Customs Cannot Indefinitely Detain Goods Through Panchnama To Reset Limitation: Gujarat High Court

The Gujarat High Court on 25 August held that Customs authorities cannot use a Panchnama to indefinitely restrain goods and later issue a formal seizure order to bypass the time limits under Section 110 of the Customs Act, 1962, ruling that the limitation period starts from the date of detention if the mandatory order under the provision was not passed. A Division Bench comprising Justices A.S. Supehia and Vaibhavi D. Nanavati held that the vehicle belonging to petitioner Pranavbhai Ambalal...

Kerala High Court Sets Aside Income Tax Assessment Treating PG Student's Stipend As Salary

The Kerala High Court on 17 August set aside an income tax assessment order treating the stipend received by a postgraduate medical student as salary, holding that the Assessing Officer failed to consider his claim that stipend paid to a student is exempt from income tax. A Division Bench comprising Justices Devan Ramachandran and Basant Balaji allowed the appeal filed by Nahas Kakkattummal and set aside both the Single Judge's judgment and the assessment order, directing the Assessing Officer...

Madras High Court Upholds GST Authorities' Power To Block Electronic Credit Ledger For Tax Recovery

The Madras High Court on 25 August held that Goods and Services Tax (GST) authorities can block an electronic credit ledger, including through a negative blocking entry, to recover tax dues, even where recovery proceedings arising from the assessment order have been stayed. Justice Senthilkumar Ramamoorthy passed the ruling while disposing of a writ petition filed by Zigma Machinery & Equipment Solutions against the Assistant Commissioner, Coimbatore-I Division. The Bench held: “In...

Future Commercial Use Cannot Determine Stamp Duty Value: Karnataka High Court

Recently, the Karnataka High Court quashed orders demanding differential stamp duty on a 37-acre land parcel in Hassan district, holding that authorities cannot determine the value of land merely on the basis of an alleged intention to use it for resort or commercial purposes, unless such intended use is established through relevant documents.Justice M.G.S. Kamal allowed a writ petition filed by Disthi Vishal Pvt. Ltd. and another, challenging orders passed by the District Registrar and the...

Delhi High Court Sets Aside ₹533.79 Crore Sales Tax Demands Against Railways Over Rolling Stock Transactions

The Delhi High Court has set aside assessment orders and revisional orders involving aggregate sales tax demands of ₹533,79,21,617. The demands concerned rolling stock financed through the Indian Railway Finance Corporation (IRFC). The court held that the authorities had wrongly treated the entire rolling stock financed through IRFC as having first belonged to the Railways. They had then treated it as having been sold by the Railways to IRFC.The division bench of Justices Anil Khetarpal and...

Delhi High Court Declines Writ Challenge To Gold Confiscation Over Oral Show Cause Notice Acknowledgment

The Delhi High Court has observed that a passenger's waiver of a written show cause notice under the Customs Act cannot be considered in isolation to defeat confiscation, where the record also contains the passenger's own acknowledgment that an oral show cause notice had been received.The Division Bench of Justices Anil Khetarpal and Shail Jain made the observation while dismissing a writ petition challenging an order directing absolute confiscation of two gold bars weighing 233 grams and valued...

No Automatic Release Of Seized Goods Where Customs Claims Oral Show Cause Notice: Delhi High Court

The Delhi High Court has held that unconditional release of seized goods under Section 110(2) of the Customs Act, 1962, cannot be ordered merely because no written show cause notice was issued when the Customs Department specifically asserts that an oral show cause notice under Section 124(a) was issued.The Division Bench of Justices Anil Khetarpal and Shail Jain was dealing with a petition seeking release of a 100-gram gold bar seized from the petitioner at Delhi airport.Petitioner argued that...

Post-2015 Challenge Does Not Apply Amended Arbitrator Eligibility Rules To Earlier Arbitration: Delhi High Court

The Delhi High Court has recently ruled that merely filing a challenge to an arbitral award after the 2015 amendments to the arbitration law does not, by itself, make the amended rules on arbitrator eligibility applicable to an arbitration that commenced earlier. Justice Jasmeet Singh observed that where arbitration proceedings had commenced before October 23, 2015, the validity of the arbitrator's appointment must be examined under the law applicable to those proceedings. The subsequent...

Delhi High Court Quashes Customs Demand Against JAL After Unfiled Insolvency Claim Stood Extinguished

The Delhi High Court has held that a pre-insolvency customs claim against Jaiprakash Associates Limited stood extinguished after the Customs Department failed to submit it during the company's insolvency process and the resolution plan was approved.The Division Bench of Justices Anil Kshetarpal and Shail Jain observed, “The failure of the Respondents (Customs) to submit their claim cannot…operate to the prejudice of the Corporate Debtor or the Successful Resolution Applicant. The IBC does not...

India-ASEAN Trade Agreement's Dispute Resolution Mechanism Can't Bar Customs Action: Delhi High Court

The Delhi High Court has held that the dispute resolution mechanism under the India-ASEAN trade agreement cannot bar Customs authorities from initiating proceedings under the Customs Act 1962, observing that the relevant treaty provision has not been incorporated into Indian domestic law.The Division Bench of Justices Anil Khetarpal and Shail Jain made the observation while dismissing a petition filed by M.M. Ceramics & Ferro Alloys challenging Customs proceedings relating to its claim of...

Lack Of Written Customs SCN Doesn't Warrant Release Of Detained Goods Where Oral Proceedings Were Held: Delhi HC

The Delhi High Court has held that the absence of a separate written show cause notice does not, by itself, justify the release of goods detained by Customs. This is particularly so where the Department asserts that oral proceedings were undertaken at the time of interception and remains willing to afford the passenger a personal hearingThe Division Bench of Justices Anil Khetarpal and Shail Jain made the observation while dismissing a petition seeking release of two gold bars weighing 166...

Mere Natural Justice Violation Claim Cannot Bypass Customs Appeal Remedy: Delhi High Court

The Delhi High Court has recently held that a mere assertion of violation of principles of natural justice cannot, by itself, justify bypassing the statutory appellate remedy under the Customs Act, 1962.The Division Bench of Justices Anil Khetarpal and Shail Jain made the observation while declining to entertain a writ petition challenging the absolute confiscation of a 117-gram gold bar by Customs authorities.Petitioner contended that no valid Show Cause Notice was issued before confiscation...