CESTAT Must Issue Fresh Notice If Bench Does Not Sit On Fixed Hearing Date: Allahabad High Court

The Allahabad High Court has recently held that where no bench of the Customs, Excise and Service Tax Appellate Tribunal sits on the date fixed for hearing so that no judicial order comes to be passed fixing the next date, the Tribunal must issue a fresh notice to the party intimating the next date and place of hearing. It held that an appeal decided ex parte on such an unnotified date is decided without affording the appellant due opportunity of hearing. Rule 18(1) of the Customs,...

Karnataka High Court Quashes GST Recovery Against Company For Deceased Proprietor's Business' Dues

The Karnataka High Court has quashed GST recovery notices issued against a private limited company for dues of a proprietary concern run by a deceased proprietor. It observed that the company was a distinct and separate entity from the proprietary concern and could not be proceeded against for its GST dues. Justice B. M. Shyam Prasad was hearing a writ petition filed by BKR Services Private Limited along with the son and wife of late Rudraswamy B K, who died on May 25, 2023. The dispute arose...

Gujarat High Court Rejects Bus Owner's Plea Over ₹53 Lakh Vehicle Tax Demand For Lack Of Non-Use Certificate

The Gujarat High Court has rejected a bus owner's plea against a ₹53.20 lakh vehicle tax demand, holding that the statutory presumption of use in Gujarat applied because he had not obtained a certificate declaring the bus as unused.A Division Bench comprising Justice A.S. Supehia and Justice Vaibhavi D. Nanavati held that Section 3(2) of the Gujarat Motor Vehicles Tax Act, 1958, creates a deeming fiction unless the prescribed authority certifies that a vehicle was not used or kept for use in the...

Telangana High Court Upholds Law Levying Non-Agricultural Land Tax At Different Rates Based On Use

The Telangana High Court has upheld a law that levies non-agricultural land assessment at different rates based on the use of the land, rejecting a constitutional challenge that the levy could become arbitrary if industrial rates were imposed on land not actually used for industrial purposes.The bench comprised Chief Justice Aparesh Kumar Singh, Justice P. Sam Koshy, Justice K. Lakshman, Justice B. Vijaysen Reddy and Justice N. Tukaramji.The five-Judge bench held that Sections 3 and 8 and the...

Madras High Court Temporarily Restrains Universal Spirits From Using 'Marco Polo' For Liquor

The Madras High Court has restrained Universal Spirits Pvt Ltd from manufacturing, marketing or selling liquor under the marks “Classic Marco Polo Deluxe Brandy” and “Marco Polo Deluxe XXX Rum”, pending disposal of a commercial suit filed by Empee Distilleries Limited.Justice K. Kumaresh Babu also directed Universal Spirits to submit accounts relating to the manufacture and sale of the products. It must also hand over the unsold products to Empee Distilleries within four weeks of receiving a...

Chhattisgarh High Court Rejects Plea Against ₹19.75 Lakh Property Tax Demand On Loyola School

The Chhattisgarh High Court has dismissed a writ petition filed by Madhya Pradesh Jesuits challenging property tax demand notices of around Rs. 19.75 lakh raised against Loyola Higher Secondary School, Bilaspur.Justice Rakesh Mohan Pandey held that the school could not claim property tax exemption based on a Section 12A registration certificate, which is required for eligible educational institutions to claim the exemption. The certificate, however, was issued in favour of “The President, Madhya...

Bank Cannot Mark Lien On Cooperative Society Account For TDS On Cash Withdrawals: Karnataka High Court

The Karnataka High Court has recently held that Bank of Baroda had no statutory authority to create a lien over a cooperative society's current account for collection of TDS on cash withdrawals. It held that the responsibility to deduct the tax under Section 194N of the Income Tax Act rested on the bank.Justice M.G.S. Kamal observed that Section 194N placed the responsibility for deducting the prescribed tax on the banking company making the payment. “Perusal of the aforesaid provision indicate...

CESTAT Must Decide All Issues As Final Fact-Finding Authority: Bombay High Court

The Bombay High Court has recently observed that the Customs, Excise and Service Tax Appellate Tribunal (CESTAT), as the final fact-finding authority under the statute, must adjudicate all issues arising from the record. Failure to consider a contention and render a finding on it amounts to failure to exercise jurisdiction, the court observed.“The CESTAT, being the final fact-finding authority under the statute, was duty bound to adjudicate on all issues arising from the record. Its failure to...

Bombay High Court Refuses To Restore Terminated LPG Transport Contract Pending Arbitration

The Bombay High Court has refused to order Bharat Petroleum Corporation Limited (BPCL) and Indian Oil Corporation Limited (IOCL) to resume LPG load allotments to tank-truck operators whose transport arrangements were terminated. The court held that such a direction would effectively revive the terminated contractual relationship while the dispute is pending arbitration.Justice Amit Borkar observed, “if prayer clause (b) is granted, result would be that contractual relationship which has been...

Madras High Court Restrains Matrimony.com From Using 'Jodii' Mark For Matchmaking App

The Madras High Court has restrained Matrimony.com Limited from using the mark 'Jodii' for its matchmaking app. It set aside a 2022 order of a Single Judge that had dismissed FreeElective Network's suit alleging infringement and passing off of its registered 'Jodi365' trademark.A Division Bench comprising Justice P. Velmurugan and Justice K. Govindarajan Thilakavadi ruled that 'Jodii' was deceptively similar to 'Jodi365'. It held that the similarity could confuse customers into believing that...

MSME Council Cannot Hear Buyer's Claims Over Defective Supply By MSME Supplier: Madras High Court

The Madras High Court has recently ruled that the Micro and Small Enterprises Facilitation Council cannot deal with a buyer's claim against an MSME supplier for defective or failed supply. Such claims fall outside the recovery mechanism under the Micro, Small and Medium Enterprises Development Act, 2006.Justice K. Kumaresh Babu observed, “The MSMED Act restricts itself to the scope of recovery of unpaid amount that is liable to be paid by the buyer under Section 15 together with interest under...

Bombay High Court Rules In Favour Of IL&FS In ₹848.80 Crore Recovery Suits

The Bombay High Court has decreed four commercial summary suits in favour of IL&FS Financial Services Ltd., directing the borrowers, guarantors and other parties named in the respective suits to jointly and severally pay about ₹848.80 crore in outstanding dues. The amounts range from ₹53.94 crore to ₹321.46 crore across the four matters, with 9% interest from the date of filing until realisation.Justice Gauri Godse held that IL&FS had complied with directions to impound the loan,...