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HC ruled on customs duty exemption for Lactulose imports, addressing classification under Sr. No. 166(A) versus 166(B) of N/N. 50/2017. The court determined that while duty rates were identical under both classifications, 166(B) required compliance with Customs Rules 2022. Without definitively settling classification, HC directed provisional release under 166(A) subject to bond submission. Customs Department retained authority to issue Show Cause Notice and conduct further proceedings. The Bills of Entry were ordered to be assessed with partial exemption under 166(A), contingent on petitioner furnishing required bond. This interim arrangement preserved department's right to determine final classification while facilitating immediate goods clearance.
HC ruled on customs duty exemption for Lactulose imports, addressing classification under Sr. No. 166(A) versus 166(B) of N/N. 50/2017. The court determined that while duty rates were identical under both classifications, 166(B) required compliance with Customs Rules 2022. Without definitively settling classification, HC directed provisional release under 166(A) subject to bond submission. Customs Department retained authority to issue Show Cause Notice and conduct further proceedings. The Bills of Entry were ordered to be assessed with partial exemption under 166(A), contingent on petitioner furnishing required bond. This interim arrangement preserved department's right to determine final classification while facilitating immediate goods clearance.
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