Mis-declaration in import descriptions must be deliberate to justify confiscation; withheld contemporaneous import documents invalidate value redeterm...
Liability for EPCG export shortfall: duty and interest sustained, but confiscation and penalties quashed where no fraud and causes beyond importer con...
The central issue was whether a "virtual service permanent establishment" exists under Article 5(2)(k)/5(6) of the DTAA where no personnel are physically present in India. Relying on treaty-construction principles and Clifford Chance, the court held the DTAA must be strictly construed; Article 5's phrase "within a Contracting State" carries territorial connotation and contemplates physical presence of employees/personnel. Consequently, a virtual service PE not expressly provided by the DTAA or domestic law cannot be recognised, the Revenue's finding was rejected, the impugned NIL-withholding certificate and order were set aside and the matter remanded to the AO for fresh decision within two weeks - HC
The central issue was whether a "virtual service permanent establishment" exists under Article 5(2)(k)/5(6) of the DTAA where no personnel are physically present in India. Relying on treaty-construction principles and Clifford Chance, the court held the DTAA must be strictly construed; Article 5's phrase "within a Contracting State" carries territorial connotation and contemplates physical presence of employees/personnel. Consequently, a virtual service PE not expressly provided by the DTAA or domestic law cannot be recognised, the Revenue's finding was rejected, the impugned NIL-withholding certificate and order were set aside and the matter remanded to the AO for fresh decision within two weeks - HC
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