Tax TMI

26/08/2026

Transfer of shares to a wholly owned subsidiary was a bona fide commercial reorganisation, not a colourable device, because the Revenue showed no sham, lack of commercial substance, or non-genuineness, and tax benefit alone could not invalidate the transaction. The Tribunal also held that the shares...

26/08/2026

Input tax credit was allowed on inputs and input services used to construct a concrete VCV tower supporting the VCV line for manufacture of EHV cables. The Authority held that the controlling question under section 17(5)(c) and (d) was whether the tower was foundation or structural support of plant....

26/08/2026

Access comprehensive collection of Newsletter - all in one place. Updated with latest amendments, detailed guidelines, and expert insights.

26/08/2026

GST, Income Tax, Customs, Import-Export, Corporate Laws, IBC, SEBI, PMLA & Other Updates = Dated: 26 August 2026
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TaxTMI Updates

26 August 2026

Circulars / Instructions / Orders

Customs

1. PUBLIC NOTICE NO. 121/2026 - Dated: 21-8-2026

Issuance of Public Notice in respect of M/s. Marine Infrastructure Developer Pvt Ltd. CFS
https://www.taxtmi.com/circulars?id=70942

2. PUBLIC NOTICE NO. 124/2026 - Dated: 21-8-2026

Issuance of Public Notice in respect of M/s. Apollo World Connect Ltd. CFS - Appointment of Custodian under Section 45(1) of the Customs Act, 1962 for goods imported/exported through Kamarajar Port, Ennore
https://www.taxtmi.com/circulars?id=70943

DGFT

3. Trade Notice No. 22/2026-27 - Dated: 25-8-2026

Enhancements in the Pre-Shipment Inspection Agency (PSIA)/Pre-Shipment Inspection Certificate (PSIC) process
https://www.taxtmi.com/circulars?id=70965

4. Corrigendum to Public Notice No. 27/2026-2027 - Dated: 24-8-2026

Corrigendum to Public Notice No. 27/2026-2027 dated 20.08.2026 regarding Modalities for Application and Distribution ofTRQ for Import of 10 Lakh MT of Raw Sugar and one-time conversion from Advance Authorisation (AA) Scheme to Tariff Rate Quota (TRQ) Scheme
https://www.taxtmi.com/circulars?id=70940

SEBI

5. HO/47/18/11(1)2026-MRD-TPD1/I/19509/2026 - Dated: 24-8-2026

IT Resilience Index for Market Infrastructure Institutions (MIIs)
https://www.taxtmi.com/circulars?id=70945

6. HO/(449)2026-ITD-5_DIV1/I/19448/2026 - Dated: 24-8-2026

Alignment of SEBI's Cyber Incident Reporting Portal with FIRE format
https://www.taxtmi.com/circulars?id=70947

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Articles

1. 57th GST Council meeting may be convened urgently please.
https://www.taxtmi.com/article/detailed?id=17278

By: K Balasubramanian

2. Classification of Goods under GST: Can Technical Parameters overrule Common Parlance?
https://www.taxtmi.com/article/detailed?id=17277

By: ARCHANA JAIN

3. Proceedings Beyond Death - Notice Must Reach the Living
https://www.taxtmi.com/article/detailed?id=17276

By: Raj Jaggi

4. SEARCH & SEIZURE IN GOODS AND SERVICES TAX
https://www.taxtmi.com/article/detailed?id=17275

By: Dr. Sanjiv Agarwal

5. IGST Paid Under a Wrong Head to be Adjusted Against CGST/SGST Liability Before Any Recovery of Tax Interest or Penalty
https://www.taxtmi.com/article/detailed?id=17274

By: Bimal jain

6. LIMITATION FOR REFUND OF CUSTOMS DUTY
https://www.taxtmi.com/article/detailed?id=17273

By: DR.MARIAPPAN GOVINDARAJAN

7. CBIC Circular No. 36/2026-Customs: Temporary Facilitation for International Transhipment of Cargo amid Strait of Hormuz Disruptions.
https://www.taxtmi.com/article/detailed?id=17272

By: YAGAY and SUN

8. CBIC Circular No. 35/2026-Customs: New SOP for Clearance of Personal Postal Imports through Foreign Post Offices
https://www.taxtmi.com/article/detailed?id=17271

By: YAGAY and SUN

9. ISO 31010:2019 Risk Assessment Techniques: A Comprehensive Guide to Risk Identification, Analysis, and Evaluation Methods.
https://www.taxtmi.com/article/detailed?id=17270

By: YAGAY and SUN

10. Hoshin Kanri: Aligning Organizational Goals with Daily Work for Improved Strategic Ex*****on.
https://www.taxtmi.com/article/detailed?id=17269

By: YAGAY and SUN

11. Just-in-Time (JIT): Enhancing Efficiency Through Reduced Inventory and Waste in Indian Manufacturing and Service Sectors.
https://www.taxtmi.com/article/detailed?id=17268

By: YAGAY and SUN

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Highlights / Catch Notes

Income Tax

Post-assessment TDS refunds cannot depend on Form 26B and require a valid adjustment order before withholding.
https://www.taxtmi.com/highlights?id=103058

1. Case-Laws - HC : TDS refunds quantified under an assessment or appellate order under Section 201 constitute a crystallised entitlement carrying statutory interest. Form 26B, which concerns processing and adjustment of TDS statements under Section 200A and Rule 31A, cannot be required for such post-assessment refunds. Outstanding demands may justify withholding or adjustment only through a legally valid order under Section 245; demands linked to the assessee's PAN or sister TANs do not otherwise permit withholding. The quantified refunds were directed to be released with applicable interest, with additional interest for default.

Actuarial deficit funding and absent statutory due dates supported deductions for approved employee benefit fund contributions.
https://www.taxtmi.com/highlights?id=103057

2. Case-Laws - HC : Actuarial deficit contributions to approved superannuation and gratuity funds are distinguished from ordinary annual contributions subject to prescribed ceilings. Payments made to bridge actuarially determined shortfalls and preserve a fund's ability to meet obligations are treated as deductible gap-funding contributions. While approval of a gratuity fund continues, assessment proceedings cannot re-examine compliance with its approval conditions. Employees' PF and ESI contributions may be disallowed only where payment misses a due date prescribed by the applicable regime. Where no such date exists, an audit-report date generated solely for e-filing purposes cannot establish delay. The disallowances concerning all three categories of contributions were deleted.

Notional partner interest and remuneration cannot justify reassessment without evidence of actual receipt or mandatory entitlement.
https://www.taxtmi.com/highlights?id=103056

3. Case-Laws - HC : Reassessment of a partner cannot rest on notional interest on capital or remuneration where the partnership deed merely enables, rather than mandates, those payments. Clauses subject to mutual agreement, including a subsequent amendment providing that no interest was payable, did not establish an enforceable entitlement or actual receipt by the partner. Without material showing that the partner received interest or remuneration, there was no basis to infer income escaping assessment. The High Court therefore quashed the reassessment notices issued to the partner.

Interest on delayed refunds requires computation after appellate effect, while short TDS credit must be verified with consequential interest.
https://www.taxtmi.com/highlights?id=103055

4. Case-Laws - HC : Interest on delayed refunds arising from appellate-effect orders for Assessment Years 2014-15 to 2016-17 was directed to be computed under Section 244A(1A) from 1 December 2025 until payment, with additional Section 244A interest for September 2026 if payment was not made within the stipulated period. The Assessing Officer was required to secure consequential payment through the CPC. For Assessment Year 2014-15, the Assessing Officer was also required to verify the difference between tax deducted at source credit in the appellate-effect order and Form 26AS; if a short grant was established, interest under Section 244A(1) would run from 1 April 2014 until payment. No further direction applied to Assessment Year 2009-10.

Preliminary reassessment proceedings generally require statutory remedies unless jurisdiction is wholly absent or mandatory conditions are patently breached.
https://www.taxtmi.com/highlights?id=103054

5. Case-Laws - HC : Preliminary reassessment proceedings under Sections 148A(1) and 148A(3), followed by a notice under Section 148, are investigative steps that do not determine tax liability. Challenges concerning search-based information, applicability of Section 152(3), and sanction under Section 151 should ordinarily be examined during reassessment and through statutory appellate remedies. Writ intervention at this threshold is exceptional, limited to total absence of jurisdiction or a patent breach of a mandatory pre-condition; disputes requiring appraisal of material are not ordinarily examinable under Article 226. The challenge to reassessment initiation was therefore treated as premature, with recourse left to reassessment and appellate processes.

Deposit income deductions for co-operative societies require fresh review of funding costs and proportionate administrative expenditure claims.
https://www.taxtmi.com/highlights?id=103053

6. Case-Laws - HC : Deduction of cost of funds from deposit income of a primary agricultural credit co-operative society requires fresh consideration in light of Totagars Co-operative Sale Society. The claim for proportionate administrative and other expenditure remains open for adjudication. The impugned intimation, assessment orders and consequential penalty orders for the relevant assessment years were quashed, and the matter was remanded to the competent authorities. The society may submit objections and reply to the notice issued under section 142(1).

Agricultural land classification requires cumulative factual indicators, while industrial-purpose land and absent agricultural use defeat reinvestment relief claims.
https://www.taxtmi.com/highlights?id=103052

7. Case-Laws - AT : Agricultural-land status depends on the cumulative indicators applied in Sarifabibi, including land classification in registered deeds and revenue records, purchaser status and intended use, and the taxpayer's treatment of sale gains. Land described as industrial-purpose, recorded as fallow, sold for non-agricultural use and offered to tax as capital gain was treated as a capital asset rather than agricultural land. Relief for reinvestment in agricultural land requires fulfilment of the statutory conditions, including agricultural use of the transferred land during the prescribed period; industrial-purpose replacement land did not qualify. An unchallenged revisionary order cannot be contested through an appeal from the consequential assessment.

Previous owner's holding period determines long-term capital gains status and indexation for property devolved through a family trust.
https://www.taxtmi.com/highlights?id=103051

8. Case-Laws - AT : For property devolving on a beneficiary upon dissolution of a private family trust, the previous owner's holding period must be included where the previous owner's cost is adopted under section 49(1). Explanation 1(b) to section 2(42A) requires that deemed holding period to determine whether the asset is long-term; the properties therefore qualify as long-term capital assets. The same holding period applies to indexed cost of acquisition, which must be computed from the year in which the previous owner first held the property. Gains on the sale of such devolved immovable properties are accordingly taxable as long-term capital gains, and the related addition was deleted.

Interest income classification and linked borrowing costs: income from other sources retains treatment, with nexus-based deduction available.
https://www.taxtmi.com/highlights?id=103050

9. Case-Laws - AT : Interest on loans advanced from borrowed funds may remain taxable as income from other sources where the statutory basis invoked for business income applies only to termination or modification of an agency or management contract, and no such contract is established. Revenue cannot replace that basis with a general business-income provision by taking a different stand. Interest expenditure on borrowings used to advance loans generating taxable interest is deductible under section 57(iii) where a reasonable and proximate nexus with earning that income is established. Actual income generation in the same year is not required, and an alleged breach of Companies Rules does not by itself defeat the deduction.

Professional income estimation cannot treat gross receipts as net income solely for non-filing of a tax return.
https://www.taxtmi.com/highlights?id=103049

10. Case-Laws - AT : Professional income cannot be assessed by treating an entire doctor's gross receipts as net income solely because no return was filed. For a reasonable assessment, the taxpayer's offer of 50% of receipts as income, tax payment on that basis, and Revenue acceptance of the same approach in subsequent years for the identical profession were relevant, although they did not establish formal eligibility for presumptive taxation under section 44ADA for the relevant year. The Tribunal did not decide whether section 44ADA could be claimed without filing a return. Professional income was restricted to 50% of gross receipts; unpressed grounds were dismissed.

Delayed property conveyance perfecting pre-existing beneficial ownership does not trigger tax on inadequate consideration under section 56(2)(x).
https://www.taxtmi.com/highlights?id=103048

11. Case-Laws - AT : Delayed conveyance of land and building to a housing society, where the promoter had a pre-existing statutory and contractual duty to convey, does not constitute a fresh receipt of immovable property for inadequate consideration merely because registration occurred later. The conveyance perfected legal title and transferred remaining reversionary and leasehold interests in property already possessed and beneficially enjoyed by the society and its members. Intervening disputes explaining delayed registration did not alter the bona fide antecedent arrangement. Consequently, the difference between stamp duty value and settlement consideration was not taxable under section 56(2)(x), and the related addition was deleted.

Outright trademark acquisition is capital expenditure, so foreign remittance attracts withholding only where income is chargeable to tax.
https://www.taxtmi.com/highlights?id=103047

12. Case-Laws - AT : Outright acquisition of trademark ownership for lump-sum consideration constitutes acquisition of a capital asset rather than payment for the use of intellectual property or continuing royalty. A foreign remittance for such transfer does not by itself create a tax deduction obligation under section 195; withholding applies only where the remitted sum is chargeable to tax in India. Where the assignment agreement, transferred rights, valuation, commercial terms, ownership evidence and recipient's tax residency certificate establish an ownership transfer, the payer cannot be treated as in default for non-deduction of tax. Demands for tax and consequential interest under sections 201(1) and 201(1A) were deleted.

NRE deposit interest exemption may continue after residential status changes if RBI or FEMA permission to maintain the account exists.
https://www.taxtmi.com/highlights?id=103046

13. Case-Laws - AT : Section 10(4)(ii) exempts interest on NRE deposits where an individual is either a person resident outside India under FEMA or is permitted by the RBI to maintain the NRE account. A change in residential status is therefore not conclusive of exemption eligibility. Continued authority under the applicable RBI/FEMA framework to maintain NRE deposits requires factual verification. Eligibility must be examined on this limited basis, with an opportunity of hearing, without reopening unrelated issues.

Unaccounted real-estate consideration requires transaction-specific proof; price estimates and third-party loose sheets cannot establish alleged cash payments.
https://www.taxtmi.com/highlights?id=103045

14. Case-Laws - AT : Additions for alleged unaccounted consideration in real-estate transactions require cogent, reliable and transaction-specific evidence of actual cash receipt or payment. Differing internal price references, ERP capabilities, employee statements, WhatsApp communications and an unsupported discount-based estimation cannot establish suppressed sale consideration without purchaser-wise proof, cash records, receipts, money trail or parallel books. Estimation may quantify undisclosed income only after its existence is established. Third-party loose sheets primarily attract statutory presumptions against their possessor; corroboration of recorded cheque payments does not prove an alleged cash component. Denial of cross-examination of the sheet's author is procedurally defective. Registered conveyances, books and banking trails remain effective affirmative evidence unless displaced by cogent material.

Form 10-IC option under concessional corporate taxation continues for subsequent years without annual refiling requirements.
https://www.taxtmi.com/highlights?id=103044

15. Case-Laws - AT : Section 115BAA concessional taxation remains available in subsequent assessment years once a domestic company validly exercises the option through Form 10-IC. The option applies thereafter and cannot be withdrawn, so a fresh Form 10-IC is not required for each succeeding year. Denial of the concessional rate solely because no new form was filed for the relevant subsequent year is unsustainable.

Depreciation as charitable application remains available where fixed-asset acquisition cost was not previously claimed as income application.
https://www.taxtmi.com/highlights?id=103043

16. Case-Laws - AT : Section 11(6) bars depreciation as application of income for charitable purposes only where the acquisition cost of the relevant asset has already been claimed as application of income in the same or an earlier year. Where a charitable institution has not claimed capital expenditure on acquiring fixed assets as revenue application and claims only depreciation, the restriction does not create a double deduction. Depreciation on those fixed assets may therefore be treated as allowable application of income for the relevant assessment year.

Segmental TNMM benchmarking prevents duplicate adjustments for integral intra-group support services under an assured-margin operating model.
https://www.taxtmi.com/highlights?id=103042

17. Case-Laws - AT : Segmental aggregation under TNMM prevents a separate nil arm's length price adjustment for intra-group back-office, sales and marketing support services that are integral operating costs of subscription and services segments under an assured-margin model; a separate adjustment would duplicate the segment-level benchmarking. Working capital adjustment must be allowed where differing working-capital levels materially affect comparable margins, despite unavailable daily public balances, subject to verification. Comparable selection requires functional similarity: product developers, education providers, companies with proprietary products or intangibles, diversified operations, entrepreneurial risks, or absent segmental data should be excluded from routine service-provider benchmarks. TDS credit must be allowed, interest under section 234A is not leviable on the stated facts, and consequential tax computation is required.

Composite residential flat exemption upheld where supplementary agreement merged adjoining units and additional evidence supported the taxpayer's investment claim.
https://www.taxtmi.com/highlights?id=103041

18. Case-Laws - AT : Admission of crucial additional evidence supporting capital-gains exemptions was valid because the Commissioner (Appeals) obtained a remand report and found the supplementary agreement necessary for substantial justice. The agreement amalgamated two adjoining flats into one composite residential unit with a single surviving flat number. The taxpayer's investment and stipulated share in that composite unit supported exemptions under sections 54 and 54F, as the Assessing Officer had not verified facts sufficient to displace that position. The disallowance was deleted and the revenue's appeal was dismissed.

Interest expenditure nexus with income-producing assets permits full section 57 deduction without capping it to annual interest income.
https://www.taxtmi.com/highlights?id=103040

19. Case-Laws - AT : Interest expenditure under section 57 remains deductible where borrowings retain a real nexus with assets generating income taxable under Income from Other Sources. Conversion of investments into sale proceeds and then fixed or term deposits does not, by itself, break that nexus. Deduction is not limited to interest income realised in the same year; arithmetical equivalence between expenditure and annual income is not required. An oral interest arrangement may establish an existing liability when supported by conduct and historical treatment. The creditor's accounting method and timing of taxability of corresponding interest are independently determined and cannot restrict the borrower's otherwise allowable deduction, subject to year-wise quantification, verification, and separate statutory disallowances.

Intra-group management-fee adjustment deleted; tax refunds, TDS credit and interest charges require factual verification or recomputation.
https://www.taxtmi.com/highlights?id=103039

20. Case-Laws - AT : Intra-group management-fee transfer pricing adjustments cannot be sustained where the issue has consistently been resolved in the taxpayer's favour on materially similar facts in earlier years. Tax refunds from customs and VAT/GST are balance-sheet items rather than income; any return-processing adjustment treating them as income requires factual verification and consequential relief under law. Claimed short credit for tax deducted at source must be verified after giving the taxpayer an opportunity to substantiate the claim. Interest charged under the applicable provisions requires recomputation and a clear section-wise bifurcation to enable verification of its correctness. The management-fee adjustment was deleted, while the remaining matters required verification or recomputation.

Associated-enterprise status requires participation in management, control or capital; commercial dependence alone cannot disqualify an internal CUP.
https://www.taxtmi.com/highlights?id=103038

21. Case-Laws - AT : Sections 92A(1) and 92A(2) require a harmonious reading: the statutory circumstances in section 92A(2), including business dependence under section 92A(2)(g), do not independently establish an associated-enterprise relationship without participation in management, control or capital under section 92A(1). Commercial dependence or distribution exclusivity alone is insufficient absent evidence of ownership, voting rights, managerial participation or financial control. For internal CUP analysis, contractual differences do not disqualify an uncontrolled transaction unless they materially affect the royalty rate and cannot be eliminated through reasonably accurate, objectively verifiable adjustments. Royalty benchmarking was remanded to examine those differences and adjustments; if CUP is unreliable, the most appropriate method must be independently selected.

Renewable Energy Certificate proceeds are capital receipts, excluded from eligible business-profit deductions and minimum alternate tax book profit.
https://www.taxtmi.com/highlights?id=103037

22. Case-Laws - AT : Sale proceeds of Renewable Energy Certificates received by renewable-energy power generators are treated as capital receipts because the certificates incentivise environmental benefits of renewable generation rather than arise from producing or selling goods or rendering services. They therefore do not constitute business income or profits derived from an eligible power-generation undertaking for deduction purposes. As capital receipts, the proceeds are also excluded from book profit computed for minimum alternate tax purposes under section 115JB. The Revenue's challenge to deletion of the related disallowance and to exclusion from book profit was rejected.

GST

GST/TDS non-deposit must follow the statutory GST framework; later substantive penal provisions cannot apply retrospectively to earlier defaults.
https://www.taxtmi.com/highlights?id=103066

23. Case-Laws - HC : GST/TDS non-deposit arising from payments for Gram Sabha works falls primarily within the U.P. Goods and Services Tax Act, 2017, which provides a complete mechanism for determination of default, interest, penalty, prosecution and compounding. General penal provisions cannot be invoked unless allegations independently establish a distinct offence, such as dishonest misappropriation, forgery, cheating or wrongful gain. Substantive penal law applies prospectively: a penal provision introduced after the alleged 2017-18 default cannot create or alter the applicable offence. Proceedings based solely on Section 316(5) BNS were therefore unsustainable, while action under the GST Act remained available.

Extended GST limitation requires specific fraud or suppression allegations in the show-cause notice; bare assertions invalidate proceedings.
https://www.taxtmi.com/highlights?id=103065

24. Case-Laws - SC : Extended limitation under Section 74 of the CGST Act for fraud, wilful misstatement or suppression of facts requires the show-cause notice itself to disclose specific allegations and the factual basis supporting that inference. A bare reference to "fraud or concealment of facts" does not establish a valid basis for invoking the extended period, and deficiencies in the notice cannot be cured through a counter affidavit. Where the ordinary limitation period has expired, including applicable exclusion of time, an unsupported invocation of extended limitation renders the notice unsustainable. Further proceedings based on such a notice cannot continue.

Assignment of long-term leasehold rights transfers benefits of immovable property and falls outside taxable GST supply.
https://www.taxtmi.com/highlights?id=103064

25. Case-Laws - HC : Assignment by sale or transfer of long-term leasehold rights in land and building to a third-party assignee constitutes transfer of benefits arising from immovable property. The assignee replaces the original allottee as lessee. Such assignment falls outside taxable supply under section 7(1)(a), clause 5(b) of Schedule II and clause 5 of Schedule III of the GST law, and is therefore not liable to GST. On this basis, the GST order concerning the assignment was quashed and the writ petition was allowed.

Assignment of long-term leasehold rights transfers immovable-property benefits and remains outside GST supply for third-party assignees.
https://www.taxtmi.com/highlights?id=103063

26. Case-Laws - HC : Assignment of long-term leasehold rights in land and building to a third-party assignee transfers benefits arising from immovable property. Where the assignee replaces the original allottee as lessee, the transaction falls outside the scope of supply and is not liable to GST. Applying the binding ruling on comparable assignments, upheld by dismissal of the SLP, the High Court quashed the show cause notice and assessment order levying GST and allowed the writ petition.

Inter-Commissionerate transfer for Executive Assistants fails where separate cadres lack rules permitting absorption into another Commissionerate.
https://www.taxtmi.com/highlights?id=103062

27. Case-Laws - HC : Executive Assistants are not entitled to inter-Commissionerate transfer where each Cadre Controlling Authority maintains a separate cadre and the applicable Recruitment Rules provide no absorption by transfer into another Commissionerate. The transfer policy therefore applies to this cadre, and appointment in the transferee Commissionerate cannot be secured through inter-Commissionerate transfer. Transfers treated as deemed loan arrangements may consequently result in repatriation. A request for relaxation on medical grounds may be made by representation for consideration on its merits.

Mandatory e-way bill generation before movement makes subsequent production ineffective against tax-evasion penalties for intercepted taxable goods.
https://www.taxtmi.com/highlights?id=103061

28. Case-Laws - AT : Rule 138(1) requires prescribed information to be furnished and an e-way bill generated before taxable goods begin moving. Transport without an e-way bill at interception was treated as establishing intent to evade tax, because later online generation could not cure the failure of statutory monitoring or prevent potential account manipulation. A manually issued invoice was not regarded as an equivalent safeguard. The appellate authority's contrary reliance on precedent was distinguished, and the original tax and penalty order under the detention provisions was restored.

E-way bill delay without evidence of tax evasion remains a procedural lapse, requiring penalty to be set aside.
https://www.taxtmi.com/highlights?id=103060

29. Case-Laws - AT : Transportation of motorcycles without an e-way bill at interception was treated as a procedural lapse where the e-way bill was generated shortly thereafter and the transaction was fully traceable through invoices, challans, accounts, bank records, and vehicle identification details. No discrepancy in quantity, value or classification, nor evidence of suppression, undervaluation, fake documents, unaccounted goods or intent to evade tax, was identified. The penalty was therefore set aside, and the deposited amount was refundable in accordance with law, subject to verification and statutory requirements.

Psyllium seed classification treats dried Isabgol as taxable rather than exempt fresh or chilled plant material
https://www.taxtmi.com/highlights?id=103059

30. Case-Laws - AAR : Psyllium seeds (Isabgol) supplied in natural, raw and unprocessed form after procurement through APMC auctions are classified under Customs Tariff sub-heading 1211 90 13. The seeds are treated as dried rather than "fresh" or "chilled" plants or plant parts and therefore do not qualify for exemption under the relevant entry for fresh or chilled goods under HSN 1211. The stated conclusion treats the supply as taxable at 5%, notwithstanding a conflicting reference to exemption for goods of seed quality.

Customs

Customs seizure safeguards prevent detention-based limitation avoidance and invalidate provisional release conditions for imported vehicles under an invalidated circular.
https://www.taxtmi.com/highlights?id=103069

31. Case-Laws - HC : Customs seizure safeguards require more than a panchnama restricting dealings with an imported vehicle. Such a panchnama constitutes detention, not lawful seizure, unless a separate reasoned order records belief that the goods are liable to confiscation and, where physical seizure is impracticable, satisfaction under the applicable proviso. Authorities cannot retain goods indefinitely as detained and later issue a seizure memo to bypass limitation for a confiscation notice; without a lawful contemporaneous seizure order, limitation runs from actual detention. Provisional-release conditions founded on an invalidated circular provision are illegal. Release of the imported vehicle was directed, with costs imposed.

Prospective operation of customs exemptions prevents reliance on later amendments when considering provisional release of imported goods
https://www.taxtmi.com/highlights?id=103036

32. Case-Laws - HC : Prospective operation of a customs exemption amendment prevents its use against imports where the Bill of Lading predates the amendment's effective date and no retrospective effect is expressly provided. A request for provisional release of used digital multifunction print, copying and scanning machines must therefore be considered under Section 110A without relying on the later amendment. Release may be granted subject to lawful conditions and remains subject to adjudication. The applicable duty rate is to be determined under Section 15 of the Customs Act, 1962.

Proportionate Customs Broker discipline limits appellate interference where the original penalty decision is neither arbitrary nor legally infirm.
https://www.taxtmi.com/highlights?id=103035

33. Case-Laws - AT : Appellate restraint governs interference with disciplinary penalties under the Customs Broker Licensing Regulations. The original authority must assess the evidence and select an appropriate sanction; an appellate forum cannot replace that choice merely because another penalty is possible, absent arbitrariness, perversity or legal infirmity. Licence revocation, which can end the broker's business, is not automatic for every regulatory breach and must remain proportionate to the proved misconduct. Suspicion, however strong, cannot substitute legal proof. As no defect was established in the Commissioner's decision to impose a monetary penalty instead of revocation, the departmental challenge and request for remand were rejected.

DGFT

Wheat export policy shifts from prohibited to free, permitting immediate exports of specified durum wheat and wheat products.
https://www.taxtmi.com/highlights?id=103068

34. Notifications : The export policy for durum wheat classified under ITC (HS) code 10011900 and wheat classified under ITC (HS) code 10019910 is revised from 'Prohibited' to 'Free' with immediate effect. Exports of these specified wheat products may therefore proceed without the prior prohibition applicable under the earlier policy classification, subject to the applicable Foreign Trade Policy framework and other relevant conditions.

Wheat flour exports move to a free policy, permitting export of atta, maida, semolina and related products immediately.
https://www.taxtmi.com/highlights?id=103067

35. Notifications : The export policy for wheat or meslin flour, including atta, maida, semolina, wholemeal atta and resultant atta classified under ITC (HS) Code 11010000, is revised from Prohibited to Free with immediate effect. Exports of these wheat flour and related products may therefore be undertaken without the prior prohibition applicable under the earlier export policy, subject to applicable foreign trade requirements.

SEBI

Urgent interim relief exception permits commercial suit without pre-institution mediation where immediate disclosure and asset protection are genuinely required.
https://www.taxtmi.com/highlights?id=103034

36. Case-Laws - HC : Pre-institution mediation under Section 12A is mandatory for commercial suits that do not contemplate urgent interim relief. Whether the exception applies must be assessed from the plaintiff's standpoint, considering the suit's nature, cause of action and pleaded need for immediate protection; an unfounded urgency plea cannot bypass mediation. Urgent relief was genuinely contemplated where the suit sought investor recovery, earlier disclosures were inadequate, and ad-interim disclosure and asset-protection measures had already been granted despite existing regulatory restraints. The subsequent delay objection failed because investor claims had to be received before institution. Pre-institution mediation was therefore not a condition precedent, and rejection of the plaint under Order VII Rule 11 was unwarranted.

Indian Laws

Registrar's power to amend service rules survives circular nomenclature and non-compliance with a directory legislative laying requirement.
https://www.taxtmi.com/highlights?id=103033

37. Case-Laws - SC : Registrar's statutory power to frame service rules includes the power to amend, vary or rescind them. Deletion of a service-rule bar preventing technical employees from promotion to non-technical posts remains valid where ordered by the Registrar; a communication issued by an Additional Registrar may convey that decision, and its nomenclature as a circular does not displace the underlying statutory authority. A statutory requirement to lay amended rules before the Legislative Assembly is directory, despite use of "shall", where no consequence follows from non-laying. Non-compliance therefore does not invalidate the amendment or a promotion made under it.

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News - Feeds

1. IICA Conducts inaugural session of 11th Batch of its Certified CSR Professional Programme
https://www.taxtmi.com/news?id=74461

2. Net Profit of Regional Rural Banks (RRBs) Rises to Record ?10,176 Crore, Total Business Cross ?13.5 Lakh Crore in FY 2025-26
https://www.taxtmi.com/news?id=74460

3. Economy shows notable resilience despite global headwinds: RBI bulletin
https://www.taxtmi.com/news?id=74458

4. UP Cong chief writes to PM Modi on ethanol policy, sugar prices
https://www.taxtmi.com/news?id=74459

5. Sugar prices rise by nearly Re 1 per kg to about Rs 64
https://www.taxtmi.com/news?id=74457

6. Trump says he's considering renaming Lake Ontario as 'Lake America' as trade war with escalates
https://www.taxtmi.com/news?id=74456

7. Flash Report on Central Sector Infrastructure Projects worth ?150 crore and above
https://www.taxtmi.com/news?id=74455

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