Arbitration Clause Cannot Be Invoked Post Expiry Of Tenancy Agreement: Allahabad High Court

While entertaining a revision petition related to a tenancy agreement, the Allahabad High Court has held that a clause for arbitration cannot be invoked for any disputes that arise after the contract has come to an end.“… it clearly transpires that existence of a contract is necessary for invocation of arbitration clause prescribed under the agreement as the clause would perish with the contract,” held Justice Ajit Kumar.Factual BackgroundThe revisionist and opposite party entered into a tenancy...

Allahabad High Court Directs State GST Dept To Not Initiate Action For Assessment Years In Which Central GST Had Already Acted

The Allahabad High Court has directed the State Goods and Service Tax Authorities to not take action for any assessment year in which the Central Goods and Service Tax Authorities have already taken action. Petitioner approached the High Court under Article 226 of the Constitution of India against the actions taken by the State and Central GST Authorities for the same assessment year, 2017-18. It was argued that once State GST Authorities had completed assessment proceedings under...

Appeals U/S 260A Of Income Tax Act Not Sustainable In Absence Of Perversity In Tribunal's Fact Finding: Allahabad High Court

While entertaining an Income Tax Appeal, the Allahabad High Court has held that an appeal under Section 260A of the Income Tax Act, 1961 cannot be sustained without establishing a perversity with the fact finding of the Tribunal. “In the instant appeal the department has only challenged the fact finding off the Tribunal. A catena of Supreme Court judgments have concluded that in relation to facts, no substantial question of law would arise unless the finding of fact is perverse,” held...

Once HC Directs To Avail Alternate Remedy, Appeal U/S 107 GST Cannot Be Dismissed As Not Maintainable: Allahabad High Court

The Allahabad High Court has held that once the High Court has directed the assesee to approach the appellate authority under Section 107 of the Central Goods and Service Tax Act, 2017, the appeal cannot be dismissed as not maintainable. Counsel for petitioner argued that notice and demand under Section 79 of the CGST Act were issued to the petitioner, pursuant to which it approached the High Court. The then Division Bench relegated the petitioner to alternate remedy of appeal under...

[Taxation] Passing Order Without Providing Opportunity Of Hearing, Providing Documents Violates Natural Justice: Allahabad HC Reiterates

While deciding a case relating to Input Tax Credit, the Allahabad High Court has held that a quasi-judicial body must provide an opportunity of hearing to a person before imposing liability on them. The Division Bench comprising Justice Shekhar B. Saraf and Justice Vipin Chandra Dixit held that as per the doctrine of audi alteram partem (let the other side be heard as well), such orders cannot be passed without providing the assessee a proper opportunity to make present their case. It...

[S.73(10) UPGST] Time Extension Notification Dated 24.04.2023 Valid Only From 31.03.2023, Not Before: Allahabad High Court

The Allahabad High Court has held the time extension notification dated 24.04.2023 extending time period for passing orders under Section 73(9) and 73(10) of the Uttar Pradesh Goods and Service Tax Act, 2017 will apply only from 31.03.2023 and not before that. Section 73 empowers the proper officer to pass orders imposing penalty or interest where any tax has not been paid or short paid or erroneously refunded, or where input tax credit has been wrongly availed or utilised for any...

Private Contracts Between Parties For Appointment Of Arbitrator Different From Statutory Appointment Of Arbitrators: Allahabad High Court

Recently, the Allahabad High Court has held that cases where appointment of arbitrators is through contracts which contemplate such appointment and statutory appointment of arbitrators are two separate classes to cases and the same are distinguishable on facts.National Highways Authority of India approached the High Court against order of the Additional District Judge, POCSO Act, Bijnor under Section 34 of the Arbitration and Conciliation Act, 1996 whereby it was held that the compensation...

Allahabad HC Decines Plea Claiming Road Tax Exemption Should Be Allowed For Registration And Not Purchase Of Electric Vehicles In UP

The Allahabad High Court has dismissed a writ petition claiming exemption from payment of road tax on an electric vehicle purchased from Jammu. The Petitioner had claimed that since road tax is levied for operating the vehicle within the State, no distinction can be made on the basis that the vehicle in question has been purchased within the State or from outside. It had therefore challenged a condition imposed in exemption notification dated March 02, 2023 to the extent it mandates...

Whether Non-Signatory Bound By Arbitration Agreement Can Be Decided By Tribunal, Not Referral Court U/S 11 Of Arbitration Act: Allahabad HC

The Allahabad High Court bench of Justice Manoj Kumar Gupta affirmed that referral court under section 11 of the Arbitration Act stage cannot examine as to whether the non-signatory is bound by the arbitration agreement or not. Such an issue requires factual determination which can be decided by the arbitral tribunal under section 16 of the Arbitration Act. Brief Facts The instant application under Section 11 of the Arbitration and Conciliation Act, 1996 has been filed by the...

Since Award Is A Deemed Decree, Execution Can Be Initiated Anywhere Where Decree Can Be Executed: Allahabad High Court

The Allahabad High Court bench of Justice Neeraj Tiwari affirmed that the enforcement of an award through its execution can be initiated anywhere in the country where the decree can be executed and there is no requirement of obtaining a transfer of the decree from the Court which would have jurisdiction over the arbitral proceedings.Brief FactsLand of respondent Nos. 1 & 2 has been acquired for widening of National Highway No. 2 at Maneyamau, Tehsil- Etawah, District-Etawah and in light of...

[GST] Penalty Can't Be Imposed On Goods In Transit With Tax Invoice & E-Way Bill, Citing Subsequent Suspension Of Registration: Allahabad HC

The Allahabad High Court has set aside the demand and penalty order passed under Section 129 of the Central Goods and Services Tax Act 2017 against a trader whose GST registration came to be suspended, after it found that the goods in transit were accompanied with proper tax invoice and e-way bill. A division bench of Chief Justice Arun Bhansali and Justice Vikas Budhwar relied on M/s Sahil Traders v. State of U.P. and another, 2023 wherein a coordinate bench had held that once the...

Owner Of Electric Vehicle Purchased Prior To October 14, 2022 Can't Seek Refund Of Tax Citing Subsequent Exemption Notification: Allahabad HC

The Allahabad High Court has held that the owner of an electric vehicle which was purchased prior to October 14, 2022 cannot seek refund of tax citing a subsequent notification exempting the payment of One Time Tax. Petitioner had sought refund of One Time Tax paid in respect of his Hybrid Vehicle purchased on October 13, 2022. The relief was sought on the strength of a notification issued by the State providing tax exemption for electric vehicles purchased and registered from the...