Clubbing of Advance Authorisations: procedural conditions, time limits, and compliance rules for redemption under the export scheme.
Clubbing of Advance Authorisations is a procedural mechanism under the Foreign Trade Policy 2023 and the Handbook of Procedures 2023, governed principally by Para 4.36. It is permitted for redemption or regularisation where the authorisations relate to the same entity, satisfy prescribed time limits, and maintain cumulative value addition norms. On clubbing, the authorisations are treated as one, with CIF and FOB values aggregated, and restrictions apply where an export obligation discharge certificate has already been issued or where fraud, misrepresentation, or adjudication is involved. (AI Summary)

High seas sale transactions turn non-speculative when delivery is proven by proper import documents and account records.
High seas sale transactions are non-speculative where the goods are actually delivered to the purchaser and the transfer is supported by proper documentary evidence. Relevant evidence includes the high seas sale agreement, bill of lading, bill of entry, foreign supplier invoice, import general manifest, out of charge documents, and corresponding purchase and sale entries in the books of account. Where such documents establish a genuine transfer of goods rather than a paper transaction, the transaction is treated as non-speculative; absence of delivery may attract speculative treatment. (AI Summary)

Bonded warehousing of industrial chemicals clarified under foreign trade policy, with compliance and customs safeguards retained.
The policy circular clarifies that Para 2.36(a) of the Foreign Trade Policy 2023 permits warehousing of industrial chemicals in bonded warehouses, and that the restriction on hazardous chemicals was intended to prevent unregulated storage of hazardous waste. The permission remains conditional on compliance with environmental laws, safety standards, licensing requirements, and applicable import-export policy conditions. Customs procedures, including duty payment at the time of clearance, continue to apply. (AI Summary)

IMS deemed acceptance and hard-locked GSTR-3B raise unresolved GST issues on ITC eligibility, gap-period protection, and interest exposure.
IMS deemed acceptance routes invoices into GSTR-2B and GSTR-3B as eligible ITC, but the article says this does not conclusively satisfy the full ITC test under Section 16(2). It identifies three unresolved issues: whether deemed acceptance protects only the invoice-reflection condition or also affects receipt and supplier-payment requirements; whether ITC claimed during the 12-month period before the amended Section 38 framework came into force is protected; and whether Section 50 interest can fairly run from the date of ITC availment when a hard-locked GSTR-3B cannot be corrected. (AI Summary)

Input tax credit transfer on amalgamation cannot be denied merely because entities are registered in different States.
Transfer of unutilized input tax credit on amalgamation under Section 18(3) of the CGST Act read with Rule 41 of the CGST Rules is permissible even where the transferor and transferee are registered in different States. The Gujarat High Court held that the statutory scheme allows transfer of credit pursuant to an approved amalgamation, and the benefit cannot be denied merely because the GST portal insists that both entities must be located in the same State or Union Territory. (AI Summary)

Shipping bill amendment under customs law turns on contemporaneous evidence, not a circular-based time bar or clerical code error.
Section 149 of the Customs Act, 1962 permits amendment of shipping bills on the basis of contemporaneous documentary evidence, and a departmental circular cannot impose a limitation period not found in the statute. Where DFIA file numbers were allotted and the shipping bills themselves referred to the DFIA scheme, an incorrect billing code is a clerical error, not a conversion of scheme. Non-examination of the goods at export does not, by itself, make the amendment impermissible. (AI Summary)

GST specialisation and depth now define professional value amid complex compliance, scrutiny, and dispute resolution.
GST practice has shifted from broad-based compliance work to a specialised discipline requiring depth, conceptual clarity, and continuous learning. Increasing statutory complexity, frequent amendments, judicial interpretations, technology-driven scrutiny, and the interconnected nature of GST issues mean that routine familiarity is no longer enough. Effective practice now depends on understanding the law in depth and applying it with precision to classification, valuation, place of supply, input tax credit, procedural compliance, and dispute handling. (AI Summary)

GST interim coercion and electronic credit ledger blocking cannot outrun judicial scrutiny over limitation and adjudication validity.
Interim coercive measures under GST, including blocking of the electronic credit ledger and attachment of bank accounts, are criticised as having been taken after adjudication orders passed near the extended limitation period, while the validity of notifications under Section 168A extending time for orders under Section 73 remained under judicial consideration. The note emphasises that the statutory scheme requires lawful adjudication before recovery and that pending writ challenges on limitation and vires call for administrative restraint rather than pre-emptive enforcement. (AI Summary)

Pre-packaged insolvency resolution process reforms relax creditor approval thresholds, simplify filings, and expand cooperation duties for resolution proceedings.
Pre-packaged insolvency resolution process for micro, small or medium enterprise corporate debtors is amended by relaxing initiation requirements and reducing financial creditor approval thresholds from 66.6% to 51%. The application regime is simplified under section 54C, cooperation obligations are expanded under section 54F, and approval and termination consequences are aligned with sections 31 and 33. Draft regulations substitute Regulation 18 to specify the supporting information and documents, while Chapter IV on the fast track corporate insolvency resolution process is omitted. (AI Summary)

Cross-charge distribution of common input tax credit was upheld where the binding circular permitted invoice-based transfer under GST law.
Distribution of common input tax credit through the cross-charge mechanism by issuing tax invoices under Section 31 of the CGST Act was permissible prior to 1 April 2025, especially where the pre-amendment definition of Input Service Distributor restricted distribution of reverse charge service credit through the ISD route. A departmental order disallowing such distribution despite CBIC Circular No. 199/11/2023-GST was treated as illegal, arbitrary, and without jurisdiction, and the contrary order was quashed in writ jurisdiction. (AI Summary)

Timely ITAT notice board display is vital for hearing planning, bench attendance, and reducing uncertainty for representatives.
Timely display of ITAT e-notice board information is necessary for effective planning by taxpayers, Departmental Representatives and authorised representatives, particularly for filing paper books and attending hearings without uncertainty. Cause lists, pronouncement lists and bench constitution notices are often uploaded only a few days in advance, sometimes on the same day, and upload time is not shown, making it difficult to assess whether sufficient notice was available. The commentary also notes that delayed or changing notices, adjournment of benches and cancellation of benches create practical hardship and that Tribunal website systems require improvement so information is displayed well in advance and remains stable. (AI Summary)

Customs jurisdiction over Indian-flagged fishing expands to the high seas, resolving import treatment of offshore catch.
Section 56A of the Customs Act, 1962, introduced by the Finance Act, 2026, extends customs jurisdiction beyond the 12-nautical-mile territorial sea to fishing by Indian-flagged vessels in the Exclusive Economic Zone and the high seas. The amendment responds to the earlier treatment of fish caught outside territorial waters as imports on landing in Indian ports, which created duty liability, documentation burdens, and disincentives for deep-sea fishing. It is supported by UNCLOS flag State jurisdiction, constitutional power over extra-territorial legislation, and the doctrine of real connection, and it permits duty-free landing in Indian ports while treating foreign-port landings as exports. (AI Summary)

Show cause notices under GST section 74 must match the relevant tax period, not multiple financial years.
Show cause notices under section 74 of the CGST Act must be issued with reference to the relevant tax period, and a consolidated notice covering more than one financial year is impermissible. Where annual returns have been filed, the entire year is treated as the tax period; where a notice is issued before annual returns, monthly returns may form the basis; and where a notice is issued after annual returns or after limitation has commenced, the notice must be framed with reference to the annual return for that year. (AI Summary)

Wheelchair classification turns on essential character, leaving toileting-equipped mobility aids under CTH 8713 and within customs exemption.
Wheelchairs fitted with a toileting facility retain their essential character as mobility aids and are classifiable under CTH 8713 rather than CTH 9402. Classification turns on the heading terms and the essential character of composite goods, and the additional toileting feature does not change the primary function of movement. Once classified as wheelchairs for disabled persons, the goods remain eligible for exemption under Notification No. 12/2012-Cus, which is broadly worded and not restricted by design or extra features. (AI Summary)

Insolvency transaction rules tightened with revised look-back periods, creditor applications, secured creditor duties, and dissolution timelines.
The amended insolvency framework revises the look-back periods for preferential and undervalued transactions, permits creditors and members to apply where such transactions or wrongful trading are not reported, and updates the rules for secured creditor realisation, distribution of liquidation proceeds, and dissolution of the corporate debtor. The changes require prompt notice by secured creditors, prescribe sharing and deduction obligations in realisation, clarify priority treatment in liquidation, and set timelines for dissolution while preserving pending avoidance and related proceedings. (AI Summary)

Tariff classification under the Harmonized System follows a sequential GRI framework, with essential character and heading specificity guiding disputes.
General Rules for the Interpretation provide the hierarchical framework for tariff classification under the Harmonized System of Nomenclature. Classification proceeds sequentially from Rule 1 to Rule 6, and Rule 1 requires classification according to the terms of the headings and relevant Section or Chapter Notes, which have binding legal force. Rule 2 covers incomplete, unassembled, and composite goods; Rule 3 resolves competing headings through specificity, essential character, or numerical order; Rule 4 is a residual similarity rule; Rule 5 addresses packaging and containers; and Rule 6 governs subheading classification by applying the same approach mutatis mutandis. (AI Summary)

Compensation Cess refund on exports remains available when unutilised input credit cannot be set off against zero-rated supplies.
Refund of unutilised Compensation Cess input tax credit is available where cess has been paid on inputs used in making zero-rated exported goods. The proviso to section 11(2) of the Compensation to States Cess Act restricts utilisation of cess credit for payment of cess, but it does not bar refund when utilisation is impossible because the exported output does not attract Compensation Cess. Section 54(3) of the CGST Act, read with the zero-rating scheme, supports refund so exports remain free from embedded domestic tax burden. (AI Summary)

GST interest demands must be confined to the show cause notice; adjudication cannot add undisclosed liability.
Interest under the GST regime cannot be imposed in an adjudication order where the show cause notice did not quantify or demand such interest. Section 75(7) requires that the demand in the order must not exceed the amount specified in the notice, and no demand can be confirmed on grounds not set out in the notice. Section 75(9) does not authorise inclusion of interest that was never demanded in the notice. (AI Summary)

Green belt protection restricts construction and empowers municipal authorities to demolish, penalize, and stop unauthorized development.
Construction on land designated as a green belt under a master plan or zonal plan is generally impermissible and may amount to unauthorized construction, encroachment, and an environmental violation. The restriction applies even where the land is privately owned, because the designated land use is reserved for ecological, environmental, or public purposes. Municipal corporations and related local authorities are described as having enforcement tools including stop-work notices, demolition, removal of encroachments, penalties, prosecution, sealing of premises, and denial or disconnection of civic services. (AI Summary)

Liquidation framework under insolvency law is tightened with revised moratorium, creditor-led restoration, and liquidator appointment rules.
Amendments to the liquidation framework under the Insolvency and Bankruptcy Code revise the initiation of liquidation, the moratorium, the appointment and replacement of the liquidator, and the liquidator's powers and duties. The committee of creditors may seek restoration of the corporate insolvency resolution process before a liquidation order is passed, and the Adjudicating Authority must act within a specified time frame on liquidation intimation or application. The earlier claims-related provisions are omitted, while the liquidator is required to maintain claims records and may pursue proceedings concerning avoidance transactions and fraudulent or wrongful trading. (AI Summary)