Karnataka High Court Seeks State's Response To PVR INOX Plea Against 2% Cinema Ticket Cess

The Karnataka High Court has sought the State government's response to a plea challenging the 2% cess imposed on cinema tickets under the Karnataka Cine and Cultural Activists (Welfare) Act, 2024.A bench of Justice H.T. Narendra Prasad directed the State to take notice and observed that the issue concerning the applicability of the relevant provisions would be considered after examining whether the 2024 Act has formally come into force.The matter is listed for further hearing tomorrow. The...

TPO Cannot Reject Comparables Merely To Adopt Department's Preferred Set: Karnataka High Court

The Karnataka High Court on 28 August held that a Transfer Pricing Officer (TPO) cannot reject comparable companies selected by a taxpayer merely to replace them with a standard set of comparables preferred by the Income Tax Department, holding that the selection or exclusion of comparables must satisfy the requirements under the Income Tax Act and Rule 10B of the Income Tax Rules. A Division Bench of Justices S.G. Pandit and K.V. Aravind allowed the batch of transfer pricing appeals, including...

30-Day Limit For Correcting Award Is Inflexible, Applies To NH Act Arbitration: Karnataka High Court

The Karnataka High Court has held that the 30-day limit for seeking correction or interpretation of an arbitral award cannot be extended, and a belated application cannot revive the time limit for challenging the award, including in arbitrations under the National Highways Act, 1956.A Division Bench of Chief Justice Vibhu Bakhru and Justice K.S. Hemalekha dismissed an appeal filed by the National Highways Authority of India (NHAI) against the 13 February 2026 order of the Principal District and...

Karnataka High Court Directs Authorities To Decide Contractor's ₹2.99 Crore GST Claims

The Karnataka High Court on 29 August directed government authorities to consider and decide a civil contractor's claim for payment of Goods and Services Tax (GST) on road construction and improvement works. Justice Sachin Shankar Magadum noted that government authorities must examine a civil contractor's claim for payment of GST on road construction and improvement works by scrutinising the tender conditions, invoices, bills and payments to determine whether the GST component had already been...

Karnataka High Court Upholds Adjustment Of Excess Excise Duty Payment Towards Dues Of Another Firm

The Karnataka High Court has upheld the adjustment of an excess excise duty payment made towards the dues of one firm against the outstanding liability of another firm under the State's Karasamadhana-IV Scheme.A Division Bench comprising Justice Lalitha Kanneganti and Justice K.S. Hemalekha dismissed the State's appeal against the order of the Single Judge directing the authorities to adjust the excess amount of ₹43.23 lakh paid towards the liability of Nagalingaswami Trading Company (NTC)...

Future Commercial Use Cannot Determine Stamp Duty Value: Karnataka High Court

Recently, the Karnataka High Court quashed orders demanding differential stamp duty on a 37-acre land parcel in Hassan district, holding that authorities cannot determine the value of land merely on the basis of an alleged intention to use it for resort or commercial purposes, unless such intended use is established through relevant documents.Justice M.G.S. Kamal allowed a writ petition filed by Disthi Vishal Pvt. Ltd. and another, challenging orders passed by the District Registrar and the...

Karnataka High Court Allows Villa Buyer To Place RTI Records In Award Challenge Over Occupancy Certificate

The Karnataka High Court on 25 August partly allowed villa buyer A.R. Krishnamani's petition and set aside an order of the Bengaluru Additional City Civil and Sessions Judge refusing to take on record Right to Information (RTI) replies and other official documents concerning a disputed occupancy certificate. Justice Suraj Govindaraj held that a party challenging an arbitral award on the ground of fraud can produce additional evidence before a Court exercising jurisdiction under Section 34 of...

Karnataka High Court Restrains Sale Of 386.541 MT Cashews, Says Arbitration Orders Bind Strangers

On 27 August, the Karnataka High Court granted interim protection to UAE-based cashew trading company COAF FZE over 386.541 metric tonnes of raw cashew nuts lying in 15 containers at New Mangalore Port, restraining UAE-based supplier Avanikailani Commodities LLC, Indian cashew trader Sindhu Cashew India Pvt. Ltd. and two individuals claiming rights over the cargo from selling, transferring, diverting or otherwise dealing with it.Justice M.G.S. Kamal held that an interim order preserving the...

Karnataka High Court Upholds Entry Tax Levy On Hydraulic Oil Dismisses Wipro's Challenge

The Karnataka High Court on 11 August dismissed seven revision petitions filed by Wipro Enterprises Pvt. Ltd. challenging the levy of entry tax on Hydraulic Oil brought into Karnataka for use in the manufacture of Hydraulic Cylinders. A Division Bench comprising Justices S.G. Pandit and K. Manmadha Rao upheld the Karnataka Appellate Tribunal's orders sustaining the levy under the Karnataka Tax on Entry of Goods Act, 1979 (KTEG Act). The judges held: “..the questions as to whether Hydraulic Oil...

GST Authorities Must Sell Seized Goods After Due Notice If Owner Does Not Appeal: Karnataka High Court

The Karnataka High Court held that Goods and Services Tax authorities must proceed with the sale of seized goods under Section 129(6) of the Central Goods and Services Tax Act, 2017 and Karnataka State Goods and Services Tax Act, 2017 after issuing due notice if the owner of the goods does not avail the available appellate remedy. Justice B.M. Shyam Prasad disposed of a writ petition filed by TPJ Carriers, a transporter, and directed the State GST authorities to bring the seized goods to sale...

RERA Recovery Proceedings Not Automatically Illegal During CIRP: Karnataka High Court

The Karnataka High Court on 11 August held that the mere pendency of the Corporate Insolvency Resolution Process (CIRP) against a developer does not automatically render recovery proceedings initiated under another statute illegal. Justice Suraj Govindaraj dismissed the writ petition filed by M Govind Reddy and M Yashodamma challenging a public auction notice issued to enforce a Recovery Certificate under the Real Estate (Regulation and Development) Act, 2016 (RERA Act). Further, questions...

Karnataka High Court Sets Aside Advance Ruling On Kitchen Exhaust Hoods In Halton India's Case

The Karnataka High Court on 6 August held that the Customs Authority for Advance Rulings must examine material produced by an importer to determine whether kitchen exhaust hoods contain fans before deciding their tariff classification. A Division Bench comprising Justices S.G. Pandit and K. Manmadha Rao set aside the Authority's order dated 25 March 2026 after finding that material submitted by Halton India Pvt. Ltd. to establish that its imported exhaust hoods contain fans had not been...