GST Show-Cause Notice Must Specify Whether ITC Misuse Involves Fraud Or Suppression Of Facts: Himachal Pradesh High Court

The Himachal Pradesh High Court has held that tax authorities invoking Section 74 of the Himachal Pradesh Goods and Services Tax (HPGST) Act, 2017, must clearly specify whether the alleged wrongful availment of Input Tax Credit (ITC) resulted from fraud, wilful misstatement, or suppression of facts. The Court observed that these grounds must be substantiated by the allegations in the show cause notice, and the statutory provision cannot be invoked merely by reproducing its language without...

Arbitral Awards Not Invalid Due To Lack Of MSME Registration At Relevant Time: Jammu & Kashmir And Ladakh High Court

The Jammu and Kashmir and Ladkah High Court has held that arbitral awards arising from disputes referred to a Micro and Small Enterprises Facilitation Council do not become nullities merely because the supplier is assumed to have been unregistered under the Micro, Small and Medium Enterprises Development Act, 2006, when the transactions took place. The court dismissed three revision petitions challenging the orders of the Principal District Judge, Jammu, which had rejected the objections...

Stamp Duty Refund Cannot Be Denied Merely Because Original Receipt Is Lost: Bombay High Court

The Bombay High Court has held that a stamp duty refund claim cannot be rejected solely because the original e-Secured Bank and Treasury Receipt (ESBTR) has been lost, if the payment, loss and non-use of the receipt can be established through official records and other reliable evidence. Justice Amit Borkar observed that the State cannot retain stamp duty that is otherwise refundable under the law merely because the original receipt is unavailable. The Court observed, "At the same time,...

Karnataka High Court Refuses To Quash FIR Against MyFitness Founders Over Alleged Misrepresentation On Brand Use

The Karnataka High Court has refused to quash a criminal case against the former promoters of MyFitness, a peanut butter brand, over allegations that they concealed contractual restrictions on the use of its brand name before Mensa Brands invested over ₹142 crore in the company.Justice M. Nagaprasanna, in an order dated October 16, held that the existence of parallel arbitration and company law proceedings did not prevent an investigation into the alleged suppression of material information.The...

Unsigned Copy Of Arbitral Award Sent By Opposing Party Cannot Trigger Limitation To Challenge It: Kerala High Court

The Kerala High Court has reiterated that the three-month limitation period for challenging an arbitral award begins only when a party receives a duly signed copy of the award, not when the opposing party forwards an unsigned copy.A single-judge bench of Justice Mohammed Nias C.P. observed, “Given the above, it follows that an unsigned draft, photocopy or other copy forwarded by the opposite party cannot, merely because it conveys the contents of the award, substitute for delivery and receipt of...

Delayed Stock Entries From Genuine Transactions Cannot Alone Justify Confiscation: GSTAT Lucknow

The GST Appellate Tribunal, Lucknow Bench, has held that a delay in recording genuine business transactions in the books of accounts does not, by itself, justify confiscation of stock. The tribunal observed, “There is a vast legal distinction between a delayed entry of a genuine transaction and an unaccounted transaction designed for clandestine removal. Delayed bookkeeping backed by regular commercial invoices cannot be branded as a statutory offense under Section 130.”A bench of Judicial...

Gujarat High Court Says Delayed Appellate Order Upload Can't Bar GST Refund, Allows ₹5.41 Lakh Claim

The Gujarat High Court on 23 October allowed Panila Chem Limited's petition and treated the date of uploading Form GST APL-04 as the relevant date for considering its refund claim, given the peculiar facts of the case A Division Bench comprising Justices A.S. Supehia and Vaibhavi D. Nanavati held that a delayed upload of an appellate order's summary on the GST portal cannot defeat a refund directed by the appellate authority in exceptional circumstances. It observed: “In these peculiar...

Rejection of Building Plans Not Force Majeure For Delayed Possession Interest: Bombay High Court

The Bombay High Court on 23 October held that rejection of building plans by a planning authority does not constitute a force majeure event absolving a real estate promoter of liability to pay interest for delayed possession. Further, that interest for delayed possession can be awarded through summary judgment without a full trial or oral evidence, unlike compensation, which may require evidentiary adjudication. Justice Sandeep V. Marne partly allowed an application filed by DNM Trustee...

Bombay High Court Stays Malad Gymkhana's Restaurant Termination Notice, Bars Third-Party Rights

On Monday, 26 October, the Bombay High Court partly allowed Achieve Hospitality's petition against Malad Gymkhana Limited, staying the termination notice concerning its existing restaurant and restraining the Gymkhana from creating third-party rights in a proposed new restaurant and two banquet halls pending arbitration. A Bench of Justice Amit Borkar held that a party cannot bypass a contractually agreed cure period when terminating an agreement and must preserve the existing business...

CMRL-Exalogic Case: Kerala High Court Stays Investigation Against Pinarayi Vijayan, Kin For Four Weeks

The Kerala High Court on Monday stayed the operation of a Single Judge's order directing the registration of an FIR against former Chief Minister Pinarayi Vijayan, his daughter Veena Vijayan, and others in the CMRL-Exalogic case. The Court admitted all four appeals challenging the Single Judge's order and directed that further investigation into the FIR be kept in abeyance for four weeks.A coram of Justices K Natarajan and Johnson John posted the appeals for the final hearing on November...

Liquidated Damages Need No Proof Of Actual Loss If It Is Difficult To Quantify: Bombay High Court

The Bombay High Court on 23 October held that proof of actual loss is not necessary for awarding liquidated damages where the loss is difficult to quantify and the amount stipulated in the contract represents a genuine pre-estimate of damages agreed upon by the parties. Justice Aarti Sathe dismissed a petition filed by Kumar Urban Development Private Limited under Section 34 of the Arbitration and Conciliation Act, 1996, and upheld an arbitral award directing it to pay Rs. 2.675 crore to The...

Delhi High Court Restrains Plywood Sellers From Using Goldmedal Mark To Exploit Brand Goodwill

The Delhi High Court on 15 October passed an interim order restraining Jimmy Thoppilan and others from manufacturing, selling or advertising plywood, block boards, PVC boards and related goods under the mark “Goldmedal Ply And Boards” or any deceptively similar mark, in a trademark infringement suit filed by Goldmedal Electricals Pvt. Ltd. A Single-Judge Bench comprising Justice Tejas Karia observed: “The Defendants' sale of the Impugned Goods under the Impugned Marks is prima facie dishonest...