SARFAESI Charge Created Before GST Charge Takes Precedence Over It: Karnataka High Court

'If a claim is made under the IBC Act and there is no claim under the SARFAESI Act, RDB Act, or GST Act, the claim under the IBC Act can be implemented without issue. Similarly, if a claim is made under the GST Act and there are no claims under the SARFAESI Act, RDB Act, or IBC Act, the claim under the GST Act can be executed without difficulty'

Mere Change In Arbitral Rules Does Not Frustrate Arbitration Agreement: Karnataka High Court

The Karnataka High Court Division Bench of Chief Justice Vibhu Bakru and Justice C.M. Joshi has set aside interim injunctions granted by Commercial Court by which it restrained L & T Infra Investment Partners Advisory Pvt. Ltd. (“L&T Infra”) from proceeding with arbitration under the London Court of International Arbitration (LCIA) Rules against Bhoruka Power Corporation Limited (“BPCL”) and its promoter shareholders. The Court held that when the parties have expressly chosen...

Karnataka High Court Directs CBDT To Extend Tax Audit Due Date To 31st October

The Karnataka High Court today directed the Central Board of Direct Taxes to extend the due date for filing Tax Audit Reports under Section 44AB of the Income Tax Act, 1961, by one month to 31st October, 2025.For reference: “Section 44AB of the Income Tax Act, 1961 mandates compulsory audit of accounts for businesses and professionals above a specified turnover or gross receipts threshold.”The Court took into consideration the difficulties faced and directed the CBDT to extend the due...

Karnataka High Court Seeks ED's Response On Plea For Interim Release Of Congress MLA Arrested In Alleged Illegal Betting Case

The Karnataka High Court on Wednesday (September 24) asked the Enforcement Directorate to get instructions on a plea filed by wife of Congress MLA K.C Veerendra arrested in alleged illegal betting case, seeking interim release from custody for 2-3 days on account on Dusshera festival. Justice MI Arun was hearing petitioner R D Chaitra's plea seeking to declare his arrest as illegal, arbitrary and violative of his fundamental rights under Article 19 & 21 and to release him. After hearing...

Failure To Mention Correct Value In GSTR-5A Filing Is Not Suppression U/S 74 CGST Act: Karnataka High Court

The Karnataka High Court has stated that a failure to mention the correct value in returns or apply the correct GST rate is not suppression under section 74 of the Central Goods and Services Tax (CGST). Justice S.R. Krishna Kumar stated that "...though the revenue alleged in the impugned SCN that the assessee failed to mention the value of services correctly in the GSTR-5A returns and apply the correct GST rate on the consideration received, the mere omission to mention the value...

S. 67 CGST Act | Officer Below Rank Of Joint Commissioner Cannot Inspect Assessee's Premises Without Authorisation: Karnataka High Court

The Karnataka High Court has held that an officer below the rank of Joint Commissioner cannot, by himself, inspect the premises of the assessee without authorisation under Section 67 of the Central Goods and Services Tax. The bench further stated that there is no requirement to provide a copy of the authorisation and details of the order passed by the Joint Commissioner, but the delegate who inspects or confiscates any document or goods would be required to provide the details of...

[GST Rate-Cuts] Karnataka High Court Refuses Ex-Parte Stay On Guideline Mandating Revised MRP Stickers On Existing Stock

The Karnataka High Court on Monday refused to pass an ex-parte order staying the guideline dated September 9 issued by the Union of India mandating the declaration of revised retail sale price (MRP), on unsold stock manufactured/packed/imported, which would be effective from September 22, in addition to the existing retail sale price (MRP).Justice B M Shyam Prasad refused the ex parte interim order on the petition filed by Kitchen and Home Products Company, TTK Prestige Limited. The company has...

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 of the technological system which has been introduced by the Department to contend that the software does not allow...

Seat Of Arbitration Retains Jurisdiction Over Execution Proceedings Irrespective Of Location Of Judgment Debtor's Assets: Karnataka High Court

The Karnataka High Court bench of Justice M. Nagaprasanna has held that the seat court of an arbitration always retains jurisdiction over execution proceedings irrespective of where the award-debtor is located or has its assets, even when another execution petition is pending in another jurisdiction. Brief Facts The petitioner and the respondent company had entered into an exclusive consultancy agreement. Under the agreement, the petitioner was appointed as Exclusive Consultant and...

Defaulting Director Can Be Disqualified From All Companies, S.164 Is Reasonable Restriction To Article 19(1)(g): Karnataka High Court

The Karnataka High Court has held that under Section 164 of the Companies Act 2013, an individual can be disqualified from being a Director in a company against which allegations are made, as well as regarding any other company in which the individual is a director against whom no allegations are made.The petitioner directors had argued that they had been disqualified from the company–M/s Vihaan, as regards which allegations have been made, but also as regards any other company, and that they...

Karnataka High Court Directs GST Department To Establish Tracking System For Notices Sent To Taxpayers Via Email

The Karnataka High Court has directed the GST department to establish tracking system for notices sent to the taxpayers via email Justice Suraj Govindaraj stated that it is required for the department to establish a system to ascertain delivery of e-mail notices, when the said e-mail was opened and when the email was read. In this case, the assessee/petitioner has challenged the adjudication orders under 73 of CGST Act, 2017 for the period April 2020- March 2021. The assessee ...

IGST Not Leviable On Secondment Of Employee From Overseas Group Companies: Karnataka High Court

The Karnataka High Court held that IGST is not leviable on secondment arrangement with overseas entities. Justice Sachin Shankar Magadum was addressing the issue of whether a secondment constitutes a taxable supply of manpower services or a non-taxable employer-employee relationship exempt under Schedule III of the CGST Act. In this case, the during the period from July 2017 to March 2023, the assessee avers that employees of its overseas group companies were seconded to work in ...