Claims Of GST Department Are Barred Once Resolution Plan Is Approved: Allahabad High Court

Relying on the judgments of the Supreme Court in Vaibhav Goyal & Another Vs. Deputy Commissioner of Income Tax & Another, the Allahabad High Court has held that the claims of Goods and Service Tax Department are barred after the aproval of resolution plan by the National Company Law Tribunal. In Vaibhav Goyal & Another Vs. Deputy Commissioner of Income Tax & Another, the Apex Court has held that if the statutory dues owed to the Government do not form a part of the...

Burden Of Court Increasing Over Violations Of Natural Justice: Allahabad HC Imposes 20K Cost On GST Official For Not Following Mandatory Provision

The Allahabad High Court has imposed a cost of Rs. 20,000 on Joint Commissioner SGST, Corporate Circle-1, Ghaziabad who had issued a show cause notice without specifying the date and time for personal hearing and had passed an order under Section 74 of the Goods and Services Tax Act, 2017 creating a demand of more than Rs. 5 crore ignoring the specific request for personal hearing made by the assesee.Section 75(4) of the GST Act provides that when requested in writing, the assesee must be given...

[Arbitration Act] No Automatic Stay On Award Upon Filing Of Appeal U/S 34 Within Time: Allahabad High Court Reiterates

Following the judgment of the Supreme Court in Board of Control for Cricket in India Vs. Kochi Cricket Pvt. Ltd. and others and Hindustan Construction Company Limited and others Vs. Union of India and others, the Allahabad High Court has reiterated that automatic stay on the operation of arbitral award is not granted merely by filing appeal under Section 34 of the Arbitration and Conciliation Act, 2016.Section 36 of the Arbitration and Conciliation Act, 2016 introduced vide the amending act of...

[S. 93 GST Act] No Provision Empowering Authorities To Make Tax Determination Against Dead Assesee: Allahabad High Court

The Allahabad High Court has held that Section 93 of the Goods and Services Tax Act, 2017 does not empower the authorities to make determination of tax against a dead person and recover the same his legal representatives. Section 93 of Goods and Services Tax Act, 2017 provides for liability to pay tax in case of death of the proprietor of the firm. Section 93(1)(a) provides that when the business is continued after the death of the proprietor, the legal representative shall be liable...

[GST] Seller Registered At Time Of Transaction; Cannot Draw Adverse Inference Against Purchasing Dealer Over Subsequent Cancellation: Allahabad HC

The Allahabad High Court has held that if the seller is a registered dealer at the time of transaction, no adverse inference can be drawn against the purchasing dealer based on the subsequent cancellation of seller's registration.Justice Piyush Agrawal held “Once the seller was registered at the time of the transaction in question, no adverse inference can be drawn against the petitioner. Further, the record shows that the registration of the selling dealer was cancelled retrospectively i.e....

NOIDA Authorities Deposited Party's Tax Under Wrong Head: Allahabad HC Directs Compensation To Assessee For Penalty Imposed U/S 73 Of GST Act

Recently, the Allahabad High Court has directed the New Okhla Industrial Development Authority (NOIDA) to compensate the assesee Rs. Rs.19,22,778/- which was imposed on the assesee as tax and penalty in proceedings under Section 73 of the Goods and Service Tax Act, 2017. Petitioner rented out his property in Gautam Budh Nagar(Noida). The rent received from the property was taxable under the GST Act. Petitioner duly deposited the one-time lease rent of Rs. 97,18,500/- and the tax of...

Proceedings U/S 129 Of GST Act Are Summary Proceedings, Burden To Prove Actual Movement Of Goods Lies On Assesee: Allahabad High Court

The Allahabad High Court has held that proceedings under section 129 of the GST Act are summary proceedings where the burden to prove the actual physical movement of goods is on the assesee transporting the goods. It further held that authorities have the power to seize goods on grounds of undervaluation.Justice Piyush Agrawal held, “Under the taxing statute, in the original proceeding or in the summary proceeding, the primary burden is to be discharged by the assessee by bringing on record the...

Goods Not Accompanied By E-Way Bill, Without Matching Description Shows Intention To Evade Tax: Allahabad High Court

The Allahabad High Court has held that the intention to evade tax is established by the fact that the goods in transit were not accompanied by e-way bill and the goods taxable at 18% were taxed only at 5%. The Court held that after 2018, it was mandatory for the assesee to download e-way bill with goods in transit. “It is mandatory on the part of the seller to download the e-way bill once the goods are put in transit. Subsequent downloading of e-way bill would not absolve the...

[Noida Sports City Scam] Allahabad HC Lays Down Guidelines Regarding Rights Of Other Members Of Consortium When One Member Goes Into Insolvency

While directing CBI inquiry against officials of New Okhla Development Authority and various allottes/ builder involved in development of the Sporty City project in Noida, the Allahabad High Court laid down guidelines regarding the rights of other members of consortium, when one member goes into insolvency as the same is not provided in the Insolvency and Bankruptcy Code, 2016.Holding that the IBC is not indented to hamper projects of national importance, the bench of Justice Mahesh Chandra...

Section 36 Of Arbitration Act As Amended Applies To Pre-Amendment S.34 Applications: Allahabad High Court Reiterates

The Allahabad High Court bench of Justice Piyush Agrawal, placing reliance upon the judgment of the Supreme Court in Board of Control for Cricket in India vs. Kochi Cricket Private Limited & Others (2018), held that the amended Section 36 of the Arbitration and Conciliation Act, 1996 applies prospectively to court proceedings initiated on or after the date of commencement of the Amendment Act. Brief Facts The respondent was awarded a contract, which could not be completed...

No Violation Of Natural Justice Principles If Accused Not Given Advance Copy Of S. 50 PMLA Application: Allahabad HC

The Allahabad High Court has recently observed that not providing an advanced copy of the application filed by the Director of Enforcement (ED) under Section 50 of the Prevention of Money Laundering Act, 2002, to the accused does not violate the principles of natural justice, as the accused has no right to oppose it. For context, under Section 50 of the PMLA, an ED officer is authorised to summon a person and request information from him regarding the case under the 2002 Act. It...

[S.16 Arbitration Act] Jurisdiction Of Tribunal Cannot Be Challenged After Submission Of Defence: Allahabad High Court

The Allahabad High Court has held that as per Section 16(2) of the Arbitration and Conciliation Act, 1996, the jurisdiction of an arbitral tribunal cannot be challenged after submission of defence and that the arbitral tribunal is empowered to adjudicate on its own jurisdiction.The bench of Justice Siddhartha Varma and Dr. Justice Yogendra Kumar Srivastava held “Section 16 of the Arbitration and Conciliation Act, 1996 provides for challenge to the jurisdictional authority of the Arbitral...