Pending GST Fraud Case No Ground To Restrict Passport Renewal To Three Years: Delhi High Court

The Delhi High Court on 20 August held that the pendency of a criminal case concerning alleged Goods and Services Tax fraud cannot justify restricting an accused person's passport renewal to three years when sufficient safeguards prevent him from leaving India without the Court's permission. Justice Saurabh Banerjee modified the trial court's order limiting Atul Modi's passport renewal to three years and directed that his passport be renewed for the regular term of ten years. He held: “There...

Importer Must Verify Genuineness Of Duty Scrips Used For Customs Clearance, Can't Shift Responsibility To Agent: Delhi High Court

The Delhi High Court has held that an importer, being the ultimate beneficiary of duty benefits, has the responsibility to verify the genuineness of duty credit scrips used for customs clearance.The Division Bench of Justices Anil Kshetarpal and Shail Jain held that an importer cannot escape liability for forged or manipulated scrips by shifting the blame to its agent.The Court was dealing with a batch of six customs appeals and 41 writ petitions arising from an investigation into large-scale...

Income Tax Act | S. 68 Can't Tax Property Sale Advance In Subsequent Year Even If Capital Gain Was Set Off Against Loss: Delhi High Court

The Delhi High Court has held that an amount received as an advance towards the sale of property cannot be added as unexplained cash credit under Section 68 of the Income Tax Act in a subsequent assessment year, merely because the assessee allegedly adopted a “device” to set off the capital gain arising from the sale against a capital loss.The division bench of Justices Dinesh Mehta and Rajneesh Kumar Gupta was dealing with an appeal filed by the Revenue against an ITAT order concerning...

Delhi High Court Cancels 'DAPLOGIN' Trademark Registration Over Similarity With Dr. Reddy's 'DAPLO'

The Delhi High Court on 17 August cancelled Razenta Pharmaceuticals' trademark registration for “DAPLOGIN” in a dispute with Dr. Reddy's Laboratories over the latter's registered “DAPLO” mark. Justice Jyoti Singh allowed Dr. Reddy's Laboratories' petition under Section 57 of the Trade Marks Act, 1999, and directed the Registrar of Trade Marks to rectify the register by cancelling Razenta Pharmaceuticals' registration within six weeks. She held: “The mark DAPLO is neither publici juris nor...

Delhi High Court Says Consent Awards Open To Challenge, Upholds Award In BDR Builders Dispute

The Delhi High Court on 18 August dismissed a property owner's challenge to a consent arbitral award directing specific performance of an agreement to sell his Vasant Vihar property in favour of BDR Builders and Developers Private Limited.Justice Harish Vaidyanathan Shankar, however, held that a consent arbitral award, though subject to a narrower scope of interference, can be challenged under Section 34 of the Arbitration and Conciliation Act, 1996 to examine whether the settlement was lawful,...

Delhi High Court Sets Aside Income Tax Penalty For Furnishing Inaccurate Income Particulars Over Defective Notice

The Delhi High Court has held that a penalty imposed under Section 271(1)(c) of the Income Tax Act, 1961, cannot be sustained if the notice issued to the assessee fails to specify the particular limb under which the penalty proceedings are proposed.The division bench of Justices Dinesh Mehta and Rajneesh Kumar Gupta rejected the Revenue's appeal against an ITAT order which had set aside the penalty imposed on Vitasta Estates.It noted that Section 271(1)(c) contemplates two distinct grounds for...

No Basis To Retain Bank Guarantees After Arbitral Award Is Settled: Delhi High Court

The Delhi High Court has held that once an arbitral award resolving the main contractual dispute is settled between the parties and the settlement amount is paid, there is no basis for retaining or seeking to invoke performance bank guarantees, security deposits, or fixed deposit receipts (FDRs) furnished under the contract.Justice Tushar Rao Gedela observed, “If that be so, then once the main claims in respect of the dispute arising out of the contract between the parties is adjudicated and...

Delhi High Court Declines Common Adjudication Of Three Customs SCNs Despite Overlapping Evidence

The Delhi High Court has refused to order common adjudication of three show cause notices arising out of a single Directorate of Revenue Intelligence (DRI) investigation, holding that although there was substantial overlap in the material relied upon by the Department, the notices had distinct subject matters and arose at different stages of the alleged transactions.The Division Bench of Justices Anil Kshetarpal and Shail Jain also declined to entertain challenges to the customs adjudication...

Equipment Returned From Free Trade Warehousing Zone Under Fresh Contract Is 'Fresh Import', Not Re-Import: Delhi High Court

The Delhi High Court has held that the return of petroleum operations equipment from a Free Trade Warehousing Zone (FTWZ) to the Domestic Tariff Area (DTA) pursuant to a fresh contract and a subsequent Essentiality Certificate (EC) constitutes a fresh import and not a re-import.The division bench of Justices Anil Kshetarpal and Shail Jain held that merely because the equipment was physically the same as that which had earlier been imported into India, it could not be treated as a re-import. “A...

LOC Cannot Be Issued Against Director Merely For Company's Loan Default: Delhi High Court

The Delhi High Court on 10 August held that a Look Out Circular (LOC) cannot be issued merely because a person was a non-executive director of a company that failed to repay bank dues, particularly when the bank has already initiated legal proceedings to recover the amount. Justice Jasmeet Singh cancelled the LOC issued against Tushar Dey, a former independent and non-executive director of Birla Aircon Infrastructure Pvt Ltd (BAIPL), and directed the Bureau of Immigration to communicate the...

HUL Drags Beco To Delhi High Court Over Ads Claiming Surf Excel, Vim Cause Skin Allergies

The Delhi High Court on Wednesday issued notice to Beco in a product disparagement and trademark infringement suit filed by consumer goods giant Hindustan Unilever Limited (HUL)HUL moved the Court against Kwick Living (I) Private Limited, which runs the cleaning products brand Beco, alleging that Beco's advertisements disparage HUL's detergent brands Surf Excel and Vim by claiming they contain chemicals that cause skin irritation and allergies. Justice Anup Jairam Bhambhani heard extensive...

Delhi High Court Sets Aside Arbitral Award After Tribunal Relied On Pre-Contract Notes To Alter Contract Terms

The Delhi High Court has partly set aside an arbitral award after finding that the majority tribunal had relied on pre-contract cover notes and discussions to alter the terms of an executed insurance policy.Justice Om Prakash Shukla held that the tribunal could not travel beyond the policy and insert terms that were not part of the executed contract. The court observed, “The majority members of the Tribunal acceded their jurisdiction by travelling beyond the executed policy to insert words based...