Industrial Benefit Scheme Extended By State Government Can't Be Withdrawn By Electricity Department On Basis Of Audit Objection: Patna High Court

Referring to the decision of Shanta Mani Hand Made Paper Industries Vs. The State of Bihar & Ors [CWJC No. 2941 of 2010], the Patna High Court reiterated that supplementary bills which are punitive in nature, cannot be raised upon taxpayer and benefit granted by State government cannot be withdrawn based on mere audit objection.The High Court reiterated so after finding that the subsidy granted to the petitioner by the State government in the form of Industrial Incentive policy was withdrawn...

S.110 Customs Act- Failure To Disclose Reasons For Confiscating Goods 'Draconian', Violates Article 14, Renders Provisional Attachment Illegal: Patna HC

The Patna High Court has held that failure on part of the customs officer to record reasons for confiscating goods under Section 110 of Customs Act, renders the provisional attachment “illegal”.The provision empowers a customs officer to seize goods if he has 'reason to believe' that such goods are liable to confiscation under the Act, and prescribes subsequent procedure.Bench of Justices PB Bajanthri and Alok Kumar Pandey observed, “For seizure of goods, unless there are strong and compelling...

Liquidator Never Informed Of Reassessment Proceedings, Patna High Court Quashes Order

The Patna High Court has quashed the order as the liquidator was not informed of the reassessment proceedings.The bench of Chief Justice K. Vinod Chandran and Justice Partha Sarthy has observed that the liquidator should be noticed and participate in the reassessment proceedings. The notices were all issued to the email of the assessee after the liquidator was appointed, which makes it clear that the liquidator was never informed of the reassessment proceedings. The appellant/assessee is under...

AO Not Empowered To Summarily Reject Section 197 Application: Patna High Court

The Patna High Court has held that a demand pending against the assessee would not clothe the Assessing Officer with the power to summarily reject an application under Section 197 of the Income Tax Act. The bench of Chief Justice K. Vinod Chandran and Justice Partha Sarthy has observed that Section 197 only clothes the Assessing Officer with the power to satisfy himself that the total income of the recipient justifies the deduction of Income Tax at any lower rates or at a NIL rate. The...

Reference Under NHAI Act Dismissed For Default, Party Should Challenge Award Under Section 34 , Not By Writ : Patna High Court

The Bench of Justice Rajiv Roy of Patna High Court has held that a writ petition is not maintainable to challenge an order of Arbitrator dismissing reference under NHAI Act for default. It held that the aggrieved party should challenge the award under Section 34 of the Act. Facts The respondent (NHAI) had acquired the land of the petitioner after classifying it as 'Developing Land' for the construction of Chhapra-Gopalganj Highway. Disagreeing with the amount of compensation...

Differentiation Between Government Employees And Other Employees For Leave Encashment Exemption Not Violative Of Article 14: Patna High Court

The Patna High Court has held that differentiation between government employees and other employees for leave encashment exemption is neither discriminatory nor violative of Article 14 of the Constitution of India.The bench of Chief Justice K. Vinod Chandran and Justice Rajiv Roy has observed that the legislature must have the freedom to select and classify persons, properties, and income that it would tax and/or not tax. Thus, the differentiation made by the state between the employees of the...

Patna High Court Imposes Fine Of Rs. 5,000 On GST Officer For 'Forcible And Illegal Recovery' Amid Non-Functional GST Tribunal

In a recent ruling, the Patna High Court slapped a fine of Rs 5,000 on a Goods and Services Tax ( GST ) officer for forcible and illegal recovery of the full tax amount from a man waiting to avail the statutory remedy of appeal before GST tribunal which has not been made functional in Bihar. The court has directed the department to reimburse the entire collected tax within 2 weeks. The ruling was issued by a division bench led by Chief Justice K Vinod Chandran and Justice Rajiv Roy, granting...

Dispute Can't Be Referred To Arbitration In Absence Of An Arbitration Agreement Under Article 226 Of Constitution: Patna High Court

The High Court of Patna has held that no dispute can be referred to arbitration by a Court exercising powers under Article 226 of the Indian Constitution when there is no agreement between the parties.The bench of Justice Partha Sarthy held that the remedy of arbitration is the creature of a contract and the same cannot be utilised in absence of a written agreement between the parties as provided under Section 7 of the A&C Act. FactsThe relevant background of the case involves the...

'No Reason To Interfere With The Levy Of Tax On The Sale Of 'Korai'': Patna High Court

In a recent ruling, the Patna High Court has upheld the imposition of tax on the sale of 'Korai,' a processed by-product used as cattle feed.The decision came in response to two appeals by M/s Raj Kumar Sao Kishori Lal Sao, a partnership engaged in the purchase, processing, and sale of food-grains, pulses, and related by-products.The court's observation emphasized that there was no evidence to demonstrate that 'Korai' was sold as cattle feed. The processed nature of 'Korai' rendered it taxable...

Appellate Authority Cannot Dismiss Appeal For Non-Prosecution Due To Non-Appearance Of Assessee Or Authorized Representative: Patna High Court

The Patna High Court has observed that the appellate authority is not empowered to dismiss the appeal for non prosecution due to non-appearance of Assessee or authorized representative as appellate authority has a duty and obligation to take into consideration the merits of the matter, examine the grounds raised by the appellant even if the appellant or authorized representative presence is not recorded; and decide the issue on merits.The above ruling came in a petition whereby the petitioner...

Pre-deposit For CGST/SGST Appeal Allowed Exclusively From Electronic Cash Ledger, Not Electronic Credit Ledger: Patna High Court

The Patna High Court has recently ruled that pre-deposit for maintaining an appeal under Section 107(6)(b) of the CGST/SGST Act is permissible solely by utilizing amounts from the Electronic Cash Ledger and not the Electronic Credit Ledger.The division bench comprising Justices Madhuresh Prasad and Chakradhari Sharan Singh observed, "This court is also of the unambiguous conclusion that the pre-deposit (10 percent) for maintaining appeal under Section 107 (6)(b) of the CGST/BGST Act can be done...

Patna High Court Overturns GST Appeal Dismissal Citing Conditions in Notification No. 53 of 2023-Central Tax

In a recent ruling, the Patna High Court overturned the dismissal of a GST appeal and reinstated the appeal, contingent upon meeting specified conditions outlined in Notification No. 53 of 2023-Central Tax.Emphasizing the significance of adhering to statutory timelines while recognizing the opportunities provided by relevant notifications to revive dismissed appeals under specific conditions, the division bench of Chief Justice K. Vinod Chandran and Justice Rajiv Roy stated, “In this context,...