Karnataka High Court Quashes Rs 85.51 Crore IGST Demand On Salaries Paid To Foreign Nationals By Huawei India

The Karnataka High Court has recently quashed a show cause notice issued to Huawei Technologies India Private Limited demanding Rs. 85.51 crore in Integrated Goods and Services Tax (IGST), along with interest and penalty, on salaries paid to foreign national employees. Justice S R Krishna Kumar held that this was not a case of secondment at all, but one where Huawei India had a direct employer-employee relationship with the foreign nationals working for it. The Court made it clear that once...

Calcutta High Court Sets Aside Rejection Of UPL's Herbicide Patent For Denying Mandatory Hearing

The Calcutta High Court has recently set aside an order of the Controller of Patents rejecting UPL Limited's patent application for a herbicidal combination, holding that the authority committed a “serious procedural infirmity” by denying the company a mandatory hearing under Section 14 of the Patents Act and improperly issuing a composite order in examination and pre-grant opposition proceedings. Allowing the appeal, Justice Ravi Krishan Kapur ruled that examination proceedings under Sections...

Bombay High Court Issues Bailable Warrants Against 4 Effingut Directors In Copyright Contempt Case By PPL

The Bombay High Court recently issued bailable warrants against four directors of the Pune-based Effingut Breweries, a popular largest craft beer brand and owners of pubs and lounges operating in major cities like Pune, Delhi, Mumbai, Gurugram etc for failing to appear before the court as ordered in a previous hearing. Single-judge Justice Sharmila Deshmukh was hearing a contempt petition against Effingut Breweries and its directors - Vishal Makar, Manish Tandon, Upesh Gulati and Monika Gulati...

Karnataka High Court Invokes Writ Jurisdiction In RERA Matter To Enable Consideration Of Developer's Objections

The Karnataka High Court has recently held that the existence of an appellate remedy does not prevent it from exercising writ jurisdiction in a real estate dispute where due opportunity has not been afforded to one of the parties. The court set aside a Karnataka Real Estate Regulatory Authority order directing Embassy One Developers Pvt Ltd to pay over Rs. 4.24 crore as delay interest without considering its objections. Justice B. M. Shyam Prasad said, “An alternative remedy need not always...

Delhi High Court Dismisses Revenue Appeals Against ITAT Order In Mahagun TDS Dispute Over NOIDA Lease Rent

The Delhi High Court has dismissed three appeals filed by the Income Tax Department challenging orders of the Income Tax Appellate Tribunal (ITAT) that had granted relief to Mahagun developers in a long-running dispute over deduction of tax at source (TDS) on lease rent payments made to the NOIDA Authority.A Division Bench of Justices Dinesh Mehta and Justice Vinod Kumar rejected the appeals after noting that the controversy was squarely covered by its earlier ruling in Rajesh Projects (India)...

CPC Summons Procedure Not Applicable to GST Inquiry; No 7-Day Notice Required: Bombay High Court

Interpreting Section 70 of the Central Goods and Services Tax Act, 2017, the Bombay High Court has held that the civil court summons procedure under the Code of Civil Procedure cannot be read into GST investigations and that tax authorities are not required to give seven days' prior notice before summoning a person for inquiry.A Division Bench of Justices Sandipkumar C. More and Y.G. Khobragade at the Aurangabad Bench dismissed the Criminal Writ Petition filed by Kanhaiya Nilambar Jha, who...

No Separate GST On Chemicals Supplied Under Mud Engineering Contracts: Andhra Pradesh High Court

The Andhra Pradesh High Court has recently held that GST cannot be levied separately on mud engineering services and the supply of drilling chemicals, ruling that such contracts constitute a composite supply under the Goods and Services Tax law. A Division Bench comprising Justice R Raghunandan Rao and Justice T.C.D. Sekhar allowed a writ petition filed by Halliburton Offshore Services Inc., setting aside orders passed by the Authority for Advance Ruling and the Appellate Authority for Advance...

Sales Directly Linked To Export Cannot Be Taxed Under Central Sales Tax: Andhra Pradesh High Reaffirms

The Andhra Pradesh High Court has recently reiterated that where export is the direct result of a sale and the two form an integrated transaction that cannot be dissociated, such a sale is protected under Article 286 of the Constitution and cannot be subjected to State taxation. Explaining the law, the Division Bench of Justice R. Raghunandan Rao and Justice T.C.D. Sekhar held that a sale is “in the course of export” under Section 5(1) of the Central Sales Tax Act, 1956, when the sale itself...

GST Show Cause Notices Can Be Issued On Monthly Returns Without Waiting For Annual Return: Madras High Court

The Madras High Court recently ruled that a show cause notice under Section 74A of the GST law can be validly issued for F.Y. 2024-25 on the basis of discrepancies noticed in monthly returns, without awaiting the filing of the annual return.Section 74A of the GST Act, applicable from FY 2024-25 onwards, governs the determination of tax not paid or short paid or input tax credit wrongly availed or utilised.Referring to Section 74A(1) to 74A(4) of the GST Act, the bench clarified that "the...

Gujarat High Court Sets Aside TDS Order For Failure To Apply 'Make Available' Test Under India–Singapore DTAA

The Gujarat High Court has recently set aside a tax deduction at source order against Solvay Specialities India, holding that the Income Tax Department failed to apply the mandatory “make available” test under the India–Singapore tax treaty. Under this test, tax authorities are required to first determine whether the foreign service provider actually passed on any technical knowledge, skill, or know-how in a way that allows the Indian company to use it independently in the future. Without...

Technical Member Mandatory: Madhya Pradesh High Court Sets Aside REAT Order Passed By Two-Member Bench

The Madhya Pradesh High Court has recently set aside an order of the Real Estate Appellate Tribunal after finding that it was passed by an improperly constituted Bench. The court held that the Tribunal decided the case without the participation of a Technical Member, a requirement mandated by law. Such an order, it said, cannot stand. “As per the provisions of Section 45 of the Real Estate (Regulation and Development) Act, 2016, the Appellate Tribunal must consist of the Chairman and two...

Calcutta High Court Sets Aside Order Treating WBIDC As Unsecured Creditor In Eastern Explosives Liquidation

The Calcutta High Court has recently set aside an order of a single judge of the court's original side, which upheld the official liquidator's decision treating the West Bengal Industrial Development Corporation Ltd. (WBIDC) as an unsecured creditor in the liquidation of Eastern Explosives and Chemicals Ltd.The Court held that once charge documents were submitted prior to adjudication of claims, the official liquidator was bound to consider WBIDC as a secured creditor.“A creditor, of a company...