This is the most appropriate time to discuss this topic as we recently got favorable orders from the Supreme Court in two cases which is followed by High Court orders on improper invocation of 74. The legislature applied mind and already put an end to Section 73 as well as 74 as the applicability is only for the period up to 31/03/2024. As on 01/10/2026, the possible show cause notices under section 73 is only for one financial year 2023-24 as the deadline for show cause notice for 73 remains as... ... ...

The Hon'ble Delhi High Court in A.V. International & Anr. Versus Additional Director General Directorate of Revenue Intelligence & Ors., The Principal Commissioner Of Customs Import & Anr. - 2026 (8) TMI 538 - DELHI HIGH COURT declined to interfere with the Order-in-Original passed pursuant to the First SCN and held that two Show Cause Notices ("SCNs") arising out of a common investigation conducted by the Directorate of Revenue Intelligence ("DRI") retain their independent legal identity, notwi... ... ...

Section 263 of the Income Tax Act, 1961 ('Act' for short) provides for revision of the orders passed by the lower authorities to protect the interests of the Revenue.  Section 263(1) of the Act provides that the Principal Commissioner, Principal Chief Commissioner or Chief Commissioner or Principal Commissioner or Commissioner may call for and examine the record of any proceeding under this Act.  If he considers that any order passed by the Assessing ... ... ...

When Diligence Matters: CESTAT on Customs Broker Penalty for Undervaluation - M/s. G. Narayan & Co. Versus The Commissioner of Customs, Mangalore - 2026 (9) TMI 666 - CESTAT BANGALORE Disclaimer: This article is for informational purposes only and does not constitute legal advice. Readers should consult original judgments and legal sources before acting. The author and publisher are not responsible for actions taken based on this content. A Penalty May Survive, But Its Quantum Must Re... ... ...

The eligibility of Input Tax Credit (ITC) on construction of immovable property intended for leasing has long been a contentious issue under GST. The recent case of Esnp Property Builder And Developers Private Limited, Represented By Its Authorised Signatory, Mr. Abhishek Agrawal, Esnp Property Builder And Developers Private Limited, Represented By Its Authorised Signatory, Mr. Abhishek Agrawal, Versus State Tax Officer (st), Group-V, VI, Joint Commissioner (state Tax) (intelligence) And Esnp Pr... ... ...

The Central Board of Indirect Taxes and Customs (CBIC), Ministry of Finance, Department of Revenue, has issued Circular No. 41/2026-Customs dated 3 September 2026, introducing and operationalising the National Assessment Centre (NAC) Portal as a common digital platform for dissemination of customs assessment-related information to trade, stakeholders and departmental officers. The initiative marks a significant step towards strengthening the objectives of faceless assessment, particularly by ... ... ...

Beyond Tariff Classification - A Ruling on the Limits of Revenue Powers The decision of the Chennai Bench of CESTAT in Toyota Kirloskar Motors Pvt. Ltd., Shri Ranjan Kumar, Shri Veeresh Prasad Verma Versus Commissioner of Customs, Chennai - 2026 (9) TMI 667 - CESTAT CHENNAI, is far more significant than a conventional tariff classification dispute. The appeal undoubtedly arose from competing classifications of automotive sensors, but the Tribunal was ultimately required to address a broa... ... ...

Introduction The Central Board of Indirect Taxes and Customs (CBIC), Ministry of Finance, has issued Circular No. 40/2026-Customs dated 3 September 2026, prescribing detailed checklists for verification by Customs officers before granting Out-of-Charge (OOC) in respect of facilitated Bills of Entry involving Cosmetics, Drugs and Medical Devices. The Circular has been issued in the context of the Government's continuing efforts to promote the Ease of Doing Business, while ensuring that man... ... ...

Alternative statutory remedy under the SARFAESI Act - Forfeiture of auction purchaser's earnest money deposit Challenge by a prospective auction purchaser to forfeiture of earnest money deposit on the basis of alleged non-disclosure of an attachment over the secured property - HELD THAT: - The statutory remedy before the DRT was held to be efficacious and required to be exhausted. Whether non-disclosure of the subsisting attachment was a fact required to be disclosed under Rule 8(7)(f), a... ... ...

Jurisdiction of the Joint Commissioner (Executive) - Jurisdictional objection at any stage - Delegation of revisional powers Exercise of revisional power by the Joint Commissioner (Executive) under Section 56(1) of the U.P. VAT Act without authorisation by the Commissioner - HELD THAT: - A plea that the revisional authority lacked jurisdiction goes to the root of the matter and may be raised at any stage, notwithstanding that it was not raised before the authorities below. The record disclose... ... ...

Priority of charge - security interest realised under SARFAESI Act, 2002 - registration of security under Section 26B of the SARFAESI Act, 2002 - priority contemplated by Section 26E of the SARFAESI Act, 2002 - crown debt including Sales Tax, Commercial Tax and Income Tax - power of Registering Authority to register sale certificates notwithstanding attachment - remittance of surplus proceeds from auction sale to tax departments Delay of 878 days in filing this Special leave Petition - HELD T... ... ...

Cenvat credit on factory set-up services - Cenvat credit on common industrial infrastructure services - Cenvat credit on goods used as factory inputs - Transitional supplementary invoice for differential duty - Appropriation of reversed Cenvat credit - Interest on unutilised wrongly availed Cenvat credit - Extended limitation in interpretational Cenvat credit disputes Cenvat credit on factory set-up services - Admissibility of Cenvat credit on input services used for setting up the manufactur... ... ...

Service tax refund - unjust enrichment - Passing on incidence of tax Entitlement to refund of service tax paid on members' subscriptions where the incidence of tax had been recovered from some members - HELD THAT: - A refund claim under Section 11B is subject to the doctrine of unjust enrichment, and the claimant must establish that the duty burden was not passed on. Though an auditor's certificate is a relevant document, its evidentiary value depends upon its veracity and contents. ... ... ...

Late payment charges as declared service - Consideration for declared service Taxability of late payment charges, received as interest on delayed payment for supplies of industrial gases, as a declared service - HELD THAT: - Following Commissioner of Central GST and Central Excise, Vadodara-II Vs. Lanxess India Pvt. Ltd. [2026 (3) TMI 21 - CESTAT AHMEDABAD] Tribunal held that payments in the nature of damages, though described as interest, lack the consideration essential for a service or dec... ... ...

Delayed-payment surcharge as consideration for tolerance of an act - Naturally bundled services in electricity distribution - Extended limitation for service-tax demand Delayed-payment surcharge as consideration for tolerance of an act - Additional charges or surcharge recovered for delayed payment of electricity bills as consideration for agreeing to tolerate an act or situation - HELD THAT: - A declared service of tolerating an act or situation requires an express or implied agreement under... ... ...

Limitation for quarterly refund claims of CENVAT credit on export of services - Relevant date for quarterly refund claims - Export of services Whether limitation period runs from the end of the quarter in which the FIRC is received? - HELD THAT: - Rule 5 permitted refund within one year, while the governing notification permitted only one refund application for a quarter. Computing limitation separately from each FIRC receipt would curtail the claimant's quarterly filing right where a rem... ... ...

Extension of time for compromise or arrangement in liquidation - Change in circumstances upon assignment of financial debt - Commercial wisdom of financial creditor and value maximisation Rejection of the financial creditor's application for a further ninety-day period to consider a compromise or arrangement under Section 230, following assignment of the debt - HELD THAT: - The ninety-day period under Regulation 2B(1) for a compromise or arrangement is not inflexible and must be applied w... ... ...

Refund of excess late presentation charges - Maintainability of refund claim for late presentation charges - Refund of late presentation charges recovered in excess of the duty payable through the EDI system HELD THAT: - Late presentation charges are levied under section 46 of the Customs Act; consequently, a refund claim under section 27 is maintainable for excess recovery, there being no other provision for such refund. We agree with the appellant that in view of the order passed in Baer... ... ...

Reverse burden for notified gold - Retracted customs statements - Right to cross-examine material witnesses - Confiscation and penalty for alleged gold smuggling Reverse burden for notified gold - Proof of lawful domestic acquisition - Invocation of the reverse burden for seized re-melted gold and discharge of that burden through evidence of domestic procurement - HELD THAT: - The reverse burden applicable to notified gold arises only upon seizure founded on an honest and bona fide reasonable... ... ...

Confiscation of gold u/s 111(d) and 111(o), vehicle u/s 115(2), packing material u/s 119 and imposed penalty - Reasonable belief for reverse burden on re-melted gold - Retracted Customs Act statements and cross-examination - Confiscation and penalty for unproved gold smuggling Reasonable belief for reverse burden on re-melted gold - Discharge of reverse burden by domestic procurement evidence - Invocation and discharge of the reverse burden for re-melted gold claimed to have been procured dom... ... ...