Madras High Court Quashes SFIO Case Against Deloitte Partner In Subhiksha Fraud Probe

The Madras High Court on Wednesday has quashed criminal proceedings initiated by the Serious Fraud Investigation Office (SFIO) against Deloitte Haskins & Sells partner and statutory auditor M.K. Ananthanarayanan over his audit of Subhiksha Trading Services Limited (STSL). The SFIO had accused him of failing to verify the retailer's sales, purchases and related-party transactions, and of not reporting its non-compliance with prescribed accounting standards. Justice Sunder Mohan held that,...

Madras High Court Restrains Edible Oil Firm, Holds 'CYCLE' Mark Has Reputation Beyond Agarbattis

The Madras High Court has recently restrained an Erode-based edible oil manufacturer from using the trademark "CYCLE", holding that N. Ranga Rao & Sons, the maker of Cycle brand agarbathies, had established that the mark enjoys a reputation beyond incense sticks and is entitled to protection even against use on dissimilar goods.A Division Bench of Justice P. Velmurugan and Justice K. Govindarajan Thilakavadi partly allowed an appeal filed by N. Ranga Rao & Sons Private Ltd., setting...

DEPB Licences Not Eligible For ITC Under TNVAT Act Even If Classified As Goods: Madras High Court

The Madras High Court on 24 July held that dealers cannot claim Input Tax Credit (ITC) on purchase of Duty Entitlement Pass Book (DEPB) licences under the Tamil Nadu Value Added Tax (TNVAT) Act, as such licences, despite being classified as “goods”, do not meet the statutory conditions for availing credit. A Division Bench of Justices G. Jayachandran and N. Mala dismissed the writ appeals filed by P.I. Polymers and upheld the Single Judge's order denying ITC on DEPB licences, while reaffirming...

Madras High Court Sets Aside Land Compensation Award, Says Arbitrator Must Give Reasons After Remand

The Madras High Court on 22 July held that an arbitrator reconsidering a matter after remand must independently apply his mind and provide reasons for accepting or rejecting the parties' objections, as merely reproducing pleadings and submissions does not constitute a reasoned arbitral award. A Division Bench of Justices P. Velmurugan and K. Govindarajan Thilakavadi allowed appeals filed by the National Highways Authority of India (NHAI), set aside the arbitral award enhancing compensation from...

Madras High Court Quashes ₹13.48 Cr Misreporting Penalty On Ennore Tank Terminals For Vague Notice

The Madras High Court on 20 July set aside a penalty of over Rs. 13.48 crore imposed on Ennore Tank Terminals Private Limited, holding that the Income Tax Department cannot penalise a taxpayer for alleged misreporting of income unless it clearly informs the taxpayer of the basis for such allegation in the show cause notice. Justice Senthilkumar Ramamoorthy held that proceedings for misreporting of income carry serious consequences, including a penalty of 200% of the tax payable on...

CENVAT Credit Not Available On DEPB Scrip-Based Duty Payment Before 31 August 2004: Madras High Court

The Madras High Court on 23 July held that CENVAT credit cannot be claimed on additional customs duty adjusted through DEPB scrips for imports made before 31 August 2004, as such credit was available only where the duty was paid in cash. A Division Bench of Justices G. Jayachandran and N. Mala allowed the Revenue's appeal against Computer Graphics Ltd, holding that the taxpayer was not entitled to CENVAT credit on duty discharged through DEPB scrips and upholding the extended limitation period,...

Homebuyer Can't Club Distinct Disputes In One Writ, Must Approach Competent Forums: Madras High Court

The Madras High Court on 10 July held that a homebuyer cannot invoke the writ jurisdiction under Article 226 of the Constitution to combine distinct grievances arising under different statutory regimes when specialised statutory forums provide the appropriate remedy. A Bench of Chief Justice Sushrut Arvind Dharmadhikari and Justice G. Arul Murugan dismissed six writ petitions filed by homebuyer Parvez concerning the Aavisa Golf Township project, holding that disputes relating to consumer...

Madras High Court Says Parties Can't Seek Leave To File Additional Written Statements In Commercial Suits

The Madras High Court has held that a provision of the Code of Civil Procedure allowing parties to seek the court's permission to file an additional written statement after their original defence does not apply to commercial suitsThe court observed that entertaining such applications at the instance of parties would defeat the Commercial Courts Act's objective of ensuring speedy disposal of commercial disputes.“The object of the Commercial Courts Act, which is the speedy disposal of Commercial...

Madras High Court Upholds 14.5% VAT On Vestige's Food Supplements, Rejects Ayurvedic Medicine Claim

The Madras High Court on 24 July held that products purchased and sold as food supplements cannot later be classified as proprietary Ayurvedic medicines merely to claim a concessional rate of Value Added Tax (VAT). A Division Bench of Justices G. Jayachandran and N. Mala dismissed the tax revision filed by Vestige Marketing Private Limited and upheld the levy of 14.5% VAT on the products, holding that the company had purchased the goods as food supplements under the Central Sales Tax (CST)...

Madras High Court Upholds ₹2.66 Cr GST Recovery Against Former Director Of CBIGS Advertising

The Madras High Court on 7 July held that tax dues of a private company in liquidation can be recovered from its former director under Section 88(3) of the Central Goods and Services Tax (CGST) Act, 2017, unless the director proves that the non-recovery was not due to gross neglect, misfeasance or breach of duty. Justice C. Saravanan dismissed three connected writ petitions filed by CBIGS Apparels and Jewels, its partner Mrs. N. Seetha, and Yantur Manufacturing Private Limited challenging GST...

Madras High Court Grants Relief To Zee Against Apprehended Copyright Infringement Of 'Bhootam Bhayam' Film

The Madras High Court has temporarily restrained internet service providers and cable TV operators from infringing Zee Entertainment Enterprises Limited's copyright in its Marathi film Bhootam Bhayam, which was released on July 24The court observed that "irreversible injury" could occur unless apprehended unlawful broadcasts were prevented.Justice K. Kumaresh Babu passed the order on two applications filed by Zee Entertainment in a suit alleging apprehended infringement of its copyright in the...

Madras High Court Quashes ₹12.58 Cr Demand Against Pellagic Food, Upholds Advance Ruling Principles

The Madras High Court on 9 July quashed the Customs order passed against Pellagic Food Ingredients Pvt. Ltd. that raised a demand of Rs. 12.58 crore as differential customs duty, along with interest, confiscation of goods, redemption fine and penalties. A Single Judge Bench of Justice Hemant Chandangoudar held that Customs authorities should ordinarily follow the legal principles laid down in an Advance Ruling in similar cases, even though such rulings bind only the applicant who obtained them,...