Customs Adjudication Limitation Clock Restarts After Interim Stay Ends: Delhi High Court

The Delhi High Court has held that where a pending court proceeding and an interim order prevent customs authorities from proceeding with adjudication, the limitation period prescribed under Section 28(9) of the Customs Act, 1962, is to be reckoned from the date on which the circumstance contemplated under Section 28(9A) ceases to exist.The Division Bench of Justices Anil Kshetarpal and Shail Jain made the observation while dismissing a petition challenging a customs adjudication order that...

GST Officer's Competence Can Be Challenged Before Appellate Authority: Delhi High Court Declines Writ

The Delhi High Court has declined to entertain a batch of writ petitions challenging GST proceedings and penalty orders. The court held that the petitioners can raise their objections, including the alleged lack of competence of the officers who issued the show-cause notices, before the statutory appellate authority.The Division Bench of Justices Anil Kshetarpal and Shail Jain held that the objection regarding the competence of the officers did not constitute a “patent or self-evident absence...

Customs Cannot Indefinitely Retain Seized Goods Merely Because Adjudication Is Pending: Delhi High Court

The Delhi High Court has observed that the Customs Department cannot retain seized goods indefinitely merely because adjudication proceedings have not been completed.The Division Bench of Justices Anil Kshetarpal and Shail Jain made the observation while dealing with two petitions seeking release of gold and gold jewellery detained by Customs at the Delhi airport.Petitioners contended that the goods had remained with Customs for several years without any order being passed and that no Show Cause...

Penalty Under FERA Cannot Be Justified Merely Because It Falls Within Statutory Maximum: Delhi High Court

The Delhi High Court has held that a penalty cannot be justified merely because it falls within the statutory maximum provided under Foreign Exchange Regulation Act, 1973 (FERA). The authority imposing the penalty must give reasons for the amount imposed and ensure that it is proportionate to the contravention."We are, therefore, of the opinion that merely because the imposed penalty falls within the maximum limit prescribed under Section 50 of the FERA, does not, by itself, validate it. The...

Three-Month Limitation For Consequential Orders Cannot Justify Delayed Vivad Se Vishwas Refunds Gujarat High Court

The Gujarat High Court has ruled that the tax department cannot rely on the three-month time limit for passing a consequential order under the Income-tax Act to justify delaying refunds under the Vivad se Vishwas scheme.It held that the department was required to pass the necessary order and issue the refund by July 31, 2021, as prescribed by the Central Board of Direct Taxes (CBDT), and directed it to pay interest at 6% per annum on the delayed refund from August 1, 2021 to March 2, 2024.“The...

Delhi High Court Refers Flemingo-AAI Dispute To Arbitration, Says Conditional Notice Is Not Invocation

The Delhi High Court on 7 September referred a dispute between Flemingo (DFS) Private Limited and the Airports Authority of India (AAI) concerning the operation of duty-free shops at Amritsar Airport to arbitration. Justice Jasmeet Singh appointed Justice Shalinder Kaur (Retd.) as the sole arbitrator to adjudicate the disputes, holding that Flemingo's earlier communications did not amount to invocation of arbitration and that its petition under Section 11(6) of the Arbitration and Conciliation...

Delhi High Court Upholds BAI Impleadment In CCI's Grey Cement Cartel Probe, Dismisses UltraTech Appeal

The Delhi High Court has dismissed UltraTech Cement Ltd.'s appeal against the Competition Commission of India's decision to implead the Builders Association of India (BAI) in its suo motu probe into alleged cartelisation and price manipulation by grey cement manufacturers. A Division Bench comprising Chief Justice Devendra Kumar Upadhyay and Justice Tejas Karia dismissed UltraTech's appeal against the Single Judge's order upholding the CCI's decision. TheCourt held that any entity with...

Delhi High Court Blocks Websites Offering Fake MG Motor Dealerships, Orders ₹14.55 Lakh Lien

The Delhi High Court has recently blocked three websites allegedly being used to impersonate MG Motor and offer fake car dealerships to the public. Justice Jyoti Singh restrained those operating the websites from using MG's trademarks and branding or from claiming to represent the company or its agents.The court also directed the concerned domain registrars to suspend the three websites within 36 hours of receiving the order. Indian Overseas Bank was directed to mark a lien on the bank account...

Delhi High Court Reserves Verdict On HUL's Interim Plea Over Beco Ads Claiming Surf Excel, Vim Cause Skin Irritation

The Delhi High Court has reserved judgment on Hindustan Unilever Limited's plea for an interim injunction against Kwick Living (I) Private Limited, which runs the cleaning products brand Beco.The court heard arguments from both sides in the disparagement dispute over Beco's advertisements claiming Surf Excel and Vim cause skin irritation and allergies. Justice Anup Jairam Bhambhani recorded that judgment was reserved on the matter for interim measures.HUL moved the Court against Beco, alleging...

Delhi High Court Restrains TruCap Finance From Disposing Assets Worth Rs. 1.70 Crore

The Delhi High Court on 1 September restrained TruCap Finance Limited from creating third-party rights or encumbrances over, or disposing of, assets worth up to Rs. 1.70 crore in a dispute with UGRO Capital Limited. Justice Om Prakash Shukla also appointed Advocate Manisha Suri as the sole arbitrator to adjudicate the dispute arising from a co-lending arrangement between the two non-banking financial companies. The Bench observed: “Having heard learned Senior counsel for the Petitioner and...

Legal Heir Can Challenge Arbitral Award Despite Not Participating In Proceedings: Delhi High Court

The Delhi High Court has held that a legal representative of a deceased party can challenge an arbitral award even if the legal representative did not participate in the arbitration.Justice Swarana Kanta Sharma was dealing with a plea by Faisal Ahmed, one of the nine legal heirs of late Sultan Ahmed, who sought to participate in arbitration proceedings concerning his father's rights in a shop at the Hyatt Regency Shopping Arcade, New Delhi. The court declined to stop the arbitration, which had...

Delhi High Court Revives Patent Bid For Improved Process To Make Drug Used To Reverse Muscle Relaxation

The Delhi High Court has set aside the Patent Office's decision refusing a patent application for an improved process to prepare sugammadex, a drug used to reverse the effects of certain muscle relaxants administered during surgery. The court found that the applicant was denied a mandatory opportunity of hearing before the refusal.Justice Jyoti Singh observed that hearings held during the pre-grant opposition proceedings could not replace the separate hearing required before the application was...