Can Presumption That Seized Goods Are Smuggled Apply To 'Mastermind' Not In Physical Possession? Delhi HC To Examine

The Delhi High Court is set to examine whether the statutory presumption under Section 123 of the Customs Act can apply to a person alleged to be the “mastermind” or financier who is not in physical possession of the seized goods.The Division Bench of Justices Avneesh Jhingan and Shail Jain has framed the question while hearing appeals filed by the Principal Commissioner of Customs (Preventive) against CESTAT orders.Section 123 of the Customs Act provides for a statutory shift in the burden of...

2015 Amendment To Arbitration Act Cannot Invalidate Pre-Amendment Arbitrator Appointment: Delhi High Court

The Delhi High Court has held that the statutory ineligibility introduced for arbitrators by the 2015 amendment to the Arbitration and Conciliation Act, 1996, cannot be retrospectively applied to invalidate an appointment made before the amendment came into force.A Division Bench of Justices Anil Kshetrapal and Bharat Parashar upheld the appointment of a serving Delhi Metro Rail Corporation (DMRC) employee as sole arbitrator.The arbitration was invoked on June 3, 2014 and the arbitrator was...

Delhi High Court Allows Revival Of 'HMP' Trademark As Registry Fails To Prove Renewal Notice Was Sent

The Delhi High Court on 23 September allowed a petition filed by trademark owner Punam Chand Kedia seeking revival of his “HMP” mark after the Trade Marks Registry rejected his renewal application on the ground that the prescribed renewal period had expired. A Bench comprising Justice Vikas Mahajan observed: “In that view of the matter, in the absence of any reliable evidence in support of the stand taken by the respondent that O-3 notices were sent, it is difficult for this court to accept...

Delhi High Court Remits VAT Assessment, Directs Fresh Consideration Of Tax Paid On Subsequent Sales

The Delhi High Court has set aside a VAT assessment concerning alleged stock shortage at a jewellery store, directing the VAT Officer to undertake a fresh assessment after taking into consideration the effect of subsequent sales of the goods found short during a survey.The division bench of Justices Avneesh Jhingan and Shail Jain was hearing an appeal under Section 81 of the Delhi Value Added Tax Act, 2004, against an order passed by the Appellate Tribunal Value Added Tax.The appellant was...

Charitable Donations Not Taxable As 'Sponsorship' Without Reciprocal Obligation: Madras High Court

The Madurai Bench of the Madras High Court on 16 September held that charitable contributions cannot be treated as taxable sponsorship services where the recipient is not under an obligation to provide anything in return. A Division Bench of Justices G.R. Swaminathan and M.D. Sumathi set aside the entire service tax demand raised against Karur Vysya Bank Ltd. They held that the Revenue failed to prove most contributions were sponsorship services, while noting that even the two qualifying...

Bombay High Court Orders X Corp To Take Down Alleged Defamatory Video Against Serum Institute, Adar Poonawalla

The Bombay High Court on Tuesday directed X Corp (formerly Twitter) to take down a fresh video uploaded by YouTuber Yohan Tengra in a case brought by Serum Institute of India and its CEO Adar Poonawalla.The court found that the video repeated content it had already held objectionable and that Tengra had said he would not comply with its earlier orderJustice Gauri Godse, in an order pronounced on September 29, also issued show cause notices to Tengra, his channel Anarchy for Freedom India, Ambar...

Acquiring Property Interest Alone Does Not Bind Transferee To Arbitration Clause: Bombay High Court

The Bombay High Court on 7 September held that acquiring an interest in property covered by a Development Agreement, by itself, does not make a transferee a party to the arbitration agreement contained in the Development Agreement. Justice Amit Borakar added that a transferee can become bound by the arbitration clause only where material shows assignment, incorporation, acceptance or unequivocal adoption of the underlying agreement, and appointed a sole arbitrator for disputes between the...

Property Acquisition By State Not A Supply Of Goods Or Services: Karnataka High Court

The Karnataka High Court has held that compulsory acquisition of immovable property by the State in exercise of eminent domain does not amount to a supply of goods or services liable to Goods and Services Tax (GST). Justice R. Nataraj quashed the deduction of Rs. 12,28,906 towards GST from the compensation payable to four landowners whose house property was acquired for widening the Mysuru-Madikeri Highway. The Bench observed: “...An immovable property cannot at any stretch of imagination is...

Himachal Pradesh High Court Sets Aside Aditya Industries' GST Notice, Says Fraud Must Be Backed By Facts

On 29 September, the Himachal Pradesh High Court set aside a show-cause notice alleging wrongful availment of Input Tax Credit (ITC) issued to Aditya Industries under Section 74 of the Himachal Pradesh GST Act on the ground that registrations of certain suppliers had been cancelled as they were found to be non-existent, among other reasons. A Division Bench comprising Justices Ajay Mohan Goel and Yogesh Jaswal emphasised that a GST show-cause notice must set out the facts establishing how the...

Karnataka High Court Dismisses Revenue Appeal Against Microsoft India In CENVAT Refund Case

The Karnataka High Court has dismissed the Revenue's appeal against a tribunal order holding that Microsoft India (R&D) Pvt. Ltd. was entitled to a cash refund of accumulated CENVAT credit on services provided to its overseas entities. A Division Bench of Justice R. Devdas and Justice K. Manmadha Rao was hearing the appeal against the Customs, Excise and Service Tax Appellate Tribunal's (CESTAT) December 9, 2024 order. The tribunal had held that the services provided by Microsoft India to...

Arbitral Tribunal Cannot Permit PBG Appropriation Contrary To Contractual Terms: Delhi High Court

The Delhi High Court on 31 August held that an arbitral tribunal cannot permit appropriation of Performance Bank Guarantee (PBG) proceeds contrary to the contractual terms governing the parties. Justice Avneesh Jhingan was hearing a petition under Section 34 of the Arbitration and Conciliation Act, 1996 filed by ISGEC Heavy Engineering Limited challenging an arbitral award arising from its dispute with Prakash Industries Limited. The Bench observed: “The tribunal permitting appropriation of...

Delhi High Court Rules In Favour Of Medanta, Decrees Trademark Suit Against Seller Of 'Medanta Capsule'

The Delhi High Court on 24 September ruled in favour of Global Health Limited, which runs Medanta hospitals, in its trademark infringement suit against a seller marketing an ayurvedic weight management medicine as “Medanta Capsule”. Justice Purushaindra Kumar Kaurav allowed the hospital operator's application under Order VIII Rule 10 of the CPC after the sole contesting defendant neither filed a written statement nor opposed the relief sought. The Bench had restrained the seller in November...