Execution Petition For Arbitration Award Would Lie Only Before The Designated Commercial Courts: Andhra Pradesh High Court

The High Court of Andhra Pradesh has held that an execution petition for an arbitration award can only lie before the designated Commercial Courts and no other Court viz., Civil/District Court can entertain such an application. The bench of Justices D.V.S.S. Somayajulu and Duppala Venkata Ramana held that an execution/enforcement petition for an arbitration award of a specified value would be an application within the meaning of Section 15 of the Commercial Courts Act, 2015 that...

Acceptance GSTR-3B Returns With Late Fee Will Not Condone Delay In Claiming ITC: Andhra Pradesh High Court

The Andhra Pradesh High Court has held that mere acceptance of Form GSTR-3B returns with a late fee will not exonerate the delay in claiming the Input Tax Credit (ITC).The bench of Justice U. Durga Prasad Rao and Justice T. Mallikarjuna Rao has observed that ITC being a concession, benefit, or rebate, the legislature is within its competency to impose certain conditions, including a time prescription for availing the right, and it cannot be challenged on the ground of violation of Constitutional...

Andhra Pradesh High Court Quashes Suspension Order Of Customs Broker Licensee Passed Without Giving Opportunity Of Hearing

The Andhra Pradesh High Court has quashed the suspension order passed by the Customs Commissioner suspending the customs broker licence without giving the opportunity for a hearing.The bench of Justice U. Durga Prasad Rao and Justice Venkata Jyothirmai Pratapa has observed that the Managing Director of the petitioner company was on judicial remand. Through repeated requests were made by the petitioner company, their request was rejected on the ground that the legal time frame fixed under the...

Tax Not Payable On Motor Vehicles Exclusively Used for Contract Inside Central Deposit Yard: Andhra Pradesh High Court

The Andhra Pradesh High Court has held that the motor vehicles exclusively used for the petitioner's contract inside the Central Deposit Yard of Rashtriya Ispat Nigam Limited (RINL) are not liable for taxation and are entitled to exemption.The bench of Justice V. Sujatha has observed that the subject motor vehicles were deployed to the Central Deposit Yard Premises, and with effect from April 1, 2021, all the motor vehicles have stopped plying upon the public roads and were being used...

Life Tax On Vehicle Should Be On The Cost, Excluding GST And Cess: Andhra Pradesh High Court Directs Refund

The Andhra Pradesh High Court has held that life tax is to be collected from the vehicle owner upon sale based on the net invoice price of the vehicle and not the ex-showroom price of the vehicle.The bench of Justice V. Sujatha has observed that the life tax can be levied only on the cost of the vehicle under the 6th schedule of the A.P. Motor Vehicles Taxation Act, 1963.The assessee or petitioner has purchased the Hyundai Venue. At the time of purchase, the petitioner paid 14% CGST and 14%...

Since Investigation By DGGI Started Prior To Filing Of Application, AAR Order Is Invalid : Andhra Pradesh High Court

The Andhra Pradesh High Court has ruled that the term ‘any proceedings’ referred to in the proviso to Section 98(2) of the CGST Act/ Andhra Pradesh GST Act (APGST Act), includes within its ambit the investigation initiated against the applicant under the said Act. The bench of Justices U. Durga Prasad Rao and T. Mallikarjuna Rao noted that the proviso to Section 98(2) puts an embargo on the authority of the AAR to admit an application where the question raised in the said application is...

GST Dept. Can’t Retain Disputed Amount Paid Due To Inadvertent Error: Andhra Pradesh High Court

The Andhra Pradesh High Court has held that the GST department cannot retain the disputed amount that is paid to them due to an inadvertent error.The division bench of Justice C. Praveen Kumar and Justice A.V. Ravindra Babu has observed that the amounts that were paid by the assessee or petitioner who furnished the incorrect details cannot be taken as a tax due from the department or respondents, legally. The department cannot contend that the claim, if any, of the petitioner is barred by...

18% GST Payable On Manufacturing Of Alcohol For Human Consumption By Way Of Job Work: Andhra Pradesh High Court

The Andhra Pradesh High Court has held that 18% GST is payable on the manufacturing of alcohol for human consumption by way of job work.The division bench of Justice C. Praveen Kumar and Justice A.V. Ravindra Babu has observed that alcoholic liquor is not considered a food. Services by way of job work in relation to the manufacture of alcoholic liquor for human consumption are not eligible for 5% GST.The petitioner/assessee is a manufacturer of Indian-made foreign liquor having its distillery at...

Once Registered As MSME, The Nature Of Activity Cannot Be A Bar To Any Relief Under The Act: Andhra Pradesh High Court

The Andhra Pradesh High Court has held that once an enterprise is registered with the local MSME Council, it is entitled to all the benefits of the Act and the nature of activity between the parties cannot stand as a bar to any relief provided under the act. The bench of Justice R. Ragunandan Rao held that MSME Council cannot dismiss an application under Section 18 of the Act on the ground that the activity between the parties was merely a 'trading activity', thus, not covered by the ...

Weight Of Arbitration Award (Delivery) Cannot Be Just 55 Grams: Andhra Pradesh High Court

The Andhra Pradesh High Court has held that an arbitration award would weight more than 55 grams and a consignment weighing 55 grams cannot be deemed to be a valid delivery of award. The bench of Justice R. Raghunandan Rao also held that an arbitral award passed in violation of Section 7 and 11 of the A&C Act would be a nullity. It held that in absence of an arbitration agreement, there cannot be any arbitration between the parties. Moreover, in absence of the consent of both the...

Review Of Judgment/Order Passed Under Section 11 Of The A&C Act Is Not Permissible: Andhra Pradesh High Court

The Andhra Pradesh High Court has held that review of an order/judgment passed under Section 11 of the A&C Act is not permissible. The Bench of Justice R. Raghunandan Rao held that power of review is the creature of a statute and in absence of any such provision in a statute, an order/judgment cannot be reviewed on its merit unless it is for some procedural irregularity. The Court held that the A&C does not, either expressly or by implication, provide for any review of an...

Andhra Pradesh High Court Quashes Rejection Of GST Refund Application By Axis Bank

The Andhra Pradesh High Court has quashed the rejection of a GST refund application by Axis Bank and remanded the matter back to the original authority.The division bench of Justice C. Praveen Kumar and Justice A.V. Ravindra Babu has referred to a circular dated 25.09.2021 issued clarifying that the insertion of rule (1A) to Rule 89 provides a time limit of 2 years. The two-year time limit would apply from the date of the introduction of the said rule and not from the date of payment of GST.The...