articles
Customs
Interest on IGST: Decision of Mahindra & Mahindra and subsequent legal developments
14 January 2025
The article discusses the Bombay High Court in the case of Mahindra & Mahindra which had ruled that as there is no substantive provision in Section 3 of the CTA that provides for payment of penalty or interest on duty other than BCD, penalty/interest payable on CVD/SAD is not recoverable. The author discusses the subsequent changes by the Finance (No.2) Act, 2024 and how the issues has now been referred to the Larger Bench.
Decoding Conformity Assessment Scheme-II of BIS – The Registration Scheme
13 January 2025
In the previous issue of LKS BIS Amicus, we threw light upon various aspects of the Product Certification Scheme, i.e. Scheme-I of the Bureau of Indian Standards (BIS). The next Scheme listed under the BIS (Conformity Assessment) Regulations, 2018 is Scheme-II, also known as the Registration Scheme, and involves self-declaration of conformity. Till date, BIS has issued 6 QCOs under this scheme, covering a total of 73 products.
International Trade & WTO
India imposes Quantitative Restrictions on imports of Metallurgical Coke
07 January 2025
The article discusses at length the recent decision of the Ministry of Commerce to impose quantitative restrictions on imports of Low Ash Metallurgical Coke which is a crucial raw material for the steel industry that follows production through the blast furnace route. Analysing the notification and the subsequent DGFT Trade Notice, the author discusses various hardships which will be faced by the steel industry...
Regulatory
Adoption of Artificial Intelligence in the FinTech sector: A regulatory overview
06 January 2025
The article discusses how Banks and financial institutions are leveraging AI in the financial sector for customer onboarding, periodic monitoring, customer engagement, credit risk assessment, cybersecurity and compliance. The authors also discuss the regulatory and compliance risks like issues related to intellectual property, transparency, accountability, contractual risks, data privacy, and cyber risks.
Customs
Laboratory Chemicals: Challenges posed by this unique entry in Indian Tariff
02 January 2025
The article discusses a recent change in the definition of ‘Laboratory chemicals’. Elaborately stating the triggering point for the amendment, the true meaning of the term, what is ‘own use’, and the primacy of classification under Heading 9802, the authors state that in its current form, the definition could be a breeding ground for future disputes. According to them, the Government should consider amending the entry of laboratory chemicals to restrict it to certain situations.
Customs
IGST on FTWZ transactions: Retrospective amendment to put dichotomy to rest
01 January 2025
The article discusses a recent recommendation of the GST Council in respect of transactions by Free Trading and Warehousing Zones (‘FTWZs’) within their premises, i.e. without exporting or clearing the goods in the Domestic Tariff Area. The authors elaborately discuss the conflict in the light of different AAR Rulings, including the use of different methods of interpretation (strict and purposive) for this purpose.
Direct Tax
Pandora’s box of income-tax implications arising from 2014 amendment to Employee Pension Scheme, 1995
20 December 2024
The article discusses certain unforeseen income-tax implications, on the monies that would be contributed to the Pension Fund, as well as monies that would be receivable from the Pension Fund and Provident Fund. The discussion is limited to the income-tax liability in the hands of the employees on, transfer of balances from PF Scheme to Pension Scheme, contribution to the Pension Scheme from PF Scheme, and on receipt of pension from the Pension Scheme at the time of retirement.
Intellectual Property
Patentability of computer related inventions – Court’s inconsistent approach underscores complexity but creates uncertainty
17 December 2024
The Delhi High Court, in two of its recent decisions, demonstrated disparate approaches of assessing patentability of computer related inventions (CRIs) under Section 3(k) of the Patents Act, 1970. Discussing the two decisions, the article highlights that this underscores the complexity and nuanced nature of assessing patentability of CRIs under the Indian patent law.
Intellectual Property
The number game – Alphanumeric and numeral trademarks
17 December 2024
The article discusses a recent dispute wherein a well-known Indian airline has instituted a trademark infringement suit against a reputed Indian car manufacturer, over the use of its alphanumeric mark ‘6E’. Elaborately discussing as to what are alphanumeric and numeral marks, their registrability, Trade Mark Registry’s approach to distinctiveness, and jurisprudence on conflicts over such marks, the authors note that…
Regulatory
Ensuring compliance with the Product Certification Scheme of BIS
10 December 2024
The article throws light on the essential elements of Scheme-I of the BIS (Conformity Assessment) Regulations, 2018, also known as the Product Certification Scheme of BIS. Elaborately discussing the procedures, the authors state that while the procedural aspects demand meticulous compliance, the benefits certainly outweigh.
International Trade & WTO
The UK CBAM: Carbon conundrum at the crossroads of trade and sustainability
05 December 2024
The article highlight the Indian businesses need to become proactive in understanding the legal obligations, compliance requirements, and commercial implications of the UK CBAM, and assess the same in advance so that they can give a clear picture to their customers in UK on the potential CBAM exposure.
Corporate
Navigating the challenges of Quick Commerce: Can Indian regulatory framework keep up?
03 December 2024
The article explores the legal challenges within the Quick Commerce sector, evaluates India's regulatory readiness, and highlights key legal considerations for these platforms. It is essential to note that these challenges primarily arise owing to the unique features of quick Commerce being supply through dark stores and complex ownership structures. The authors also highlight some potential considerations and solutions.
Corporate
Extending ‘employee’ status to Gig Workers – Implications of employee misclassification
02 December 2024
Elaborately analysing the recent Karnataka HC decision, the authors raise a pertinent question - if the driver-partners can be considered employees of the cab aggregator for the purposes of PoSH Act, basis the level of control and supervision wielded by the cab aggregator, why not for the purposes of employee compensation, state insurance, provident fund, gratuity, leaves, protection as a workman, etc.
Goods and Services Tax
Blocking of ITC ledger: The havoc of Rule 86A
28 November 2024
The article discusses Rule 86A of the CGST Rules, which empowers the department to block ITC ledger in cases involving fake ITC. Observing that greater the power, the more dangerous the abuse; and it is no different in the case of said Rule, the authors deliberate on various case law on number of issues including on ‘borrowed satisfaction’, ‘temporary measure’, ‘negative blocking’, etc.
Direct Tax
Taxability of sale consideration retained in escrow: A conundrum
22 November 2024
Ordinarily in the case of a sale, the price received by a seller should be taken as the ‘full value of the consideration’ for calculating capital gains. However, a legal quandary arises in the cases where a portion of the consideration is retained in an escrow account. Taking note of various case law, the article ponders over the questions as to whether such retained amount falls within the purview of ‘full value of the consideration’ and what would be the year of its taxation
Intellectual Property
Maneuvering the expedited routes of patent prosecution – IPO, EPO and USPTO
21 November 2024
Bearing in mind the existing provisions for expedited examinations, the article focuses on key routes available at the Indian Patent Office (‘IPO’) compared with the European Patent Office (‘EPO’) and the United States Patent and Trademark Office (‘USPTO’).
Intellectual Property
Bridging the Divide in Indian Biodiversity Law
14 November 2024
The Biological Diversity (Amendment) Act, 2023, and the Biological Diversity Rules, 2024, which will come into effect after 21 December 2024, provide an orchestration for management of India’s biological resources with due consideration to the interests of stakeholders as well as the local communities.
Regulatory
Understanding the Conformity Assessment Schemes of BIS
13 November 2024
The article highlights ten distinct conformity assessment schemes, each aimed at facilitating compliance with Indian Standards (IS) across various sectors and analysis their legal scope, and significant updates.
International Trade & WTO
Provisional anti-dumping measures in India – Overview of the law and practice
07 November 2024
The article discusses the law and practice surrounding the provisional anti-dumping measures in India. It elaborately analyses the legal provisions, timelines for imposition of provisional anti-dumping duty (‘ADD’), and a few other practical aspects relating to imposition of such duty.