ILO publishes a series of legal Newsletters which provide expert legal commentary in the form of concise, regular news updates. The Newsletters are written in collaboration with over 500 of the world's leading experts and cover more than 100 jurisdictions.
Arbitration & ADR
The courts continue to retain jurisdiction over pre-BALCO arbitration agreements under the Bhatia International regime. However, theories of expressed and implied exclusions have been carved out to bar the application of Part I of the Arbitration and Conciliation Act 1996. That said, unless the courts provide further clarity, implied exclusion of Part I does not apply to two Indian parties which have agreed to foreign-seated arbitration.
Company & Commercial
The Companies Act 2013 brought about significant changes for private limited companies. Under the 2013 act, most of the exemptions available to private limited companies were withdrawn. As a result, they have been subject to a number of additional compliance requirements. In response, the government recently issued a notification exempting private limited companies from certain provisions.
The Supreme Court recently ruled that fees for technical services in relation to projects involving imported goods are not includable in the assessable value of the imported goods under Rule 9(1)(e) of the Customs Valuation Rules 1988. As such, they are not liable to customs duty in India. In this context, the court held that the charges in question related to post-import activities and were therefore not liable to duty.
The Supreme Court recently declared that Rule 9(2)(ii) of the Customs Valuation (Determination of Price of Imported Goods) Rules 1988 is arbitrary to the extent it seeks to introduce a fiction for arriving at the purported cost of loading, unloading and handling charges, even where the actual charges paid are available and ascertainable. The rule is applicable only where the actual cost of such services is not ascertainable.
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