Section 74 requires proof not only that input tax credit was inadmissible, but also that it was availed or utilised through fraud, wilful misstatement, or deliberate suppression with intent to evade tax. Disclosure in statutory returns or reconciliation statements, audit detection, and failure to answer an audit report do not automatically establish suppression. Fraud-related allegations and supporting evidence must appear in the show cause notice; appellate proceedings cannot introduce new grounds or cure a defective notice. Where fraud is not established, underlying tax liability may still be determined under the ordinary-demand framework, subject to limitation, natural justice and substantive credit conditions.

Where a first appellate order substantially reduces a GST demand and the department does not challenge that reduction, the pre-deposit attributable to the extinguished demand may exceed the amount required for the pending second appeal. The excess amount may be claimed as a consequential refund, with applicable interest, without awaiting final disposal before the GST Appellate Tribunal. The first appellate order is binding on the tax authority to the extent of the demand set aside, and continued retention of the excess pre-deposit lacks authority of law.

Headache You hit "submit" on the ITR portal. Everything looks perfect. Then a red error message flashes: "Tax audit applicable." Your heart sinks. You declared 8% on a Rs. 1.37 crore turnover. You thought you were safe under Section 44AD. What went wrong? Let me tell you a story. Rahul runs a manufacturing unit in Gujarat. Last year, he made Rs. 1.45 crore in revenue. He took cash for about Rs. 8 lakh from local retailers. He paid Rs. 6 lakh in cash to his raw material suppliers. At year-e... ... ...

Section 74 Cannot Be Invoked Merely Because the Taxpayer Is Wrong An incorrect tax position is not necessarily a fraudulent one. A taxpayer may make an inadmissible claim or wrongly avail ITC, but such an error does not by itself establish fraud, wilful misstatement or suppression of facts with intent to evade tax. Section 74 requires something more than the existence of an incorrect claim-the Department must establish the culpable conduct contemplated by the provision. This distinction ha... ... ...

Income-tax Act, 1961 Main provision Section 197 - Certificate for deduction at lower rate Related and incidental provisions: Section 9 - Income deemed to accrue or arise in India Section 143 - Assessment Section 144C - Reference to Dispute Resolution Panel Section 234C - Interest for deferment of advance tax Related judgments: Assistant/Deputy Commissioner of Income Tax Versus Godaddy. Com. - 2026 (9) TMI 271 - SC Order Godaddy. Com LLC Versus Assistant/Deputy Com... ... ...

Improving Production Flow, Reducing Delays, and Enhancing Efficiency in Indian Manufacturing and Service Sectors 1. Introduction Modern organizations operate in highly competitive environments where customers demand faster delivery, better quality, and lower costs. Traditional production systems often suffer from excessive inventory, delayed processes, bottlenecks, and inefficient resource utilization. To overcome these challenges, organizations have adopted Kanban, a visual workflow manag... ... ...

Outstanding electricity dues of a defaulting consumer may be required from an auction purchaser before a fresh electricity connection is released. Supply conditions framed under the Electricity Act permit recovery of arrears as a condition of new supply and retain force despite a secured creditor's statement that no encumbrance was known. Clause 10.19 of the State Electricity Supply Code regulates arrears recovery without extinguishing the underlying liability. Sale on an "as is where is" basis places property-linked liabilities on the purchaser, and the doctrine of contracts of adhesion does not displace a statutory supply condition.

FCRA renewal refusals must disclose intelligible reasons where non-renewal adversely affects the applicant's rights; a bare reference to statutory provisions is insufficient. Confidential security-agency material may justify non-disclosure only on cogent material showing a genuine national-security necessity, rather than by automatic reliance on secrecy. Alleged financial support for peaceful Vizhinjam Port protests does not establish diversion of foreign contribution, an undesirable purpose, or prejudice to public interest without evidence linking funds or participation to unlawful conduct. Peaceful dissent, assembly and association remain constitutionally protected, and administrative disapproval of protest cannot alone support non-renewal.

Judicial review of tender decisions - Post-bid alteration of tender quotation - Outstanding contractual dues and fresh tender process - inclusion or exclusion of GST in the base price Validity of rejection of a catering-services tender quotation based on the bidder's stated GST treatment and subsequent request to alter the quotation - HELD THAT: - The Hon'ble Supreme Court in Banshidhar Construction Pvt. Ltd. [2024 (10) TMI 213 - SUPREME COURT] after considering the earlier decisions ... ... ...

Vicarious liability of company officers for cheque dishonour - Pre-summoning verification of corporate accused Vicarious liability of company officers for cheque dishonour - Unimpeachable corporate records - Liability of a person impleaded as Joint Managing Director in a cheque-dishonour complaint despite uncontroverted corporate records showing that he was never an officer of the accused company. - HELD THAT: - Vicarious liability under Section 141 depends upon the person's actual role in, a... ... ...

Remuneration of Panel Valuer - Post-assignment sanction of professional fees exceeding prescribed ceiling - Interest on delayed payment of professional fees - Recovery of professional fees from assets in liquidation - Personal liability for corporate debts Applicable guidelines for valuation in aid of sale - Sanction of professional fees exceeding prescribed ceiling - Applicability of the 1994 Guidelines and sanction of a Panel Valuer's fees exceeding the prescribed ceiling for separate v... ... ...

Presumption of legally enforceable debt on admitted cheque execution - Successor Magistrate deciding summons trial Presumption of legally enforceable debt on admitted cheque execution - Rebuttal of presumptions under the Negotiable Instruments Act - Conviction for dishonour of a cheque where the accused admitted the signatures on the cheque and money receipt, but questioned the complainant's financial capacity and the loan transaction - HELD THAT: - Admission of execution and signature on... ... ...

Dishonour of cheque - Inquiry before issue of process against accused residing outside territorial jurisdiction - Non-compliance with the mandatory inquiry u/s 200 and 202 - Statutory presumption on admitted execution of cheque - Quashing of cheque dishonour complaint at pre-trial stage - Presumption of legally enforceable debt or liability - Rebuttable presumption - Inherent jurisdiction HELD THAT:- The Special Leave Petition was dismissed without interference; the High Court's [2026 (8)... ... ...

Legislative competence for retrospective exclusion of revision limitation under the Gujarat VAT Act - Validity of Section 84A of the Gujarat VAT Act, retrospectively excluding the period spent in higher-court proceedings while computing limitation for revision notices HELD THAT: - The issue stood governed by the Supreme Court decision State of Telangana and others Vs. Tirumala Constructions [2023 (10) TMI 1208 - SUPREME COURT] holding that amendments to the Gujarat VAT Act made after 1 July 2... ... ...

Excise duty on scrap generated at job worker's premises - Liability of the principal manufacturer to pay excise duty on waste and scrap generated during job work and retained by the job worker HELD THAT: - The Tribunal held that the CENVAT provisions did not require the principal manufacturer either to bring back scrap generated at the job worker's premises or to discharge duty thereon. Where the job worker retained and sold the scrap, the job worker was its manufacturer; consequently... ... ...

CENVAT credit of concessional CVD on imported steam coal - Importation of central excise exemption conditions into customs notifications Eligibility to CENVAT credit of 1%/2% CVD paid on imported steam coal under a Customs notification, notwithstanding restrictions applicable to specified central excise exemptions - HELD THAT: - Additional duty of customs paid on imported steam coal is creditable under Rule 3(1)(vii) of the CENVAT Credit Rules, 2004. The restriction in the proviso to Rule 3(1... ... ...

Service tax demand based on accounting discrepancies - Extended period for suppression with intent to evade service tax - Penalty for suppression of service tax Service tax demand based on accounting discrepancies - Identification and classification of taxable service - Sustainability of service tax demand founded on differences between the Balance Sheet, Income Tax records and ST-3 Returns - HELD THAT: - Service tax liability can be confirmed only after identification and classification of t... ... ...

Service tax on sale of goods in works contracts - Exemption for lift irrigation works rendered to governmental authority - Extended limitation for wilful suppression Service tax on sale of goods in works contracts - Valuation of service portion in works contracts - Levy of service tax on the sale-of-goods component of lift irrigation works and supply-and-installation contracts - HELD THAT: - A transfer of title in goods, including a deemed sale in a works contract, falls outside the definitio... ... ...

Consistency in Revenue litigation - Extended limitation for service-tax demand Consistency in Revenue litigation - Revenue challenge to the Tribunal's limitation ruling after acceptance of an identical ruling concerning a similarly situated assessee - HELD THAT: - The material dates, demand period, computation and the Tribunal's ground for allowing the appeals were substantially identical in both matters. Having accepted the Tribunal's decision in the analogous case, the Revenue could not ado... ... ...

Provisional attachment of the mortgaged property - apprehension of alienation to frustrate confiscation proceedings Validity of provisional attachment of the mortgaged property in the absence of apprehension that it would be dealt with or alienated so as to frustrate confiscation proceedings - HELD THAT: - Provisional attachment may be invoked only where there is a likelihood that the person concerned will deal with or alienate the property so as to frustrate confiscation proceedings. A pre-e... ... ...