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ITAT : ITAT Mumbai Quashes Section 68 Addition on Cash Deposits During Demonetisation Citing Lack of Investigation and Reliance on Ad-Hoc Formula


ITAT : Ahmedabad ITAT Affirms CIT(A)’s Deletion of ₹3.5 Crore Addition under Section 68: Presumption by AO Not a Substitute for Evidence in Property Advance Case

ITAT : Delhi ITAT Rules Section 50 Inapplicable: Sale of Shares via Put Option Cannot Be Treated as Sale of Underlying Assets for STCG Purposes

ITAT : Mumbai ITAT Allows Deduction of BSE/NSE and SEBI Charges Paid by Goldman Sachs (India) Securities, Distinguishes Non-Statutory Violations from Penal Payments

ITAT : Delhi ITAT Reaffirms Option Money from Share Sale in JV as Capital Receipt, Not Business Income, for Dabur Invest Corp.

ITAT : Delhi ITAT Rules Standard Flight Simulator Services Provided to Indian Pilots in Ethiopia Not Taxable as Fee for Technical Services (FTS); No Customization or Indian Nexus Found

ITAT : Delhi ITAT Rules Offshore Supply by Chinese Telecom Firm to Indian PSUs Not Taxable under Section 44BBB; Strikes Down CIT(IT)’s Section 263 Revision Order

ITAT : ITAT Bangalore Quashes Deemed Dividend Addition Under Section 2(22)(e); Finds Cash Seizure Merely Custodial, Not Personal Benefit

ITAT : Delhi ITAT Sets Aside CIT(A) Order for Non-Compliance with Rule 46A(3); Directs Fresh Adjudication Ensuring Due Process for Additional Evidence

ITAT : Delhi ITAT Affirms Deductibility of Pre-Commencement Expenditure Once Business Set Up, Despite Single Investment Transaction in Subsidiary

ITAT : Pune ITAT Upholds Assessee’s Short-Term Capital Gains as Genuine Amidst Lack of Evidence of Manipulation in Exchange-Traded Penny Stock Transactions

ITAT : Mumbai ITAT Orders Reference to Valuation Officer under Section 50C for Sale of Fixed Asset; Rejects Section 43CA Applicability in Absence of Inventory Treatment

ITAT : Delhi ITAT Affirms Excise Duty Exemption as Capital Receipt for P.C. Jeweller; Allows Fresh Claim Before CIT(A) Despite Prior Revenue Classification

HC : Madras High Court Upholds CBDT Circulars: No Vivad Se Vishwas Amnesty for Assessee with Disputed Tax Over ₹5 Crore from Search Assessments

HC : Madras High Court Affirms ITAT Ruling: Deduction Under Section 10AA Not Denied for Delay in Filing Form 56F Where Substantive Compliance Exists

HC : Madras High Court Rules Non-Refundable Life Membership Fees as Capital Receipt, Not Taxable as Revenue Income for Clubs

HC : Gujarat High Court Invalidates Reassessment After Four Years Where Assessee Had Fully Disclosed All Material Facts; Reassessment Deemed Mere Change of Opinion

ITAT : Ahmedabad ITAT Quashes Penalty for Deduction Claim in Belated Return: No Concealment Under Section 271(1)(c) When Capital Gain Exemption Claimed in Return Filed U/s 139(4)

ITAT : Delhi ITAT Invalidates Ad Hoc Income Addition: Rejection of Books Unfounded Without Concrete Discrepancy Under Section 145(3)

ITAT : Mumbai ITAT Upholds Assessee’s Right to Adopt DCF Valuation for Share Issue; Rs. 81 Lakh Addition under Section 56(2)(viib) Deleted for Satisfactory Justification of Projections

ITAT : Bangalore ITAT Rules Maintenance Charges from Tenancy as Taxable Business Income, Not House Property Income, Under Section 44AD

ITAT : ITAT Ahmedabad Rules Agricultural Land Falls Under “Immovable Property” for Section 56(2)(x); Orders AO to Seek DVO Valuation on Stamp Duty Dispute

ITAT : Delhi ITAT Upholds Allowability of Marketing and Sales Promotion Expenses Incurred in Foreign Currency by Indian Retail Arm, Finds Expenditure to be Wholly and Exclusively for Business Purposes

ITAT : Chennai ITAT Upholds Indian Residency Status for Assessee on Basis of 182-Day Stay; Global Income Taxable in India Despite UAE TRC and Social Visa Claims

ITAT : Bangalore ITAT Clarifies Deduction under Section 80P(2)(a)(i) for Cooperative Societies with Multiple Member Classes; Directs Proportionate Exclusion Only for Non-Compliant Associate Members

ITAT : Ahmedabad ITAT Affirms PCIT’s Section 263 Revision for Incorrect Penalty Notice in Section 69A Addition; AO’s Error in Penalty Provision Selection Upheld as Prejudicial to Revenue

ITAT : Delhi ITAT Invalidates Assessment Order Passed Beyond Limitation Period under Section 153 r.w.s. 254/143(3) by Over 15 Months in Consequence to Tribunal’s Direction

ITAT : ITAT Mumbai Clarifies Scope of Section 143(1) Adjustments: No Natural Justice Violation in Absence of Prior Hearing, Remands Disallowances for Fresh Consideration

ITAT : Mumbai ITAT Rules Disallowance Under Section 11 Limited Only to Quantum of Income Diverted to Specified Persons; Remands Case for Fresh Quantification

SC : SC Upholds CESTAT's Classification of 'Liv 52 Protec' as Ayurvedic Medicament, Rejecting Assessee's Claim for Animal Feed Supplement Status

SC : Supreme Court Affirms CESTAT Mumbai’s Decision on Classification of Stainless Steel Tube Fittings

SC : Battle Over Refund of Input Tax Credit for Electric Three-Wheeler Manufacturer: SC Overrules Patna HC Verdict

HC : Madras HC Upholds Assessment Order, Citing Lack of Evidence in GSTR-01 Filing Errors

HC : Gujarat High Court Revokes GST Registration Cancellation, Mandates Compliance for Petitioner in Performing Arts Sector

HC : Tripura High Court Rules on ITC Reversal Notices: Clarifies Procedures for Compliance and Dispute Resolution

HC : Madras HC Reinstates GST Registration After Considering Ill Health as Reason for Non-Compliance; Sets Conditions for Future Compliance

HC : Sikkim HC Overturns ITC Denial for FY 2018-19: Emphasizes Retrospective Amendments and Time Limit Extensions

HC : Andhra Pradesh HC Voids Assessment Order Due to Non-Consideration of Objections in GST Case Involving State-Specific Turnover Disputes

HC : Bombay High Court Upholds Refund Claim for IDP Education India, Dismisses Revenue’s Intermediary Assertion Under IGST Act

HC : Sikkim High Court Orders Refund of Unutilized ITC Post Business Closure, Affirms Right Beyond Section 54(3) Limits

HC : Punjab & Haryana High Court Clarifies Bail Principles in GST Fraud Case Involving ₹325 Crore Fake ITC; Distinguishes Economic Offences on Case-to-Case Basis

HC : Gujarat HC Clarifies Definitions, Upholds Private Warehouse License Application Despite Ongoing Litigation

AAR : Leasing Weekly Market Activities: Tamil Nadu AAR Declares Non-Taxable Status for Kannivadi Town Panchayat

AAR : Pharmacy Supply of Medicines to In-Patients Deemed a Composite Supply; Tamil Nadu AAR Confirms Exemption under GST

HC : Orissa High Court Reverses Registration Cancellation, Orders Reassessment of Business Operations

HC : Allahabad High Court Invalidates Successive GST Notices by Same Officer: Fresh Notice Under Section 74 Quashed Due to Procedural Irregularity After Initial Section 73 Proceedings

HC : Delhi High Court Rebukes Revenue for Non-Compliance; Orders Expeditious GST Refund on Employee Secondment Without Raised Invoice

AAR : Maharashtra AAR Determines Custom-Built Exhaust After Treatment System (ATS) for Automobiles as Motor Vehicle Parts Under Heading 8708, Not Machinery Under 8421

HC : Rajasthan High Court Expunges AAAR Remarks on ITC for Refurbished Used Cars, Restricts Authority to Grounds Raised in Appeal

AAR : Maharashtra AAR Differentiates GST Classification of ‘Infantometer’ and ‘Stadiometer’: Diagnostic Use Dictates Tax Rate

CESTAT : CESTAT Chennai Affirms Tribunal’s Jurisdiction Over Rejection of Special Warehouse License for Duty-Free Operator Despite Prior Section 112(a) Penalty

HC : Allahabad HC Invalidates Demand Order for Excess Interest and Penalty Following SCN Discrepancies

HC : Asseessee Granted Opportunity to Contest Due to Errors in Service of Notices

AAR : Rajasthan AAR Declares Agricultural Machinery Blades Subject to 18% GST Classification under Chapter 82.08, Rejects Lower Rate Claims

AAR : Groundnuts Heating Deemed Roasting by Rajasthan AAR; GST Classification at Stake

AAR : Maharashtra AAR Rules Separate GST Treatment for Each Raymond Realty Tower Based on RERA and Project Progress; Only Few Towers Eligible for 12% Concessional Rate

AAR : Odisha AAR Confirms 18% GST on Leasing of Goods Transport Vehicles Without Operator: No Transfer of Ownership or Right to Use

HC : Delhi High Court Remands IGST Levy on Intra-Company Expenses for Reconsideration in Light of Recent Circular and Judicial Precedent

HC : Madras High Court Mandates GST Officers to Ensure Effective Service of Notices Beyond Portal Upload Before Passing Ex Parte Orders

Appellate Tribunal Upholds FEMA Contravention for Unexplained Cash; Reduces Penalty Citing Seizure and No Prior Offences - The Tribunal’s order reaffirms the strict compliance requirements under FEMA regarding unexplained and unaccounted cash. Any unsubstantiated defence, especially one unsupported by contemporaneous documentation, is unlikely to be accepted. However, the Tribunal has also demonstrated willingness to exercise leniency in penalty imposition where the confiscated amount covers the alleged contravention and the appellant has no prior history of offences.

Appellate Tribunal Cites Lack of Foreign Exchange Loss, Reduces Penalty for NRI Land Purchase and Hotel Construction in Violation of FEMA - In summary, the Tribunal’s decision underscores the significance of substantiating claims with documentary evidence when contesting penalties under FEMA. However, where technical violations do not result in actual foreign exchange loss to the country, the authorities are inclined to exercise leniency in the imposition of penalties. Assessees must ensure that all transactions are adequately documented and that compliance with FEMA notifications is demonstrable.

Tribunal Overturns Confiscation of Goa Land Under SAFEMA; Partial Relief for Company in FEMA Contravention Case - The Tribunal’s decision provides clear guidance: penalties and confiscation orders based on presumptions or unsupported by evidence cannot be sustained. However, strict adherence to FEMA’s requirements regarding receipt of foreign funds and timely reporting to RBI is mandatory, and violations on these counts will attract penalties. Companies must distinguish between corporate entities and their directors for FEMA compliance purposes.

Income tax - Sections 148, 148A - Delhi High Court Quashes Reassessment Based on Audit Objection: Review of Concluded Assessment under Section 147 Held Impermissible for UK-Based Assessee Receiving Corporate Service Charges - The Delhi High Court concluded that the reassessment proceedings initiated against the assessee, based solely on an audit objection and without the emergence of any new material or information, amounted to an impermissible review of a concluded assessment. The AO was not justified in reopening the matter, as all relevant facts had already been considered in the original proceedings, and there was no tangible material indicating escapement of income. The exercise of reopening, therefore, was invalid and unsustainable in law.

Income tax - Sections 9(1)(vii), 197 - Delhi High Court Directs NIL Withholding Tax Certificate for Cross-Charges, Finds No FTS or Royalty under India-US DTAA without 'Make Available' of Technical Knowledge - The Delhi High Court’s decision establishes that unless technical knowledge, skill, or know-how is made available in a manner that enables the recipient to perform services independently, cross charges for management and support functions cannot be classified as FTS or FIS under the India-US DTAA. Furthermore, payments for access to centrally managed software, absent the grant of copyright or similar rights, do not constitute royalties. Consequently, in such factual circumstances, a NIL withholding tax certificate must be granted, relieving the payer from deduction obligations under Section 195.

Income tax - Sections 147, 148 - Delhi High Court Quashes Reopening Notices Under Section 148 for Lack of Tangible Material Alleging Dependent PE—Relief for Assessee - The Delhi High Court unequivocally held that, in the absence of tangible material for forming a reasonable belief regarding the existence of a Dependent PE or Fixed Place PE of the assessee in India, the issuance of notices under Section 148 was unsustainable in law. The reassessment proceedings initiated for AYs 2013-14 to 2017-18 were accordingly quashed, thereby granting relief to the assessee. Assessees facing similar circumstances may rely on this precedent to challenge reassessment notices lacking demonstrable new material.

Income tax - Sections 147, 195 - Delhi High Court Rules Payments for Standardized Cloud Services to US Providers Not Taxable as Royalty or FTS - The Delhi High Court unequivocally held that payments made by Indian companies to foreign cloud service providers, for standardized cloud computing services, are not taxable as royalty or fees for technical services under the Income Tax Act or the India-US DTAA. The Court’s decision relies heavily on the absence of any right given to the customer to use or commercially exploit the provider’s equipment, software, or intellectual property.

Income tax - Sections 92B, 40(a)(ia), 194C - ITAT Jaipur Rules Supply of Food Packets to Employees Not Attracting TDS Under Section 194C; Disallowance of Business Promotion Expenses Upheld - The ITAT Jaipur has clarified that payments made for the supply of food packets, where the transaction is a sale of goods and not a service contract, do not attract the provisions of section 194C, and hence, there is no requirement to deduct TDS. For business promotion expenses, unless the nature of the expenditure as employee incentives is clearly established and documented, such claims may be subject to disallowance if TDS is not deducted where applicable.

Income Tax - Sections 54, 144C - ITAT Delhi Rules Section 54 Exemption Available Despite Pre-Sale Construction and Prior Payments for New Residential Flat - The ITAT Delhi has reaffirmed that Section 54 exemption cannot be denied merely on the grounds that construction or payments towards the new residential house began prior to the sale of the original asset. It is sufficient for the taxpayer to demonstrate that the acquisition or construction of the new property (including the property becoming fit for occupation) is completed within the prescribed statutory period from the date of sale. Actionably, assessees should meticulously document the date on which the new property becomes habitable and ensure that all investments are clearly linked to rendering the property fit for residential use within the three-year window.

Income tax - Sections 12A, 40, 43B, 44AB - ITAT Panaji Rules Delay in Filing Audit Report Under Section 12A(b)(ii) is Curable: Exemption U/s 11 & 12 Allowed Where Audit Completed Within Specified Date - In light of the above analysis, the ITAT set aside the NFAC’s order and directed the Assessing Officer to recognize the audit report in Form-10B as filed within the prescribed time and grant exemption under sections 11 and 12. The ruling affirms that delayed filing of the audit report, when the audit itself was completed in time and the delay was bona fide, is a curable defect that does not irreversibly extinguish the exemption claim.

ITAT Mumbai Rules Management Support Service Fees as Non-Taxable Reimbursement, Not Royalty, Under Indo-Netherlands DTAA - The ITAT Mumbai decisively ruled that management and support service fees received by a non-resident parent company from its Indian subsidiary—where the payments merely represent cost reimbursements without any markup and do not involve transfer of knowhow or proprietary information—cannot be taxed as royalty under Article 12(4) of the India-Netherlands DTAA. Taxpayers in similar circumstances should ensure that service agreements and payment structures clearly evidence pure cost allocation, devoid of any markup or profit element, and that the services rendered do not amount to transfer of knowledge, skill, or expertise.

Income Tax - Section 68 - Delhi ITAT Orders Fresh ALP Computation on Segmental Basis and Reinclusion of Comparable; Remands Notional Interest and Section 68 Additions for Verification - The ITAT’s decision mandates a fresh determination of the Arm’s Length Price by the TPO on a segmental basis, with the inclusion of Fiberfox India Pvt. Ltd. as a valid comparable. It also requires the Assessing Officer to re-examine the Section 68 addition in light of new evidence and to ensure that notional interest is not arbitrarily imposed on outstanding trade receivables if the facts do not warrant it. The directions are actionable: taxpayers must ensure that proper segmental results are maintained and produced, and that comparable selection is supported by robust function, asset, and risk analysis. Additionally, taxpayers must maintain documentary evidence regarding the settlement of trade creditors and the nature of their borrowings to defend against unwarranted notional interest adjustments.

Income tax - Sections 92CA, 144C - ITAT Chennai Restricts Corporate Guarantee ALP Adjustment to 0.5% for Letter of Comfort Provided to Associated Enterprise - Relying on binding High Court decisions and consistent Tribunal precedents, the ITAT Chennai held that the arm’s length commission for corporate guarantees (including letters of comfort) provided to associated enterprises should be capped at 0.5% of the guarantee value. The TPO’s higher rate, based on bank charges, was not upheld. Taxpayers with similar transactions should ensure that adjustments for guarantee commissions are restricted to this rate, provided they are in jurisdictions where such precedents apply.

Income tax - Sections 144C - ITAT Mumbai Rules DRP Directions Immediately Accessible in ITBA System; Transfer of Shares by Gift to Mauritius Entity Not a Tax-Efficient Shield - On the issue of limitation, ITAT unequivocally held that once DRP directions are digitally signed and available in the ITBA system, the statutory period for passing the final assessment order under Section 144C(13) commences immediately. Delays or lack of awareness by the AO are not grounds for extending the limitation, and any order passed beyond the time limit is void ab initio and liable to be quashed.

Income-tax - Sections 143(3), 144C - ITAT Delhi Directs Fresh Review on Transfer Pricing Adjustments for Outstanding AE Receivables: Emphasizes Working Capital Impact and Comparable Analysis - The ITAT set aside the adjustment made solely on the basis of outstanding receivables, directing the TPO to conduct a fresh examination. This review must include an analysis of the impact of receivables on the assessee’s working capital and profitability, consideration of actual business practices with both AEs and unrelated parties, and an assessment of netting off receivables and payables with AEs. The TPO is also required to analyze each assessment year’s facts independently, factoring in whether the assessee is debt-free and the industry-wide comparables’ treatment of receivables. Only after such comprehensive analysis can any adjustment, if warranted, be justified under the provisions of section 92CA read with Rule 10B.

Income tax - Sections 10AA, 263 - ITAT Pune Affirms AO’s Deduction of Section 10AA on Section 14A Disallowance—Order Not Erroneous Despite Revenue’s Pending Appeal - Based on the above analysis, the ITAT held that the AO’s order, passed in consonance with binding judicial precedents, cannot be deemed erroneous merely because the Revenue has not accepted such precedents and has preferred an appeal. Both conditions under Section 263 must be satisfied, and in this instance, the absence of error precluded the assumption of revisionary powers by the PCIT. The ITAT’s decision is actionable in that it reinforces the protection against revisionary action when the AO acts in accordance with binding appellate or High Court decisions.

Income tax - Sections 44BB, 195, 201 - Equipment Rental Charges for Offshore Drilling by Foreign Companies Taxable Under Section 44BB, Not as Royalty or FTS - On the facts and law, the ITAT held that payments made to foreign companies for services and equipment rentals in connection with offshore drilling and extraction of mineral oil are taxable under the presumptive regime of section 44BB and not as royalty or fees for technical services under section 115A read with section 44D. The AO’s order treating the assessee as an assessee-in-default under section 201 was set aside.

Income Tax - Sections 143(3), 144C(13) - ITAT Hyderabad Rules LIBOR, Not SBI Rates, Apply for Benchmarking Interest on Foreign Currency Receivables from Associated Enterprises - The ITAT Hyderabad’s decision unequivocally establishes that, for international transactions involving loans or outstanding receivables denominated in foreign currency, the arm’s length interest rate must be benchmarked using international rates such as LIBOR or EURIBOR, not domestic Indian banking rates like SBI PLR. This approach aligns the benchmarking process with commercial principles and international judicial consensus. The order is actionable in that tax officers and transfer pricing professionals must use LIBOR or comparable international benchmarks, with appropriate mark-ups, for such cross-border receivables, and must allow a commercially reasonable interest-free period (here, 60 days) before imputing interest for tax purposes.

Income tax - Section 92CA, 263 - ITAT Delhi Quashes PCIT’s Section 263 Revision: No Justification for Substituting TPO’s Arm’s Length Determination of Interest on CCDs - The ITAT’s ruling affirms that revisionary jurisdiction under Section 263 cannot be exercised simply because the PCIT holds a different view on the determination of the arm’s length price of an international transaction, particularly where the TPO has conducted a thorough and reasoned inquiry. The PCIT must demonstrate specific errors or prejudice to the interests of the revenue, failing which such revisionary orders are liable to be quashed.

Income Tax - Sections 143(3), 144C(13), 143(3A), 143(3B) - ITAT Delhi Rules Bank Commission Rate Not Appropriate Benchmark for Arm’s Length Pricing of Standby Letter of Credit Guarantee to Subsidiary - The Delhi ITAT has categorically held that, for benchmarking guarantees or SBLC facilities extended to AEs under transfer pricing regulations, internal comparables, where the assessee has paid commission for securing its own guarantees, should take precedence over external rates charged by commercial banks. The TPO was instructed to apply the 0.5% internal rate, reflecting the actual commission paid by the assessee in similar circumstances, instead of the 1.3% bank guarantee commission rate.

NCLAT Chennai Upholds Denial of Interim Relief in Alleged Oppression and Mismanagement Due to Appellant’s Breach of Service Contract - The NCLAT’s decision reaffirms that interim orders are not a matter of right but a discretionary remedy, heavily dependent on the applicant’s conduct and the equities of the case. Applicants who fail to uphold contractual or fiduciary obligations, or who approach the court without clean hands, risk denial of equitable relief. The denial of interim relief in this case stands on sound legal principles and is not open to challenge. The appeal was consequently found to be misconceived and was dismissed.

NCLT Dismisses Oppression and Mismanagement Petition: Former Managing Director Barred by Constructive Res Judicata After Prior Settlement - Based on a holistic consideration of the facts, legal principles, and previous settlement, the NCLT concluded that the petition was devoid of merit. The prior mediation and settlement barred the petitioner from re-litigating the same issues due to the doctrine of constructive res judicata. The mere existence of an inspection report was found insufficient to establish a case of oppression or mismanagement. The petition was accordingly dismissed.

NCLAT Chennai Declines Share Division Petition by Partnership Firm; Dismisses Mismanagement Allegations Due to Non-Recognized Membership - The NCLAT Chennai concluded that petitions for division of shares or alleging mismanagement and oppression cannot be entertained where the applicant is a partnership firm, as such a firm lacks recognized membership status under the Companies Act, 2013. Furthermore, in the absence of credible evidence, allegations of mismanagement and oppression will not be sustained. The Tribunal also established a precedent for equitable sharing of mediation costs in corporate disputes.

NCLAT Refuses to Condon Delay Beyond Statutory Limit in Appeal Against Winding Up Order Under Companies Act - In view of the statutory framework and the facts of the case, the NCLAT concluded that the delay of 54 days beyond the already extended period of limitation could not be condoned in law. No sufficient cause was demonstrated to justify condonation, and the Tribunal is expressly prohibited from condoning any delay beyond the prescribed period. Accordingly, the appeal was dismissed as barred by limitation, with no relief granted to the appellant.

NCLAT Restores Appointed Date under Amalgamation Scheme: NCLT’s Unilateral Modification Set Aside for Breach of Natural Justice - The NCLAT’s decision conclusively establishes that the ‘Appointed Date’ in a scheme of amalgamation, as agreed by the parties and set out in the scheme, cannot be altered by the NCLT without explicit reasons, due process, and an opportunity to be heard. Stakeholders must ensure that appointed dates are robustly drafted and justified within their schemes. Any subsequent modification by judicial or quasi-judicial bodies must be supported by cogent reasons, with all affected parties being heard, in line with the principles of natural justice.

Delhi High Court Upholds NCLT’s Domain Over IRP Actions: Review Petition Dismissed for No Error Apparent on Record - Based on the established legal position and the facts presented, the Delhi High Court dismissed the review petition, holding that no error apparent on the face of the record was demonstrated. The Court reaffirmed that challenges to the IRP’s conduct or findings must be pursued before the NCLT, which retains exclusive jurisdiction over such matters within the framework of the IBC. Consequently, the application for review under Section 114 and Order XLVII Rule 1 CPC stood rejected.

NCLAT Upholds Company Strike-Off: Non-Appearance and Undisputed Tax Demand Prove Decisive Under Companies Act, 2013 - In light of the Appellant’s failure to appear and lack of any contestation regarding the tax demand, the NCLAT found no basis to disturb the order striking off the company’s name. The decision underscores the importance of both procedural diligence and substantive defense in restoration proceedings under Section 252 of the Companies Act, 2013.

NCLAT Rules Tribunal Orders Not Equivalent to Civil Court Decrees, Clarifies Mechanism for Recovery in Oppression and Mismanagement Cases - On the basis of the above decision, it is clear that applications seeking the drawing of formal decrees from orders of the NCLT or NCLAT—particularly those based on reports of Administrators—are not maintainable. The Adjudicating Authority was correct in dismissing such applications. Orders passed by the Tribunal under Sections 241 and 242 of the Companies Act are enforceable "as if" they were decrees of a civil court, but they do not become decrees as defined under the CPC, nor can they be formally drawn as such. Parties seeking enforcement must proceed under the statutory mechanism outlined in Section 424(3) of the Companies Act, rather than seeking relief in the form of a civil court decree.

Delhi High Court: Bank’s ‘Fraud’ Tag on Borrower Struck Down—No Additional Proof Beyond Wilful Default, Typographical Errors Corrected - In light of the reviewed judgment, the Delhi High Court has unequivocally quashed the banking respondent’s classification of the petitioner as ‘fraud’, holding that such action cannot be sustained on the same grounds previously found inadequate for wilful default, absent fresh, independent evidence. Practical action going forward requires that any attempt by banks to escalate from ‘wilful default’ to ‘fraud’ must be substantiated by new, independently verifiable material, meeting the higher standard of proof required for fraud declarations.

Delhi High Court Upholds SEBI’s Right to Relieve Administrator; Directs Consideration of Remuneration for Services Rendered in En Aromatic & Petro Chemicals Matter - The Delhi High Court reaffirmed that the appointment of an Administrator under the SEBI Act and relevant Regulations is inherently of limited tenure and subject to termination by SEBI at its discretion, provided such termination adheres to the conditions of appointment and regulatory prescriptions. The Court provided a clear, actionable direction to SEBI to address and determine the petitioner’s claim for outstanding remuneration in accordance with the governing documents.

NCLAT Allows Withdrawal of Amalgamation Appeal in Light of Per Incuriam Order: Permission Granted to Approach Tribunal for Recall - The NCLAT’s decision clarifies that when an impugned order has subsequently been held per incuriam in another matter, affected parties may be allowed to withdraw their pending appeals and seek recall of such orders before the original Tribunal. Parties should be vigilant in monitoring related proceedings and utilize the opportunity to rectify orders that may have been incorrectly passed due to oversight of legal principles.

NCLAT Affirms Lawful Cessation of Additional Director; Legitimate Expectation Doctrine Rejected in Oppression and Mismanagement Case - In summary, the NCLAT has reaffirmed that an Additional Director’s tenure ends by operation of law as per Section 161(1) of the Companies Act, 2013, and such cessation cannot be assailed as oppression or mismanagement unless accompanied by additional, substantive acts of wrongdoing. The doctrine of legitimate expectation does not create a legally enforceable right to appointment or continuance as a director. Moreover, procedural lapses such as failure to hold an AGM, while potentially actionable in other forums, do not by themselves constitute oppression or mismanagement for the purposes of Sections 241 and 242. Appellants should therefore focus on concrete evidence of mala fide or prejudicial conduct if seeking relief under these provisions.

NCLAT Overturns NCLT’s Dismissal: Demerger Scheme Sanctioned for Family-Owned Firms Based on Expert Valuation and Unanimous Shareholder Consent - The NCLAT has categorically found fault with the NCLT’s dismissal of the demerger application, especially when the statutory requirements under Sections 230-232 were evidently complied with. This decision reinforces that when a scheme is backed by expert valuation, full shareholder approval, and proper disclosures, the Tribunal should not ordinarily interfere unless there is an evident legal or procedural lacuna. Appellants should promptly seek consequential directions from the NCLT as per the appellate order to proceed with the scheme.

NCLAT Sets Aside NCLT’s Quorum Directions: Shareholder Meetings to Follow Section 103 of Companies Act, Including Virtual Participation - The NCLAT’s decision unequivocally establishes that the quorum for shareholders’ meetings must be determined strictly in accordance with Section 103 of the Companies Act, 2013. The Tribunal set aside the NCLT's directive that purported to fix the quorum independently of statutory provisions. It was further clarified that shareholders participating through video conferencing or other permitted electronic means must be included in the quorum count, and that all procedural aspects of the meeting must comply with MCA Circular No. 14/2020. The appeal was accordingly disposed of, restoring the primacy of the Companies Act in governing company meetings.

Supreme Court Rules State MPID Act Prevails Over SARFAESI, RDB, and IBC in Attachment of Properties Linked to Defrauded Depositors - The Supreme Court’s ruling establishes that, within Maharashtra, the MPID Act’s provisions for attaching properties of entities that default on the return of deposits to investors take precedence over the priority rights of secured creditors under the SARFAESI Act, the debt recovery regime under the RDB Act, and the moratorium under the IBC. Secured creditors cannot claim priority or seek to enforce their security against assets attached for the benefit of defrauded depositors under the MPID framework. Practically, authorities and claimants must recognize the superior claim of depositors protected by the MPID Act when dealing with attached properties in Maharashtra, and any action contrary to this hierarchy would be invalid.

NCLAT Clarifies: Amendment of Pleadings in S.241-242 Company Petitions Requires Formal Leave of Tribunal—No Suo Moto Additions Permitted - The NCLAT’s decision makes clear that in company law proceedings under Sections 241 and 242 of the Companies Act, 2013, pleadings are sacrosanct once filed and form part of the judicial record. Any amendment—whether to prayers or other substantive parts—requires a formal application to the Tribunal and must be accompanied by a judicial order granting leave. This ensures that due process is followed and that the opposing party is afforded a fair opportunity to respond.

Section 103 of the Companies Act, 2013 - NCLAT Rules That Only Statutory Quorum Under Section 103 Governs Shareholder Meetings; NCLT Lacks Authority to Alter Quorum Requirements - In light of the above, the NCLAT’s decision affirms that the statutory quorum requirements under Section 103 of the Companies Act, 2013, are mandatory and cannot be modified or overridden by the NCLT. Companies and their stakeholders must ensure that all meetings are convened in line with these statutory requirements, as any deviation may render the proceedings invalid and subject to challenge.

Delhi High Court Upholds Club’s Right to Suspend Dependent Privileges Beyond Age 21: No Vested Rights Without Full Membership - The Delhi High Court affirmed that the privileges extended to dependents beyond the age of 21 were at variance with the Club’s AoA. The Court held that such privileges were inherently temporary and could not be construed as vested rights in the absence of full membership. The decision of the Single Judge to deny interim relief was found to be well-reasoned, non-arbitrary, and firmly grounded in legal precedent regarding interlocutory injunctions.

NCLAT Chennai Denies Condonation of Inordinate Delay: Appeal Filed 2659 Days Late under Section 421(3) of Companies Act Dismissed - In this decision, the NCLAT, Chennai, has unequivocally clarified that the limitation period under Section 421(3) of the Companies Act, 1956, is inviolable beyond the statutorily prescribed maximum of 90 days. The responsibility lies with appellants to act diligently and pursue remedies within this period, including making timely applications for certified copies of relevant orders. Failure to do so—even in cases where the appellant alleges lack of knowledge due to ex parte proceedings—will not be condoned if the limitation period is grossly exceeded. The actionable takeaway is that parties must vigilantly monitor the progress of proceedings and take prompt steps to secure necessary documents for appeal within the limitation period to avoid forfeiting their right to appellate remedy.

SEBI Slaps Rs. 1 Lakh Penalty on Research Analyst for Delayed Annual Audit under RA Regulations: Upholds Accountability and Regulatory Compliance - SEBI’s decision makes it clear that timely conduct of annual audits is not merely a procedural formality, but a substantive requirement designed to uphold the integrity of the securities market. Research analysts must treat annual audit obligations as a critical compliance function. Any lapse, especially where compliance is only triggered by regulatory inquiry, will invite penal consequences. Firms should proactively schedule and complete annual audits and ensure timely submission to SEBI to mitigate enforcement risks.

SAT Upholds SEBI’s Decision: Recovery Proceeds from IL&FS Default to be Equally Distributed Among All Investors Post Scheme Reopening by Motilal AMC - Based on the facts and applicable law, the Securities Appellate Tribunal held that there was no legal or regulatory basis to set aside SEBI’s order. The Tribunal dismissed the appeal, upholding that the proceeds from recoveries on defaulted IL&FS commercial papers should be proportionately distributed among all investors holding units at the time of realization, including those who joined after the scheme’s reopening. The action of Motilal AMC in reopening the scheme and accepting new investments was found to be in compliance with the law and industry practice.

Supreme Court Sets Aside Remand in Disputed Share Transfer Amidst Winding Up; Orders High Court to Decide Appeal Maintainability First - The Supreme Court’s decision underscores the primacy of adjudicating threshold issues such as maintainability before examining the substantive aspects of any litigation. In the context of company winding-up and asset transfers—especially where regulatory embargoes and provisional liquidation are involved—judicial scrutiny must begin with procedural compliance. The High Court has thus been mandated to first decide whether the respondents’ appeals are maintainable before considering the factual disputes on share ownership and payment.

SEBI Slaps ₹5 Lakh Penalty on Entity for Engaging in Reversal Trades Creating Artificial Volumes in BSE Stock Options - In light of the evidence and the Noticee’s non-cooperation during the adjudicatory process, SEBI concluded that the Noticee had violated Regulations 3(a)-(d), 4(1), and 4(2)(a) of the 2003 Regulations, read with Section 12A of the SEBI Act, 1992. Consequently, a penalty of ₹5 lakh was imposed under Section 15HA, reinforcing the regulator’s commitment to maintaining market integrity and deterring manipulative activities. Entities facing similar allegations should ensure active and timely participation in regulatory proceedings to present their defense, failing which adverse inferences are likely to be drawn.

SEBI Cracks Down on Broker’s Spoofing Tactics; Directors Found Vicariously Liable for Market Manipulation Under PFUTP Regulations - In light of the compelling evidence and the gravity of the violations, SEBI concluded that PWAPL and its directors had engaged in practices constituting market abuse, in clear contravention of Section 12A of the SEBI Act and Regulations 3 and 4 of the PFUTP Regulations. The interim order was warranted to prevent further market distortion and to protect the interests of the investing public by insulating the market from manipulative actors.

SAT Overturns SEBI’s Insider Trading Order: Long-Term Holding and One Phone Call Not Enough for Violation in Aptech Case - Based on the available evidence and the legal framework, SAT decisively held that the mere existence of a single phone call and the subsequent long-term holding of shares do not satisfy the legal threshold for establishing insider trading under Regulation 4 of the PIT Regulations, 2015. The finding emphasizes the importance of substantial and corroborative evidence in proving violations relating to UPSI. As a result, SAT set aside SEBI’s order, allowing the appeal and exonerating the appellants from all charges of insider trading in Aptech shares.

High Court's Decision to Release Funds Reversed by Supreme Court: Investigation Preserved - The Supreme Court’s decision serves as a vital reminder of the balance between judicial interventions and ongoing criminal investigations. It reinforces that courts should exercise caution when engaging with cases where investigations are incomplete, particularly in matters involving financial transactions linked to fraudulent activities. Therefore, it is prudent for parties involved in similar circumstances to refrain from seeking premature judicial relief that can disrupt investigative procedures.

Gujarat High Court Rules Against Malicious Prosecution Over Non-Compliance With Companies Act - This judgment reinforces the criticality of adherence to established accounting standards when addressing related party transactions. It underscores the principle that prosecutorial actions must be anchored in substantive legal requirements. The ruling further signals a judicial commitment to upholding individual rights against unmeritorious allegations, thereby advocating for a more rigorous examination of conditions before initiating criminal proceedings. Practitioners should take heed to ensure that compliance with the Companies Act and associated standards is thorough to safeguard against potential legal repercussions.

Tribunal Upholds Validity of Corporate Actions Amidst Allegations of Oppression and Mismanagement - This decision confirms the power of the Tribunal to address and investigate claims of corporate malfeasance while maintaining the primacy of shareholder agreements and management rights. Companies must ensure proper documentation and transparency in financial dealings to mitigate risks of mismanagement claims. Companies should conduct regular audits and maintain open lines of communication with their shareholders to fend off potential disputes.

Supreme Court Mandates Clarity on Builder-Homebuyer Disputes under Real Estate Act - The Supreme Court's ruling delineates the responsibilities of both builders and home buyers while reaffirming the significance of procedural compliance before reaching the stage of contempt. Home buyers facing similar disputes should prioritize engaging with RERA to address any contested demands, thus potentially avoiding lengthy and complex contempt proceedings. This decision reinforces the need for home buyers to take proactive steps in settling disputes directly with builders through established legal channels rather than resorting to contempt actions prematurely.

Bombay High Court Clarifies Stamp Duty Computation on Demerger of Consumer Mobile Business - The Bombay High Court in its ruling reinforces the critical necessity of adhering strictly to the statutory guidelines laid out in Article 25 (da) of the Maharashtra Stamp Act regarding the computation of stamp duty in Schemes of Arrangement involving demergers. The correction of assessing stamp duty based on the market value of shares issued instead of 'enterprise value' or 'net worth' ensures compliance with legal requirements, underscoring the importance of accurate valuation methods for tax obligations. Tax practitioners and corporate entities must now ensure clarity in share valuation methods deployed to prevent similar miscalculations.

CESTAT Kolkata Affirms Concessional Excise Duty for Bamboo Mat Products; Extended Limitation Period Rejected Due to Full Disclosure - This decision confirms that manufacturers of “Bamboo Mat Corrugated Sheets” and “Bamboo Mat Ridge Caps” are entitled to the concessional rates of excise duty under Notification No. 01/2011-C.E. and Notification No. 16/2012-C.E., as these are functionally the same as “Bamboo Mat Board.” The denial of concessional rates and confirmation of demands in the impugned orders was not legally tenable. Assessees should ensure that product classification is based on tariff heading and material/process identity, and maintain transparent communication with the department to avoid allegations of suppression.

CESTAT Hyderabad Clarifies Cenvat Credit Reversal: Separate Accounts Mandate and Proportionate Payment Options for Dutiable and Exempted Goods Manufacturers - Manufacturers producing both dutiable and exempted goods must stringently comply with Rule 6(2) of the Cenvat Credit Rules, 2004 by maintaining separate records for inputs and input services. In case of failure, the manufacturer may opt for one of the alternatives under Rule 6(3) for reversal or payment, with the specific option to be chosen by the assessee for periods post-01.04.2008. For periods prior to 01.04.2008, only the quantified demand as per the then extant Show Cause Notices or the retrospective option (if availed) is permissible. Extended period invocation for demand is not sustainable in the absence of clear evidence of willful misstatement or suppression. Manufacturers should proactively document and segregate input usage to avoid disputes and optimize available options for reversal or payment under evolving rules.

CESTAT Delhi Upholds Cash Refund of CENVAT Credit for CVD and SAD Paid Post-GST Despite Non-fulfilment of Export Obligation - Based on the above findings, the CESTAT, New Delhi, held that the appellant is entitled to a cash refund of the CENVAT credit for CVD and SAD paid on imports post-implementation of GST, as per section 142(3) of the CGST Act, 2017. The Department’s objections based on inapplicable case law and extraneous grounds were dismissed.

Extended Limitation Upheld for CENVAT Credit Irregularity on Customs Education Cesses Due to Appellant’s Suppression in Returns: CESTAT Kolkata - The CESTAT Kolkata has clearly established that where an assessee intentionally suppresses material information regarding the availment of CENVAT Credit—particularly by not disclosing the nature and quantum of credit on Customs Education Cess and Secondary & Higher Education Cess in their statutory returns—the Department is entitled to invoke the extended period of limitation for recovery. Non-cooperation with departmental verification further strengthens the Department’s case for demand and imposition of penalty. Assessees must therefore ensure complete and accurate disclosure in returns and respond promptly to departmental queries to avoid exposure to extended limitation and penal consequences.

CESTAT Allahabad Overturns Penalty in R-22 Gas Smuggling Case: No Conspiracy Without Co-Conspirator, Natural Justice Violated - On careful appraisal, the CESTAT Allahabad held that:
(i) No sustainable case for imposition of penalty under Section 112(a)(i) of the Customs Act, 1962, is made out against the appellant in light of the absence of a proven conspiracy and the exoneration of the purported co-conspirator.
(ii) The absence of any declaration or document filed by the appellant precludes the invocation of Section 114AA for penalty.
(iii) The denial of cross-examination, coupled with non-compliance with Rule 9D, vitiated the proceedings due to breach of natural justice.

Delhi High Court Sets Aside Penalty on Customs Broker Due to Absence of Specific Allegations in Show Cause Notice and Lack of Factual Analysis by CESTAT - Based on the facts of the present case, the Delhi High Court concluded that the absence of specific allegations in the Show Cause Notice and the lack of any factual analysis in the CESTAT order constituted serious procedural lapses. Nonetheless, owing to the negligible quantum involved, the Court declined to interfere further, but the decision serves as a clear caution to authorities to ensure future proceedings are in strict conformity with legal requirements for specificity and reasoned adjudication.

Supreme Court Dismisses Revenue’s Appeals on Pea Classification Refund Due to Unexplained Delay and Non-Mandatory Appeal Against Self-Assessment - In this case, the Supreme Court’s dismissal of the Revenue’s Civil Appeals, based on significant and unexplained delay, effectively upholds the Tribunal’s order favoring the importers. It reinforces the principle that refund claims are not contingent upon the prior filing of appeals against self-assessed Bills of Entry, unless specifically mandated by law. The outcome preserves the importers’ entitlement to refunds where classification disputes are resolved in their favor, even in the absence of appeals against self-assessment.

CESTAT Bangalore Rules Quick Lime with 92% Purity to be Classified Under CTH 2522 1000, Not Residuary CTH 2825 9090 - Based on the chemical analysis showing 92% purity and the specific language of the Customs Tariff, imported Quick Lime in this instance is to be classified under CTH 2522 1000. The decision reaffirms that the specific tariff entry takes precedence over a residuary entry unless the product strictly meets the requirements (here, 98% purity for CaO) for the latter.

Gujarat High Court Emphasizes Judicial Discipline: Refund Calculation to Consider Total Duty Paid Across All Products Under Area-Based Exemption; Precedent Binding on Successor Authorities - The Gujarat High Court has categorically held that where an order by the Commissioner (Appeals) attains finality, especially on a point of law regarding the computation of refund under area-based exemption, authorities of equal rank, including successors, are bound to strictly follow such order. Any attempt to revisit or contradict such a settled position without a change in law or a decision from a higher authority is impermissible and violative of judicial discipline. Writ jurisdiction can be invoked to quash orders that disregard binding precedents, thereby reaffirming the need for administrative consistency and fairness.

CESTAT Mumbai Quashes Duty Demand for Non-Submission of Re-Warehousing Certificates; Faults Both Customs and Appellant for Procedural Lapses in EOU/SEZ Transactions - The CESTAT’s decision underscores the need for both the assessee and the department to fulfill their respective procedural obligations. While the appellant failed to provide the required re-warehousing certificates or any collateral proof, the department also did not attempt alternative verification as mandated by circulars and the Tribunal’s own orders. The Tribunal ruled that a demand based solely on non-submission of certificates, without substantive verification, cannot be upheld. The order of the Commissioner (Appeals) was set aside and the appeal allowed.

CESTAT Mumbai Confirms Cash Refund of CVD and SAD under Section 142(3) of CGST Act Where Credit Not Availed Post-GST Implementation - In summary, the CESTAT Mumbai has held that where a taxpayer is unable to avail cenvat credit of CVD and SAD due to the introduction of GST and has borne the tax incidence themselves, they are entitled to a cash refund under Section 142(3) of the CGST Act, 2017, read with Section 11B(2) of the Central Excise Act, 1944. The actionable step for taxpayers is to ensure proper documentation demonstrating that the tax incidence was not passed on, in order to successfully claim such refunds during the transition period.

CESTAT Delhi Affirms Industrial Cement in Packaged Form Eligible for Entry 1A Benefit Despite RSP Affixation; Rejects Duty Demand under Entry 1C - Based on the Tribunal’s findings, it is actionable for assessees to claim the benefit of Entry No. 1A of Notification No. 4/2007-CE for clearances of cement in packaged form to industrial/institutional buyers, even where RSP is affixed. The mere presence of RSP on the package does not imply that the sale is to a retail consumer if the factual sale is to an institutional/industrial consumer. Adjudicating authorities cannot deny the benefit of Entry 1A based solely on the presence of RSP or the nature of the buyer when the packaging condition is fulfilled.

Supreme Court Upholds Penalty on Customs Cargo Service Provider for Revenue Loss Due to Smuggling of Red Sanders: Indemnification and Penalty Confirmed - From the Supreme Court’s refusal to interfere, it is clear that the liability of Customs Cargo Service Providers for the safety and security of goods within their custody is strict and non-delegable. Custodians must be vigilant in preventing losses, especially those arising from smuggling or negligence, failing which both indemnification and penalty provisions can be enforced by revenue authorities without leniency.

Bombay High Court Commands Expeditious Issuance of MEIS Scrips Despite Delay in Bank Realization Certificate Uploads - The Bombay High Court’s decision underscores that administrative or systemic delays, particularly in uploading required banking documentation, should not deprive exporters of their substantive entitlements under government incentive schemes. The authorities have been directed to process and release all uncontested MEIS scrips expeditiously, and to allow exporters an opportunity to explain and substantiate any procedural lapses for delayed applications. Exporters facing similar circumstances should ensure they maintain comprehensive records and be prepared to substantiate the reasons for any procedural delays.

Bombay High Court Sets Aside Customs Classification Order on Seaweed Extract for Failure to Disclose Relied Documents and Inconsistent Reasoning - Based on the above findings, the impugned classification order was quashed for having been passed without supplying the relied-upon documents to the petitioner and for failing to provide reasoned findings on pivotal issues, including the prior classification and the test report. The matter has been remanded to the adjudicating authority for a fresh hearing, with explicit directions to supply all documents referenced in the SCN and to pass a reasoned, speaking order thereafter.

Delhi High Court Affirms Anticipatory Bail in 57 Kg Gold Smuggling Case: Apprehension of Arrest Held Genuine Amidst Repeated DRI Summons - The Delhi High Court has reaffirmed that anticipatory bail, once granted after due consideration of the facts—including the status of evidence, the conduct of the investigating authorities, and the Respondents’ apprehension of arrest—should not be recalled or cancelled in the absence of compelling new circumstances. Investigative agencies must do more than make oral assurances to negate a well-founded fear of arrest when repeated summons are issued in serious economic offenses like gold smuggling.

CESTAT Kolkata Quashes CENVAT Credit Denial Where Goods Found Utilized in Manufacturing Despite Absence of Supplier Logo - The CESTAT Kolkata held that disallowance of CENVAT credit solely on the basis of the absence of a supplier’s logo, without any cogent evidence suggesting non-receipt of goods, is unsustainable in law. Where statutory registers and physical evidence of use are available, the department must bring positive evidence to the contrary to justify disallowance. As such, the impugned order denying credit, along with consequential interest and penalties, was set aside.

CESTAT Kolkata Nullifies Excise Demand: Presumptive Input-Output Ratios and Electricity Consumption Insufficient to Establish Clandestine Removal - The CESTAT Kolkata decisively ruled that excise demands based solely on input-output ratios and electricity consumption, without supporting direct or corroborative evidence of clandestine removal, are legally untenable. The absence of evidence such as statements from buyers, transporters, or documents evidencing cash transactions, as well as failure to consider all relevant production parameters, renders such demands unsustainable. Consequently, penalties on company officials premised on such demands are also liable to be set aside.

CESTAT Delhi Bars Reopening Post-SVLDRS Discharge Certificate: No Fresh Demand Permitted After Settlement for Pre-30.06.2019 Show Cause Notice - Given that the discharge certificate under SVLDRS has been duly issued to the appellant for the show cause notice dated 18.09.2017, any further proceedings or demands pertaining to the same matter, including those confirmed in the impugned adjudication order, are legally untenable. Actionable step: Assessees who have received discharge certificates under SVLDRS should assert the conclusiveness of such settlement and resist any attempt by authorities to reopen concluded matters, except in cases of voluntary disclosure as per the statutory proviso.

CESTAT Delhi Upholds CENVAT Credit on Input Services for Factory Setup Post-2011 Amendment Despite Deletion of Specific Phrase - In light of the Tribunal’s decisions in Kellogs India and Pepsico India, CENVAT credit on input services utilized for setting up a factory remains admissible under Rule 2(l) of the Cenvat Credit Rules, 2004, notwithstanding the deletion of the explicit phrase "setting up of factory." Unless and until the cited Tribunal decisions are set aside by a competent higher judicial forum, they are binding on tax authorities, and the denial of such credits is unsustainable.

Delhi High Court Upholds MEIS Denial for Exports to Egypt, Algeria, Libya, and Romania Due to Petitioner’s Delay in Availing Benefits Despite Timely Payment Realization - The High Court’s decision clarifies that exporters must proactively monitor the realization of export proceeds and strictly adhere to the procedural timelines for benefits like MEIS. Even where payments are received within the permissible period, failure to apply for benefits—including with late cut—can result in forfeiture of entitlements. Once the window lapses, policy relaxations are strictly discretionary, not a matter of right, and will be granted only in truly exceptional cases. Judicial review will not substitute for the PRC’s discretion unless its decision suffers from manifest arbitrariness or legal infirmity.

Rajasthan High Court Directs Refund of Interest on Customs Duty Paid During ECL Glitch Until 27.07.2023: Technical Failure Certified by D.G. Systems Overrides Earlier Waiver Cut-off - The High Court held that the Customs Department’s rejection of the interest refund was inconsistent with the combined reading of Section 47 and Section 27 of the Customs Act, the Customs (Waiver of Interest) Order dated 17.04.2023, and the D.G. Systems’ advisory dated 27.07.2023. The court directed the authorities to refund any interest collected for the period of system inability certified by the D.G. Systems, provided the importer had made bona fide attempts to pay the duty.

CESTAT Kolkata Upholds Absolute Confiscation and Penalty in Black Pepper Smuggling Case; Fictitious Intermediary Claim Rejected - In summary, the CESTAT found that the appellant's plea regarding the involvement of a non-existent intermediary was a deliberate ploy to evade liability for smuggling. The appellant failed to substantiate any legitimate acquisition or ownership of the black pepper, and the circumvention of statutory import channels was established. The absolute confiscation of the goods and the imposition of a penalty were justified and proportionate. Parties in similar situations must ensure that all transactions are well-documented, and the use of unverified intermediaries is strictly avoided.

CESTAT Chennai Directs Fresh Adjudication on Overlapping Customs Penalties for Misdeclaration and Undervaluation: Combined Penalty Ruled Non-Applicable - In light of the CESTAT’s decision, Adjudicating Authorities must exercise caution and a clear understanding of the statutory framework when imposing penalties under the Customs Act. They must avoid overlapping penalties for the same act or omission, especially in light of the fifth proviso to Section 114A. Authorities are now mandated to distinctly apply the relevant penalty provisions based on the specific facts and legal requirements of each case, after providing a fair hearing to the assessee.

CESTAT Upholds CENVAT Credit Eligibility for Input Services Linked to Factory Setup Despite Post-2011 Definition Change - Based on the Tribunal’s analysis and binding precedents, CENVAT credit under Rule 2(l) of the Cenvat Credit Rules, 2004, continues to be available for input services used in setting up a factory, even after the definition change from April 1, 2011. The actionable outcome is that assessees can lawfully claim such credits so long as the services are not expressly excluded and are used in relation to the manufacture, directly or indirectly.

CESTAT Kolkata Upholds Refund Under Substantial Expansion Exemption Despite Seven-Year Delay: No Separate Refund Claim Required Where RT-12/ER-1 Returns Filed - The Tribunal concluded that the assessee satisfied the substantive condition of 25% capacity expansion as required by Notification No. 33/99-C.E. dated 08.07.1999, and that continuous monthly RT-12/ER-1 filings sufficed to claim the refund. Relying on the Gauhati High Court’s decision in MK Jokai Agri Plantations, the Tribunal held that procedural delay, in the presence of ongoing compliance and eligibility, does not justify denial of the benefit. Therefore, the refund was correctly sanctioned, and the Revenue’s appeal was dismissed.

CESTAT Chennai Allows Refund of Duty Paid on Coconut Oil in Small Packs Following Withdrawal of Circular—Classification Dispute Resolved in Favour of Assessee - The CESTAT unequivocally held that the rejection of the appellant’s refund claims was unjustified, as the very foundation of the demand (the CBEC circular) no longer existed. As the legal basis for classification under Chapter 33 was removed, and judicial pronouncements consistently favoured classification under Heading 1503, the appellant was entitled to a refund of the excise duty (or equivalent deposits) paid during the disputed period.

CESTAT Kolkata Upholds Classification of Polypropylene Non-Woven Fabrics under CETH 5603, Rejects Revenue’s Chapter 39 Claim for Lack of Evidence - The CESTAT Kolkata held that non-woven fabrics manufactured from polypropylene fibers, which are not wholly embedded or coated with plastics, are rightly classifiable under Chapter 56, Heading 5603, as non-woven fabrics of man-made filaments. The absence of any substantive evidence or technical analysis from the Revenue to support classification under Chapter 39 was decisive. The Tribunal’s decision reinforces the importance of laboratory reports and consistent classification practice in tariff disputes.

CESTAT Ahmedabad Nullifies Penalty on Export Agent: Absence of Direct Evidence and Flawed Reliance on Statements under Section 108 of Customs Act in Alleged Peacock Feather Export Case - In light of the absence of direct evidence, lack of opportunity for cross-examination, and the failure to establish the appellant's active involvement or mens rea, the penalty imposed under Section 114(i) of the Customs Act, 1962, cannot be sustained. The CESTAT Ahmedabad, therefore, set aside the impugned order dated 13.05.2012, and allowed the appeal, providing relief to the appellant. Adjudicating authorities must scrupulously adhere to principles of natural justice and evidentiary standards before imposing penalties.

CESTAT Kolkata Rules Enhanced Customs Duty Inapplicable Where Notification Published After Entry Inward Date: Crude Palm Oil Bills Entitled to Lower Duty Rate - Based on the above findings, CESTAT, Kolkata, categorically held that Notification No. 87/2017-Cus. dated 17.11.2017 did not attain legal effect until its publication in the Official Gazette on 20.11.2017. Since the relevant “entry inward” dates were prior to the date of publication, the appellant was not liable to pay the enhanced BCD rate of 30%. Accordingly, the appellant is entitled to a refund of the excess customs duty paid, along with applicable interest as per statutory provisions.

Exemption from specified income U/s 10(46A) of IT Act 1961 - Greater Noida Industrial Development Authority

U/s 138(1) of IT Act 1961 - Central Government specifies ‘Secretary to the Government of Maharashtra, Women and Child Development’

Zero Coupon Bond - Specified bond notified u/s 2(48) of the Income-tax Act, 1961

Corrigendum - Notification No. 44/2025, dated 06th May, 2025

Corrigendum - Notification No. 41/2025 dated 30th April, 2025 - 50/2025 - Income Tax

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
Goods and Services Tax Appellate Tribunal (Procedure) Rules, 2025
Instructions for processing of applications for GST registration
Adoption of Standardised, Validated and Exclusive UPI IDs for Payment Collection by SEBI Registered Intermediaries from Investors
Companies (Filing of Documents and Forms in Extensible Business Reporting Language) Amendment Rules, 2025
International Financial Services Centres Authority (Capital Market Intermediaries) Regulations, 2025
Extension of timeline of additional liquidation period for VCFs migrating to SEBI (Alternative Investment Funds) Regulations, 2012
Companies (Accounts) Second Amendment Rules, 2025
Appointment of Common Adjudicating Authority for the purpose of finalization of Provisional Assessment in SVB case w.r.t. M/s Bando(India) Pvt. Ltd.
Fixation of Tariff Value of Edible Oils, Brass Scrap, Areca Nut, Gold and Silver
Fixation of one new Standard Input Output Norms (SIONs) at SION A-3686 under 'Chemical and Allied Product' (Product Code 'A')
Seeks to impose Anti Dumping Duty on imports of ‘Insoluble Sulphur’ originating in or exported from China PR and Japan.
Seeks to impose Anti Dumping Duty on imports of “ Vitamin -A Palmitate” originating in or exported from China PR, European Union and Switzerland.
Implementation of "Agreement" signed between FSSAI, Ministry of Health and Family Welfare, Government of India and Bhutan Food and Drug Authority (BFDA)
Central Government de-notifies an area of 282.7351 hectares, thereby making resultant area as 305.9163 hectares at Gopalpur, District Ganjam, in the State of Odisha
Special Economic Zones (Amendment) Rules, 2025
Removal of Port Restrictions and Testing Requirements for Export of Finished Leather, Wet Blue Leather, El Tanned Leather and Crust Leather
Sea Cargo Manifest and Transshipment (Third Amendment) Regulations, 2025

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