articles
Customs
Unveiling the right to challenge assessments: Is consent the end?
21 February 2025
The article discusses the recent decision of the Delhi High Court in Niraj Silk Mills which has (re)triggered the debate over the significance of ‘consent’ given at the time of assessment of bill of entry or shipping bill, be it regarding rate of duty / valuation / classification. It focuses on the critical aspect of whether an assessee can challenge an assessment even after giving consent / acceptance in writing.
Corporate, Customs
India’s vision for global dominance – Incentivising domestic manufacturing and export promotion
21 February 2025
The article discusses the key takeaways of the Union Budget 2025 in relation to the Government’s ‘Make in India’ initiative. The Government has sought to further strengthen and boost domestic manufacturing in India and promote export and employment in key sectors like textiles, shipment, toys, electronic vehicles and leather.
Intellectual Property
The battle of the ZEOs: Mahindra’s trademark gets the green light
20 February 2025
The Single Judge of the Delhi High Court has rejected claims of trademark infringement and refused a plea seeking to restrain Mahindra Last Mile Mobility Ltd. from selling its electric vehicle under the trademark ‘eZEO’. The dispute was over the trademarks ‘EZIO’ and ‘eZEO’ and highlights the importance of the test of passing off, brand identity, first in the market advantage and weight of established reputation.
Direct Tax
Capital reduction: End of the road for taxpayer fate?
19 February 2025
The Supreme Court recently held that the complete reduction of capital (resulting in cancellation of shares) amounts to ‘transfer’ in terms of Section 2(47) of the Income Tax Act, 1961 and the consequent payout would be exigible to tax under the head capital gains. The article attempts to explore the possible fate of the taxpayers to claim capital loss in a scenario where no payout is received pursuant to a reduction in share capital.
Commercial litigation
Principle of Comity: Answer to the conflict in concurrent jurisdiction
19 February 2025
The article elaborately discusses the Principle of Comity. Citing various decisions and discussing international jurisprudence, it notes that an orderly disorder has crept into various statutes where multiple authorities have concurrent jurisdiction to decide the same issue and such authorities choose to exercise the same simultaneously, leading to conflicting orders. has context menu
Customs
Dawn of new era of provisional assessments under Customs Section 18
12 February 2025
The article discusses a recent proposed amendment in Section 18 of the Customs Act that appears promising on ease of business. On deeper analysis, however, it does pose various questions, as the consequences of non-fulfilment of the timelines proposed are not specified.
Direct Tax
Union Budget 2025 – Tax treatment of securities held by AIF (CAT I and II) in India
11 February 2025
The article discusses Alternate Investment Funds (AIFs), which are privately pooled investment vehicles which collect funds from investors, whether Indian or foreign, for investing in certain class of securities. It examines their special taxation regime, the issues with the current provisions, the proposed amendments, and the impacts of these amendments after the Finance Bill, 2025.
International Trade & WTO
Beyond borders: The challenge of transnational subsidies in global trade
10 February 2025
The article addresses the issue of transnational subsidies in global trade across three sections. The first section examines the present framework of the SCM Agreement. The second section focuses on developments in the European Union (EU) and the United States of America (USA). Finally, the third section discusses the way forward for India.
Customs
Amnesty Scheme for Advance Authorization / EPCG: No penalty for export obligation defaults after regularization
10 February 2025
The article discusses the Amnesty Scheme, which offers the exporters a one-time opportunity to regularize defaults in export obligations under the Advance Authorization and EPCG schemes. It notes that the loophole of absence of any mention of penalty waiver was cited by Customs Authorities to demand penalty but, recently the CESTAT has held to the contrary.
Direct Tax
Union Budget 2025: Navigating the new presumptive tax landscape for non-residents
10 February 2025
The article discusses the scope of the new presumptive taxation scheme which has been proposed for non-residents engaged in providing services or technology in India for setting up electronics manufacturing facility or manufacturing electronic products in India. It discusses the issues which need clarification for the application of the scheme.
Customs
Interactive flat panel displays: Budget 2025 kindles a curiosity
07 February 2025
The article discusses the classification and the rate of customs duty on Interactive Flat Panel Displays (IFPDs) as announced in Budget 2025. The authors note that while there is an increase of BCD rate from 10% to 20% on goods classifiable under Tariff Item 8528 59 00, the IFPDs should be correctly classifiable under Heading 8471.
Customs
Laboratory chemicals and Budget 2025: Examining the change
07 February 2025
The article discusses on changes made in the Budget 2025 in regards of laboratory chemicals which is covered under Heading 9802 of the Customs Tariff in India, a part of Chapter 98 which is unique to India.
Corporate
Rent/lease agreements – Enforceability of lock-in period
07 February 2025
Typically, parties to a rent/lease agreement insert a lock-in period to ensure that either party is unable to terminate the agreement before the stipulated period. Such agreements also incorporate a provision for liquidated damages in the form of rent for the remainder of the lock-in period. The article discusses the jurisprudence on ‘liquidated damages’ in India and its effect on the lock-in-period.
Competition and Antitrust
CCI raises scrutiny of minority investments
04 February 2025
The article discusses a recent decision of the CCI wherein the Competition Commission penalised an Investment Management company and dismissed the claim that subscription to convertible securities should receive differential treatment from acquisition of shares. The CCI was also not persuaded by the argument that the rights package was available to all investors, and should therefore, be considered ordinary shareholder rights.
Customs
Continuing dilemma over classification of parts and accessories of motor vehicles
04 February 2025
This article analyses the recent judgment delivered by the Kerala High Court in the case of Auto Fit Car Interiors Pvt. Ltd. v. Union of India & Ors., concerning classification of car seat cover and steering cover, made up of textile fabrics and cotton handloom fabrics and its entitlement under Merchandise Exports from India Scheme (MEIS).
Customs
Reconciling labelling requirements applicable under various Rules and Regulations for goods imported into India
30 January 2025
Certain labelling laws target goods by category - food, drugs, etc., while there are others which target goods based on other aspects like form of packaging (LM Rules) or applicability of quality standards (BIS). As ambit of these laws is varied, a single product might require complying with labelling requirements set out in more than one law. Hence, the labelling requirements prescribed under different laws for the same product is required to be examined.
Competition and Antitrust
NCLAT Stays CCI Order - Gives a ‘Blue Tick’ to Messaging Major to Continue Sharing User Data
30 January 2025
The article discusses the recent partial stay granted by the NCLAT to the direction issued by the Competition Commission of India to WhatsApp LLC, prohibiting it from sharing user data collected on its Over-the-Top messaging app on the smartphones (WhatsApp application) with other Meta companies for advertising purposes.
Direct Tax
Are there still broken links in taxation of ‘Broken Period Interest’?
22 January 2025
The article highlights that while the recent judgment of Supreme Court in Bank of Rajasthan has put to rest the controversy in context of investments made by banks in government securities, the taxability of Broken Period Interest for other taxpayers is far from settled.
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.