Jharkhand HC Directs Tax Authorities To Follow Due Procedure While Passing Orders; Imposes Costs For Passing Order Violating Natural Justice

The Jharkhand High Court directed the state tax authorities to follow due procedure while passing adjudication orders. The Division Bench of Chief Justice Ramachandra Rao and Justice Deepak Roshan stated that “despite directions issued by the Court, it appears that State Tax authorities are continuing to conduct adjudication proceedings in utter disregard to the mandatory provisions of the Act and in violation of the principles of natural justice.” In this case, a show cause notice...

Department Retaining Balance Amount After Tax Demand Is Reduced Violates Article 14 & Article 265 Of Constitution: Jharkhand High Court

The Jharkhand High Court stated that retaining balance amount by department after the tax demand is reduced is violative of Article 14 & Article 265 of the constitution. The Division Bench of Chief Justice M.S. Ramachandra Rao and Justice Deepak Roshan observed that the department cannot retain the amounts deposited by the assessee pursuant to condition imposed by the appellate authority for stay of the assessment order and contend that there is no necessity to refund the same. ...

Court Having Jurisdiction Over Seat Of Arbitration Would Be Entitled To Entertain Petition U/S 34 Of Arbitration Act: Jharkhand High Court

The Jharkhand High Court bench of Justice Sanjay Kumar Dwivedi has held that the court having jurisdiction over the seat of Arbitration would be entitled to entertain a petition under section 34 of the Arbitration Act. Brief Facts: A dispute arose between the petitioner and the opposite party. An Arbitration clause was invoked. The award was also passed which was subsequently challenged before the commercial court at Ranchi under section 34 of the Act. The opposite party challenged...

Arbitral Tribunal Not Bound By Strict Rigors Of CPC, Amendment Permissible At Any Stage Of Proceedings: Jharkhand High Court

The Jharkhand High Court Bench of Justice Gautam Kumar Choudhary has held that the power under Articles 226 and 227 of the Constitution can be invoked for interfering with an interim order only in exceptionally rare cases. Additionally, the court held that Arbitral Tribunals are not bound by the strict rigours of CPC and an amendment is permissible at any stage of the proceedings for the purpose of determining the real question in controversy between the parties. Brief Facts: ...

Advocate Not Liable To Verify Fake Documents Provided By Client For Firm Registration To Evade Tax: Jharkhand High Court

The Jharkhand High Court stated that an advocate is not liable to verify fake documents provided by a client for registration of a firm to evade tax.The bench of Justice Anil Kumar Choudhary was dealing with a case where an advocate had moved a petition for anticipatory bail in a case registered under sections 406/420/468/471/120B of the Indian Penal Code and under Section 132 (1) (b)/131 (1) (e)/132 (1) (1) of Jharkhand Goods and Services Tax (JGST).In this case, the petitioner who is a...

Who Qualifies As 'Proper Officer' To Issue Show Cause Notices U/S 74 Of CGST Act? Jharkhand High Court Clarifies

The Jharkhand High Court has provided a significant clarification regarding who qualifies as the “proper officer” empowered to issue a show cause notice under Section 74 of the Central Goods and Services Tax (CGST) Act, 2017. The Division Bench of Justices Sujit Narayan Prasad and Arun Kumar Rai observed that “If the definition of the Poper Officer will be taken into consideration along with the provision of Section 168 of the Act, 2017, the Commissioner if authorized to act by the...

Jharkhand High Court Quashes Criminal Proceedings For Delayed Tax Payment In Absence Of Any Penalty Proceedings

The Jharkhand High Court has quashed the criminal proceedings against a man accused of tax evasion under the Income Tax Act, 1961. The case involved allegations that the petitioner, a tractor dealer, failed to pay the tax liability associated with his income tax returns for the assessment year 2011-12, despite declaring the amount in his filing.The court's decision to quash the proceedings hinged on the fact that the tax was eventually paid, albeit with some delay, and that there were no pending...

Jharkhand High Court Dismisses Dept's Appeals For Not Filing Delay Condonation Application Along With Appeal Memo

The Jharkhand High Court, while dismissing the appeal filed by the department, held that a delayed condonation application not filed with an appeal memo and subsequent filing cannot cure defects.The bench of Chief Justice B.R. Sarangi and Justice Sujit Narayan Prasad has observed that time and again if the appeal memo does not contain an application of delay condonation and was not filed at the time of filing of the same, then even subsequent filing of the application for condonation of delay...

Section 11 Of Arbitration Act Mandates Examination Of Written, Signed Arbitration Clauses As Per Section 7 Requirements: Jharkhand High Court

The Jharkhand High Court bench of Acting Chief Justice Shree Chandrashekhar has held that in Section 11(6) of the Arbitration and Conciliation Act, 1996, the Court is required to see whether there is an arbitration clause which as per section 7 should be a document in writing signed by the parties. The bench held where the existence of the arbitration agreement is undisputed by the parties involved, the dispute should accordingly be referred to arbitration. Brief Facts: Tata...

Section 11 Petition Requires Only Existence of Arbitration Clause, 'No More, No Less': Jharkhand High Court

The Jharkhand High Court bench of Acting Chief Justice Shree Chandrashekhar has held that the court in Section 11 of the Arbitration and Conciliation Act, 1996 is not required to look beyond except existence of the arbitration clause at this stage; 'no more no less'. Section 11 of the Arbitration Act pertains to the appointment of arbitrators. It outlines the procedure for the appointment of arbitrators in cases where parties to an arbitration agreement are unable to agree on the...

Jharkhand High Court Dismisses JUVNL's Appeal, Upholds Sole Arbitrator Appointment In Dispute With M/s Rites

The Jharkhand High Court has dismissed the appeal filed by Jharkhand Urja Vikas Nigam Limited (JUVNL) challenging the writ court's order to appoint a sole arbitrator in its dispute with M/s Rites.The Court emphasized that it is the High Court's duty to reject petitions or defenses based on purely technical grounds aimed at gaining an unfair advantage.The Division Bench, comprising Acting Chief Justice Shree Chandrashekhar and Justice Navneet Kumar, noted, “…except for a broad proposition that...

Existence Of Arbitration Clause Doesn't Automatically Bar Criminal Proceedings: Jharkhand High Court

The Jharkhand High Court bench of Justice Sanjay Kumar Dwivedi held that held that the existence of an arbitration clause does not automatically bar criminal proceedings. It held that quashing of cognizance or proceedings, as well as the initiation of arbitral proceedings related to commercial transactions, are not determinative factors. The bench held that merely because there is a remedy available for breach of contract through arbitration does not automatically lead the court to...