Issues: Whether interest could be collected on integrated goods and services tax levied under Section 3(7) of the Customs Tariff Act, 1975 in the absence of a charging provision authorising such interest.

Analysis: The levy concerned imports made between October 2017 and March 2018. The challenge was governed by the absence of a charging provision under the Customs Tariff Act, 1975 or the Customs Act, 1962 for imposition of interest on the integrated goods and services tax so levied. The issue stood covered by prior decisions of the Court.

Conclusion: Collection of interest on the integrated goods and services tax levy without a charging provision was impermissible, in favour of the assessee.

Issues: (i) Classification of the three consignments as stainless-steel scrap under CTH 7204 2190 or prime material under CTH 7220 2090, and the consequential enhancement of value; (ii) Sustainability of absolute confiscation and penalties imposed in relation to the three consignments, including penalties on the directors; and (iii) Entitlement to waiver of demurrage and detention charges for the detained consignments.

Issue (i): Classification of the three consignments as stainless-steel scrap under CTH 7204 2190 or prime material under CTH 7220 2090, and the consequential enhancement of value.

Analysis: Paragraph 2.32 of the Foreign Trade Policy and Paragraph 2.51(d) of the Handbook of Procedures permit import of metallic scrap in unshredded form, subject to the prescribed conditions. The accredited pre-shipment inspection certificates described all consignments as stainless-steel melting scrap and were neither disproved nor found fabricated. For the first consignment, the Chartered Engineer's certificate was accepted at clearance and no subsequent chemical test contradicted it. Statements relied upon for a contrary classification lacked admissibility because the procedure under Section 138B of the Customs Act, 1962 was not followed; moreover, testing or reports for subsequent consignments could not establish the nature of an earlier separately assessed consignment.

Analysis: For the second and third consignments, the Chartered Engineer's visual reports required laboratory confirmation, while the laboratory reports did not disclose testing against the requisite BIS parameters or a reliable chemical basis for treating the goods as prime material. Uniform size, orderly stacking, and physical appearance do not by themselves exclude scrap classification. The burden of proof remained unmet, and no evidence established that the declared transaction value was inaccurate or that any additional consideration had been paid.

Conclusion: All three consignments are stainless-steel scrap classifiable under CTH 7204 2190, not prime material under CTH 7220 2090; the enhanced values are unsustainable. This issue is decided in favour of the assessee.

Issue (ii): Sustainability of absolute confiscation and penalties imposed in relation to the three consignments, including penalties on the directors.

Analysis: The first consignment had been released after assessment and was unavailable for confiscation. The failure to establish misclassification, prohibited import, or undervaluation also removed the basis for confiscation and penalties for all consignments. No specific material established the directors' personal role or justified penalties under Sections 112(a) and 114AA of the Customs Act, 1962.

Conclusion: The orders of absolute confiscation and all penalties against the importer and the directors are set aside. This issue is decided in favour of the assessee.

Issue (iii): Entitlement to waiver of demurrage and detention charges for the detained consignments.

Analysis: Regulation 6(1)(l) of the Handling of Cargo in Customs Areas Regulations, 2009 prohibits a Customs Cargo Service Provider from charging rent or demurrage on goods detained by the proper officer, subject to other applicable law. The detained status of the consignments attracted this protection.

Conclusion: Complete waiver of demurrage and detention-related charges is required to be issued for the detained consignments. This issue is decided in favour of the assessee.

Final Conclusion: The goods retain their declared scrap classification, the valuation, confiscatory, and penal consequences fail, and the third consignment may be presented for clearance for home consumption.

Ratio Decidendi: Where unrebutted pre-shipment certification supports classification as scrap and the Revenue produces no reliable parameter-based chemical testing or admissible corroborative evidence, reclassification as prime material and the consequential enhancement of value, confiscation, and penalties cannot be sustained.

Issues: Whether a secured creditor validly and timely exercised its option to realise its security interest outside the liquidation estate despite the entries in its claim form, participation in the stakeholders' consultation committee, and a subsequent communication after rejection of a compromise scheme.

Analysis: Section 52 of the Insolvency and Bankruptcy Code, 2016 distinguishes the existence of a security interest from the secured creditor's statutory election to realise that security outside liquidation. Regulation 21A of the Insolvency and Bankruptcy Board of India (Liquidation Process) Regulations, 2016 required a clear communication of that election within thirty days from the liquidation commencement date, failing which the secured assets were deemed relinquished to the liquidation estate. The claim form disclosed 'NIL' against details of security, while the response of 'No' to relinquishment did not clearly communicate an election to realise the security. The first clear written request for exclusion and delivery of the assets was made more than six months after liquidation commenced and after the compromise scheme had failed.

Analysis: Participation and voting in the stakeholders' consultation committee were relevant conduct when read with the incomplete claim-form disclosure and delayed communication. Under Regulation 31A(2), a secured creditor that has not relinquished its security interest cannot be part of the committee. Consideration of a compromise or arrangement under Section 230 of the Companies Act, 2013, including under Regulation 39BA, did not suspend or extend the period for exercising the statutory option. Absence of competing claims over the assets did not excuse non-compliance with the prescribed election and timeline.

Conclusion: The secured creditor did not validly exercise its option to realise the secured assets outside the liquidation estate within the prescribed period; its belated communication could not revive that option, and the assets were rightly treated as part of the liquidation estate.

Issues: (i) Whether civil work executed by a contractor through its own workers and billed on measured-work rates constituted Manpower Supply Service liable to service tax under the Reverse Charge Mechanism; (ii) Whether the confirmed demand was barred by limitation in the absence of suppression of facts.

Issue (i): Whether civil work executed by a contractor through its own workers and billed on measured-work rates constituted Manpower Supply Service liable to service tax under the Reverse Charge Mechanism.

Analysis: Reverse-charge liability depended on the true character of the contracted service. The work order required execution of civil works at the railway siding, engaged the contractor's own workers, and prescribed payment according to the quantity of work completed, including cubic-metre rates. It did not provide for consideration based on the number of workers or man-days supplied. These features established a works-execution arrangement rather than supply of manpower.

Conclusion: The service was not Manpower Supply Service, and the service-tax demand under the Reverse Charge Mechanism was unsustainable. The issue was decided in favour of the assessee.

Issue (ii): Whether the confirmed demand was barred by limitation in the absence of suppression of facts.

Analysis: The transactions were recorded in the assessee's books of account, from which the demand was quantified. Further, as the assessee manufactured dutiable goods, service tax paid under reverse charge would have been available as Cenvat credit, rendering the exercise revenue-neutral. These circumstances did not support suppression of facts.

Conclusion: The extended period of limitation was unavailable and the demand was time-barred. The issue was decided in favour of the assessee.

Final Conclusion: The confirmed service-tax liability was unsustainable both because the contracted activity was not manpower supply and because invocation of the extended limitation period was unjustified.

Ratio Decidendi: Reverse-charge service-tax liability cannot be sustained where contractual and billing evidence establishes execution of measured civil work rather than supply of manpower, and the extended limitation period cannot be invoked without suppression of material facts.

Issues: (i) Whether fund allocations received through NEC constituted consideration for taxable services rendered by the appellant; (ii) Whether amounts relating to work performed for NTPC were liable to service tax; (iii) Whether the extended period of limitation could be invoked.

Issue (i): Whether fund allocations received through NEC constituted consideration for taxable services rendered by the appellant.

Analysis: The allocations were funds transmitted by the Ministry of Water Resources through NEC for the appellant's activities. No service provider-recipient relationship existed between the appellant and NEC, and the allocations could not be characterised as consideration for a taxable service.

Conclusion: The demand based on fund allocations through NEC was unsustainable, in favour of the assessee.

Issue (ii): Whether amounts relating to work performed for NTPC were liable to service tax.

Analysis: Circular No. 96/7/2007-ST dated 23.08.2007 clarifies that statutory and sovereign functions performed by public authorities, with prescribed fees remitted to the Government, are not services rendered for consideration. The appellant performed sovereign functions, remitted the collections to the Government, and retained no amount; NTPC had also not paid the service-tax amount shown in the invoices.

Conclusion: The demand arising from the NTPC transactions was not legally sustainable, in favour of the assessee.

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

Analysis: The appellant, being part of the Ministry of Water Resources, entertained a bona fide belief that its sovereign functions were outside service-tax liability. The principal demand related to governmental grants, and service tax had not been collected in the NTPC transactions. These circumstances did not establish suppression of facts.

Conclusion: Invocation of the extended period was invalid, in favour of the assessee.

Final Conclusion: The confirmed service-tax demands failed on merits and, independently, insofar as raised for the extended period, on limitation.

Issues: (i) Whether Bhujia and Cheese Balls cleared in sealed retail packages qualify for the specific nil-rate exemptions under Sl. No. 29 of Notification No. 03/2006-C.E. dated 01.03.2006 and Sl. No. 37 of Notification No. 12/2012-C.E. dated 17.03.2012; (ii) Whether classification under Tariff Item 2106 90 99 excludes the goods from exemption entries referring to Tariff Sub-heading 2106 90.

Issue (i): Whether Bhujia and Cheese Balls cleared in sealed retail packages qualify for the specific nil-rate exemptions under Sl. No. 29 of Notification No. 03/2006-C.E. dated 01.03.2006 and Sl. No. 37 of Notification No. 12/2012-C.E. dated 17.03.2012.

Analysis: Sl. No. 29 and Sl. No. 37 specifically cover Bhujia, namkeen and similar edible preparations in ready-for-consumption form without imposing a restriction concerning sealed-container clearances. Bhujia is expressly named in Sl. No. 37. Cheese Balls, having the character of savoury ready-to-consume preparations, answer the description of namkeen or similar edible preparations under the common parlance test.

Analysis: On the specific-over-general principle, the residual entries for ready-to-eat packaged food under Sl. No. 30 and food preparations not cleared in sealed containers under Sl. No. 38 apply only where the goods do not satisfy the specific exemption description. The sealed-container condition expressly confined to Sl. No. 38 cannot be imported into Sl. No. 37. The Board circular under the earlier notification likewise recognises that packaged goods covered by the specific description retain the nil rate.

Conclusion: Bhujia and Cheese Balls qualify for the respective nil-rate exemptions notwithstanding their clearance in sealed retail packages; the duty demands and consequential interest and penalties are unsustainable. This conclusion is in favour of the assessee.

Issue (ii): Whether classification under Tariff Item 2106 90 99 excludes the goods from exemption entries referring to Tariff Sub-heading 2106 90.

Analysis: Under the tariff classification hierarchy, Tariff Item 2106 90 99 forms part of Tariff Sub-heading 2106 90 and is not mutually exclusive of it. Supplementary Note 6 to Chapter 21 confirms that Tariff Item 2106 90 99 includes namkeen, Bhujia and related preparations. The use of the broader sub-heading in the exemption entries does not justify importing an exclusion for goods classified under its eight-digit tariff item.

Conclusion: Classification under Tariff Item 2106 90 99 does not prevent the goods from falling within the reference to Tariff Sub-heading 2106 90 in the specific exemption entries. This conclusion is in favour of the assessee.

Final Conclusion: The exemption scheme assigns the nil rate to specifically described savoury and similar ready-for-consumption preparations, while the residual packaged-food entries operate only for goods outside those specific descriptions.

Ratio Decidendi: A specific nil-rate exemption for named or similar ready-for-consumption edible preparations prevails over residual entries, and a sealed-container restriction stated only in a separate entry cannot be imported into that specific exemption; an eight-digit tariff item remains within its parent tariff sub-heading.

Issues: Whether a secured creditor with a security interest registered with CERSAI has priority over an unregistered CGST charge and whether the restraint on issuance of NOC for the secured assets was valid.

Analysis: Section 26E of the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 accords first priority to the dues of a secured creditor whose security interest is registered with CERSAI. The petitioner bank's security interest stood registered from 20.12.2020, whereas the revenue authority failed to establish registration of its charge with CERSAI. The provisional attachment under Section 83 of the Central Goods and Services Tax Act, 2017 did not displace the bank's statutory priority.

Conclusion: The petitioner bank's registered security interest has priority over the revenue dues, and the letter restraining issuance of NOC in respect of the secured flats was invalid.

Issues: (i) Whether the Supreme Court's deferral direction concerning delayed adjudication required the writ petition to remain pending; (ii) Whether, following the adjudication orders, the petitioner should be relegated to the statutory appellate remedy.

Issue (i): Whether the Supreme Court's deferral direction concerning delayed adjudication required the writ petition to remain pending.

Analysis: The deferral direction was issued in the context of matters concerning pending adjudication and the larger issue of delay. The provisional assessments in question had culminated in adjudication orders, including an order that pre-dated the writ petition. The controversy was therefore no longer confined to delayed finalisation of provisional assessments.

Conclusion: The issue was answered in the negative; the writ petition was not required to remain pending awaiting the Supreme Court proceedings.

Issue (ii): Whether, following the adjudication orders, the petitioner should be relegated to the statutory appellate remedy.

Analysis: Section 128(1) of the Customs Act, 1962 provides an efficacious appeal against the adjudication orders. The appellate forum can consider the legality of those orders, the legal effect of the alleged delay, and consequential claims concerning the securities furnished. No exceptional circumstance justified bypassing that remedy. The material non-disclosure of the pre-existing adjudication order also supported refusal of discretionary writ jurisdiction.

Conclusion: The issue was answered in the affirmative; the challenges and available contentions must be pursued through the statutory appellate remedy.

Final Conclusion: The legality of the adjudication orders, the consequences of any delay in their making, and related claims concerning bank guarantees remain open for determination by the competent appellate forum in accordance with law.

Ratio Decidendi: Where appealable adjudication orders have been passed and no exceptional circumstance is shown, writ jurisdiction should not bypass an efficacious statutory appellate remedy.

Issues: Whether interest on the refund of amounts deposited during investigation is payable from the date of deposit until the date of refund, notwithstanding that the Revenue's challenge to the order setting aside the demand was dismissed subsequently.

Analysis: The confirmed demand had been set aside, with the result that the investigation deposit was not payable from inception. The amount was deposited in 2008 and retained until its refund in 2024. Applying the established principle governing interest on delayed refund of investigation deposits, the subsequent dismissal of the Revenue's challenge did not justify retention of money that was never lawfully due without interest for the period of such retention.

Conclusion: Interest is payable to the assessee on the refunded investigation deposit from the date of deposit until the date of refund.

Issues: Whether the Supreme Court ruling concerning State legislative competence over intoxicating liquors supported an additional ground challenging the service-tax demand on job-work production.

Analysis: The constitutional ruling relied upon concerned the respective legislative fields relating to intoxicating liquors, including the scope of State power under Entry 8 of List II and Parliamentary control over industries under Entry 52 of List I. It did not determine the levy of service tax on services used for production of goods on a job-work basis. A precedent governs what it actually decides and cannot be extended to a distinct service-tax issue not considered therein. Reliance on an otherwise relevant decision could also be made during hearing without a separate application.

Conclusion: The cited constitutional ruling did not establish that the service-tax demand or jurisdiction to levy service tax on the job-work service was invalid.

Issues: Whether the Tribunal had jurisdiction to entertain an appeal concerning gold chains brought into India by an international passenger.

Analysis: The first proviso to Section 129A(1) expressly excludes the Tribunal's appellate jurisdiction over orders relating to goods imported or exported as baggage. The gold chains were brought by the appellant as an arriving international passenger; their recovery from his person, alleged non-declaration, intended use, concealment, invoice, or duty-evasion allegations concern the merits and do not change the goods' character as baggage. Section 129DD provides revision before the Central Government for such orders.

Conclusion: The impugned order related to goods imported as baggage, and the Tribunal therefore lacked appellate jurisdiction; the available recourse is revision under Section 129DD of the Customs Act, 1962.

Issues: (i) Whether e-governance portal and data-digitisation services provided to government departments and educational institutions were taxable as OIDAR, business auxiliary, or business support services before 1 July 2012; (ii) Whether portal services supplied to universities and educational institutions after 1 July 2012 were exempt from service tax; and (iii) Whether interest earned on fixed deposits from temporarily retained collections was liable to service tax.

Issue (i): Whether e-governance portal and data-digitisation services provided to government departments and educational institutions were taxable as OIDAR, business auxiliary, or business support services before 1 July 2012.

Analysis: OIDAR requires the service provider to provide access to data possessed by it. The appellant merely created and operated a network enabling government officers and citizens to access data owned by the State Government; it did not provide access to its own data. The support rendered to State departments, universities, and educational institutions was directed to governmental and educational functions and was not supplied to entities engaged in business or commerce.

Conclusion: The services were not taxable as OIDAR, business auxiliary, or business support services for the pre-negative-list period, in favour of the assessee.

Issue (ii): Whether portal services supplied to universities and educational institutions after 1 July 2012 were exempt from service tax.

Analysis: Although services were generally taxable after the negative-list regime commenced, portal services supplied to universities and educational institutions fell within Entry 9(d) of Exemption Notification No. 25/2012-ST dated 20.06.2012.

Conclusion: The portal services provided to universities and educational institutions were exempt from service tax after 1 July 2012, in favour of the assessee.

Issue (iii): Whether interest earned on fixed deposits from temporarily retained collections was liable to service tax.

Analysis: The fixed-deposit interest arose because amounts collected towards government fees, educational fees, utility bills, and premiums were remitted after the stipulated short interval. Interest represented the time value of money paid by the bank for the deposits and was not consideration for any service rendered by the appellant.

Conclusion: Fixed-deposit interest was not exigible to service tax under either the pre-negative-list or post-negative-list regime, in favour of the assessee.

Final Conclusion: The disputed e-governance and educational-service receipts either did not constitute taxable services or were exempt, while fixed-deposit interest lay outside the charge of service tax.

Issues: (i) Whether separately billed food and beverages supplied by room/grand-room service were taxable restaurant or accommodation services; (ii) Whether consideration for exclusive branding and display of liquor brands constituted taxable sponsorship/promotional activity; (iii) Whether electricity charges recovered at actual consumption from tenants formed taxable consideration; (iv) Whether the demand beyond the normal limitation period was sustainable.

Issue (i): Whether separately billed food and beverages supplied by room/grand-room service were taxable restaurant or accommodation services.

Analysis: Section 65(105)(zzzzv) of the Finance Act, 1994 confined restaurant service to serving food or beverages in the premises of an air-conditioned restaurant licensed to serve alcohol. Hotel rooms were not restaurant premises, and the food was separately invoiced without evidence that its value formed part of the room tariff. Such separately charged food was a sale/transfer of goods excluded from service under Section 65B(44) of the Finance Act, 1994.

Conclusion: The room and grand-room food and beverage receipts were not taxable services. In favour of the assessee.

Issue (ii): Whether consideration for exclusive branding and display of liquor brands constituted taxable sponsorship/promotional activity.

Analysis: The agreements required exclusive branding and promotion of specified liquor brands and mandatory display of branded accessories. The receipts were therefore consideration for promotional and branding activity, rather than trade margins arising solely from liquor sales. For the pre-negative-list period, the arrangements fell within the statutory scope of sponsorship; for the post-negative-list period, they were services under Section 65B(44) of the Finance Act, 1994 and were not covered by Section 66D of that Act.

Conclusion: The branding-related receipts constituted taxable promotional activity and not mere trading income. Against the assessee.

Issue (iii): Whether electricity charges recovered at actual consumption from tenants formed taxable consideration.

Analysis: The charges represented actual electricity consumption recorded through sub-meters, collected from tenants and remitted to electricity suppliers. They were not consideration for renting services. Rule 5(1) of the Service Tax (Determination of Value) Rules could not include such reimbursement in taxable value, having been held ultra vires.

Conclusion: Electricity charges recovered on actual-consumption basis were not taxable consideration. In favour of the assessee.

Issue (iv): Whether the demand beyond the normal limitation period was sustainable.

Analysis: The notice did not invoke the proviso to Section 73(1) of the Finance Act, 1994, and the record did not establish a deliberate act of suppression or other conduct evidencing intent to evade tax. Mere non-declaration or omission did not establish wilful suppression.

Conclusion: Recovery beyond the normal limitation period was unsustainable; the sponsorship-service demand could survive only for the normal period. In favour of the assessee.

Final Conclusion: Only the service-tax liability on sponsorship/promotional activity for the normal limitation period survives; the remaining impugned demands are set aside.

Issues: (i) Taxability of pre-July 2012 construction services and entitlement to abatement and recipient-side tax liability; (ii) Valuation of post-July 2012 works contract services under Rule 2A and entitlement to abatement and recipient-side tax liability; (iii) Inclusion of free-of-cost materials supplied by customers in the taxable value of works contracts; (iv) Classification of the services treated as exclusive service contracts; (v) Appropriation of service tax allegedly deposited during investigation; (vi) Validity of penalty for non-payment of service tax and non-filing of returns.

Issue (i): Taxability of pre-July 2012 construction services and entitlement to abatement and recipient-side tax liability.

Analysis: Construction of a hospital is commercial or industrial construction service unless evidence establishes that it was intended to be a charitable hospital. The applicable abatement had already been extended, and the tax liability was correspondingly reduced wherever the recipient was required to discharge part of the tax.

Conclusion: The demand for the pre-July 2012 period was sustained; against the assessee.

Issue (ii): Valuation of post-July 2012 works contract services under Rule 2A and entitlement to abatement and recipient-side tax liability.

Analysis: Rule 2A of the Service Tax (Determination of Value) Rules, 2006 permits exclusion of the actual value of goods where established, or valuation on the prescribed presumptive basis. The assessment had allowed the applicable abatement and reduced provider-side liability wherever reverse-charge liability applied. No material established that the actual value of goods exceeded the abatement already allowed.

Conclusion: The valuation and demand for the post-July 2012 works contract services were sustained; against the assessee.

Issue (iii): Inclusion of free-of-cost materials supplied by customers in the taxable value of works contracts.

Analysis: Materials supplied free of cost by customers do not form part of the gross amount charged for determining the taxable value of a works contract.

Conclusion: The service tax demand attributable to free-of-cost customer-supplied materials was set aside; in favour of the assessee.

Issue (iv): Classification of the services treated as exclusive service contracts.

Analysis: The assertion that the services classified as exclusive service contracts were works contracts was unsupported by material in the appeal.

Conclusion: The classification and corresponding demand were sustained; against the assessee.

Issue (v): Appropriation of service tax allegedly deposited during investigation.

Analysis: The alleged deposits require verification as to whether they were paid as service tax.

Conclusion: Any amounts verified as service tax deposits shall be appropriated against the confirmed demand; in favour of the assessee to that extent.

Issue (vi): Validity of penalty for non-payment of service tax and non-filing of returns.

Analysis: The assessee neither paid service tax nor filed returns or declared the services, and the transactions emerged only through investigation.

Conclusion: The penalty under Section 76 of the Finance Act, 1994 was sustained; against the assessee.

Final Conclusion: The tax component attributable to customer-supplied free-of-cost materials is excluded, while the remaining valuation, classification, and penalty findings stand, with adjustment of verified tax deposits.

Ratio Decidendi: Free-of-cost materials supplied by the recipient cannot be included in the gross amount charged for valuation of works contract service.

Issues: Whether an assessment order founded on notices uploaded only on the GST portal, without service through registered post, is invalid for breach of the principles of natural justice.

Analysis: The notices and hearing intimations were hosted under the portal's "View Additional Notices and Orders" tab, without physical service through RPAD. SMS and email reminders did not cure the absence of effective service, particularly where service through RPAD was required or advised in addition to electronic communication. The omission deprived the assessee of a meaningful opportunity to file objections and produce supporting records before the assessment was made.

Conclusion: The assessment order was vitiated by breach of the principles of natural justice owing to ineffective service of the statutory notices and hearing intimations.

Issues: Whether a contractor under a fixed-price contract entered before the introduction of GST is entitled to reimbursement of GST incurred during contract performance, and the extent of such reimbursement.

Analysis: The contractual clauses required the quoted rates to include duties and taxes applicable at the time of bidding and fixed those rates for the contract duration. GST came into force after execution of the tender and agreement and could not have been factored into the bid price. The project authorities had accepted the validity of GST reimbursement. GST was treated as an indirect tax under Section 15 of the Central Goods and Services Tax Act, 2017. However, VAT remained payable under the contract, and the GST reimbursement required adjustment by considering the differential between VAT and GST applicable to goods supplied after 14 December 2017.

Conclusion: The contractor is entitled to GST reimbursement only after recalculation accounting for the applicable VAT and the differential between VAT and GST.

Issues: Whether grounds were established under Section 9 of the Arbitration and Conciliation Act, 1996 for securing the disputed refund amount pending arbitration.

Analysis: Section 9 permits interim measures to secure the amount in dispute, but such relief requires more than a disputed monetary claim and must be justified by circumstances indicating that enforcement of a future award may become difficult. The registered deed of cancellation, the cheque issued for the identified principal amount, and its dishonour for insufficient funds prima facie supported the claim. The respondent's financial and contractual disputes, negligible disclosed bank balances, pending enforcement proceedings, and assignments of redevelopment rights collectively created a genuine concern regarding recoverability. The measure sought would only preserve the disputed amount and would not determine the underlying liability, which remains for arbitral determination. The balance of convenience favoured preservation of the amount.

Conclusion: Interim security of the identified principal amount by deposit was warranted pending arbitration, without adjudicating the parties' substantive rights or liabilities.

Issues: Whether a shortage of Cenvat-credit availed MS ingots, without corroborative evidence, establishes clandestine removal and justifies a duty demand.

Analysis: Clandestine removal is a serious charge requiring sufficient tangible and corroborative evidence. Mere shortage of inputs does not, by itself, establish clandestine removal. No evidence of transport, sale, buyer transactions, monetary consideration, or financial flow-back was produced to connect the input shortage with illicit removal. The facts could, at most, indicate improper accountal of inputs.

Conclusion: The allegation of clandestine removal was not established and the duty demand based solely on the input shortage could not be sustained.

Issues: Whether differential National Calamity Contingent Duty on chewing tobacco for the post-GST period could be demanded by applying MRP-based valuation under Section 4A of the Central Excise Act, 1944 pursuant to Notification No. 49/2008-CE (N.T.) dated 24.12.2008.

Analysis: The settled position applicable to the disputed period was that the MRP-valuation mechanism under the notification was not an operating provision after 01.07.2017, as the notification continued to refer to the repealed Central Excise Tariff Act, 1985 and was not correspondingly amended. The settled position had also been affirmed on appeal.

Conclusion: The differential NCCD demand founded on Section 4A MRP-based valuation for the disputed period is unsustainable.

Issues: (i) Validity of State GST adjudication and rectification orders for a period for which Central GST proceedings had already been initiated; (ii) Validity of the ex parte Central GST adjudication order made without a fresh communicated hearing after the dates previously fixed.

Issue (i): Validity of State GST adjudication and rectification orders for a period for which Central GST proceedings had already been initiated.

Analysis: The Central GST show-cause notice had been issued before the State GST notice for the same period. The later State GST adjudication could not stand alongside the first-initiated Central GST proceedings, and the rectification order consequential to that adjudication also could not survive.

Conclusion: The State GST adjudication order and consequential rectification order were invalid and were set aside, in favour of the assessee.

Issue (ii): Validity of the ex parte Central GST adjudication order made without a fresh communicated hearing after the dates previously fixed.

Analysis: Natural justice requires an effective opportunity of hearing before adjudication. Although dates had earlier been fixed and a reply had been filed, the order was passed substantially later without communicating a fresh hearing date, resulting in ex parte adjudication without an effective opportunity of hearing.

Conclusion: The Central GST ex parte adjudication order was invalid for breach of natural justice and was set aside; a fresh hearing and speaking order were required, in favour of the assessee.

Final Conclusion: For the same taxable period, first-initiated Central GST proceedings prevail over later State GST adjudication, while any fresh Central GST determination must follow an effective hearing and a reasoned decision.