Taxation – Additional Duties of Excise – The Supreme Court examined whether 'Pan Masala' containing tobacco and gutka, which are covered by an entry in the First Schedule to the ADE Act, can be subjected to sales tax by the States under their respective sales tax laws. The court observed that once goods are chargeable under the ADE Act, they are exempt from State sales tax under the relevant State enactments [Paras 7-10].

Doctrine of Precedent – Numerical Strength of Benches – The court discussed the principle that a decision by a larger Bench prevails over that of a smaller Bench, regardless of the number of judges constituting the majority. This principle ensures consistency and stability in the law [Paras 1-4, 17-19].

Conflict in Judgments – The court addressed the conflict between the judgments in Kothari Products Ltd. v. State of A.P. and CST v. Agra Belting Works regarding the taxability of goods under the ADE Act and State sales tax laws. The court found no real conflict as the two lines of cases dealt with different aspects of the law – one with the exclusion of ADE Act goods from State sales tax and the other with the interplay between exemption under one section and taxability under another section of the same State Act [Paras 17-19].

Decision – Appeals Disposed Of – The Supreme Court held that the reference to the Constitution Bench was incompetent due to the lack of conflict between the lines of cases and directed that the cases be placed before the regular Bench for a decision on the merits [Paras 17, 19-20].

Service Law – Pension – The Supreme Court upheld the High Court’s decision that the respondent’s past service with the Rajasthan Agriculture Engineering Board and the Rajasthan State Agro Industry Corporation should be counted for pension calculation. The Court emphasized that denial of pension is a continuing wrong, and financial rules capable of multiple interpretations should be interpreted in favor of the employee [Paras 16, 23, 28].

Continuing Wrong – Pension – The Court observed that pension is a lifelong benefit, and denial constitutes a continuing wrong. The Court also noted the financial difficulties faced by retired employees in approaching the Court, which should be considered while deciding such cases [Paras 27-28].

Rule 25(2) – Resignation and Past Service – The Court clarified that under Rule 25(2) of the Rajasthan Civil Services (Pension) Rules, 1996, resignation does not entail forfeiture of past service if submitted with proper permission to take up another government appointment. The Court presumed prior permission was obtained due to the respondent’s selection through the RPSC and the nature of his employment [Paras 23-26].

Decision – Special Leave Petition Dismissed – The Supreme Court found no grounds to interfere with the High Court’s judgment, which was based on a purposive interpretation of Rule 25(2) favoring the respondent. The petition was dismissed [Paras 32-33].

Insider Trading – Price Sensitive Information – The decision by the Board of Directors of GIPL to terminate contracts was held to be price sensitive information under Section 2(ha) of the SEBI Regulations – The termination had the potential to place existing shareholders in an advantageous position – The sale of shares by the respondent before the information was made public, considering his financial distress, was not considered insider trading [Paras 1-45].

Distress Sale – The respondent’s sale of shares was due to compelling financial circumstances related to the Corporate Debt Restructuring (CDR) package for the parent company, Gammon India Ltd. – The sale occurred before the termination information could positively impact the share price, indicating no intent of making undue gains through insider trading [Paras 30-44].

Decision – Appeal dismissed – The Securities Appellate Tribunal’s decision to set aside the SEBI order for disgorgement of unlawful gains upheld – No costs awarded [Para 45].

Arbitration – Interim Measures – Section 9 confers wide powers on courts to secure the disputed amount before, during, or after arbitration but before enforcement under Section 36 – Court must assess if the applicant has a prima facie case, balance of convenience, and promptness in seeking relief [Paras 1-2].

Stay of Arbitral Award – Section 36(2) allows for stay of award subject to conditions imposed by the court, including security covering the entire award amount and interest – Court’s discretion emphasized, with necessity to provide reasons for granting stay [Paras 3-4].

Portuguese Civil Procedure Code – Inventory Proceedings – Sections 1369 to 1447 govern the process of inventorying and partitioning estates – Licitation involves a closed auction for heirs to bid for estate items – Successful bids and the obligation to pay owelty (excess payment) create inheritable rights, not merely personal ones [Paras 5-24].

Decision – Appeals dismissed – The court upheld the High Court’s decision that the right from a successful bid in inventory proceedings is inheritable and not extinguished upon the bidder’s death – Costs not awarded [Para 25].

Criminal Law – Circumstantial Evidence – Murder – The conviction under Section 302 read with Section 34 IPC requires the circumstantial evidence to form a chain so complete that it conclusively points to the guilt of the accused, excluding any other hypothesis – There was no direct evidence or last seen evidence linking the appellants to the crime – Prosecution failed to establish a complete chain of events leading to the conclusion that the appellants alone committed the murder – Conviction set aside – Accused acquitted [Paras 1-8].

Decision – Appeals allowed – Judgments of the Trial Court and High Court convicting the appellants under Section 302/34 IPC quashed – Appellants acquitted and ordered to be released forthwith if not required in any other case [Para 8].

Tax Law – Transfer to Defraud Revenue – Section 34 of the U.P. Trade Tax Act applies only if the transfer of immovable property occurs during the pendency of proceedings under the Act with the intent to defraud tax dues – The transfer in this case was made before the reassessment proceedings began – Consequently, Section 34 does not apply, and the transfer is valid – Tribunal and High Court orders setting aside the recovery certificate against the purchaser upheld [Paras 1-7].

Decision – Appeals dismissed – Judgments of the High Court and Trade Tax Tribunal quashing the recovery certificate against the respondent affirmed – No costs [Para 7].

Employees' Compensation – Permanent Disability – Compensation – The appellant, who suffered a 60% permanent disability due to a fall while working, was initially awarded compensation by the Commissioner based on a medical certificate – The High Court set aside this award based on a subsequent medical examination conducted after nine years, which found no permanent disability – The employer did not request a timely medical examination by a Medical Board – The appellant is entitled to compensation, and the amount already withdrawn by the appellant is considered as full and final settlement [Paras 1-5].

Decision – Appeal partially allowed – The appellant is entitled to a total sum of ₹376,236 towards compensation with interest for the disability suffered, which has already been withdrawn – The balance amount in deposit with the High Court/Commissioner may be withdrawn by the respondent/employer if not withdrawn so far [Para 5].

Excise Duty – Modvat Credit – The appellant claimed Modvat credit on 'Guide Cars' under Rule 57Q, asserting they were 'components' of Coke Oven Battery – The classification of 'Guide Car' by the supplier under Chapter sub-heading 8603.00 was upheld – 'Guide Car' found not to be an integral part of Coke Oven Battery but distinct equipment used for transporting hot coke – Appellant not entitled to Modvat credit on 'Guide Car' – Penalty imposed by Tribunal quashed due to the bonafide belief of the appellant [Paras 1-12].

Decision – Appeal dismissed regarding the denial of Modvat credit on 'Guide Car' – The demand of ₹4,586,664 as Modvat credit availed on 'Guide Car' upheld – Penalty of ₹100,000 imposed by the Tribunal quashed – No order as to costs [Para 12].

Stamp Duty – Agreement to Sell – Possession – The agreements in question did not convey possession of the immovable property, as the plaintiff was already in possession prior to execution – Entry No. 5 (cc) of Schedule 1-A applicable under Punjab Stamp Act requires stamp duty on agreements evidencing delivery of possession – The trial court and High Court's orders demanding deficient stamp duty and penalty were based on incorrect application of the law – Orders set aside [Paras 1-5].

Decision – Appeal allowed – High Court and Trial Court orders directing appellant to pay deficient stamp duty with penalty quashed – No costs [Para 5].