Delhi High Court
Customs' Decision To Prefer Revision Plea Against Order To Release Goods Not Grounds To Withhold Them: Delhi High Court
The Delhi High Court has held that the Customs Department cannot sit over an appellate body's order directing it to release the goods of an assessee, merely on the ground that the Department seeks to prefer a revision against such order.A division bench of Justices Prathiba M. Singh and Rajneesh Kumar Gupta held, “once the Commissioner of Customs (Appeals) has also allowed redemption, the decision to file revision cannot be a ground to withhold the release of the goods. Further, there is no stay...
Delhi HC Sets Aside Reassessment Over Cash Deposits During Demonetisation, Says Order U/S 148A(d) Income Tax Act Transgressed Notice U/S 148A(b)
The Delhi High Court has set aside the reassessment action initiated against a partnership firm under Section 148A(d) of the Income Tax Act, 1961 over cash deposits made by it during demonetisation, stating that this ground was not mentioned in the notice issued to the firm under Section 148A(b).Section 148A(b) contemplates issuance of a notice asking assessee to show cause why reassessment proceedings should not be initiated against it.Notice under Section 148A(d) is issued after considering...
Sikh People Usually Wear 'Kada', Personal Effect: Delhi High Court Sets Aside Detention By Customs
Observing that Sikh persons usually wear kada as part of their religious practice, the Delhi High Court set aside the detention of a Dubai resident's gold kada by the Customs Department.A division bench of Justices Prathiba M. Singh and Rajneesh Kumar Gupta observed, “Clearly, a perusal of the photographs and the fact that it is one Kada which is usually worn by persons like the Petitioner who are Sikhs, leaves no doubt in the mind of the Court that the same was a personal effect of the...
Assessee's Business Cannot Be Prejudiced By Complete Attachment Of Bank Accounts Pending Adjudication By GST Authority: Delhi HC
The Delhi High Court has asked the GST authority not to prejudice the business of an assessee, involved in manufacturing of mild steel products, by attaching its complete bank account pending adjudication of ₹15.09 crores tax evasion proceedings.A division bench of Justices Prathiba M. Singh and Rajneesh Kumar Gupta noted that one year had elapsed since the provisional attachment order was passed but no show cause notice was issued. It also noted that in any case the entire amount alleged would...
GST Demand Of Over ₹10 Crores Raised Without Considering Assessee's Stand: Delhi High Court Orders Fresh Adjudication
The Delhi High Court has asked the Adjudicating Authority under Central Goods and Service Tax Act 2017 to undertake fresh adjudication of the show cause notice issued to an assessee, raising demand of more than ₹10 crores.A division bench of Justices Prathiba M. Singh and Rajneesh Kumar Gupta did so after noting that such a “substantial” demand was made without even considering the assessee's reply.“Clearly, a substantial demand of more than Rs.10 crores has been raised without considering the...
Musical Works Based On Hindustani Classical Music Can Be Original Even Though Belonging To Same Genre, Raga Or Taal: Delhi High Court
In a significant ruling on copyright law and Indian classical music, the Delhi High Court has held that musical works based on Hindustani Classical Music, though belonging to the same genre, same Raga and same Taal, can be original compositions and original musical works.Justice Prathiba M Singh said that so long as the composition in Hindustani classical music is an original work of the composer, the same would be entitled to protection under the Copyright Act, 1957.“The composer would also be...
Give Credits To Dagar Brothers In AR Rahman's Veera Raja Veera Song: Delhi High Court Issues Interim Injunction
In an interim order passed on Friday, the Delhi High Court has ruled in favour of Veteran Indian classical singer Ustad Faiyaz Wasifuddin Dagar in his suit alleging copyright infringement of his “Shiva Stuti” composition by music composer A.R. Rahman and other producers in Tamil film Ponniyan Selvan 2 song "Veera Raja Veera.”Justice Prathiba M Singh said that balance of convenience was in favour of Dagar and against Rahman and other defendants. The Court concluded that the song 'Veera...
Whether Roof-Mounted Air Conditioners For Trains Attract 18% GST Or 28% GST? Delhi High Court To Decide
The Delhi High Court will soon decide the GST rate applicable to roof-mounted air conditioners of specific designs manufactured for the railways.A division bench of Justices Prathiba M. Singh and Rajneesh Kumar Gupta are seized with a petition filed by railways and aerospace technology company StesaLIT Limited, challenging a Circular issued by the Union Finance Ministry in 2024, stipulating that above said AC units shall be classified under HSN 8415 and not HSN 8607.HSN code 8415 attracts GST...
Delhi HC Sets Aside ₹12 Crore GST Demand On Exide Industries But Imposes ₹1 Lakh Cost For Laxity In Responding To Hearing Notices
The Delhi High Court has set aside a GST demand of over ₹12 crores raised on storage battery manufacturer Exide Industries, for wrongful availment of Input Tax Credit.A division bench of Justices Prathiba M. Singh and Rajneesh Kumar Gupta however imposed a cost of ₹1 lakh on the Indian multinational for “laxity” in responding to the repeated hearing notices issued by the Department.The petition was filed by the company assailing final order and Form DRC-07 issued by the Adjudicating Authority to...
S.13 Income Tax Act | Charitable Trust's Status Not Affected For Making Reasonable Payments On Services Rendered By Related Party: Delhi HC
The Delhi High Court has held that a Charitable Trust's status cannot be taken away citing violation of Section 13 of the Income Tax Act, 1961 merely because it made reasonable payment for services rendered by a related party.Ordinarily, Charitable Trusts are not allowed to make payments for the benefit of 'prohibited parties'.Section 13 states that exemptions to Charitable Trust under Section 11/12 of the Act would not be available to the extent that the said income is applied for the benefit...
S.107(6) Of CGST Act Does Not Grant Discretion To Court For Waiving Pre-Deposit At Time Of Filing Appeal: Delhi High Court
The Delhi High Court has made it clear that it has no discretion to allow a prayer seeking waiver of pre-deposit condition prescribed under Section 107(6) of the Central Goods and Services Tax Act, 2017 for preferring an appeal under the statute.In terms of Section 107(6), insofar as the admitted tax, interest or penalty is concerned, the entire amount would have to be deposited. In so far as the disputed amount is concerned, 10% of the tax would have to be deposited as a pre-deposit along with...
Grant Of Post-Award Interest U/S 31(7)(B) Of A&C Act Is Mandatory, Arbitrator's Discretion Limited To Rate Of Interest: Delhi HC
The Delhi High Court bench of Justice Ravinder Dudeja has held that the grant of post-award interest under Section 31(7)(b) of the Arbitration and Conciliation Act, 1996 (“the Act”) is mandatory. The only discretion which the Arbitral Tribunal has is to decide the rate of interest to be awarded. Where the Arbitrator does not fix any rate of interest, then statutory rate, as provided in Section 31(7)(b), shall apply. Brief Facts Petitioner No. 1 i.e., Northern Railway, awarded...