Interim Order Directing Release Of Award Amount Not Appealable Under S. 37, Arbitration Act: Gauhati High Court

The Gauhati High Court recently observed that an order directing the release of a deposited award amount during the pendency of a Section 34 challenge cannot be appealed under Section 37 of the Arbitration and Conciliation Act, 1996. The bench of Justice Robin Phukan held an appeal filed by the National Highways Authority of India (NHAI) against an interim order directing the release of the award amount to a landowner to be non-maintainable. The court held, “The upshot of aforesaid discussion...

Are ED's 'Reasons To Believe' For Provisional Attachment Confidential? Gauhati High Court Refers Issue To Larger Bench

The Gauhati High Court has recently referred to a larger bench the question of whether the Enforcement Directorate's recorded "reasons to believe" are confidential or can be incorporated into a provisional attachment order. The reference follows a single judge's disagreement with an earlier coordinate bench that had taken a contrary view.Justice Manish Choudhury observed that his view that it is not confidential differed from the earlier coordinate bench ruling in Aftabuddin Ahmed v. Enforcement...

GST Registration Cannot Be Cancelled Through Cryptic, Non-Speaking Orders: Gauhati High Court

The Gauhati High Court has recently set aside an order cancelling a taxpayer's GST registration, holding that an adjudicating authority cannot pass a cryptic and non-speaking order that carries adverse civil consequences. The court observed that even where a taxpayer fails to respond to a show cause notice, the statutory authority remains under an obligation to provide reasons and demonstrate application of mind while cancelling registration. "If an order is passed without giving a proper...

Gauhati High Court Refuses To Appoint Arbitrator In Techno Steel-IWAI Dispute, Holds Noida Was Arbitral Seat

The Gauhati High Court has held that Noida was the juridical seat of arbitration in a dispute between Techno Steel and Craft Industries and the Inland Waterways Authority of India (IWAI), and therefore declined to appoint an arbitrator for want of territorial jurisdiction. Justice Soumitra Saikia held that the parties had effectively agreed to Noida as the arbitral seat under the contract. The court observed, “This Court will have to hold that in terms of the agreement, the parties have...

Sub-Contract Dispute Clause Bars Import Of Arbitration Clause From Principal Contract: Gauhati HC

The Gauhati High Court on 3 June held that a sub-contract that contains its own specific dispute resolution clause cannot import the arbitration clause from the principal contract, even if it describes the principal contract as “part and parcel” of the sub-contract. The Bench of Justice Sanjay Kumar Medhi dismissed a petition filed by Yumiko Global Infra Tech Private Limited (Yumiko) against PRL-Gepong JV (PRL) under Section 11(6) of the Arbitration and Conciliation Act, 1996 seeking...

GST Registration Can Be Restored On Filing Pending Returns, Clearing Dues Under Rule 22(4): Gauhati HC

The Gauhati High Court on 1 June held that a taxpayer whose GST registration has been cancelled for non-filing of returns can seek restoration of registration by furnishing pending returns and clearing tax dues, interest, penalty and late fees in terms of the proviso to Rule 22(4) of the CGST Rules, 2017. A Bench of Justice Kardak Ete disposed of the petition filed by Md. Nekib Hussain, proprietor of Nekib Hussain, who challenged the cancellation of his GST registration and sought restoration...

Gauhati High Court Holds DRC-01 Cannot Replace Statutory Show Cause Notice Under GST Act

The Gauhati High Court on 13 May held that GST authorities under the Assam GST Act cannot initiate and conclude proceedings under Section 73 solely on the basis of a Summary Show Cause Notice in Form GST DRC-01, reiterating that issuance of a proper statutory show cause notice is a mandatory precondition for raising a tax demand. Justice Manish Choudhury allowed the petition filed by Riyan Enterprises and set aside the adjudication order passed under Section 73 of the Assam GST Act for alleged...

In Faceless Assessment, Income Tax Revision Cannot Be Decided Without Inquiry: Gauhati High Court

The Gauhati High Court has held that the revisional authority cannot dispose of revision proceedings in a mechanical manner under the Income Tax Act (Section 264), which allows a taxpayer to seek revision of an order through a faceless process without making, or causing, an enquiry. This is especially so where the assessee claims difficulty in producing voluminous records and seeks verification at the place of business. The court referred to an earlier Division Bench ruling that held that...

Gauhati High Court Appoints Arbitrator, Allows Arbitration Without Notice As Intent To Arbitrate Was Clear

The Gauhati High Court has appointed its former judge Justice Achintya Malla Bujor Barua as sole arbitrator in a dispute between Ekta Shakti Foundation and the State of Assam, holding that, in the peculiar facts of the case, an arbitration plea can be entertained even without a formal notice where a valid arbitration agreement is undisputed. A Bench of Justice Soumitra Saikia said, "it appears that the dispute between the parties have not been resolved and on the other hand there is a method...

Pecuniary Jurisdiction No Bar Once Court Is Designated As Commercial Appellate Court: Gauhati High Court

The Gauhati High Court on 31 March, held that once the State designates a Court as a Commercial Appellate Court under the Commercial Courts Act, 2015, the appellate forum is determined strictly by such designation and not by the ordinary pecuniary jurisdiction of the District Judge. A Bench comprising Justice Mridul Kumar Kalita dismissed an appeal filed by Lokesh Anand Singhal and Shilpi Anand Singhal, holding that the High Court lacked jurisdiction as the statutory appellate remedy lay before...

GST Registration Cancelled For Non-Filing of Returns Can Be Restored After Compliance: Gauhati High Court

The Gauhati High Court has held that where GST registration is cancelled for non-filing of returns, and the taxpayer furnishes all pending returns and clears tax dues along with applicable interest and late fee, the proper officer may consider dropping the cancellation proceedings in terms of the proviso to Rule 22(4) of the CGST Rules.A bench of Justice Sanjay Kumar Medhi observed that cancellation of GST registration entails serious civil consequences, and therefore, if the taxpayer complies...

Gauhati High Court Asks Authorities To Consider GST Registration Restoration If Taxpayer Clears Dues And Files Returns

The Gauhati High Court has directed authorities to consider restoration of GST registration where a taxpayer is willing to furnish pending returns and clear dues, observing that cancellation entails “serious civil consequences.” Justice Anjan Moni Kalita held that if the taxpayer complies with Rule 22(4) of the CGST Rules, the proper officer shall consider the case and pass appropriate orders. The case arose from a writ petition filed by Apurba Enterprise challenging cancellation of its GST...