Bombay High Court Sets Aside GST Order Passed Before Scheduled Date Of Hearing

The Bombay High Court has set aside a GST adjudication order passed even before the scheduled date of hearing, holding that it was vitiated by a breach of natural justice. A bench of Justices G S Kulkarni and Aarti Sathe held that the order was passed before the scheduled hearing date fixed in the show cause notice. “The impugned order, however, was passed on 30 March 2022 in regard to which, admittedly, no hearing was granted to the petitioner as also no opportunity to file reply to the said...

Service Of Notice On One Partner Deemed Service On All Under Presidency Towns Insolvency Act: Bombay HC

The Bombay High Court has held that service of an insolvency notice on a firm or any one of its partners amounts to valid service on all partners under the Presidency Towns Insolvency Act, 1909. The court rejected the argument that limitation should be counted from the last date of service on each partner. A single-judge bench of Justice Jitendra Jain was hearing an insolvency petition where the judgment debtors challenged its maintainability under Section 12(1)(c) of the Presidency Towns...

State GST Authorities Cannot Detain Or Confiscate Goods Merely In Transit: Andhra Pradesh High Court

The Andhra Pradesh High Court held on 1 April that State GST authorities cannot invoke detention or confiscation powers for goods merely passing through the State in the course of inter-State trade, including on grounds such as valuation discrepancies or mismatch in quantity. A Division Bench of Justices R. Raghunandan Rao and T.C.D. Sekhar held that such action exceeds jurisdiction in cases involving inter-State movement under the IGST framework. The Court stated: "Amounts rightfully due to...

Retaining Tax Paid Twice Violates Article 265, Section 54 CGST Limitation Not A Bar: Orissa High Court

The Orissa High Court at Cuttack held that tax authorities cannot retain amounts deposited twice under a mistaken belief, as such retention would violate Article 265 of the Constitution. A Division Bench comprising Chief Justice Harish Tandon and Justice Murahari Sri Raman set aside an order rejecting the refund claim filed by the petitioner, Rajendra Narayan Mohanty, and allowed him to seek a fresh refund. It held: “There is no escape than to say that the Revenue is unjustified to withhold or...

Bombay HC Quashes Rs. 1.26 Crore Service Tax Demand For Failure To Comply With Pre-SCN Process

The Bombay High Court on 12 March, quashed a service tax show cause notice, holding that failure to conduct mandatory pre-show cause notice (pre-SCN) consultation, as required under CBEC circulars, vitiates the entire proceedings. A Bench of Justices G. S. Kulkarni and Aarti Sathe held that pre-SCN consultation, mandated by circulars issued under Section 37B of the Central Excise Act, is a binding requirement and cannot be bypassed merely because summons were issued to the taxpayer. The Bench...

Delhi High Court Injuncts 'HALESAGA' Mark, Finds It Similar To Saga Lifesciences' 'SAGA'

The Delhi High Court has granted an interim injunction in favour of Saga Lifesciences Limited, restraining Anaadi Global from using the mark 'HALESAGA / ' or any other mark deceptively similar to 'SAGA' for pharmaceutical and medicinal preparations. The court held that the rival mark is prima facie deceptively similar and likely to cause confusion. Justice Tejas Karia held that the defendants' mark incorporates the plaintiff's mark in its entirety and cannot be distinguished merely by...

Failure To Reply To SCN Or Absence From Hearing Not Ground To Cancel GST Registration: Allahabad High Court

The Allahabad High Court on 17 March held that GST registration cannot be cancelled merely because a taxpayer fails to reply to a show cause notice or appear on the date fixed for hearing, and that authorities must record reasons before taking such a drastic step. A Bench of Justice Saumitra Dayal Singh and Justice Vivek Saran set aside the cancellation of GST registration of Jubair Enterprises and granted the petitioner liberty to file a reply to the show cause notice. The judges held: “A...

After Cancellation Of GST Registration, Show Cause Notice Should Be Served Physically: Allahabad High Court

The Allahabad High Court has recently held that adjudication notice ought to be served through physical mode after cancellation of GST registration, as the taxpayer cannot access the portal thereafter. A bench of Justice Saumitra Dayal Singh and Justice Vivek Saran held: “Once the registration is cancelled and the registered persons thus disabled from working on the Common Portal and in any case, are relieved of obligation to check the Common Portal thereafter, it is wholly natural and...

Telangana High Court Disposes Plea After State Assures Missing GST Documents Won't Be Relied Upon in Adjudication

The Telangana High Court has disposed of a writ petition filed by Bengal Cold Rollers Pvt. Ltd., recording the State's statement that seized documents whose originals are missing will not be relied upon in adjudication, while permitting proceedings to continue on the basis of available material. A Bench of Chief Justice Apresh Kumar Singh and Justice G.M. Mohiuddin observed that once the State clarified that such missing documents would not be relied upon, the grievance of the petitioner stood...

Bombay High Court Stays Retrospective GST Demand On Insurance To SEZ Units Allegedly For Employee Benefits

The Bombay High Court has stayed GST demands on insurers over policies issued to SEZ units, which the department claimed were for employees, prima facie finding the retrospective levy may be without jurisdiction prior to October 1, 2023.A Bench of Justice G. S. Kulkarni and Justice Farhan P. Dubash held, "Prima-facie, we find much substance in the contention urged on behalf of the petitioners that the designated officer would not have jurisdiction to retrospectively levy tax on the petitioners...

Gauhati High Court Asks Authorities To Consider GST Registration Restoration If Taxpayer Clears Dues And Files Returns

The Gauhati High Court has directed authorities to consider restoration of GST registration where a taxpayer is willing to furnish pending returns and clear dues, observing that cancellation entails “serious civil consequences.” Justice Anjan Moni Kalita held that if the taxpayer complies with Rule 22(4) of the CGST Rules, the proper officer shall consider the case and pass appropriate orders. The case arose from a writ petition filed by Apurba Enterprise challenging cancellation of its GST...

Delhi High Court Sets Aside Rs 13.31 Crore Arbitral Award In Favour Of Jindal India Against Oriental Insurance

A Rs. 13.31 crore arbitral award in favour of Jindal India Limited has been set aside by the Delhi High Court in a dispute over insurance claims arising from a factory fire, with the court finding that the award went beyond the terms of the contract. Justice Avneesh Jhingan underlined that an arbitrator's authority flows from the agreement between the parties. “The arbitrator cannot go beyond the terms of the contract,” the court said, adding that the methodology adopted to assess loss must...