#Corporate Restructuring

Bombay High Court rules that privilege fees under excise laws apply to liquor licence transfers via Scheme of Arrangement, but authorities cannot impose charges beyond statutory authorization. The judgment clarifies compliance requirements for corporate restructuring involving regulated licences, impacting distilleries and liquor manufacturers.

CESTAT Hyderabad holds that merger and acquisition advisory services do not qualify as 'Management Consultancy Service' for service tax purposes. The tribunal also rules that shareholders are not liable under the reverse charge mechanism, reinforcing the separate legal entity principle between a company and its shareholders.

NCLAT mandates that adjudicating authorities must evaluate a corporate debtor's solvency and other material factors before approving settlement offers made by suspended directors prior to CoC formation. This ruling reinforces the in rem character of CIRP proceedings and limits unilateral settlements that bypass creditor rights.

The Bombay High Court has ruled that stamp duty cannot be levied on amalgamation orders where no shares are issued and no consideration is paid, even if book entries reflect goodwill or share premium. This clarifies that accounting adjustments alone do not trigger stamp liability under Article 25(da), offering critical relief to corporate restructuring transactions across India.