TaxCorp Total Solution

HC : Delhi High Court Quashes Reassessment Notices for AYs 2010-11 and 2011-12: Holds AO's Reliance on Valuation Officer's Report Insufficient for Reopening Assessment

11-09-2024 (2024) TaxCorp(LJ) 34495 (HC)

HC : Delhi High Court Quashes Reassessment Notices and Proceedings Under Sections 148A and 148, Upholding Taxpayer's Rights

11-09-2024 (2024) TaxCorp(LJ) 34496 (HC)

HC : Delhi High Court Rules Against Taxing Aircraft Leasing Receipts as Royalty Under Indian Tax Laws and India-Ireland DTAA

11-09-2024 (2024) TaxCorp(LJ) 34497 (ITAT)

ITAT : Mumbai ITAT Dismisses Revenue's Appeal, Holds Reassessment Proceedings Without Jurisdiction

09-09-2024 (2024) TaxCorp(LJ) 33150 (ITAT)

ITAT - Delhi ITAT Quashes Reassessment of Singaporean Entity Over Rs. 203 Cr NCD Redemption.

09-09-2024 (2024) TaxCorp(LJ) 33151 (ITAT)

ITAT - Delhi ITAT Nullifies Reassessment Against Mauritian Investment Company Over Foreign Remittance.

09-09-2024 (2024) TaxCorp(LJ) 33158 (HC)

FC - Polish Supreme Court Upholds Taxpayer's Appeal: Official Treaty Text Prevails Over English Version in Withholding Tax Dispute.

09-09-2024 (2024) TaxCorp(LJ) 34491 (SC)

SC : Supreme Court Allows Open Court Hearing for Review Petition in Ericsson Case

08-09-2024 (2024) TaxCorp(LJ) 34489 (ITAT)

ITAT : Mumbai ITAT Grants Deduction for Brokerage Expenses Under Section 57(iii) in Investment Recovery Case

06-09-2024 (2024) TaxCorp(LJ) 34472 (SC)

FC : Legal Determination on Tax Credits for Royalty Payments Between Parent and Subsidiary

06-09-2024 (2024) TaxCorp(LJ) 34473 (HC)

HC : Telangana High Court Overturns CIT(E) Order Requiring 20% Tax Demand Deposit, Citing Exemption Notifications

06-09-2024 (2024) TaxCorp(LJ) 34474 (HC)

HC : Gujarat High Court Rules in Favor of Assessee Permitting Condonation of Delay in Filing Form 10-IC for Reduced Tax Rate Under Section 115BAA

05-09-2024 (2024) TaxCorp(LJ) 34458 (ITAT)

ITAT : Kolkata ITAT Rules in Favor of Assessee: No Undisclosed Assets or Foreign Income Under Black Money Act, 2015

05-09-2024 (2024) TaxCorp(LJ) 34459 (HC)

HC : Bombay High Court Upholds Transfer of Assessee's Case to Delhi Under Section 127, Citing Interconnected Transactions and Tax Evasion

04-09-2024 (2024) TaxCorp(LJ) 33090 (ITAT)

ITAT - ITAT Rules Assessment Order Time-Barred Due to Delay in Filing DRP Objections Beyond Section 144C(4) Time-Limit.

04-09-2024 (2024) TaxCorp(LJ) 33099 (ITAT)

ITAT - ITAT Upholds Non-Resident Status for Indian Investor Despite Revenue's Challenge.

04-09-2024 (2024) TaxCorp(LJ) 33118 (ITAT)

ITAT - ITAT Upholds Sec. 11 Exemption for Deemed University, Dismisses Capitation Fee Additions Due to Lack of Corroboration.

04-09-2024 (2024) TaxCorp(LJ) 33121 (ITAT)

ITAT - SC's AUDA Judgment Clarifies Charitable Status for Trade Promotion Activities; ITAT Kolkata Upholds Exemption Under Section 11.

04-09-2024 (2024) TaxCorp(LJ) 33122 (ITAT)

ITAT - ITAT Chennai Overturns Addition Under Sec. 69B for Stock Valuation Discrepancy, Upholds Business Income Classification.

04-09-2024 (2024) TaxCorp(LJ) 34460 (HC)

HC : Delhi HC Declares Rectification Action under Section 154 Unlawful Post Settlement under VsV Act; Reiterates Provisions Ensuring Finality of Tax Disputes

03-09-2024 (2023) TaxCorp(LJ) 32363 (SC)

SC - Supreme Court Upholds Tax Sparing Credit for Dividend Income Exempt Under Oman's Domestic Law.

03-09-2024 (2023) TaxCorp(LJ) 32365 (HC)

FC - Dutch Court Affirms Netherlands as Tax Residence Due to Effective Management Despite Maltese Registration.

03-09-2024 (2023) TaxCorp(LJ) 32414 (ITAT)

ITAT - Delhi ITAT Upholds Concessional Tax Rate Under Section 115BAA Without Need for Annual Form 10-IC Filing.

03-09-2024 (2023) TaxCorp(LJ) 32416 (SC)

SC - Supreme Court Upholds Immunity for Kotak Mahindra Bank from Penalty and Prosecution, Emphasizes Limited Judicial Review of Settlement Commission Orders.

03-09-2024 (2023) TaxCorp(LJ) 32427 (HC)

HC - No Substantial Question of Law Found; Calcutta HC Upholds ITAT's Quashing of Revisionary Order Lacking DIN.

03-09-2024 (2023) TaxCorp(LJ) 32438 (HC)

FC - Kenyan Tribunal Rules: Control and Management in Kenya Determine Tax Residency for Mauritius-Based Entities.

03-09-2024 (2024) TaxCorp(LJ) 34461 (HC)

HC : Landmark Delhi HC Verdict: Mauritius Treaty Benefits Granted in Tiger Global - Flipkart Transaction Following Article 13(3A) of DTAA

03-09-2024 (2024) TaxCorp(LJ) 34465 (ITAT)

ITAT : Chennai ITAT Rules in Favor of Hyundai Motors on Non-Taxability of Investment Promotion Subsidy as Capital Receipt

03-09-2024 (2024) TaxCorp(LJ) 34466 (ITAT)

ITAT : Mumbai ITAT Upholds Section 11 Exemption for JD Tata Endowment Trust on Overseas Education Grants, Recognizing Indian Applications of Charitable Funds

11-09-2024 (2024) TaxCorp(IDT) 8798 (GST)

HC - Kerala High Court Permits Import of Life-Saving Drug 'Risdiplam' Without GST Payment.

11-09-2024 (2024) TaxCorp(IDT) 8799 (GST)

AAAR - Tamil Nadu AAAR Sets Aside AAR Ruling, Remands Case for Fresh Consideration Due to Non-Sharing of DGGI Investigation Letter.

11-09-2024 (2024) TaxCorp(IDT) 8801 (GST)

HC - Madras High Court Orders Re-examination of ITC Reversal Controversy Due to Contradictions in GST Returns.

11-09-2024 (2024) TaxCorp(IDT) 8802 (GST)

HC - Court Declines Jurisdiction in Writ Against Assessment Order under CGST Act.

11-09-2024 (2024) TaxCorp(IDT) 8811 (Service Tax)

CESTAT - SEZ Units Exempt from Service Tax on Foreign Services: CESTAT Ahmedabad Ruling.

11-09-2024 (2024) TaxCorp(IDT) 9517 (GST)

AAR : Mining Structures Transaction Deemed Service Supply, Not Sale: Odisha AAR Ruling

11-09-2024 (2024) TaxCorp(IDT) 9518 (GST)

HC : Delhi High Court Invalidates Retrospective GST Registration Cancellation, Emphasizing Natural Justice and Requirement for Reasoning

11-09-2024 (2024) TaxCorp(IDT) 9519 (GST)

HC : Gujarat HC Reviews Section 74 of CGST Act: Stresses Need for Concrete Evidence in Tax Proceedings

11-09-2024 (2024) TaxCorp(IDT) 9520 (GST)

HC : Delhi HC Affirms Provisional Attachment to Safeguard Government Revenue; Dismisses Assessee's Writ Petition on Procedural Grounds

11-09-2024 (2024) TaxCorp(IDT) 9521 (Customs)

SC : SC Upholds CESTAT's Classification of Import Components for Electric Fans as ‘Unassembled Fans’ under Heading 84.14

09-09-2024 (2024) TaxCorp(IDT) 8971 (GST)

HC - Chhattisgarh High Court Quashes Order for Premature Personal Hearing in Mahindra’s GST Case, Upholds Natural Justice Principles.

09-09-2024 (2024) TaxCorp(IDT) 8972 (GST)

HC - Delhi HC Orders Re-adjudication of ITC Reversal Demand Due to Lack of Consideration of Assessee’s Detailed Reply.

09-09-2024 (2024) TaxCorp(IDT) 8973 (GST)

HC - Allahabad High Court Quashes Penalty for Non-Filing of GST Return Due to Technical Glitches, Orders Real-Time Credit and Debit Mechanism.

09-09-2024 (2024) TaxCorp(IDT) 8975 (GST)

HC - Delhi High Court Quashes GST Registration Cancellation Order Due to Lack of Personal Hearing.

09-09-2024 (2024) TaxCorp(IDT) 8976 (GST)

HC - Madras High Court Orders Reconsideration of ITC Disallowance, Credit Notes, and RCM on Legal Services.

09-09-2024 (2024) TaxCorp(IDT) 8978 (Customs)

SC - Supreme Court Upholds CESTAT Ruling: SMPS Not Eligible for Duty Exemption as Parts of Integrated Fixed Wireless Telephones.

09-09-2024 (2024) TaxCorp(IDT) 9513 (Customs)

CESTAT : Legal Crux of CESTAT Mumbai Decision: Appeal Remanded Due to Misclassification Under Customs Tariff

08-09-2024 (2024) TaxCorp(IDT) 9502 (GST)

HC : Madras High Court Upholds Assessee's Claim for GST Refund, Modifies Interest Rate

06-09-2024 (2024) TaxCorp(IDT) 9483 (GST)

HC : Karnataka High Court Strikes Down GST Demand on Shareholding Activity and Remands Interest Taxation Issue for Reassessment

06-09-2024 (2024) TaxCorp(IDT) 9484 (GST)

HC : Madras High Court Calls for Reevaluation of Tax Demand Amid Discrepancies Between GST Returns; Assesses Required to Remit Partial Amount and Allowed Personal Hearing

06-09-2024 (2024) TaxCorp(IDT) 9485 (GST)

HC : Madras High Court Nullifies Tax Assessment Orders for 2018-19 and 2019-20 Due to Improper Reliance on GST Returns Post-Cancellation of Registration

06-09-2024 (2024) TaxCorp(IDT) 9486 (GST)

HC : Kerala HC Declines Writ Petition Over Assessment Order, Upholding Appellate Remedy Under SGST Act

06-09-2024 (2024) TaxCorp(IDT) 9487 (GST)

HC : Calcutta HC Invalidation of Bank Account Attachment Order for Compliance with Tax Notification

05-09-2024 (2024) TaxCorp(IDT) 9456 (GST)

AAR : West Bengal AAR Rules Bridge Federation of India Exempt from GST on Tournament Participation Fees

05-09-2024 (2024) TaxCorp(IDT) 9457 (GST)

AAR : Upfront Lease Premium Taxability Confirmed by West Bengal AAR for Shyama Prasad Mookerjee Port Transaction

05-09-2024 (2024) TaxCorp(IDT) 9471 (Service Tax)

CESTAT : CESTAT Bangalore Declares CENVAT Credit Recovery as Erroneous for Hewlett Packard India, while Dismisses Adjustment of Overpaid Service Tax

05-09-2024 (2024) TaxCorp(IDT) 9472 (Service Tax)

CESTAT : CESTAT Bangalore Sets Aside Service Tax Demand of Rs. 1.12 Lakhs on Freight Charges for Sugarcane Transportation

05-09-2024 (2024) TaxCorp(IDT) 9478 (Excise)

HC : Karnataka High Court Orders Revenue to Grant Interest on Belated Refund Under Central Excise Act

05-09-2024 (2024) TaxCorp(IDT) 9479 (Service Tax)

CESTAT : CESTAT Hyderabad Partly Allows Assessee’s Appeal, Sets Aside Demand Under Rule 2A(ii)(a) of Service Tax Rules, Remands Issue for Redetermination

05-09-2024 (2024) TaxCorp(IDT) 9481 (Excise)

CESTAT : CESTAT Bangalore Denies SSI Exemption to Manufacturers for Non-Compliance with Aggregate Value Conditions; Upholds Demand with Interest, Deletes Penalties on Partners/Directors

11-09-2024 (2024) TaxCorp (FEMA-INTL) 18627 (ITAT-SAFEMA)

Partial Relief Granted on Penalty Imposed for Foreign Exchange Violations by M/s Owens Brockway (I) Ltd. - In light of the ruling, it is evident that courts are willing to consider both the age of the dispute and the proportionality of penalties in cases of foreign exchange violations. Companies are encouraged to ensure robust compliance with foreign exchange regulations to avoid prolonged disputes and excessive penalties. This decision underscores the judiciary's willingness to amend penalties when discrepancies in contraventions are clearly established.

10-09-2024 (2024) TaxCorp (TP) 18626 (HC-P&H)

High Court Addresses Jurisdiction of TPO over AMP Expenses in Asserted International Transactions - Based on the findings of the High Court in this matter, it is clear that the jurisdictional authority of the TPO concerning AMP expenses and their classification as international transactions remains a nuanced and potentially contentious area of tax law. However, as the appellant was not financially affected by the ruling, parties engaged in similar disputes should closely examine the economic implications of contested AMP costs before pursuing legal recourse. Future litigants should consider whether there have been any actual financial burdens that stemmed from AMP expense classifications when contemplating appeals, ensuring that legal questions are not pursued solely on theoretical grounds.

10-09-2024 (2024) TaxCorp (TP) 18625 (HC-DELHI)

Discrepancies in Transfer Pricing Analysis: Tribunal Overturns TPO's Recalculation of Unrelated Party Transactions - The decision reinforces the principle that the Transfer Pricing Officer must operate strictly within the confines of the directions issued by the appellate authorities. For assessees, this serves as a crucial deterrent against potential overreach by tax authorities, ensuring adherence to established procedures and promoting fair treatment in the assessment process. As such, it is advisable for assessees to duly document their transfer pricing methodologies in accordance with remand directives and maintain comprehensive records that can substantiate their positions during assessments.

10-09-2024 (2024) TaxCorp (INTL) 18624 (HC-DELHI)

Income tax - Sections 144C - High Court Rules Final Assessment Order Invalid Following Violations of Assessing Procedures Under Section 144C - In light of the High Court's ruling, it is imperative for assessing officers to comply strictly with the procedural mandates established under Section 144C of the Income Tax Act. The establishment of a draft assessment order is not merely a formality but a critical component of the assessment process that ensures taxpayers are afforded their rightful opportunity for redress. Going forward, assessors must prioritize adherence to due process to avoid nullification of assessments, thereby safeguarding the interests of both the tax authority and the assessees involved.

10-09-2024 (2024) TaxCorp (INTL) 18623 (HC-DELHI)

High Court Upholds Treaty Benefits for Mauritius-Based Investment Firm in Flipkart Share Sale, Rejects Claims of Treaty Shopping - The High Court's ruling elucidates critical interpretative clarity surrounding treaty benefits within the ambit of investments from Mauritius into India. Future transactions by similar entities must be meticulously documented and structured to substantiate economic activity, ensuring alignment with the provisions of the DTAA. It is imperative for investors from favorable tax jurisdictions to maintain meticulous records to prove the legitimacy of their operations and uphold the economic substance doctrine to counter any potential scrutiny from tax authorities.

09-09-2024 (2024) TaxCorp (INTL) 18622 (HC-DELHI)

Income Tax - Section 56(2)(viib) - Holding Company-Wholly Owned Subsidiary Transactions: High Court Ruling on Section 56(2)(viib) of IT Act - The High Court's ruling reinforces the legal position that transactions between a holding company and its wholly owned subsidiary are not subject to the restrictions imposed by Section 56(2)(viib) of the Income Tax Act, 1961. Taxpayers engaged in such intra-group arrangements should ensure comprehensive documentation of these transactions, thereby facilitating adherence to the prescribed legal framework and safeguarding against misinterpretations that could arise from application of this section.

09-09-2024 (2024) TaxCorp (INTL) 18621 (HC-P&H)

High Court Upholds Working Capital Adjustments in Transfer Pricing Dispute; TPO's Deviations Overturned - The High Court's ruling in ITA-85-2023 (O&M) primarily asserts the necessity for the TPO to provide a solid, evidence-backed rationale for any deviations from previously accepted comparables, particularly in relation to the inclusion of working capital adjustments. Assessees should ensure thorough documentation and rationale in support of working capital adjustments during transfer pricing evaluations to mitigate the risk of disputes. This decision serves as a directive to strengthen compliance with established rules and legal precedents surrounding arm's length pricing, particularly the requirements set out in Rules 10B(2) and 10B(4) of the Income Tax Rules, 1962.

09-09-2024 (2024) TaxCorp (INTL) 18620 (HC-DELHI)

ITAT Upholds CIT(A) Adjustments for Custom Duties Affecting Operating Margins of Indian Importer - The decision reinforces the critical necessity of accounting for geographic and regulatory variances in transfer pricing evaluations, particularly where custom duties are concerned. As such, any entity engaged in cross-border transactions should ensure that their comparability analyses are robust, adequately accounting for local market conditions and regulatory impacts. Practitioners should rigorously apply the principles of Rule 10B(2) and relevant OECD guidelines to navigate potential disparities effectively, thereby averting similar disputes.

09-09-2024 (2024) TaxCorp (INTL) 18619 (ITAT-HYDERABAD)

Income Tax - Section 115JB - ITAT Declares Post-Closure Expenses Non-Operating Costs for Software Development Company - This decision by the ITAT reinforces a significant legal precedent regarding the classification of business expenses relative to operational activity status. Taxpayers must rigorously assess operational timelines and ensure that business activities substantiate claims for expenses. For practitioners and tax planners, it is pivotal to maintain clear diligence on the operational status of a business when contemplating any expenditures that may arise post-closure.

09-09-2024 (2024) TaxCorp (INTL) 18618 (ITAT-BANGALORE)

Income Tax Act - Section 10A - ITAT Upholds CIT(A) Decision on Deductions under Section 10A for Assessee in ITeS Segment Amid Revenue's Challenge - The ITAT has reinforced a critical interpretation of Section 10A concerning enhanced deductions for the ITeS sector, affirming the CIT(A)'s ruling and dismissing the Revenue’s appeal. This decision underscores the importance of tax authority compliance with previous judicial determinations, highlighting the need for consistency in tax treatment to foster a more predictable tax environment.

Taxpayers engaged in ITeS should ensure meticulous documentation of their activities and claims under Section 10A while being cognizant of past decisions particularly applicable to their cases. Those who have previously succeeded in similar judicial challenges should leverage this ruling to bolster their positions in similar assessments.

09-09-2024 (2024) TaxCorp (FEMA-INTL) 18617 (SC)

RBI's Power to Compounding Under FEMA Upheld by High Court - In light of the High Court’s ruling, financial entities and individuals facing inquiries under FEMA should ensure the proper filing of compounding applications, with a strong emphasis on precision and adherence to legal formalities. The judgment serves as a reminder that the RBI possesses the authority to manage compounding applications autonomously, and applicants should prepare for potential inquiries while remaining compliant with existing statutory directives. Thus, parties should consult legal expertise to navigate the complexities of accumulated contraventions under FEMA, ensuring thorough preparation for decisions made by the RBI.

07-09-2024 (2024) TaxCorp (FEMA-INTL) 18616 (HC-SAFEMA)

Court Dismisses Appeals Citing Lack of Natural Justice in Tax Adjudication - The decision reaffirms the critical balance between procedural safeguards and substantive justice in tax adjudication. It is imperative for parties involved in such proceedings to actively engage in the investigation process, ensuring their claims are well substantiated and supported by evidence rather than relying on late retractions or claims of duress that lack corroboration. Engaging legal counsel to navigate the procedural landscape, present coherent evidence, and advocate vigorously during both the investigative and adjudicative phases may significantly and positively affect outcomes in similar future scenarios.

07-09-2024 (2024) TaxCorp (FEMA-INTL) 18615 (HC-SAFEMA)

Significant Violation of Foreign Exchange Regulations: High-value Re-export Scheme Unveiled in Case Against Dr. N.M. Parthasarthy and Associates - The ruling clearly delineates the serious implications of manipulating foreign trade and currency regulations. Stakeholders must recognize the importance of compliance with the Foreign Exchange Regulations Act, 1973, ensuring that export and re-export valuations are genuinely reflective of market values to avoid substantial legal repercussions. Entities engaging in international commerce should implement robust internal controls and thorough due diligence to ascertain the authenticity of transactions and maintain adherence to regulatory standards.

07-09-2024 (2024) TaxCorp (INTL) 18614 (ITAT-CHENNAI)

Income Tax - Section 92CA - ITAT Upholds Application of Mutual Agreement Procedure Methodology to Non-Korean Transactions, Orders Assessment Re-evaluation - The Tribunal's decision highlights the importance of a consistent approach in transfer pricing evaluations when similar transactional activities occur with different associate entities. The pathway forward indicates that the TPO must diligently analyze the stipulated transactions to ascertain their comparability, potentially leading to adjustments that reflect equity in taxation across all dealings. It underscores the necessity for companies engaged in international trade to apply for MAP when facing significant transfer pricing discrepancies, ensuring better alignment with cross-border agreements.

07-09-2024 (2024) TaxCorp (INTL) 18613 (ITAT-DELHI)

Income Tax - Section 13(4) - Non-Resident Corporate Assessee Secures Tax Benefits Under India-Mauritius DTAA Despite AO’s Opposition - This decision reinforces the importance of substantive evidence in tax assessments concerning international tax treaties. Assessees claiming tax benefits under DTAA must ensure that they maintain proper documentation confirming their resident status, such as TRCs and necessary licenses, especially when the tax authority queries the legitimacy of such claims. It is critical for the assessees to structure their operations in such a way that clearly exhibits their economic activity in the country of residence.

07-09-2024 (2024) TaxCorp (INTL) 18612 (ITAT-AHMEDABAD)

Income Tax - Sections 90, 139(1), 234B, 234C - Tax Tribunal Grants Foreign Tax Credit Despite Late Submission of Form 67 - In light of the judgment delivered by the Tribunal, it is essential for assessees engaged in foreign employment to file their returns and associated forms well within the prescribed timelines to avoid complications. However, this case establishes that minor procedural delays, such as the late filing of Form 67, should not inhibit rightful claims for foreign tax credits when substantial compliance with tax obligations in foreign jurisdictions is demonstrated. Assessees are encouraged to be vigilant about documentation but can take comfort in the fact that undue denial of tax benefits based on minor technicalities may not hold in future assessments.

07-09-2024 (2024) TaxCorp (INTL) 18611 (ITAT-MUMBAI)

Income Tax - Sections 54F, 144C, 147 - Tribunal Upholds Exemption Under Section 54F for Non-Resident Indian’s Foreign Property Investment - Given the Tribunal's ruling, it is imperative for non-resident assessees to maintain clarity on the implications of capital gains and the subsequent reinvestment in properties outside India. This decision sets a robust benchmark affirming that amendments to tax laws shall not operate retrospectively unless explicitly stated, thereby safeguarding the exemptions originally applicable before the amendment.

07-09-2024 (2024) TaxCorp (TP) 18610 (ITAT-MUMBAI)

Income Tax - Sections 92BA, 92CA, 92D, 144C, 271G, 273B - CIT (A) Overturns Rs. 4.32 Crore Penalty on Assessee for Non-Maintenance of Documents after Omission of Section 92BA - The ruling from the Tribunal serves as a critical reminder for tax professionals and assessors that the obligation to maintain documentation for specified domestic transactions hinges upon the relevant statutory provisions in force. Given that Section 92BA was omitted, there exists no legal basis for penalties to be levied against an assessee for failing to produce such documentation. Taxpayers are encouraged to stay vigilant on legislative changes to ensure compliance with documentation requirements, and to recognize the potential for a lack of penalties in similar scenarios.

07-09-2024 (2024) TaxCorp (TP) 18609 (ITAT-DELHI)

Inadequate Documentation for Transfer Pricing Results in Unjust Penalty: Tribunal Ruling Favors Assessee - In light of the Tribunal’s ruling, it is imperative for assessees involved in international transactions to prioritize timely compliance while documenting their justifications effectively, particularly in cases of transitions in legal representation. Assessees should proactively communicate their circumstances to the AO promptly, thereby mitigating risks pertaining to penalties for delays.

07-09-2024 (2024) TaxCorp (TP) 18608 (ITAT-DELHI)

Payments and Receivables: ITAT Overturns TPO Adjustment on Interest for Outstanding Receivables of Captive Service Provider - The ITAT's decision significantly informs the legal landscape concerning transfer pricing adjustments on outstanding receivables for multinational enterprises providing services across borders. It provides a clear precedent that TPOs must engage in comprehensive evaluations of outstanding transactions, taking into account payments made in advance. Importantly, the determination of whether an entity possesses receivables or payables plays a crucial role in interest adjustments.

13-08-2024 (2024) TaxCorp(CL) 30268 (DELHI)

Court Denies Interim Stay on LOC; Travel Request to Dubai and New York Rejected Due to Lack of Justification - The court's ruling indicates a stringent approach to requests for permission to travel when facing legal restrictions such as an LOC. Moving forward, petitioners in similar situations must prioritize establishing clear, logical justifications for their travel needs, particularly when immediate family members may have alternative arrangements to meet.

13-08-2024 (2024) TaxCorp(CL) 30267 (DELHI)

Section 212 of the Companies Act, 2013 - Supreme Court Denies Interim Relief to Director Implicated in Serious Fraud Investigation - On deliberation, the Court dismissed the petitioner’s application on the grounds of insufficient justification and non-compliance with the investigatory directives set forth by the SFIO. The ruling serves as a poignant reminder for corporate directors under scrutiny: compliance with investigatory requests is imperative, and claims of personal urgency must be substantiated with valid evidence rather than mere representations.

30-08-2024 (2024) TaxCorp(CL) 30266 (DELHI)

Court Rules on Extension for 40th AGM: Emphasis on Lack of Special Reasons in Decision-Making - The court's decision in this case underscores the necessity for compliance with statutory requirements when granting extensions for AGMs under Section 96 of the Companies Act. It also outlines that shareholders do not possess an automatic right to a hearing in such instances. Moving forward, companies must ensure that any requests for extensions are accompanied by a clear demonstration of ‘special reasons’ to avoid legal challenges. Thus, companies should maintain comprehensive records and provide adequate justification in their applications to fortify against potential disputes.

22-02-2024 (2024) TaxCorp(CL) 30265 (NCLT)

Company Name Restoration: Era Financial Services (India) Limited Wins Appeal Against ROC - The decision highlights the importance of distinguishing between the grounds for striking off a company and the appropriate provisions for appeal or application for restoration.
It emphasizes the need for companies to comply with statutory requirements, particularly those related to incorporation and subscription payments.
The restoration of the company's name under Section 252(1) indicates that the appellate authority may consider mitigating circumstances and allow for the revival of a company if the grounds for striking off are addressed.

09-12-2022 (2024) TaxCorp(CL) 30264 (SC)

Supreme Court Authorizes Submission of Fresh Resolution Plan by Appellant After BSE Lifts Market Ban - The Supreme Court's decision not only reinstated the appellant’s opportunity within the CIRP but also reinforced the principles of compliance essential for eligibility under the IBC. This ruling signifies the imperative for assessors to maintain rigorous adherence to SEBI regulations and to be proactive in resolving prior restrictions that may impede eligibility.

30-08-2024 (2024) TaxCorp(CL) 30263 (NCLT)

Justification for Appellant’s Removal in C.P. 3638 of 2018 upheld by Appellate Tribunal - In light of the current decision, it becomes actionable for individuals subjected to prolonged inquiries without formal charges to seek prompt resolution. This highlights the necessity of ensuring timely closure of investigations and protecting individual rights against unwarranted constraints. Stakeholders in similar situations should advocate for expedited processes, fearing unjust prejudice caused by extensive delays.

14-09-2022 (2024) TaxCorp(CL) 30262 (NCLT)

Ineligibility of Corporate Debtor Affirmed by NCLT Amidst SEBI Sanctions During Insolvency Resolution Process - The NCLT's decision underscores the importance of compliance with regulatory mandates for corporates undergoing insolvency proceedings. It establishes a precedent indicating that failure to adhere to SEBI regulations results in disqualification under the Insolvency and Bankruptcy Code, thus rendering any resolution plan submitted during such a period as void.

05-07-2024 (2024) TaxCorp(CL) 30261 (DELHI)

Classification of Enterprises Under MSMED Act: Jurisdiction Affirmed for Arbitration on Payment Dispute - The judgment reinforces the premise that any enterprise classified under the MSMED Act is entitled to utilize the mechanisms provided therein for conflict resolution over payment disputes. Enterprises must ensure compliance with registration processes under the MSMED Act to secure their rights effectively while highlighting that the timing of registration can influence the ability to claim dues. Thus, future claimants are advised to diligently fulfil registration requirements, as the timing can significantly impact jurisdiction and entitlement status.

22-08-2024 (2024) TaxCorp(CL) 30260 (BOMBAY)

COURT DIRECTS SEBI AND STOCK EXCHANGE TO PAY ₹80 LAKHS TO FATHER-SON DUO FOR ILLEGAL FREEZING OF DEMAT ACCOUNTS - The Bombay High Court has set a significant precedent underlining the necessity for due process and adherence to legal protocols in regulating the actions by SEBI and recognized Stock Exchanges regarding promoters. The Court has ruled that freezing of demat accounts without a legal basis is unwarranted and illegal. All regulatory bodies must demonstrate proper investigative procedures and maintain clarity on individuals' roles before imposing sanctions.

22-08-2024 (2024) TaxCorp(CL) 30259 (SEBI)

SEBI's Strict Action Against Anil Ambani: Ban from Securities Market Over Fraudulent Loan Scheme - The SEBI’s decision to impose these bans against Anil Ambani and associated parties serves as a compelling reminder of the stringent regulations governing the securities market. Accordingly, financial institutions and associated parties must prioritize transparency and adherence to corporate governance principles to avoid severe regulatory repercussions. The actionable takeaway for stakeholders is to reassess their compliance mechanisms and ensure robust oversight of company practices to mitigate risks associated with fraudulent activities.

22-08-2024 (2024) TaxCorp(CL) 30258 (SC)

Legal Decision Rekindles Debate on Criminal Liability Amid Regulatory Settlements - The Supreme Court’s decision to remand the matter back to the High Court highlights the complex interplay between regulatory resolutions and criminal proceedings. The legal principles established necessitate a careful evaluation of each party's culpability independent of regulatory conclusions and emphasize that regulatory consent cannot absolve one from criminal liability. The emphasis on expeditious resolution signifies important procedural implications for ongoing and future litigation where criminal allegations overlap with regulatory findings.

30-07-2024 (2024) TaxCorp(CL) 30257 (NCLT)

Share Capital Reduction Approved for Petitioner Company under Section 66 of the Companies Act, 2013 - The decision by the Tribunal to approve the reduction of the share capital is significant for the Petitioner Company, as it allows for a strategic and legally-compliant management of its equity structure. The accountability and adherence to statutory provisions serve to enhance corporate governance. It is crucial for the company to execute the filing protocols promptly and publish the order as required to avoid repercussions from non-compliance.

13-08-2024 (2024) TaxCorp(CL) 30256 (DELHI)

Legal Battle Over Oppression and Mismanagement: NCLT’s Authority to Examine Forgery Claims Reaffirmed - The ruling reinforces the stance that the NCLT is equipped with substantial authority to tackle intricate issues of corporate governance, specifically those involving allegations of forgery and misconduct within a company’s management. It is critical for stakeholders in similar disputes to understand the significance of having their matters heard by the NCLT rather than dismissively handled elsewhere. This outcome highlights the need for meticulous documentation and the importance of forensic audits in corporate disputes, ensuring comprehensive redress for aggrieved parties.

23-08-2024 (2024) TaxCorp(CL) 30255 (NCLT)

Legal Dispute on Share Transfer Rectification Dismissed: NCLT Ruling Upholds Procedural Integrity - In light of the NCLT ruling, it is imperative for both companies and their shareholders to understand the significance of sustaining a challenge throughout the appellate process. Shareholders must remain vigilant regarding the standing of the company in disputes concerning share transfers and rectifications. Appellant No. 2's individual status will not suffice to claim a right to appeal without the company’s active participation. Therefore, to avoid similar pitfalls, stakeholders are advised to ensure their interests align within avenues that permit effective participation in legal proceedings.

22-08-2024 (2024) TaxCorp(CL) 30254 (NCLT)

Legal Validity Under Scrutiny: NCLT Confirms Transmission of Shares via SARFAESI Act Amidst Disputes Over Property Rights - The decision of the NCLT affirms the interpretable scope of the SARFAESI Act regarding the transmission of rights and shares underscored by legal precedents. Stakeholders should take heed that attempting to hinder enforced rights of shareholders through procedural delays and demands for unwarranted document scrutiny may not find favor in judicial scrutiny. An actionable takeaway for assessors would be to ensure clarity in the ownership and title of properties prior to engaging in enforcement actions, bolstered by appropriate legal backing to strengthen one’s position.

19-08-2024 (2024) TaxCorp(CL) 30253 (NFRA)

Professional Auditors Penalized for Misconduct in Fund Diversion Case - Given the breaches established in the engagement of M/S BSR & Associates LLP and the clear violations of auditing standards, it is imperative for auditors and audit firms to ensure rigorous compliance with all applicable auditing standards and guidelines. Auditing practices must be underpinned by professional skepticism and diligence, where any identified risks must be communicated effectively and addressed promptly. This case serves as a cautionary tale that infringements of professional duties carry significant legal ramifications.

07-08-2024 (2024) TaxCorp(CL) 30252 (FERAB)

Weight Disqualification of Indian Wrestler Vinesh Phogat at 2024 Olympics Confirmed by Sole Arbitrator - The Sole Arbitrator, Dr. Annabelle Bennett, ruled unequivocally against Vinesh Phogat, asserting that the disqualification was justly enforced as per the regulations established by the UWW. The decision demonstrates the expectation for complete adherence to predefined standards in competitive sports, with no exceptions being afforded even for slight infractions. Phogat’s application for relief was dismissed, confirming the principle that personal circumstances, including biological factors, cannot alter the strict eligibility requirements set forth by the governing authorities.

19-08-2024 (2024) TaxCorp(CL) 30251 (NFRA)

Auditors Held Liable for Negligence in Examining Funds Diverted to Promoter-Controlled Entity: National Financial Reporting Authority Decision - The NFRA's ruling serves as a critical reminder of auditors' responsibilities in examining financial interconnections within holding companies and their subsidiaries. This decision underscores the necessity for auditors to exercise due diligence and maintain rigorous standards of professional skepticism when evaluating transactions involving related parties, particularly in complex corporate structures. Auditors should be proactive in identifying red flags, ensuring that their auditing practices meet statutory obligations and uphold the integrity of financial reporting.

20-08-2024 (2024) TaxCorp(CL) 30250 (NCLT)

Revival Scheme Approved: No NOC Required from Stock Exchanges for Liquidation Cases - This ruling establishes a critical precedent by affirming that no NOC from stock exchanges is necessary for schemes aimed at reviving a company under liquidation. Practitioners should be aware of this decision’s implications, as it enhances the feasibility of implementing revival strategies swiftly without procedural impediments from stock exchanges.

14-08-2024 (2024) TaxCorp(CL) 30249 (NCLT)

Family Feud Leads to Overhaul of Company Management: NCLAT Upholds Tribunal's Decision in Venus Petrochemicals Case - The NCLAT's decision upholds the lower Tribunal's order, which included three key directives: removing the casting vote provision, appointing an equal number of directors from both family groups, and appointing an independent director as Chairman. The Appellate Tribunal found these measures to be within the jurisdiction of the lower Tribunal and necessary to address the oppressive conduct in the company.

This judgment sets a significant precedent in defining oppression and mismanagement in the context of family-controlled businesses. It underscores the importance of maintaining equity and good faith in corporate governance, especially in companies with equally divided shareholding.

13-08-2024 (2024) TaxCorp(CL) 30248 (BOMBAY)

MSME Petitioner Challenging Classification Denial Receives Favorable Ruling for VSV Scheme Claim Amid COVID-19 Concerns - The court decisively ruled in favor of the petitioner, instructing the relevant authorities to reconsider the claim for reimbursement under the VSV Scheme. The judgment underscores the recognition of the challenges faced by enterprises categorized under MSME status, particularly during unprecedented times like the COVID-19 pandemic.

15-05-2024 (2024) TaxCorp(CL) 30247 (DELHI)

Sections 448, 447 of the Companies Act, 2013 - High Court Quashes Orders Passed by Special Judge in IPO Proceeds Diversion Case, Citing Lack of Jurisdiction - The High Court ruled in favor of setting aside both impugned orders passed by Special Judge along with all consequential proceedings arising from them due to lack of jurisdiction on part of Special Judge.

02-08-2024 (2024) TaxCorp(CL) 30246 (SC)

Supreme Court Dismisses Petitions Seeking Investigation into Electoral Bond Scheme, Upholds Constitutional Validity of Statutory Provisions - The Supreme Court declined to exercise its jurisdiction under Article 32 for ordering an SIT or other investigative measures related to electoral bonds due to available legal remedies for addressing individual grievances and statutory functions governing such matters.

19-07-2024 (2024) TaxCorp(CL) 30245 (NCLT)

Appellate Tribunal Overturns NCLT Decision: Allows Minor Amendments to Amalgamation Scheme Without Requiring Fresh First Motion - The Appellate Tribunal's decision underscores that courts should balance procedural rigor with practical realities ensuring that minor changes do not unduly complicate or delay corporate restructuring processes like amalgamations. By allowing such adjustments without necessitating fresh first motions where deemed appropriate can save time and resources for all parties involved while maintaining fairness and transparency required under corporate laws.

24-07-2024 (2024) TaxCorp(CL) 30244 (DELHI)

High Court Orders RBI to File Status Report on NBFC's Affairs Amid Allegations of Mismanagement - The High Court's decision emphasizes stringent oversight over financial institutions like NBFCs while holding regulatory bodies accountable for ensuring compliance with legal requirements. It sets a precedent where courts may intervene decisively when faced with allegations of corporate mismanagement or regulatory evasion.

24-07-2024 (2024) TaxCorp(CL) 30243 (DELHI)

RERA Not Applicable to Projects Completed Before Its Enactment: High Court Upholds Tribunal's Decision - The High Court's decision aligns with established legal principles regarding statutory interpretation and legislative intent. It clarifies that only ongoing projects without completion certificates as of May 1st, 2017 fall under RERA's ambit. This ruling provides clarity for both developers and homebuyers regarding their rights and obligations under existing laws.

07-08-2024 (2024) TaxCorp(CL) 30242 (NCLT)

Appellant Company Restored to Register of Companies Under Section 248(1)(c) of Companies Act: NCLT Empowers Restoration for Commercial Prudence and Employment Generation - The decision highlights NCLT’s authority under Section 252 to restore companies struck off under Section 248(1)(c), emphasizing commercial prudence, employment generation, and state revenue benefits as key factors influencing such decisions. This ruling underscores judicial discretion in balancing legal compliance with economic realities while ensuring fairness in corporate governance practices.

01-08-2024 (2024) TaxCorp(CL) 30241 (BOMBAY)

High Court Quashes Central Government's Rejection of Amalgamation Scheme Under Companies Act, 2013 - The High Court's decision underscores adherence to procedural fairness and transparency in corporate governance matters under Indian law—particularly emphasizing that regulatory bodies cannot bypass statutory mandates when dealing with complex transactions like mergers and amalgamations without proper adjudication through appropriate forums such as NCLT.

24-07-2024 (2024) TaxCorp(CL) 30240 (DELHI)

RBI Directed to Probe NBFC's Financial Irregularities - The court's direction to the RBI to enquire into the affairs of the NBFC and inspect all its records is a significant step towards ensuring that the company's affairs are conducted in a transparent and accountable manner. The decision underscores the importance of regulatory oversight in preventing financial irregularities and protecting the interests of stakeholders.

12-06-2024 (2024) TaxCorp(CL) 30239 (NCLT)

Tribunal Restrains Rights Issue Amidst Allegations of Oppression and Mismanagement - In view of the above, it is clear that the Tribunal has taken a stern view of the allegations of oppression and mismanagement committed by the respondents. The interim relief granted by the Tribunal is aimed at protecting the interests of the petitioners and ensuring that the respondents do not take any further steps that may prejudice the petitioners' rights.

02-09-2024 (2024) TaxCorp(IDT) 134205 (CESTAT-CHENNAI)

Tribunal Ruling: Freight Charges Not Integral to Assessable Value for Excise Duty - In light of the Tribunal's consistent rulings, businesses engaged in excise taxable transactions should meticulously evaluate the context of freight charges associated with their sales framework. It is imperative to distinguish between costs incurred directly by customers versus those that form part of the seller's pricing structure. Assessees may leverage this legal precedent to challenge similar demands in future scenarios, ensuring their compliance with excise regulations without undue financial burden.

03-07-2024 (2024) TaxCorp(IDT) 134204 (CESTAT-HYDERABAD)

Legal Crux of Refund Claim Denied Due to Time Limitation: Cenvat Credit on Insurance Premium - The ruling reaffirms the stringent nature of the time constraints governing refund applications under Section 11B of the CEA. It is imperative for assessees to diligently monitor the timelines post-judgment by appellate authorities, particularly in cases involving refunds associated with prior payments made under protest. The decision obliges taxpayers to act expediently once favorable appellate judgments are handed down, integrating applicable credits into their accounting systems promptly.

29-08-2024 (2024) TaxCorp(IDT) 134203 (CESTAT-KOLKATA)

CENVAT Credit Dispute Resolved; No Evidence of Wrongful Utilization Found - The legal ruling unequivocally defends the validity of the CENVAT credit claims raised by the Appellant-Assessee. Future claims should take note of the importance of maintaining proper documentation and clarity regarding the invoicing process, ensuring that records reflect compliance with applicable rules. Tax management strategies must incorporate diligent record-keeping to counter unwarranted assumptions by governing authorities.

04-09-2024 (2024) TaxCorp(IDT) 134202 (CESTAT-MUMBAI)

Cenvat Credit Ruling: Expanding Scope for Input Services in Transportation and Insurance - Given the rulings affirming the controller's eligibility for cenvat credit concerning outbound transit insurance and employee transportation services, strategies for service tax management should pivot towards identifying and documenting input services diligently. The non-eligibility to claim credits on hospitality and management services, however, reiterates the importance of scrutinizing service definitions and applicable case laws in the relevant jurisdiction.

04-09-2024 (2024) TaxCorp(IDT) 134201 (CESTAT-KOLKATA)

Case Assessment on Clandestine Removal and Stock Shortage Lacks Corroborative Evidence and Is Time-Barred - The appellate authority has set aside the order due to the lack of corroborative evidence for the allegations of clandestine removal and stock shortages, as well as the inadequacy of the method applied for stock verification. For actionability, it is crucial for the Revenue to provide substantiated evidence, including but not limited to eyewitness accounts, comprehensive documentation, and timely investigations, when making claims against entities for clandestine operations.

04-09-2024 (2024) TaxCorp(IDT) 134200 (CESTAT-KOLKATA)

Legal Decision on Cenvat Credit Denial Highlights Serious Investigation Flaws, Resulting in Reversal of Demands - The appellate authority’s decision to reverse the demand underscores the importance of robust investigatory processes reliant on demonstrable evidence rather than presumptive reasoning. Authorities must ensure that allegations against assessors are thoroughly substantiated, with opportunities for cross-examination offered. Moving forward, taxpayers should actively document transaction records and seek mandatory cross-examination rights where statements are collected to strengthen their defense against potential future claims.

22-08-2024 (2024) TaxCorp(IDT) 134199 (CESTAT-KOLKATA)

Legal Crux Established: Classification and Entitlement Under N/N. 12/2012 CE - In conclusion, this case underscores the importance of precise classification in the determination of tax liabilities. The appellate body’s ruling affirmatively establishes that when goods are proven to be sealed, they are rightly classified under the applicable notification, entitling the seller to nil duty. This deliberation not only clarifies this specific case but serves as a precedent for similar categorizations in the future.

04-03-2024 (2024) TaxCorp(IDT) 134198 (CESTAT-KOLKATA)

Limitation on Refunds of Duty Unchallenged Sanction Blinds Revenue Demands - The current judicial decision establishes a significant precedent, reinforcing the stability surrounding sanctioned refunds and the limitations imposed thereon on the Revenue. Given that the appellants demonstrated compliance under the prescribed guidelines and that established procedures were adhered to by the Department, future demands by the Revenue without proper challenge may be limited. Therefore, appellants are advised to actively monitor any unchallenged refund notifications for finality status and ensure compliance remains aligned with existing Circulars and Notifications.

03-09-2024 (2024) TaxCorp(IDT) 134197 (CESTAT-KOLKATA)

Appellants Not Found to be Manufacturers Due to Lack of Evidence and Job Worker Classification - The legal determination in this case establishes that mere assertions of manufacturing without evidential support do not satisfy the requirements under the Central Excise Act. Appellants must ensure that they substantiate their claims with credible evidence of manufacturing activities conducted in their own facilities. Legal entities should proactively gather and maintain comprehensive records of manufacturing processes, ideally demonstrating that they directly engage in such activities to avert the possibility of being classified as manufacturers without adequate proof.

02-09-2024 (2024) TaxCorp(IDT) 134196 (CESTAT-ALLAHABAD)

Reassessment of CENVAT Credit on Capital Goods: Judicial Clarifications on Removal Guidelines - The current ruling reinforces the critical interpretation of the definitions surrounding the sale of capital goods and their usage prior to sale. It is imperative for manufacturers to diligently track the usage of capital goods and ensure compliance with CENVAT credit regulations. This decision necessitates that manufacturers be proactive in their accounting practices, preserving evidence of usage duration and sales transactions to defend against potential claim reversals and unwarranted tax demands.

02-09-2024 (2024) TaxCorp(IDT) 134195 (CESTAT-ALLAHABAD)

Claim for Interest on Refund of Pre-Deposit Confirmed under Section 35FF of the Central Excise Act, 1944 - The ruling affirms that interest on the refund of pre-deposits made under Section 35F is a statutory requirement under Section 35FF of the Central Excise Act, 1944, independent of any claim by the assessee. Moving forward, it is crucial for appellants to ensure that any Order-in-Original issued to them explicitly addresses interest on such refunds to avoid the necessitation of appeals for rectification.

02-09-2024 (2024) TaxCorp(IDT) 134194 (CESTAT-NEW DELHI)

Clandestine Removal of Goods: Mandatory Penalty Upheld in CGST Act Violation - In light of the above findings, it is crucial for businesses engaged in manufacturing or dealing with excisable goods to ensure strict compliance with the Central Excise Rules, 2002. The current decision exemplifies the tangible risks associated with non-compliance, particularly regarding record-keeping and duty determination. Companies should implement robust internal controls and review mechanisms to prevent revenue loss and potential penalties.

30-08-2024 (2024) TaxCorp(IDT) 134193 (CESTAT-DELHI)

Manpower Supply and Housekeeping Services Scrutinized in Unregistered Job Working Units - In light of the ruling, manufacturers can confidently claim CENVAT credit for input services, such as manpower supply and housekeeping services, utilized in unregistered job working units, provided the services were received prior to the deadline for credit limitation implementation. The decision underscores the need for stringent documentation of service invoices pre-dating the restrictive amendments to readily counter any unfounded CENVAT credit denials by tax authorities. Moreover, as the interpretation of "input services" continues to evolve, tax compliance teams should maintain current awareness of legal standards.

29-08-2024 (2024) TaxCorp(IDT) 134192 (CESTAT-AHMEDABAD)

CENVAT Credit on Outward Transportation Charges Upheld: Remand Ordered for Re-Evaluation - In light of the current legal precedents, it is pertinent for assessees engaged in the sale of goods on an 'FOR' basis to critically assess their legal standing regarding CENVAT credits on outward transportation costs. The remand by the appellate authority calls for a thorough review of earlier orders, applying the latest judicial guidance as a benchmark for future claims. Assessees are encouraged to align their accounting practices with the parameters set forth in Board circulars and recent tribunal findings to ensure compliance and optimize their eligible CENVAT credits.

27-08-2024 (2024) TaxCorp(IDT) 134191 (CESTAT-CHENNAI)

Wrongful Availment of Common Input Credit: A Time Limitation Perspective - In light of the current case interpretation, it is crucial for assessees engaged in similar overlapping activities of trading and manufacturing to maintain vigilant documentation and evidence exhaustively substantiating their claims of input service usage. Given the nuances surrounding the classification of trading as an exempt service, taxpayers should ensure proactive credit reversals as per regulatory updates, particularly after April 1, 2011, to safeguard themselves against potential disputes.

02-09-2024 (2024) TaxCorp(IDT) 134190 (HC-BOMBAY)

Allegations of Material Suppression in Customs Appeal Lead to Dismissal and Cost Imposition - In light of the decision rendered by the court, it is imperative for assessees to uphold the integrity of their submissions to authorities. The dismissal of the petition demonstrates the severe consequences of failing to disclose material facts and responding to procedural requirements. Assessees must ensure that all communications are thoroughly documented and presented clearly to avoid detrimental outcomes such as dismissal or cost imposition.

21-08-2024 (2024) TaxCorp(IDT) 134189 (HC-BOMBAY)

Appraiser Convicted for Criminal Conspiracy Involving Fraudulent Refund Claims - In light of the ruling, it is imperative that the appellant seeks to challenge his conviction under Section 120-B IPC and the Prevention of Corruption Act based on the evidence presented, or rather the lack thereof, regarding his active involvement in criminal activities. Given the inconsistencies noted in co-accused acquittals and the reliance on indirect corroboratory evidence, the petitioner should leverage these points to file an appeal. Proactive steps should be taken to gather additional documentary evidence or witness testimony that can support the claim of insufficient involvement in the alleged criminal actions to effectively contest his conviction.

04-09-2024 (2024) TaxCorp(IDT) 134188 (CESTAT-AHMEDABAD)

Assessable Value Redetermination for Imported 1,2-Benzisothiazolin-3-ONE (BIT PASTE 85%) Under Section 17(5) of Customs Act, 1962 - The decision reinforces the importance of a robust valuation method for imported goods as stipulated under the Customs Act, 1962, particularly under Section 17(5). The appellant must ensure that future declarations accurately reflect market prices while supporting their assessments with contemporaneous data, to mitigate the risk of rejection by customs authorities. It is prudent for importers to maintain continuous monitoring of market conditions and significant events that could impact pricing to avoid discrepancies in declared values.

03-09-2024 (2024) TaxCorp(IDT) 134187 (CESTAT-KOLKATA)

Court Reverses Confiscation and Penalties on Imported Goods Labeled as Second-Hand Despite Disputed Valuation - The ruling provided by the court reinforces the principle that evidentiary standards must be met before confiscation and penalties can be levied in customs matters. Importers must ensure that all documentation is thoroughly reviewed and that any assessments from technical experts, such as Chartered Engineers, align with the factual status of the goods. In light of this decision, businesses should retain detailed records of product descriptions, source verification, and maintain thorough correspondence with suppliers to mitigate risks associated with import classifications and valuations.

30-07-2024 (2024) TaxCorp(IDT) 134186 (CESTAT-NEW DELHI)

Court Upholds Classification of EPS-ECU and Sub-Assemblies Under CTH 8708, Rejecting Electrical Instrument Claims - In light of the court’s decision, it is essential for businesses dealing with automotive components to implement rigorous classification review processes for their products. Classifying the EPS-ECU and its parts accurately can help avoid misclassification errors which might not only lead to punitive damages from customs authorities but may also result in missed opportunities for tariff benefits. Companies should consider consulting with legal experts on customs regulations to assess the classification of similar electronic components in their inventory.

03-09-2024 (2024) TaxCorp(IDT) 134185 (CESTAT-NEW DELHI)

Rejection of Amendment Under Section 149 of the Customs Act, 1962 – Examination of Appellant's Claims for Amendment of Bills of Entry - In light of the current decision, it is actionable for the appellant to meticulously gather and present all evidentiary material that supports their claim for the amendment, particularly highlighting any precedential cases where amendments were permitted under similar circumstances. It is imperative for the appellant to adhere to the procedural requirements established by the Customs Act and the accompanying regulations to bolster their request.

03-09-2024 (2024) TaxCorp(IDT) 134184 (CESTAT-KOLKATA)

Valuation of Imported Goods Dispute: Exclusion of Licence and Management Fees Upheld in Tribunal Ruling - In light of the tribunal's decision to set aside the impugned order and allow the appeal, importers must ensure that any fees or royalties included in the transaction value are demonstrably linked to the imported goods and are indeed conditions of sale. This ruling emphasizes the importance of meticulous documentation and clarity in the relationship between fees and the imported goods to mitigate any potential issues with customs valuation.

02-09-2024 (2024) TaxCorp(IDT) 134183 (CESTAT-AHMEDABAD)

Judicial Ruling on Classification of Imported Electrical Components – Key Items Confirmed under Appropriate Tariff Headings - In light of the Tribunal's ruling, it is imperative for importers and businesses dealing in electrical components to meticulously analyze and categorize their goods under the appropriate sections of the Customs Tariff Act. The decision underscores the importance of accurately aligning product classifications to ensure compliance and optimal tariff benefits. Businesses are advised to review their current classifications in light of the Court's affirmations to mitigate the risk of potential disputes with customs authorities.

02-09-2024 (2024) TaxCorp(IDT) 134182 (CESTAT-NEW DELHI)

Vitamin AD3 Determined Under CTH 2936 Amidst Conflicting Interpretations - Based on the current ruling, the classification of Vitamin AD3 is firmly established under CTH 2936, and the demand for interest has been duly confirmed due to the proper classification of the product. Importers should take heed of the principles established in the landmark cases, particularly regarding tax liability and the obligation towards interest payments upon demand establishment.

29-08-2024 (2024) TaxCorp(IDT) 134181 (CESTAT-KOLKATA)

Classification of Imported Petroleum Products and Implications of Regulations - In light of the judgment, it is clear that the classification of imported petroleum products should primarily align with the immediate and demonstrable nature of the goods as evidenced by testing. Importers should ensure accuracy in reported classifications to prevent potential disputes with the revenue authorities. The decision confirms that procedural errors, if subsequently remedied, should not lead to severe penalties. Hence, importers should remain vigilant in adhering to testing protocols and timelines to safeguard against misconceptions regarding product classifications.

28-08-2024 (2024) TaxCorp(IDT) 134180 (CESTAT-KOLKATA)

Classification Conundrum: High Court Rules Import Under CTH 2709 - The High Court’s decision emphasizes the necessity for the Department to adhere to established classifications and the principles of finality in assessments. The lack of suppression on the appellant's part reinforced the concept that once an assessment is finalized, it cannot be reopened without substantial justification. Importers must ensure that their classifications are correct and well-documented to minimize disputes. This decision preserves the integrity of the initial assessments and grants clarity on entitlement to exemptions.

23-08-2024 (2024) TaxCorp(IDT) 134179 (CESTAT-BANGALORE)

Time Limitation Prevails over Classification Dispute of Imported Spectrometers - The adjudicating authority's firm position on the procedural limitation aspect underscores the critical importance of timeliness in customs compliance. Stakeholders should acknowledge that a failure to issue notices within the stipulated period will render any later claims unviable. Consequently, businesses must establish robust documentation practices to demonstrate transparency and adherence to legal requirements, thus ensuring viable defense against potential customs inquiries.

19-08-2024 (2024) TaxCorp(IDT) 134178 (CESTAT-NEW DELHI)

Enhancement of the Imported Goods' Value Upheld: Importers Barred from Challenging Accepted Valuation - In light of the current ruling, it is imperative for importers to perform due diligence before accepting any value attributed to their imported goods. The binding nature of admissions in legal representations necessitates that importers maintain consistency in their valuation claims and be cautious when negotiating terms with the Customs authorities. To safeguard against potential future disputes, importers should seek external valuations or establish evidence supporting declared values prior to final acceptance.

27-08-2024 (2024) TaxCorp(IDT) 134177 (CESTAT-KOLKATA)

CENVAT Credit Rights Affirmed: Appellant Cleared of Penalty OverComponents and Welding Electrodes - The legal pronouncement in this case has unequivocally clarified the appellant’s rights with respect to claiming CENVAT Credit for capital goods and associated input materials. It's crucial for businesses to ensure that they adequately document and substantiate claims for CENVAT Credit, considering the comprehensive interpretations of the CENVAT Credit Rules as evidenced herein. Moreover, maintaining a careful balance in CENVAT Credit accounts is essential to evade potential interest charges.

30-08-2024 (2024) TaxCorp(IDT) 134176 (CESTAT-HYDERABAD)

Revenue’s Misinterpretation of Assessable Value in Excise Duty against Appellant's Transaction Value - The current decision strongly emphasizes the legal requirement to adhere to transaction value principles for determining assessable value in excise duty assessments. Entities engaged in job work should ensure that their pricing methodologies align with the provisions set forth in the CEA and associated rules. Furthermore, maintaining clear documentation and transparent communication regarding pricing with principal manufacturers is crucial in mitigating risks of time-barred assessments.

Direct Tax

30-08-2024 NOTIFICATION NO. 101/2024

Central Government approves ‘Advanced Manufacturing Technology Development Centre, Chennai' under the category of ‘University, College or Other Institution’ for the purposes of clause (ii) of sub-section (1) of section 35

20-08-2024 PRESS RELEASE, DATED 20-8-2024

CBDT ISSUES CLARIFICATION IN RESPECT OF INCOME_TAX CLEARANCE CERTIFICATE (ITCC)

20-08-2024 LETTER F.NO. 196/82/2024-ITA-I

SECTION 10(46A) OF THE INCOME-TAX ACT, 1961 - EXEMPTIONS - INCOME ARISING TO A BODY OR AUTHORITY OR BOARD OR TRUST OR COMMISSION, NOT BEING A COMPANY - STANDARDIZING PROCESS OF APPLICATION UNDER SECTION 10(46A)

12-08-2024 NOTIFICATION NO. 99/2024

Exemption from specified income U/s 10(46) of IT Act 1961 – ‘West Bengal Transport Workers Social Security Scheme’

12-08-2024 NOTIFICATION NO. 100/2024

Exemption from specified income U/s 10(46) of IT Act 1961 – ‘Unique Identification Authority of India’

GST

14-08-2024 Instruction No. 03/2024-GST

Applying para 2(g) of Instruction No. 01/2023-24-GST (Inv.) dt. 30-3-2024 in Audit matters

12-08-2024 Instruction No. 02/2024-GST

Guidelines for Second special All-India Drive against fake registrations

06-08-2024 NOTIFICATION NO. 16/2024–CENTRAL TAX

Seeks to bring in force provisions of Sections 11, 12, 13 of the Finance Act, 2024

01-08-2024 PRESS RELEASE, DATED 1-8-2024

GST COLLECTIONS AND OTHER RELEVANT DATA CAN BE PERENNIALLY ACCESSED ON THE GST PORTAL

31-07-2024 NOTIFICATION No. S.O. 3048(E)

Supersession Notification for the Constitution of Principal and States benches of GSTAT.

Corp Law

09-09-2024 NOTIFICATION No. G.S.R. 555(E)

Companies (Compromises, Arrangements and Amalgamations) Amendment Rules, 2024.

09-09-2024 Notification No. F.No.CCI/CD/Comb. Regl./2024

The Competition Commission of India (Combinations) Regulations, 2024 (No. 07 of 2024).

09-09-2024 NOTIFICATION No. G.S.R. 554(E)

The Companies (Indian Accounting Standards) Second Amendment Rules, 2024.

09-09-2024 NOTIFICATION No. G.S.R. 552(E)

Investor Education and Protection Fund Authority (Accounting, Audit, Transfer and Refund) Second Amendment Rules, 2024.

09-09-2024 NOTIFICATION No. S.O. 3846(E)

Central Government appoints the 10th day of September, 2024 as the date on which the provisions various sections of the Competition (Amendment) Act, 2023 shall come into force

IDT

10-09-2024 Notification No. 04/2024-Customs (CVD)

Seeks to impose countervailing duty on imports of Welded Stainless-Steel Pipes and Tubes originating in or exported from China PR and Vietnam

06-09-2024 NOTIFICATION NO. 42/2024-CUSTOMS

Seeks to rescind Notification No. 26/2011-Customs, dated 01.03.2011

05-09-2024 NOTIFICATION NO. 59/2024-CUSTOMS (N.T.)

Appointment of Common Adjudicating Authority

04-09-2024 FTP - Notification No. 27/2024-25

Amendment in Import Policy condition for Raw Pet Coke and Calcined Pet Coke under Chapter 27 of Schedule-I (Import Policy) of ITC (HS) 2022

04-09-2024 Circular No. 13/2024-Customs

Implementation of automation in the Customs (Import of Goods at Concessional Rate of Duty or for Specified End Use) Rules, 2022 in respect of EOUs

04-09-2024 NOTIFICATION NO. 58/2024-Customs (N.T.)

Appointment of Common Adjudicating Authority

04-09-2024 CORRIGENDUM No. G.S.R. 536 (E)

Corrigendum - Notification No. 57/2024-Customs (N.T.), dated the 31st August, 2024

03-09-2024 DGFT - Public Notice No. 22/2024-2025

Allocation of 8606 Metric Tonnes Raw Value (MTRV) of raw cane sugar to USA under TRQ scheme for US fiscal year 2025

03-09-2024 FTP - Notification No. 26/2024-2025

Export of Red Sanders wood by Forest, Environment & Climate Change Department, Government of Odisha - Extension of time regarding

03-09-2024 Instruction No. 20/2024-Customs

Implicating Customs Brokers as co-noticee in cases involving interpretative disputes

Budget 2024-25

Finance (No. 2) Bill, 2024: Complete Coverage

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