Failure To Frame Counter Claim As An Additional Issue When It Forms Part Of Pleadings Is Patently Illegal: Delhi High Court

The Delhi High Court Bench of Justice Jasmeet Singh has observed that once the reasons/basis for a counter claim, the amount and computation of the counter claim had been made in the Reply, it does not matter if there is no specific prayer in the prayer clause. In such a scenario, an arbitral award refusing to frame an issue for the counter claim would be patently illegal and would...

[GST] Reverse Charge Mechanism Notifications Denying ITC To Service Providers Are Constitutionally Valid: Bombay High Court

The Bombay High Court held that RCM notifications denying ITC credit to service providers are constitutionally valid and does not violate Article 14 and 19(1)(g) of the Constitution. The bench opined that in case of RCM, the person receiving the services, i.e. the recipient pays the tax and can claim credit of the same. The provider of service is exempt from paying tax. Merely...

Income Tax | Sale Proceeds Of Vintage Cars Taxable Unless Assessee Proves That Car Was Used As Personal Asset: Bombay High Court

The Bombay High Court held that sale proceeds of vintage car taxable unless the assessee proves that the car was used as a personal asset. Chief Justice Alok Aradhe and Justice Sandeep V. Marne stated that the capability of a car for personal use would not ipso facto lead to automatic presumption that every car would be personal effects for being excluded from capital assets of...

Bank Guarantee Which Expired Almost Ten Years Before CIRP Was Initiated, Cannot Be Enforced: Bombay High Court

The Bombay High Court stated that expired bank guarantee can't be enforced post CIRP (corporate insolvency resolution process). Justices M.S. Sonak and Jitendra Jain stated that, “The argument that a personal guarantee survives the CIRP does not apply in the case because the guarantee had expired even before the CIRP. During the validity period of the guarantee, admittedly, no...

Insolvency Resolution Professional Is Public Servant, Sanction Needed To Prosecute Him Under Prevention Of Corruption Act: Madras High Court

The Madras High Court has recently directed the Insolvency and Bankruptcy Board of India to consider granting sanction for prosecuting a Resolution Professional for allegedly mismanaging funds of a company during a resolution process. Justice Bharatha Chakravarthy noted that the resolution professional performed duties in connection with the administration of justice, was a person...

Interim Injunction U/S 9 Of Arbitration Act Cannot Be Granted To Prevent Convening Of Meeting For Removal Of Director: Delhi High Court

The Delhi High Court bench of Justices Anil Kshetarpal and Harish Vaidyanathan Shankar has observed that an interim injunction under section 9, Arbitration and Conciliation Act, 1996 (“ACA”) cannot be granted to prevent convening of extraordinary general meeting for removal of a director as it effectively amounts to grant of final relief and impinges upon statutory powers conferred to...

Limitation To Claim GST Refund Begins From Date Of Correct Tax Payment: Patna High Court

The Patna High Court held that limitation for GST refund in wrong head ceases computed from correct payment date. Justices Rajeev Ranjan Prasad and Shailendra Singh after reading Section 77 of the CGST Act, 2017 read with Section 19 of the IGST Act opined that the relevant date for counting the period of limitation would start from the date when the assessee had deposited the tax...

Timeline Prescribed For Filing Statement Of Defence Under Rule 18(3) Of Indian Council Of Arbitration Rules Is Directory In Nature: Delhi HC

The Delhi High Court bench of Justice Manoj Jain has held that the timeline prescribed under Indian Council of Arbitration Rules, 2024 for filing a Statement of Defence by the respondent is directory in nature and can be extended by the Arbitral Tribunal if a sufficient cause is established. The Petitioner challenges an order passed by the Arbitral Tribunal by which it declined to...

Export Incentives Can't Be Denied For Inadvertent Error In Shipping Bill: Karnataka High Court

The Karnataka High Court held that export incentives can't be denied for inadvertent error in shipping bill. The bench opined that …..there are situations where the assessee by inadvertence or even otherwise has uploaded certificate/forms or returns which contains some errors which would require correction. The said correction or amendment cannot be denied on the basis...

No Sales Tax On HDPE Bags Used To Pack Cement When Sold Separately: Bombay High Court

The Bombay High Court stated that no sales tax can be levied on HDPE (High-Density Polyethylene) bags at cement rate when sold separately. Justices M.S. Sonak and Jitendra Jain were addressing the issue of whether there is an express and independent contract on the sale of HDPE bags in which cement is packed. “HDPE bags used to pack the cement were a distinct commodity with its...

[S.169 CGST Act] Service On Registered Email Is Sufficient For Calculating Limitation Period: Allahabad High Court

The Allahabad High Court has held that under Section 169 of the Central Goods and Service Tax Act, 2017 service on registered email is sufficient service for the purpose of limitation. It held that holding that service was to be made by more than one modes would be absurd and defeat the purpose of the provision. The bench of Justice Shekhar B. Saraf and Justice Praveen Kumar...

Post-Termination Restrictive Covenants In Employment Contracts Are Void U/S 27 Of Contract Act: Delhi High Court

The Delhi High Court bench of Justice Jasmeet Singh has held that post-service restrictive covenants in employment contracts, which operate after cessation of employment, are void and are not enforceable under Section 27 of the Indian Contract Act, 1872 (“Contract Act”) and violate Article 19(1)(g) of the Constitution. The court vacated the injunction granted in an...