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HC : Delhi High Court Quashes Assessment Order: Mandates Proof of Service of DRP Objections on AO to Safeguard Assessee Rights in Faceless Proceedings

HC : Delhi High Court Halts Recovery of Demand from Start-Up Over Section 80-IAC Deduction: Calls for Urgent Amendments to Rule 18BBB and Form 10CCB

ITAT : Bangalore ITAT Upholds Denial of 12AB Registration to Infosys Green Forum: Captive Solar Plant Serving Infosys Ltd. Not Charitable Due to Absence of Public Benefit

ITAT : ITAT Dehradun Moderates Addition on Alleged Bogus Purchases: Partial Profit Estimation Upheld Where Assessee Substantiates Genuineness and AO Fails in Further Inquiry

HC : Madras High Court Upholds Criminal Proceedings Against Partnership Firm and Managing Partner under Benami Law for Demonetisation-Era Cash Deposits; Discharges Dormant Director for Lack of Evidenc…

ITAT : ITAT Surat Upholds Co-operative Bank as ‘Assessee in Default’ for Failure to Deduct TDS on Rent and Legal Fees Despite Disallowance under Section 40(a)(ia)

ITAT : Mumbai ITAT Restores Revenue’s Appeals After RP Added in Form 36: Clarifies Moratorium Bars Recovery, Not Adjudication

SC : Supreme Court Declares Tiger Global's Flipkart Share Sale via Mauritius a Sham; Denies Treaty Benefits Under Mauritius DTAA, Citing Impermissible Tax Avoidance

HC : Punjab & Haryana High Court Affirms Finality of Settlement Commission Orders: Judicial Review Barred Absent Procedural Illegality or Fraud

ITAT : Lucknow ITAT Affirms Validity of Section 148 Reassessment Pursuant to Section 150(1) Directions; Each Addition Must Stand on Independent Evidentiary Footing

ITAT : Payments for Satellite Transponder Services to UK Entity Not ‘Royalty’ under India-UK DTAA; No Withholding Tax Liability under Section 195

ITAT : Delhi ITAT Orders Re-examination of Section 69B ‘On Money’ Addition in Jewellery Purchase from Nirav Modi Group due to Procedural Lapses

ITAT : Mumbai ITAT Upholds Allowability of Salary Revision Provision for Government Undertakings Based on Consistent Accounting Practice and Binding Pay Commission Recommendations

ITAT : Delhi ITAT Third Member Holds Addition of Rs. 418.66 Cr under Section 56(2)(viib) Unsustainable: CIT(A) Order Set Aside Due to AO’s Prior Rectification under Section 154

SC : Supreme Court Overturns Gujarat HC’s Directive Mandating CBDT Software Changes for TDS Credit Mismatches Where Deductor Defaults

HC : Delhi High Court Quashes Reassessment under Section 148 Against NDTV Founders, Holds Revenue’s Action Arbitrary and Without Jurisdiction

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

HC : Gujarat High Court Sets Aside GST Demand Raised Solely on Ledger Discrepancy, Orders Proper Adjudication and Limits Use of Extended Limitation Period

SC : Supreme Court Overrules High Court, Grants Bail in ₹315 Crore Fake ITC Scam After Prolonged Pre-Trial Detention

HC : Orissa High Court Quashes Service Tax Order Against Deceased Proprietor; Holds Proceedings Abate Upon Death in Absence of Statutory Continuance

HC : Calcutta High Court Quashes GST Demand for Overstepping Show Cause Notice: Orders Fresh Adjudication Under Section 73 of WBGST/CGST Act

HC : Gujarat High Court Directs Fresh Refund Processing for Accumulated ITC on Zero-Rated Supplies Where GST Portal Lacked Proper Mechanism

HC : Madras High Court Nullifies GST Best Judgment Assessments for FMCG Wholesalers, Citing Absence of Statutory Power under Section 74

SC : Supreme Court Clarifies Minimum Import Price Notification for Steel: Gazette Publication Date is Key for Enforcement, Not DGFT Website Upload

HC : Bombay High Court Quashes Composite GST SCN Covering Multiple Financial Years: Jurisdictional Precedent Prevails Over Conflicting Delhi HC Ruling

HC : Bombay High Court Strikes Down GST Demand on Transfer of Long-term Leasehold Rights in MIDC Plot, Citing Absence of “Supply in Course of Business”

HC : Bombay High Court Mandates Strict Three-Month Interval Between GST Show Cause Notice and Final Order, Invalidates Premature Order

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

Delhi Appellate Tribunal Establishes Liability of Company Directors Under FEMA for Concealed Foreign Payments; Electronic Evidence Upheld, Penalties Reduced - In summary, the Tribunal’s decision clarifies that directors and officers can be held personally liable under FEMA for their participation and knowledge in unauthorized foreign exchange transactions. The Tribunal emphasized the importance of proportionality in the imposition of penalties and affirmed the admissibility of electronic evidence when statutory requirements are satisfied. Companies and their officers must ensure strict adherence to authorized channels for foreign exchange transactions and maintain robust documentation to defend against allegations of contravention.

Appellate Tribunal Clarifies Third-Party Payment Restrictions for Pre-2013 Export Transactions; Reduces Company’s Penalty under FEMA - The Tribunal’s decision firmly establishes that, prior to the RBI’s circular of 8 November 2013, Indian exporters were not legally permitted to receive export proceeds from third parties. Only after the said circular, subject to stringent due diligence and documentation, did the regulatory framework permit such flexibility. For export payments received from third parties before this date, contravention of Regulation 3(2) is manifest, and penalties may be imposed not only on companies but also on responsible individuals who directly participated in the impugned transactions. Going forward, exporters and their directors must strictly adhere to RBI guidelines and ensure that any innovative payment arrangements are supported by contemporaneous circulars or notifications.

Tribunal Clarifies Ex-Post-Facto Approval Regularises FEMA Contraventions in Share Transfer; Penalty Maintained for Unexplained Funding - The tribunal’s decision establishes that ex-post-facto approval by the RBI regularises the procedural lapse of not obtaining prior approval for share transfer transactions under FEMA regulations. However, this regularisation does not extend to breaches involving substantive compliance requirements, such as verifying the source of funds. Thus, penalties for procedural lapses are unsustainable once ex-post-facto approval is granted, but penalties for substantive contraventions remain enforceable.

Income tax – Sections 197, 245R - Supreme Court Upholds Taxability of Capital Gains from Flipkart Share Sale: India-Mauritius DTAA Benefits Denied to Tiger Global Entities Due to Impermissible Avoidance Arrangement - The Supreme Court’s decision establishes that in the post-GAAR and 2016 Protocol era, a Tax Residency Certificate alone does not grant automatic entitlement to DTAA benefits. Tax authorities are empowered to scrutinize the true nature of cross-border transactions, and where evidence indicates a lack of commercial substance or a tax avoidance motive, treaty benefits may be denied. Assessees engaging in transactions after April 1, 2017, must ensure that their arrangements are backed by genuine commercial substance and not structured solely for tax avoidance, as GAAR provisions will override any grandfathering protection if a tax benefit is obtained after the cut-off date.

Income Tax Act - Section 195 - Delhi High Court Rules Physical Presence Mandatory for Service PE under India-UK DTAA – Virtual Presence Not Sufficient for Taxability - The Delhi High Court’s decision provides actionable clarity that for a foreign entity to attract Service PE status and thus be subject to tax withholding in India under Article 5(2)(k) of the India-UK DTAA, there must be a demonstrable physical presence of its employees or personnel in India. Entities providing cross-border services should review their operational models and ensure that unless their employees or personnel are physically present in India, no Service PE will arise, and therefore, no withholding tax obligation exists under this specific treaty provision.

Income Tax - Sections 195, 197 - Delhi High Court Quashes Nil Withholding Certificate Denial for UK Educational Firm Due to AO’s Non-Compliance with Rule 28AA in FTS Dispute - The Delhi High Court’s decision mandates strict compliance with Rule 28AA by the AO when processing applications under Section 197 for nil or reduced withholding tax certificates. Authorities must not disregard binding appellate orders or the statutory framework, and must substantiate their decision-making with reference to all relevant factors—including prior years’ liabilities and DTAA interpretations. AOs are directed to reconsider such applications afresh, adhering fully to the procedure prescribed by Rule 28AA and to the factual and legal context, especially where prior ITAT rulings exist on the same facts.

Income Tax - Sections 144C, 147, 148, 151 - ITAT Mumbai Declares Reassessment Void for Lack of Proper Sanction: Approval from Principal Chief Commissioner Held Mandatory under Amended Section 151(ii) in FTS Dispute - The ITAT Mumbai’s decision establishes that strict compliance with the amended sanctioning authority requirement under section 151(ii) is essential for the validity of reassessment proceedings initiated after the passage of three years from the end of the relevant assessment year. Any lapse in obtaining the approval from the correct authority, namely the Principal Chief Commissioner, will render such reassessments without jurisdiction and liable to be quashed, irrespective of the merits of the underlying additions.

Income tax - Sections 194J - ITAT Mumbai Rules: Automated Roaming Charges Not Liable for TDS under Section 194J—Disallowance under Section 40(a)(ia) Deleted - The ITAT Mumbai’s decision establishes that, for roaming charges paid to telecom operators, where the core service is rendered through a fully automated process without human intervention, no obligation arises for deduction of TDS under Section 194J. Therefore, any disallowance made under Section 40(a)(ia) for non-deduction of TDS on such payments must be deleted. Assessees should carefully document the automated nature of the services to avoid unnecessary disallowances and litigation.

Income Tax - Sections 40(a)(ia), 147, 148, 195 - ITAT Lucknow Rules Testing Charges to Foreign Entities Not Taxable as Fees for Technical Services: Reassessment Under Section 147 Quashed - The ruling of the ITAT, Lucknow Bench, provides a clear actionable precedent: payments for ballistic testing and certification to foreign entities, where no human element is involved, do not constitute “fees for technical services” under section 9(1)(vii), and thus do not trigger TDS obligations under section 195. Consequently, any disallowance under section 40(a)(ia) for such non-deduction is unsustainable. Furthermore, reassessment proceedings cannot be initiated solely on a change of opinion when all primary facts were previously disclosed.

Income Tax – Sections 6(1)(c) - Flipkart Co-Founder Deemed Indian Resident Despite Move to Singapore: ITAT Upholds Centre of Vital Interest and DTAA Tie-Breaker Application - The ITAT’s decision affirms that for individuals transitioning between countries, mere relocation or new overseas investments do not override prior and continuing substantial ties to India. The residency status must be determined by holistically examining the centre of vital interests, including both personal and economic relations, with precedence given to active business ties over passive holdings. Procedural safeguards, such as issuing a draft order under Section 144C, must be observed based on the initial claim in the return.

Income Tax - Sections 92CA, 143(3), 143A, 143B - Transfer Pricing Adjustment on Rupee-Denominated CCD Interest Deleted—Domestic Lending Rate, Not LIBOR, Held Applicable - This ITAT-Delhi decision firmly reiterates that interest on rupee-denominated CCDs issued to non-resident AEs must be benchmarked with reference to domestic prime lending rates rather than foreign currency benchmarks like LIBOR. The Tribunal’s application of the Special Bench ruling in Hyderabad Infratech (P.) Ltd. not only reinforces consistency in such transfer pricing matters, but also provides actionable clarity for future benchmarking of similar instruments, ensuring that taxpayers use the correct domestic comparables for ALP determination.

Income Tax - Sections 271G, 92D, 139(1) - ITAT Ahmedabad Rules Penalty Under Section 271G Invalid Without Specific Documentary Lapse in Transfer Pricing Scrutiny - In light of the above, the ITAT Ahmedabad dismissed the Revenue’s appeal and upheld the deletion of the penalty. The ruling makes it abundantly clear that penalty under Section 271G can only be levied for non-furnishing of specific documents prescribed under Rule 10D, and not for general or technical deficiencies in benchmarking or method selection.

Delhi Tribunal Reduces Penalty for Directors and Firm in Hawala Payment & Customs Evasion Case Involving Falsely Declared Agrochemicals - The Tribunal affirmed the findings of contravention under Section 3(b) of FEMA for making Hawala payments to exporters in China and for customs duty evasion through misdeclaration, holding both the firm and the directors liable under Section 42 of FEMA. However, it exercised discretion to reduce the penalty imposed, citing settlement of customs dues and financial hardship. Appellants must note that payment of customs dues does not exonerate them from FEMA violations, but genuine cooperation and financial distress may warrant leniency in penalty.

Appellate Tribunal Permits Substitution of Seized Demat Accounts with Fixed Deposit under SAFEMA: Relief Granted Subject to Adjudication and Compounding Outcome - The Tribunal’s decision underscores that in cases of seizure under Section 37A of FEMA, the core objective is to secure an equivalent amount in India corresponding to the alleged contravention. Substitution of the seized asset with another form of security—such as a Fixed Deposit of equivalent value—is permissible, provided it ensures the authorities’ interests are safeguarded until final adjudication or compounding is resolved. Appellants seeking compounding or adjudication may thus request substitution, provided they offer a security of equal value and adhere to the conditions imposed by the authorities.

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.

NCLAT Upholds NCLT’s Discretion to Limit Oral Arguments—Written Submissions and One-Hour Hearing Satisfy Natural Justice - The NCLAT held that the appellant was afforded a reasonable and fair opportunity to present its case, both orally and in writing. The Tribunal reiterated that the principles of natural justice require a fair—not unlimited—chance to be heard. The NCLT’s regulatory authority over its own procedure was reaffirmed, and the appeal was dismissed, with the NCLT being requested to address all pending applications alongside the main matter.

Supreme Court Mandates NCLT to Pass Reasoned Order on Oppression and Mismanagement Allegations; Buy-Out Remedy Cannot Be Granted Without Merits Consideration - The Supreme Court's dismissal of the appeal and affirmation of the NCLAT’s remand order underscores the necessity for the NCLT to engage in a thorough, reasoned adjudication on the merits before granting any exit or buy-out remedies in oppression and mismanagement cases. Parties must ensure that all substantive allegations under Section 241/242 are addressed and proven before seeking any consequential relief. Interim orders do not revive automatically upon remand; fresh interim relief must be sought based on current circumstances if required.

NCLAT Upholds Dismissal of Section 213(b) Petition: No Evidence of Systemic Fraud, Only Recoverable Dues and Regulatory Lapses - In light of the above, the NCLAT’s decision to uphold the NCLT’s summary dismissal of the Section 213(b) petition is legally sound. The case reinforces that mere regulatory contraventions or debt recovery disputes, absent evidence of fraud or intent to defraud, do not meet the threshold for invoking the investigative jurisdiction of the Tribunal under Section 213(b). Actionable takeaway: aggrieved parties must distinguish between matters of regulatory enforcement and those warranting the extraordinary remedy of a Section 213(b) investigation.

NCLAT Directs Expeditious Disposal of Deferred AGM Agendas and Clarifies Procedure for Chairperson Appointment under Section 104 - The NCLAT’s decision underscores the imperative of procedural compliance under the Companies Act, particularly regarding the appointment of a Chairperson at AGMs. It declined to issue redundant directions on following interim orders, reiterating that statutory remedies are adequate to address potential violations. The Tribunal’s actionable outcome directs the NCLT to swiftly address and dispose of the remaining deferred agenda items at the next hearing.

Madras High Court Upholds MSME Status for Supplier; Orders Re-Arbitration Before New Arbitrator Following Set Aside of Award - The decision of the Madras High Court affirms that documentary evidence of MSME status is sufficient to invoke the jurisdiction of the MSEFC under the MSMED Act, irrespective of technical objections on the timing of registration. The Commercial Court is empowered to set aside arbitral awards on merits under Section 37 of the Arbitration and Conciliation Act, and where an arbitrator has pre-judged the matter, a new arbitrator must be appointed to ensure a fair hearing.

Telangana High Court Bars Section 11 Arbitration Amid Pending MSME Council Proceedings, Grants Conditional Liberty to Applicant - The Telangana High Court has reaffirmed that once the MSME supplier invokes Section 18 of the MSMED Act and proceedings are ongoing before the Facilitation Council, a parallel application under Section 11(6) of the Arbitration and Conciliation Act for appointment of an arbitrator is not maintainable. However, if the Facilitation Council’s proceedings fail to address the dispute fully, the applicant retains the right to approach the Court under Section 11(6) post-adjudication.

Calcutta High Court Quashes Look Out Circular Issued Without Cognizable Offence Under Ongoing SFIO Investigation - The Calcutta High Court held that a Look Out Circular cannot be issued solely on the basis of an ongoing investigation by SFIO under the Companies Act, 2013, unless a cognizable offence is made out and substantiated by a completed investigation report under Section 212(12). In the absence of such a report or any evidence suggesting risk of absconding, the LOC was found to be unjustified and was quashed. Petition was allowed.

Karnataka High Court Rules MSME Council Lacks Jurisdiction Where Registration Postdates Commercial Transaction - The Karnataka High Court decisively held that the statutory jurisdiction of the MSME Facilitation Council is strictly limited to disputes arising from transactions entered into after the supplier’s registration under the MSMED Act. This means that neither the Council nor an Arbitral Tribunal constituted on its reference can adjudicate disputes arising out of transactions predating MSME registration. Any such proceedings are a nullity in law, and cannot be validated by the parties’ consent or failure to object in a timely manner.

Madras High Court Sets Aside MSEFC Order for Failing to Adjudicate Jurisdiction Under Section 16 of Arbitration Act in Works Contract Dispute - The Madras High Court held that the MSEFC had not fulfilled the exercise required to determine its jurisdiction under Section 16 of the Arbitration and Conciliation Act, 1996, as per the earlier writ petition directive. Accordingly, the impugned order was set aside and the matter was remanded to the MSEFC. The Council was directed to re-examine the jurisdictional issue by calling for further details if necessary, providing a personal hearing to the parties, and issuing a detailed, reasoned order addressing each contention.

NCLAT Upholds NCLT’s Removal of Auditor for Charging Management Fees in Contravention of Section 144(h) of Companies Act, 2013 - In light of the documentary evidence establishing the charging of management fees by the statutory auditor, a direct violation of Section 144(h) of the Companies Act, 2013 was found. The NCLAT, affirming the NCLT’s decision, concluded that the removal of the auditor was justified, and no further proceedings were warranted. Auditors must strictly adhere to the prohibitions under Section 144 to maintain their independence and avoid conflicts of interest.

Punjab & Haryana High Court Upholds Mandatory Pre-Deposit: Writ Petition Not Maintainable Against Facilitation Council Award Without Exhausting Statutory Remedies Under MSMED Act - The Punjab & Haryana High Court categorically held that writ petitions challenging the award of the Facilitation Council are not maintainable unless the petitioner has first exhausted the remedy of filing an application under Section 34 of the Arbitration and Conciliation Act, 1996, and complied with the mandatory pre-deposit requirement set out in Section 19 of the MSMED Act. The judgment affirms the sanctity of the statutory mechanism and is actionable in that parties aggrieved by Facilitation Council awards must follow the prescribed procedure and cannot seek to circumvent it by approaching the High Court directly.

Calcutta High Court Affirms Exclusive Arbitral Authority of MSME Facilitation Council; 90-Day Timeline Held Directory, Not Mandatory - The Calcutta High Court’s decision makes it actionable that in arbitrations initiated under Section 18 of the MSME Act, parties must proceed exclusively before the MSME Facilitation Council or its nominee. Applications to civil courts under the A&C Act for extension or substitution of the arbitrator will not be entertained, as the statutory mandate vests solely in the Council. Any delay beyond the ninety-day period does not invalidate the proceedings or require judicial intervention for continuation.

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.

Refund of Central Excise Duty Denied for Time-Barred Claims: CESTAT Mumbai Reiterates Strict Application of Section 11B and Rejects Reliance on Other Assessee’s Orders - The CESTAT Mumbai decisively held that refund claims for central excise duty must be filed within the one-year limitation period mandated by Section 11B of the Central Excise Act, 1944, unless the duty was paid pursuant to an unconstitutional levy. Refund claims based on reversal of CENVAT credit or exemption notifications are not exempt from this time bar. Additionally, assessees cannot rely on favorable orders passed in the cases of other parties to substantiate their refund claims. As a result, the appeal was dismissed, and the departmental order denying the refund was affirmed.

Jharkhand High Court Condones 428-Day Delay: No Suppression or Substantial Question of Law in Dispute Over Manufacturing Under Rule 16(2) - The Jharkhand High Court held that the 428-day delay in filing the appeal was condonable owing to sufficient cause being demonstrated. The Court ruled that the issue at hand did not involve suppression of facts but was, at best, a matter of legal interpretation regarding the definition of manufacture under Rule 16(2) of the Central Excise Rules, 2002. Since the factual finding of no suppression was supported by the record and free from perversity, and no substantial question of law arose, the appeal was not admitted.

CESTAT Mumbai Quashes IGST and Penalty Demand on Advance Authorisation Imports for Lack of Evidence and Pre-Import Condition Fulfilment - The CESTAT Mumbai held that, in the absence of any documentary evidence from the Revenue establishing non-fulfilment of notification conditions or misuse of the Advance Authorisation scheme, the demand for IGST, interest, redemption fine, and penalty cannot be sustained. The impugned order was set aside, and the appeal allowed in favour of the appellant. Importers availing Advance Authorisation benefits must maintain robust records to demonstrate compliance, but unless the department produces credible evidence to the contrary, denial of exemption is not tenable.

CESTAT Mumbai Rules Against Customs in Insecticide Export Classification Dispute; MEIS Benefits Restored for Exporters - Based on the legal analysis and findings, the CESTAT Mumbai set aside the impugned order of the Commissioner of Customs. The Tribunal concluded that the exported insecticides were correctly classified under CTI 3808 9199, and the reclassification based on Sub-Heading Notes intended solely for antimalarial products was not tenable in law. The order demanding export duty, denying MEIS benefits, and imposing fines and penalties was quashed. The appeal was allowed with consequential relief to the exporters, subject to the law.

CESTAT Kolkata Exonerates Importer of Cloves from Confiscation and Penalty Owing to Customs’ Laxity Despite Adverse FSSAI Report - Based on the findings, the tribunal held that the importer had complied with all statutory requirements, and there was no basis for penal action or confiscation when the clearance was made under a proper Bill of Entry and duty was paid. The action (or inaction) of the customs authorities, rather than any lapse on the part of the importer, was at the root of the irregularity. The impugned order was set aside, and the appeal allowed, entitling the appellant to consequential relief as per law.

Supreme Court Clarifies: Import Restrictions on Mild Steel Effective Only From Date of Official Gazette Publication – Transitional Protection for Prior Irrevocable Letters of Credit Upheld - In summary, the Supreme Court held that Notification No. 38/2015-20, imposing import restrictions on mild steel items, became effective only upon its publication in the Official Gazette on 11.02.2016. Consequently, importers who had opened irrevocable Letters of Credit before this date, in compliance with para 1.05(b) of the FTP, are entitled to the protection of the transitional provision. Authorities cannot retrospectively enforce trade restrictions prior to the official date of publication.

Penalty and Demand Set Aside by CESTAT Bangalore: Reversal of Unutilized CENVAT Credit Prior to Utilization Deemed as Non-Availment - In light of the Tribunal's decision, it is clear that where an assessee reverses CENVAT credit before its utilization, such reversal is treated in law as non-availment of credit. In such cases, the issuance of a show cause notice to demand reversal or to impose penalty is not tenable, and any such demand or penalty is liable to be set aside. Assessees should ensure that any CENVAT credit not intended to be utilized is promptly reversed, especially when identified during audits or internal reviews, to safeguard against potential proceedings.

Chennai CESTAT Quashes Customs Broker Licence Revocation for Breach of Natural Justice: Failure to Notify Broker Before Overturning Inquiry Officer’s Report Fatal - The CESTAT Chennai’s decision underscores the critical importance of adhering to the procedural safeguards embedded in the Customs Broker Licensing Regulations, 2013, particularly the requirement to notify and hear the affected party before passing an adverse order that departs from the Inquiry Officer’s findings. Authorities must ensure strict compliance with Regulation 20(7) and the principles of natural justice in all proceedings for revocation or penalty. Failure to do so will vitiate the proceedings, resulting in the setting aside of the order at the threshold, regardless of the substantive merits.

CESTAT Delhi Quashes Valuation Order Due to Non-Compliance with Section 138B and 138C: Statements Recorded Under Section 108 Deemed Inadmissible Without Proper Procedure - The decision of the CESTAT, New Delhi, makes it clear that statements recorded under Section 108 of the Customs Act and computer-generated documents such as email printouts cannot be admitted in adjudication proceedings unless strict compliance with Sections 138B and 138C is established. Adjudicating authorities must examine witnesses, form judicial opinions on admissibility, and allow cross-examination before relying on such evidence. Failure to follow these procedures renders subsequent orders unsustainable.

CESTAT Kolkata Rules Salvaged Ship Shaft Pieces Rightly Classifiable Under CTH 7326 9090; Show Cause Notice for Reclassification and Extended Limitation Period Quashed - The CESTAT, Kolkata has conclusively held that salvaged shaft pieces from ships, as imported by the appellant, are correctly classifiable under CTH 7326 9090, based on the description in the commercial documents and SAFTA Certificate. The Tribunal has provided actionable clarity that reclassification and recovery of differential duty cannot be sustained in the absence of fresh, substantial evidence or cogent reasoning for classification change, especially where the assessment has attained finality and all facts were disclosed. The invocation of the extended limitation period was found to be wholly inapplicable without any suppression or misrepresentation.

CESTAT Upholds Reclassification and Duty Demand on Lauric Acid Imports: Exemption Denied Under Notification No.12/2012-Cus, Sl. No.230A - In light of the above, the Tribunal found no merit in the appellant’s claim for exemption under Notification No.12/2012-Cus, Sl. No.230A, as Lauric Acid does not fall under the specified tariff heading. The review and demand of differential duty by the authorities were found to be in accordance with law, and the impugned orders were upheld. Importers must ensure strict adherence to tariff headings when claiming exemptions, as misclassification will attract review and recovery under Section 28(1).

CESTAT Kolkata Upholds Application of Rule 8 for Captive Consumption Valuation; Rejects Extended Limitation and Acknowledges Revenue Neutrality - Based on the decision of the CESTAT Kolkata, it is actionable for assessees to adopt Rule 8 valuation (110% of cost of production) for goods transferred to their own units for further manufacture, even if some sales are made to independent buyers, provided the bulk of clearances are for captive consumption. Any attempt by the Department to revalue such clearances under Rules 4 and 11 or to raise demand for differential duty is not sustainable, especially where Cenvat credit is availed by the receiving unit, resulting in revenue neutrality. Moreover, if the Department has previously audited and accepted the assessee’s approach, it cannot subsequently invoke the extended period of limitation for raising demands.

Supreme Court Upholds CESTAT’s Ruling: Principal-to-Principal Sales Valuation Accepted, Rejects Extended Limitation for Excise Duty Demand - In light of the Supreme Court’s affirmation of CESTAT’s order, it is clear that where transactions between two parties are conducted on a principal-to-principal basis and there is no evidence of related party relationship or mutuality of interest, the transaction value agreed between the parties must be accepted for excise assessment. Any differential duty demand based on the downstream sale price, without evidence of manipulation or relationship, cannot be sustained. This decision reinforces the primacy of transaction value under Section 4(1)(a), and cautions against arbitrary application of Rule 9 or Rule 11 in the absence of concrete findings.

Supreme Court Denies Condonation of Delay in Retail Price Determination Appeal Due to Inadequate Justification - In light of the above, the Supreme Court refused to condone the delay in filing the appeal due to the absence of a satisfactory explanation. The ruling reinforces the necessity for applicants to provide a detailed, credible, and well-documented explanation for any delay when seeking condonation, especially in matters involving statutory timelines. Parties must ensure that applications for condonation of delay comprehensively address the reasons for delay and are supported by sufficient evidence.

CESTAT Delhi Upholds Rs. 1 Crore Penalty on Importer and Beneficial Owner for False Declarations and Importation of Prohibited Goods - The CESTAT, New Delhi, decisively affirmed that the statutory definition of ‘importer’ under section 2(26) of the Customs Act, 1962, is broad and inclusive, capturing not only the IEC holder but also the beneficial owner and any person holding himself out as the importer. Thus, the penalties imposed under sections 112(b) and 114AA for improper importation of prohibited goods and for making false declarations in customs documents are legally sustainable. The quantum of penalty—constituting only 11% of the value of the prohibited goods—was found to be reasonable and warranted, given the facts of intentional misrepresentation and the seriousness of the offence.

CESTAT New Delhi Clarifies Exemption Scope: Oxygen Concentrators Qualify as ‘Apparatus for Therapeutic Respiration’ Under Customs Notification - On a considered reading of the notification and relevant tariff entries, the CESTAT set aside the impugned order, holding that the exemption cannot be restricted to ventilators alone. Oxygen concentrators, being apparatus for therapeutic respiration, are eligible for exemption under the notification. The appellate authority’s failure to provide a detailed, reasoned order was also corrected, reinforcing the necessity for proper adjudicatory practice.

Kolkata CESTAT Upholds Classification of Imported Motor Controllers Under CTH 8503 0090, Rejects Revenue’s Appeal on Valuation and Classification Grounds - Based on the detailed reasoning and legal analysis, the CESTAT Kolkata has reaffirmed that motor controllers imported as stand-alone products should be classified under CTH 8503 0090, and not as parts of motor vehicles under CTH 8708 9900, unless there is a specific declaration or evidence linking them to a particular vehicle class. The Tribunal further found that the Revenue failed to properly invoke and substantiate enhancement of value under the Customs Valuation Rules, 2007. The order of the lower appellate authority was thus upheld and the Revenue’s appeal dismissed.

CESTAT Delhi Rejects Revenue’s Rectification Plea: Department’s Knowledge Triggers Limitation, No Scope for Rehearing - The CESTAT Delhi decision firmly establishes that once the Department is in possession of material knowledge regarding duty evasion, the limitation period for raising a demand commences. Applications for rectification of mistake cannot be used to revisit or rehear the matter in substance, but only to correct manifest errors apparent on the face of the record. Actionable takeaway: Departments must ensure prompt action in issuing show cause notices from the date of acquiring knowledge of any infraction, and rectification applications should be confined to correcting clear, non-debatable errors.

Secured Creditors Prevail over Central Excise: Bombay High Court Affirms Priority of SARFAESI Charge in Absence of Valid Attachment - The Bombay High Court has unequivocally held that in the absence of a valid attachment order and proclamation as per law, secured creditors who have registered their charge under the SARFAESI Act will have priority over the Central Excise Department in the recovery of dues. This ruling is directly actionable for banks and financial institutions seeking to enforce their security interests, clarifying that mere demands or letters from tax authorities do not override a registered security interest.

CESTAT Delhi Overturns Penalty and Interest on Reversed CENVAT Credit Linked to Electricity Sold Outside Factory - The CESTAT Delhi's decision underscores that when an assessee reverses CENVAT credit corresponding to the inputs and input services attributable to the electricity not used in the manufacture of dutiable goods—specifically electricity sold to the State Electricity Board or transferred to sister units—such reversal, even if performed after initial availment, is treated by law as if the credit was never availed. Therefore, demands for recovery, penalty, and interest cannot be sustained in these circumstances, provided documentary evidence of reversal exists and is disclosed in statutory returns.

Delhi High Court Bars DGFT from Retrospectively Restricting Export Incentives on Woven Synthetic Filament Fabrics under FTP - This judgment unequivocally establishes that the DGFT cannot dilute or restrict the scope of export incentive schemes under the Foreign Trade Policy by issuing clarificatory circulars. Any substantive restriction must be implemented only through formal amendments to the policy, which cannot operate retrospectively to deny benefits to exporters whose products were clearly eligible at the time of export. For exporters, this ensures certainty and protection of rights under the existing policy framework.

Customs Broker Exonerated: CESTAT Sets Aside Penalties for Security Deposit Forfeiture Due to Inadmissible Statements and Lack of Proper Evidence - Based on the analysis, the CESTAT concluded that the impugned order was fundamentally unsound because it rested solely on statements not properly admitted as evidence. The proper legal procedure for evidence was not followed by the Commissioner, rendering the findings of violation unsustainable. As a result, the order of penalty and forfeiture of security deposit was set aside. The actionable takeaway is that customs authorities must rigorously adhere to procedural requirements for the admissibility of evidence, especially when imposing severe penalties.

Bombay High Court Directs Modification of Onerous Bank Guarantee Condition for Provisional Release of Seized Inshell Walnuts - In conclusion, the Bombay High Court held that the imposition of a bank guarantee for 100% of the estimated differential duty and anticipated penalties/fines was inconsistent and excessive in the facts of this case. The Court ordered a modification of the condition, restricting the requirement to a bank guarantee of 50% of the estimated differential duty, with all other existing conditions remaining intact. This decision is immediately actionable, requiring customs authorities to process provisional release upon fulfillment of the revised security condition.

CESTAT Hyderabad Larger Bench Affirms Kopiko as Sugar Confectionery Under Heading 1704 9090, Rejects Coffee-Based Classification - Based on the evidence and prevailing legal principles, the CESTAT Hyderabad Larger Bench has conclusively determined that ‘Kopiko’ is to be classified under Heading 1704 9090 as sugar confectionery. The Department’s failure to discharge the burden of proof when deviating from the declared classification, the conformity with FSSAI and FSSR standards, and the product’s predominant sugar content collectively support this conclusion. The matter is now remitted to the Division Bench for determination on merits in light of this classification.

CESTAT Chennai Upholds Cenvat Credit on Capital Goods Sent Directly to Job Worker’s Premises; Clarifies Applicability of Rule 4(5)(a) CCR and Rejects Extended Limitation - The CESTAT Chennai has reaffirmed the principle that substantive entitlements under the Cenvat Credit Rules cannot be denied merely due to procedural lapses, such as direct dispatch of capital goods to a job worker without routing through the assessee’s factory. The clarificatory nature of the amendment to Rule 4(5)(a), as introduced by Notification No. 6/2015-CE, is to be read as applicable even for periods before its notification. Assessees should ensure that there is no dispute as to ownership and use of the capital goods for their manufacturing process, and that proper records are maintained for all movements. Any procedural infraction, in the absence of revenue loss or ineligibility, should not result in denial of credit.

CESTAT Chandigarh Quashes Excise Duty and Penalty on Site-Assembled RVI Elements and Aluminium Structures: Marketability and Classification Tests Fail, Extended Limitation Not Justified - In light of the above findings, the CESTAT Chandigarh set aside the impugned order, holding that the appellant is not liable to central excise duty on the RVI elements or aluminium structures, as these do not qualify as excisable goods due to their immovable and non-marketable nature. The Tribunal also found that the penalty under Rule 26 was unsustainable, and the extended period of limitation could not be invoked in the absence of suppression or intent to evade duty.

CESTAT Allahabad Rules in Favour of Assessee: Refund of Excise Duty on Fly Ash Allowed Where Paid Under Protest, Despite Prior Precedents - On the basis of the legal precedents and the facts at hand, the CESTAT Allahabad held that since the duty was paid under protest and the protest was never adjudicated by the department, the limitation period under Section 11B of the Central Excise Act, 1944, does not apply. Consequently, the appellant is entitled to refund of the excise duty paid on fly ash. The Tribunal’s ruling underscores the importance of the department’s duty to respond to protests and the legal efficacy of payment under protest in preserving the assessee’s refund rights.

CESTAT New Delhi Rejects Customs’ Allegation of Undervaluation in Import of Electronic Components: Invoice Price Maintained Due to Lack of Comparable Evidence - In light of the above analysis, the CESTAT decisively ruled in favor of the importer, holding that the department’s case was unsupported by necessary evidence as required under Section 14 of the Customs Act and the Valuation Rules. The benefit of doubt, in the absence of corroborative material, must be extended to the importer. The impugned order, which was premised solely on the supplier’s transaction price without independent verification or comparable market data, was set aside as unsustainable in law.

CESTAT Chennai Rules ‘Latch and Actuator Assembly’ to be Classified as Parts of Locks, Not Finished Locks; Sets Aside Penalty and Confiscation in Absence of Fraud - The CESTAT, Chennai, has categorically ruled that “Latch and Actuator Assembly” imported in an incomplete state, requiring substantial further processing and assembly, are to be classified as “parts of locks” under CTI 83016000, not as finished locks. The Tribunal found that the original classification and denial of preferential duty benefits were legally untenable, especially in the absence of fraud or misdeclaration. Importers in a similar position should ensure that the essential character test is strictly applied and documentary evidence regarding the state of imported goods and subsequent manufacturing is meticulously maintained. In situations where the SCN is issued beyond the permissible period, the denial of exemption or preferential benefits may not sustain. Furthermore, unless mala-fide intent or fraud is established, confiscation and penal actions are liable to be quashed.

Appeal on Substantial Questions of Law in Customs Matter Must Be Filed Before Supreme Court under Section 130E: Calcutta High Court Clarifies Proper Appellate Forum - Based on the harmonized reading of Sections 130 and 130E of the Customs Act, 1962, and in light of binding judicial precedents, the Calcutta High Court concluded that appeals involving substantial questions of law from orders of the Appellate Tribunal must be filed before the Supreme Court, not the High Court, when so specified by the statute. Parties are thus directed to approach the Supreme Court in such cases, and any appeal erroneously filed before the High Court is liable to be dismissed on grounds of lack of jurisdiction.

Tax Exemption on Specified Income of "Karnataka State Rural Livelihood Promotion Society" U/s 10(46) of Income-tax Act, 1961

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

Tax Exemption on Specified Income of "Tamil Nadu e-Governance Agency" U/s 10(46) of Income-tax Act, 1961

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

Tax Exemption on Specified Income of "Barnala Improvement Trust" 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
Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) (Amendment) Regulations, 2026
Delegation of Powers to Administrators or Lieutenant Governors of Certain Union Territories for Framing Rules under the Occupational Safety, Health and Working Conditions Code, 2020
Delegation of Powers to Administrators or Lieutenant Governors of Certain Union Territories for Framing Rules under the Occupational Safety, Health and Working Conditions Code, 2020
Appointment of Effective Date of the Occupational Safety, Health and Working Conditions Code, 2020
Appointment of Effective Date of the Industrial Relations Code, 2020
Cross Recessed Screws (Quality Control) Order, 2025 dated 27.08.2025
Amendments to Guidelines for Interest Subvention Support for Pre-and Post-Shipment Export Credit under EXPORT PROMOTION MISSION – NIRYAT PROTSAHAN.
Modalities for export of Wheat Flour and related products under HS Code 1101
Amendment in export policy of items under HS Code 1101
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.

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Tarrif/Non Tariff Notification, Circulars, SC/HC/CESTAT Cases, Acts, Rules, Regulations

Excise

Tarrif/Non Tariff Notification, Circulars, SC/HC/CESTAT Cases, Acts, Rules, Regulations

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Tarrif/Non Tariff Notification, Circulars, SC/HC/CESTAT Cases, Acts, Rules, Regulations

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STC (All Volumes), VST, VST-OL, TaxCorp (VAT) Decisions, All India VAT Circulars, Notifications

Accounting/Auditing

Accounting Policy, AS, AAS, IndAS, Opinions, Guidance Notes, Company Audit

Annual Reports

Annual Reports (IndAS and IFRS based), Segment-wise, Company-wise

Indian Rules

Direct, Indirect, Corporate, Securities, Economic, Labour, Industrial, Insurance, Forex Laws

TaxCorp Forms

Income Tax, Service Tax, Excise, Customs, FTP, FEMA & SEZ. Editable.

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Realtime coverage of Direct, Indirect and International Taxation. All important judgments not to be missed.

TaxCorp International Taxation

Comprehensive and exhaustive resource on International Taxation, Transfer Pricing, Double Taxation Tax Treaties, FDI, FEMA, BIPA, NRI. All Indian Transfer Pricing cases as well as News

TaxCorp intelligent Search Tool developed exclusively for International Taxation and Transfer Pricing Module. Search DTAA Article-wise case laws, Country-wise, topical search. Analysis of important international judgments on Transfer Pricing. Expert columns and Articles related to TP

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