Allahabad High Court Orders Release Of GST Taxpayer Over Arrest Papers Lacking CBIC-DIN

The Allahabad High Court has recently directed the release of a GST taxpayer after holding that his arrest and detention were illegal because the grounds of arrest did not bear a CBIC-DIN and the arrest memo failed to disclose the place of arrest. Petitioner Ashish Tyagi was arrested in connection with proceedings under Section 132(1)(a), 132(1)(f) and 132(1)(i) of the CGST Act, 2017 in a case initiated by the Directorate General of GST Intelligence (DGGI), Ghaziabad. The case pertained to...

Wrong Rubber Stamp Below Signature Does Not Invalidate Show Cause Notice: Allahabad High Court

The Allahabad High Court has recently held that the use of an incorrect rubber stamp beneath the signature on a show-cause notice does not create a jurisdictional defect. The Court said this would not affect jurisdiction where the authority issuing the notice is otherwise vested with powers under the relevant Act and Rules. Rejecting a jurisdictional challenge raised by Dev Trading Company to a show-cause notice issued under the Health Security se National Security Cess Rules, 2026, a Division...

Allahabad High Court Says GSTN Portal Should Allow Online Filing Of Additional Replies To Show Cause Notices

The Allahabad High Court has recently observed that the GSTN portal should be refined to allow the filing of additional or supplementary replies online. It also directed that a copy of its order be communicated to GSTN for consideration and compliance. The court noted that notices, replies, and orders are otherwise exchanged through the portal. While dealing with the rejection of Tejashva Tractors And Motors' refund application, the bench of Justice Saumitra Dayal Singh and Justice Vivek Saran...

Arbitration Clause In Tax Invoice Binding If Goods Accepted Without Protest: Allahabad High Court

The Allahabad High Court on 6 May held that an arbitration clause contained in the terms and conditions of a tax invoice constitutes a valid arbitration agreement when the receiving party accepts the goods supplied under the invoice without objection. Justice Piyush Agrawal appointed former judge Justice Vivek Kumar Birla as the sole arbitrator in a dispute between Ganesha Ecosphere Limited and Goodcore Spintex Pvt. Limited after holding that the parties were bound by the arbitration clause...

Revenue Must Rebut Taxpayer's Claimed Date Of GST Order Communication With Cogent Evidence: Allahabad High Court

The Allahabad High Court has reiterated that where a taxpayer discloses the actual date of communication of an order under the Uttar Pradesh Goods and Services Tax Act, 2017, the burden shifts to the Revenue to rebut that assertion with cogent material. It further held that the appellate authority is bound to give an independent finding on the date of communication of the order. Referring to the decisions of the division bench of the Allahabad High Court in Bambino Agro Industries Limited v....

Allahabad High Court Rejects Civil Court Relief In Covid Loan Diversion Case, Upholds SARFAESI Action

On 11 May, the Allahabad High Court dismissed an appeal seeking to restrain SARFAESI recovery proceedings against Srijan Hospital, holding that civil courts cannot interfere where a borrower breaches loan conditions by diverting funds and statutory remedies under the SARFAESI Act, 2002 are available. A Bench of Justice Abdul Shahid held: “The appellant/plaintiff has materially changed the purpose of the aforesaid loan. He had entered into an agreement with the respondent-bank under the LGSCAS...

No Rectification For Debatable Points Under Section 254(2) Of Income Tax Act: Allahabad High Court

The Allahabad High Court on 6 May held that only mistakes apparent from the record can be rectified under Section 254(2) of the Income Tax Act, 1961, and that debatable issues fall outside its scope. A Division Bench of Justices Shekhar B. Saraf and Abdhesh Kumar Chaudhary dismissed the appeal filed by Abusaad Ahmad, upholding the Income Tax Appellate Tribunal's refusal to rectify its earlier order rejecting condonation of delay. It held: “In order to attract the power to rectify under...

Allahabad High Court Allows Writ Petition Against Arbitral Award Passed After Unilateral Shift Of Seat

The Allahabad High Court on 5 May held that a writ petition challenging an ex parte arbitral award is maintainable in exceptional circumstances involving lack of jurisdiction or violation of principles of natural justice. A Division Bench of Justices Ajit Kumar and Indrajeet Shukla allowed the writ petition filed by Sushil Kumar Prajapati the proprietor of Laxmi Medical Agency against the Central Hospital, North Central Railway, Allahabad, and set aside an ex parte arbitral award passed in...

Allahabad High Court Refuses Writ Against MSME Council Award, Directs Recourse Under Section 34

The Allahabad High Court on 30 April reiterated that a writ petition challenging an ex-parte award passed by the Micro, Small and Medium Enterprises Facilitation Council under Section 18 of the Micro, Small and Medium Enterprises Development Act, 2006 is not maintainable when the statute provides an alternative remedy under Section 34 of the Arbitration and Conciliation Act, 1996. A Division Bench of Justices Saral Srivastava and Garima Prashad dismissed the writ petition filed by Shri Krishna...

Dealer's Counter-Offer Not Consent: Allahabad HC Sets Aside HPCL Arbitrator Appointment

The Allahabad High Court has set aside an arbitral award after finding that Hindustan Petroleum Corporation Ltd. could not validly appoint its own officer as arbitrator without a clear written waiver from the dealer after the dispute had arisen. "Hence, the appellant cannot be non-suited for not taking a precise ground in its petition under Section 34 of the Act of 1996 as the ground of illegibility could be raised at any stage and having done so and examined by this Court, it is found that the...

Arbitral Tribunal Can Decide Limitation Even After Appointment Under Section 11: Allahabad High Court

The Allahabad High Court on 27 April held that even where a Court appoints an Arbitral Tribunal under Section 11 of the Arbitration and Conciliation Act, 1996 without examining limitation, the Arbitral Tribunal can still decide such objections under Section 16. A Bench of Justices Shekhar B. Saraf and Abdesh Kumar Chaudhary held that Arbitral Tribunals retain full authority to decide their own jurisdiction, including limitation, even after a Section 11 reference, and set aside the Tribunal's...

Public Announcement Under IBC Sufficient, Individual Notice Not Required: Allahabad High Court

The Allahabad High Court on 24 April, held that under the Insolvency and Bankruptcy Code, 2016, individual notice to each creditor is not required and that a public announcement under Section 15 of the Code constitutes sufficient notice to corporate creditors. A Bench comprising Justices Ajit Kumar and Swarupama Chaturvedi, while allowing a petition by South East U.P. Power Transmission Company Limited (and a connected petition by Tata Steel Limited) further held that creditors must exercise...