Bombay HC (Nagpur Bench): GST SCN on Assignment of MIDC Leasehold Rights Quashed

In a significant ruling, the Bombay High Court (Nagpur Bench) has quashed a GST show cause notice issued on the assignment of long-term MIDC leasehold rights, holding that such transfer amounts to transfer of benefits arising out of immovable property and not a taxable supply of service under GST.

The Court further clarified that the transaction was neither a sub-lease nor carried out in the course or furtherance of business, thereby failing the basic requirements of “supply” under the CGST Act. In doing so, it followed the Gujarat High Court’s view and held the same to be binding on authorities in Maharashtra.

For any clarification, please write to [email protected]

Direction To Provide Voice Sample Does Not Violate Article 20(3) Of The Constitution Of India Or Right To Privacy

In Moin Akhtar Qureshi v. Central Bureau of Investigation (2025:DHC:11909), the Delhi High Court has clarified that a direction to furnish a voice sample for the purposes of criminal investigation does not amount to testimonial compulsion under Article 20(3) of the Constitution of India, nor does it violate the fundamental right to privacy. The Court held that providing a voice sample is merely a mode of identification and not a communication of personal knowledge or guilt, and therefore falls outside the constitutional protection against self-incrimination

The proceedings arose out of surveillance carried out by the Income Tax Department between October 2013 and March 2014, followed by search operations and subsequent action by the Enforcement Directorate and the CBI. During investigation, the CBI sought to compare intercepted telephonic conversations with the petitioner’s voice. The courts below permitted this request, which the petitioner challenged before the High Court on the ground that the direction amounted to compelled self-incrimination and was premised on allegedly illegal and stale interceptions.

The Court rejected these arguments. Relying on settled precedent, it reaffirmed that physical and mechanical identification measures including fingerprints, handwriting, or voice samples do not carry any communicative content and therefore do not attract Article 20(3) of the Constitution. The Court clarified that self-incrimination means conveying information based upon the personal knowledge of the person, giving the information and cannot include merely the mechanical process of producing documents in Court, which may throw a light on any of the points in controversy and concluded that specimen through mechanical process, cannot be termed as a self-incriminatory attracting the prohibition of Article 20(3) of the Constitution. The Court emphasised that a voice sample is only an identifying feature of an individual and does not, by itself, establish guilt.

While dealing with one of the contentions of the petitioner regarding the absence of specific provision empowering the Magistrate to direct an accused to give voice sample, the Court relied upon the judgment of Supreme Court in Ritesh Sinha v. State of U.P., (2019) 8 SCC 1, wherein the Supreme Court, invoking Article 142, recognised the power of a Magistrate to direct a person to give a voice sample for the purpose of investigation under the Code of Criminal Procedure, 1973. The Court also noted that this power now stands expressly incorporated in Section 349 of the Bhartiya Nagarik Suraksha Sanhita, 2023.

While acknowledging that the right to privacy is a fundamental right, the Court reiterated that it is not absolute and must yield to legitimate State interests, including the prevention and investigation of crime.

The Court further rejected the argument that intercepted calls were inadmissible or obtained contrary to statutory safeguards, holding that such objections pertain to evidentiary admissibility and must be adjudicated at the stage of trial, and cannot derail the investigative process.

Ultimately, the Court found no illegality or perversity in the Special Judge’s order directing the petitioner to provide his voice sample, and upheld the same. The judgment reiterates that a voice sample constitutes a physical characteristic used solely for identification and comparison, does not involve disclosure of personal knowledge, and therefore is not hit by Article 20(3) of the Constitution.

Authored By
Rajat Jain, Advocate
Email: [email protected]
Mobile No. 9953887311

Legalaxy – Monthly Newsletter Series – Vol XXXII – January, 2026

In the January edition of our monthly newsletter “Legalaxy”, our team analyses some of the key developments in securities market, corporate, finance and labour.

Below are the key highlights of the newsletter:

SEBI UPDATES

  • Key highlights of the 212th SEBI board meeting
  • SEBI strengthens valuation standards: independent valuers now mandatory
  • SEBI mandates NISM certification for compliance officers of managers of AIFs
  • SEBI’s framework for AI only schemes and relaxations for LVFs for AI

RBI & IFSC UPDATES

  • IFSCA clarifies computation of liquid net worth under the CMI Regulations
  • IFSCA extends the deadline for implementation of the revised norms for principal officer and compliance officer under the CMI Regulations

CORPORATE UPDATES

  • MCA raises small company thresholds to INR 10 crores paid-up capital and INR 100 crores turnover
  • MoF notifies the Indian Insurance Companies (Foreign Investment) Amendment Rules, 2025

LABOUR UPDATES

  • Labour Courts, Industrial Tribunals and National Industrial Tribunals to continue with adjudication
  • Extension of scheme to promote registration of employers/ employees

We hope you like our publication. We look forward to your suggestions.

Please feel free to contact us at [email protected]

Customs and GST Alert – January 2026

We are pleased to share with you our latest Customs and GST Alert, covering recent judgments and regulatory updates.

We trust that you will find the same useful.

Looking forward to receiving your valuable feedback.

For any clarification, please write to:

Mr. Shammi Kapoor
Senior Partner
[email protected]

Mr. Arnab Roy
Partner
[email protected]

ITAT Delhi rejects the allegation of constitution of Permanent Establishment of foreign enterprise having subsidiaries in India sans satisfaction of disposal test

We are pleased to share with you a copy of our in-house publication – “TaxBuzz”, wherein we have analysed the recent ruling of ITAT, Delhi Bench in the case of SAIC Motor Corporation Limited v. ACIT: ITA No. 1191/Del/2025 wherein the Hon’ble ITAT struck down the profit attribution made to the alleged PE of a non-resident taxpayer in India, holding that the tax authorities failed to discharge onus of establishing the existence of a Fixed Place PE or a Supervisory PE.

Further, Hon’ble ITAT observed that in case the view of tax authorities is to be accepted i.e., if the assembly unit/manufacturing plant of the subsidiary is treated as fixed place PE of the taxpayer, it would create huge disruptions in taxability of the income of the foreign entities operating in a multinational set-up.

We trust that you will find the same useful.

For any details and clarifications, please feel free to write to:

Mr. Neeraj K Jain, Senior Partner: [email protected]

Mr. Kunal Pandey, Principal Associate: [email protected]

Mr. Girish Sonthlia, Associate: [email protected]

SEBI Mandates NISM Certification for Compliance Officers of Managers of AIFs

Securities and Exchange Board of India, vide its circular dated December 30, 2025, has mandated the requirement of National Institute of Securities Market (“NISM”) certification for the compliance officers of the manager of Alternative Investment Funds (“AIFs”).

From January 1, 2027 onwards, only those persons who have obtained the NISM Series-III-C: Securities Intermediaries Compliance (Fund) Certification Examination, issued by NISM shall be appointed as or shall continue to act as compliance officer of managers of AIFs.

We have covered the circular in detail below.

For any clarification, please write to [email protected]