While Deciding Petition U/S 9 Of Arbitration Act, Court Cannot Ignore Basic Principles Of CPC: Andhra Pradesh HC

The Andhra Pradesh High Court bench of Justices Ninala Jayasurya and Nayapathy Vijay observed that in deciding a petition under Section 9 of the Arbitration Act, the Court cannot ignore the basic principles of the CPC. At the same time, the power of the Court to grant relief is not curtailed by the rigours of every procedural provision in the CPC. In exercise of its powers to grant interim relief under Section 9 of the Arbitration Act, the Court is not strictly bound by the provisions of...

Usage Of Chemicals As Raw Materials Doesn't Detract From Categorisation As Chemicals; Must Be Taxed At 8%: Andhra Pradesh High Court

The Andhra Pradesh High Court stated that the use of chemicals as raw materials would not change their categorisation as chemicals. Therefore, they must be taxed at 8% only. The Division Bench of Justices R. Raghunandan Rao and Harinath N. was addressing a tax dispute in which the assessee challenged the Revisional Authority's imposition of a higher tax rate of 12% on goods, instead of the 8%. G.O.Ms.No.189, issued on 7th February 2005, revises the tax rate on the sale of “All...

“Judge Cannot Usurp Role Of Disciplinary Authority”: Andhra Pradesh High Court Quashes Order Halting Disciplinary Proceedings Midway

The Andhra Pradesh High Court has set aside the order of the Single Judge, which had allowed the assessee's petition and quashed the disciplinary proceedings midway, specifically at the stage when the enquiry had already been completed. The Division Bench of Justices G. Narendar and Kiranmayee Mandava observed that “………the Judge could not have usurped the role of the disciplinary authority and scuttled the proceedings midway. The statute vests the authority, either to impose or not to...

Andhra Pradesh HC Grants Assessee Opportunity To Seek Revocation Of Registration Cancellation Missed Due To Ongoing Insolvency Proceedings

The Andhra Pradesh High Court has allowed the assessee to file an application for the revocation of the cancellation of their registration, which they missed due to ongoing insolvency proceedings. The Division Bench of Justices R Raghunandan Rao and Harinath N observed that because the assessee had to go through the insolvency proceedings under the IBC, 2016, they should be given some leeway to help get their business back on track. The assessee/petitioner, engaged in the real...

S.81 CGST Act Can't Be Invoked To Declare Transfer Of Property Void Without Determining 'Nature Of Transaction' As Being Sham: Andhra Pradesh HC

The Andhra Pradesh High Court has prima facie held that Section 81 of the Central Goods and Services Tax Act, 2017 cannot be invoked to declare transfer of property void, unless there is a specific finding regarding sham nature of transaction.Section 81 provides that where a person parts with his/her property after any amount has become due from him under the Act, with the intention of defrauding the Government revenue, such transfer shall be void.In the case at hand, Petitioner was purchaser of...

AO Can't Refer Assessee's File To Joint Commissioner For Levying Penalty U/S 271D Of IT Act Without Recording “Satisfaction”: Delhi HC

The Andhra Pradesh High Court has held that an Assessing Officer cannot refer an assessee's file to the Joint Commissioner of Income Tax for levying penalty under Section 271D of the Income Tax Act, 1961 without recording its “satisfaction”.Section 271D of the Income Tax Act prescribes the penalty to be imposed on a taxpayer for taking loan or deposits in contravention of Section 269SS. As per Section 269SS, all loans or deposits of over Rs.20,000 must be taken through banking...

Continuation Of Order Of Attachment And Garnishee Notice Is Impermissible When Appeal Filed Against Order Of Assessment: Andhra Pradesh High Court

The Andhra Pradesh High Court stated that when the assessee files an appeal against an order of assessment, the enforcement actions that have been taken, such as property attachment and garnishment notices, should not continue.The Division Bench of Justices R Raghunandan Rao and Harinath. N observed that the assessee has preferred an appeal and has paid 10% of the disputed tax, as required under Section 107 of the CGST Act, no further tax can be recovered from the assessee, in pursuance of...

AP High Court Dismisses Plea Alleging “Double Taxation” On Sale Of Basmati Rice, Says Fees Collected By Agricultural Market Committee For Its Services Is Not Tax

The Andhra Pradesh High Court has dismissed a petition alleging that cess levied by State's Agricultural Market Committee on sale of 'Basmati rice' amounts to “double taxation”.One of the petitioners, a trader of Basmati rice, claimed that it sources the rice from Punjab where it already pays agricultural market committee tax and thus contended that if the State of Andhra Pradesh imposes tax on the very same stock, it amounts to double taxation.The Market Committee argued they are not collecting...

NCLT Order Prevails Over GST Demand, Even If State Is Not Notified About Pending NCLT Proceedings: Andhra Pradesh High Court

The Andhra Pradesh High Court stated that National Company Law Tribunal (NCLT) order prevails over Goods and Services Tax (GST) demand, even if the state government is not notified about the pending NCLT proceedings. The Division Bench of Justices R. Raghunandan Rao and Harinath N. observed that “the contention of the department that the order of NCLT is not binding on the State of Andhra Pradesh in view of Section 88 of the GST Act would have to be negatived in as much as Section 238...

Appellate Order Can't Be Issued Only In Hindi: Andhra Pradesh High Court

The Andhra Pradesh High Court has held that the appellate order under Section 107 of the CGST Act, 2017 cannot be issued in the State of Andhra Pradesh, in Hindi only.The bench of Justice R Raghunandan Rao and Justice Harinath.N. directed that the orders passed by the Commissioner (Appeals) would not come into effect until English copies of the orders are served on the petitioners, and the limitation for the petitioners to take steps against such orders would commence only when the copies of...

DGFT Notification Prohibiting Export Of Non-Basmati White Rice Can't Have Retrospective Effect: Andhra Pradesh High Court

The Andhra Pradesh High Court has held that the trade notification issued by the Directorate General of Foreign Trade (DGFT) prohibiting export of non-basmati white rice cannot have retrospective effect.The bench of Justice Ninala Jayasurya has observed that the Foreign Trade (Development and Regulation) Act-1992 does not confer any right to the authorities/department or enable them to issue any notification that has the effect of imposing prohibition with retrospective effect or take away the...

Filing Statutory Appeal After Writ Proceedings Concluded Is Abuse Of Process: Andhra Pradesh High Court Imposes Cost

The Andhra Pradesh High Court has held that the filing of the statutory appeal by the writ petitioner after writ proceedings and subsequent proceedings against the same order of assessment, just to avoid the compliance of the directions of the writ Court, is nothing but abuse of the process of the Court.The bench of Justice Ravi Nath Tilhari and Justice Kiranmayee Mandava has observed that the writ petitioner is not entitled to the exclusion of time taken in writ proceedings and the subsequent...