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ITAT : Mumbai ITAT Confirms Section 263 Revision Due to AO’s Failure to Examine Section 43CA Applicability Where Stamp Duty Value Exceeds 10% of Sale Price

ITAT : Delhi ITAT Rules Live Broadcasting License Fees Not Taxable as Royalty under Section 9(1)(vi) and India-USA DTAA; Rejects Revenue’s ‘Process’ Argument

ITAT : ITAT Mumbai Upholds Section 36(1)(iii) Deduction for Temporary Investment of Borrowed Funds Pending Utilization, Mandates Section 14A Disallowance for Exempt Income

ITAT : Mumbai ITAT Upholds Capital Gains Tax on Company-to-LLP Conversion Exceeding Asset Threshold: Exemption Denied Due to Non-Compliance with Section 47(xiiib) Conditions

HC : Madhya Pradesh High Court Sets Aside Trial Court Order: Upholds Applicant’s Ownership of Seized Property Despite Revenue’s Objection

ITAT : Delhi ITAT Rules Software Receipts from Indian Clients Not Royalty Under India-Netherlands DTAA: No Intellectual Property Rights Transferred

ITAT : Delhi ITAT Upholds Deletion of Deemed Dividend Addition under Section 2(22)(e), Sustains Disallowance of Short-Term Capital Loss for Lack of Evidence of Property Transfer

ITAT : ITAT Hyderabad Declares Section 148 Notice Void: Communication Date, Not Portal Upload, Decides Validity; Assessment Struck Down for Non-Compliance with Section 148A

HC : Bombay High Court Mandates Adherence to Tribunal Precedents; Quashes Commissioner’s u/s 264 Order for Disregarding Special Bench Ruling

HC : Orissa High Court Quashes PCCIT’s Technical Rejection of Delay Condonation, Upholds Substantial Justice Over Procedural Rigidity in Sec. 119(2)(b) Application

ITAT : Delhi ITAT Rules Loan Received by Non-Shareholder Company Not Taxable as ‘Deemed Dividend’ under Section 2(22)(e); Common Shareholder Irrelevant

HC : Bombay High Court Grants Revenue’s Plea for 53-Day Delay Condone, Citing Absence of Malafide Intent and Acceptable Cause

HC : Bombay High Court Excuses 506-Day Delay in Appeal Filing, Recognizes Assessee’s Bona Fide Pursuit of Rectification Before Appeal

ITAT : Delhi ITAT Quashes PCIT’s Revision Order under Section 263—Holds Debate on Disallowance of Bogus Purchases Supports Two Viable Judicial Views

ITAT : Delhi ITAT Upholds Assessee’s Compliance with Section 68 and Allows Business Expense Deduction under Section 37(1) for AY 2018-19

ITAT : Visakhapatnam ITAT Affirms DTAA Shield for UAE-based Consultant: Rs. 8.30 Crore Management Fees from Indian Firm Not Taxable Absent Permanent Establishment

ITAT : Addition under Section 69A Quashed Due to Revenue’s Failure to Serve Form 2 under IDS, 2016—Section 197(b) Invocation Not Permitted

ITAT : Delhi ITAT Invalidates PCIT’s Revision under Section 263 Due to Time-Barred and Jurisdictionless Notice under Section 153C for AY 2016-17

ITAT : Delhi ITAT Rules Maintenance and Training Services Linked to Software Not Taxable as FTS Under India-Singapore DTAA; Revenue Fails to Satisfy ‘Make Available’ Clause

ITAT : Chandigarh ITAT Declares Assessments Void for Failure to Issue Draft Orders Under Section 144C in NRI Search Cases

ITAT : Mumbai ITAT Clarifies: Section 50C Not Attracted to Assignment of Life Interest in Immovable Property Held Under Trust

ITAT : Bangalore ITAT Upholds Instakart’s Rs. 772.75 Crore Business Loss; Disallows Revenue’s Conjectural Disallowance Amid E-commerce Industry Realities

ITAT : Delhi ITAT Affirms Section 263 Revision: Failure to Invoke Section 69C on Bogus Purchases Held Prejudicial to Revenue Interests in AY 2018-19

ITAT : Delhi ITAT Rules Satellite Transmission Fees Not Royalty Under India-Hong Kong DTAA Despite Domestic Law Amendments

ITAT : Mumbai ITAT Invalidates Section 263 Revision: PCIT’s Lack of Jurisdiction Upheld Where AO’s View Was Plausible

ITAT : Delhi ITAT Upholds Section 69A Addition: Rejects Assessee’s Land Purchase Explanation, Finds No Probable Human Conduct in Cash Source Claim

ITAT : ITAT Directs TDS Credit Matching Year of Income Disclosure Despite Buyer’s Delayed Deposit in Sale of Immovable Property

HC : Bombay High Court Holds Credit for Self-Assessment Tax Paid on Undisclosed Income Must Be Allowed Against IDS Liability: Double Taxation Barred

ITAT : Delhi ITAT Confirms Non-Resident Status for UK-Based Assessee for AY 2017-18 to 2019-20, Overrules AO’s Erroneous ‘Resident’ Classification Based on Precise Day Count and Legal Precedents

ITAT : Delhi ITAT Invalidates Assessment as Time-Barred: No Evidence of Formal Reference to Singapore Tax Authorities under Section 153

HC : Tripura High Court Restricts Denial of ITC Only to Non-Bona Fide Purchasers: Purchasers Not Liable for Supplier’s GST Default

HC : Andhra Pradesh High Court Directs State to Compensate for Loss of Confiscated Silver Due to Police Negligence, Rejects Sovereign Immunity Defense

HC : Madras High Court Upholds Validity of Second Show Cause Notice Under GST for Same Period, Citing Distinct Grounds and Rejecting Bar on Multiple Proceedings

HC : Allahabad High Court Invalidates GST Demand Issued in Deceased Proprietor’s Name, Emphasizes Mandatory Notice to Legal Representatives

HC : J&K and Ladakh High Court Bars Retrospective Application of Section 54 Amendment: Upholds Assessee’s Refund Rights for Pre-Amendment Period

HC : Kerala High Court Denies GST Exemption on Group Health Insurance Premiums for Retired Bank Employees; Exemption Limited to Individual Policies

HC : Assessment Proceedings Cannot Be Initiated Against Deceased Taxpayer; Andhra Pradesh High Court Mandates Fresh Assessment with Legal Representative Involvement

HC : Andhra Pradesh High Court Upholds GST Liability Disclosed in GSTR-1 Despite Non-Receipt of Consideration: Petition Dismissed Over Non-Filing of GSTR-3B and Failure to Challenge Registration Cance…

HC : AP High Court Nullifies GST Registration Cancellation Post-CIRP, Orders Fresh Consideration of Amendment Request Based on New Management

HC : Andhra Pradesh High Court Invalidates GST Assessment Order for Lack of Signature, Citing Fundamental Defect in Proceedings

HC : Allahabad High Court Upholds Dismissal of GST Appeals for Non-Compliance with Mandatory Pre-Deposit; Assessee Barred from Raising Fresh Plea to Evade Statutory Requirement

HC : AP High Court Exempts Chit Fund Foremen from GST on Interest and Penalty Collected for Subscriber Defaults

HC : Punjab & Haryana High Court Orders Bail for Accused in Rs. 160 Crore GST ITC Fraud, Citing Documentary Evidence and Prolonged Trial

HC : Madras High Court Quashes GST Assessment Order for Failure to Ensure Effective Service of Notice Beyond Portal Upload; Stresses Mandatory Compliance with Section 169(1) and Principles of Natural …

HC : Calcutta High Court Nullifies GST Demand for Failure to Issue Detailed Notice and Speaking Order under Section 73; Mandates Adherence to Natural Justice and Section 75(6) Requirements

HC : Madras High Court Bars Double Penalty on Delayed GSTR-9 Filings; Benefit of Late Fee Waiver Extended Beyond Cut-off

SC : Supreme Court Mandates Refund: Strikes Down Customs Duty on SEZ Power Supplied to DTA Due to Lack of Legislative Authority

SC : Supreme Court Upholds Revenue’s Classification: Aluminium Mushroom Racks Held to Be ‘Aluminium Structures’ Under CTI 76109010, Not ‘Parts’ of Agricultural Machinery

HC : Madras HC Orders Forensic Audit of Assessee’s Accounts Amid Discrepancy Between GST Turnover and Inflated ITR Figures Used for Government Tenders

HC : J&K High Court Quashes GST Appellate Order for Rejecting E-Appeal on Technical Grounds: Upholds Validity of Digital Filing Where Order Uploaded on Portal

HC : Allahabad High Court Quashes Excess GST Demand for Breach of Natural Justice, Permits Fresh Action with Full Disclosure

HC : Gujarat High Court Orders Reconsideration of GST Interest Refund on Assignment of Leasehold Rights, Citing Scope of Supply Issue

HC : Gujarat High Court Upholds Adjudication Order Under Section 74 of CGST Act; Dismisses Writ on Availability of Statutory Appeal

HC : Karnataka High Court Grants Anticipatory Bail in Rs. 31.62 Crore GST Fake ITC Case: Emphasizes Non-Heinous Nature of Offence and Possibility of Compounding

HC : Karnataka High Court Declares Retrospective Tax Exemption on Clinical Trial Services to Foreign Recipients, Quashes GST Demand Orders

HC : Non-Filing of LUT/Bond Prior to Export Not a Fatal Defect: Karnataka High Court Remands GST Refund Case for Fresh Consideration

HC : Orissa High Court Quashes GST Demand-Cum-Show Cause Notice: Res Judicata Bars Department from Re-litigating Refund Adjudicated by Appellate Authority

CESTAT : CESTAT Chennai Affirms Service Tax on IRCTC for Licences to Food Outlets at Railway Stations; "Licence Fees" Deemed Commercial Rent under RIPS

HC : Calcutta High Court Upholds CESTAT's Ruling: No Interest Liability on Duty Demand in Revenue-Neutral CENVAT Credit Scenario for SAIL

HC : Karnataka High Court Quashes GST Show Cause Notice for Mistaken B2B/B2C Reporting, Affirms Right to Amend GSTR-1 Returns

Income tax - Sections 9(1)(vi) - ITAT Mumbai Rules Interest on Delayed Aircraft Lease Rentals by Irish Entity Not Taxable in India under Article 8 of India-Ireland DTAA - The ITAT, Mumbai, has held that interest earned on delayed payment of lease rentals by an Irish lessor, being an inseparable component of profits derived from the operation of aircraft in international traffic, is not taxable in India under Article 8 of the India-Ireland DTAA. The decision underscores that both lease rentals and related interest, when integrally connected to aircraft leasing business, cannot be recharacterized as royalty or interest for taxation purposes in India if the applicable DTAA provision provides exemption.

Income tax - Sections 37 - ITAT Delhi Upholds Deductibility of One-Time Distributor Compensation Paid by Tupperware India Amidst Business Model Shift: Unliquidated Damages under Section 37 Allowed - On the facts and legal analysis, the ITAT Delhi decisively held that the one-time compensation paid by Tupperware India to its distributors as part of a business model transition was a justified, revenue expenditure allowable under section 37 of the Income Tax Act, 1961. The absence of a specific liquidated damages clause or legal compulsion does not, by itself, render such expenditure inadmissible, provided it is grounded in business necessity and prudence. Tax authorities must evaluate such claims on the touchstone of commercial reality and business exigency.

Income tax - Sections 195, 119(2)(b) - Gujarat High Court Directs Refund of TDS to NRI Employee for Sale of Shares: Condones Delay in Return Filing, Disapproves State’s Unjust Enrichment - The Gujarat High Court concluded that the retention of the refund by the State, in the absence of any legal bar and when the entitlement is undisputed, amounts to unjust enrichment. The mere fact that the assessee could have filed his return online or was allegedly aware of the timelines does not negate the genuine hardship arising from his non-resident status. The AO’s refusal to condone the delay was thus found untenable. The Court directed that the delay be condoned and the refund processed in accordance with law, without interest for the condoned period.

Income Tax - Sections 9(1)(vi), 192 - ITAT Delhi Rules Salary Reimbursements to Seconded Employees Not Taxable as Fees for Technical Services under India-Japan DTAA - The ITAT Delhi has reaffirmed that cost-to-cost salary reimbursements for seconded employees, where the employment is substantively with the Indian entity and TDS compliance is ensured, cannot be treated as Fees for Technical Services under section 9(1)(vii) of the Income Tax Act or Article 12(4) of the India–Japan DTAA. Tax authorities are thus directed not to re-characterize such genuine employment-linked payments as FTS, provided there is no profit element and the Indian entity exercises control and supervision over the secondees.

Income tax - Sections 9(1)(vii), 40(a)(ia), 194J - ITAT Mumbai Holds No TDS Required on Roaming Charges: Payment for Telecommunication Connectivity Not "Technical Service" under Section 194J - The ITAT Mumbai’s decision unequivocally holds that payments made by a telecom service provider to other operators for roaming charges do not constitute “fees for technical services” under section 9(1)(vii) and, consequently, are not subject to TDS under section 194J. This decision, rooted in consistent judicial precedent, clarifies that the use of technical infrastructure alone does not render the service a technical one for the purposes of TDS. Telecom operators should thus review their compliance procedures and ensure that TDS is not unnecessarily deducted on similar roaming charge payments.

Income Tax - Sections 92CA, 144C - ITAT Delhi Quashes Assessments Passed Beyond Limitation under Section 144C(13) in High-Value Transfer Pricing Cases - The ITAT Delhi allowed the assessee’s appeals and set aside the final assessment orders for both AY 2017-18 and 2018-19. The Tribunal held that the assessments were invalid as they were completed beyond the limitation period mandated by section 144C(13) of the Income Tax Act. This decision reaffirms the strict and mandatory nature of the timeline prescribed for completion of assessments post-DRP directions, leaving no scope for relaxation by the Assessing Officer.

Income Tax – Section 250 - ITAT Bangalore Rules: No Separate Notional Interest Adjustment on Receivables When Working Capital Adjustment Already Made in Software Development TP Case - The ITAT Bangalore has categorically held that where a working capital adjustment is granted in transfer pricing analysis under TNMM, it subsumes the effect of outstanding receivables. Consequently, no separate notional interest adjustment should be made for such receivables unless the receivables in question are outside the ambit of the working capital adjustment. Taxpayers should ensure that their working capital adjustment computations appropriately capture all outstanding receivables to avoid redundant TP adjustments.

Income Tax - Sections 143(3), 144C - ITAT Delhi Rules Against Arbitrary Mark-Up on Cost-to-Cost Recoveries Absent Service Element in Transfer Pricing Dispute - On a comprehensive analysis, the ITAT set aside the TPO’s and DRP’s actions, holding that:

Cost-to-cost recoveries devoid of any service element cannot be recharacterised as services for transfer pricing purposes or subjected to arbitrary mark-up.
Aggregation of unrelated domestic and international transactions for ALP determination, absent a clear functional nexus, is not permissible.
Ad hoc ALP determination without application of prescribed methods or comparables is legally untenable.
Assessees should ensure robust segmental documentation and certification to substantiate the nature of transactions and preclude unwarranted transfer pricing adjustments.

Income tax - Sections 195, 234B - Delhi High Court Rules: Indian Subsidiary Does Not Constitute PE for US Parent Merely Due to Outsourcing and Cross-Transactions - The Delhi High Court’s decision reaffirms that the existence of a PE in India, whether fixed place, service, or agency PE, cannot be presumed solely from the outsourcing of back-office operations or cross-transactions between an Indian subsidiary and its foreign parent. The arm’s length nature of intercompany transactions, as determined by the TPO, precludes further attribution of income. This decision underscores the need for substantive facts demonstrating control, disposal, or authority to conclude contracts, not just the presence of contractual relationships or shared business interests.

Income Tax – Section 250 - ITAT Directs TPO to Apply MAP Margin to ITES Segment for Non-UK AEs if FAR Profile Matches: Fresh FAR Analysis Ordered for Transfer Pricing Adjustments - The ITAT has set aside the lower authorities’ findings on the ITES segment and has remanded the matter for a fresh determination by the TPO/AO. The TPO is directed to perform a comprehensive FAR analysis of non-UK AE ITES transactions, comparing them to those covered under the India-UK MAP resolution. If similarity is established, the MAP-agreed margin of 18% on operating costs must be applied for determining the ALP for non-UK transactions. The assessee is to be given a fair opportunity to submit relevant documentation and arguments to support its case.

Income Tax - Sections 144B, 144C - ITAT Bangalore Quashes Final Assessment Order Passed Prematurely Before 30-Day Objection Window Under Section 144C in Transfer Pricing Case - The ITAT, Bangalore, has unequivocally held that a Final Assessment Order passed before the expiry of the 30-day period available to the assessee for filing objections against the draft assessment order under section 144C(2) is without jurisdiction and, therefore, unsustainable in law. In the absence of express acceptance of the draft assessment order by the assessee, the Assessing Officer is statutorily barred from proceeding to finalize the assessment prior to the lapse of the objection window. Assessees facing similar circumstances should vigilantly assert their rights under section 144C and challenge any premature final assessment orders.

Income Tax - Sections 143(3), 144C(13), 144B - ITAT Hyderabad Directs Exclusion of Functionally Dissimilar and High Turnover Comparables in Marketing Support Services Transfer Pricing Case - The ITAT’s ruling underscores the necessity of ensuring both functional similarity and size comparability when selecting comparables for transfer pricing analysis under section 92C and Rule 10B. The exclusion of Ugam Solutions (P) Ltd., Scarecrow Communications Ltd., and I Runway India (P) Ltd. was warranted due to their functional dissimilarity and disproportionate turnover. The AO has been instructed to recompute the transfer pricing adjustment for marketing support services after excluding these companies from the final set of comparables. This decision is actionable, requiring the AO to revisit the transfer pricing adjustment calculation in light of the revised comparables set.

ITAT Delhi Rules Bright Line Test Inapplicable for Benchmarking AMP Expenditure; Transfer Pricing Adjustment for Brand Promotion Nullified in LG Electronics Case - In light of the consistent judicial position, the ITAT Delhi concluded that AMP expenses, when incurred as part of normal business operations to promote sales, cannot be treated as a separate international transaction for transfer pricing purposes. The application of the Bright Line Test for benchmarking such expenditure stands rejected. Tax authorities are directed not to make transfer pricing adjustments on AMP expenses if the overall arm’s length analysis under TNMM has been accepted.

Madras High Court Quashes FCRA Registration Rejection: Compounding of Offence and Lack of Notice Vitiate Order Against Charitable Trust - The Madras High Court set aside the impugned order rejecting the petitioner’s FCRA registration, remanding the matter to the competent authority for fresh consideration. The authority was directed to take into account all relevant materials, issue a detailed and specific notice to the petitioner regarding any alleged transfer of foreign contribution, and provide an opportunity for a proper response. The Court reaffirmed the primacy of natural justice and transparency in administrative proceedings under the FCRA.

Bombay High Court Affirms Enforcement of Foreign Arbitral Awards, Permits Lifting of Corporate Veil Against Diverted Assets—Imposes Costs for Frivolous Litigation - The Bombay High Court has reaffirmed that foreign arbitral awards can be enforced against the assets of group companies, provided those assets were improperly diverted from the original award debtor to defeat execution. The Court has clarified the application of limitation and res judicata, and underscored the limited scope of public policy objections. Award creditors should meticulously trace asset transfers and invoke the Court’s power to lift the corporate veil when faced with deliberate attempts to evade enforcement. The decision also signals the Courts’ readiness to impose costs for vexatious and obstructive litigation.

Delhi High Court Bars Re-litigation of FERA-Linked Property Dispute Citing Constructive Res Judicata and Finality of Civil Proceedings - The Delhi High Court has unequivocally held that issues conclusively decided by a civil court—particularly those determined on appeal under Section 96 CPC—cannot be reopened in writ proceedings under Article 226, even if the dispute involves questions of statutory compliance under FERA. The doctrine of constructive res judicata bars such attempts at relitigation, and parties are expected to exhaust all opportunities within the original trial and appellate process, including adducing evidence and raising all relevant legal grounds. Any dissatisfaction with the findings or the procedure adopted must be addressed through appropriate appellate channels, not by invoking the extraordinary writ jurisdiction of the High Court.

Income tax - Sections 40(a)(i), 195, 201 - ITAT Ahmedabad Rules in Favour of Assessee: No TDS Default for Commission Paid to Non-Resident Where DTAA Provisions Followed - In light of the facts, legal provisions, and judicial precedents, the ITAT held that where an assessee has made commission payments to non-residents without a PE in India and in compliance with the applicable DTAA, no TDS is required under section 195. Consequently, the assessee cannot be treated as an assessee in default under section 201(1) or made liable for interest under section 201(1A) for such payments.

Income tax - Sections 90(2) - ITAT Mumbai Upholds Treaty Exemption for Singapore-Based Strategic Investor: Substance over Form in Post-PPT Regime - The ITAT’s decision reaffirms that for entities incorporated in Singapore, the satisfaction of the LOB and PPT conditions under the India–Singapore DTAA—supported by genuine commercial substance, valid TRC, adequate operational expenditure, and a bona fide business purpose—entitles them to claim exemption on capital gains arising from the sale of shares acquired prior to April 1, 2017. The focus should remain on the economic substance and intent, not mere operational form or technicalities.

Income Tax - Sections 115BBE, 133 - Unexplained Cash Deposits During Demonetisation: ITAT Mumbai Overturns Addition After Accepting NRI Source Documentation - The ITAT Mumbai’s decision underscores that cash deposits, even during periods of heightened scrutiny like demonetisation, cannot be treated as unexplained income merely due to their quantum or timing, provided the assessee is able to satisfactorily establish the source with proper documentation. The Tribunal’s order mandates deletion of the addition and annuls the tax levied under Section 115BBE, directing the revenue authorities to accept the explanation supported by the documentary trail.

Income Tax - Sections 9(1)(vii), 144C, 270A, 274 - ITAT Pune Rules IT Support Services Not Taxable as FTS Absent “Make Available” Criteria under India-Singapore DTAA - The ITAT Pune’s decision confirms that IT support and maintenance services, when not “making available” technical knowledge or skills to the recipient as per Article 12(4) of the India–Singapore DTAA, are not taxable in India as Fees for Technical Services. Judicial discipline requires tax authorities to follow binding precedents, particularly where facts remain unchanged. Assessees in similar positions should ensure that the nature of their services is clearly documented and that reliance on prior favorable judicial decisions is appropriately maintained throughout the litigation process.

NCLAT Upholds NCLT’s Discretion: Waiver under Section 244 Permitted in Family Trust Shareholding Dispute Despite Statutory Thresholds - The NCLAT affirmed the NCLT’s exercise of discretion under the proviso to Section 244(1), holding that the existence of exceptional circumstances—specifically the shareholding arrangement through a family trust and demonstrated prejudice—justified the grant of waiver. The Tribunal clarified that civil litigation concerning trust matters does not restrict the NCLT’s power to grant such waiver for proceedings under Sections 241 and 242. As a result, the NCLAT found no merit in the appeal and declined to interfere with the NCLT’s order.

Supreme Court Upholds Dismissal of Challenge Against Share Transfer Proceedings Alleged to Be Fraudulent—No Legal Right Infringement Found - This decision reinforces the principle that mere allegations of fraud in share transfers, absent demonstrable infringement of legal rights, are insufficient to invoke the jurisdiction of the NCLT or to sustain an appeal. Parties must present clear evidence of their rights being prejudiced to obtain relief under Sections 59, 213, 241, and 242 of the Companies Act, 2013. The Supreme Court’s dismissal of the appeal makes it clear that appellate forums are not obliged to interfere unless there is a substantiated breach of legal entitlements.

Section 302 of the Companies Act, 2013 - NCLT Ahmedabad Orders Dissolution of Rahul Finstock Pvt. Ltd. Under Section 302(2) for Inactivity and Absence of Liabilities - Based on the thorough compliance with statutory provisions and the absence of any outstanding liabilities or legal impediments, the NCLT Ahmedabad Bench held that the continuing existence of Rahul Finstock Private Limited served no useful purpose. Accordingly, the company was ordered to be dissolved under section 302(2) of the Companies Act, 2013. This decision is directly actionable: companies that have become inactive and have settled all liabilities can seek dissolution by strictly following the procedural requirements and ensuring clearances from relevant authorities.

NCLAT Clarifies NCLT’s Exclusive Jurisdiction Over Share Register Rectification Disputes, Sets Aside Dismissal Based on Pending Civil Proceedings - The NCLAT’s decision establishes that the NCLT cannot decline to exercise its jurisdiction over rectification of the register of members under Section 59 merely because related disputes are pending before a civil court. Section 430 unequivocally bars civil courts from adjudicating matters within the exclusive purview of the NCLT/NCLAT, including those involving disputed questions of fact. Accordingly, the NCLT must now hear the matter on merits without deferring to the outcome of any parallel civil proceedings.

Supreme Court Bars Private Complaints for Fraud and Repeated Default under Companies Act; Orders Transfer of IPC Charges to Competent Court - The Supreme Court unequivocally held that prosecution for fraud and repeated default under the Companies Act must strictly comply with the complaint procedure set out in Section 212(6). Any cognizance taken by a Special Court on a private complaint for offences under Sections 448 and 451, without the requisite government authorization, is unsustainable in law and must be quashed. However, IPC-related criminal allegations survive and must be adjudicated by the court of competent territorial jurisdiction. The decision upholds the statutory safeguards against frivolous or malicious prosecution in company law matters and ensures that criminal proceedings are properly channeled according to legislative intent.

NCLAT Reiterates Strict 90-Day Cap for Appeals Under Section 421(3); Exclusion of Time for MCA Sanction Not Permissible - The NCLAT’s decision underscores that the limitation period for filing appeals against NCLT orders under Section 421(3) of the Companies Act, 2013, is strictly confined to 45 days, with a possible extension of up to 45 additional days for sufficient cause. Appeals filed beyond 90 days from the date of the NCLT order being made available, regardless of the circumstances or reliance on the Limitation Act’s exclusion provisions, are liable to be dismissed as time-barred. Parties intending to appeal must, therefore, ensure strict adherence to these statutory timelines.

Sections 441, 92 of the Companies Act, 2013 - NCLT Mumbai Allows Compounding of First-Time AGM Delay by Company Amidst Management Dispute and Operational Hurdles - The NCLT Mumbai Bench has, in this decision, held that where a company self-reports its first default in holding AGMs within statutory timelines and demonstrates genuine hardship and lack of mala fide intent, the offence is compundable under section 441 of the Companies Act, 2013. The Tribunal directed the company to remit the compounding fee as imposed, thereby regularising the default and closing further penal proceedings. Companies facing similar predicaments should promptly disclose the default, file for compounding, and ensure timely payment of the compounding fee to mitigate further penal actions.

Supreme Court Clarifies: Company Law Board Lacked Power to Condon Delay in Appeals Under Section 58(3) of Companies Act, 2013 Prior to NCLT Constitution - Based on the Supreme Court’s decision, any condonation of delay in filing appeals under Section 58(3) of the Companies Act, 2013, by the CLB prior to June 1, 2016, is without legal foundation. Practitioners and litigants must be mindful that the CLB had no jurisdiction to invoke Section 5 of the Limitation Act, 1963, for appeals filed within this transitional period. Appeals must have been filed strictly within the prescribed limitation period unless the forum was the NCLT or NCLAT after June 1, 2016, when Section 433 became operative.

Calcutta High Court Lifts Bank Account Freeze After ROC Removes "Management Dispute" Marking; No Locus for Removed Directors or Bank to Contest - In conclusion, the Calcutta High Court found no legal justification for the continued freeze of appellant no.2-company’s bank accounts once the ROC had removed the “management dispute” marking at the MCA’s direction. The bank’s refusal to defreeze the accounts was ultra vires, and the respondents’ attempts to challenge the operation of the accounts lacked legal standing given their removal as directors and the absence of any stay from the NCLAT. The impugned order of the Single Judge was set aside for want of reasoned findings and compliance with procedural requirements.

NCLAT Upholds Dismissal of Locus Standi-Based Objection to Amalgamation Scheme; Reduces Cost to Rs. 2.5 Lakhs - The Tribunal’s order underscores the necessity for objectors in amalgamation proceedings to establish sufficient locus standi. Objections lacking a direct legal basis or already addressed within the scheme are liable to be dismissed at the threshold. Parties aggrieved by such schemes should consider alternate statutory remedies where available, such as those under the IBC. Additionally, the Tribunal has signaled its willingness to temper cost orders where bona fide intent is demonstrated and there is no serious contest from the opposing party.

NCLAT Upholds NCLT’s Forensic Audit Order in Alleged Mismanagement Despite Absence of Explicit Plea: Discretion under Section 242(4) Affirmed in Non-Operational Company Dispute - In light of the facts and legal principles, the NCLAT affirmed that a forensic audit may be ordered as an interim measure under Section 242(4) of the Companies Act, 2013, even when not specifically prayed for in the main petition, if the allegations of mismanagement and fund siphoning warrant such scrutiny. The decision underscores that the Tribunal’s discretion in such matters is broad, provided it is exercised in the interest of justice for the fair adjudication of company disputes.

NCLAT Upholds Interim Stay Order Despite Lack of Detailed Reasons, Directs Expeditious Hearing of Stay Vacation Application under Companies Act - The NCLAT has reaffirmed that interim orders granted by the NCLT under Sections 241 and 242 of the Companies Act, 2013, do not require detailed reasoning. The requirement is limited to the Tribunal’s prima facie satisfaction for the necessity of granting interim relief. Parties aggrieved by such orders must utilize the procedural remedy of filing a Stay Vacation Application and are entitled to have their contentions heard fully at that stage. The NCLT is obligated to decide such applications on their merits, and such decisions should be made expeditiously to avoid unnecessary delays in the main proceedings.

NCLAT Orders Revival of Llyod Logic Systems Pvt. Ltd. in ROC Records Based on Timely Appeal, Asset Existence, and Income Tax Department’s No Objection - In light of the NCLAT’s findings, it is clear that companies with demonstrable ongoing business activities, asset holdings, and timely appeals, especially when supported by no objection from the Income Tax Department, are well-positioned to secure restoration under Section 252 of the Companies Act, 2013. It is actionable for companies in similar circumstances to ensure prompt initiation of appeals and to maintain comprehensive documentation of business activities and compliance history when seeking such relief.

Supreme Court Directs NCLT to Expedite Merits-Based Review after Director’s Term Expires - In summary, the Supreme Court’s order refrains from any pronouncement on the substantive dispute concerning the expiry of the director’s term. Instead, it ensures that the company petition will receive a full merits-based hearing before the NCLT without further procedural delay. All parties have the liberty to advance their arguments before the Tribunal, which is now obliged to decide the matter expeditiously.

Supreme Court Upholds NCLAT’s Decision: Petition for Rectification of Register Dismissed on Grounds of Delay and Laches - On the facts and law, the Supreme Court concluded that the rejection of the petition for rectification of the register of members on the ground of delay and laches was justified. The findings of fact made by the NCLAT were affirmed, and there was neither error of law nor perversity in the appreciation of evidence. The order of the NCLAT was upheld, and the appeal was dismissed.

SEBI’s Enhanced Scrutiny on Investment Advisers: SAT Upholds ₹20 Lakh Penalty on Firm and Directors for Multiple Regulatory Breaches - The Securities Appellate Tribunal’s affirmation of SEBI’s order highlights the necessity for registered Investment Advisers to maintain strict compliance with all regulatory requirements, including clear segregation between generic advice available to the public and tailored services provided for consideration. The case serves as a clear warning that deficiencies in documentation and attempts to circumvent regulatory definitions will be met with significant financial penalties, and that remedial measures taken only after regulatory discovery will not mitigate culpability.

NCLAT Chennai Dismisses Appeal as Barred by Limitation: Filing After Statutory Period Held Inadmissible - The NCLAT’s decision unequivocally reinforces the statutory boundaries laid down in Section 421(3) of the Companies Act, 2013. Appeals filed beyond the maximum period of 90 days, even by a single day, are to be dismissed as barred by limitation. No discretionary power rests with the Tribunal to condone delay beyond this period, irrespective of the circumstances.

Regular Bail Denied Despite Prolonged Trial Delay in Adarsh Credit Cooperative Society Funds Siphoning Case: Punjab & Haryana High Court Upholds Stringency under Section 212(6) of Companies Act - The Punjab and Haryana High Court, after a thorough assessment of the facts and legal framework, held that the petitioner was not entitled to regular bail. The prolonged delay in trial, in the absence of any substantial change in circumstances or new evidence, was insufficient to override the statutory rigour of Section 212(6) of the Companies Act, particularly given the gravity of the offence and the prior adverse orders on bail. The petition was consequently dismissed with a directive to the trial court to take steps for expeditious disposal of the case.

NCLT Orders Refund and Investigation in Case of Unapproved Investments Causing Company-Wide Loss; Former High Court Judge Appointed as Administrator - The NCLT, Kochi Bench, has conclusively held that where a series of corporate actions collectively constitute oppression or mismanagement, minority shareholders are entitled to relief under Section 241 of the Companies Act, 2013, irrespective of when the acts were completed. In cases where company-wide loss is established and the majority shareholders fail to justify their actions, the Tribunal is empowered to order restitution and ensure accountability through investigations and interim management measures.

NCLAT Overturns NCLT Rejection: Amalgamation Scheme Approved Under Sections 230-232 in Absence of Objections - The NCLAT’s decision establishes that, where all statutory requirements under Sections 230 to 232 of the Companies Act, 2013 are fulfilled and there are no objections from stakeholders or regulatory authorities, the Tribunal is obliged to sanction the scheme. Any rejection in such circumstances must be legally justified on the basis of non-compliance or prejudice to stakeholders; otherwise, the order is liable to be overturned on appeal.

NCLAT Chennai Appoints Retired High Court Judge as Mediator After Parties Fail to Agree in Company Dispute; Clear Directions on Mediation Remuneration and Timeline - The NCLAT’s decision demonstrates a pragmatic approach to dispute resolution, emphasizing mediation as a preferred mechanism and intervening decisively to resolve impasses regarding mediator selection. The Tribunal’s structured directives regarding remuneration and timelines reflect a commitment to both procedural fairness and efficiency.

NCLAT Upholds Dismissal of Recall Plea in Company Petition Withdrawal: No Relief for Delay or Misuse of Inherent Powers under Rule 11, NCLT Rules - Upon review of the facts and legal provisions, the Appellate Tribunal has affirmed that the withdrawal of the company petition was in line with the authorizations and procedural rules in force. The failure to timely challenge the withdrawal, combined with the improper invocation of inherent powers under Rule 11, rendered the Appellant’s recall application unsustainable. The Tribunal’s decision underscores the necessity for parties to act diligently and within prescribed legal frameworks, particularly where consent orders are involved.

NCLAT Chennai Upholds Settlement in Family Dispute: Recovery of Undue Gains and Shareholding Parity Achieved under Sections 241 & 242 of Companies Act, 2013 - In light of the settlement reached and the actions taken to implement its terms, including the recovery of the agreed sums and the establishment of an equal shareholding structure, the NCLAT has effectively brought finality to the dispute. The closure of the appeal in accordance with the terms of the Memorandum of Settlement ensures that the reliefs sought under Sections 241 and 242 are addressed without further litigation, providing a legally enforceable and practical resolution for all parties involved.

SEBI Orders Immediate Halt and Disgorgement of ₹601 Crore Against ASTAPL/AS for Unauthorized Investment Advisory Activities Using Misleading Claims - On the basis of the facts established, SEBI concluded that emergent intervention was necessary to protect the interests of investors from the unregistered investment advisory and research analyst activities of ASTAPL/AS. The direction to cease and desist, coupled with the order to disgorge ₹601 crore, including the ₹546 crore attributable to the eight identified courses, is an actionable measure to prevent further investor harm and to ensure regulatory compliance.

NCLAT Chennai Denounces Malicious Allegations by Appellant; Opens Door for Criminal Prosecution Against Appellant for False Accusations Against Counsel - Based on the current decision, legal professionals who act strictly upon client instructions and in good faith cannot be subjected to allegations of professional misconduct without substantive evidence. Frivolous and malicious allegations by clients against their own representatives may expose such clients to criminal prosecution for malicious prosecution. Legal practitioners should ensure proper documentation of client instructions, while clients must exercise caution and refrain from baseless allegations, as these may have serious legal consequences.

Calcutta High Court Affirms NCLT’s Exclusive Jurisdiction Over Oppression and Mismanagement; Civil Suit on EOGM Actions Held Not Maintainable - The Calcutta High Court has unequivocally held that where the substance of a dispute relates to oppression and mismanagement, particularly those arising from actions taken in an EOGM, such matters are to be exclusively addressed by the NCLT. Civil courts are precluded from entertaining such suits owing to the statutory bar under Section 430 of the Companies Act. Parties seeking remedies for oppressive conduct must approach the NCLT, and any attempt to invoke the jurisdiction of the civil court will be non-maintainable.

Bombay High Court Disqualifies Auditor Appointment for Forensic Audit Due to Conflict of Interest and Non-Compliance with RBI Master Directions - In light of the above findings, the Bombay High Court held that the appointment of Defendant No. 2 as an External Forensic Auditor was vitiated by conflict of interest and non-compliance with requisite statutory qualifications as mandated by both the 2016 and 2024 RBI Master Directions. The protracted delay in report submission further underscored a lack of adherence to statutory obligations. Consequently, the Court restrained further proceedings based on the impugned Show Cause Notices and audit report, thereby granting interim relief to the Plaintiff.

Section 252 of the Companies Act, 2013 - NCLT Cuttack Bench Upholds RoC’s Decision: Struck-off Company Not Entitled to Restoration Merely on Asset Ownership - Based on the facts and relevant legal provisions, the NCLT, Cuttack Bench, concluded that the company was not “in operation” at the time of its name being struck off. The leasing of an asset, without any other business or operational activity, does not satisfy the statutory requirement under section 252(3). The Tribunal also found no “otherwise just” grounds for restoration, as passive asset holding alone cannot merit restoration. Accordingly, the application for restoration was dismissed.

Request for Issuance of Share Certificate Not Maintainable Under Section 59, Companies Act, 2013—Summary Rectification Jurisdiction Limited to Corrections in Register of Members - The NCLAT upheld the decision of the NCLT, affirming that proceedings under Section 59 of the Companies Act, 2013, are not maintainable where the applicant does not hold a validly executed share certificate, and where the relief sought is essentially for the issuance of such a certificate rather than rectification of the register. The decision clarifies that Section 59 is limited to rectification based on existing, valid documentation, and is not a substitute for substantive fact-finding or adjudication of disputes about entitlement to shares or the validity of share certificates. Parties seeking initial issuance of shares or resolution of complex disputes must approach the appropriate civil forum.

NCLAT Upholds NCLT’s Authority to Order Forensic Audit in Share Transfer Dispute Amid Matrimonial Discord: Emphasizes Principles of Natural Justice - The decision underlines that, in proceedings before the NCLT and NCLAT, the paramount consideration is adherence to the principles of natural justice. Where allegations of document fraud arise, particularly within complex factual matrices involving personal disputes, Tribunals are empowered to order independent forensic audits on the basis of prima facie satisfaction without exhaustive preliminary analysis. Such orders are procedural and do not preclude the parties’ right to contest the auditor’s findings in due course. Appellants should ensure their objections are substantively supported and cannot merely rely on claims of procedural impropriety.

CESTAT Chandigarh Affirms Refund Eligibility for Duty Paid on By-Products in Rice Bran Oil Manufacturing; Dismisses Unjust Enrichment Allegation - The CESTAT Chandigarh, relying on the authoritative Larger Bench decision and the uncontroverted Chartered Accountant’s Certificate, concluded that the by-products in question are exempt from excise duty, and the refund claim is not hit by the doctrine of unjust enrichment. The order thus directs the Revenue to process the refund as per law, reinforcing the principle that refund denial cannot be sustained if the incidence of duty has not been passed on and the product is legally exempt.

Calcutta High Court Affirms Customs Seizure Powers Near Borders: Officer’s Prima Facie Satisfaction Sufficient for Action - In dismissing the appeal, the Calcutta High Court has reaffirmed that customs authorities may validly exercise preventive powers in inland areas near international borders, provided there is a prima facie basis for action. The officer’s “reason to believe” need not be exhaustively recorded in the seizure memo, and courts will not second-guess the sufficiency of the officer’s belief if reasonable grounds are evident from the record. Allegations of corruption, unless substantiated with evidence in the same proceedings, do not vitiate customs actions taken in accordance with the Act.

CESTAT Chennai Remands Gold Jewellery Import Case: Reversal of Burden of Proof under Section 123 and Principles of Natural Justice at Centre of Dispute - The CESTAT Chennai’s ruling underscores that in cases involving import of gold jewellery with exemption or concessional claims under specific notifications, the burden of proof to establish compliance with eligibility conditions—including local value addition and Rules of Origin—rests squarely on the importer, especially given the statutory reversal under Section 123 of the Customs Act. However, the proceedings must strictly adhere to the principles of natural justice, including provision of all relied upon documents. The matter has been remanded for a fresh hearing, ensuring the appellant has access to all pertinent evidence and the outcome of any reference to foreign authorities.

CESTAT Hyderabad Remands Customs Duty Dispute on Re-imported Expired Drugs Permitted Solely for Destruction - The decision clarifies that re-importation of goods, even for destruction, triggers customs duty assessment at the time of re-entry into India. Importers are required to ensure proper valuation and duty determination during clearance, even where subsequent destruction is intended and approved by the competent regulatory authority. Relief from duty may be sought via remission or abandonment provisions under Section 23 of the Customs Act, but these must be formally invoked and processed. The Tribunal has remanded the matter for the adjudicating authority to properly examine these aspects and determine liability in accordance with the law.

CESTAT Chandigarh Eases Provisional Release of Allegedly Misdeclared Imports, Mandates Reasonable Bond and Bank Guarantee Terms - In light of the above, the CESTAT Chandigarh held that while safeguarding the interests of the Revenue is imperative, conditions for provisional release should not be so draconian as to destroy the importer’s business. The Tribunal’s directions strike a fair balance between investigation integrity and commercial viability by requiring a full-value bond and a 30% duty bank guarantee, rather than the higher, more impractical security measures initially imposed.

Karnataka High Court Quashes Excise Demand: Absence of Goods Classification in SCN Held Fatal to Jurisdiction - The Karnataka High Court’s judgment underscores that a show cause notice under the Central Excise Act must explicitly state the nature and classification of the goods to validly initiate proceedings for excise duty demand. Failure to do so robs the authorities of the necessary jurisdiction to make such demands. Assessees confronted with defective SCNs lacking essential jurisdictional facts can successfully contest the validity of such notices and all subsequent proceedings.

CESTAT Upholds Duty Demand on Clandestine Clearances: Red Diary Entry and Confessional Statements Deemed Conclusive Evidence - The CESTAT Allahabad dismissed the appellant’s arguments and upheld the demand for excise duty and interest, relying on the presumption of correctness attached to seized documents under Section 36A of the Central Excise Act, 1944, and the admitted statements under Section 14. The belated affidavit was rejected, and the Tribunal reaffirmed the principle that facts admitted in proceedings require no further proof. Attempts to raise new factual disputes at the appellate stage, after having acquiesced before lower authorities, were barred by res judicata.

CESTAT Quashes Central Excise Demand: No Proof of Clandestine Removal Where Only Third-Party Diaries and Coerced Statements Relied Upon - On comprehensive analysis, the CESTAT found that the department had not discharged its burden of proof for establishing clandestine removal. The reliance on third-party diaries and statements, without any direct or corroborative evidence, was held to be insufficient. The Tribunal, therefore, set aside the impugned order dated 28.06.2024 passed by the Principal Commissioner and allowed the appeal, holding that the alleged clandestine removal was not substantiated.

Bombay High Court Upholds CAAR Ruling: Customs Cannot Seize Menthol Scented Sweet Supari Cleared Under Chapter 21069030 - Based on the facts and legal provisions, the Bombay High Court concluded that customs authorities cannot contravene a binding advance ruling issued by CAAR regarding the classification of imported goods. Where the FSSAI has cleared goods for human consumption and all statutory requirements have been met, seizure on grounds of mis-classification is unwarranted unless the ruling is set aside by a competent forum. The Petitioner is thus entitled to clearance of the goods upon furnishing a bond for the duty amount demanded.

CESTAT Delhi Directs Re-Assessment of Customs Duty Based on Lower Transaction Value Amidst Mis-Declaration in Import of PU Coated Fabric - In light of the above findings, the Tribunal partially allowed the appeal by directing the customs authorities to re-determine the assessable value at U.S. $1.8 per metre in accordance with Rule 4 of the Valuation Rules. The customs duty, as well as the penalty under Section 114A, must be recalculated on this basis. The confiscation of goods and the quantum of redemption fine and penalty under Section 112(a) were upheld.

Customs Authority Rules "CO2 Sustain 2501" to be Classified as Non-Ionic Organic Surface-Active Agent under Heading 3402 4200 - On the basis of the above analysis, the Customs Authority concluded that "CO2 Sustain 2501," being a pasteurized non-ionic surfactant, is appropriately classifiable under Heading 3402, and more specifically under CTI 3402 4200, as a non-ionic organic surface-active agent. However, this classification remains subject to confirmation by testing at the time of importation to ensure compliance with the technical criteria laid down in the HSN Explanatory Notes and Chapter Note 3 to Chapter 34.

Advance Ruling on Air Conditioner Parts Imported in CKD/SKD Form Upheld for Extended Validity: Customs Authority Clarifies Classification and FTA Benefits - In light of the above, the Customs Authority for Advance Rulings has confirmed that the classification of air conditioners and their parts imported in CKD/SKD form should continue as previously ruled, under the appropriate sub-headings such as CTSH 84151010 or related sub-headings, provided the essential character test is satisfied and all parts are imported together. The earlier advance ruling is extended for a further period of three years, obviating the need for re-adjudication unless there is a change in facts or law.

CESTAT Hyderabad Quashes Excise Duty Demand on Waste Mud (Spent Earth) Citing Withdrawal of CBIC Circular and Applicability of Exemption Notification - In view of the rescindment of CBIC’s 2009 circular and the subsequent clarifications issued in 2016, together with the effect of Notification No. 89/1995-CE, the demand for excise duty on waste mud (spent earth) arising as an involuntary by-product during the bleaching of crude palm oil cannot be sustained. Assessees facing similar demands should ensure that the factual circumstances of the involuntary generation of waste are clearly demonstrated and that reliance is placed on the latest CBIC instructions and applicable exemption notifications. It is actionable for assessees to contest any ongoing or future demands relying on obsolete circulars or inapplicable legal positions.

CESTAT Chennai Remands CENVAT Credit Dispute for Fact-Based Determination of “Place of Removal” in FOR Sales; GTA Credit Eligibility Hinges on Contractual Terms - The CESTAT Chennai has categorically set aside the demand and penalty imposed for alleged wrongful availing of CENVAT credit on GTA services, holding that the adjudicating authority failed to conduct the mandatory factual verification of the sale contracts and related documents. The Tribunal has remanded the matter for a focused enquiry on the nature of the sale transactions, directing the authority to re-determine the “place of removal” in line with judicial and administrative precedents. Taxpayers facing similar disputes must ensure that all contractual documents, invoices, and transport records are properly maintained and can demonstrate the actual point at which ownership and risk transfer in FOR destination sales.

CESTAT Delhi Upholds CENVAT Credit on Outward Transportation up to Customs Premises for 2013-17: Reliance on Mangalam Cement and Prism Johnson Rulings - In light of the clear legal position established by the Mangalam Cement and Prism Johnson cases, and supported by the CBEC Circular, the CESTAT Delhi unequivocally held that the Principal Commissioner’s decision to allow CENVAT credit on outward transportation of goods on FOR destination up to the customs premises was legally correct. Assessees should ensure that contractual terms and documentation clearly establish that sale is on a FOR destination basis and that the risk and title to goods remain with the seller until delivery at the buyer’s or customs premises for similar credit eligibility.

Madras High Court Upholds Department’s Invocation of Extended Limitation Period in Absence of Factual Record on Knowledge; Limitation Plea Not Entertained When Raised for First Time at Tribunal Stage - In this decision, the Madras High Court has reaffirmed the principle that limitation, as a legal plea, can be raised at any stage only when it is a pure question of law and all necessary facts are on record. Where the plea involves a mixed question of law and fact, and the requisite facts are not part of the record, such a plea cannot be entertained for the first time at the appellate stage. The Tribunal’s refusal to consider the limitation argument under such circumstances was found to be justified.

CESTAT Chennai Rules Out CVD on Silk Fabrics Imported Under Advance Authorization: Extended Limitation and Penal Proceedings Also Set Aside - On the basis of the CESTAT Chennai’s decision, it is actionable for importers under the Advance Authorization scheme to note that CVD was not leviable on silk fabrics imported during 2012–2013, as per the Supreme Court’s interpretation. Where duty and interest are voluntarily paid prior to the issuance of a Show Cause Notice, proceedings under the extended period of limitation (Section 28(4)) are not maintainable, and penal and confiscatory actions cannot be sustained absent evidence of willful suppression or fraud. Importers should ensure that all disclosures and payments are formally documented and communicated to the Department to avail themselves of the statutory protection under Section 28(2).

CESTAT Chennai Restricts Customs Duty Reclassification and Penalties: Confirms Partial Demand Within Jurisdiction, Quashes Extended Limitation and Extraterritorial Actions - On the basis of the present decision, only the reclassification and demand of differential duty (with interest) for door locks imported within the territorial jurisdiction of the adjudicating authority, and within the normal limitation period, was upheld. All other components of the impugned order, particularly those relating to extraterritorial imports, extended period demands, confiscation, and penalties, were quashed for lack of jurisdiction and absence of mala fide intent. The Tribunal’s findings underscore the necessity for the Revenue to strictly adhere to evidentiary requirements and jurisdictional mandates while raising demands.

Voluntary Pre-SCN Payment Shields Importer from Confiscation and Penalty: CESTAT Hyderabad Applies Section 111(l) in Absence of Malafide Intent - The CESTAT Hyderabad’s decision makes it clear that where an importer voluntarily discloses short-payment of Customs duty and remits the differential amount along with interest before a Show Cause Notice is served, and where no malafide intent can be established, the authorities cannot sustain demands for confiscation or penalties. Appellants in similar factual circumstances should ensure full and candid disclosure and prompt payment to avail themselves of this protection.

CESTAT Hyderabad Upholds Penalty for Abetment in Gold Smuggling: Failure to Establish Ownership Leads to Absolute Confiscation under Customs Act - In light of the evidence, contradictions in the statements, and the lack of corroborative ownership documents, the CESTAT Hyderabad affirmed that the penalty imposed under Section 112(a) and (b) on Shri Jacky Kumar Jain was legally justified. The invocation of Section 123 was appropriate, and the order of absolute confiscation was sustained. The decision reinforces the principle that claim of ownership without supporting evidence, especially in cases of seizure based on intelligence and concealment, will not suffice to rebut statutory presumptions under the Customs Act.

Customs Broker License Revocation Set Aside by CESTAT: Tribunal Censures Licensing Authority for Failure to Establish Broker’s Connection to Exporters - In view of the Tribunal’s findings, the order revoking the customs broker license and imposing penalty was quashed for lack of substantiated evidence and failure to follow the principles of natural justice. The authorities’ failure to provide foundational documents and verify the appellant’s connection to the impugned exports rendered the proceedings against the broker untenable. Actionable takeaway: Licensing authorities must ensure robust fact-checking and provide assessees with all relevant documents and a fair opportunity to respond before initiating punitive action.

CESTAT Kolkata Declares Coupling Assembly as ‘Manufacture’ under Central Excise, Dismisses Duty Demand on Limitation and Penalty Grounds - The CESTAT Kolkata has unequivocally held that the processes of assembling, painting, and allied activities undertaken by the appellant in respect of couplings under Chapter 84 amount to ‘manufacture’ as per Section 2(f)(ii) read with Section Note 6 of the Central Excise Tariff Act, 1985. However, the demand for duty for the period covered by the first Audit Memo was set aside as unsustainable due to the Department’s prior knowledge and absence of suppression, thus barring the invocation of the extended limitation period. The penalty imposed was also annulled, as no mala fide intent or suppression was established.

CESTAT Mumbai Quashes Denial of Concessional Excise Duty: No Evidence of Raw Material Sourcing from EOU Justifies Exemption under Notif. No. 23/2003-CE - Based on the detailed analysis, the CESTAT, Mumbai, set aside the denial of the concessional excise duty benefit under Notification No. 23/2003-CE. The Tribunal held that in the absence of concrete evidence showing that the raw materials were imported or sourced under circumstances that would violate the notification’s conditions, the exemption could not be denied. The actionable conclusion for assessees is to ensure proper documentation and maintenance of records evidencing the source and nature of raw materials, as the burden lies with the revenue to prove ineligibility for exemption.

Customs Advance Ruling: Vehicle Control Unit (VCU/PCU) Classified Solely as Vehicle Part, Not as Standalone Electrical or Regulating Equipment - In summary, the Customs Authority determined that the VCU/PCU is properly classifiable as a part and accessory of electric vehicles, under CTH 8708 for three/four-wheeled vehicles and CTH 8714 for two-wheeled vehicles, and not under CTH 8537, 8543, or 9032. This actionable conclusion directs importers and manufacturers to classify VCU/PCU with the appropriate vehicle part heading for customs purposes, ensuring compliance and avoiding misclassification.

Supreme Court Upholds Validity of Customs Broker License Revocation and Penalty: Due Process under CBLR, 2018 Confirmed - In summary, the Supreme Court’s affirmation of the High Court’s order underscores the sufficiency of the procedural safeguards provided under CBLR, 2018, and the latitude available to customs authorities in ensuring compliance. The decision reiterates that unless a substantial procedural irregularity is demonstrated, particularly one causing actual prejudice, appellate courts will not lightly set aside actions taken under statutory regulations.

Mumbai Advance Rulings Authority Classifies IV3-500MA Smart Vision Sensor Under Heading 9031 49 00 as Optical Inspection Instrument - Based on a thorough review of the product’s intended use, technical composition, and applicable legal provisions under the Customs Tariff, the IV3-500MA Smart Vision Sensor stands appropriately classified under Customs Tariff Heading 9031 49 00 as “Other optical instruments and appliances.” Importers and distributors should ensure that similar products, whose primary function is automated, optical-based inspection and checking, are declared under this heading rather than as generic parts or accessories.

Customs Advance Ruling: Embolization Coil Classified Under CTI 9021 90 90 as Implant Compensating Medical Defect, Not as Artificial Body Part - The Customs Authority for Advance Rulings has decisively ruled that embolization coils proposed for import should be classified under CTI 9021 90 90 as “other appliances, implanted in the body, to compensate for a defect or disability,” and not under CTI 9021 39 00 as “other artificial parts of the body.” Importers and stakeholders should ensure that tariff classification aligns strictly with the legal language and functional scope as interpreted by Indian law, rather than relying on foreign precedents or analogies.

CESTAT Kolkata Upholds Refund Eligibility on Duty Paid Without Year-End Discount Disclosure: Adjudicating Authority’s Order Affirmed, Excess Refund Allegation Set Aside - The present decision reaffirms that only discounts which are known and disclosed prior to the sale of goods can be deducted from the assessable value under Section 4(1)(a) of the Central Excise Act, 1944. Businesses are not required or compelled to claim deductions for discounts that are post-sale, ad hoc, or not intimated to the buyer at the time of clearance. Refunds of duty based on the actual duty paid, when no ineligible deduction is claimed, are valid and cannot be termed as excess or erroneous.

CESTAT New Delhi Quashes Extended Limitation Demand: No Wilful Suppression in Excess ISD CENVAT Credit Case - The CESTAT, New Delhi, has categorically held that the extended period under Section 11A(4) of the Central Excise Act cannot be invoked in the absence of concrete and specific allegations or findings of wilful suppression or intent to evade duty. Departmental authorities must rigorously establish such ingredients before seeking to apply the extended limitation. As a result, the impugned demand and order were set aside.

Excise Duty Demand Set Aside: CESTAT Kolkata Rejects Demand Based Solely on Income Tax Survey Without Independent Excise Investigation - In light of the above, the CESTAT Kolkata has reaffirmed the necessity of thorough, independent investigation by the Excise Department before demanding duty based on undisclosed income detected in income tax proceedings. Revenue authorities are required to collect and present cogent evidence that directly links the income with excisable activities of the assessee. Without such investigation, demands are unsustainable and liable to be set aside.

Tax Exemption on Specified Income of "West Bengal Building and Other Construction Workers Welfare Board" U/s 10(46) of Income-tax Act, 1961

Central Government notifies the Core Settlement Guarantee Funds set up by the AMC Repo Clearing Limited, assessment year 2024-25

Tax Exemption on Specified Income of "Kota Development Authority" U/s 10(46A) of Income-tax Act, 1961

Tax Exemption on Specified Income of "Gorakhpur Industrial Development Authority" U/s 10(46A) of Income-tax Act, 1961

Tax Exemption on Specified Income of "Joint Electricity Regulatory Commission (for The State of Goa and Union Territories except Delhi)" U/s 10(46A) of Income-tax Act, 1961

08-01-2026 No. CORRIGENDA
Corrigendum - Health Security Se National Security Cess Act, 2025
Health Security se National Security Cess Rules, 2026.
Seeks to amend Notification 01/2025- Compensation Cess Tax (Rate), to prescribe GST rates on tobacco products.
Seeks to amend Notification 09/2025- Union Territory Tax (Rate), to prescribe GST rates on tobacco products
Seeks to amend Notification No. 49/2023-Central Tax, dated the 29th September, 2023
National Financial Reporting Authority appointment of Part-time members (Amendment) Rules, 2025
Introduction of Closing Auction Session (CAS) in the Equity Cash Segment and certain modifications in the Pre-Open Auction Session
Single Window Automatic and Generalised Access for Trusted Foreign Investors (SWAGAT-FI)” framework for FPIs and FVCIs
Single Window Automatic and Generalised Access for Trusted Foreign Investors (SWAGAT-FI) framework for FPIs and FVCIs
Appointment of Effective Date for Certain Provisions of the Code on Social Security, 2020
Amendments to Guidelines for Interest Subvention Support for Pre-and Post-Shipment Export Credit under EXPORT PROMOTION MISSION – NIRYAT PROTSAHAN.
Extending export benefits for exports made through Postal mode- amendment to Circular No. 25/2022-Customs dated 09.12.2022.
The Customs and Central Excise Duties Drawback (Amendment) Rules, 2026.
Seeks to Amend Notification No. 24/2023 – Customs (N. T) dated 1st April 2023.
Amendment in notification No. 25/2023–Customs (N.T.) dated 1st April, 2023.
Fixation of Tariff Value of Edible Oils, Brass Scrap, Areca Nut, Gold and Silver.
Postal Export (Electronic Declaration and Processing) Amendment Regulations, 2026.
Seeks to amend Notification No. 61/94-Customs (N.T.) dated the 21st November, 1994 - Customs airports - Appointment for specified purposes
Implementation of the Sea Cargo Manifest and Transshipment Regulations (SCMTR)
Fixation of Tariff Value of Edible Oils, Brass Scrap, Areca Nut, Gold and Silver

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