TaxCorp Total Solution

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

13-09-2024 (2024) TaxCorp(IDT) 8771 (Excise)

SC - Supreme Court Dismisses Revenue's Appeal Due to 412-Day Delay in Filing: 'Minute Maid Nimboo Fresh' Classification Dispute.

13-09-2024 (2024) TaxCorp(IDT) 8786 (GST)

AAR - GST on Ancillary Charges: Tamil Nadu AAR Rules Against DISCOMs.

13-09-2024 (2024) TaxCorp(IDT) 8789 (GST)

HC - Allahabad High Court Overturns GST Registration Denial Post-NCLT Resolution Plan Approval.

13-09-2024 (2024) TaxCorp(IDT) 8790 (GST)

HC - Gauhati High Court Orders Probe into Fabricated GSTIN of Winning Bidder in Simla Market Tender.

13-09-2024 (2024) TaxCorp(IDT) 9526 (Service Tax)

CESTAT : CESTAT Rules on Payment Processing Services Classification for Airbnb Payments India

13-09-2024 (2024) TaxCorp(IDT) 9527 (Excise)

HC : Bombay High Court Cancels Show Cause Notice (SCN) After 6-Year Delay, Calling it Unjustified and Abusive of Power

13-09-2024 (2024) TaxCorp(IDT) 9528 (Service Tax)

CESTAT : CESTAT Ahmedabad Renders Decision on Service Tax Liability Related to Mutual Fund Promotion

13-09-2024 (2024) TaxCorp(IDT) 9529 (Customs)

HC : Bombay HC Voids Revenue’s Imposition of Conditions for Goods Repatriation

12-09-2024 (2024) TaxCorp(IDT) 8862 (GST)

HC - Bombay High Court Sets Aside Service Tax Recovery Notice Due to Natural Justice Breach.

12-09-2024 (2024) TaxCorp(IDT) 8869 (Customs)

HC - Bombay High Court Quashes Fresh Demand Notice Issued Decades After Initial SCN, Citing Customs Department's Inaction and Expired Warehouse Bond.

12-09-2024 (2024) TaxCorp(IDT) 8870 (Excise)

CESTAT Declares Electronic Evidence Inadmissible in Central Excise Duty Case Against Fireworks Manufacturer

12-09-2024 (2024) TaxCorp(IDT) 8871 (Excise)

CESTAT - Freight Charges for FOR Deliveries Excluded from Assessable Value: CESTAT Ruling.

12-09-2024 (2024) TaxCorp(IDT) 8872 (Service Tax)

CESTAT - CENVAT-Credit Refund Granted on Apartment Bookings Cancellations: Legal Rights Affirmed.

12-09-2024 (2024) TaxCorp(IDT) 9510 (Customs)

CESTAT : CESTAT Ahmedabad Reinstates Refund Claim for Excess Customs Duty Due to Variation in Export Weight

12-09-2024 (2024) TaxCorp(IDT) 9511 (Customs)

HC : Madras HC Sets Aside Revenue's Differential Duty Demand on Asahi India Glass Ltd. Over Glass Classification

12-09-2024 (2024) TaxCorp(IDT) 9512 (VAT)

HC : Telangana High Court Upholds the Finality of Decision Under Amnesty Scheme Against Revenue's Attempt to Reopen Settled Issues

12-09-2024 (2024) TaxCorp(IDT) 9514 (Customs)

HC : Volvo Group Wins Jurisdictional Ruling in Bombay HC on Customs Rebate Rejection

12-09-2024 (2024) TaxCorp(IDT) 9515 (Excise)

CESTAT : CESTAT Bangalore Grants Excise Duty Credit on Captively Consumed Molasses for Distillery Use, Upholding Precedents

12-09-2024 (2024) TaxCorp(IDT) 9516 (GST)

HC : E-Way Bill Expiry Leads to Quashing of Penalty by Allahabad High Court: A Technical Error Resolved

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

13-09-2024 (2024) TaxCorp (FEMA-INTL) 18639 (ITAT-SAFEMA)

Court Upholds Seizure of Rs.54 Lakh in Foreign Currency Despite Retraction Claims - The appellate court decisively ruled against the appellant, affirming the seizure and imposition of penalties under FERA based on clear evidence of currency contraventions. The reliance on purported retractions was rendered ineffective due to insufficient documentation and substantial evidence of non-compliance with foreign exchange regulations, leading to actionable conclusions which highlight the necessity for individuals engaging in currency transactions to ensure compliance with FERA guidelines.

13-09-2024 (2024) TaxCorp (FEMA-INTL) 18638 (ITAT-SAFEMA)

FEMA Proceedings: Tribunal Upholds Enforcement Actions on Black Money Amid Legal Controversies Involving Foreign Assets - The Appellate Tribunal's affirmation of provisions under FEMA, 1999, specifically Section 37A, highlights the legal rigor and the low evidentiary threshold required to initiate proceedings regarding foreign assets. This decision underscores the necessity for individuals and entities holding foreign assets to maintain stringent compliance with regulatory frameworks, as even benign assumptions and information sharing lead to significant enforcement actions by authorities. Tax planning strategies should hence focus on explicit disclosures and compliance with domestic and international tax laws to mitigate the risk of invasive scrutiny by tax and regulatory authorities.

12-09-2024 (2024) TaxCorp (INTL) 18637 (HC-BOMBAY)

Income Tax - Section 127 - High Court Upholds Tax Case Transfer from Mumbai to Delhi, Emphasizing Procedural Justification and Adequate Legal Basis - The High Court's decision underscores the importance of procedural integrity in tax-related assessments. The ruling affirms that absence of a personal hearing, when exercised with justifiable discretion, does not nullify transfer orders under Section 127. Assessees should ensure compliance with authorities to defend their interests effectively.

12-09-2024 (2024) TaxCorp (INTL) 18636 (ITAT-CHENNAI)

Income Tax - Sections 35D, 90, 92CA, 115JB - Tax Relief Matters Resolved for Offshore Drilling Services Company: Deduction Claims Approved - The Tribunal's decision emphasizes the importance of recognizing the admissibility of deductions claimed under Sections 35D and 90 of the Income Tax Act, as well as upholding the rights of assessees to receive appropriate tax credits, especially concerning interest income and MAT. Taxpayers should ensure robust documentation and timely submissions to facilitate the review process when pursuing such claims.

12-09-2024 (2024) TaxCorp (INTL) 18635 (ITAT-MUMBAI)

Income Tax - Sections 147, 240 - Tax Tribunal Rules Against AO's Miscalculation on Insurance Policy Surrender; Indexation Benefits Affirmed for Non-Resident Assessee - The Tribunal's deliberations underscore the necessity for the Assessing Officer to comply with the DRP's directives, specifically concerning the application of indexation benefits. By rectifying the calculation of capital gains and allowing the appropriate refunds inclusive of interest, non-resident assessees like the appellant can safeguard against erroneous assessments and unwarranted financial burdens.

12-09-2024 (2024) TaxCorp (INTL) 18634 (ITAT-MUMBAI)

Income Tax - Sections 9(vii), 144C, 234A, 234B - Fees for Technical Services: ITAT Rules on Management Fees Classification in Tech Data (Singapore) Pte Limited Case - The Tribunal's ruling in Tech Data (Singapore) Pte Limited underscores the critical assessment of management fees against the stringent definitions of FTS under both domestic law and international agreements. As a result of the Tribunal's pronounced stance, it is imperative for taxpayers engaging in cross-border management services to meticulously evaluate the nature of their service offerings to avoid misclassification and subsequent tax liabilities.

12-09-2024 (2024) TaxCorp (INTL) 18633 (ITAT-MUMBAI)

Income Tax - Section 143(1) - ITAT Upholds CIT(A) Ruling, Dismisses Revenue’s Claim on Share Application Money, Affirms Assessee's Rightful Income Declaration - The ITAT ruling underscores the importance of maintaining thorough documentation and clear representations concerning sources of share capital and application money, where the presumption of utilizing interest-free loans plays a crucial role. For taxpayers, this reaffirms the critical nature of aligning actual funds’ utilization with legal provisions to uphold declarations made in income statements.

12-09-2024 (2024) TaxCorp (TP) 18632 (ITAT-MUMBAI)

Income Tax - Section 15B - ITAT Rules on ESOP Tax Treatment and Employer's Tax Liability - In light of the ITAT’s ruling affirming the CIT(A)’s decision, it is critical for businesses issuing ESOPs to ensure that their financial reporting accurately reflects the nature of tax payments made. Employers should not include these tax payments as deductions in their book profit computations under Section 115JB, thus safeguarding against potential disputes with tax authorities. It is advisable for companies to conduct a thorough analysis of tax implications arising from employee benefits to avoid challenges in tax assessments.

12-09-2024 (2024) TaxCorp (TP) 18631 (ITAT-DELHI)

Income Tax - Section 92CA - ITAT Validates Assessee's Claim on Management Charges and Interest Adjustments - The ITAT's ruling underscores the principle that once working capital adjustments are made, they inherently account for the interest on receivables. Therefore, separate benchmarks for calculated notional interest become redundant. This precedent reinforces the necessity for practitioners to meticulously assess adjustments related to working capital before imposing separate benchmarks, thereby fostering a more robust understanding of profitability dynamics in transfer pricing.

12-09-2024 (2024) TaxCorp (FEMA-INTL) 18630 (ITAT-SAFEMA)

FEMA Offence Penalty Enhanced but Found Reasonable Considering Delay in Export Remittance Realization - The adjudication clarifies a key aspect of penalties under FEMA, emphasizing the nature of the infraction over the quantum of the penalty. This ruling affirms that delays in realization of export proceeds, when grounded in compliance with substantive regulation, may attract penalties that are not excessively punitive. Going forward, businesses engaged in export activities should maintain a robust compliance framework to ensure timely realization of foreign remittances, thereby mitigating the risk of penalties. It is imperative that exporters establish clear timelines and follow-ups for remittance collection to avoid even technical contraventions under FEMA.

12-09-2024 (2024) TaxCorp (FEMA-INTL) 18629 (ITAT-SAFEMA)

Court Upholds Penalties on Appellant for Unauthorised Foreign Currency Transactions – In-depth Analysis Reveals Fabrication of Agreements and Non-compliance with FEMA Provisions - The court's decision reinforces the imperative for strict adherence to foreign exchange regulations outlined in FEMA. The appellant’s case sought to circumvent established legal frameworks through unsubstantiated claims that lacked credible documentation and evidence. This decision mandates a resounding caution for taxpayers, indicating the importance of maintaining comprehensive records and compliance with prevailing laws regarding foreign currency transactions.

12-09-2024 (2024) TaxCorp (FEMA-INTL) 18628 (ITAT-SAFEMA)

FEMA Violation Case: Bogus Exports to Russia Insufficient for Cross-Examination, Tribunal Rules Against Appellant - In light of the evaluation of the proceedings and the robust nature of the evidence presented, it is concluded that Suresh Saluja’s attempts to disrupt the adjudication process through technicalities were insufficient to change the outcome. The tribunal’s decision illustrates the necessity for parties to engage actively and transparently in adjudicative proceedings. Thus, prospective defendants in similar cases must prepare their defenses comprehensively and promptly to avoid penalties that materially reflect on their compliance with FEMA regulations.

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

15-05-2024 (2024) TaxCorp(CL) 30271 (DELHI)

Court Invalidates Restoration of Dismissed Case Due to Non-Compliance with Procedural Norms - The current decision unequivocally reaffirms the lack of jurisdiction exercised by the learned Special Judge. With the quashing of both the restoration order and its derivative ramifications, the ruling underscores the necessity for judicial adherence to established legal principles, particularly those governing jurisdiction as articulated in past precedents. Future actions in cases of similar nature must ensure compliance with procedural protocols to prevent unwarranted restoration of dismissed complaints, facilitating a more structured legal process.

09-09-2024 (2024) TaxCorp(CL) 30270 (SC)

Validity of Share Transfer and Rectification Petition in Lexus Technologies Pvt. Ltd. Case - This decision emphasizes the imperative that NCLT must not only adhere strictly to the legal provisions under the Companies Act but also rigorously examine evidence presented before it. Future cases demanding rectification of share registers must ensure a comprehensive review of all relevant materials, confirm the validity of transactions, and ascertain the presence of any fraudulent activity to sustain justified conclusions. The failure to perform these duties could lead to a misapplication of justice that undermines the rights of parties involved.

06-09-2024 (2024) TaxCorp(CL) 30269 (NCLT)

Oppression and Mismanagement: Court Dismisses Appeal for Recall of Order due to Lack of Proper Legal Procedure - The Court’s decision to dismiss the appeal reinforces the importance of adhering to proper legal protocols in seeking recourse against judicial orders. Parties involved in litigation should ensure that all arguments and claims are presented in the initial proceedings and be aware of the appeal mechanisms available to them, as ignoring these can lead to a forfeiture of rights. The ruling serves as a cautionary tale, highlighting that failing to utilize appropriate legal remedies in a timely fashion may undermine one's position and former opportunities for redress.

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

05-09-2024 (2024) TaxCorp(IDT) 134215 (CESTAT-AHMEDABAD)

Tribunal Rules in Favor of Appellant in DTA Clearance Case Contrary to Adjudicating Authority's Assumptions - The Tribunal concluded that the benefit of doubt should favor the appellant due to the absence of evidence indicating the use of imported raw materials in the manufacturing process. Consequently, the denial of exemptions under Notification No. 13/98-CE was deemed unfounded and resolved in favor of the appellant, affirming the principles of evidence-based adjudication.

04-09-2024 (2024) TaxCorp(IDT) 134214 (CESTAT-KOLKATA)

Duty Liability Dispute Clarified for HSD and SKO Pipelines Following Confirmation of Payment - In light of the conclusive findings from this decision, it is actionable for similar entities to ensure meticulous communication regarding pipeline specifications and duty liabilities. Practitioners and businesses should maintain accurate records of all pipeline-related transactions and duty payments, ensuring that any correspondence with tax authorities is clear and documented to prevent unwarranted claims. Proactive measures in verifying pipeline pathways and consistent communication with the authorities can mitigate future disputes relating to duty claims.

03-09-2024 (2024) TaxCorp(IDT) 134213 (CESTAT-BANGALORE)

Job-Worker Duties in 100% EOU Operations Examined with Respect to Duty Liability and Time Limitation - The ruling clarifies that mere procedures must not eclipse the substantive rights of an assessee when it comes to excise duty liabilities. The verification of documentation produced by the appellant could substantiate exemptions or prior duty payments, resulting in a possible reduction in duty liabilities. Thus, appellants in similar job work scenarios should ensure that their compliance with the procedural requirements is adequately documented to reinforce their claims.

06-09-2024 (2024) TaxCorp(IDT) 134212 (SC)

Settlement Commission Grants Immunity from CVD Liability Following Invalid FIR Registration - In light of the current judgment, parties involved in similar disputes under tax liability frameworks should ensure that any engagement in legal settlements, such as those provided under tax incentive schemes, is formally recognized and appropriately documented to prevent subsequent unfounded legal actions. Assessees should remain vigilant regarding the procedural aspects of FIR registrations and the implications of immunity claims when navigating legal disputes related to tax and compliance obligations.

04-09-2024 (2024) TaxCorp(IDT) 134211 (SC)

Legal Classification Debate: Imported Goods Under Headings 8414 and 8503 Resolved by Tribunal - In the light of the Tribunal’s affirmance of the earlier classification, stakeholders involved in the importation of similar goods should conduct a comprehensive evaluation of the functionality and designated classification of their import items. This would ensure compliance with the Customs Tariff guidelines and avoid potential disputes. It is advisable for importers to consult with customs experts to validate the classification of their products prior to importation, to mitigate risks associated with misclassification and consequent legal action.

03-09-2024 (2024) TaxCorp(IDT) 134210 (HC-DELHI)

The Jurisdictional Flaw in Recovery Proceedings Against Deceased Exporter: Legal Ruling on Demand Notice - The court determined that notices and recovery actions initiated against a deceased person are null and void. Consequently, they must be rescinded, and any demands made or penalties levied based on such invalid notices are not enforceable. Practitioners must ensure that legal heirs are included in any proceedings when a debtor passes away to prevent procedural missteps and safeguard the integrity of the legal process.

03-09-2024 (2024) TaxCorp(IDT) 134209 (HC-MADRAS)

Court Grants Relief in Import of Highly Specialized Secondhand Digital Equipment Prior to Notification - This decision provides a pathway for petitioners similarly situated who may find themselves in limbo due to subsequent notifications affecting their prior imports. It underscores the importance of timeliness in initiating import processes and serves as a crucial cautionary note for importers regarding understanding the implications of regulatory timelines vis-à-vis their operational activities. Therefore, stakeholders are advised to file import documentation promptly and to seek provisional clearances when faced with imminent regulatory modifications.

06-09-2024 (2024) TaxCorp(IDT) 134208 (CESTAT-KOLKATA)

Dispute Over Classification of Imported Bed Sheets as Polyester Woven Fabrics Resolved in Favor of Assessees - In light of the decision, it is concluded that the imported bed sheets classified as "Polyester Woven Quilt Covers" should rightfully fall under CTH 6304, in keeping with their functional usage and market presentation. This classification not only aligns with the Tribunal's previous rulings but also safeguards the appellant against potential mis-declaration penalties.

13-02-2024 (2024) TaxCorp(IDT) 134207 (CESTAT-CHENNAI)

Court Reiterates Burden of Proof on Customs Authority in Mis-Declaration Cases, Upholding Importer's Classification Claims - The current decision reinforces the principle that mis-declaration claims against an importer must be substantiated with irrefutable evidence. In light of this ruling, importers should ensure they maintain thorough documentation and justify classification claims, while also being aware that any ambiguity must be addressed primarily by the Customs Department. This decision empowers future defense against unwarranted penalties due to mis-declaration accusations.

04-09-2024 (2024) TaxCorp(IDT) 134206 (HC-CALCUTTA)

Judicial Scrutiny of Detention Orders: Gold Smuggling Case Under COFEPOSA Ruling - The Supreme Court affirmed that the detention order under COFEPOSA stands robust against challenges pertaining to the non-application of mind. The court's emphasis on the necessity for material grounds for detention elucidates the importance of factual linkage in smuggling cases. Moving forward, legal practitioners should ensure that evidence supporting detentions under COFEPOSA is thoroughly documented and consistent, reinforcing the requisite burden of proof required to maintain such orders without judicial interference.

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Direct Tax

30-08-2024 NOTIFICATION NO. 101/2024

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

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

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

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

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

12-08-2024 NOTIFICATION NO. 99/2024

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

12-08-2024 NOTIFICATION NO. 100/2024

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

GST

10-09-2024 CGST - Circulars No. 230/24/2024-GST

Clarification in respect of advertising services provided to foreign clients.

10-09-2024 CGST - Circulars No. 231/25/2024-GST

Clarification on availability of input tax credit in respect of demo vehicles.

10-09-2024 CGST - Circulars No. 232/26/2024-GST

Clarification on place of supply of data hosting services provided by service providers located in India to cloud computing service providers located outside India.

10-09-2024 CGST - Circulars No. 233/27/2024-GST

Clarification regarding regularization of refund of IGST availed in contravention of rule 96(10) of CGST Rules, 2017, in cases where the exporters had imported certain inputs without payment of integrated taxes and compensation cess

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

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

Corp Law

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

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

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

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

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

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

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

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

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

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

IDT

12-09-2024 DGFT - Public Notice No. 23/2024-2025

Further abeyance of Public Notice No. 05/2024 dated 27.05.2024 until 31.10.2024

12-09-2024 NOTIFICATION NO. 60/2024-CUSTOMS (N.T.)

Courier Imports and Exports (Electronic Declaration and Processing) Amendment Regulations, 2024.

12-09-2024 SEZ - NOTIFICATION No. S.O. 3906(E)

Central Government de-notifies an area of 4.37 hectares, thereby making resultant area as 1.40 hectares at Puppalguda Village, Rajendra Nagar Mandal, Ranga Reddy District, in the State of Telangana

12-09-2024 SEZ - NOTIFICATION No. S.O. 3918(E)

Central Government rescinds the Notification Number S.O. 3025 (E) dated 11.09.2017

11-09-2024 Notification No. 05/2024-Customs (CVD)

Seeks to levy countervailing duty on 'Atrazine Technical' originating in or exported from China PR , in pursuance of final findings issued by DGTR

11-09-2024 SEZ - NOTIFICATION No. S.O. 3905(E)

Central Government rescinds the Notification No. S.O. 4775 (E) dated 16.11.2021

11-09-2024 SEZ - NOTIFICATION No. S.O. 3917(E)

Central Government rescinds the Notification No. S.O. 1909(E) dated 04.08.2010

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

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

09-09-2024 SEZ - NOTIFICATION No. S.O. 3881(E)

To set up a FTWZ at Athipattu, Nandiambakkam and Puludivakkam Villages, Ponneri Taluk, Tiruvalur District in the State of Tamil Nadu.

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

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

Budget 2024-25

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

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