NRIs Not Exempted From Mandatory Faceless Procedure: Telangana High Court

The Telangana High Court has held that the NRIs are not exempted from following mandatory faceless procedure.The bench of Justice Sujoy Paul and Justice Namavarapu Rajeshwar Rao has observed that the taxpayer is nowhere distinguished between NRIs and Indian citizens. The reassessment notice issued under Section 148 must comply with the requirement of the scheme whether or not the taxpayer is an NRI or Indian citizen.The petitioner/assessee has challenged the reassessment notices under Sections...

GST Not Payable On Consideration against 'Works Contract ' Executed In Maldives: Telangana High Court

The Telangana High Court has held that GST is not payable on consideration received towards 'works contract service of construction' executed in the Maldives.The bench of Justice Sujoy Paul and Justice Namavarapu Rajeshwar Rao has observed that the location of immovable property is located in the Maldives or outside India. Hence, the place of supply shall determine the 'location of the recipient'. The place of supply of services is Addu, Maldives. The 'location of recipient' is already...

Legal Heirs Of Deceased Party To Arbitration Agreement Comes Under "Legal Representatives" Under Section 2(1)(g) Of Arbitration Act: Telangana High Court

The Telangana High Court bench of Justice P.Sam Koshy and Justice Sambasivarao Naidu has held the legal heirs of a deceased person who was a party to an arbitration agreement fall under the definition of "legal representative" as specified in Section 2(1)(g) of the Arbitration and Conciliation Act, 1996. The bench held that it encompasses persons who manage or claim to inherit the deceased's estate. The issue before the High Court was whether an objection under Section 8 of the ...

Non-Filing Of GST Return Due To Technical Glitch, Bank Can't Be Penalised: Telangana High Court

The Telangana High Court has held that the petitioner bank could not file its return in the GST portal because of a technical glitch and cannot be saddled with demand, penalty, and interest.The bench of Justice Sujoy Paul and Justice Namavarapu Rajeshwar Rao has observed that it was the duty of the department to keep their portal functional. If the portal was not functional or had a technical glitch, and because of that, the petitioner was compelled to file a return in the portal of Telangana....

Telangana HC Explains Section 31(7)(A) And (B) Of The A&C Act,1996 In Terms Of Timeframes, Embargo & Discretion

The Telangana High Court division bench of Justice Moushumi Bhattacharya and Justice M. G. Priyadarsini has held the arbitral tribunal has full authority to award interest from the date of the award until the date of payment, regardless of any contrary decision by the parties. If the award is silent on the rate of interest, the award holder is entitled to an interest rate 2% higher than the market rate.Further, the bench held that the discretion of the arbitral tribunal to award pre-reference...

Commercial Disputes Take Effect Beyond Private Sphere Of Contracting Parties, Create Ripple Effect On Commercial Movement: Telangana HC

The Telangana High Court has elaborated on the interpretation of "commercial disputes" under the Commercial Courts Act, 2015. The Court clarified that any dispute arising out of a commercial agreement cannot be termed a 'Commercial Dispute' as long as only the contracting parties will be affected. “In essence, a commercial dispute would be one where the nature of the agreement or the consequence arising therefrom would take the effect of the agreement beyond the private sphere of...

Invoking Section 8(1) Of Arbitration And Conciliation Act, 1996, Formal Application Is Required, Averment In Written Statement Not Enough

The Telangana High Court has clarified the procedural requirements for invoking arbitration under Section 8(1) of the Arbitration and Conciliation Act, 1996. The court held that a formal application for referring parties to arbitration must be filed before submitting the first statement on the substance of the dispute, typically the written statement in a suit. The case arose from a Civil Revision Petition challenging a trial court order that had referred parties to arbitration based ...

Himani Navaratan Oil, Himani Gold Turmeric Ayurvedic Cream Are Ayurvedic Medicine ; Telangana High Court

The Telangana High Court has held that the 10% duty is leviable on Himani Navaratan Oil and Himani Gold Turmeric Ayurvedic Cream as they are classified as ayurvedic medicine and not cosmetics.The bench of Justice P.Sam Koshy and Justice N.Tukaramji has observed that the rapper in whom the cream is sold very emphatically highlights it as an ayurvedic medicine. The rapper also clearly indicates that the cream is highly effective for cracked skin, pimples, boils, and numerous other skin blemishes....

Deduction Can't Be Availed On Expenditure Incurred For Overseeing Project Of Holding Company: Telangana High Court

The Telangana High Court has held that deductions cannot be availed on expenditures incurred for overseeing the project of holding a company.The bench of Justice P. Sam Koshy and Justice Laxmi Narayana Alishetty has observed that, as per Section 37 of the Income Tax Act, 1961, the prerequisites for allowing deduction are that the expenditure should have been incurred in respect of a business carried on by the assessee and should be spent wholly and exclusively for its own business. The bench...

MSMED Act Prevail Over Arbitration Act, Seller Can Approach Facilitation Council Even In Presence Of Arbitration Act: Telangana High Court

The Telangana High Court bench of Justice B. Vijaysen Reddy held that the provisions of the MSMED Act, 2006 will prevail over the Arbitration and Conciliation Act, 1996. The bench held that even if parties have an arbitration agreement, if the seller falls under the purview of the MSMED, it has the right to seek resolution through the designated authority for its claims. Brief Facts: The Applicant, engaged in electricity production in Gurha, Bikaner, Rajasthan, sought to purchase...

Section 9 IBC Petition Does Not Bar Arbitration Under Section 11(6) Of Arbitration Act: Telangana High Court

The Telangana High Court bench of Chief Justice Alok Aradhe has held that the mere filing of such petition under Section 9 of IBC before NCLT does not bar initiation of proceeding under Section 11(6) of the Arbitration and Conciliation Act, 1996. The bench held that there is no statutory provision which bars a party from initiating the proceeding under Section 11 of the Arbitration Act. Section 9 of the IBC deals with the application for initiation of the corporate insolvency resolution...

Scope of Power Of High Court Under Section 11 Is Extremely Limited, Court Can't Go Into Disputed Questions Of Facts: Telangana High Court

The Telangana High Court bench of Justice K. Lakshman has held that the scope of power of the High Court under Section 11 of the Arbitration and Conciliation Act, 1996 is extremely limited. It held that the court cannot go into disputed questions of facts which are to be decided by the arbitrator. Section 11 of the Arbitration and Conciliation Act, 1996 deals with the appointment of arbitrators by the courts. It states the procedure for appointing arbitrators when parties fail to agree...