Revenue-Sharing With Diagnostic Labs Not 'Business Support Service': CESTAT Sets Aside Service Tax Demand

The Customs, Excise and Service Tax Appellate Tribunal (CESTAT), Chandigarh has held that revenue-sharing arrangements between a hospital and diagnostic service providers (DSPs) do not amount to provision of “Business Support Service” (BSS) under the Finance Act, 1994, and are therefore not liable to service tax. A Division Bench comprising Justice S.S. Garg (Judicial Member) and...

“Inadvertent Error” In Freezing Karti Chidambaram's Wife's Accounts While Probing Him: SFIO Tells NCLT Chennai

The Serious Fraud Investigation Office (SFIO) has conceded before the National Company Law Tribunal (NCLT) at Chennai that an “inadvertent error” on its part led to the freezing of the bank accounts of Dr Srinidhi Karti Chidambaram, wife of former MP Karti P Chidambaram. The attachment arose from SFIO's November 4 ex-parte order in its disgorgement proceedings linked to Advantage...

Zinc EDTA Is Fertiliser, Not A Chemical; Lower Customs Duty Applicable: CESTAT Chennai

The Chennai Bench of Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has stated that Zinc EDTA is classifiable as a fertiliser under Customs Tariff Item (CTI) 3105 9090, and not a chemical salt under CTI 29224990 as stated by the revenue.Ajayan T.V. (Judicial Member) and Ajit Kumar (Technical Member) noted that Zinc EDTA contains Nitrogen, which is an essential...

If Arbitral Tribunal Terminates Proceedings For Not Paying Fees, Remedy Is To Seek Recall & Then Invoke S.14(2) : Supreme Court

The Supreme Court has held that an arbitral tribunal is legally empowered to terminate proceedings under Section 38(2) of the Arbitration and Conciliation Act, 1996 when a party fails to pay its share of the arbitrator's fees.Once such a termination occurs, the remedy available to the party is to seek the recall of the order before the Tribunal itself. If the recall application is dismissed,...

Handover of Maintenance To Owners' Association No Excuse To Evade Mandatory Insurance: Karnataka RERA

The Karnataka Real Estate Regulatory Authority (KarRERA) has recently ruled that builders cannot escape their statutory obligation to insure common areas of a housing project, even after handing over maintenance to an apartment owners' association. The authority said statutory insurance under Section 16 of the Real Estate (Regulation and Development) Act (RERA) is a binding requirement, not...

Service Tax Not Payable On Royalty Received For Group Companies' Use Of Copyrighted Logo: CESTAT

The Chennai Bench of Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has stated that service tax is not payable on royalty received for group companies' use of the copyrighted 'TTK' Logo founded by T.T. Krishnamachari & Co. (assessee). Ajayan T.V. (Judicial Member) and Ajit Kumar (Technical Member) examined whether the demand of service for the 'TTK' logo of the...

Mere Paper Trail Or Endorsed Bills Of Entry Without Actual Movement Of Goods Not Enough To Claim CENVAT Credit: CESTAT Chennai

The Chennai Bench of Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has stated that mere paper trail or endorsed bills of entry without actual movement of goods is not enough to claim CENVAT (Central Value Added Tax) Credit. Vasa Seshagiri Rao (Technical Member) opined that mere creation of paperwork or paper trail to indicate movement of goods, or mere...

Service Tax Refund Cannot Be Denied On Limitation When Deposit Was Made During Investigation: Chhattisgarh High Court

The Chhattisgarh High Court has held that service tax deposited during the course of investigation cannot be denied refund merely on the ground of limitation under Section 102(3) of the Finance Act, 1994, especially when the department itself later drops proceedings and acknowledges non-liability. The Division Bench of Justice Rajani Dubey and Justice Amitendra Kishore Prasad...

Inactivity Of Company For Two Years No Bar To Insolvency Proceedings: NCLAT

The National Company Law Appellate Tribunal (NCLAT) at New Delhi has recently ruled that a company cannot avoid insolvency proceedings simply because it has not been operating for two years. A bench of Chairperson Justice Ashok Bhushan and Technical Member Barun Mitra while upholding insolvency proceedings against Sant Kripa Appliances said, “the mere fact that CD was not functioning for...

NCLT Delhi Clears DCM Shriram's Scheme to Reorganise Its Businesses

The National Company Law Tribunal (NCLT) at New Delhi has approved a composite amalgamation and demerger scheme for DCM Shriram Industries and three group entities The bench of Judicial Member Ashok Kumar Bhardwaj and Technical Member Ravindra Chaturvedi cleared the plan on November 21, 2025 while making it clear that the tax department's recovery rights remain untouched and that any default...

NCLT Mumbai Approves Ashdan Properties' ₹145.26 Crore Plan To Revive Indo Global Soft Solutions

The National Company Law Tribunal (NCLT) at Mumbai has approved the Rs 145.26 crore resolution plan submitted by Ashdan Properties Private Limited for the revival of Indo Global Soft Solutions and Technologies Pvt Ltd, a company engaged in IT services and software development.The tribunal said that once a resolution plan satisfies the requirements of the Insolvency and Bankruptcy Code,...

Resolution Professional Has No Vested Right To Be Liquidator, Mid-Process Replacement Unwarranted: NCLAT

The National Company Law Appellate Tribunal (NCLAT) at New Delhi has held that a resolution professional has no "vested right to be appointed as liquidator" and that replacing the liquidator midway through the process is inappropriate when it risks additional costs and the majority creditor supports the incumbent. A bench of Judicial Member Justice N Seshasayee and Technical Members Arun...