Adjusted total turnover for zero-rated supply refund - Credit notes issued beyond the statutory time limit Exclusion of credit notes from adjusted total turnover while computing refund of accumulated input tax credit on export of goods without payment of tax - HELD THAT: - A credit note validly issued for returned or rejected supplies reduces the taxable turnover and is deductible in computing adjusted total turnover under the refund formula. However, credit notes issued during the refund per... ... ...

Interest on retrospective price escalation - Penalty for bona fide transitional tax compliance u/s 122 Interest on retrospective price escalation - Interest liability on differential tax paid through post-GST debit notes following retrospective upward revision of the value of pre-GST clearances - HELD THAT: - The price finally determined pursuant to a retrospective escalation clause constituted the true value of the goods from the date of their original clearance. The deeming fiction in secti... ... ...

GST levy on assignment of leasehold rights in industrial immovable property - Assignment of benefits arising from immovable property GST levy on assignment of leasehold rights in industrial immovable property - Assignment of benefits arising from immovable property - GST liability on assignment of leasehold rights in a GIDC industrial plot by the lessee to an assignee. - HELD THAT: - The Tribunal found the dispute squarely covered by the binding ruling of the jurisdictional High Court that as... ... ...

Input tax credit reversal on supplier credit notes - Adjustment of excess IGST against CGST and SGST liabilities Recipient's input tax credit reversal on supplier credit notes - Requirement to reverse input tax credit upon receipt of supplier credit notes during the relevant period - HELD THAT: - During the relevant period, neither the Act nor the Rules imposed a mandatory obligation upon a recipient to reduce input tax credit merely because the supplier had issued a credit note. The stat... ... ...

Service of show-cause notice after cancellation of GST registration - Electronic service through Common Portal Service of show-cause notice after cancellation of GST registration - Electronic service through Common Portal - Validity of ex parte GST adjudication where, after cancellation of registration, the show-cause notice was served only electronically through the Common Portal. - HELD THAT: - After cancellation of registration, the noticee may neither access nor be obliged to access the C... ... ...

Unreasoned ex parte cancellation of GST registration Unreasoned ex parte cancellation of GST registration - Cancellation of GST registration by an ex parte order bereft of reasons. - HELD THAT: - The cancellation order contained no reasons and had been passed ex parte. It was therefore found unsustainable. [Paras 3, 4] The cancellation order was quashed and the authorities were directed to permit filing of pending returns and deposit of outstanding dues within fifteen days. Final Conclu... ... ...

Natural justice in GST adjudication-consideration of manually filed show-cause reply - Writ jurisdiction notwithstanding alternative remedy-violation of natural justice Natural justice in GST adjudication-consideration of manually filed show-cause reply - Writ jurisdiction notwithstanding alternative remedy-violation of natural justice - Validity of a GST demand order passed without considering a manually filed show-cause reply and before expiry of the time granted for producing supporting do... ... ...

Service of show cause notice after cancellation of GST registration - Principles of natural justice Service of show cause notice after cancellation of GST registration - Violation of principles of natural justice - Validity of an adjudication order founded on a show cause notice uploaded on the GST portal after cancellation of the taxpayer's registration. - HELD THAT: - Upon cancellation of registration, the taxpayer was not obliged to check the GST portal. A show cause notice in such circums... ... ...

Statutory appeal beyond limitation Statutory appeal beyond limitation - Entertaining a statutory appeal against the ex parte GST adjudication after expiry of the condonable period, pursuant to the State's concession. - HELD THAT: - In view of the State's concession that the petitioner be permitted to pursue the statutory appellate remedy, no further adjudication in the writ petition was required. The appeal was to be considered on merits without objection as to limitation, provided it was fil... ... ...

Excise-duty demand requiring cash payment under Rule 8(3A) of the Central Excise Rules, 2002 was unsustainable because that rule had been declared ultra vires and unconstitutional. Jurisdictional High Court and Tribunal decisions followed that position. Judicial discipline required adherence to those binding decisions, preventing enforcement of the cash-payment requirement through the demand.

Mobile-phone parts classification under Rule 1 of the General Rules for Interpretation and Section XVI Note 2(b) covers specially designed aluminium plates, magnesium alloy sheets, thermal-management materials, antennae, tape and dust-proof paper where they are solely or principally used in mobile-phone manufacture. Further machining, stamping or lamination does not alter that character. These goods qualify for the manufacture-linked customs exemption where their prescribed end use in intermediary or finished mobile phones is established and verified. Low-viscosity polymer granules introduced after filing fall outside the advance-ruling scope because they were not identified in the original application.

Interest-free advances to wholly owned subsidiaries, used for overseas business expansion as owners' quasi-equity and not funded by domestic borrowings, were not benchmarked as ordinary loans for a notional-interest transfer-pricing adjustment; the adjustment was deleted. Corporate-guarantee pricing was restricted to 0.5%, reflecting an arm's-length rate materially lower than a bank-guarantee rate. A creditor's write-off supported an addition for remission or cessation of the related trading liability, while a separate alleged liability required verification of whether it remained outstanding in the taxpayer's books. Only the established write-off addition survived, subject to verification of the other liability.

Section 69A treatment of demonetisation-period cash deposits must consider whether the claimed source-realisation of business receivables and sales-was accepted on materially identical facts in an earlier assessment year. Although res judicata does not strictly govern income-tax assessments, the rule of consistency supports uniform treatment where the fundamental facts and source explanation remain unchanged. Without a material distinguishing change, the same business-receipt explanation should not be rejected; the addition requires fresh determination after considering the earlier assessment, supporting material, and providing a reasonable hearing opportunity.

Closing-stock valuation under the mercantile system must be assessed as part of an integrated going-concern exercise. A reduced closing-stock value that also lowers opening stock in the succeeding year increases that year's profit; where the Department does not establish distortion of profits for the relevant year, the adjustment is revenue-neutral. The resulting tax effect concerns only the timing of taxability, not the accrual of real income, so an addition based solely on that reduced valuation is unsustainable.

Unsigned electronic notices issued under Section 148 to initiate income-tax reassessment must comply with the CBDT requirement that notices issued through the e-proceedings facility bear the Assessing Officer's digital signature. Where a reassessment notice was neither digitally nor manually signed, it was invalid and could not confer jurisdiction to reassess income. The resulting reopening proceedings and consequential assessment were quashed.

Dividend income of a recognised staff provident fund is exempt under Section 10(25). Misreporting that income in the return under Section 10(35) does not change its exempt character or justify its disallowance under Section 115BBDA. Delayed employees' provident-fund and ESI contributions concern a separate issue and cannot support disallowance of the fund's dividend income. The dividend disallowance under Section 115BBDA was deleted.

Reassessment beyond four years after scrutiny requires recorded failure to make full and true disclosure linked to escaped income; absent that requirement, reopening is void. Within four years, tangible material not examined originally can support reopening without change of opinion. Dealer-service payments not shown to be prohibited by law, actuarially valued IBNR and IBNER claims, and amortised premium on mandated Government securities qualify as deductible expenditure. Foreign reinsurance premiums require withholding where the payee's Indian business connection or permanent establishment makes income chargeable; default can trigger disallowance. Special insurance computation rules prevent exempt-income expenditure disallowance and book-profit add-back of reserve for unexpired risk, while qualifying investment-sale gains remain exempt.

Section 144C(13) requires a final assessment conforming to Dispute Resolution Panel directions to be completed within one month from the end of the month in which the directions are received. Digitally signed directions uploaded to the ITBA portal are treated as accessible to the Faceless Assessing Officer on the upload date. Internal system processing, asserted non-receipt, or differing user functions do not defer limitation; an assessment made without the directions cannot satisfy the conformity requirement.

Reassessment was sustained where a search-related inquiry identified an assessee's political donation and the assessee acknowledged it during assessment inquiry. A deduction for political contribution cannot be determined on merits without verifying bank records for possible prior cash receipt or subsequent return of donated funds. The deduction issue requires fresh adjudication after verification of donation evidence and an opportunity of hearing, consistent with principles of natural justice.

CBDT's extended-relaxation circular permits the admission and processing as pending applications of settlement applications filed after 31 January 2021 and before 30 September 2021, provided the assessee was otherwise eligible and relevant assessment proceedings remained pending. Applications filed within that period require consideration by the Interim Board in accordance with the circular and applicable law. Eligibility to apply for settlement under section 245C remains subject to separate examination and is not determined merely by filing within the extended period.