Leniency in condonation of delay urged; courts may apply a liberal approach and decide appeals on merits.
Condonation of delay in GST appeals requires reconciling statutory appeal time limits with the principle of substantial justice; while Section 107 prescribes the appeal period and limited condonation power, courts have endorsed a liberal, pragmatic approach when delay arises without gross negligence or mala fides, directing that appeals be considered on merits rather than rejected automatically for limitation where explanations are satisfactory, and signalling that appellate authorities should reconsider such matters in accordance with law. (AI Summary)

Validity of service tax on ocean freight: refund compliance paused pending final determination of the levy's constitutional validity.
Compliance with a tribunal order granting refund of service tax on ocean freight under reverse charge is to be deferred pending the final decision on the levy's constitutional validity; tax authorities are authorised not to execute the refund order until that appeal is resolved, thereby suspending effectuation of refunds for SEZ input services comprising ocean freight until the constitutional question is decided. (AI Summary)

Reverse charge on development rights: developer liable for GST on unsold units at occupancy unless all units were pre-sold.
Granting of development rights by a landowner is treated as a supply of service and, when received by a developer, may attract GST under the reverse charge mechanism on the proportion of development rights attributable to unsold units at the date of completion certificate or first occupation. If all units are sold before occupancy and the developer pays GST on construction under forward charge, reverse charge on TDR does not apply. Compliance requires inventory registers, certified valuation of unsold units, self invoicing on OC, and reporting in GSTR 3B. (AI Summary)

Input tax credit blocking capped as interim restriction; Supreme Court declined interference pending authoritative resolution.
The Supreme Court declined interference with a High Court interim direction limiting administrative blocking of input tax credit to ten percent of assessed demand, observing the order followed precedent on the pre-deposit requirement under Section 107. The dispute arises from divergent High Court interpretations of Rule 86A's scope-whether blocking may create or extend negative electronic credit ledger positions to prevent or recover fraudulent availment-and the Supreme Court has issued notice to resolve that divergence. (AI Summary)

Threshold increase for GST registration proposed to reduce compliance notices and focus enforcement on significant taxpayers.
Recommend promptly reconvening the GST Council and raising GST registration thresholds for service providers and traders effective 01/04/2026 to curb mass notices based on digital payments and refocus enforcement on significant taxpayers. Call for CBIC instructions to prevent procedurally defective actions (detention, seizure, cancellation, natural justice lapses), phased operationalisation of the GST Appellate Tribunal with an active website for appeals, and deletion of the anomalous Input Tax Credit restriction in Section 17(5) to restore seamless ITC flow. (AI Summary)

Retrospective application of GST penalty: interim bar on coercive action where penalty imposed for pre effective transactions.
Delhi High Court granted interim protection from coercive enforcement where penalty under Section 122(1A) was invoked for transactions before the provision came into force, noted the issue of retrospective applicability is pending in related matters, directed consolidation with similar petitions, permitted respondents time to file counter affidavits, and ordered no coercive action in the interim. (AI Summary)

India-UK free trade tariff liberalisation will eliminate many duties and streamline customs clearance for eligible imports.
The India-UK Free Trade Agreement provides extensive tariff liberalisation with phased duty reductions across key product groups and broad tariff line coverage, coupled with procedural facilitation including an accelerated customs clearance objective, duty deferral mechanisms, paperless trade measures, and obligations tied to origin documentation and compliance with rules of origin. (AI Summary)

Moratorium under the Insolvency Code bars tax assessment and recovery during CIRP, with revival permitted after moratorium ends.
Moratorium under the Insolvency and Bankruptcy Code prevents initiation or continuation of assessment and recovery proceedings against a corporate debtor while CIRP is in force; the Code's overriding effect displaces inconsistent provisions of other enactments, and actions taken by tax authorities during the moratorium are barred, though proceedings may be revived after the moratorium ceases if legally permissible. (AI Summary)

Penalty under Section 122(1A) upheld where SCN's factual matrix encompassed retention of benefit and petitioner failed to rebut it.
The petition challenged a penalty for retaining benefits of fraudulent ITC where the SCN, though framed under a different sub provision, set out allegations and facts that brought the petitioner's conduct within the scope of the penalty for retention of benefit; the petitioner did not rebut those allegations, the conduct formed part of a continuing scheme after the provision's commencement, and the dispute involved fact intensive issues unsuitable for writ relief, with a statutory appeal constituting the appropriate remedy. (AI Summary)

Conscious possession requires knowledge and control; absence of both rebuts NDPS presumptions and affects bail.
Conscious possession under the NDPS Act requires proof of both knowledge of the substance's nature and control over it; mere physical custody without mens rea or corroborative recovery cannot trigger the presumption under Section 54. Evidentiary deficiencies-no recovery from person or home, absence of digital or financial links, and lack of corroboration for confessional statements-undermine foundational facts. Where foundational facts are weak and detention prolonged, Article 21 liberty concerns weigh in bail analysis and caution against treating presumption as conclusive proof of culpability. (AI Summary)

Force majeure requirement: GST limitation extensions invalid without proximate force majeure and prior GST Council recommendation.
Validity of notifications under Section 168A depends on strict compliance with its conditions: a proximate force majeure and a prior GST Council recommendation. The Madras High Court held Section 168A to be delegated, conditional legislation and ruled that systemic inefficiencies or residual pandemic effects do not qualify as proximate force majeure. Notifications issued without the required prior Council recommendation or based on remote causes were held ultra vires and remitted for fresh consideration with opportunity for hearing. (AI Summary)

Transaction value presumption in unrelated imports may be rejected if value lacks commercial credibility, triggering reassessment.
The assessable value of imports is based on the transaction value for unrelated parties where price is sole consideration, but customs may reject the declared value under Rule 12 if contemporaneous imports, invoice discrepancies, omitted price-affecting elements, or market comparables demonstrate inconsistency; on rejection, alternative Valuation Rules apply to re-determine value and applicable duty, interest, penalties, and possible confiscation follow where misdeclaration or fraudulent conduct is established. (AI Summary)

Certificate of Origin accuracy: essential for claiming preferential tariffs under FTAs; non compliance risks duty recovery and penalties.
The Certificate of Origin is the operative legal document enabling preferential tariff treatment under FTAs; preferential COOs require strict compliance with Rules of Origin (wholly obtained, substantial transformation, value addition thresholds or tariff shift criteria). Exporters must secure COOs from authorised agencies with documentary substantiation; importers must present the original COO specifying the agreement, HS code, origin and criterion. CAROTAR, 2020 and Customs Tariff Rules impose due diligence and documentation duties, and misdeclaration or forged COOs can trigger duty recovery, penalties and prosecution under the Customs Act, 1962. (AI Summary)

GST appellate tribunal operationalisation introduces digital, time bound appeals but ongoing appointment litigation may delay full functionality.
GSTAT, established under Article 323B and Sections 109-112 of the CGST Act, is intended as the specialised forum for second appeals under GST; the GSTAT (Procedure) Rules, 2025 create a digital, time-bound appellate process with digital filing, virtual hearings, mandated timelines for final orders, specified pre-deposit requirements and prescribed fees; prolonged non-operation forced taxpayers to High Courts, produced inconsistent interpretations and financial burdens, and ongoing litigation over member selection and bench composition continues to threaten full functionality. (AI Summary)

Mens rea requirement for penalty prevents sanctions for typographical e way bill errors, prompting quashed orders and refunds.
Improper invocation of penalties under Section 129 for minor e way bill or invoice errors persists despite a CBIC leniency circular prescribing capped penalties for trivial lapses; a High Court held that mens rea is essential for penalty and quashed an order based on a typographical e way bill mistake, directing refund with interest and prompting calls for renewed administrative guidance and stricter compliance with document requirements. (AI Summary)

Consent order procedure in securities law: settlement through SEBI subject to committee review and enforcement discretion.
Consent orders allow settlement with the regulator without admission of liability and are statutorily recognised while preserving the regulator's enforcement powers. Applications are reviewed by a High Powered Advisory Committee and internal panels, which may accept, modify, or reject proposals if terms are not commensurate with alleged violations or where parallel proceedings or serious misconduct exist. A finalized consent order settles the regulatory adjudication as to the applicant but does not absolve the applicant of statutory offences or determine criminal liability; rejection permits both parties to pursue available legal remedies. (AI Summary)

Certificate of Origin verifies eligibility for preferential FTA tariffs and triggers importer/exporter documentation and verification obligations.
A preferential Certificate of Origin (COO) is the operative document certifying that goods satisfy the Rules of Origin-wholly obtained, requisite local value addition, or change in tariff heading-and must be original, error free and bear FTA name, tariff code, country of origin, issuing signature and validity. Exporters must substantiate origin with manufacturer declarations, bills of materials and invoices; importers must present original COOs and retain supporting documentation. Under CAROTAR 2020, importers must hold basic origin information, customs may request verification documents, and misdeclaration can trigger duty recovery and proceedings. (AI Summary)

GST procedural compliance: portal now enables appeals against waiver rejections and tightens reporting and consent controls.
GST procedural updates include: portal-enabled appeals against waiver application rejection orders (SPL-07) with specific filing navigation and no portal withdrawal option; a restore-by-undertaking route for previously withdrawn appeals; security enhancements requiring ASP/GSP OTP-consent notifications to authorised signatories, historic access logs and consent-revocation; reintroduction of non-editable auto-populated inter-state values in Table 3.2 of GSTR-3B to be corrected via GSTR-1/GSTR-1A or IFF; and guidance to ignore erroneously issued GSTR-3A notices to certain cancelled composition taxpayers pending technical fixes and grievance resolution. (AI Summary)

Customs valuation questionnaire clarifies related party disclosures and documentary requirements for SVB valuation proceedings under customs rules.
Special Valuation Branch (SVB) proceedings center on a mandatory SVB Questionnaire and documentary substantiation addressing importer and supplier identities, related party status, transaction nature, pricing method, and any payments or assistance beyond the invoice, with attachments for technical or royalty agreements and Transfer Pricing Study Reports. Filings must follow a prescribed checklist-covering letter, corporate and tax documents, agreements, invoices, audited financials, organization charts, product details with HS codes, and correspondence-to support customs valuation determinations. (AI Summary)

Customs valuation: SVB assessment secures arm's-length import values in related-party and special-payment transactions.
Assessment under the Special Valuation Branch targets imports involving related parties or ancillary payments that may affect declared customs value, requiring an SVB questionnaire, relationship declaration, transactional agreements, invoices, bills of entry, audited financials and transfer pricing documentation. Documents must mirror actual practice; agreements should define scope, payment terms and cost sharing and align with the transfer pricing report. Importers must declare relationships on the bill of entry, avoid inconsistencies across records, justify arm's length valuation, cooperate with inquiries and follow conditions in any issued SVB order. (AI Summary)