CGST Rules Prescribing Time-Bound Submission Of Declaration Under TRAN-1 To Claim Transitional Credit Not Directory But Mandatory: Rajasthan HC

The Rajasthan High Court has held that Rules prescribing the 'time and manner' for claiming transitional credit, in addition to the statutory procedure provided under Section 140 of the Central Goods and Services Tax Act 2017, are mandatory in nature. A division bench of Chief Justice Manindra Mohan Shrivastava and Justice Munnuri Laxman thus held that prescriptions under Section 117 of CGST Rules are mandatory in nature, and non-compliance thereof would lead to rejection of a...

Interpretation Of Contractual Stipulations Must Be Done To Give Full Effect To Arbitration Agreement: Rajasthan High Court

The Rajasthan High Court Bench of Justice Sudesh Bansal has held that it is a well-established principle of law if there is any contractual stipulation between the parties which under-mines the scope of the arbitration clause. Then, the same will be given an interpretation in the manner which gives full effect to the arbitration agreement between the parties. Brief Facts: The dispute arises with respect to a purchase order for supply of certain drugs to the respondent for the sum...

Department Failed To Prove Non-Existence Of Firms: Rajasthan High Court Grants Bail To Assessee Charged For Issuing Fake Invoices

The Rajasthan High Court granted bail to the assessee charged for issuing fake invoices to the firms on the ground that the department failed to prove that these firms are not in existence and their GST registration have been cancelled. The Bench of Justice Ganesh Ram Meena observed that “……there is nothing on record that who claimed how much input tax credit on the basis of alleged fake invoices said to have been issued by the accused”. In this case, the assessee/accused...

Provisional Attachment Ceases After One Year: Rajasthan High Court Allows Assessee To Operate Bank Account

The Rajasthan High Court stated that the provisional attachment under Section 83 of the CGST Act ceases after one year and cannot be attached again without giving fresh reasons. The Division Bench, consisting of Chief Justice Manindra Mohan Shrivastava and Justice Ashutosh Kumar, was dealing with a case in which the assessee challenged the department's attachment of their bank account on the grounds that, according to Section 83(2) of the CGST Act, the provisional attachment of a bank...

Unless Appointment Of Arbitrator Under Arbitration Clause Is Ex-Facie Valid, Jurisdiction Of Court U/S 11(6) Cannot Be Barred: Rajasthan HC

The Rajasthan High Court bench of Justice Sudesh Bansal affirmed that unless the appointment of the arbitrator is ex facie valid and such appointment satisfies the Court exercising jurisdiction under Section 11(6) of the Arbitration Act, acceptance of such appointment as a fait accompli to debar the jurisdiction under Section 11(6) cannot be countenanced in law. Brief Facts Instant Arbitration Application has been filed under Section 11(5) and (6) of the Arbitration and Conciliation...

Referral Court Has Limited Role U/S 11 Of Arbitration Act To Verify Existence Of Arbitration Agreement: Rajasthan High Court

The Rajasthan High Court bench of Justice Sudesh Bansal affirmed that the scope of arbitration application, in view of Section 11(6A) of the Arbitration Act, 1996 is confined and limited to the extent of examining the existence of arbitration agreement between the parties for resolution of dispute. Brief Facts Applicant has filed instant arbitration application under Section 11 of the Arbitration and Conciliation Act, 1996 (hereinafter for short "the A&C Act, 1996"), seeking...

Rajasthan High Court Holds Arbitral Award To Be Patently Illegal Due To Concealment Of Material Facts, Violation Of HC Order

The Rajasthan High Court Bench of Justice Pankaj Bhandari and Justice Praveer Bhatnagar has held that it was the bounden duty of the respondent to apprise the Arbitral Tribunal about the dismissal of the writ petition. Non-disclosure of the same, tantamount to grave misconduct on part of the respondent. Additionally, the court observed that the use of the word 'however' does not mean that the decision that Steering Group had no jurisdiction to extend the concession period becomes...

Prior To 2015 Amendment Act, Non-Disclosure Of Information Per Se Not A Ground To Incur Disqualification U/S 12 Of Arbitration Act: Rajasthan High Court

The Rajasthan High Court Bench of Justices Pushpendra Singh Bhati and Munnuri Laxman held that under section 12 of the Arbitration Act after the amendment act of 2015, there is a specific reference of ineligibility in the circumstances referred under the Seventh Schedule. This means per se there is an ineligibility if there exists any circumstance, which is specifically referred to in the Seventh Schedule. Such a per se ineligibility, which has been statutorily recognized under the amended...

Due Date For Employer To Deposit Employee's Contribution To PF Not Governed By S.43B Income Tax Act: Rajasthan HC Reiterates

The Rajasthan High Court has reiterated that share of the employee in the provident fund deducted by the employer, has to be deposited as per the due date fixed by the EPF Act and ESI Act, and not as per Section 43B of the Income Tax Act, 1961. The Scheme framed under Employees' Provident Funds and Miscellaneous Provisions Act, 1952 (EPF Act) provides that employee's contribution shall be deposited with the Central government “within fifteen days of the close of every month”. ...

Failure To Name Arbitrator In Legal Notice Does Not Invalidate Arbitration Invocation: Rajasthan High Court

The Rajasthan High Court bench comprising Dr. Justice Nupur Bhati has held that the invocation of an arbitration clause, which required the Applicant to name an Arbitrator, is valid under Section 11 of the Arbitration and Conciliation Act, 1996, even without naming an arbitrator in the legal notice, as long as the existence of an arbitration agreement is prima facie established. The Court reiterated the principle of minimal judicial interference in arbitration matters. Facts: On...