Customs Can't Levy Interest For Period Before Liability Was Determined In Confiscation Proceedings: Delhi High Court

The Delhi High Court has held that Customs authorities cannot calculate interest for a period during which the liability sought to be subjected to interest had itself not been determined.The Division Bench of Justices Anil Kshetarpal and Shail Jain made the observation while partly allowing a petition filed by Vishal Oil and Lubricants Co., challenging the interest reflected in the Customs EDI System in respect of a Bill of Entry filed in 2015.The Court directed the Customs authorities to...

Delhi High Court Restrains Pune Seller From Using "Max Volvo", "Max Volwo" Marks In Volvo's Trademark Suit

The Delhi High Court has restrained a Pune-based lubricant seller from manufacturing or selling engine oil, gear oil and other lubricants under the marks "Max Volvo" and "Max Volwo."The court held that these infringe the trademark rights of Swedish auto company Volvo. Justice Purushaindra Kumar Kaurav passed the ad interim injunction on September 24 in a suit filed by Aktiebolaget Volvo and two other group companies, which together own and use the "VOLVO" trademark globally and in India,...

GST Audit Proceedings Distinct From Section 74 Adjudication; Delhi High Court Declines To Quash SCN

The Delhi High Court has held that proceedings arising from a GST audit are distinct from the subsequent adjudicatory proceedings initiated under Section 74 of the Central Goods and Services Tax (CGST) Act, 2017.The Division Bench of Justices Anil Kshetarpal and Bharat Parashar declined to interfere with a show cause notice issued to a pharmaceutical distributor under Section 74, observing that the taxpayer could raise all its objections before the competent adjudicating authority.The Court was...

Central, State GST Officers Can Exercise Cross-Empowerment Powers Without Separate Notification: Madras High Court

The Madras High Court has ruled that Central and State GST officers can exercise cross-empowerment under Section 6 of the Central Goods and Services Tax Act even without a separate government notification. The notification is required only when the government wants to impose conditions on the exercise of those powers, the court observed.A Division Bench of Justice Anita Sumanth and Justice S. Raveekumar was dealing with a batch of 22 writ appeals. Sixteen were filed by State GST authorities and...

GST Act | Personal Penalty Can Apply To Non-Taxable Persons For Transactions From January 1, 2021: Delhi High Court

The Delhi High Court has held that the expression “any person” under Section 122(1A) of the Central Goods and Services Tax (CGST) Act, 2017 is not confined to a “taxable person” and can include persons who are not registered or liable to be registered under the GST regime.At the same time, the Court ruled that Section 122(1A), which provides for personal penalties in specified fraudulent GST transactions, operates prospectively and can be invoked only in respect of acts or transactions committed...

Communication On Company Letterhead Not Enough To Establish Consent To Arbitrate: Bombay High Court

Today, the Bombay High Court held that use of a company's letterhead in project-related communications does not by itself make the company a party to another company's contract or establish its consent to the arbitration clause. Justice Amit Borkar made the observation while referring the dispute between New Consolidated Construction Company Limited (NCCCL) and Limitless Contracting Private Limited concerning construction works at the “One Park Avenue” project in Kolshet, Thane, to arbitration,...

Karnataka High Court Refuses To Quash NI Case Over Cheque After Vijaya Bank Merger With Bank of Baroda

The Karnataka High Court on 17 September refused to quash proceedings against Bhadramma under Section 138 of the Negotiable Instruments Act, holding that the merger of Vijaya Bank with Bank of Baroda did not invalidate the cheque in question. Justice Suraj Govindaraj held that a cheque drawn on a bank that has merged with another bank cannot be treated as invalid merely because of the merger. The Bench observed: “….. a cheque which had been issued on a bank which has merged with another bank...

Delhi High Court Appoints Arbitrator, Local Commissioner In Amazon-Goodluck ₹182.50 Cr. Lease Dispute

The Delhi High Court on 28 September appointed a Local Commissioner to inspect and prepare an inventory of Amazon Seller Services Private Limited's assets lying at premises leased from Goodluck Buildtech Private Limited. Justice Om Prakash Shukla also appointed former Supreme Court judge Justice S. Ravindra Bhat as sole arbitrator to adjudicate the lease dispute between the two parties, involving an indemnity claim of approximately Rs. 182.50 crore and fixtures and fit-outs stated to be worth...

'Agreement For Assignment' Label Cannot Bar Stamp Duty Refund For Failed Deal: Bombay High Court

On Tuesday, 29 September, the Bombay High Court held that refund of stamp duty cannot be denied merely because a failed property transaction was documented as an “Agreement for Assignment” rather than an “Agreement to Sale”. Justice Amit Borkar directed the Maharashtra authorities to refund Rs. 29.75 lakh paid by Solanki Tea Company Private Limited, holding that the relief available under the Maharashtra Stamp Act depends on whether the transaction intended through the instrument had failed,...

Karnataka High Court Says Pregnancy Justifies Absence From GST Proceedings, Remands Ex-Parte Order

The Karnataka High Court on 18 September held that an ex-parte GST adjudication order can be set aside where a taxpayer's non-appearance is sufficiently justified, including on account of pregnancy and related medical complications. Justice Vijaykumar A. Patil of the Kalaburagi Bench allowed a writ petition filed by Soumya, proprietrix of Ganga Medical Stores, against the Deputy Commissioner of Commercial Taxes (Audit), Bidar and the Commissioner of Central Tax and Central Excise. The Bench...

Homebuyers Who Withdraw From Delayed Project Cannot Be Made To Wait For Refund Until Occupation Certificate: Bombay HC

The Bombay High Court has recently held that homebuyers who withdraw from a delayed housing project cannot be made to wait for a refund until the developer obtains an Occupation Certificate (OC).Justice Sandeep V. Marne held that the right of such homebuyers to receive their money back with interest is “absolute and unqualified”.“Thus, on plain reading of Section 18 of RERA, in my view, the right to seek return of amount with interest is absolute and unqualified. The right cannot be diluted by...

Arbitral Tribunal Can't Reject Interim Relief Merely For Overlap With Final Relief: Delhi High Court

On 28 September, the Delhi High Court held that an arbitral tribunal cannot reject interim relief under Section 17 of the Arbitration and Conciliation Act, 1996 merely because the relief sought overlaps with or is co-extensive with the final relief claimed in the arbitration. Justice Tushar Rao Gedela allowed an appeal filed by Wello Retail Pvt. Ltd. against an order passed by the arbitrator rejecting its application under Section 17 of the Act. The Bench observed: “At times, and having due...