[S.69 CGST Act] Fake Supplier Addresses Indicate Prima Facie GST Evasion: Himachal Pradesh High Court Refuses To Quash Complaint

The Himachal Pradesh High Court stated that fake supplier addresses indicate prima facie GST evasion and refused to quash complaint under Section 69 of CGST Act. “When the officials went to the addresses mentioned in the invoices and found that no such entity existed, it was sufficient to infer that the invoices were fake, and the material shown to have been supplied as per the invoices could not have been supplied since no such person existed at the given address”, stated the bench. ...

Amount Deposited Under Protest Can't Be Treated As Admission Of Tax Liability: Himachal Pradesh High Court

The Himachal Pradesh High Court has held that when a taxpayer deposits an amount “under protest”, it does not amount to an admission of tax liability.A Division Bench of Justice Tarlok Singh Chauhan and Justice Sushil Kukreja observed as follows; “Once the petitioner had deposited the amount 'under protest', the same could not have been considered to be an admission of liability because the necessary corollary of deposit under protest is that the amount towards the alleged liability has been...

Assessing Officer Can't Act As Prosecutor, Judge And Executor At The Same Time: Himachal Pradesh High Court

Himachal Pradesh High Court held that the Assessing officer must provide the university a fair opportunity to present its case and can't take law in his own hand by acting as a Prosecutor, Judge and Executor at the same time.Justice Tarlok Singh Chauhan & Justice Sushil Kukreja: “The Assessing officer took the law into his own hand and played as a Prosecutor, Judge and Executor at the same time.”Background Facts:The Petitioner, Jaypee University of Information Technology was established in...

Notice U/S 148 Of Income Tax Act Can't Be Issued Without Giving Proper Reasons: Himachal Pradesh High Court

Himachal Pradesh High Court held that a notice under Section 148 of Income Tax 1961 for initiation of reassessment proceedings, can't be issued by the assessing officer without giving proper reasons.“Section 148 enables the Assessing Officer to initiate reassessment proceedings where income chargeable to tax is believed to have escaped assessment”. Justice Tarlok Singh Chauhan & Justice Sushil Kukreja : “The Assessing Officer needs to realise that notice under Section 148 does have...

No Equity In Taxation Law: Himachal Pradesh High Court On Tax Liability Of Auction Purchaser

Himachal Pradesh High Court held that an auction Purchaser is liable to pay the outstanding taxes on vehicles acquired through auction. It stated that there is no equity in taxation law and equity would only come into play in case there is no law operating in the field.Justice Tarlok Singh Chauhan & Justice Sushil Kukreja: “It is more than settled that there is no equity in taxation law and further more equity would only come into play in case there is no law operating in the field. Here,...

Director Of Govt Dept Ineligible To Act As Arbitrator In Dispute Between Dept & Other Party Due To Bar U/S 12(5) Of A&C Act: HP High Court

The Himachal Pradesh High Court bench of Justices Tarlok Singh Chauhan and Sushil Kukreja has held that the statutory bar under subsection (5) of Section 12 of the Arbitration Act applies squarely, as the Director, Department of Digital Technologies and Governance, cannot be considered an independent and impartial arbitrator due to his potential role as a consultant or advisor to the respondents; accordingly, he could not be appointed as an arbitrator, and another arbitrator was appointed...

Issuance Of Show Cause Notice U/s 74 Of CGST Act Does Not Imply Violation Of Natural Justice: Himachal Pradesh High Court

Section 74: Determination of tax not paid or erroneously refunded or input tax credit wrongly availed or utilised by reason of fraud or any wilful-misstatement or suppression of facts.Himachal Pradesh High Court held that when a show cause notice is issued under Section 74 Of the Central Goods and Services Tax Act, the matter is still at a preliminary stage, and objections can't be raised on the ground that it was issued with a preconceived notion or that it violates the principles of natural...

Winding Up Petitions Under Companies Act Not At Irreversible Stage, Should Be Transferred To NCLT For Revival Under IBC: Himachal Pradesh HC

The Himachal Pradesh High Court bench of Justices Tarlok Singh Chauhan and Sushil Kukreja has held that unless the corporate debtor's demise is inevitable or the winding-up proceedings under the Companies Act have reached an irreversible stage making revival impossible, every effort must be made to revive the company. Accordingly, all such winding-up petitions should be transferred to the National Company Law Tribunal (NCLT) for resolution under the Insolvency and Bankruptcy Code, 2016...

Delay Beyond Prescribed Period U/S 34(3) Of Arbitration Act Cannot Be Condoned In View Of Inapplicability Of S.5 Of Limitation Act: Himachal Pradesh HC

The Himachal Pradesh High Court bench of Justice Jyotsna Rewal Dua has held that Section 5 of the Limitation Act, 1963 (Limitation Act) does not apply to a petition filed under Section 34 of the Arbitration and Conciliation Act, 1996 (Arbitration Act). Therefore, if the petition is not filed within the prescribed period as laid down under Section 34(3) of the Arbitration Act, the delay cannot be condoned. Brief Facts: The award was passed by the learned Arbitrator against the...

Arbitrator's Mandate Can Be Extended If Non-Completion Of Proceedings In 12 Months Is Due To Delays Not Attributable To Petitioner: Himachal Pradesh HC

The Himachal Pradesh High Court bench of Justice Ranjan Sharma has held that the mandate of the Arbitrator can be extended under Section 29A of the Arbitration and Conciliation Act, 1996 (Arbitration Act) if the arbitral proceedings are not completed within 12 months due to reasons not attributable to the petitioner, as failing to do so would cause grave prejudice to the petitioner. Brief Facts: Pursuant to Notification under Section 3(A) of the National Highways Act, 1956, the...

Penalty Provision U/S 16(7) HP VAT Act Cannot Be Invoked Without First Ascertaining Applicability Of S.16(4): Himachal Pradesh High Court

The Himachal Pradesh High Court has held that the penalty provision couched in Section 16(7) of the HP Value Added Tax Act, 2005 cannot be invoked until the statutory authority is satisfied regarding the applicability of Section 16(4) of the Act.Section 16(4) requires a registered dealer to pay the full amount of tax due from him into a Government Treasury before it furnishes the return. Failure to do so attracts a penalty under Section 16(7).A division bench of Justices Tarlok Singh Chauhan and...

Application For Extension Of Time Cannot Be Dismissed Due To Mentioning S.151 Of CPC Instead Of S. 29A Of Arbitration Act: Himachal Pradesh HC

The Himachal Pradesh High Court bench of Justice Rakesh Kainthla has held that it is well-settled law that mere mentioning of an incorrect provision is not fatal to the application if the power to pass such an order is available with the court. Brief Facts: The applicant/petitioner has filed an application under Section 151 of CPC for extension of time to comply with the order dated 30.10.2023 passed in arbitration case No. 799 of 2023. The applicant/petitioner filed a...