Hon'ble Judges Gowri Shankar (T) and G.N. Srinivasan (J), Members For Appellant : Vinay Sejpal, CA For Respondents : A. Chopra, Departmental Representative JUDGMENT Gowri Shankar, Member (T) 1. The appeal is taken up for disposal with consent of both sides after Waiving deposit. 2. The appellant was engaged in the manufacture of mild steel ingots. Prior to 1.8.97, these ingots were subject to ad valorem duty. The appellant was availing of modvat credit procedure. On 1.8.97,... ... ...

This commentary provides doctrinal analysis and practical insights on the legal issue discussed below. The judgment is analysed in the context of its factual background, issues framed, and conclusions reached by the Court. 2026 (7) TMI 909 - MADRAS HIGH COURT 1. Introduction Wrong-head payment under GST arises where the taxpayer has remitted the full tax quantified for a supply, but the remittance is mapped to an incorrect tax head-for example, Integrated Goods and Services Tax (IGST) i... ... ...

Factoring business in an International Financial Services Centre requires registration, subject to statutory exemptions. Registration depends on prior Finance Company registration, relevant factoring experience, adequate infrastructure, fitness and propriety, financial soundness, and absence of judicial proceedings for breach of law. Trade receivables financed through a Trade Receivables Discounting System must be filed with the Central Registry within ten days of assignment or satisfaction, with limited additional time available for delayed filing on application and payment of the prescribed fee.

This commentary provides doctrinal analysis and practical insights on the legal issue discussed below. The judgment is analysed in the context of its factual background, issues framed, and conclusions reached by the Court. 2026 (7) TMI 2004 - KARNATAKA HIGH COURT 1. Introduction Condonation of delay in a GST appeal presents a sharp distinction between the jurisdiction of the Appellate Authority under Section 107 of the Central Goods and Services Tax Act, 2017 and the constitutional juri... ... ...

Validity of a scrutiny notice under section 143(2) depends on statutory compliance, not merely on use of a prescribed administrative format. A notice remains effective where it is issued by a competent authority, timely served, identifies the taxpayer and assessment year, conveys scrutiny, and affords an opportunity to support the return. Section 292B may cure formal defects where the notice substantively conforms to the Act and no actual prejudice is established. This issue is distinct from the restriction that limited-scrutiny inquiries cannot be expanded without prescribed conversion safeguards.

Admission of a cheque signature activates the presumptions of consideration and legally enforceable debt or liability under Sections 118(a) and 139 of the Negotiable Instruments Act. The drawer then bears an evidentiary burden to raise a probable, evidence-based defence on the preponderance of probabilities; bare denials, unsupported claims of misuse, or a blank-cheque plea ordinarily do not rebut the presumptions. Financial capacity of the complainant becomes material only after a credible and specific challenge. These presumptions do not remove the requirement to establish the procedural ingredients of Section 138, including dishonour, timely demand notice, non-payment, and timely complaint.

Section 203(3) creates a statutory first charge on a building for unpaid property tax. Section 60 does not displace charges created under other enactments; therefore, a revenue-recovery auction sale does not extinguish property-tax arrears secured by that charge. The auction purchaser remains liable for accrued arrears and subsequent property-tax liability. Where the sale confirmation did not disclose the liability and the Panchayat did not intervene in the sale, interest on the arrears may be waived if payment is made by the stipulated date.

GST does not apply to donor-name displays by charitable organisations when they are merely expressions of gratitude or recognition of philanthropy, rather than advertising or business promotion. No supply of service for consideration arises where the recipient has no reciprocal obligation. The payment must be a genuine charitable gift or donation, made for philanthropic purposes without commercial gain, and the display must not refer to or promote the donor's business activity.

Usable steel-sheet off-cuts arising from processing Modvat-credit inputs retain the character of the parent material and do not qualify as waste and scrap. Rule 57F permits removal of inputs or waste arising during processing, but Chapter 72 confines waste and scrap to material fit only for metal recovery or chemical manufacture. Off-cuts capable of producing steel articles or smaller scooter parts fail that condition, notwithstanding their irregular shape. Their classification depends on examination of the consignment and its actual usability. Such off-cuts cannot be cleared at the duty applicable to waste and scrap.

The existing anti-dumping duty remains in force up to and including 26 March 2027, subject to earlier revocation, supersession or amendment. A new paragraph before the Explanation establishes this extended period notwithstanding the prior duration provision. The amendment defines the temporal operation of the levy under the Customs Tariff Act, 1975 and the Anti-dumping Duty Rules, 1995.

Special procedures earlier prescribed under section 148 of the Punjab Goods and Services Tax Act, 2017 are withdrawn through rescission of Notification No. S.O. 90/P.A.5/2017/S.148/2023. The rescission preserves anything done or omitted before its operation and is deemed effective from 1 January 2024.

Section 5 of the Limitation Act requires a litigant seeking condonation of delay to establish sufficient cause through distinct proof and reasonable diligence. Incorrect information from a pleader's clerk about the court's reopening, without reasonable verification by the appellant, is attributable to the appellant and indicates negligence. Illness alleged after discovery of the delay must be supported by reliable contemporaneous evidence and cannot justify continuing delay when such proof is absent. The 17-day delay in presenting the first appeal was therefore not condonable.

Specified actionable claims are inserted in Schedule IV, covering actionable claims involving betting, casinos, gambling, horse racing, lottery, and online money gaming. Entries relating to serial numbers 228 and 229 are omitted. Undefined words and expressions carry the meanings assigned under the Punjab Goods and Services Tax Act, 2017. The amendments take effect from 1 October 2023.

Tax-deduction-at-source procedures under section 393 are extended to consideration for transfer of immovable property where a resident individual or Hindu undivided family is required to deduct tax under section 393(2). The prescribed entries in rule 215(1), the particulars covered by rule 218(3), and the relevant clauses in rule 219 are aligned to include this category of deduction. Rule 219(8) is also corrected by replacing the reference to sub-section (1) with sub-section (7).

India's FY 2026-27 GDP growth forecast is raised to 6.9 per cent from 6.4 per cent, reflecting strong June-quarter growth and economic resilience. Economic momentum is projected to moderate as slower manufacturing and services expansion, below-normal monsoon rains, and rising inflation constrain demand. Strong demand, price increases and adverse supply conditions are expected to lead to monetary tightening.

Input tax credit for specified 2.5 per cent state-tax service entries is limited where same-line input services bear higher tax. A supplier may claim credit only up to 2.5 per cent of the value of the input service, and excess credit is unavailable. For motor-cab transport, this cap applies where a cab with operator is hired for providing the outward service at that rate.

Capital grants, subsidies and consumer contributions that meet the cost of depreciable assets reduce actual cost under Explanation 10 to section 43(1); where not directly linked to a particular asset, they must be apportioned among relevant assets before applying depreciation rates. Transfers from a depreciable block are computed under the special mechanism in section 50 and may result in deemed short-term capital gains. Interest on staff loans and business-related balances requires evidence of a sufficient business nexus to qualify as business income rather than income from other sources. Interest on post-1 April 2005 loans falls outside a waiver limited to specified government loans outstanding on that date. Wheeling-charge refunds require verification of earlier collection and income recognition, while inaccurate fringe-benefit particulars may attract penalty.

Punjab SGST rate schedules add molasses under heading 1703 and powdered food preparations of millet flour containing at least 70% millets by weight, pre-packaged and labelled, under heading 1901 to Schedule I at 2.5%. Schedule III at 9% includes these millet-flour food preparations and spirits for industrial use under tariff item 2207 10 12.

FEMA investigation concerns suspected foreign-exchange contraventions and the source and movement of funds used to acquire control of McNally Bharat Engineering Company Limited following its corporate insolvency resolution process. The inquiry also examines whether the process may have enabled persons potentially ineligible under Section 29A of the Insolvency and Bankruptcy Code, 2016, to regain indirect control of the company.

Export facilitation reforms contemplate integrated Commerce and Industry offices and trained local personnel to provide exporters with common access points and district-level handholding support. The Trade Connect platform is envisaged to provide product-wise and HSN-code-wise tariff, Free Trade Agreement and procedural information, supported by digital and AI-enabled tools. Reforms also address electronic verification of Certificates of Origin, integration across the export cycle, digitalisation, simplified trade documentation, reduced compliance burden, and adherence to international quality standards.