Assessable value: demurrage charges excluded where rule explanation is ultra vires and not part of transaction value.
Whether demurrage charges form part of the assessable value for customs duty depends on whether such charges qualify as costs or services included in the transaction value under the Customs Act and Customs Valuation Rules. The Explanation to Rule 10(2) attempted to include certain ship demurrage within transport costs, but the Orissa High Court held that demurrage is not envisaged by the principal Act and declared that Explanation ultra vires, a view followed by subsequent tribunals which declined to include demurrage in transaction value. (AI Summary)

Company registration compliance: secure DIN and DSC, complete prescribed filings, and maintain post incorporation statutory obligations.
Registering a company in India requires selecting the correct entity type and a compliant unique name, assembling identity and address proofs plus the memorandum and articles of association, and accurately completing prescribed registration forms. Essential pre registration steps include obtaining a Director Identification Number (DIN) and a Digital Signature Certificate (DSC) for all directors. After incorporation, timely GST registration where applicable and ongoing compliance-filing annual returns, maintaining financial records, and holding Annual General Meetings-are common areas where failures occur. (AI Summary)

Opting for DTVSV scheme requires withdrawal of appeals; appeal may be reinstated if settlement is not accepted.
Opting into the DTVSV scheme requires withdrawal of all pending appeals, leading appellate forums to dismiss such appeals as withdrawn; however, the appellate forum may allow reinstatement if the DTVSV application is not accepted due to non-fulfilment of its terms or is rejected, permitting the assessee to revive the appeal and continue regular litigation. (AI Summary)

Natural justice breach: demand order invalid when no time given to gather documents after GST registration restoration.
A demand order issued immediately after restoration of GST registration, and before the taxpayer could access online records or the expiration of the period for filing a reply, violated the principles of natural justice because the affected person was not given adequate opportunity to gather material and present a defence; accordingly the demand confirmed by the revenue authority was held invalid as procedurally defective. (AI Summary)

Registration framework for small and medium REITs sets manager, trustee, application, disclosure and conditional registration requirements.
Registration under new Chapter VI B requires SM REITs to be constituted as registered trusts and to appoint a separate investment manager and a registered debenture trustee. The investment manager must satisfy net worth, experience and personnel qualifications and enter into an investment management agreement with the trustee. Applicants file Form A with detailed information and supporting documents including a registered trust deed and net worth certificate; applications are subject to fees, scrutiny, requests for further information or appearance, and may be accepted with conditions or refused after an opportunity to be heard. (AI Summary)

Service of notice on a non existent amalgamating company is void ab initio; liabilities transpose to the amalgamated company.
Notices and assessment orders issued in the name of an amalgamating company after the operative date of a merger are void ab initio because the amalgamating company ceases to exist; Section 87 preserves taxability of inter-company transactions and transposes liabilities to the amalgamated company, but Section 160 cannot cure the substantive defect of serving or framing proceedings against a non-existent entity, subject to narrow exceptions where deliberate nondisclosure justifies sustaining proceedings. (AI Summary)

Informal guidance scheme provides eligible IFSC applicants a formal route for no action and interpretative letters affecting regulatory clarity.
The International Financial Services Centre Authority (Informal Guidance) Scheme, 2024, effective 01.01.2025, establishes a process for eligible persons to seek No action letters or Interpretative letters on matters administered by the Authority. Applications must be filed electronically, disclose all material facts and applicable legal provisions, and demonstrate the link to the applicant's IFSC activity; a fee is payable, departments may request further information, and applications are to be disposed within 30 days excluding applicant response time. Departmental guidance is non appealable, non binding on the Authority, and may be set aside if obtained by fraud. (AI Summary)

Faceless assessment flexibility to permit jurisdictional officer review for complex taxpayers and improved portal access to hearing recordings.
Faceless assessment procedures should allow certain taxpayers to be assessed by their Jurisdictional Assessing Officer under prescribed conditions where complexity impedes faceless review, and video-conferenced assessment recordings should be made available on the income-tax e-filing portal with an extended downloadable retention period to ensure reliable access and preservation. (AI Summary)

Direct taxes: imposed on income or property and paid by the taxpayer; indirect taxes are charged on consumption through intermediaries.
Direct taxes are levied on income or property and paid directly by the taxpayer, exemplified by Income Tax, Corporate Tax and Property Tax. Indirect taxes are levied on consumption and collected from end consumers via intermediaries; examples include Goods and Services Tax, Excise Duty, Customs Duty and entertainment levies subsumed within GST, reflecting their transferability along the supply chain. (AI Summary)

Duty to Limit Orders to Noticed Defects ensured; parties must be given notice and opportunity to respond before expansion.
Orders must be limited to defects specified in the show cause notice; addressing unnotified defects violates natural justice. Where demand was confirmed on a defect not included in the FORM DRC 01, the impugned order was quashed as unsustainable. The remedial course directed was issuance of an addendum to the notice, allowance of a taxpayer reply, and reconsideration by passing a fresh adjudicatory order on merits. (AI Summary)

Limitation period from rectification order date: appeals must be timed from the rectification or rejection order issuance.
The High Court held that the limitation period for filing an appeal against an assessment begins from the date on which the rectification order is passed; where rectification proceedings alter or confirm the operative order, the period for appeal runs from that rectification date. The court applied the same principle to treat the date of rejection of a refund application as the relevant date for computing limitation for an appeal concerning the refund. (AI Summary)

GST Rate List shapes small business pricing and compliance, requiring tech adoption and training to manage slab complexity.
The GST Rate List categorises goods and services into tax slabs that determine GST liability, Input Tax Credit availability, and pricing effects for small businesses. Uniform national application simplifies inter-state trade, but multiple slabs and regular filing obligations increase compliance costs and the risk of misclassification. Small enterprises are advised to adopt GST compliant accounting technology and regular staff training to automate slab-based calculations, protect cash flow, and reduce penalties. (AI Summary)

Personal jewellery carried as baggage is personal effects and not smuggling when not concealed, subject to baggage rules.
Jewellery carried as part of baggage or worn on the person is ordinarily personal effects and not smuggling where there is no concealment, no indicia of importation for sale, and the value is assessed within the monetary limits of the Baggage Rules; high value alone does not convert personal jewellery into dutiable imported goods absent factual findings of concealment or evasion. (AI Summary)

Reverse Charge Mechanism: demand barred where recipient already discharged service tax under RCM.
Whether a service tax demand can be raised against a supplier when the recipient has already discharged liability under the Reverse Charge Mechanism. The tribunal noted that Notification No. 30/2012-ST (as amended) placed liability for manpower supply services on the recipient, and where the recipient paid the tax accordingly, pursuing a demand from the supplier would result in double taxation; the tribunal set aside the prior demand. (AI Summary)

Reclassification of FPI to FDI allows portfolio investors to convert or divest holdings after breaching investment caps, subject to approvals.
The RBI framework allows FPIs who breach portfolio investment caps to divest or reclassify holdings as FDI within five trading days of settlement. Reclassification is prohibited where FDI is barred and requires investee company concurrence and any applicable government approvals. The FPI must notify its custodian, which will freeze purchase transactions until reclassification concludes; failure to secure approvals leads to compulsory divestment. Reporting obligations include Form FC-GPR for fresh issuances and Form FC-TRS for secondary market acquisitions. The breach date is the effective date, the entire holding is treated as FDI post-reclassification, and the FPI with its investor group is treated as a single entity. (AI Summary)

OPC AGM exemption reduces formal meetings but requires annual financial filings, proper minute keeping and board meeting compliance.
OPCs are exempt from holding an AGM, but must still file annual financial statements with the Registrar, record all resolutions in minutes, and, if there is more than one director, hold at least one board meeting every six months with prescribed intervals. The AGM exemption simplifies administration and decision-making, yet OPCs must ensure timely filings, accurate recordkeeping and correct application of exemptions to avoid penalties. (AI Summary)

Self attestation requirement replaces notarised attestations for regulatory filings, streamlining submissions and reducing costs in multiple SEBI regimes.
Amendments by Notification F.No.SEBI/LAD/NRO/GN/2024/212 (effective 28.11.2024) replace requirements for notary or gazetted officer attestation with self attestation for supporting documents, affidavits and copies submitted with registration, exemption or relaxation applications across specified SEBI regulations, including custodian, credit rating agency, KYC registration, index provider, depository/participant forms, takeovers, buy back, settlement proceedings and de listing regimes. (AI Summary)

Right to fair hearing: refund rejection is improper where taxpayer is not given particulars needed to defend the claim.
A refund rejection premised on a demand is procedurally improper where the show cause notice and order do not furnish a breakup or particulars of the amount alleged as erroneous, because absence of those particulars prevents the taxpayer from mounting a meaningful defence and thus violates the audi alteram partem principle; the matter requires reconsideration after provision of necessary particulars. (AI Summary)

Deduction for savings bank interest: entitlement depends on claimant category and documentary proof of interest income.
Section 80TTA allows deduction for interest on savings bank deposits for individuals and HUFs (excluding senior citizens) from specified banking and post office deposits subject to a statutory ceiling, excluding time deposits and accounts held by firms or associations; tribunals require documentary proof (bank statements/passbooks) and remit matters to assessing officers for verification when eligibility or quantum is not established. Section 80TTB provides a higher deduction for senior citizens from similar deposit sources, subject to the same exclusions and the requirement that claimants substantiate interest income for deduction within statutory limits. (AI Summary)

Income tax payment errors: ensure correct assessment year, PAN, tax type and retain challan to prevent compliance notices.
Errors in income tax payment include selecting the wrong assessment year, entering incorrect PAN details, and choosing an incorrect tax type; taxpayers must verify assessment year, ensure PAN accuracy, select the proper payment category, retain the challan receipt as proof, comply with advance tax obligations to avoid interest, reconcile declared and paid tax to prevent notices, make timely payments to avoid penalties, and use authorized payment portals or verified banks. (AI Summary)