Patna High Court Upholds CENVAT Credit On Captive Power Plant Despite Surplus Power Supply

The Patna High Court on 24 July dismissed the Central Excise Department's appeal against Harinagar Sugar Mills Ltd. and upheld the Customs, Excise and Service Tax Appellate Tribunal's (CESTAT) order allowing the company to claim CENVAT credit on capital goods, input services and iron and steel items used in its manufacturing operations. A Division Bench of Justices Bibek Chaudhuri and Rana Vikram Singh held that the benefit cannot be denied merely because part of the electricity generated in...

Patna High Court Imposes ₹25,000 Costs On Taxpayer For Challenging GST Undertaking After Accepting Its Benefits

The Patna High Court, in the facts of the case, has held that a taxpayer who voluntarily furnishes an undertaking to obtain relief from GST authorities cannot subsequently challenge its validity after accepting the benefits flowing from it. It dismissed the writ petition filed by Umagaurav Private Limited and imposed costs of ₹25,000.A division bench of Justice Rajeev Ranjan Prasad and Justice Kumar Manish held that the petitioner, having secured the removal of restrictions on its bank account...

Patna High Court Quashes Mechanical GST Registration Cancellation, Imposes ₹15,000 Costs On Department

The Patna High Court on 17 July held that GST authorities cannot cancel GST registration or reject a revocation application without complying with the statutory safeguards mandated under law, ruling that orders passed mechanically in violation of the principles of natural justice are unsustainable. A Division Bench of Justices Rajeev Ranjan Prasad and Sunil Dutta Mishra allowed the writ petition filed by Munna Chaudhary, set aside the GST registration cancellation order, the order rejecting the...

Patna High Court Refers Nalanda Cafeteria Dispute To Arbitration, Holds Conduct Can Establish Agreement

The Patna High Court on 18 June allowed an appeal filed by the Bihar State Tourism Development Corporation Ltd. against the contractor operating Nalanda Cafeteria, set aside the order of the Additional District Judge rejecting a Section 8 application, and directed reference of the dispute to arbitration under Clause 40 of the allotment letter.Justice Khatim Reza held that conduct of parties such as acceptance of an allotment letter, payment of licence fees and continued commercial operation can...

Correction Of Contradictory Operative Direction Does Not Amount To Review Of Award: Patna High Court

The Patna High Court on 18 June held that an arbitral tribunal may correct an apparent contradiction or computation error under Section 33 of the Arbitration and Conciliation Act, 1996, where the correction aligns the operative portion of the award with the tribunal's findings and does not amount to a review on merits. A Division Bench of Justices Rajeev Ranjan Prasad and Kumar Manish dismissed the appeal filed by Ganesh Foundry and Castings Limited and upheld the additional arbitral award as...

Patna HC Sets Aside ₹25 Lakh Arbitral Compensation Against Bihar State Food Corporation For No Proof of Loss

The Patna High Court has partly set aside an arbitral award against Bihar State Food and Civil Supplies Corporation Ltd, holding that compensation awarded without evidence of actual loss or injury could not be sustained. A Division Bench of Justice Mohit Kumar Shah and Justice Arun Kumar Jha held: “Thus, there is no proof much less any evidence whatsoever, on the records of the arbitral proceedings regarding the claimant-respondent having suffered any loss or injury, hence the award of...

IOCL's Terminal Facilities For Crude Oil Storage At Barauni Attract Service Tax: Patna High Court

The Patna High Court has held that terminal facilities used by IOCL's Barauni Refinery for storing crude oil before onward transportation constituted an independent taxable service liable to service tax, and were not merely incidental to pipeline transportation. The court ruled, “If MOU creates a provision of a separate charge for 'discharge facility' or 'terminal facilities' or 'storing of crude oil' before entering into next phase of transportation for Bongaigaon Refinery then, it cannot be...

ECIR Cannot Be Quashed At Threshold As It Is An Internal ED Document: Patna High Court

The Patna High Court on 18 May held that an Enforcement Case Information Report (ECIR) under the Prevention of Money Laundering Act, 2002 (PMLA) is an internal document of the Enforcement Directorate (ED) and cannot ordinarily be subjected to quashing, observing that such a plea is premature unless it translates into a prosecution complaint or other actionable proceedings. Justice Arun Kumar Jha dismissed a writ petition filed by Rishu Shree seeking to quash ECIR-13 and ECIR-14 and restrain the...

Patna HC Quashes FIR Against Prashant Kishor Over Alleged Theft Of INC's 2020 Bihar Campaign Intellectual Property

The Patna High Court has quashed an FIR against political strategist Prashant Kishor in a case over allegations that he used campaign materials claimed as intellectual property by Shashwat Gautam, a data analytics professional associated with the Indian National Congress.The court held that criminal law cannot be invoked merely by invoking the phrase “intellectual property” where the allegations do not disclose any offense. The bench further found that the material claimed by Gautam was...

Patna High Court Refuses To Quash Central Excise Show Cause Notices Against ITC Despite Delay In Adjudication

The Patna High Court has recently refused to quash multiple Central Excise show cause notices issued to ITC Limited, holding that the company could not seek quashing solely on the ground of delayed adjudication when it had not participated in hearings despite repeated opportunities. “For one reason or another, the petitioner did not participate in the hearing. In such circumstances, prima facie, we agree with the submissions of the learned counsel for the Central Excise that the delay in the...

Patna High Court Temporarily Restrains Local Company From Using 'Johnson' Mark For Paint Products

The Patna High Court has recently restrained Johnson Paints Private Limited from using the “JOHNSON” brand name, granting temporary relief to Johnson Paints Co.Setting aside a Commercial Court order that had refused an injunction, a Division Bench of Justice Rajeev Ranjan Prasad and Justice Praveen Kumar found that the lower court erred in concluding that no prima facie case of prior use or goodwill was made out. Examining the respondent's claim of rights based on a chain of assignment deeds...

DRAT Can Recall Appeal Dismissed For Pre-Deposit Non-Compliance: Patna High Court

The Patna High Court has recently held that the Debts Recovery Appellate Tribunal (DRAT), in exercise of its review powers under Section 22(2) of the Recovery of Debts and Bankruptcy Act, 1993, can recall an appeal dismissed for non-compliance with the pre-deposit requirement. "Once such dismissal falls within the category contemplated under Section 22(2)(g), the Tribunal cannot be said to be denuded of its jurisdiction to recall or set aside the same. The reasoning adopted by the learned...