Customs Appeals Cannot Face Maintainability Challenge At Pre-Admission Stage: Calcutta High Court

The Calcutta High Court on 10 July held that parties in customs appeals cannot challenge the maintainability of such appeals at the pre-admission stage, and must raise objections relating to jurisdiction or maintainability only after the Court determines whether the appeal involves a substantial question of law. A Division Bench of Justices Rajarshi Bharadwaj and Uday Kumar rejected the respondents' request for a preliminary hearing on maintainability while hearing a batch of appeals filed by...

Karnataka High Court Rejects Deccan Mining's Refund Claim, Holds Pay Slips Qualify As Consignment Notes

The Karnataka High Court on 8 July held that transportation services provided by individual truck owners can be treated as Goods Transport Agency (GTA) services if the documents issued for transportation contain the essential features of a consignment note. A Division Bench of Justices S.G. Pandit and Rajesh Rai K dismissed an appeal filed by Deccan Mining Syndicate (P) Ltd., holding that the "pay slips" issued by the transporters fulfilled the requirement of consignment notes under Section...

Stamp Duty Amendments On Amalgamation Cannot Apply Retrospectively: Kerala High Court

The Kerala High Court on 3 July held that amendments to the Kerala Stamp Act, 1959, introducing stamp duty on amalgamations and reconstructions, cannot be applied retrospectively to transactions completed before the amendments came into force. Justice Harisankar V Menon allowed a petition filed by Zuri Hotels and Resorts Private Limited and quashed the stamp duty demand of Rs. 2.01 crore raised by the registration authorities along with the consequential revenue recovery proceedings. He held: ...

Karnataka HC Holds Revised Return Mandatory For Lower VAT Claim, Rejects India Heritage Foundation's Plea

The Karnataka High Court on 8 July held that a taxpayer cannot seek a lower VAT rate during reassessment proceedings without first filing a revised return under the Karnataka Value Added Tax (KVAT) Act, and dismissed India Heritage Foundation, Bengaluru's revision petition seeking to reduce the VAT rate on iron and steel used in a works contract from 12.5% to 4%. A Division Bench of Justices S.G. Pandit and Rajesh Rai K relied on its earlier decision in Nandi Constructions v. State of Karnataka...

Telangana High Court Upholds Sales Tax On Blended Coffee Sold By Trademark Holder Beyond First Sale

The Telangana High Court has upheld the levy of sales tax on blended coffee sold by a trademark holder. It held that a dealer marketing goods under its own brand name at a point other than the first sale is liable to tax under the Andhra Pradesh General Sales Tax Act. A division bench of Justice P. Sam Koshy and Justice Narsing Rao Nandikonda dismissed the tax revision cases filed by Amalgamated Holdings Limited. Relying on an earlier ruling, it found no reason to interfere with the concurrent...

Conflicting Dispute Resolution Clauses Should Be Interpreted in Favour of Arbitration: Bombay High Court

The Bombay High Court has recently held that where a commercial contract contains conflicting dispute resolution clauses, courts should lean in favour of arbitration if the agreement, read as a whole, reflects the parties' intention to resolve disputes through arbitration. Justice M. W. Chandwani of the Nagpur bench delivered the ruling while deciding an application filed by Sri Buddha–SVEC JV against Western Coalfields Ltd. The court referred the parties to conciliation before Advocate...

Arbitral Tribunal Can Decide Claim Between Co-Respondents Under Tripartite Agreement: Kerala High Court

The Kerala High Court has held that an arbitral tribunal can decide a claim raised by one respondent against another under a tripartite agreement where the parties have agreed to refer all disputes arising out of the contract to arbitration. The court ruled that although the claim had been labelled a "counterclaim", it was, in substance, an independent contractual claim between parties to the same agreement. It also noted that Section 19 of the Arbitration and Conciliation Act, 1996 makes it...

Delhi High Court Quashes ₹21 Crore Block Assessment Over Failure To Issue Mandatory Scrutiny Notice

The Delhi High Court has reiterated that issuance of a notice under Section 143(2) of the Income Tax Act, 1961, is mandatory for completing block assessments under Section 158BC of the Act.A Division Bench of Justices Dinesh Mehta and Rajneesh Kumar Gupta relied on Assistant Commissioner of Income Tax vs. Hotel Blue Moon (2010), where the Supreme Court held that the omission to issue such notice is not a curable procedural irregularity.The High Court thus quashed a ₹21-crore tax addition made...

IT Reassessment Notice Received On April 1, 2021, Must Follow New Reassessment Regime: Bombay High Court

The Bombay High Court has held that an income tax reassessment notice dated and digitally signed on March 31, 2021, cannot be treated as having been issued on that date if it was actually dispatched through the Income Tax Business Application (ITBA) portal and reached the assessee only on April 1, 2021. The court ruled that the notice would be deemed to have been issued on April 1, 2021, and the reassessment proceedings must continue under the framework introduced by the Finance Act, 2021. A...

Madras High Court Quashes CBI Case After Bank Accepted IBC Resolution Plan, Issued No Due Certificate

The Madras High Court has held that Union Bank of India ought not to have initiated criminal proceedings against Star Agro Marine Exports Private Limited and its directors after accepting the corporate insolvency resolution plan, accepting the settlement amount and issuing a No Due Certificate The court held that the prosecution initiated thereafter amounted to an abuse of the process of law. Justice G.K. Ilanthiraiyan passed the order while quashing criminal proceedings initiated by the...

Karnataka High Court Remands Quikr's ₹1.77 Crore Stamp Duty Dispute Over NCLT-Approved Amalgamation

The Karnataka High Court has set aside an order directing Quikr India Private Limited, which operates the online classifieds platform Quikr, to pay an additional ₹1.77 crore as stamp duty on a National Company Law Tribunal (NCLT)-approved scheme of amalgamation. The matter has been remitted to the District Registrar for fresh consideration. Justice M.G.S. Kamal observed that, for the purpose of levying stamp duty under the Karnataka Stamp Act, 1957, the NCLT's order approving the amalgamation...

No GST Payable On Machinery Returned For Testing Without Fresh Consideration: Karnataka High Court

The Karnataka High Court held on 25 June that a company does not incur GST liability when it returns machinery to a seller for testing without any fresh consideration, as the movement does not amount to a taxable supply. A Division Bench of Justices S.G. Pandit and Rajesh Rai K dismissed the State's appeal and upheld the Single Judge's order reducing the penalty imposed on AAM India Manufacturing Corporation Pvt. Ltd. to Rs.25,000, while directing the Department to refund the remaining amount...