Inter-state input tax credit transfer on amalgamation cannot be denied by portal-based restrictions lacking statutory backing.
Inter-state transfer of unutilized Input Tax Credit on amalgamation is permissible under Section 18(3) of the CGST Act read with Rule 41 of the CGST Rules, and cannot be denied merely because the transferor and transferee are registered in different States. Authorities cannot import restrictions not found in the statute, or reject a FORM GST ITC-02 request without separate, cogent reasons grounded in the CGST Act. Where the GST portal cannot process the transfer, manual filing of FORM GST ITC-02 is required to preserve the statutory credit transfer mechanism. (AI Summary)

Impossibility under EPCG licences makes export default, penalties, and confiscation questionable when machinery is seized by authorities.
If machinery covered by an EPCG licence is seized, the exporter may be unable to fulfil export obligations, and such impossibility is treated as a material factor against treating non-compliance as wilful default. In that setting, penalties and confiscation become legally questionable where the failure to export results from government action rather than deliberate breach. Duty computation must also account for exports already made and depreciation of the capital goods, and orders are vulnerable where passed without hearing the affected party or considering extension, third-party exports, or depreciation-based recomputation. (AI Summary)

Summons under GST inquiry must be judicious; repeated calls to company directors may amount to harassment.
Section 70 of the CGST Act empowers the proper officer to summon any person whose attendance is considered necessary to give evidence or produce documents in an inquiry, and a company director is not insulated from summons merely because the company has nominated an authorised representative. However, the power must be exercised judiciously and in accordance with administrative fairness. A writ court may intervene where the summons is without jurisdiction, issued for an oblique purpose, abusive, or harassing, and a demonstrable breach of CBIC guidance may support judicial review for arbitrariness. (AI Summary)

WhatsApp spam and fraud regulation in India highlights gaps between telecom oversight, intermediary duties, and cybercrime enforcement.
Unsolicited, fraudulent and loan-related WhatsApp messages in India are analysed as spam, deceptive communications and, in some cases, criminal intimidation or harassment. The discussion identifies the Information Technology Act, 2000, the Bharatiya Nyaya Sanhita, electronic evidence requirements, telecom spam controls under the Telecom Commercial Communications Customer Preference Regulations, 2018, and intermediary duties under the Information Technology (Intermediary Guidelines and Digital Media Ethics Code) Rules, 2021. It also notes enforcement limits caused by encryption, the OTT-telecom divide and cross-border cybercrime, and calls for stronger coordination, traceability and regulatory reform. (AI Summary)

Limitation for appeal after rectification proceedings remains a critical GST procedural issue, with conflicting judicial approaches on computation.
Limitation for filing an appeal may become a procedural risk when a taxpayer first pursues rectification proceedings against an original order. The article contrasts a strict approach in Power Tracks with precedents suggesting that the time spent in rectification proceedings may be relevant to computing limitation, and that limitation may run from the disposal of the rectification application. It also notes the practical concern that taxpayers may otherwise be forced to file rectification and appeal simultaneously to protect limitation. (AI Summary)

GST detention proceedings require a speaking order, and payment under protest does not end adjudication automatically.
Payment of GST penalty under protest for release of detained goods does not automatically conclude proceedings where objections are filed or liability is not accepted. A payment recorded as made under protest is only a step to secure release of goods and does not amount to waiver, acquiescence, or admission of the demand. The proper officer must issue notice, consider the reply or objections, and pass a speaking order after granting an opportunity of hearing. (AI Summary)

Confirmed auction sale finality may yield to limited scrutiny of valuation and reserve price in recovery proceedings.
Confirmed auction sales in debt recovery proceedings are ordinarily protected, but that protection is not absolute where the valuation or reserve price fixation is credibly questioned. The dispute concerned a DRT auction sale that had been confirmed in favour of a third-party purchaser, after which the High Court remitted the matter only for reconsideration of the valuation of the mortgaged properties and the fixation of reserve price. The remand was limited to examining whether the valuation process complied with law and whether the recovery process had secured the best possible value of the secured asset. (AI Summary)

Approved Exporter Scheme introduces self-certification of origin with compliance safeguards for preferential trade benefits.
Amendment to Para 2.62 of the Foreign Trade Policy 2023 introduces an optional Approved Exporter Scheme for self-certification of Certificates of Origin, while retaining the existing DGFT-authorized issuance mechanism. Eligible exporter-manufacturers who are Status Holders may be recognized as Approved Exporters and self-certify the origin of their manufactured goods for preferential tariff benefits, subject to invoice matching, agreement-specific applicability, and the detailed requirements in Appendix 2F. (AI Summary)

Gas meter classification turns on cumulative volume measurement, while mere misclassification cannot by itself justify extended limitation or penalty.
Rotary gas meters used for custody transfer and billing of gas consumption are classifiable under CTI 9028 10 00 as gas supply meters, not under CTI 9026 10 10 as flow meters. Such meters record cumulative volume of gas consumed in cubic metres, whereas flow meters measure rate of flow. Mere wrong classification or an ineligible exemption, where documents were filed, does not by itself establish collusion, wilful misstatement, or suppression of facts for invoking Section 28(4) or Section 114A. (AI Summary)

Export policy shift on wood pellets and briquettes moves trade from prohibition and free export to restricted authorization.
India's export policy for wood pellets and wood briquettes has been reclassified to a uniform Restricted regime. Wood pellets, earlier prohibited, and wood briquettes, earlier free for export, now require prior authorization from the Directorate General of Foreign Trade before export. The revised framework permits trade only under government oversight and subject to additional conditions, reflecting a controlled mechanism in place of absolute prohibition or unrestricted export. (AI Summary)

Appellate Authority remand power barred under CGST Act, limiting appeals to confirmation, modification, or annulment only.
Appellate Authority under section 107 of the CGST Act, 2017 lacks power to remand a matter to the adjudicating authority. Its jurisdiction is confined to confirming, modifying or annulling the appealed order, and section 107(11) expressly bars referral back to the adjudicating authority. In refund matters relating to export of services, orders remanding the case for redetermination of the place of supply were therefore not sustainable where the statutory provision permitted no remand. (AI Summary)

Statutory regulation is not taxable supply under GST when regulatory fees are collected in discharge of public duties.
GST applies only where there is a supply made in the course or furtherance of business, and statutory regulation performed by electricity regulatory commissions under the Electricity Act, 2003 is not a commercial activity. Fees collected by such commissions are statutory levies prescribed by law and not consideration for a taxable service, because the commissions act as public regulators discharging legal duties rather than service providers engaged in commerce. The Delhi High Court held that regulatory functions, including tariff determination, licensing, compliance monitoring, and dispute resolution, cannot be treated as taxable supplies under GST. (AI Summary)

IGCR Rules duty demand cannot rest on alleged excess imports when customs officers cleared the goods under exemption procedures.
A demand for differential duty under the IGCR Rules cannot be sustained merely on the allegation that the importer brought in quantities exceeding the estimates stated in the initial declaration, where the customs authorities at the port of importation allowed clearance of the goods under the concessional regime. In the absence of any allegation or evidence of irregularity, error, or improper action by the concerned customs officers in the clearance process, no basis remained for sustaining the duty demand on alleged excess imports. The associated penalty was therefore not maintainable on the same footing. (AI Summary)

EPCG export obligation reduction applies proportionately for declining sectors, with endorsement and recordkeeping requirements for discharge applications.
Export obligation under EPCG licences is to be reduced proportionately for FY 2024-25 where the relevant sector or product group has recorded an export decline of more than 5 per cent compared with FY 2023-24. Where the decline has continued over consecutive years, the year after the decline began is treated as the base year for comparison. Regional Authorities are to re-fix the annual average export obligation on a proportionate basis and record the reduction in the licence file and amendment sheet. (AI Summary)

Electrification of road logistics can cut costs, improve freight reliability, and strengthen India's global competitiveness.
Electrification of India's road logistics ecosystem is presented as a strategic measure to improve logistics efficiency, reduce operating costs, and strengthen global competitiveness. The article links road freight dependence, high logistics costs, and emissions-intensive transport to the need for electric commercial vehicles, interoperable charging infrastructure, and digital fleet integration. It identifies urban last-mile delivery, intra-city freight, regional movement, and long-haul transport as distinct segments requiring phased adoption, with electric fleets, centralized charging depots, freight corridors, and supporting technologies such as battery swapping and ultra-fast charging forming the core transition architecture. (AI Summary)

Refund of customs duty under protest is premature until the exemption dispute is finally resolved.
Refund of customs duty paid under protest during a pending exemption dispute arises only after the assessment controversy is finally resolved in the assessee's own case. Where an importer challenges denial of exemption and the dispute remains before the appellate authorities, a refund application made before final settlement is premature. The later favourable decision on exemption does not retrospectively validate an earlier application filed in anticipation of success, and a refund claim filed while the issue is still sub judice may be rejected under section 27 of the Customs Act, 1962. (AI Summary)

Duty drawback on as such exports clarified for merchant exporters under the settled customs framework.
Duty drawback under Section 75 of the Customs Act, 1962 and the Customs and Central Excise Duties Drawback Rules, 2017 applies where goods are exported as such if the applicable rules and conditions permit such benefit. Denial of drawback cannot rest solely on the ground that imported goods were re-exported without manufacture or processing in India, and customs authorities cannot add restrictions not found in the statute or rules. The article explains that CBIC Instruction No. 02/2026-Customs seeks uniform compliance with this settled position while preserving verification and anti-misuse powers. (AI Summary)

AI-generated citations in GST orders require human verification before reliance, as incorrect case law can undermine quasi-judicial decisions.
AI-generated citations used in GST quasi-judicial orders must be verified against the actual judgment text before reliance, and blind acceptance of AI-suggested authorities is legally unsafe. The article stresses that citation accuracy is non-negotiable, because reliance on irrelevant or incorrect case law can undermine the integrity of the decision-making process and provide grounds for challenge by taxpayers. It also anticipates that courts may require prescribed standards for validation, with AI used only for research and discovery while final legal reliance remains dependent on human validation. (AI Summary)

Capital goods GST compliance requires higher of reduced input credit or tax on transaction value, with interest on shortfall.
Sale of capital goods on which input tax credit has been availed requires a comparative computation under GST: the taxpayer must pay the higher of the credit attributable to the remaining useful life, computed on a five-year basis, or the GST payable on the transaction value. Paying tax only on the sale value is not sufficient if the reduced credit reversal is higher, and any shortfall attracts interest. Where the discrepancy is discovered, voluntary payment through DRC-03 with proper computation and disclosure is the suggested compliance response. (AI Summary)

Goods classification under Indian customs law drives duty, exemptions, and penalties when HS codes are misstated.
Accurate classification of goods under Indian customs law determines duty rates, exemption eligibility, and compliance with import and export controls. Misclassification under incorrect HS codes may arise from technical complexity, documentation errors, interpretational ambiguity, or deliberate misdeclaration, and the responsibility for correct classification lies primarily with importers and exporters under the self-assessment regime. Misclassification can trigger recovery of duty, confiscation of goods, and monetary penalties under the Customs Act framework. (AI Summary)