Taxpayer's Assignment To State Tax Administration Doesn't Bar DGGI's Pan-India Jurisdiction: Delhi High Court

The Delhi High Court has reiterated that merely because a taxpayer is administratively assigned to the State tax administration, it does not bar the Directorate General of Goods and Services Tax Intelligence (DGGI) from exercising its pan-India jurisdiction to investigate alleged GST evasion.The Division Bench of Justices Anil Kshetarpal and Shail Jain made the observation while dealing with a batch of petitions filed by a real estate company which has GST registrations in Karnataka, Tamil Nadu...

Karnataka High Court Sets Aside ₹13.08 Crore Award To L&T In Bengaluru Metro Contract Dispute

The Karnataka High Court has recently set aside parts (around ₹13.08 Crore) of an arbitral award arising from a ₹303.29 crore Bengaluru Metro construction contract between Larsen & Toubro Limited (L&T) and Bangalore Metro Rail Corporation Limited (BMRCL).The court found shortcomings in the tribunal's treatment of claims relating to reduced parapet quantities, revised rates for 18 delayed pier locations and unpaid reinforcement quantities. It also set aside the tribunal's finding on...

Income Tax Penalty On Reduced Expenditure Claim Under APA Contrary To Act, Unsustainable: Bombay High Court

The Bombay High Court has held that imposing an income tax penalty on account of a reduction in an expenditure claim pursuant to a position settled under an Advance Pricing Agreement (APA) is contrary to the scheme of the Income-tax Act and cannot be sustained.A division bench of Justice B.P. Colabawalla and Justice Farhan P. Dubash observed that the APA framework, introduced to reduce tax litigation, would be rendered ineffective if consequential penalties could be imposed after an expenditure...

Delhi High Court Upholds GST Circular Allowing Common Adjudication Of Composite SCNs Based On Highest Demand

The Delhi High Court has upheld the validity of a GST circular prescribing the 'highest amount of demand' criterion for selecting a Common Adjudicating Authority where a composite show-cause notice is issued to multiple noticees falling under different jurisdictions.The Division Bench of Justices Anil Kshetarpal and Shail Jain held that the circular does not confer any fresh jurisdiction on an officer. Rather, it merely provides an administrative mechanism for selecting, from among officers who...

GST Refund Cannot Be Rejected Merely Because Department Plans To Challenge Appellate Order: Telangana High Court

The Telangana High Court has recently ruled that a GST refund authority cannot reopen an ITC dispute already decided by an appellate authority merely because the department proposes to challenge that order. An appellate order remains operative unless it is stayed, modified, or set aside in accordance with law. If the department seeks to withhold the refund while further proceedings are pending, it must comply with the requirements of Section 54(11) of the CGST Act.A Division Bench of Chief...

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...

Mere Forgery In Loan Papers Can't Implicate Bank Manager Without Criminal Intent: Telangana High Court

The Telangana High Court on 17 September held that merely processing or forwarding loan proposals cannot, by itself, establish criminal conspiracy or other offences against a bank officer in the absence of material showing knowledge, dishonest intention or conscious participation in fraudulent transactions. A Bench of Justice N. Tukaramji quashed the criminal proceedings against Dr. V. Raja Gopal Reddy, a former Branch Manager of Indian Bank, Osmangunj Branch, Hyderabad, who was arrayed as...

Pidilite's SBR Latex Products Covered By 'Rubber' Entry, Taxable At 5%: Uttarakhand High Court

Today, the Uttarakhand High Court held that Pidilite Industries' Dr. Fixit Pidicrete URP and Dr. Fixit Super Latex, being Styrene Butadiene Rubber (SBR) Latex, fall within the term “rubber” under the Uttarakhand Value Added Tax Act and are taxable at 5%, rather than the 13.5% rate applicable to unclassified goods. A Division Bench of Chief Justice Manoj Kumar Gupta and Justice Subhash Upadhyay set aside a Commercial Tax Tribunal's judgment and restored the First Appellate Authority's order...

Advocate-Client Privilege Cannot Bar GST Search Of Advocate's Office If His Role Is Under Probe: Delhi High Court

The Delhi High Court has upheld the search conducted by the Goods and Services Tax (GST) Department at an Advocate's office, including seizure of a CPU from his cabin, holding that advocate-client privilege cannot operate as an absolute bar against investigation into the conduct of the advocate himself where there is prima facie material indicating his possible involvement in the affairs under investigation.The Division Bench of Justices Anil Kshetarpal and Shail Jain, however, clarified...

Madras High Court Sets Aside Orders Over Inzi Controls Air & Oil Filter Classification, Remands Matter

The Madras High Court on 8 September set aside appellate orders concerning the classification of air and oil filters manufactured by Inzi Controls India Limited and remanded the matter to the appellate authority for fresh consideration. A Bench of Justice Senthilkumar Ramamoorthy passed the order in a batch of petitions filed by Inzi Controls, which manufactures air and oil filters supplied to automobile companies. The company had classified the filters under Chapter 84, while the Tax...

Deficit Stamp Duty Demand Must Be Raised Within 3 Years Of Instrument Registration: Madras High Court

The Madras High Court has ruled that the three-year limitation for recovering deficit stamp duty runs from the date a document is registered and not from the date the Registration Department initiates proceedings.A Division Bench of Justice Abdul Quddhose and Justice R. Rajesh Vivekananthan observed:“Therefore, as per second proviso to Section 33-A of the Indian Stamp Act, for the purpose of calculating limitation, the starting date for calculating the period of limitation, is the date of...

Karnataka High Court Sets Aside ₹91 Lakh GST Demand Against King Enterprise Over Ex Parte Proceedings

The Karnataka High Court on 11 September set aside a GST tax and penalty demand of Rs. 91,00,384 against King Enterprise, finding that the proceedings had been completed ex parte without affording the business an effective opportunity to present its case. Justice T.M. Nadaf set aside the tax and summary orders against the company and remanded the matter to the tax authority for fresh consideration. The Bench observed: “The petitioner should have been more circumspect and cautious while...