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ITAT : Bangalore ITAT Rules Appeals Invalid Due to Improper Authorization During Liquidation; Directors Lack Legal Standing to Represent Company Under CIRP

ITAT : Delhi ITAT Orders Grant of Section 12A and 80G Registration to Electric Vehicle Trust—CSR-Funded Activities Deemed Charitable Despite Revenue's Commerciality Allegation

ITAT : Delhi ITAT Confirms Valid Issuance of Reassessment Notice Under Section 148 Despite Delayed Service: Active Participation by Assessee Triggers Section 292BB

ITAT : Mumbai ITAT Upholds Flexible Set-Off of Business Loss Against Long-Term Capital Gains Under Section 71(2); Validates Strategic Tax Planning Absent Any Statutory Sequence

ITAT : Delhi ITAT Rules Export Promotion Incentives as Capital Receipts; Exempts Jindal Saw from Tax under Both Normal Provisions and MAT

ITAT : Amritsar ITAT Affirms Eligibility of Section 80-IA Deduction Despite Delay in Filing Form 10CCB, Holds Filing Before Assessment Completion is Sufficient

ITAT : Mumbai ITAT Exempts Irish Reinsurer from Indian Taxation: No PE Established, Indian Subsidiary Not a Dependent Agent

ITAT : ITAT Bangalore Grants Condonation of 500+ Days’ Delay to State Nephrourology Institute; Faulty Professional Advice and COVID-19 Held Sufficient Cause

HC : Bombay High Court Allows 2900-Day Delay in Section 260A Appeal Due to Improper Service of ITAT Order to Assessee, Rules CA Not Recognised Agent for Final Orders

HC : Kerala High Court Invalidates Reassessment Under Section 147 Initiated Merely on Change of Opinion After Four Years—Emphasizes Impermissibility of Review Without Fresh Tangible Material

ITAT : Mumbai ITAT Affirms Taxpayer’s Right to Opt for Section 115BAC in Current Year Despite Prior Year Denial Due to Procedural Delay

HC : Gujarat High Court Sets Aside Faceless Assessment for Non-Compliance with SOP on Section 142(1) Notices; Mandates Fresh Assessment After Physical Notice

HC : Gujarat High Court Invalidates Reassessment Notice under Section 148 for AY 2016-17 Due to Time Bar Post Supreme Court’s Rajeev Bansal Ruling

HC : Bombay High Court Directs CIT(E) to Condone Delay in E-Verification of Audit Report for Charitable Trust, Emphasizes Justice-Oriented Approach

HC : Telangana High Court Rules Routine Business Payments to Parent Company Not 'Deemed Dividend' under Section 2(22)(e); Quashes ITAT Remand Order Relying on CBDT Circular and Judicial Precedents

ITAT : Mumbai ITAT Allows Full Depreciation on Office Premises Registered Mid-Year Despite Deferred Payment: Section 32 Revisited

ITAT : Mumbai ITAT Affirms Disallowance of Loan Interest Deduction Where Interest Charged to Related Parties Was Below Arm’s Length Rate

ITAT : Mumbai ITAT Sets Aside Section 263 Revision as Assessment Order Against Amalgamating Bank Cannot Prejudice Amalgamated Entity Post-Merger

ITAT : Interest Disallowance Under Section 40(a)(ia) Unwarranted Where Business Income Declared on Presumptive Basis Under Section 44AD: Ahmedabad ITAT

HC : Bombay High Court Invalidates BPCL Reassessment: Absence of Material Non-Disclosure Bars AO from Reopening After Four Years

ITAT : Bangalore ITAT Quashes Penalties Under Sections 271(1)(c) and 271B Against Charitable Trust After Denial of Exemption under Sections 11 and 12

ITAT : Delhi ITAT Affirms Capital Gains Tax Exemption for Mauritius-Based Essar Com on Vodafone Essar Share Sale, Finds No Evidence of Sham Arrangement

HC : Bombay High Court Invalidates Section 148 Notice: Reassessment Proceedings Held Impermissible as Mere Change of Opinion in Absence of Non-disclosure by Trust

HC : Gujarat High Court Sets Aside Revenue’s Rejection of Delay Condonation, Orders Reconsideration for Refund Claim Owing to Medical Hardship and Procedural Lapse

HC : Madras High Court Rebukes Revenue, Orders Swift Refund with Interest and Halts Recovery Against Greaves Electric After 20% Tax Deposit Compliance

ITAT : Visakhapatnam ITAT Invalidates Assessment for Want of Proper 153D Approval, Finds JCIT’s Approval Mechanical and Void Ab Initio

HC : Madras High Court Sets Aside CIT(A) Order, Condones 7-Month Delay in Appeal Owing to Communication Lapse via Outdated Auditor Email

ITAT : Bangalore ITAT Rules: Sale of Embedded Software and Hardware Support Not Taxable as Royalty or FTS under India-Ireland DTAA

ITAT : Mumbai ITAT Upholds Tata Sons’ Right to Section 115BBA Benefit Despite Dispute on Form 10-IC E-Filing Authentication

HC : Madras High Court Voids Section 148A Notices Issued by Jurisdictional Officer, Mandates Strict Adherence to Faceless Scheme

CESTAT : CESTAT New Delhi Upholds Service Tax Demand on Works Contract for Tissue Paper Plant Setup

CESTAT : CESTAT Allahabad Overturns Service Tax Demand Due to Insufficient Evidence on ‘Real Estate Agent’ Claims

CESTAT : Refund Claim for Service Tax on Vehicle Rentals Denied as Assessment Not Challenged

CESTAT : CESTAT Rules Out Service Tax on Compensation for Lost Drilling Equipment in Landmark Ruling

HC : Bombay High Court Sets Aside ₹70.57 Crore GST Demand for Failure to Apply Mind; Orders De Novo Adjudication with Emphasis on Natural Justice

HC : Karnataka High Court Invalidates Dismissal of Appeal Due to Exclusion of Time Error; Criticizes Parallel Proceedings by Tax Authorities

HC : Madhya Pradesh High Court Holds Main Contractor Liable for VAT on Sub-Contractor’s Turnover in Absence of Form-3 Declaration: Section 7 of MP VAT Act Takes Precedence Over L&T SC Ruling

CESTAT : CESTAT Delhi Grants Exemption from BCD, CVD, and Prescribes 5% IGST on GenXperts® HIV-VL Load Test Kits, Affirms Broad Interpretation of Exemption for Life-Saving Diagnostics

CESTAT : CESTAT Chennai Affirms Service Tax Liability on Daimler India for Seconded Employees; Social Security Expenses Not Reimbursable

HC : Delhi High Court Orders Immediate Release of Detained Gold Jewellery, Affirms Exemption for Personal Effects under Baggage Rules

AAR : Kerala AAR Rules No GST on LWA Fees by Directorate of Medical Education; GST Applicable on Fees for Inspection Services to Private Medical Institutions

HC : Proactive Participation Essential: Allahabad High Court Upholds Customs Duty Redetermination, Rejects Natural Justice Violation Plea for Inaction on Show Cause Notice

HC : Madhya Pradesh High Court Rules Pending Tax Demand Under Litigation to be Treated as ‘Disputed Amount’ for Amnesty Settlement: Clarifies Treatment of C-Form Related Demands

HC : Gujarat AAR Affirms GST Exemption on Pre-GST Interest and Arbitration Costs in Goa Shipyard Ltd. Contract Dispute

HC : Delhi High Court Upholds Bail in ₹29 Crore ITC Fraud Case: Stresses High Threshold for Bail Cancellation Without Substantial New Evidence

HC : Himachal Pradesh High Court Quashes Penalty under Section 130 for E-Way Bill Lapse Absent Mens Rea, Citing Lack of Evidence for Tax Evasion Intent

HC : Madras High Court Nullifies ITC Denial Against Trader Based on Baseless Deeming of Hindustan Unilever Limited as Non-Existent

HC : Delhi High Court Upholds CESTAT Order: Time-Barred SCN Blocks Service Tax Demand on ‘Lease Internet Broadband Services’ to Exempt Entities

CESTAT : CESTAT Delhi Sets Aside Service Tax Demand on Internet Services: Absence of Evidence for Intent to Evade Tax Bars Extended Limitation

AAR : Tamil Nadu AAAR Remands Tapioca Flour GST Classification to AAR for Re-examination Due to Incomplete Manufacturing Details

HC : Gujarat High Court Limits Penalty for E-Way Bill Lapse on Zero-Rated Export Supply, Citing No Tax Payable under Section 129(1)(a) of CGST Act

HC : Madras High Court Orders Compensation to Hotel for Prolonged Customs Litigation Over Capital Goods Classification Despite Settled Legal Position

AAR : Kerala AAR Rules 18% GST on Plastic ‘Rooter Trainer Cups’; Classifies under HSN 39269099 as "Other Articles of Plastic"

AAR : Kerala AAR Rules GST Exemption for Bulk Supply of Unsealed Purified Drinking Water via Tanker Lorries to Government and Private Customers

AAR : Kerala AAR Rules 18% GST Leviable on Cardamom Auctioneers’ Commission, Rejects Claim for Exemption Applicable to Commission Agents

AAR : Kerala AAR Holds GST Payable by Digital Platforms on Yoga Course Fees Unless Strict ‘Pure Agent’ Conditions Met under Rule 33

HC : Allahabad High Court Upholds Validity of GST Notice Served via Registered E-Mail and Mobile: Dismisses Writ Petition Challenging Electronic Service under Section 169, CGST Act

CESTAT : CESTAT Mumbai Rules in Favor of Air Travel Agent: Service Tax Demand Drops for GDS-Related Charges

CESTAT : CESTAT Allahabad Rules No Service Tax on Invoiced Amounts Pre-Completion of Service in Builder-Customer Arrangement

CESTAT : CESTAT Chandigarh Rejects Revenue's Appeal, Upholds Refund Claims of 100% EOU, Reinforcing Authority's Obligations

Appellate Tribunal Upholds Fairness in FEMA Penalty: No Enhancement for Technical Error in FC-GPR Submission - Based on the Tribunal’s reasoning and the evidence on record, it is clear that in cases involving technical breaches of FEMA provisions—where the contravention does not stem from deliberate non-compliance and there is a clear intention to adhere to regulatory requirements—the penalty should not be enhanced beyond what is proportionate to the actual error. The decision underscores the need for fairness and proportionality in adjudicating FEMA violations, particularly when the assessees promptly acknowledge and rectify their errors.

Delhi High Court Rules: No Tax on Foreign Repair & Maintenance Services Lacking Technology Transfer under Article 12(4) India-USA DTAA - The Delhi High Court’s decision establishes that payments for repair and maintenance services and reimbursements, not involving a transfer of technical knowledge, skill, or know-how as defined under Article 12(4) of the India-USA DTAA, are not taxable as FIS in India. Taxpayers must carefully examine the nature of services rendered and the contractual obligations to determine taxability under the DTAA, ensuring that only those services that “make available” technical knowledge to the Indian recipient are subject to tax as FIS.

Income Tax - Sections 37, 92CA, 142, 143 - ITAT Delhi Upholds Deductibility of Club Expenses for Key Managerial Personnel as Business Expenditure under Section 37—Transfer Pricing Issues Rendered Infructuous after APA - On a considered appraisal of the facts and applicable law, the ITAT Delhi held that club expenses incurred for the welfare of key managerial personnel are allowable as business expenditure under Section 37(1) of the Income Tax Act, 1961. The Tribunal directed that the disallowance be deleted and confirmed the application of this principle to other relevant assessment years. Taxpayers should ensure that similar expenses are properly documented as being for the business purpose to avail deduction under Section 37.

Income tax – Sections 195, 201 - ITAT Delhi Rules: No Withholding Tax on Pure Reimbursement of Client and IT Expenses to Foreign Parent—Assessee Not in Default - Following settled judicial precedents and consistent factual findings, the ITAT Delhi has reaffirmed that pure reimbursements of actual costs—whether for client-related OPEs or centralized IT maintenance—paid by an Indian subsidiary to its foreign parent, without any markup or profit element, are not chargeable to tax in India and therefore do not require withholding under Section 195. This conclusion is specifically rooted in the non-taxability of such reimbursements as FTS or royalty, as per Article 12(4) of the India-US DTAA and the provisions of the Income Tax Act.

ITAT Delhi Upholds Aggregation under TNMM for Closely Linked International Transactions in YKK India’s Transfer Pricing Case - Based on the facts and legal framework, the ITAT held that where multiple international transactions are closely linked and arise from a unified agreement or business arrangement, they should be aggregated and benchmarked as a single composite transaction under the TNMM for the purpose of determining the ALP. The Tribunal found that the TPO’s approach of separate benchmarking was unwarranted in this context and restored the validity of the entity-level TNMM analysis provided by the assessee. Actionable takeaway: Assessees with closely linked international transactions should ensure robust documentation demonstrating the integrated nature of such transactions to support aggregation under the TNMM.

Income Tax - Sections 143(3), 144C(13) - ITAT Mumbai Orders Fresh Adjudication on Reimbursement of Expenses: Failure to Furnish Back-to-Back Evidence Does Not Preclude Opportunity for Substantiation Under Transfer Pricing Provisions - In light of the above, the ITAT’s decision underlines that the TPO and DRP are required to provide a fair opportunity to the assessee to substantiate the genuineness, necessity, and benefit of reimbursed expenses in international transactions. Summary rejection without comprehensive consideration of the assessee’s submissions and documents is not sustainable. The matter has been remitted to the TPO for fresh consideration, with explicit instructions to evaluate the assessee’s evidence in a fair and just manner.

Income Tax - Sections 37(1), 92CA, 263 - ITAT Mumbai Quashes PCIT’s Section 263 Revision: Proper Scrutiny of Employee Stock Option Reimbursements and APA Coverage Found - On the basis of the facts, legal provisions, and judicial precedents, the Tribunal determined that the prerequisites for invoking revisionary jurisdiction under section 263—namely, that the assessment order must be both erroneous and prejudicial to the interests of the Revenue—were not met in this case. The AO had duly examined the ESPP reimbursement transaction, with appropriate disclosures made by the assessee and proper scrutiny by both the AO and TPO. The existence of a binding APA covering the ESPP reimbursement further fortified the position that the assessment order was not erroneous. Consequently, the Tribunal annulled the PCIT’s revisionary order and allowed the assessee’s appeal.

Income tax - Sections 94B - ITAT Mumbai Rules Section 94B Cannot Benchmark ALP for Interest on NCDs Paid to AEs: Adjustment Set Aside - The ITAT’s decision establishes that Section 94B, which restricts the deductibility of interest paid to AEs, cannot be used as a basis for determining the arm’s length price under the “other method” of Rule 10AB. The “other method” requires benchmarking with prices charged or paid in similar transactions between non-AEs, which Section 94B does not contemplate. Therefore, any adjustment relying on Section 94B for benchmarking interest paid to AEs is legally untenable, and such additions must be set aside.

Income tax – Sections 92BA, 271G - No Penalty Under Section 271G Where Assessee Furnished All Available Details and No Transfer Pricing Adjustment Was Made on Specified Domestic Transactions - In absence of any addition or transfer pricing adjustment, and where the assessee has produced all available documents substantiating the genuineness and pricing of specified domestic transactions, penalty under Section 271G cannot be automatically levied merely for failure to provide documentation in the precise manner or format sought by the AO. The actionable takeaway is that assessees should ensure all available material evidence supporting the arm’s length nature of related party transactions is submitted during assessment proceedings, thereby mitigating exposure to penalty even if technical documentation requirements under Rule 10D are not fully met.

Delhi High Court Rules Settlement Commission's Immunity Under Customs Act Does Not Extend to FERA Prosecution for Overdue Export Realisations - The Delhi High Court held that the Settlement Commission’s order under the Customs Act does not grant, and could not legally grant, immunity to the petitioner for offences punishable under Section 56 of FERA. The petitioner’s application for discharge from FERA prosecution was therefore rightly dismissed by the trial court. The petition before the High Court was found to be devoid of merit and was dismissed accordingly.

Madras High Court Upholds Limited Scope of Judicial Review at Opinion Formation Stage under FEMA Rule 4(3); Directs Disclosure of Complete Investigation Records at Defence Stage - Based on the consistent jurisprudence of the Madras High Court, the decision clarifies that judicial interference at the opinion formation stage under Rule 4(3) of the FEMA Rules is circumscribed. Courts will not scrutinize the sufficiency or correctness of the reasons for forming an opinion to proceed, provided there appears to be application of mind. The noticee’s entitlement to a full set of investigation documents, including non-RUDs, arises only at the defence stage (Rule 4(4)), not at the preliminary opinion stage. Authorities are bound to provide all such documents once the matter progresses to adjudication.

Income Tax - Sections 143[3], 144C[13] - ITAT Ahmedabad Rules Health Ecotox Services Non-Taxable as FTS: “Make Available” Clause Not Satisfied in Shell Employee Medical Data Case - The ITAT’s ruling establishes that unless the “make available” clause under Article 12 of the India-Netherlands DTAA is explicitly satisfied—i.e., unless the recipient is equipped to utilize the technical knowledge or skill independently—the receipt for such services cannot be taxed as Fees for Technical Services. Taxpayers rendering similar group services should ensure that the actual nature of the services and the manner of cost allocation are appropriately documented to substantiate that no technical knowledge or know-how is “made available” to the recipient.

Income Tax - Sections50C, 56(2)(x), 144C, 147, 148A - ITAT Mumbai: AO Must Mandatorily Refer Property Valuation to DVO When Stamp Duty Value is Disputed—Unjustified Addition under Section 56(2)(x) Deleted - In summary, the ITAT Mumbai unequivocally held that when an assessee disputes the stamp duty valuation and submits credible evidence—such as a registered valuer’s report or previous departmental valuations—the Assessing Officer is statutorily bound, per the third proviso to Section 56(2)(x) read with Section 50C(2), to refer the matter to the Departmental Valuation Officer. Failure to do so renders any addition based solely on stamp duty valuation unsustainable. As the purchase price was above the indexed value, the addition was deleted and the assessee’s appeal was allowed.

ITAT Hyderabad Upholds RBI Benchmark for ECB Interest and Directs 90-Day Credit Period for AE Receivables; Adjusts Imputation of Interest on Delayed Receivables to Actual Delay - The ITAT Hyderabad Bench has clarified that interest on ECBs paid to AEs is to be benchmarked in line with RBI circulars, and any deviation by the TPO from these prescribed limits is unsustainable, particularly where a consistent approach has been followed in earlier years. In respect of trade receivables, while such balances constitute international transactions post-2012, imputation of interest arises only where an AE enjoys a longer credit period than non-AEs. The credit period allowed under an APA can be adopted, and benchmarking of interest must employ USD LIBOR plus 200 bps, not domestic Indian rates. Interest must be computed only for the period exceeding the allowed credit period, based on actual delay.

Income Tax - Sections 144C(13), 144B - ITAT Chandigarh Deletes Disallowance of Foreign Travel Expenses Included in APA Cost Base and Marked Up to AE - The decision reaffirms that expenses forming part of the cost base under an APA, and recovered from the AE with the agreed markup, must be accepted as operating expenses for transfer pricing and tax deduction purposes. The AO cannot disallow such expenses on grounds already settled by the APA and accepted in the transfer pricing order, unless there is a demonstrable deviation from the APA’s terms or evidence of non-business expenditure. Taxpayers with similar APAs should ensure full and accurate documentation of expenses included in their cost bases, and can rely on this precedent to challenge arbitrary disallowances by the AO.

ITAT Mumbai Rules on Clubbing of Minimal Alteration Activity: Segmental Allocation and TNMM Application Clarified in Distribution of Plastic Products - The ITAT Mumbai held that for accurate transfer pricing analysis, especially under TNMM, both the revenues and costs of each segment must be appropriately allocated and matched to the actual activities performed. The Tribunal directed that the minimal alteration activity, given its functional profile, should be grouped with manufacturing, not trading, for transfer pricing purposes. The order further mandated that, when reliable, traditional methods like CUP should be prioritized, and TNMM should only be employed when others are inapplicable, with careful adjustments for FAR differences.

ITAT Mumbai: Exclusion of Non-Segmented and Functionally Distinct Comparables Upheld in Captive ITES Transfer Pricing Dispute - By affirming the exclusion of comparables lacking segmental data, exceeding permissible RPT thresholds, or engaging in functionally different activities, the ITAT Mumbai has fortified the jurisprudence that only truly comparable entities should be used in transfer pricing analyses. The Tribunal’s directive to delete the transfer pricing adjustments, based on sound application of Section 92C, Rule 10B, and established case law, provides clear actionable guidance for both taxpayers and tax authorities.

ITAT Delhi Rules KPOs Functionally Distinct from BPOs; Extraordinary Events Mandate Exclusion of Affected Comparables in Transfer Pricing - The ITAT Delhi’s decision mandates that transfer pricing comparability analysis must be rooted in a detailed, functional examination, strictly segregating KPOs from BPOs due to fundamental differences in the nature and value of services. Additionally, entities affected by extraordinary events such as amalgamations are to be excluded from the set of comparables to ensure an accurate and fair ALP determination. Entities engaged in low-end ITeS/BPO activities must ensure that comparables selected for benchmarking are functionally analogous and unaffected by contemporaneous corporate events.

Delhi Appellate Tribunal Slashes Penalty in Significant FEMA Violation for Misdeclaration and Undervaluation of Plastic Granule Imports, Upholds Confiscation of Foreign Exchange - The Tribunal’s order affirms that misdeclaration and undervaluation of imports, coupled with unauthorized foreign exchange remittance, constitute a clear contravention of FEMA, 1999. While the evidentiary standard of preponderance of probabilities suffices for establishing liability, penalties must be proportionate to the facts and circumstances of each case. The Tribunal’s reduction of the penalty under Section 3(d) reflects this principle, while upholding penalties and confiscations for non-surrender and unauthorized possession of foreign currency. Assessees must ensure accurate documentation and timely compliance with surrender requirements for foreign currency to avoid similar consequences.

Bombay High Court Upholds Penalty for FERA Violations by Indian Residents Abroad: Intention to Stay Indefinitely Decisive - The Bombay High Court has unequivocally upheld the imposition of penalties for FERA violations in cases where individuals, though initially residents of India, have demonstrated through their conduct and circumstances an intention to remain abroad for an indefinite period. The decision underscores the importance of establishing clear residency status and obtaining necessary permissions from regulatory authorities before engaging in financial transactions involving Indian assets. Assessees must be mindful that the burden of proof for requisite permissions under FERA lies squarely on them and that mere absence from India on a student visa, coupled with actions indicative of permanent relocation, can alter their regulatory obligations.

Sections 425, 166 of the Companies Act, 2013 - NCLT Bengaluru Rejects Contempt Plea Against Directors for Running Pre-Existing Jewellery Business—No Wilful Breach of Status Quo Order Found - The NCLT concluded that the complainants failed to establish any violation—much less a wilful or deliberate disobedience—of the Tribunal’s interim status quo order. Since the contemnors’ business activities predated the order and did not constitute a new competing business, the essential element of contempt, namely wilful disobedience, was not satisfied. Accordingly, the contempt petition was found devoid of merit and was dismissed.

Bombay High Court Affirms Winding Up: Acquittal in Cheque Dishonour Case Under NI Act No Defence Against Admitted Debt - The Bombay High Court’s decision underscores that a company’s liability, once admitted through clear documentary evidence such as a demand promissory note and uncontroverted statements of account, cannot be evaded by raising new grounds or technicalities after the initiation of winding up proceedings. An acquittal in criminal proceedings for cheque dishonour under Section 139 of the NI Act does not absolve civil liability, and findings from such proceedings cannot be imported into civil debt disputes. Companies must raise genuine and timely disputes if they wish to contest liability; afterthought objections will not suffice to resist winding up.

Calcutta High Court Holds Auction Purchaser Not Liable for Undisclosed Pre-Sale Municipal Tax Arrears; Corporation's Failure to Disclose Charges Fatal - On the basis of the above findings, the Calcutta High Court directed that the respondent authorities cannot lawfully demand payment of outstanding property tax, penalty, or interest for any period prior to the auction from the petitioner. Any such claim, not previously declared and not forming part of the auction conditions, cannot be enforced against the auction purchaser. The Court’s directions are actionable in that they require the municipal authorities to process the petitioner’s application for mutation without insisting on clearance of undisclosed pre-auction dues.

Sections 97, 96 of the Companies Act, 2013 - NCLT Rules: Mere Misrepresentation to RoC for AGM Extension Not a Valid Ground for Invoking Section 97—Shareholders’ Petition Dismissed Absent Proof of Fraud - The Tribunal concluded that, in the absence of proven fraud or ill-motive by the respondents, and given that the AGM was held within the period permitted by the RoC, the petitioners could not invoke section 97 merely on the basis of alleged concealment or misrepresentation. Accordingly, the petition was dismissed, reaffirming that the appropriate course of action for such grievances is through statutory remedies provided elsewhere in the Companies Act.

Delhi High Court Further Reduces Compounding Fine for Ex-Directors Not Liable for Non-Filing of Financial Statements - The Delhi High Court’s decision demonstrates a judicious application of the principles of proportionality and fairness while exercising its discretion under the Companies Act, 1956. The Court has made it clear that directors who have resigned prior to the commission of the offence should not bear the brunt of statutory penalties meant for ongoing officers. The actionable takeaway is that petitioners in similar circumstances should ensure that their resignations are properly documented and communicated to the ROC, as this can form a crucial defense in penalty proceedings for non-compliance occurring after their departure.

Sections 244, 241, of the Companies Act, 2013 - NCLT Kolkata Dismisses Oppression Petition for Lack of Waiver under Section 244 Despite Alleged Fraudulent Shareholding Reduction - In summary, the NCLT Kolkata held that where petitioners lack the requisite shareholding under section 244 on the date of filing a petition under section 241, they must, as a matter of law, file an application seeking waiver of the thresholds prescribed. Failure to do so will result in summary dismissal of the petition on maintainability grounds, regardless of the merits or the gravity of the allegations. The Tribunal clarified that the process for seeking a waiver is not an empty formality but a substantive prerequisite for the exercise of its jurisdiction.

SEBI Imposes ₹25 Lakh Penalty on BSE for Preferential Disclosure of Unpublished Price Sensitive Information and Lax Controls under SECC Regulations - Based on the findings and legal framework, SEBI concluded that BSE had violated its obligations under Regulation 39(3) of the SECC Regulations, 2018, and Section 15HB of the SEBI Act, 1992, by facilitating preferential access to UPSI and failing to enforce adequate internal compliance controls. An actionable takeaway for stock exchanges is the urgent necessity to review and reinforce their information dissemination protocols to ensure simultaneous and unrestricted access to all market participants and to conduct regular audits of their compliance mechanisms.

NCLAT Chennai: Dismissal of Contempt Proceedings for Non-Prosecution Set Aside; Delay in Restoration Application Condoned in Share Transfer Dispute - The NCLAT decision makes it clear that contempt proceedings before Tribunals such as the NCLT cannot be dismissed for want of prosecution, as their primary function is to maintain the authority and compliance with the Tribunal’s orders. Even if the original applicant does not pursue the matter, the Tribunal is duty-bound to adjudicate contempt proceedings on their merits. Additionally, where the delay in seeking restoration is reasonably explained and supported by documentary evidence, such delay should be condoned to further the ends of justice.

Sections 241, 242 of the Companies Act, 2013 - NCLT Kochi Dismisses Withdrawal of Oppression Petition Due to Forged Signatures and Liquidator’s Lack of Authority - The NCLT, Kochi Bench, concluded that (i) a withdrawal application for a company petition must be signed by the same person who filed the original petition or by someone duly authorised thereafter in accordance with law; (ii) a liquidator, once his appointment ceases due to termination of liquidation, cannot act on behalf of the company unless empowered by the appointing authority; and (iii) attempts to withdraw petitions with forged signatures or in contravention of due process will be treated as acts of fraud and abuse of judicial process, warranting dismissal of such applications.

SEBI Allows BGDL Share Trading to Resume with Financial Disclosure Caveat; Preferential Allottees Remain Barred Amid Ongoing PFUTP Probe - In view of the above, SEBI’s considered approach allows the resumption of trading in BGDL shares, subject to the immediate dissemination of critical financial information to the market. However, the core restrictions against BGDL’s management, compliance officer, and the 41 allottees remain unaltered, pending further investigation and final adjudication. Market participants and listed companies must take note of the stringent consequences of engaging in fraudulent preferential allotment and issuing false disclosures. It is incumbent on companies to maintain full transparency and regulatory compliance to avoid severe market restrictions and reputational harm.

Section 241 of the Companies Act, 2013 - NCLT Rejects Oppression Claims: Share Allotment to Petitioner and Procedural Lapses in Director Appointment Not Sufficient for Relief - The National Company Law Tribunal, Chennai, held that, except for the deficiencies in documentation concerning the appointment of new directors, the petitioner failed to establish any substantial case of oppression or mismanagement. The claims regarding share dilution, removal from the board, and related party transactions were found unsubstantiated. Accordingly, the petition was dismissed.

SEBI Grants Open Offer Exemption to Government in Telecom Debt-to-Equity Conversion Amid Financial Distress - On thorough consideration of the facts, SEBI held that the exemption sought by GoI from the open offer requirements under Regulation 3(1) was justified. The acquisition arose from a government-initiated relief package and was in the nature of a debt restructuring, falling within the purview of Regulation 10(1)(i). Accordingly, SEBI allowed the exemption, enabling GoI to acquire the additional equity without triggering mandatory open offer obligations.

SAT Upholds Strict SEBI Interim Measures Against Appellants in Complex Front-Running Case Involving Joint Operations with Notorious Market Manipulator - The Tribunal’s decision affirms SEBI’s authority to impose stringent interim measures in cases involving egregious violations of securities laws, particularly where there is a demonstrable risk of dissipation of ill-gotten gains and a history of association with known market manipulators. Appellants in similar situations should not expect leniency in the quantum of interim deposit, especially where the facts indicate deliberate and repeated contraventions in concert with individuals long barred from the securities market.

BSE Stock Options: SEBI Imposes Penalty for Reversal Trades Creating Artificial Volumes—Non-Response to Show Cause Notice Deemed Admission of Guilt - In the present matter, SEBI’s decision reflects a strict approach towards non-genuine reversal trades that create artificial market volumes. The failure of the noticee to engage with the adjudication proceedings—by not replying to the show cause notice or attending the hearing—was treated as an unqualified admission of guilt. Consequently, SEBI exercised its powers under Section 15HA of the SEBI Act to levy a penalty, underscoring the importance of responding to regulatory notices and maintaining genuine trading practices.

Sections 210, 149 of the Companies Act, 2013 - NCLAT Clarifies Right of Independent Directors to Be Heard Before Interim Orders: Ad-Interim Directions Set Aside Pending Objections Under Companies Act - Based on the above analysis, it is actionable that any interim or ad-interim order passed by the Tribunal or Court in the context of company investigations can be challenged by the aggrieved party upon appearance. The Tribunal is under a mandatory obligation to provide a fair opportunity to be heard before confirming or modifying such orders. Appellants or respondents against whom ex parte directions have been issued must proactively file their objections and seek an effective hearing to protect their rights.

Sections 252, 248 of the Companies Act, 2013 - NCLT Orders Restoration of Company’s Name Struck Off for Technical Non-Compliance with Filing of Form 20A Despite Evidence of Commencement of Business and Share Subscription - The order clarifies that when a company has, in substance, complied with the requirements of Section 10A by receiving share subscription and commencing business, a technical lapse in filing Form 20A does not justify striking off under Section 248(1)(a). Restoration should be granted upon proof of such compliance and an undertaking to complete procedural formalities. Companies in similar situations should promptly regularize such filings and maintain thorough evidence of business activities to support restoration applications.

SAT Clarifies Scope of Set Aside Orders: SEBI Permitted to Reconsider Matter with Additional Documentation Following Review Application - In view of the uncontested review application and in the interest of procedural clarity, the SAT expressly set aside the directions in both impugned orders. The matter is remitted to SEBI for reconsideration, with liberty granted to SEBI to adduce additional documents or materials relevant to the issues previously under appeal.

MP High Court Bars Retrospective Application of Section 447 Companies Act, 2013 in Quashing Criminal Complaint: Abuse of Process Cited - Based on the above analysis, the Madhya Pradesh High Court decisively quashed the criminal complaints, holding that Section 447 of the Companies Act, 2013 cannot be invoked retrospectively to prosecute acts which occurred prior to its introduction. The Court’s actionable direction is that unless the alleged offence under Section 447 post-dates its enforcement, continuation of criminal proceedings is legally unsustainable and constitutes abuse of process.

Income Tax Department’s Bid for Restoration of Struck-Off Company Fails: NCLT Allahabad Rules Department Not ‘Creditor’ in Absence of Outstanding Demand - Based on the facts and legal position, the Tribunal dismissed the application of the Income Tax Department. The ruling clearly establishes that government authorities, such as the Income Tax Department, cannot be regarded as creditors eligible to seek restoration of a struck-off company under section 252(3) unless there is a clear, outstanding demand or liability owed by the company at the relevant time. Any application for restoration in the absence of such a demand is not maintainable.

Anticipatory Bail Granted by Delhi High Court in Family Share Transfer Dispute Amid Lack of Evidence and Delay in FIR - Having thoroughly scrutinized the FIR, the status report, and the arguments advanced by both parties, the Court found no justification for custodial interrogation in the absence of any pending material evidence or risk of tampering. The applicants were granted anticipatory bail on the condition that they furnish personal bonds of Rs. 1,00,000/- each with two sureties of the same amount, and comply with all investigative requirements as directed by the IO/SHO.

SEBI Cancels AIF Registration Due to Sponsor's Disqualification Under ‘Fit and Proper Person’ Criteria: KSBL’s Failure to Divest Holding in KCL Proves Fatal - SEBI’s decision unequivocally affirms that the ‘fit and proper person’ requirement is a continuing obligation for all AIFs, their sponsors, managers, and controlling entities. Where any person holding a controlling stake becomes disqualified, immediate remedial action is a regulatory necessity. Failure to divest such disqualified interests within the regulatory timeline will result in the cancellation of registration and cessation of business as an AIF.

NCLT Chennai Imposes Minimum Compounding Fee on Suspended Directors for Delayed AGMs Amid Liquidation Proceedings - In light of the facts that the company was admitted to CIRP and is currently under liquidation, and that the petitioners were suspended from their directorial functions, the Tribunal exercised its discretion to impose only the minimum compounding fee for the delayed holding of AGMs. This approach aligns with the principles of fairness and justice, considering the diminished role and control of the suspended directors during the relevant period.

Bombay High Court Upholds Winding Up of Company for Failing to Refund Security Deposit—Defences Deemed Malafide - On the basis of the established facts and prevailing law, the Bombay High Court ruled that the Appellant-Company was liable to refund the security deposit along with interest, and found no bona fide dispute existed regarding the debt. As the defenses raised were neither plausible nor genuine, the company’s inability to pay its admitted liabilities justified the winding up order under Section 433(e) of the Companies Act, 1956. The appeal was dismissed, affirming the approach and findings of the Company Judge.

Preference Shareholders Denied Right to Initiate Proceedings under Section 55(3) of Companies Act, 2013: NCLAT Chennai Upholds NCLT Order - Given the settled legal position articulated by the NCLAT Principal Bench, the NCLAT Chennai concluded that appeals brought forth by preference shareholders—solely in their capacity as such—are not maintainable under Section 421. The Tribunal affirmed that preference shareholders do not possess enforceable statutory rights under Section 55(3) sufficient to confer them the status of an aggrieved party. Accordingly, the appeal was dismissed, and the NCLT order was upheld.

Gujarat High Court Rules: No Automatic Right of Grandson in Grandfather’s Property Inherited After 1956; Partition Claims Limited to Valid Coparcenary Property - The Gujarat High Court’s decision provides unambiguous guidance on the inheritance rights in Hindu families post-1956. The ruling establishes that a grandson cannot claim partition in the property of his grandfather if the property was inherited by the father as his self-acquired property following the commencement of the Hindu Succession Act, 1956. Claims for partition or cancellation of sale deeds after an inordinate delay are not sustainable, being barred by limitation statutes. Assessees must accordingly evaluate the nature and timing of succession to determine the rights of coparceners and the limitations period for legal action.

Section 55 of the Companies Act, 2013 - NCLAT Confirms: Individual Preference Shareholder Cannot Enforce Redemption Rights Under Section 55(3) of Companies Act, 2013 - The NCLAT categorically held that the appellant, being merely a preference shareholder, does not possess any individually enforceable statutory right under Section 55(3) of the Companies Act, 2013, to compel redemption of preference shares. Accordingly, the proceedings at the instance of such a shareholder are not maintainable before the NCLT. This decision reinforces the principle that enforcement of rights under Section 55(3) requires a statutory or contractual basis, neither of which was established in the present case.

Bombay High Court Upholds CLB’s Findings on Shareholder Rights and Board Representation: Aasia Properties Denied Nominee Director Post Amidst Dispute Over Share Transfer Dates and Pre-emption Rights - Based on the above analysis, the High Court held as follows:

The determination that Aasia Properties became a 1/3rd shareholder on 28.01.1983, based on share certificates, stands affirmed.
The CLB’s findings on the absence of fraud or record manipulation are upheld.
The interpretation of Article 38, denying pre-emption rights to Aasia Properties for the 1983 transfer, is correct.
The CLB’s legal error regarding “automatic” winding up upon oppression is set aside.
The direction granting nomination of a non-functional director to Aasia Properties is set aside as unsupported by law or fact.
The petition is not barred by limitation.
The CLB’s order is, therefore, set aside to the limited extent of the nominee director direction, and the appeal is disposed of in these terms.

NCLAT Upholds Eligibility Bar Under Section 43(3) of LLP Act, Yet Leaves Door Open for Suo Moto Action by NCLT - The NCLAT has reaffirmed the mandatory nature of the eligibility threshold stipulated under Section 43(3) of the LLP Act, 2008, ruling out the possibility of seeking a waiver by reference to the Companies Act, 2013, in the absence of express incorporation. However, the Tribunal has left open the possibility for the NCLT to exercise suo moto powers under Section 43(1)(a) if a future petition contains adequate material to justify such action. This conclusion calls for strict adherence to the statutory framework of the LLP Act, while simultaneously recognizing the Tribunal’s inherent powers to act in appropriate circumstances when justice so demands.

Kerala High Court Rules in Favour of Auction Buyer: Official Liquidator Liable for Material Misdescription Despite "As Is Where Is" Clause - The Kerala High Court held that the sale in question was fundamentally flawed due to misdescription and the presence of latent defects not discoverable by reasonable inspection. The inclusion of the "as is where is and whatever there is" clause and reliance on the caveat emptor principle did not absolve the Official Liquidator of liability. The applicant was thus entitled to a refund of the amounts deposited towards the sale consideration.

Bombay High Court Upholds Pre-Winding Up Call Option Enforcement, Validates Transfer of 2,34,000 Shares Despite Liquidation Proceedings - Based on the above analysis, the Bombay High Court held that the sale and transfer of 2,34,000 equity shares in favour of the Applicants, executed pursuant to the MOU dated March 1, 2009, and its amendment dated December 23, 2011, stands validated and ratified under Section 536(2) of the Companies Act, 1956. The transaction was found to be completed, irrevocable, and bona fide prior to the commencement of winding up proceedings, and thus, immune from being set aside by the Official Liquidator.

CESTAT Mumbai Rules: No Interest on Refunds Sanctioned Within Statutory Period—Strict Adherence to Section 11B and 11BB of Central Excise Act Upheld - On the facts and law, where a refund of duty is sanctioned within the statutory period of three months from the date of the refund application under Section 11B of the Central Excise Act, 1944, no interest is payable under Section 11BB. The Tribunal cannot grant interest or compensation for any period prior to the expiry of this statutory timeline, regardless of whether the duty is deemed to have been paid during investigation or otherwise, unless there is an inordinate delay attributable to the revenue authorities.

CESTAT Bangalore Upholds Excise Exemption for Precast Concrete Girders Manufactured at Off-Site BMRCL-Approved Facility - Based on the findings, the Tribunal authoritatively held that the approval letter dated 18.08.2009 issued by BMRCL, in response to the Appellant’s communication, forms a valid and integral part of the contract. Thus, the Appellants are entitled to claim the benefit of the relevant exemption Notifications for goods manufactured at the approved off-site facility, even though the facility was not explicitly mentioned in the initial contract document.

CESTAT Allahabad Rules: Interest on Pre-Deposit Refunds Payable Only After Three Months from Appellate Order Communication, Not from Date of Deposit - Based on the current decision, taxpayers are entitled to interest on the refund of pre-deposit amounts only after the expiry of three months from the date of communication of the appellate order, consistent with Section 11BB and Section 35FF of the Central Excise Act, 1944. Interest cannot be claimed from the date of original deposit unless specifically provided by statute. Taxpayers should ensure timely filing of refund applications and monitor the three-month statutory period to claim interest as per law.

CESTAT Kolkata Sets Aside CENVAT Credit Recovery: Proceedings Quashed Due to Incomplete Evidence and Breach of Natural Justice - In summary, the CESTAT Kolkata quashed the proceedings against the appellant, holding that the Department’s case suffered from fatal evidentiary and procedural lapses. The appellant’s documentary evidence was neither challenged nor disproved by the Department. Moreover, the exclusion of the vendor from the proceedings and the lack of valid evidence from vehicle owners rendered the Department’s case unsustainable. The demand for CENVAT credit reversal and related penalties was set aside both on merits and on account of limitation.

Secondary Electronic Evidence Inadmissible Without Section 138C Certificate: CESTAT Quashes Redetermination of Transaction Value and Demand Under Customs Act - The CESTAT’s decision underscores the necessity for strict adherence to statutory requirements prescribed for the admissibility of electronic evidence in customs proceedings. In the absence of a certificate under section 138C of the Customs Act accompanying printouts from secondary electronic sources, such evidence cannot be relied upon for reassessment of transaction value, or for imposition of duty, interest, or penalties. The order of the Principal Commissioner based on such inadmissible evidence was thus quashed, and all demands and penalties set aside.

CESTAT Rules Imported Numismatic Collection as Personal Baggage, Confiscation and Penalty Set Aside Due to Lack of Evidence of Antiquity or Commercial Nature - On the basis of a thorough analysis of the facts, applicable notifications, and absence of evidence, the CESTAT Mumbai set aside the confiscation and penalty order, recognizing the impugned coins and notes as personal baggage rather than commercial or antique goods under the Customs Act, 1962. The goods are to be released subject to compliance with Baggage Rules and payment of applicable duties, if any. The appellant is entitled to all consequential reliefs as per law.

Delhi High Court Upholds Parallel Proceedings: No Double Jeopardy in Prosecution under Section 177 IPC and Section 132 Customs Act for Misdeclaration in Pesticide Imports - On the facts and law, the Delhi High Court dismissed the writ petition, holding that the petitioner’s challenge was not maintainable. The Court found that the complaints under Section 132 of the Customs Act and Section 177 IPC are not barred by the constitutional or statutory protection against double jeopardy, as they pertain to separate and distinct offences, even if arising out of the same transaction. The petitioner was directed to pursue his revision remedy before the ASJ, and not bypass the established judicial process.

Delhi High Court Upholds DRI Officers’ Jurisdiction as ‘Proper Officers’ under Customs Act in Light of Supreme Court’s Canon-II Review - In view of the Supreme Court's decisive clarification in Canon-II, the Delhi High Court has acted to restore the status quo ante for all affected appeals, directing that the merits of the cases be considered afresh by the CESTAT. All parties are now required to prepare for substantive arguments rather than preliminary jurisdictional objections. Assessees and legal counsel should thus focus their efforts on the factual and legal merits of their cases before the Tribunal, as the question of DRI officers’ jurisdiction is now settled law.

CESTAT Chennai Affirms Classification of Danazol as Bulk Drug Under Sl. No. 47A; Eligibility for Exemption Upheld and Reversal of Common Input Credit Subject to Departmental Verification - On the basis of the Tribunal’s decision, it is actionable that Danazol, when manufactured and cleared as a bulk drug, is eligible for exemption under Sl. No. 47A of Notification No. 4/2006-CE dated 1.3.2006. Manufacturers should ensure that they classify Danazol correctly under this entry and avail the exemption accordingly. However, any reversal of CENVAT credit under Rule 6(3) of the CENVAT Credit Rules, 2004, in respect of exempted clearances should be meticulously documented and made available for verification by the department.

CESTAT Delhi Rules HR Plates Not Eligible for Excise Exemption as WOEG Parts; Extended Limitation and Penalty Set Aside - Based on the Tribunal’s findings, HR plates used in manufacturing towers for WOEGs do not qualify as “parts or components” under Notification No. 12/2012-CE and are thus not entitled to the exemption. The demand for excise duty covering the normal limitation period is valid, but any demands or penalties beyond this period, based on allegations of suppression or misstatement, cannot be sustained when the Revenue itself has permitted concessional procurement. The actionable takeaway is that manufacturers must carefully distinguish between raw materials and identifiable parts/components when claiming exemptions and ensure full compliance with procedural requirements.

CESTAT Chennai Reaffirms Classification of Skin Care Petroleum Jelly Products as Cosmetics under Tariff Item 3304 9990 - Given the identical nature of the facts and legal provisions as previously adjudicated, and in the absence of any intervening developments, the CESTAT Chennai upheld the classification of Petroleum Jelly Aloe Vera and Petroleum Jelly Baby under Tariff Item 3304 9990 as cosmetics. The impugned order classifying the products under 2712 10 90 was set aside, and the appellant’s claim was allowed.

CESTAT Chennai Affirms CENVAT Credit Eligibility on Goods Used for Installation of Capital Goods in Cement Grinding Plant - In view of the clear statutory language of Explanation 2 to Rule 2(k) of the CENVAT Credit Rules, 2004, and the binding judgment of the Madras High Court in Thiru Arooran Sugars Ltd., the CESTAT Chennai has held that goods used for installing capital goods within a factory are eligible as 'inputs' for CENVAT credit purposes. This decision reinforces the principle that the benefit of CENVAT credit cannot be denied on goods used for installation of capital goods, provided such goods are used within the factory premises for the intended purpose.

Orissa High Court Upholds Tribunal’s Authority to Grant Interest on Delayed Customs Duty Refunds; Caps Rate as per Notification No. 75/2003-Customs (N.T.) - In light of the above, the Orissa High Court has authoritatively held that the CESTAT is fully competent to award interest on delayed refunds of customs duty, and that such interest must be calculated at the rate specified in the relevant notification. The order of the Tribunal was modified to substitute the interest rate of 12% with 6% per annum, as mandated by Notification No. 75/2003-Customs (N.T.). This decision mandates strict adherence to statutory timelines for refund and reinforces the principle that substantial justice must prevail over procedural or technical hurdles.

CESTAT Allahabad Orders Unconditional Re-Export of Restricted Novaluron Consignment Due to Bona Fide Supplier Error; Absolute Confiscation Set Aside - The CESTAT Allahabad’s decision underscores that when an importer demonstrates bona fide conduct, takes immediate remedial action, and the goods are found to be restricted (not prohibited), refusal to allow re-export is unjustified. The authorities are obligated to distinguish between restricted and prohibited goods and must not rely on mere assumptions in determining importer intent or imposing absolute confiscation. The actionable outcome is the immediate and unconditional re-export of the consignment, without the imposition of redemption fine, penalty, or duty.

No Confiscation or Duty Demand on Imported Goods Used in Alternate Projects—Subsequent Notification Amendments Held Inapplicable - On the basis of the above reasoning, CESTAT Kolkata held that post-import amendments to exemption notifications, especially those imposing new conditions, cannot be retroactively enforced against goods imported prior to such changes. In the absence of executed bonds or guarantees at the time of clearance, no perpetual obligation can be enforced. Therefore, neither confiscation nor differential duty demand with interest was sustainable in this context.

CESTAT Delhi Sets Aside Customs Valuation Enhancement in Absence of Independent Evidence Beyond Importer’s Admission - Based on the above findings, CESTAT set aside the impugned order enhancing the assessable value, along with the consequential demands of differential duty, penalty, and redemption fine. The Tribunal directed that the transaction value declared by the importer must be accepted for assessment purposes, as the department failed to substantiate undervaluation through independent evidence or compliance with statutory requirements.

Tribunal Reaffirms: Pre-Deposit Under Section 35F Must Be Made By Appellant Personally—No Substitution Permitted - The Tribunal unequivocally held that the pre-deposit required under section 35F of the Central Excise Act, 1944, must be made by the appellant personally. There is no provision under the Act for any other person to fulfill this requirement on the appellant’s behalf. Failure to comply will result in the appeal not being entertained by the Tribunal.

CESTAT Mumbai Quashes Penalties for Lack of Proper Show Cause Notice in Cenvat Credit Misuse Allegations - In light of the deficiencies in the show cause notice—specifically, non-invocation of Section 11AC and failure to set out the necessary factual and legal basis for penalties—the Tribunal set aside all penalties imposed under Rule 25(1), Rule 26(1) of the Central Excise Rules, 2002, and Rule 15(1) & Rule 15A of the Cenvat Credit Rules, 2004. The decision underscores that adjudicating authorities must strictly adhere to the scope of the show cause notice and cannot impose penalties on grounds not set out therein.

CESTAT Kolkata Rules Denial of CENVAT Credit for Duty Payment During Default Period Unjustified Following Supreme Court and Gujarat High Court Precedents - Based on binding judicial precedents, particularly the declaration of Rule 8(3A) as ultra vires by the Gujarat High Court and the affirmation by the Supreme Court, the impugned order demanding excise duty, interest, and penalty for utilization of CENVAT Credit during the default period cannot be sustained and is therefore quashed. Assessees are thus entitled to utilize CENVAT Credit for payment of duty even during periods of default.

CESTAT Delhi Sets Aside Penalty on Former MD for Lack of Deliberate Customs Duty Evasion under Section 112(a)(ii) of the Customs Act - In view of the above findings, the Tribunal allowed the appeal and set aside the penalty imposed on the former Managing Director under Section 112(a)(ii) of the Customs Act. The decision is grounded in the principle that conscious involvement and intent to evade duty must be established before penalty can be imposed on individuals, particularly those holding managerial or directorial positions.

CESTAT Mumbai Holds Duty Payment via SFIS Scrips Valid for 100% EOU Clearance to DTA; Demand of Duty and CENVAT Credit Reversal Set Aside - The CESTAT set aside the impugned order, holding that utilization of SFIS scrips for payment of excise duty on DTA clearances by a 100% EOU constitutes valid discharge of duty liability. The appeals filed by the appellants were allowed, and the demand for duty on inputs and reversal of CENVAT credit was quashed.

Customs Broker’s Licence Restored: CESTAT Mumbai Rules Revocation and Forfeiture Disproportionate in Alleged Overvaluation Case - Based on the findings, the CESTAT Mumbai set aside the orders revoking the customs broker’s licence and forfeiting the security deposit, thereby modifying the impugned order to that extent. The penalty imposed remains undisturbed, as it was not contested in the appeal. The Tribunal’s decision underscores the necessity for licensing authorities to provide clear, specific, and substantiated reasons when attributing misconduct to customs brokers, especially in the absence of direct evidence of wrongdoing or incorrect advice.

Delhi CESTAT Upholds Duty Demand and Confiscation for Dual Invoice Fraud and Retail Price Mis-declaration: Direct Foreign Evidence Cited - In light of the direct and corroborative evidence obtained from both domestic and international sources, the Tribunal has rightly confirmed the duty demand, confiscation of goods, and imposition of penalties. The decision underscores the evidentiary value of original overseas documents and confessional statements in establishing cases of under-valuation and mis-declaration under customs law. Assessees engaged in similar practices should be aware that such dual invoicing and RSP suppression schemes are liable to be detected and penalized, particularly where direct evidence is marshaled.

CESTAT Kolkata Affirms CENVAT Credit Eligibility for Input Services Used in Post-2011 Factory Setup Despite Exclusion in Amended Rule - Based on the Tribunal’s decision, it is clear that even after the 01.04.2011 amendment to the CCR, 2004, services utilized for the essential activity of setting up a factory—provided they are directly connected to the manufacturing process—are eligible for CENVAT credit under the “means” clause of the input service definition. Assessees should, therefore, closely examine the nature of each service to establish its direct nexus with manufacturing when claiming such credits.

CESTAT Mumbai Overturns Denial of CENVAT Credit on GTA Services, Relies on Larger Bench Precedent in Ramco Cements - In light of established legal precedent and consistent Tribunal rulings, the CESTAT Mumbai set aside the impugned order denying CENVAT credit on GTA services for the relevant period. The appeal was allowed, reaffirming the eligibility of the credit under the given circumstances.

CESTAT Bangalore Clarifies CENVAT Credit Eligibility: Credit Allowed Only Where Documentary Proof Exists; Disallowance on Mere Lack of Nexus Not Sustainable - On the facts and law, the CESTAT Bangalore established that CENVAT credit is to be granted for all input services where the appellant provides adequate documentary evidence of payment of service tax and the input service supports the output activity. Disallowance on the sole ground of 'lack of nexus' is not sustainable without specific findings, and authorities must consider all evidence and submissions made before them. However, credits claimed without supporting documentation are not allowable under Rule 9 of the CENVAT Credit Rules, 2004.

CESTAT Chandigarh Rules: No Interest Payable on Pre-Deposit from Date of Deposit to Refund under Pre-2014 Section 35FF; Interest Limited as per Statutory Provisions - Based on the current decision, assessees who made pre-deposits prior to 06.08.2014 under Section 35FF of the Central Excise Act, 1944, are not entitled to interest for the period between the date of deposit and the date of refund. Interest, if any, is only payable as per the specific provisions of Section 11BB or Section 35FF, as applicable, and not from the date of the original deposit. The Tribunal’s decision reinforces the principle that statutory provisions must be strictly followed unless there is express legislative intent to the contrary.

Supreme Court Rules Crude Degummed Soyabean Oil Is Not an Agricultural Product; Circular Cannot Override Statutory Notification for Duty-Free Credit Entitlement - In light of the Supreme Court’s decision, it is now settled that crude degummed soyabean oil, produced from soyabean through a manufacturing process, is not an agricultural product for the purposes of Notification No. 53/2003-Cus. dated 01.04.2003. Administrative circulars such as No. 10/2004-Cus. cannot curtail or expand the scope of statutory notifications by imposing additional conditions or exclusions. Assessees importing crude degummed soyabean oil under valid duty-free credit entitlement licenses are entitled to the benefits of the notification, provided they satisfy all other statutory requirements.

CESTAT Delhi Clarifies Non-Applicability of Section 114AA for Pre-Enactment Offences; Upholds Redemption Fine and Modifies Penalty Under Customs Act - Based on the facts and legal position, the Tribunal confirmed the redemption fine of Rs. 10,00,000/- as previously adjudicated, further reduced the penalty under section 112(a) to Rs. 5,00,000/-, and set aside the penalty under section 114AA due to its non-applicability to acts committed prior to its enactment. The decision underscores the importance of the finality of adjudicatory orders, the proportional application of penalties, and the prospective operation of penal provisions unless expressly stated otherwise.

CESTAT Rules Customs Authorities Cannot Re-determine FOB for Export Incentives; Confiscation and Penalties Set Aside in Readymade Garments Case - In this decision, CESTAT has categorically held that customs authorities cannot re-determine the FOB value of exported goods for the purposes of calculating export-linked incentives such as Drawback and ROSL. Any action by customs officers to substitute the FOB value declared and notified by the government infringes upon the statutory framework and is not supported by section 14 of the Customs Act or the Valuation Rules. Orders based upon such unauthorized re-determination, including confiscation of goods, redemption fines, and penalties, are liable to be quashed.

Central Government notifies redeemable bonds issued by the Indian Renewable Energy Development Agency (IREDA), in respect of "Long-Term Specified Assets" under section 54EC

Exemption from specified income U/s 10(46A) of IT Act 1961 - "Rajasthan Housing Board"

Exemption from specified income U/s 10(46) of IT Act 1961 - “Karnataka State Pollution Control Board”

01-07-2025 Circular No. 8/2025
Clarification regarding CBDT's Circular No. 5/2025 dated 28.03.2025 for waiver on levy of interest under section 201(1A)(ii)/ 206C(7) of the Income-tax Act, 1961, as the case may be, in specific cases

Amendment in Notification No. 44/2017 dated 5th June, 2017

Reviewing authority, Revisional Authority and Appellate Authority in respect of orders passed by Common Adjudicating Authority (CAA) for show cause notices issued by DGGI
Corrigendum - Notification No. G.S.R.256 (E) dated 24th April 2025
Generation and quoting of Document Identification Number (DIN) on any communication issued by the officers of the Central Board of Indirect Taxes and Customs (CBIC) to tax payers and other concerned persons
Grievance Redressal Mechanism for processing of application for GST registration
Timely production of records/information for audit
Companies (Corporate Social Responsibility Policy) Amendment Rules, 2025
Companies (Listing of equity shares in permissible jurisdictions) Amendment Rules, 2025.
Ease of Doing Investment – Special Window for Re-lodgement of Transfer Requests of Physical Shares
Companies (Incorporation) Amendment Rules, 2025
Companies (Restriction on number of layers) Amendment Rules, 2025
Fixation of new Standard Input Output Norms (SIONs) at SION (A-3687, A-3688 and A-3689 under 'Chemical and Allied Product' (Product Code 'A')
Seeks to impose CVD on Continuous Cast Copper Wire Rods originating in or exported from Indonesia, Malaysia, Thailand and Vietnam
Registration of Importers of Plastic Raw Material on Centralized EPR Portal for Plastic Packaging as per Plastic Waste Management Rules, 2016 (as amended)
Procedure for filing application for obtaining Import Authorisation for import of Low Ash Metallurgical Coke subject to Country-wise Quantitative Restrictions (QR)
Port restriction on import of certain goods from Bangladesh to India under ITC (HS), 2022 Schedule 1 (Import Policy)
Continuation of imposition of Quantitative Restriction on import of Low Ash Metallurgical Coke under Chapter 27 of ITC (HS) 2022, Schedule - I (Import Policy)
Extension in Minimum Import Price (MIP) Condition on import of Soda Ash covered under Chapter 28 of ITC (HS) 2022, Schedule-I (Import Policy)
Fixation of Tariff Value of Edible Oils, Brass Scrap, Areca Nut, Gold and Silver
Appointment of Common Adjudicating Authority for the purpose of finalization of Provisional Assessment in SVB case w.r.t. M/s MB Crusher
Seeks to amend Notification No. 130/2010-Customs, dated the 23rd December, 2010

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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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