Central, State GST Officers Can Exercise Cross-Empowerment Powers Without Separate Notification: Madras High Court

The Madras High Court has ruled that Central and State GST officers can exercise cross-empowerment under Section 6 of the Central Goods and Services Tax Act even without a separate government notification. The notification is required only when the government wants to impose conditions on the exercise of those powers, the court observed.A Division Bench of Justice Anita Sumanth and Justice S. Raveekumar was dealing with a batch of 22 writ appeals. Sixteen were filed by State GST authorities and...

Madras High Court Sets Aside Bank Guarantee Condition For Provisional Release Of ASC Impex Goods

The Madras High Court on 18 September set aside a bank guarantee condition imposed for provisional release of imported Polyester Woven Fabric with PVC Coating detained from ASC Impex over a classification dispute. Justice Hemant Chandangoudar directed Customs to release the goods on payment of applicable duty and execution of a personal bond for the differential duty. The Bench held: “The purpose of provisional release is to ensure that the goods are not unnecessarily detained during the...

Madras High Court Permits Mother, Minor Daughter To Seek Return Of Gold Jewellery Detained At Trichy Airport

The Madurai Bench of the Madras High Court has allowed a mother and her minor daughter to approach the Customs authorities for the return of gold jewellery detained at Trichy Airport.The Court directed them to submit an application before the Customs authorities seeking return of the jewellery.Justice C. Saravanan passed the order while disposing of petitions filed by the mother and daughter challenging the detention of gold jewellery weighing 22.20 grams and 30.50 grams, valued at ₹2.89...

Madras High Court Directs Registry Not To Register Article 226 Pleas Against DRT, DRAT Orders

The Madras High Court has directed its Registry not to register petitions under Article 226 of the Constitution challenging orders passed by the Debts Recovery Tribunal (DRT) or Debt Recovery Appellate Tribunal (DRAT). A Bench of Chief Justice Sushrut Arvind Dharmadhikari and Justice G. Arul Murugan permitted petitioner R. Ravi to withdraw his petition and dismissed it as withdrawn. The judges stated: “Registrar Judicial is directed to instruct the Registry not to register petition under...

Madras High Court Quashes ₹20 Lakh Penalty On Customs Broker, Finds No Proof Of Collusion

The Madras High Court on 17 September set aside the Rs. 20 lakh penalty imposed on Newport Shipping and Logistics, holding that the material relied upon by the Customs authorities did not establish the broker's knowledge, conscious involvement or collusion in the attempted export of prohibited bull/ox meat. Justice Hemant Chandangoudar observed that a Customs Broker cannot be held liable for abetment of the attempted export of prohibited goods merely on the basis of routine activities such as...

Stay Period Must Be Excluded Before Testing TOLA Extension To Assessment Limitation: Madras High Court

On 23 September, the Madras High Court held that the period during which assessment proceedings remain stayed by a court must be excluded while computing the limitation period before determining whether an extension under the Taxation and Other Laws (Relaxation and Amendment of Certain Provisions) Act, 2020 (TOLA) is available. A Division Bench comprising Chief Justice Sushrut Arvind Dharmadhikari and Justice G. Arul Murugan held that the limitation period under Section 153B of the Income Tax...

Madras High Court Says It Cannot “Bow Down” To NPA Threat, Upholds Attachment Against SEPC, Twarit

On 21 September, the Madras High Court dismissed SEPC Limited's plea to recall or keep in abeyance the attachment of Rs. 154.63 crore in trade receivables during enforcement of a foreign arbitral award against SEPC and Twarit Consultancy Services Private Limited. Justice K. Kumaresh Babu refused to lift or keep the attachment in abeyance, holding that the Court could not “bow down” to the argument that its continuation could affect the companies' business or lead to their assets being...

Madras High Court Enforces ₹13.31 Crore Award Against LIBRA Productions After Challenge Period Ends

The Madras High Court on 17 September allowed Madhav Media Pvt. Ltd.'s execution petition seeking the arrest of LIBRA Productions Pvt. Ltd. for enforcement of a Rs. 13.31 crore arbitral award. Justice K. Kumaresh Babu held that once the limitation period for challenging an arbitral award expires, the award becomes final and enforceable between the parties, and a party cannot resist enforcement by subsequently questioning the arbitrator's appointment. The Bench observed:“In such an event, the...

Madras High Court Dismisses 'Dr. WASH' Infringement Suit Over 'Dr. Bright' Soap, Says Packaging Distinct

On 21 September, the Madras High Court dismissed a trademark infringement and passing off suit filed by Ashique Exports against Koyenco Soaps and Detergents over its “Dr. Bright” washing soap, holding that the rival product's packaging was not deceptively similar to Ashique's “Dr. WASH” brand. Justice K. Kumaresh Babu also dismissed Koyenco's separate rectification petition seeking cancellation of Ashique's “Dr. WASH” trademark registration, finding that the disclaimer relied upon by Koyenco...

Pendency Of Customs Adjudication Process Cannot Justify Provisional Attachment Beyond 12 Months: Madras High Court

The Madras High Court has directed the defreezing of a bullion account belonging to a Chennai-based jewellery exporter.It held that a provisional attachment of a bank account under Section 110(5) of the Customs Act cannot continue beyond the maximum statutory period of 12 months.Justice Hemant Chandangoudar passed the order on a plea filed by Dhruv Jewellers, challenging a communication dated August 4, 2022, issued by the Directorate of Revenue Intelligence (DRI) to the bank directing it to...

Madras High Court Grants GRB Dairy Foods Leave To Sue Rival Ghee Brand Over Disparaging Instagram Reel

The Madras High Court has granted GRB Dairy Foods leave to file a suit against Sri Lakshmi Industries, the company behind "NG Ghee," over an Instagram reel that GRB says makes false and disparaging statements about its GRB-brand ghee.Justice K. Govindarajan Thilakavadi passed the order on September 17.GRB Dairy Foods manufactures and markets food products, including ghee, under the "GRB" brand, and claims to have built substantial goodwill over several decades of business. Sri Lakshmi...

Deficit Stamp Duty, Interest Demand Must Be Raised Within Reasonable Time: Madras High Court

The Madras High Court on 7 September held that a demand for deficit stamp duty and interest must be raised within a reasonable period, while clarifying that proceedings to determine deficit stamp duty need only be initiated within five years of registration. A Division Bench of Justices Abdul Quddhose and R. Rajesh Vivekananthan dismissed an appeal filed by the Special Deputy Collector (Stamps) and upheld the direction to release two documents presented for registration by K.K.V. Seetharaman...