documentary material showed substantial overvaluation of properties, absence of proof for alleged cash payments, continued possession and rental collection by vendors, and rapid transfer of loan disbursements back to the corporate debtor and related entities. Certain properties remained encumbered and title-related steps were not completed. The unexplained and unsupported cash-expense entries further supported the finding that funds had been improperly withdrawn. These circumstances established that the stated property purchases were used as accommodation transactions to obtain loans and channel the proceeds back to the corporate debtor or connected entities.

Conclusion: The transactions were fraudulent round-tripping arrangements intended to defraud creditors, and the contribution liability imposed on the appellants was sustained. The issue is decided against the appellants.

Final Conclusion: The findings of fraudulent transactions and the consequent monetary contribution obligation under the insolvency framework remain enforceable.

Ratio Decidendi: A forensic audit supported by reliable documentary material may sustain a finding of fraudulent transactions where persons having special knowledge of the relevant affairs fail to produce cogent evidence rebutting it.

Issues: Whether the IBBI (Liquidation Process) (Second Amendment) Regulations, 2025 applied to a liquidation by sale of the corporate debtor as a going concern where the liquidation order, recording the Committee of Creditors' decision for such sale, had been passed before the amendment came into force.

Analysis: The liquidation order under Section 33(2) of the Insolvency and Bankruptcy Code, 2016 had made liquidation effective from its date and had expressly recorded the recommendation under Regulation 39C of the IBBI (Insolvency Resolution Process for Corporate Persons) Regulations, 2016 that the liquidator first explore a going-concern sale under Regulation 32(e) of the IBBI (Liquidation Process) Regulations, 2016. The auction was an implementation step in the liquidation already commenced, not a fresh liquidation process. Rights and obligations in liquidation are governed by the regulations prevailing on the liquidation commencement date; a later amendment without retrospective operation cannot alter the legal foundation of the pre-existing process.

Conclusion: The amendment notified on 14.10.2025 did not govern or invalidate the going-concern sale process that commenced with the liquidation order dated 10.10.2025. The impugned order was set aside, and the matter was remitted for consideration of reliefs and concessions in accordance with law.

Issues: (i) Whether transfer of development rights in land to a developer in exchange for a share of the built-up area constitutes a taxable service; (ii) Whether CENVAT credit of tax paid on works-contract and administrative services received from the developer is admissible; (iii) Whether the extended limitation period and penalties are invocable in relation to the inadmissible CENVAT credit.

Issue (i): Whether transfer of development rights in land to a developer in exchange for a share of the built-up area constitutes a taxable service.

Analysis: Development rights are benefits arising out of land and consequently constitute immovable property under Section 3(26) of the General Clauses Act, 1897. A transfer of such rights is a transaction in immovable property, not a provision of construction service or any other taxable service.

Conclusion: Transfer of development rights was not a taxable service; the service-tax demand and related penalties under Sections 77 and 78 of the Finance Act, 1994 are unsustainable, in favour of the assessee.

Issue (ii): Whether CENVAT credit of tax paid on works-contract and administrative services received from the developer is admissible.

Analysis: Since transfer of development rights was not an output service, the works-contract and administrative services received from the developer could not qualify as input services for that transaction.

Conclusion: CENVAT credit is inadmissible and recoverable under Rule 14 of the CENVAT Credit Rules, 2002, against the assessee.

Issue (iii): Whether the extended limitation period and penalties are invocable in relation to the inadmissible CENVAT credit.

Analysis: The credit was availed because the assessee bona fide treated transfer of development rights as taxable construction service and discharged service tax on that basis. This conduct did not warrant invocation of the extended limitation period or imposition of penalty.

Conclusion: Recovery of inadmissible credit is restricted to the normal limitation period, and the penalty under Rule 15 of the CENVAT Credit Rules, 2002 is set aside, in favour of the assessee.

Final Conclusion: The transfer of development rights is treated as a transaction in immovable property; service tax paid on it may be claimed as refund subject to the statutory bar of unjust enrichment, while inadmissible credit remains recoverable only within the normal period.

Ratio Decidendi: Transfer of development rights, being a benefit arising out of land and thus immovable property, is not a taxable service; services received for such transfer cannot generate input-service credit, though a bona fide contrary tax position precludes extended limitation and penalty.

Issues: (i) Whether the extended period of limitation could be invoked for the alleged short reversal of CENVAT credit; (ii) Whether proportionate reversal under Rule 6(3A) was to be computed with reference to total CENVAT credit or only common CENVAT credit; and (iii) Whether trading or services in the negative list could be treated as exempted services for Rule 6.

Issue (i): Whether the extended period of limitation could be invoked for the alleged short reversal of CENVAT credit.

Analysis: The reversals were disclosed in filed returns and the Revenue could have verified the computation by scrutiny or by seeking further information. Failure to undertake such verification does not establish deliberate concealment. Invocation of the extended period requires fraud, collusion, wilful misstatement, suppression of facts, or contravention with intent to evade; mens rea cannot be presumed from a bona fide interpretative position or an audit detection.

Conclusion: The extended period of limitation was not invocable, in favour of the assessee.

Issue (ii): Whether proportionate reversal under Rule 6(3A) was to be computed with reference to total CENVAT credit or only common CENVAT credit.

Analysis: Read harmoniously, Rule 6 permits proportionate reversal only of credit attributable to common inputs or input services used for taxable and exempted activities. Credit exclusively used for taxable output services or dutiable goods cannot be included in the reversal formula. The substitution of the Rule 6(3A) formula by Notification No. 13/2016-C.E. (N.T.) was clarificatory and consequently applied retrospectively.

Conclusion: Only common CENVAT credit was relevant for proportionate reversal; computation on total CENVAT credit was unsustainable, in favour of the assessee.

Issue (iii): Whether trading or services in the negative list could be treated as exempted services for Rule 6.

Analysis: Rule 2(e) does not classify services listed in Section 66D as exempted services. Transfer of title in goods through trading is excluded from the definition of service; it is a sale transaction subject to the distinct taxing field applicable to goods and cannot be deemed to be a service merely for the purpose of the negative list.

Conclusion: Trading is not a service and cannot be treated as an exempted service for Rule 6, in favour of the assessee.

Final Conclusion: The demand founded on the alleged short reversal of credit was legally unsustainable.

Issues: (i) Whether construction of residential flats by a builder before 01.07.2010 was taxable in the absence of the deeming provision; (ii) Whether construction of a building or independently identifiable project having twelve or fewer residential units was taxable as a residential complex service or works contract service; (iii) Whether consideration received under separate agreements with individual purchasers for completion of residential units intended for personal use was taxable; (iv) Whether a separate levy could be sustained on flats allotted to landowners under a development agreement; (v) Whether abatement and cum-tax valuation were available for any consideration otherwise found taxable; and (vi) Whether the extended limitation period and penalties were sustainable.

Issue (i): Whether construction of residential flats by a builder before 01.07.2010 was taxable in the absence of the deeming provision.

Analysis: The explanation deeming construction by a builder to be taxable where consideration was received from a prospective buyer before completion certification came into force only from 01.07.2010. That deeming fiction could not operate retrospectively for the earlier period.

Conclusion: The demand for the period before 01.07.2010 was unsustainable, in favour of the assessee.

Issue (ii): Whether construction of a building or independently identifiable project having twelve or fewer residential units was taxable as a residential complex service or works contract service.

Analysis: Although indivisible contracts involving goods and construction services are works contracts, taxability of residential construction still depends on satisfaction of the statutory definition of a residential complex. A project or independently identifiable building having twelve or fewer residential units does not meet that definition, and the works contract entry cannot enlarge it.

Conclusion: Construction of such buildings or projects was outside the taxable scope, in favour of the assessee.

Issue (iii): Whether consideration received under separate agreements with individual purchasers for completion of residential units intended for personal use was taxable.

Analysis: The statutory exclusion covered construction undertaken under individual agreements for residential units intended for the purchasers' personal use, including use by another person as a residence with or without rent. Separate agreements for completion and finishing of individual flats fell within that exclusion, absent material showing commercial exploitation or non-residential use.

Conclusion: Service tax on consideration under the individual purchaser agreements was not payable, in favour of the assessee.

Issue (iv): Whether a separate levy could be sustained on flats allotted to landowners under a development agreement.

Analysis: A further levy on the landowners' share would constitute double taxation where the value of land or development rights was embedded in the assessable value of the developer's share on which tax had been discharged. No evidence established that consideration received in kind from landowners had escaped tax despite such inclusion.

Conclusion: The separate demand on the landowners' share was unsustainable, in favour of the assessee.

Issue (v): Whether abatement and cum-tax valuation were available for any consideration otherwise found taxable.

Analysis: Any residual taxable consideration was entitled to statutory abatement on fulfilment of prescribed conditions. Where service tax had not been separately collected, the gross amount charged had to be treated as inclusive of service tax for valuation.

Conclusion: Applicable abatement and cum-tax benefit under Section 67(2) were required to be extended for any amount otherwise found taxable, in favour of the assessee.

Issue (vi): Whether the extended limitation period and penalties were sustainable.

Analysis: The dispute arose from interpretation of composite construction contracts, the subsequently introduced deeming provision, the personal-use exclusion, valuation, and taxability of the landowners' share. Divergent views and the absence of any identified fraud, collusion, or deliberate suppression with intent to evade precluded invocation of the extended period. The same interpretational circumstances did not support penalties.

Conclusion: The extended period was not invocable and all penalties were unsustainable, in favour of the assessee.

Final Conclusion: The disputed residential-construction levy was governed by the pre-2010 non-taxability, statutory residential-complex and personal-use exclusions, protection against double taxation, applicable valuation relief, and the normal limitation period.

Issues: (i) Whether the extended period of limitation under the proviso to Section 11A(1) of the Central Excise Act, 1944 was invocable in the absence of established deliberate suppression, where the Department had contemporaneous knowledge of the stock position and the demand rested on statutory records; (ii) Whether penalty under Section 11AC of the Central Excise Act, 1944 was imposable.

Issue (i): Whether the extended period of limitation under the proviso to Section 11A(1) of the Central Excise Act, 1944 was invocable in the absence of established deliberate suppression, where the Department had contemporaneous knowledge of the stock position and the demand rested on statutory records.

Analysis: The proviso requires the Revenue to establish that the non-levy or short-levy resulted from fraud, collusion, wilful misstatement, suppression of facts, or contravention with intent to evade duty. This jurisdictional enquiry is distinct from computation of the limitation period from the relevant date. Departmental knowledge cannot alter the statutory relevant date after the proviso is attracted, but contemporaneous knowledge is material evidence in deciding whether suppression existed at all.

Analysis: The stock verification was conducted in the presence of departmental officers after their invitation, and the demand was founded exclusively on the Cost Audit Report, a statutory record required to be maintained and producible to the Department. The prescribed returns did not require disclosure of the shortages or excesses. The notices neither identified a suppressed fact nor pleaded a breached disclosure obligation, deliberate concealment, or intent to evade duty. In the absence of a positive and deliberate act of withholding material information, mere non-reporting or discovery of a discrepancy cannot constitute suppression. The notices issued beyond the ordinary one-year period were therefore time-barred.

Conclusion: The extended period was not available; the demand was barred by limitation in its entirety, in favour of the assessee.

Issue (ii): Whether penalty under Section 11AC of the Central Excise Act, 1944 was imposable.

Analysis: Penalty under Section 11AC is conditional upon satisfaction of the ingredients that permit invocation of the proviso to Section 11A(1). Since no fraud, wilful suppression, or intent to evade duty was established, that condition failed.

Conclusion: Penalty under Section 11AC was not imposable, in favour of the assessee.

Final Conclusion: The extended-period duty demand and consequential interest and penalty liabilities could not be sustained; no finding was required on the merits of the underlying demand.

Ratio Decidendi: The extended limitation period under the proviso to Section 11A(1) is available only upon proof of deliberate suppression or other specified culpable conduct with intent to evade duty; departmental possession of statutory records and contemporaneous knowledge may demonstrate the absence of such suppression.

Issues: (i) Whether dolochar, fly ash, iron ore fines and other incidental waste materials arising during manufacture of sponge iron are liable to Central Excise duty merely because they are marketable and tariff-listed; (ii) Whether dolochar was alternatively covered by unconditional exemption notifications applicable to waste arising from manufacture of iron or steel; (iii) Whether the extended period of limitation, interest and penalties could be sustained.

Issue (i): Whether dolochar, fly ash, iron ore fines and other incidental waste materials arising during manufacture of sponge iron are liable to Central Excise duty merely because they are marketable and tariff-listed.

Analysis: Levy under Section 3 requires that goods be manufactured or produced. Marketability under the explanation to Section 2(d), sale value, or tariff coverage does not dispense with the independent requirement of manufacture. Dolochar and fly ash arose inevitably as residues from coal use, while iron ore fines arose from handling, screening or segregation; no independent process producing a new and distinct commodity with a separate name, character or use was established. The burden to establish manufacture remained unmet.

Conclusion: The disputed residues and waste materials were not excisable goods liable to duty; this finding is in favour of the assessee.

Issue (ii): Whether dolochar was alternatively covered by unconditional exemption notifications applicable to waste arising from manufacture of iron or steel.

Analysis: The relevant notification entries unconditionally exempt slag, dross, scaling and other waste from manufacture of iron or steel falling under Chapter 26. If dolochar were classified by the Department under that chapter as waste from sponge-iron manufacture, the exemption could not be denied.

Conclusion: On the alternative assumption of excisability and classification under Chapter 26, dolochar attracted unconditional exemption and no effective duty liability arose; this finding is in favour of the assessee.

Issue (iii): Whether the extended period of limitation, interest and penalties could be sustained.

Analysis: The dispute concerned the excisability of unavoidable residues and involved divergent administrative views, including a Board circular later rescinded. This demonstrated an interpretational dispute. No fraud, collusion, wilful misstatement, suppression of facts, or intent to evade duty was established.

Conclusion: The extended period was unavailable, and consequential interest and penalties, including personal penalties, could not survive; this finding is in favour of the assessee.

Final Conclusion: No Central Excise duty, consequential interest, or penalties were sustainable in respect of the disputed clearances.

Ratio Decidendi: Marketability, saleability, or tariff classification cannot render an incidental waste or residue dutiable unless it emerges through a process amounting to manufacture or production.

Issues: (i) Whether C&F services rendered at depots/warehouses qualify as input services. (ii) Whether credit for transportation, delivery and unloading at customers' premises is admissible. (iii) Whether the extended period of limitation could be invoked. (iv) Whether equivalent penalty was sustainable.

Issue (i): Whether C&F services rendered at depots/warehouses qualify as input services.

Analysis: Section 4(3)(C) of the Central Excise Act, 1944 includes a depot or consignment agent's premises, from which goods are sold after factory clearance, within the place of removal. Receipt, unloading, storage, handling and loading at depots from which cement was sold had a direct nexus with manufacture and sale and were performed up to the place of removal.

Conclusion: Credit for C&F services performed at the depots/warehouses is admissible, in favour of the assessee.

Issue (ii): Whether credit for transportation, delivery and unloading at customers' premises is admissible.

Analysis: For FOR-destination sales, the place of removal cannot be inferred merely from that description. It depends on the contractual terms concerning transfer of title and risk, responsibility for freight and insurance, inclusion of freight in assessable value, and whether delivery at the customer's premises was an essential condition of sale. If ownership and risk remained with the assessee until delivery, the customer's premises would be the place of removal; otherwise, post-depot services would not qualify.

Conclusion: Eligibility of credit for post-depot transportation, delivery and unloading must be determined upon factual verification of the relevant contractual and transaction documents.

Issue (iii): Whether the extended period of limitation could be invoked.

Analysis: The credit was disclosed in statutory records and returns and the records had been subjected to departmental audit. The dispute involved interpretation of input service and place of removal, with divergent views on FOR-destination transactions. No fraud, collusion, wilful misstatement or deliberate suppression with intent to evade duty was established.

Conclusion: The extended period of limitation was not invocable, and the demand beyond the normal period is set aside, in favour of the assessee.

Issue (iv): Whether equivalent penalty was sustainable.

Analysis: As the requisite deliberate suppression or intent to evade duty was not established, the ingredients for penalty under Rule 15(2) of the Cenvat Credit Rules, 2004 read with Section 11AC of the Central Excise Act, 1944 were absent.

Conclusion: The equivalent penalty is set aside in favour of the assessee.

Final Conclusion: Depot-level C&F credit stands admissible, while post-depot credit requires application of the contractual place-of-removal test; only any credit within the normal limitation period remains to be quantified.

Ratio Decidendi: In FOR-destination transactions, post-clearance service credit depends on the actual place of removal, determined from the contractual transfer of title and risk and the obligations governing delivery, freight and insurance.

Issues: (i) Whether Section 147A of the Income-tax Act, 1961, retrospectively validating issuance of reassessment notices by jurisdictional Assessing Officers, is constitutionally valid; (ii) Whether notices under Section 148 issued by jurisdictional Assessing Officers without randomized automated allocation and faceless procedure are valid under Section 151A and the e-Assessment of Income Escaping Assessment Scheme, 2022.

Issue (i): Whether Section 147A of the Income-tax Act, 1961, retrospectively validating issuance of reassessment notices by jurisdictional Assessing Officers, is constitutionally valid.

Analysis: A retrospective validating enactment may neutralise a judicial decision only by curing the defect or removing the statutory foundation on which that decision rests; it cannot merely declare a contrary legal position or directly override judicial determinations. Section 147A purported to exclude faceless assessment units from the meaning of Assessing Officer for Sections 148 and 148A, but left Section 151A, the scheme framed thereunder, and the scheme under Section 130 unamended. It neither addressed the mandatory randomized automated allocation requirement nor removed the basis of the decisions holding that reassessment notices could be issued only through the faceless mechanism. The provision consequently conflicted with the continuing statutory scheme and amounted to legislative encroachment upon judicial power, contrary to the rule of law and the constitutional principle of separation of powers.

Conclusion: Section 147A of the Income-tax Act, 1961 is unconstitutional and struck down, in favour of the assessees.

Issue (ii): Whether notices under Section 148 issued by jurisdictional Assessing Officers without randomized automated allocation and faceless procedure are valid under Section 151A and the e-Assessment of Income Escaping Assessment Scheme, 2022.

Analysis: Section 151A and Clause 3(b) of the e-Assessment of Income Escaping Assessment Scheme, 2022 expressly cover issuance of notices under Section 148 and require issuance through randomized automated allocation and in a faceless manner. The qualification referring to Section 144B applies to assessment or reassessment under Section 147 and cannot exclude issuance of notices under Section 148; such an interpretation would render the scheme ineffective. Notifications or executive instructions conferring concurrent jurisdiction cannot override the statutory scheme. Where the law prescribes a particular mode, the prescribed mode alone must be followed.

Conclusion: Notices under Section 148 issued by jurisdictional Assessing Officers otherwise than through randomized automated allocation and the faceless mechanism are invalid and liable to be set aside, in favour of the assessees.

Final Conclusion: The statutory faceless reassessment regime mandates that reassessment notices be issued only through the automated and faceless process prescribed under Section 151A and the applicable scheme.

Ratio Decidendi: A retrospective validating law is unconstitutional where it merely negates judicial rulings without curing the statutory defect underlying them; a reassessment notice must be issued in the mandatory faceless and randomized automated-allocation manner prescribed by the governing statutory scheme.

Issues: (i) Whether gold is a prohibited item within the meaning of the Customs Act, 1962; (ii) Whether the adjudicating authority was correct in imposing penalty under Section 112(i) of the Customs Act, 1962.

Issue (i): Whether gold is a prohibited item within the meaning of the Customs Act, 1962.

Analysis: Section 2(33) includes goods whose import or export is subject to a prohibition under the Customs Act, 1962 or any other law in force; it is not confined to goods prohibited through a notification under Section 11. Import of gold was regulated by Reserve Bank of India notifications and circulars, and bulk import was restricted to authorised agencies, while passenger import was governed by the Baggage Rules. The persons concerned did not fall within either permitted category, and the gold was brought through an unauthorised land route.

Conclusion: Gold imported in contravention of applicable import restrictions is prohibited goods within Section 2(33) of the Customs Act, 1962, in favour of the Revenue.

Issue (ii): Whether the adjudicating authority was correct in imposing penalty under Section 112(i) of the Customs Act, 1962.

Analysis: Once the seized gold was prohibited goods, Section 112(i) governed the applicable penalty. The adjudicating order identified the goods as prohibited and imposed penalty on that basis. Failure to expressly specify the invoked clause does not invalidate an order where the authority possessed the statutory power and the order disclosed the basis for its exercise.

Conclusion: The adjudicating authority validly imposed penalty under Section 112(i) of the Customs Act, 1962, in favour of the Revenue.

Final Conclusion: The modification of the penalties was unsustainable, and the original confiscation and penalty adjudication remains operative.

Ratio Decidendi: Goods subject to import restrictions under any law in force are prohibited goods under Section 2(33) of the Customs Act, 1962, and their improper importation attracts the penalty regime under Section 112(i).

Issues: (i) Whether the seized board resolutions, legal notes, valuation reports and related documents constituted incriminating material for assessment under Section 153A of the Income-tax Act, 1961; (ii) Whether the firm's prior asset sale and alteration of partners' capital interests violated the conditions for succession under Section 47(xiii) of the Income-tax Act, 1961.

Issue (i): Whether the seized board resolutions, legal notes, valuation reports and related documents constituted incriminating material for assessment under Section 153A of the Income-tax Act, 1961.

Analysis: In a search assessment of the concluded assessment, additions require incriminating material found during the search. The seized records concerned the ordinary course of the firm's conversion, its legal constitution, valuation and prior transactions; they did not disclose any undisclosed income or evidence warranting the impugned addition.

Conclusion: The documents were not incriminating material, and the assessment proceedings under Section 153A were not maintainable. This issue is decided in favour of the Assessee.

Issue (ii): Whether the firm's prior asset sale and alteration of partners' capital interests violated the conditions for succession under Section 47(xiii) of the Income-tax Act, 1961.

Analysis: The conditions under provisos (a) and (c) to Section 47(xiii) require that the firm's business assets and liabilities immediately before succession become those of the company, and that partners receive no consideration or benefit other than shares in the company. The assets and liabilities existing immediately before succession passed unchanged to the company, and the partners received shares corresponding to their pre-succession interests. A sale of assets and changes in capital-sharing ratios effected before succession neither altered the assets and liabilities immediately before succession nor amounted to prohibited consideration on conversion.

Conclusion: The conditions of Section 47(xiii) were satisfied; the succession was not rendered a taxable transfer, and the Section 80-IA deduction could not be denied on that basis. This issue is decided in favour of the Assessee.

Final Conclusion: The additions founded on the search assessment and on treating the firm's succession as a taxable transfer lack legal basis.

Issues: (i) Whether exemption under Section 10(23FB) is available to a SEBI-registered venture capital fund when its separately maintained contributory schemes lack individual SEBI registration; (ii) Whether shares held by trustees in their fiduciary capacity for the fund are includible in determining whether a venture capital undertaking is an associated company.

Issue (i): Whether exemption under Section 10(23FB) is available to a SEBI-registered venture capital fund when its separately maintained contributory schemes lack individual SEBI registration.

Analysis: Section 10(23FB) exempts income of a qualifying venture capital fund from investments in venture capital undertakings. The regulatory scheme requires registration of the trust as the venture capital fund; Regulations 3(1) and 7 do not require each scheme operated by that registered fund to obtain a separate registration. Scheme-specific submission of the private placement memorandum to SEBI does not convert each scheme into an independently registrable fund.

Conclusion: Separate SEBI registration for each contributory scheme is not required, and the assessee is eligible for exemption under Section 10(23FB) on this ground.

Issue (ii): Whether shares held by trustees in their fiduciary capacity for the fund are includible in determining whether a venture capital undertaking is an associated company.

Analysis: Regulation 12(c) prohibits a venture capital fund from investing in an associated company, which is identified by reference to shareholding exceeding 15% held by trustees, settlors, sponsors or directors. That test concerns their personal shareholding and addresses conflicts arising from their own interest. Shares acquired and held by trustees solely for and on behalf of the fund are held in a fiduciary capacity and cannot be aggregated with their personal holdings. A subsisting SEBI registration satisfies the statutory definition of a venture capital fund, absent any regulatory action for breach of the governing regulations.

Conclusion: Shares held by trustees on behalf of the fund are excluded from the associated-company test; the investments did not disentitle the assessee to exemption under Section 10(23FB).

Final Conclusion: The registered fund's scheme structure and its investments, assessed by reference to trustees' personal rather than fiduciary holdings, preserve the claimed statutory exemption.

Ratio Decidendi: Where SEBI registration is granted to a trust as a venture capital fund, separate schemes need not be independently registered, and fiduciary shareholding held for the fund cannot be treated as trustees' personal holding for the associated-company restriction.

Issues: (i) Whether penalty for the claim of deduction under Section 80G in respect of CSR expenditure was sustainable; (ii) Whether penalty could be levied on deduction of education cess claimed under binding precedent when the return was filed but subsequently disclaimed following a retrospective amendment; and (iii) Whether penalty could be levied on a transfer-pricing royalty adjustment after an Advance Pricing Agreement was finalised and a timely modified return was furnished.

Issue (i): Whether penalty for the claim of deduction under Section 80G in respect of CSR expenditure was sustainable.

Analysis: The underlying addition had been deleted by the Tribunal. Further, the claim was supported by binding Tribunal decisions, and initiation or levy of penalty contrary to such binding decisions was impermissible.

Conclusion: Penalty on the CSR deduction claim was unsustainable, in favour of the assessee.

Issue (ii): Whether penalty could be levied on deduction of education cess claimed under binding precedent when the return was filed but subsequently disclaimed following a retrospective amendment.

Analysis: The claim was made when it was supported by a binding jurisdictional precedent. The retrospective amendment and reversal of that precedent occurred after the return had been furnished. A claim so made and later relinquished could not attract penal consequences for under-reporting or misreporting.

Conclusion: Penalty on the education cess claim was unsustainable, in favour of the assessee.

Issue (iii): Whether penalty could be levied on a transfer-pricing royalty adjustment after an Advance Pricing Agreement was finalised and a timely modified return was furnished.

Analysis: Upon execution of the Advance Pricing Agreement and filing of the modified return within the prescribed period, Section 92CD required modification of total income in accordance with that agreement. The royalty deduction in the return and the assessment would consequently align. The conditions for under-reporting under Section 270A(2) were not attracted, and complete disclosure of the royalty transaction excluded misrepresentation or suppression under Section 270A(9). Penalty based on an adjustment resolved under the statutory APA framework would defeat that framework's object of reducing litigation.

Conclusion: Penalty on the transfer-pricing royalty adjustment was unsustainable, in favour of the assessee.

Final Conclusion: The statutory requirements for imposing penalty for under-reporting or misreporting were absent in respect of all three adjustments.

Ratio Decidendi: Penalty for under-reporting or misreporting cannot be imposed where the claim was fully disclosed and legally supported when made, including where a subsequent Advance Pricing Agreement and timely modified return govern the relevant adjustment.

Issues: Whether additional evidence comprising a Departmental Valuation Officer's valuation report for the jointly purchased property should be admitted and the addition under section 56(2)(x) remitted for fresh adjudication.

Analysis: The additional valuation report determined the fair market value of the same property and had a direct bearing on the difference between the purchase consideration and stamp duty value forming the basis of the addition. Its verification was required at the assessment stage, and its admission was not opposed by the Revenue.

Conclusion: The additional evidence is admitted, and the issue concerning the addition is restored to the Assessing Officer for verification and fresh adjudication after affording reasonable opportunity of hearing; all merits contentions remain open.

Issues: Whether a bona fide purchaser of property under provisional attachment is entitled to its release where the sale consideration remains available for substitution.

Analysis: The provisional attachment pre-dated the agreement for sale, but the seller suppressed that attachment despite publication of a public notice and during proceedings culminating in a court-directed conveyance. The purchaser acquired registered title after paying the agreed consideration, while the unpaid balance of Rs. 6,95,62,552 remained with the court-appointed receiver. These peculiar circumstances established the purchaser's bona fides and preserved an identifiable amount capable of being attached in substitution for the property.

Conclusion: The bona fide purchaser is entitled to release of the property, with liberty to the Enforcement Directorate to seek attachment of the sale consideration lying with the court-appointed receiver as substituted property.

Issues: (i) Whether the proposed transfer of the entire proprietorship business to an LLP without consideration constitutes a supply under GST; (ii) Whether such transfer is a supply of goods or services; (iii) Whether the transfer is exempt as a transfer of a going concern under Entry No. 2 of Notification No. 12/2017-Central Tax (Rate) dated 28.06.2017; and (iv) Whether GST applies to stock and assets if the business does not qualify as a going concern.

Issue (i): Whether the proposed transfer of the entire proprietorship business to an LLP without consideration constitutes a supply under GST.

Analysis: Section 7 has an inclusive scope, and includes activities specified in Schedule I even when made without consideration. The proposed arrangement involves transfer of the entire business, including its assets, liabilities, employees, rights and customer relationships, to enable its uninterrupted continuation by the transferee.

Conclusion: The proposed transfer of the business constitutes a supply under GST.

Issue (ii): Whether such transfer is a supply of goods or services.

Analysis: A business transferred as a going concern is not treated as a supply of goods under Entry No. 4(c) of Schedule II. Since the transfer of the business as a whole is not a transfer of goods, it falls within the residual definition of services under Section 2(102).

Conclusion: The transaction is a supply of services.

Issue (iii): Whether the transfer is exempt as a transfer of a going concern under Entry No. 2 of Notification No. 12/2017-Central Tax (Rate) dated 28.06.2017.

Analysis: Entry No. 2 grants a nil-rate exemption for services by way of transfer of a going concern as a whole or an independent part thereof. Although the proposed arrangement contemplates transfer of the complete operational business, the material furnished did not establish that the business satisfies the requisite going-concern status.

Conclusion: The exemption under Entry No. 2 is available only if the business qualifies as a going concern by all applicable standards.

Issue (iv): Whether GST applies to stock and assets if the business does not qualify as a going concern.

Analysis: Where the business is not transferred as a going concern, Entry No. 4(c) of Schedule II treats goods forming part of the business assets as deemed supplies upon cessation as a taxable person.

Conclusion: If the business does not qualify as a going concern, the transferred stock and assets constitute a supply of goods taxable at the rates applicable to the respective goods.

Final Conclusion: The business transfer is classified as a service, but the nil-rate treatment depends upon substantiation that the transferred business is a going concern; failing that status, goods forming part of the transfer attract GST at their applicable rates.

Ratio Decidendi: Transfer of an entire business as a going concern is a supply of services, and the exemption for such transfer applies only where the going-concern character of the business is established.

Issues: (i) Whether battery-operated e-rickshaws, e-carts, hydraulic e-carts and e-scooters, supplied with or without batteries, are classifiable under tariff headings 8703 and 8711 respectively and taxable at 5 per cent GST; (ii) Whether the question concerning refund of accumulated input tax credit arising from inverted duty structure falls within the scope of advance ruling.

Issue (i): Whether battery-operated e-rickshaws, e-carts, hydraulic e-carts and e-scooters, supplied with or without batteries, are classifiable under tariff headings 8703 and 8711 respectively and taxable at 5 per cent GST.

Analysis: Three-wheeled e-rickshaws, e-carts and hydraulic e-carts fall under tariff item 87038040, while electrically propelled e-scooters fall under tariff item 87116020. An electrically operated vehicle derives traction solely from electrical energy and has no alternate source of propulsion. Where the motor, inverter, control module, drivetrain and vehicle body are fitted, the absence of a battery at the time of supply does not alter its essential character as an electrically operated vehicle. Serial No. 441 of Schedule I of Notification No. 09/2025-Central Tax (Rate) dated 17.09.2025 covers electrically operated two- and three-wheeled vehicles.

Conclusion: The specified three-wheeled vehicles are classifiable under tariff heading 8703 and the e-scooter under tariff heading 8711, whether supplied with or without batteries, and all are taxable at 5 per cent GST.

Issue (ii): Whether the question concerning refund of accumulated input tax credit arising from inverted duty structure falls within the scope of advance ruling.

Analysis: Section 97(2) of the Central Goods and Services Tax Act, 2017 specifies the questions that may be raised for advance ruling. Entitlement to refund of accumulated input tax credit under Section 54(3)(ii) does not fall within those specified categories.

Conclusion: The question seeking determination of refund entitlement on account of inverted duty structure is outside the statutory scope of advance ruling and was not admitted.

Final Conclusion: The ruling establishes the applicable classification and concessional GST treatment of the specified electric vehicles, while refund entitlement remains outside the advance-ruling jurisdiction.

Ratio Decidendi: A vehicle designed to run solely on electrical energy retains its character as an electrically operated vehicle notwithstanding that its battery is not fitted at the time of supply.