Madras High Court Orders Provisional Release Of Vimpro Tech Goods Pending Adjudication

The Madras High Court on 5 August held that pendency of a Customs investigation by itself cannot be a ground to deny provisional release of imported goods when Section 110A of the Customs Act, which specifically permits provisional release of detained goods subject to conditions, applies. Justice Hemant Chandangoudar set aside the Customs order rejecting Vimpro Tech's request for provisional release and directed the authorities to release the goods subject to conditions, while allowing the...

Madras High Court Directs Reconsideration Of Indian Bank's Maharashtra GST Waiver Claim

The Madras High Court on 31 July directed GST authorities to reconsider Indian Bank's application seeking waiver of interest and penalty in respect of its Maharashtra operations. Justice Senthilkumar Ramamoorthy held that when a single order under Section 73 of the Central Goods and Services Tax Act, 2017 covers operations in multiple States, the proper officer cannot reject a waiver claim under Section 128A of the Act for one State on the ground of lack of jurisdiction if no other officer is...

GST Search Grievance Cannot Invoke Criminal Jurisdiction Under Section 528 BNSS: Madras High Court

The Madras High Court on 4 August held that a grievance concerning search or inspection by Goods and Services Tax (GST) authorities cannot be brought within the scope of Section 528 of the Bharatiya Nagarik Suraksha Sanhita (BNSS), merely because tax officials are empowered to conduct search and seizure while following criminal procedure. Justice D. Bharatha Chakravarthy declined to entertain the petition filed by B. Rajkumar, who carries on business as Maharaja Jewellers in Chennai, seeking a...

Madras High Court Reduces Vedanta's Pre-Arbitration Interest From 14% To 9% In Masyc Projects Dispute

The Madras High Court on 31 July partly allowed Vedanta Limited's appeal arising from its dispute over the design, manufacture, supply and commissioning of a conveyor system for a copper concentrate warehouse at Tuticorin, while substantially upholding the arbitral award in favour of Masyc Projects Pvt. Ltd.A Division Bench of Justices P. Velmurugan and K. Govindarajan Thilakavadi held that interest awarded for the pre-arbitration and pendente lite periods must be commensurate with the...

Madras High Court Expands GST Search Safeguards, Requires DIN Compliance And Voluntary Payments

On 5 August, the Madras High Court laid down additional safeguards governing GST searches, including requirements relating to search authorisation, Document Identification Numbers (DIN) and voluntary payments under the GST law. Justice G.R. Swaminathan while allowing a writ petition filed by Bhima Enterprises, a jewellery dealer, held that Goods and Services Tax (GST) officers cannot recover tax during search proceedings and that any payment made before issuance of a show cause...

Madras High Court Restrains Piracy Of Lokesh Kanagaraj-Starrer 'DC' Ahead Of Release

The Madras High Court has restrained internet service providers and cable TV operators from facilitating the apprehended copyright violation of Sun TV Network Limited's upcoming Tamil film "DC."The film, starring filmmaker Lokesh Kanagaraj in his lead acting debut, is slated for theatrical release on August 7.Justice K. Kumaresh Babu on August 5 passed the order on two applications filed by Sun TV in a copyright infringement suit, one directed at major ISPs including BSNL, Airtel, Vodafone, Jio,...

Madras High Court Refuses To Transfer Ex-Minister Radhakrishnan Case To PMLA Court, Calls Plea Premature

On 4 August, the Madras High Court dismissed the Enforcement Directorate's (ED) petition seeking transfer of the disproportionate assets case against former Tamil Nadu Minister and MLA Anitha R. Radhakrishnan from the Principal Sessions Court, Thoothukudi, to the Special PMLA Court at Madurai, holding that the application was premature. A Division Bench comprising Chief Justice Sushrut Arvind Dharmadhikari and Justice G. Arul Murugan held that a scheduled offence case can be committed to a...

Six Month Limitation For Service Tax Refund Starts From SIPCOT Certificate Date: Madras High Court

The Madras High Court on 14 July held that the six-month limitation period for claiming service tax refund under Section 104 of the Finance Act, 2017 must be calculated from the date on which the taxpayer receives the mandatory certificate from the State Industries Promotion Corporation of Tamil Nadu (SIPCOT), and not from the date on which the Finance Act received Presidential assent. A Division Bench comprising Justices Dr. G. Jayachandran and N. Mala allowed the taxpayer's appeal, set aside...

GST Department Cannot Retain Seized Records After Withdrawing Search Authorisation: Madras High Court

On 5 August, the Madurai Bench of the Madras High Court held that the GST Department cannot retain files and documents seized during an inspection once it withdraws the search authorisation under which the seizure was made, and directed the immediate return of all records taken from a jewellery dealer. A Bench of Justice G.R. Swaminathan allowed the writ petition filed by Bhima Enterprises and noted that the Department lost its statutory authority to retain the seized material after withdrawing...

Madras High Court Says Tax Authorities Must Consider Demerger Impact, Remands Grace Infrastructure Case

The Madras High Court on 20 July held that tax authorities must consider the impact of a court-approved demerger before revising an assessment and set aside a revision order passed without examining the effect of the restructuring on Grace Infrastructure Private Limited's financial statements. Justice C. Saravanan remitted the matter to the Principal Commissioner of Income Tax for fresh adjudication, directing it to reconsider the assessment after allowing the company to file a revised return...

Madras High Court Holds Later Clarifications Cannot Take Away 7% Drawback On Bus Bodies, Quashes Denial

The Madras High Court on 30 July held that Customs authorities cannot deny exporters the benefit of a beneficial drawback circular through later clarifications unless the original circular granting the concession has been withdrawn, quashing orders rejecting 7% brand rate drawback claims on the bus body portion of exported passenger buses. Justice Hemant Chandangoudar allowed the petitions filed by Ashok Leyland Limited and set aside the revisional orders dated 8 March 2022 and the CBEC...

Financial Crisis Reasonable Cause To Waive Service Tax Penalty: Madras High Court

The Madras High Court on 27 July held that penalties under the Finance Act, 1994 cannot be imposed where a taxpayer proves a genuine financial crisis as a reasonable cause for delayed payment of service tax, ruling that a Tribunal's finding of financial incapacity based on material on record cannot be interfered with in appeal. A Division Bench of Justices G. Jayachandran and N. Mala dismissed two appeals filed by the GST and Central Excise Department against the CESTAT order that waived...