Some GST officials attached to Audit function under GST law in Tamil Nadu make our life interesting by way of novel methods in raising fictitious demands. One such issue was discussed on 25/09/2026 under how to raise vitiated, unsustainable as well as untenable demand in GST covering demand of GST on entire trade payables as on 31/03/2023 as per audited balance sheet assuming that the entire creditors are due for mor than 180 days when the trade payable represented only 25 days purchases. This i... ... ...

Abbreviations used: ITA 1961 or 61 Act - The income-tax Act, 1961 ITA 2025 or 25 Act - The income-tax Act, 2025 ITR 1962 or 62 Rules - Income Tax Rules 1962 ITR 2026 Or Rules 2026- Income-tax rules 2026 ITA 2025 ITA 1961 Remarks Income-tax Act, 2025 Chapter II BASIS OF CHARGE   Income-tax Act, 1961 Chapter II BASIS OF CHARGE   Similar 10. Apportionment of income between spouses governed by Portuguese Civil Code. [Apporti... ... ...

Clubbing of proceedings is usually for the convenience of parties contesting the same so as to avoid multiplicity of proceedings, delay in adjudication as well as expenses incurred therein. The Civil Procedure Code, 1908 ('Code' for short) Code does not specifically provide for consolidation of suits but the same could be done under the inherent powers of the Court flowing from Section 151 of the Code. The parties are relieved of adducing similar documentary and oral evidence in two suits but in... ... ...

CBIC Guidelines on Arrest and Bail CBIC (GST-Investigation Wing) has issued guidelines for arrest and bail in relation to offences punishable under CGST Act, 2017 vide CBIC Instruction No. 02/2022-23 (GST - Investigation) dated 17.08.2022: • It may be noted that Supreme Court in criminal Appeal No. 838 of 2021 [SLP (Criminal) No. 5442/2021] in SIDDHARTH Versus THE STATE OF UTTAR PRADESH & ANR. - 2021 (8) TMI 977 - Supreme Court observed and held that: • Merely because a... ... ...

The Third Writ Returned to the Same Adjudication Order A taxpayer may possess several grounds for questioning a GST demand, but those grounds must be raised through the proper remedy and at the appropriate time. Once a writ petition challenging an adjudication order is withdrawn without liberty to file afresh, the taxpayer cannot ordinarily begin another round of writ proceedings against the same order merely by improving the drafting, adding legal grounds or challenging related notifications... ... ...

Section 138 complaints should not be quashed merely because the alleged settlement cheque appears improbable or a later police statement cites a different cheque number. A matter listed for evidence may have reached the evidence stage even if testimony has not commenced. Whether the cheque identified in the complaint was issued, and the significance of differing cheque numbers, are disputed factual and evidentiary matters requiring assessment of the parties and documents at trial rather than detailed evaluation in quashing proceedings.

Clandestine manufacture and clearance require cogent, affirmative and corroborated evidence; documented trading purchases cannot be recharacterised as manufactured goods on untested transporter statements, logos, turnover disparities, or inference alone. Separation of trading and manufacturing turnover determines small-scale industry exemption eligibility, with actual manufacturing clearances and duty payment requiring verification where necessary. Prior departmental knowledge and periodic disclosures negate suppression intended to evade duty, preventing reliance on the extended limitation period. Penalties for deliberate evasion and personal involvement require established clandestine manufacture and conscious participation, while an independent failure to maintain prescribed records remains separately enforceable.

Appropriation of education cess and Secondary and Higher Education Cess paid with interest - Penalty for delayed payment of central excise duty and cesses Appropriation of education cess and Secondary and Higher Education Cess paid with interest - Appropriation of education cess and Secondary and Higher Education Cess after discharge of the principal liability and applicable interest - HELD THAT: - Tribunal found from the record that the entire liability had been paid together with applicable... ... ...

Builder-developer residential construction before 01.07.2010 - Construction for educational institutions - commercial or industrial purpose - Works-contract valuation - exclusion of goods component and composition option - Extended limitation - wilful suppression and intent to evade Builder-developer residential construction prior to 01.07.2010 - Landowners' share under a development arrangement - Service-taxability of residential units constructed for individual purchasers and of landown... ... ...

Service tax on contract manufacture of alcoholic liquor for human consumption - Negative-list exclusion of alcoholic liquor for human consumption - Manufacture for another person as service Liability to service tax on contract manufacture of alcoholic liquor for human consumption for a brand owner - HELD THAT: - The Tribunal distinguished manufacture by a brand owner for itself from manufacture undertaken by another entity for the brand owner, the latter being an activity carried out for anot... ... ...

Adjustment of service tax liability against available CENVAT credit - Penalty for non-filing of ST-3 returns and non-declaration of taxable services Adjustment of service tax liability against available CENVAT credit - Adjustment of service tax demands relating to residential-complex services against the available CENVAT credit balance - HELD THAT: - Availability of sufficient CENVAT credit did not dispense with the obligation to file service-tax returns. However, as the credit balance was su... ... ...

Entitlement to regular bail - Independence of money-laundering offence from stage of scheduled offence - Statutory conditions for bail under Section 45 - Twin conditions - Sick or infirm proviso to bail restriction - modus operandi - Proceeds of Crime - Reason to Believe - HELD THAT:- We are not inclined to interfere with the impugned judgment and order of the High Court [2026 (7) TMI 99 - GUJARAT HIGH COURT] rejecting the petitioner's application for bail; hence, the special leave petition i... ... ...

Vesting of bankruptcy estate in Bankruptcy Trustee - Exclusion of personal ornaments and sale proceeds from bankruptcy estate - Recall of ex parte bankruptcy order Vesting of bankruptcy estate in Bankruptcy Trustee - Unauthorised withdrawal of vested bank funds - Vesting in the Bankruptcy Trustee of the bank balance standing to the bankrupt's credit and withdrawn after commencement of bankruptcy - HELD THAT: - The applicable test was vesting, not moratorium. Money credited in the bankrupt... ... ...

Commencement of liquidation by sale as a going concern - Prospective operation of amendments to liquidation regulations - Saving clause in liquidation regulations - Prospective operation of delegated legislation - Commencement of liquidation by sale of the Corporate Debtor as a going concern where the liquidation order incorporated the CoC recommendation and expressly directed the Liquidator to first explore that mode of sale - HELD THAT: - The saving clause was required to be construed in th... ... ...

COVID-19 exclusion of limitation for Section 9 insolvency applications - Limitation for the operational creditor's Section 9 application where the ordinary limitation period expired during the COVID-19 exclusion period - HELD THAT: - The Supreme Court's COVID-19 limitation directions excluded the specified period and preserved the actual balance period from 01.03.2022 where it exceeded 90 days. Since the balance period available in the present case was 626 days, it extended the limitatio... ... ...

Creditor's insolvency petition - mandatory statutory act of insolvency Maintainability of a creditor's insolvency petition where the alleged grounds were attempted alienation of property and non-repayment of debt - HELD THAT: - The conditions for a creditor's petition are conjunctive and include the commission of an act of insolvency within the prescribed period. An attempt or agreement to transfer property does not constitute a transfer attracting the statutory definition of an a... ... ...

Clubbing of contrived split consignments as a complete motorcycle - Customs valuation of a misdescribed dismantled motorcycle - Identification of the real importer and individual customs-duty liability - Confiscation for import restriction and misdeclaration - Penalty for knowingly using materially false import declarations - Jurisdiction of DRI officers as proper officers - Competence of a common adjudicating authority for connected clearances Relevancy of Section 108 statements in customs a... ... ...

Suspension of Customs Broker licence for unsubstantiated due-diligence breaches - Mandatory timelines for proceedings against Customs Brokers Customs Broker due diligence toward importer - Evidence for suspension of Customs Broker licence - Validity of suspension of the Customs Broker licence for alleged non-compliance with due-diligence duties after the broker obtained statutory importer documents. - HELD THAT: - The Commissioner neither addressed the authorities relied on by the Customs Bro... ... ...

Scope of baggage-related exclusion from Appellate Tribunal jurisdiction - Maintainability of revision against customs appellate orders - jurisdiction of the first respondent u/s 129DD of the Customs Act, 1962 Proper appellate forum for orders confiscating a domestically registered car and Indian currency and imposing a smuggling-related penalty - HELD THAT: - The exclusion of the Appellate Tribunal's jurisdiction applies only to appellate orders relating to baggage, specified goods loaded... ... ...

Binding effect of approved insolvency resolution plan on unfiled Central Excise claim Binding effect of approved insolvency resolution plan on unfiled Central Excise claim - Effect of the approved resolution plan on the Department's Central Excise demand for which no claim had been lodged. - HELD THAT: - The Court proceeded on the finality accorded to the approved resolution plan by Ghanashyam Mishra and Sons Private Limited v Edelweiss Asset Reconstruction Company Limited . Since the Central... ... ...