The Punjab and Haryana High Court has suspended a circular from the CBIC concerning the tax implications of corporate guarantees between related entities. The circular suggested that providing such guarantees without payment should be considered a service. This decision follows a case represented by Senior Advocate Sujit Ghosh and Advocate Rishabh Kapoor. The debate focuses on whether tax on corporate guarantees is valid at 1% and how it applies when guarantees extend beyond one year.