Customs Dispute Over Car, Cash Confiscation Go To CESTAT, Not Revision Authority: Madras High Court

The Madras High Court on 1 October held that a customs dispute concerning confiscation of a vehicle and Indian currency seized in connection with alleged gold smuggling has to be challenged before the Customs, Excise and Service Tax Appellate Tribunal (CESTAT), and not through a revision application before the Central Government. Justice C. Saravanan granted S. Michael Kennadi liberty to approach the CESTAT against the First Appellate Authority's order, while declining to interfere with the...

Madras High Court Warns Bank-Initiated LOCs Could Leave Debtors At “Mercy Of Wolves Of Creditors”

The Madras High Court has held that a bank manager's letter to the Bureau of Immigration seeking issuance of a Look Out Circular cannot be treated as “law” for restricting a citizen's fundamental right to travel abroad. The court warned that allowing nationalised banks to seek Look Out Circulars (LOCs) against debtors could embolden private creditors and non-banking financial companies (NBFCs) to seek similar restrictions, leaving debtors “at the mercy of wolves of creditors.”“'Law' under...

Attempt To Transfer Property To Defeat Creditors Not 'Act Of Insolvency' Under Provincial Insolvency Act: Madras HC

The Madras High Court at Madurai recently held that an attempt by a debtor to transfer property to defeat creditors may justify attachment before judgment under Order 38 of the Code of Civil Procedure (CPC). However, such an attempt by itself does not amount to an “act of insolvency” under Section 6 of the Provincial Insolvency Act, 1920.“Attempting to transfer one's property to defeat the interest of the creditors can be a good ground for attaching the property before judgment under Order 38 of...

Time-Barred GST Refund Claim Cannot Trigger Deficiency Memo: Madras High Court

The Madras High Court has held that a GST deficiency memo cannot be issued merely because a refund application is time-barred, as such a memo is meant to address a remediable defect in the application. Justice Senthilkumar Ramamoorthy on 1 September, disposed of a deficiency memo issued to L.S. Pacific Wood Tech Pvt. Ltd. after it sought a refund under Section 54 of the GST enactments. The Bench observed that “a deficiency memo cannot be issued on the ground that the refund application is time...

Madras High Court Quashes GST Notice To Queen Mira School, Says Assessment Must Precede Recovery

The Madras High Court on 24 September quashed a show cause notice issued to Queen Mira International School, while granting the department liberty to initiate fresh proceedings in accordance with law. Justice C. Saravanan held that the GST authorities must first assess the tax liability of an unregistered person under the prescribed statutory mechanism before proceeding against such person for tax recovery. The Bench observed: “Under the GST enactment, the Department has to first invoke the...

Trademark Registry Cannot Refuse Renewal While Mark Remains On Register: Madras High Court

The Madras High Court has directed the Trade Marks Registry to accept a renewal application for the "THOTHA" safety matches trademark, holding that the Registrar cannot turn away the registered owner of a mark that has not been removed from the register.Justice A.D. Maria Clete observed, "So long as the mark stands on the register in the petitioner's name, the Registrar cannot refuse her renewal fee. The message on the portal is not an order under the Act."R. Booma Rani runs Ayyanar Match Works...

Madras High Court Rejects Review Of ₹10 Crore Cash Credit Addition For Lack Of Due Diligence

The Madras High Court on 28 September dismissed a review application seeking to reopen a Rs. 10 crore unexplained cash credit addition against an individual engaged in civil contract business. A Division Bench comprising Chief Justice Sushrut Arvind Dharmadhikari and Justice G. Arul Murugan dismissed the review application, holding that the petitioner failed to show due diligence in producing documents relied upon as new evidence and failed to establish the identity and creditworthiness of the...

Madras High Court Acquits Woman, Says Non-Filing Of IT Return Not Wilful Without Tax Liability

The Madras High Court has acquitted a woman convicted for failing to file her income tax return, holding that the non-filing was not wilful where the Income Tax Department had failed to establish that she was liable to pay any tax.Justice Sunder Mohan observed that Section 276CC of the Income Tax Act makes the tax payable by the assessee relevant for determining whether prosecution for failure to file a return can be sustained. It held that, in the absence of any assessment or determination...

GST Appeal Pre-Deposit Has No Impact On ITC Blocking Under Rule 86A Of CGST Rules: Madras High Court

The Madras High Court has held that making the mandatory pre-deposit for filing a GST appeal does not, by itself, require unblocking of Input Tax Credit (ITC) blocked under Rule 86A of the GST Rules. Justice Senthilkumar Ramamoorthy clarified that although the pre-deposit results in a deemed stay on recovery of the balance demand under Section 107(7) of the Central Goods and Services Tax Act, 2017 (CGST Act), it does not affect a separate blocking order under Rule 86A, and disposed of a...

Patent Revocation Can Be Sought Independently Or By Counter Claim, Cannot Be Curtailed: Madras High Court

The Madras High court has ruled that a party facing a patent infringement suit can seek revocation of the patent either through a separate revocation petition or by filing a counterclaim in the infringement suit. It cannot be forced to pursue only the counter claim.“This statutory right cannot be whittled down by forcing the litigant to choose a remedy by only filing a counter claim,” Justice K. Kumaresh Babu observed. “Such statutory rights available to the litigant cannot be curtailed to the...

Secured Creditor Cannot Seek Removal Of Disclosed Encumbrances Without Settling Dues: Madras High Court

The Madras High Court has held that priority given to secured creditors over government dues under the SARFAESI Act does not allow a bank or auction purchaser to seek removal of known encumbrances without complying with Rules 9(6) to 9(10) of the Security Interest (Enforcement) Rules, 2002.Rule 9(6) deals with confirmation of the sale and issuance of the sale certificate, while Rule 9(10) prescribes the contents/ form of the sale certificate, including the details of known encumbrances.A coram...

Madras High Court Refuses To Restrain Worldwide Release Of Hindi 'Drishyam 3,' Finds Remake Rights Disputed

The Madras High Court has recently refused to restrain the worldwide release and exploitation of the Hindi remake of Malayalam film Drishyam 3, starring Ajay Devgn. It held that Rajkumar Theatres had not clearly established that it continued to hold an exclusive or joint copyright in the Hindi remake rights.Justice K. Govindarajan Thilakavadi dismissed Rajkumar Theatres' application on October 1, 2026. The company had sought interim protection against the film's release pending...