Case Laws - Income Tax

• 2024 (5) TMI 864 - ITAT AMRITSAR
  Penalty proceedings u/s 271(1)(c) r.w.s. 274 - additional income declared in the return filed in response to notice u/s 153A as compared to original returned filed u/s 139(1) - CIT(A) rejected the contention of the assessee only on the basis that additional income has been offered in the return of income filed u/s 153A, and the extra income declared in the return represent concealment income HELD THAT:- As per the provision of the Act, the penalty shall be levied if the assessee has been found to be the owner of any money, bullion, jewellery or other valuable article or thing or there is some income based on the entry in the books of account....... + More

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• 2024 (5) TMI 863 - CALCUTTA HIGH COURT
  AO jurisdiction to pass the assessment order - file was transferred to ACIT, Central Circle 2(3), Chennai pursuant to an order passed by the CIT u/s 127 - HELD THAT:- As evidently clear that on and after the order passed by the CIT transferring the files to the jurisdiction at Chennai by order dated 15.03.2013, the Assessing Officer here in Kolkata has no jurisdiction to deal with the matter. This aspect has been rightly noted by the learned Tribunal. The learned Tribunal also took note of the decision of Ramshila Enterprises Private Limited [ 2016 (5) TMI 17 - CALCUTTA HIGH COURT ] In the said decision, the Court took note of the judgment o....... + More

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• 2024 (5) TMI 862 - ALLAHABAD HIGH COURT
  Ex parte scrutiny assessment order u/s 143(3) r.w.s. 144B - specific request to grant opportunity of personal hearing - HELD THAT:- As decided in Satish Kumar Bansal Huf [ 2024 (5) TMI 786 - ALLAHABAD HIGH COURT ] in absence of power to remit the matter to the assessing authority to make a fresh assessment, in the case of an ex parte order wrongly drawn on ex parte basis, the appeal power would remain seriously restricted. The appeal authority would be forced to entertain the appeal on all merit issues and exercise the powers of the AO. While it is not in doubt that the appeal authority has all powers of AO, at the same time, it is not the S....... + More

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• 2024 (5) TMI 859 - ITAT DELHI
  Admission of additional evidence by CIT(A) - Whether action of the CIT(A) is in violation of Rule 46A of the Income Tax Rules, 1962? - HELD THAT:- As observed that in the case before the Hon ble Delhi High Court MANISH BUILD WELL PVT. LTD. [ 2011 (11) TMI 35 - DELHI HIGH COURT] CIT(A) had admitted the additional evidence as the case of the assessee fell within the ambit of clause (c) of sub- rule (1) of Rule 46A and the requirement of sub-rule (2) i.e. recording of reason for admittance of additional evidence was also met. In the case before us requirement of clause (a) or (b) or (c) of sub-rule (1) and sub rule (2) have not been complied wi....... + More

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• 2024 (5) TMI 856 - ITAT AHMEDABAD
  Rectification u/s 154 - Addition u/s. 69A - addition to total income u/s. 269SS - unsecured loans - assessee engaged in banking business - AO invoked provisions of section 115BBE and also initiated penalty proceedings u/s. 270A of the Act in respect of the addition made u/s. 69A - HELD THAT:- While rectifying the order, the AO should have confronted the assessee in consonance with the application of 69A in respect of unsecured loans which the AO has failed to do so. The rectification order is simply making it a typographical mistake but the assessee has made clear in application u/s.154 of the Act that it is a typographical mistake but the v....... + More

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• 2024 (5) TMI 854 - ITAT PUNE
  Grant of approval u/s. 80G(5) - denial of approval as application was not filed within six months from the date of grant of provisional approval - as per DR in the absence of power to condone the delay the statutory authority cannot condone the delay - HELD THAT:- Tribunal constituted under the provisions of Income Tax Act, 1961 is not a Court but a Tribunal unless there is express power conferred by the said Act to condone the delay or exclude any period of limitation, the Tribunal would not be clothed with the power to condone the delay. It is trite law that in the absence of any conferment of power by the statute, the Tribunal cannot cond....... + More

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• 2024 (5) TMI 853 - ITAT PUNE
  STCG - Addition u/s 50C - taxing the difference between govt. valuation and actual sale consideration - contention of assessee that due to the location of the property the assessee was compelled to sell the property below the guide line value - as argued impugned land located near river bank was vulnerable to floods, it was situated near cremation ground and did not have any approach road and hence, its fair market value was only around Rs. 8,00,000 therefore, the addition made u/s 50C was not justified - HELD THAT:- We find that the appellant assessee requested to allow the deduction of cost of the land sold also disputed the determination ....... + More

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• 2024 (5) TMI 851 - ITAT BANGALORE
  Exemption u/s. 80P(2)(a)(i) - deduction was claimed in respect of the amount of profits attributable to the activity of providing credit facilities to its members - AO disallowed the entire claim as the assessee had not earned investments from its members of the society but also from general public and in respect of the interest income of co-operative society, the disallowance was made by holding that the claim is not found to be eligible for deduction u/s. 80P(2)(d) and therefore treated the same as income from other sources. HELD THAT:- We note that the disallowance has been made in the hands of the assessee as assessee was also having nom....... + More

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• 2024 (5) TMI 850 - ITAT INDORE
  Addition on the basis of declaration made by assessee during a search action u/s 132 - Addition on account of difference in amount declared u/s 132(4) and amount shown in returns of income - declaration basically related to unaccounted sales, which has already declared by the assessee and some part separately added in income - HELD THAT:- We find no merit in the arguments of revenue because of the simple reason that there appears no evidence for the impugned addition made by AO except the assessee s statement during search forming basis of the impugned addition. Perusal of statements recorded u/s 132(4) duly extracted by AO in assessment-ord....... + More

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• 2024 (5) TMI 848 - ITAT DELHI
  Assessment u/s 153A - Unexplained money u/s 69A - HELD THAT:- As decided in the case of Kabul Chawla [ 2015 (9) TMI 80 - DELHI HIGH COURT] that in case where the assessment of an assessment year stood concluded at the time of search and remains unabated, the additions and disallowances are permissible in Section 153A proceedings only qua incriminating material found in the course of search. In the instant case, no incriminating material was found during the search and referred in the assessment order and hence the AO is not entitled to make additions in such completed/unabated assessments. We declined to interfere with the findings of the CIT(A). The appeal by the Revenue is dismissed

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• 2024 (5) TMI 845 - ITAT CHENNAI
  Assessment u/s 144C - Period of limitation - whether assessment proceedings are barred by limitation? verification, if any, had to be conducted by AO, he has to do so within the time line given [viz within one month from the end of the month of receipt of the DRP direction] - HELD THAT:- As relying on M/s.Taeyang Metal India Pvt. Ltd [ 2024 (3) TMI 153 - MADRAS HIGH COURT] we hold that the final assessment order passed by the AO/DCIT, Corporate Circle-1(2), Chennai, dated 21.11.2017 for AY 2013-14 in the case of the assessee was barred by limitation and therefore, passed wholly without jurisdiction and therefore, null in the eyes of law andt....... + More

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• 2024 (5) TMI 843 - ITAT DELHI
  Nature of expenses - Business Promotion Expenses Advertisement - revenue or capital expenditure - AO considered 50% of the expenditure claimed as capital in nature - HELD THAT:- As decided in M/s. Jasper Infotech Pvt. Ltd. [ 2021 (12) TMI 443 - ITAT DELHI] the impugned expenses claimed by the assessee are purely revenue in nature and disallowance of 50% thereof holding it to be of capital in nature is not justified. Appeal of the Revenue is dismissed.

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• 2024 (5) TMI 842 - ITAT AHMEDABAD
  LTCG - Addition u/s 50C - property sold by the assessee company was litigated property - difference between the valuation adopted by the Stamp Valuation Authority or that declared by the appellant - assessee in the details filed in Income Tax Return did not consider the Jantri Value in computation of gain - HELD THAT:- Issue decided in favour of assessee as relying on Bhojison Infrastructure Pvt. Ltd. [ 2023 (3) TMI 116 - ITAT AHMEDABAD ] wherein on perusal of the records it can be seen that in the return of income in respect of land and the value as determined by the DVO is approximately 8.95% higher but less than 10%. This was never disput....... + More

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• 2024 (5) TMI 840 - ITAT DELHI
  Assessment made u/s 144 r.w.s. 142(1) OR 153C - recording of a satisfaction that the assets/documents seized belong to a person other than the person searched - HELD THAT:-As relying on Jasjit Singh [ 2023 (10) TMI 572 - SUPREME COURT] and RRJ Securities Ltd [ 2015 (11) TMI 19 - DELHI HIGH COURT] assessments made for A.Y. 2012-13 u/s 144 r.w.s. 142(1), consequent to the satisfaction note recorded ought to have been made u/s 153C of the Income Tax Act, 1961. Since, the provisions of Section 153C have not been invoked and since, the proceedings u/s 153C have not been initiated, the assessment made u/s 144 r.w.s. 142(1) is treated as void ab initio.

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• 2024 (5) TMI 839 - PUNJAB AND HARYANA HIGH COURT
  Validity of Assessment u/s 153A - no search conducted u/s 132 and 132A as against the petitioner - authorisation issued to conduct search and seizure relating to the petitioner or not? - relevancy of panchnama as document - HELD THAT:- In the present case, we find that challenge is to the very initiation of proceedings at the initial stage; search under Section 132 of the Act and jurisdiction of the assessing officer by initiating proceedings u/s 153A of the Act which needs to be examined. The validity of initiating search proceedings cannot be examined by the Appellate Authority as is already held in Chandra Kishor Jha. [ 1999 (9) TMI 948 -....... + More

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• 2024 (5) TMI 836 - DELHI HIGH COURT
  Benefit of DTVSV Act - CIT(A) has rejected the appeal of the assessee on the ground of being barred by limitation - disputed tax demand after giving effect to the CIT(A) order - Whether appeal should be pending or the time limit for filing an appeal should not have expired as on the specified date? - HELD THAT:- As it is evident from the legislative intent as well as the Statement of Objects and Reasons, the aim of the DTVSV Act is to finally put an end to the litigation and set free the tax arrears entangled in the litigation battle. Considering the nature of the legislation to be beneficial and remedial in its form, it should be interprete....... + More

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• 2024 (5) TMI 833 - ITAT KOLKATA
  Nature of expenses - Expenditure on registration of new and existing patents - revenue or capital - HELD THAT:- The existing patents were registered in order to protect the assessee s interest in the said patents so that there is no infringement patents from any quarters. Similarly new patents were registered by the assessee to ensure the same are not used by any third party without any authorization and therefore these expenses has also been incurred by the assessee in order to protect the business interest. In our opinion, both these expenses were wholly and exclusively incurred for the purpose of business and are allowable u/s 37 of the A....... + More

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• 2024 (5) TMI 829 - MADRAS HIGH COURT
  Reassessment u/s 148/148A - escaped income is less than Rs. 50 lakhs or more? - petitioner submits that the respondents only took into consideration the credits in the bank account and did not take into account the debits therefrom and if such debits had been taken into account, she submits that the escaped amount would be much less than Rs. 50 lakhs - HELD THAT:- On perusal of the impugned orders, it is evident that the respondents proceeded ex-parte because the petitioner did not reply or otherwise participate in proceedings. It is also evident that the aggregate deposits were taken into consideration. The petitioner contends that the debi....... + More

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• 2024 (5) TMI 828 - MADRAS HIGH COURT
  Validity of computation sheet and the consequential notice of demand - petitioner pointed out that no addition was proposed in relation to the return of income filed by the petitioner - HELD THAT:- By referring to the computation sheet and the notice of demand, he points out that patent errors were committed while demanding a sum of Rs. 5,04,29,383/-. Accepts notice for the respondents. She submits that there appears to be a discrepancy when the assessment order and the impugned communications are compared. On perusal of the assessment order, it is clear that it was concluded therein that no addition is being made in relation to the issues m....... + More

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• 2024 (5) TMI 823 - ITAT HYDERABAD
  Estimation of Net profit - assessee failed to prove the source of cash deposits and that such deposits are only from the business, confirmed the addition - HELD THAT:- The figures establish that at no point of time, the net profit from the line of business of the assessee is as high as 10%. The accepted figures show that it is from 0.5% to 8%. In these circumstances, estimate of net profit at 10% is too high and on the face of the figures disclosed by the assessee, net profit at 0.5% is too low. Taking a pragmatic view, we consider the net profit at 5% is reasonable and will meet the ends of justice and, therefore, accept the contention rais....... + More

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• 2024 (5) TMI 821 - ITAT HYDERABAD
  Addition of unexplained income - cash deposits during the demonetization period - as per assessee sources for the deposits to be of' agricultural income' - HELD THAT:- As the assessee is an agriculturist having source of income from agricultural produce and he has furnished the document showing the agriculture holding of 20 acres of land belongs to his wife and children. The assessee deposited the amount during the demonetization period, which included proceeds from the sale of agricultural produce from his agricultural land and also from the agricultural land belongs to the family and also some deposits from past savings in the bank....... + More

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• 2024 (5) TMI 815 - ITAT DELHI
  Foreign Tax Credit (FTC) u/s 90 r.w. Article 25 India US Treaty (DTAA) - Claim denied as Assessee could not file Form 67 online along with return - HELD THAT:- Section 90 of the Act provides that Govt. of India can enter into Agreement with other countries for granting relief in respect of Income on which taxes are paid in country outside India and such income is also taxable in India. Neither Section 90 nor DTAA provides that FTC shall be disallowed for non-compliance with any procedural requirements. FTC is Assessee s vested right as per Article 25 of the DTAA read with Section 90 and same cannot be disallowed for non-compliance of procedu....... + More

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• 2024 (5) TMI 814 - ITAT DELHI
  Addition u/s 68/69A r.w.s. 115BBE - HELD THAT:- CIT(A) has given a finding that the assessee did not file any documentary evidence regarding cash deposits which is a subject matter of the impugned addition. However, it is the contention of the assessee that the assessee had provided documentary evidence to the Assessing Authority. This fact is required to be verified at the end of AO if the claim of the assessee is found to be correct, the AO would delete the impugned addition. Hence, this issue is restored to the file of AO for decision afresh. Ground No.3 raised by the assessee is accordingly, allowed for statistical purposes. Disallowance....... + More

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• 2024 (5) TMI 811 - ITAT MUMBAI
  Estimation of profit - Validity of order of CIT(A) in reducing the gross profit @ 7.89% as against the 100% addition made by the AO - Bogus purchases - non genuine parties to cover-up the purchases from grey market - addition u/s 69C - CIT(A), has erred in reducing gross profit @ 7.89% as against the 100% addition made by the AO - HELD THAT:- As in assessee's own case for assessment year 2007 08. [ 2019 (6) TMI 1722 - ITAT MUMBAI] and thereafter, determined that only the balance profit which was disclosed by the assessee in genuine trade and non genuine trade could be added to the total income of the assessee. The coordinate Bench in the....... + More

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• 2024 (5) TMI 802 - ITAT AHMEDABAD
  Addition u/s 50C r.w.s. 56(2)(vii) (b) - Additions in the hands of the buyer of the property - difference between the purchase price as per sale deed and the jantri value of the property on which the stamp duty was paid - Assessee is co-owners of the same property - As submitted the assessee was a buyer of the property, no capital gain could have arisen in her hand, therefore, the provision of Section 50C of the Act was not applicable at all in this case - HELD THAT:- An addition could have been made under this Section only if any immovable property, with stamp duty value exceeding Rs. 50,000/-, was acquired without consideration. In this ca....... + More

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Case Laws - GST

• 2024 (5) TMI 878 - SC ORDER
  Interest on the delayed disbursal of amount of Budgetary Support already sanctioned - Budgetary Support Scheme - it was held by CESTAT that 'The petitioner are no entitled to interest on the amount disabused to it under the Scheme' - HELD THAT:- It is not required to interfere in the matter. The Special Leave Petitions are hence dismissed.

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• 2024 (5) TMI 877 - CALCUTTA HIGH COURT
  Order u/s 74 of the West Bengal Goods and Services Tax Act, 2017 - the order of the adjudicating authority as well as the appellate authority is based on a report filed by the Irrigation and Waterways Directorate, Govt. of West Bengal - non-compliance with the principles of natural justice - HELD THAT:- When the report of the Irrigation and Waterways Directorate formed the foundation of the adjudication, it was incumbent upon the Revenue to supply a copy thereof to the writ petitioner so that he could effectively address the substance of the report. In view of that non-compliance with the principles of natural justice in this matter, the ord....... + More

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• 2024 (5) TMI 876 - AUTHORITY FOR ADVANCE RULING, WEST BENGAL
  Maintainability of advance ruling application - Scope of Advance Ruling - HELD THAT:- In terms of clause (a) of section 95 of the GST Act, an advance ruling means a decision provided by this authority or the appellate authority, as the case may be, on matters or any questions specified in sub section (2) of section 97 or sub section (1) of section 100 of the GST Act in relation to the supply of goods or services or both being undertaken or proposed to be undertaken by the applicant. An application for obtaining an advance ruling is to be made on the common portal in FORM GST ARA-01. However, in the instant case, no question is found to have ....... + More

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• 2024 (5) TMI 875 - MADRAS HIGH COURT
  Validity of assessment order and bank attachment notice - no personal hearing provided - petitioner asserts that the intimation notice and show cause notice did not contain particulars as to how the liability was arrived at - violation of principles of natural justice - HELD THAT:- The documents on record disclose that the petitioner was not heard before the order was issued. It also appears that only the summary of the assessment order was uploaded on the GST portal. In those circumstances, the impugned orders call for interference subject to putting the petitioner on terms. The impugned assessment order and the consequential attachment not....... + More

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• 2024 (5) TMI 872 - ALLAHABAD HIGH COURT
  Cancellation of registration of the petitioners' proprietorship concern - Time limitation - unreasoned order - total non application of mind by the authority concerned while cancelling the G.S.T registration of the petitioner - HELD THAT:- The appeal filed against the order has been dismissed on the ground of limitation only. Bar of limitation may bar the remedy of appeal but it does not bar the petitioner's right to seek his constitutional remedy under Article 226 of the Constitution of India, particularly when the impugned order affects valuable rights of the petitioner and the same has been passed without assigning any reason. The writ petition is disposed of.

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• 2024 (5) TMI 869 - ANDHRA PRADESH HIGH COURT
  Time Limitation - Rejection of appeal filed by the petitioner - appeal was filed with a delay beyond the condonable period - HELD THAT:- On perusal of the copy of the screen shot filed along with the material papers, there are some force in the submission of learned counsel. Since admittedly the copy of the assessment order dated 20.07.2022 was already placed on the department website, the petitioner gave the reference of the said order while filing the appeal electronically. Therefore, there are force in the submission that the requirement was substantially met. Therefore, the 1st respondent ought to have taken the date of filing of the app....... + More

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• 2024 (5) TMI 867 - ALLAHABAD HIGH COURT
  Cancellation of registration of petitioner - Time Limitation - non-application of mind - violation of principles of natural justice - HELD THAT:- In the present case, the facts are similar to one in Surendra Bahadur Singh's case [ 2023 (8) TMI 1262 - ALLAHABAD HIGH COURT] , wherein the appeal was barred by time under Section 107 of the Act. However, the Division Bench in Surendra Bahadur Singh's case took into consideration the original order and set aside the same being non-reasoned and allowed the petitioner therein to file reply to the show cause notice. The orders impugned herein are liable to be set aside - Petition allowed.

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• 2024 (5) TMI 866 - ALLAHABAD HIGH COURT
  Cancellation of registration of petitioner - non-application of mind - time limitation - HELD THAT:- In the present case, the facts are similar to one in Surendra Bahadur Singh's case [ 2023 (8) TMI 1262 - ALLAHABAD HIGH COURT ], wherein the appeal was barred by time under Section 107 of the Act. However, the Division Bench in Surendra Bahadur Singh's case took into consideration the original order and set aside the same being non-reasoned and allowed the petitioner therein to file reply to the show cause notice. The orders impugned herein are liable to be set aside. Accordingly, the order in original dated March 2, 2022 and the appe....... + More

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• 2024 (5) TMI 865 - ALLAHABAD HIGH COURT
  Cancellation of registration of petitioner - order for cancellation of registration has been passed without any application of mind - violation of principles of natural justice - HELD THAT:- In the present case, the facts are similar to one in Surendra Bahadur Singh's case [ 2023 (8) TMI 1262 - ALLAHABAD HIGH COURT ], wherein the appeal was barred by time under Section 107 of the Act. However, the Division Bench in Surendra Bahadur Singh's case took into consideration the original order and set aside the same being non-reasoned and allowed the petitioner therein to file reply to the show cause notice. The orders impugned herein are l....... + More

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• 2024 (5) TMI 827 - DELHI HIGH COURT
  Violation of principles of natural justice - the impugned order does not take into consideration the reply submitted by the Petitioner and is a cryptic order - demand including penalty - HELD THAT:- The observation in the impugned order dated 29.12.2023 is not sustainable for the reasons that the reply dated 25.10.2023 filed by the Petitioner is a detailed reply with supporting documents. Proper Officer had to at least consider the reply on merits and then form an opinion. He merely held that the reply is incomplete, not duly supported by adequate documents, unable to clarify the issue which ex-facie shows that Proper Officer has not applied....... + More

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• 2024 (5) TMI 826 - DELHI HIGH COURT
  Violation of principles of natural justice - impugned order notes that as neither any reply was received from the noticee nor any one attended the hearing - HELD THAT:- As conceded by the respondent that a reply was filed but the same was not taken into account by the Adjudicating Authority while passing the impugned order. The impugned order is accordingly set aside. The show cause notice is restored on the record of the Adjudicating Authority. The Adjudicating Authority shall decide the show cause notice in accordance with law after giving one opportunity of personal hearing to the petitioner. It is clarified that in case petitioner once a....... + More

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• 2024 (5) TMI 825 - RAJASTHAN HIGH COURT
  Jurisdiction - power of Joint Commissioner (Investigation) Enforcement Wing, Rajasthan I, Jaipur to exercise powers and functions of adjudicating authority under Section 73 of the Act of 2017 - whether notification dated 25.02.2020 confers blanket powers on the Joint Commissioner, Deputy Commissioner and Assistant Commissioner in the matter of exercise of powers under Section 73 of the Act of 2017? - HELD THAT:- It is found that for the purposes of exercising powers of adjudicating authority under Section 73 of the Act of 2017, proper officer would be one who has been assigned that function as adjudicating authority. While notification dated....... + More

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• 2024 (5) TMI 822 - ALLAHABAD HIGH COURT
  Maintainability of petition - availability of statutory alternative remedy of appeal - Levy of penalty u/s 129(1)(a) of the U.P. GST Act, 2017 - HELD THAT:- In face of statutory alternative remedy of appeal available and it being equally open to the petitioner to raise all grounds pressed in the present petition before the appeal authority, we are not inclined to offer any interference in exercise of our extraordinary jurisdiction under Article 226 of the Constitution of India. Since the petition has remained pending before this Court for sometime, it is disposed of with a direction subject to the petitioner availing statutory alternative re....... + More

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• 2024 (5) TMI 820 - CALCUTTA HIGH COURT
  Cancellation of registration of the petitioner under the WBGST Act, 2017 - failure on the part of the petitioner to file its returns for six months - HELD THAT:- From the proceedings initiated by the respondents it would transpire that the show cause notice was issued on the petitioner for cancellation of the petitioner s registration on account of failure on the part of the petitioner to file its returns. Incidentally, the said show cause notice was issued at a point of time when the country was under lock down. Although, the cancellation order of the petitioner s registration dated 17th March 2021 records that the petitioner had submitted ....... + More

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• 2024 (5) TMI 813 - KARNATAKA HIGH COURT
  Levy of GST on Extra Neutral Alcohol (ENA) supplied by the petitioner - Validity of show cause notice - HELD THAT:- The respondents placed reliance on the recent decision of the Hon ble Apex Court Union of India in UNION OF INDIA OTHERS VERSUS COASTAL CONTAINER TRANSPORTERS ASSOCIATION OTHERS [ 2019 (2) TMI 1497 - SUPREME COURT] where the Apex Court held ' We find force in the contention of the learned senior counsel, Sri Radhakrishnan, appearing for the appellants that the High Court has committed error in entertaining the writ petition under Article 226 of Constitution of India at the stage of show cause notices. Though there is no bar....... + More

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• 2024 (5) TMI 773 - CALCUTTA HIGH COURT
  Condonation of delay in filing an appeal before the appellate authority - Applicability of Section 5 of the Limitation Act, 1963 - Power and Jurisdiction of appellate authority to condone the delay beyond the prescribed period - appeal filed beyond one month from the prescribed period of limitation, as provided in Section 107 (4) of the West Bengal Goods and Services Tax Act, 2017 - HELD THAT:- It may be noticed that an identical issue had fell for consideration before the Hon ble Division Bench of this Court in the case of S.K. Chakraborty Sons [ 2023 (12) TMI 290 - CALCUTTA HIGH COURT ]. The Division Bench of this Court, while considering ....... + More

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• 2024 (5) TMI 763 - ALLAHABAD HIGH COURT
  Penalty order - discrepancy in Part-B of the e-way bill - only mistake on the part of the person in-charge who had downloaded the e-way bill was wrong entry of the Vehicle number - HELD THAT:- It is not in dispute that goods were being transported by the dealer through stock transfer from its unit at Ludhiana to its sale depot at Asansol, West Bengal. From perusal of the e-way bill which has been brought on record, it is clear that the vehicle number has been mentioned as PB 11 AN 9287. As there is no dispute to the fact that it is a case of stock transfer and there is no intention on the part of dealer to evade any tax, the minor discrepanc....... + More

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• 2024 (5) TMI 761 - MADRAS HIGH COURT
  Service of SCN - plea of not having accessed the Portal for long period - valid reason or not - inadvertent errors committed while filing monthly GSTR-3B returns during 2017- 18 - ITC available on tax paid on inward supplies were mistakenly reported under the column ITC available on Inward supplies liable to reverse charge - HELD THAT:- On a close perusal of the impugned proceedings, it appears that the intimation notice, show cause notice and reminder notice were issued as mentioned supra before issuance of the impugned proceedings. It is pertinent to note that the above said notices and the orders were uploaded in the View Additional Notic....... + More

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• 2024 (5) TMI 758 - TRIPURA HIGH COURT
  Unblocking the electronic credit ledger - blocked ITC - non-filing of returns over a period of one year - return defaulter under Section 46. The petitioner submits that the petitioner has been regular in filing returns and payment of tax. He submits that his client would be advised to make payment of outstanding dues, if any, resulting out of an adjudication proceeding. HELD THAT:- Having regard to the developments that have been taken note of here-in-above, the grievance of the petitioner seems to have been redressed - the petition is disposed off.

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• 2024 (5) TMI 757 - MADRAS HIGH COURT
  Recovery of short paid duty alongwith interest and penalty - no sufficient reply filed by the petitioner - HELD THAT:- The reply filed by the petitioner, which is an undated, does not deal with the allegations in the notices that were issued to the petitioner. That apart, the petitioner should have filed necessary evidence and produced samples to establish that there is no manufacturing activity carried out by the petitioner and therefore, the stand of the third respondent was incorrect. Considering the fact that the issue has to be decided one way or the other on the correct classification adopted by the petitioner and the respondents, this....... + More

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Case Laws - Customs

• 2024 (5) TMI 879 - SC ORDER
  Project Import - demand of differential duty - delay in passing the assessment - department has not been able to explain this delay - Tribunal held that unreasonable delay in adjudication / finalization of assessment the show cause notice itself is liable to be quashed - thus it is found that the demand of differential duty the order for confiscation of goods, imposition of Redemption Fine and penalties imposed on M/s. PPN cannot sustain and requires to be set aside - Appeals are allowed - HELD THAT:- Having considered the facts and circumstances of the case(s), we are of the opinion that the Customs Excise And Service Tax Appellate Tribunal....... + More

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• 2024 (5) TMI 874 - MADRAS HIGH COURT
  Seeking certified copy of the order in original - export proceeds - duty draw back - condition that export proceeds are realized within the prescribed time limit - HELD THAT:- The relief prayed for is limited to a direction to provide a certified copy of the order in original. Even if the respondent had previously served the certified copy on the petitioner, it is always open to the respondents to state that the certified copy was served on the petitioner earlier and provide evidence thereof. This will not stand in the way of the respondents providing another copy thereof to the petitioner. Therefore, W.P. is disposed of by directing the res....... + More

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• 2024 (5) TMI 873 - MADRAS HIGH COURT
  Import of second hand digital multifunction printing and copying machines - HELD THAT:- Both learned counsel for the petitioner and learned senior standing counsel for the Customs Department submit that a batch of writ petitions pertaining to the same product were disposed of by order dated 23.11.2023 in W.P. Nos. 29673 of 2023 batch. Thus, W.P. are disposed of on the same lines. Consequently, W.M.P. are closed.

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• 2024 (5) TMI 870 - SC ORDER
  Seeking an interim relief or for final disposal of the matter - Seizure of areca nut - perishable commodity - HELD THAT:- We dispose of this Special Leave Petition reserving liberty to the petitioner herein to seek an early hearing/advance the case/writ petition either for the purpose of seeking an interim relief or for final disposal of the matter. It is needless to observe that if the petitioner seeks urgent hearing for consideration of the interim prayers, the same shall be considered at the earliest, having regard to the nature of the commodity involved in the writ petition so as to save it from perishing as such. Thus, the Special Leave Petition is disposed of.

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• 2024 (5) TMI 861 - DELHI HIGH COURT
  Applicability of duty element in determining the threshold limit for filing an appeal - Monetary limit prescribed by the Board for filing an appeal before the High Court - HELD THAT:- In the instant case, the determinative factor being the duty element is Rs. 86,34,821/-. Thus, the appeal is clearly covered by the circulars prescribing minimum monetary limit for filing an appeal. The example cited in the circulars as noticed clearly negates the argument of learned counsel for the appellant that cumulatively the amount being more than the threshold limit, the appeal would be maintainable. Hence the same has no merit and cannot be accepted. Fo....... + More

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• 2024 (5) TMI 858 - GUJARAT HIGH COURT
  Wavier of demurrage/storage charges - Detention of the goods - Seeking release the goods for export - re-export of party quantity of Denatured Ethyl Alcohol - Penalty - HELD THAT:- From record, it is clear that the CESTAT has allowed the appeal of the petitioner by setting aside the detention order/seizure order as well as the levy of penalty and fine in lieu of confiscation of the goods. The CESTAT has also passed an order with all consequential reliefs. Therefore, the detention of the goods in question was not valid and legal from the day of detention/seizure of the subject goods. The Rule Section 6 (1) (L) of the Regulation 2009 provides ....... + More

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• 2024 (5) TMI 855 - CESTAT AHMEDABAD
  Exemption from Customs Duty - Import of HDPE - mixing of minor quantity of Hexane - Notification 21/2002 and subsequently Notifications denied by the revenue, only on the ground that the HDPE imported by the appellant is chemically modified and the exemption is available only for the compounded HDPE - HELD THAT:- Following the order of Tribunal in Vikram Plasticizers [ 2023 (7) TMI 1068 - CESTAT AHMEDABAD] , it can be seen that the very identical issue has been considered by this Tribunal and came to conclusion that by mere addition of small quantity of other chemical in the HDPE, the characteristic of HDPE does not get altered and the same ....... + More

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• 2024 (5) TMI 846 - CESTAT CHANDIGARH
  Customs House Agent - Revocation of License - forfeiture of security deposit - Penalty - Subletting of licence - Smuggling of red sanders - Show-Cause Notice - Non-grant of opportunity to cross examine - Violation of various provisions of Regulations of CBLR, 2018 - HELD THAT:- We find that there is evidence to show that the appellant was very casual in his approach in transacting the work related to custom broker. We find that there are some inadequacies in the working of the appellant as far as the work of custom broker is concerned. We find that the custom broker vide his statement dated 04.04.2022 has accepted his fault. It is evident th....... + More

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• 2024 (5) TMI 838 - CESTAT MUMBAI
  Benefit of exemption - Duty Free Import Authorisations - DFIA scheme - Import of saffron / saffron pushali B - food flavour and food colour in edible goods - actual use condition and disclosure - HELD THAT:- No clarification emerges from that order to impact any of the other authorizations impugned in this appeal. It is pertinent to note that reliance on this development strikes at the very pillar on which the impugned proceedings have been erected as none of the other authorizations were similarly proceeded against and must be deemed, for want of similar outcome, as validated. In the light of importer being a transferee of authorizations in....... + More

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• 2024 (5) TMI 835 - BOMBAY HIGH COURT
  Export Policy of Non-basmati white rice under HS Code 1006 30 90 is amended from Free to Prohibited - Notification No. 20/2023 - Prospective Or Retrospective effect of the Notification - Non application of mind or arbitrary exercise - Violation of the principles of natural justice - Denial of benefit of the transitional arrangement - FTP 2023 - burden upon the exporter to complete the obligation of fulfilling a complete contract - HELD THAT:- The reason for converting the policy for export of Basmati Rice from free to prohibited as per contention of Mr. Deshpande, learned DSGI is the domestic food security situation in India, which as claime....... + More

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• 2024 (5) TMI 834 - CESTAT ALLAHABAD
  Smuggling - seizure of foreign origin gold bars - Confiscation - Penalty - No document regarding sale purchase/transportation - Violation of the provisions of Section 7 (1) (c), Section 11, Section 46 of the Act, read with the Section 123 - burden or onus to establish the smuggled nature of gold - HELD THAT:- We find that the impugned gold intercepted, initially taken possession by the officer of GRP and then handed over to Customs. Admittedly, the gold did not have any tell-tale foreign marking and it was merely accused that the markings were removed to hoodwink investigation. The place of seizure is not in Customs area. Hon ble Supreme Cou....... + More

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• 2024 (5) TMI 818 - CESTAT HYDERABAD
  Valuation of export goods - Iron Ore Fines - transaction value - FOB price - Export duty - contemporaneous exports - corroborative evidence - HELD THAT:- Only when the Revenue doubts the transaction value and then follows the Valuation Rules sequentially before adopting the contemporaneous value, we can take the view that Department has the correct approach. In this case, such a situation has not arisen. The Learned AR relies on the case law Obulapuram Mining Company Pvt Ltd., Vs CCCE ST, Guntur 2018 (10) TMI 223 - CESTAT HYDERABAD also goes into these aspects. In that case, the Tribunal has held that after rejecting the value under Rule 8 t....... + More

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• 2024 (5) TMI 817 - ALLAHABAD HIGH COURT
  Application For grant of Bail - offence punishable under Sections 135 - smuggling - cigarettes of foreign origin - HELD THAT:- Considering the nature of allegations and accusation against the applicant, the severity of the punishment if convicted and the period of incarceration as well as the fact that no apprehension has been expressed by the learned counsel for the Customs that the applicant is at the risk of fleeing justice or that he would tamper with evidence or influence any witness, hence, at this stage, without expressing any opinion on the merits of the case, this Court is of the view that the applicant is entitled to be released on....... + More

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• 2024 (5) TMI 812 - CESTAT BANGALORE
  Detention of imported item - restricted goods - import of Multi- Function Devices (Digital Photocopiers and Printers) - violation of the Foreign Trade Policy, 2015 -2020 framed under Sections 3 and 5 of the Foreign Trade Act and the Wastes Management Rules - Absolute Confiscation - Penalty - HELD THAT:- We find that the issue is no more res-integra. The issue regarding confiscation of used Digital Multifunctional machine was considered by various authorities including the Hon ble Supreme Court in the matter of Commissioner of Customs Vs. M/s Atul Automation Pvt. Ltd. 2019 (1) TMI 1324 - SUPREME COURT and Digital Express 2020 (10) TMI 184 - K....... + More

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• 2024 (5) TMI 806 - GUJARAT HIGH COURT
  Implementation of the Resolution Plan and change in management and control - demand for period prior to the approval of the Resolution Plan by the NCLT - HELD THAT:- It was submitted that similar facts were recorded by this Court vide order dated 25th August 2022 passed in R/Tax Appeal No.32 of 2019, holding that the said R/Tax Appeal No.32 of 2019 is required to be disposed of as having become infructuous and abated with regard to any liability of any nature whatsoever having extinguished in view of the implementation of the Resolution Plan and change in management and control of the assessee in view of the provisions of Sections 31 and 32A....... + More

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• 2024 (5) TMI 801 - CESTAT HYDERABAD
  Cancellation of warehouse licenses - Penalty u/s 117 - fake insurance policies and port allotment letters - violations of Rules made - appellant submits that there is no provision for submission of NOC from the Port; there was a mistake on the part of the employee of the appellant in submitting not genuine/ fake insurance policies; genuine insurance policies were available for license - HELD THAT:- The appellants are alleged to have submitted fake insurance policies in respect of some licenses; though, the appellants argue that the submissions of licenses within the renewal period was not required and at best can be termed as superfluous and....... + More

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• 2024 (5) TMI 794 - CESTAT AHMEDABAD
  Determination of effective date and time of implementation of Notification No. 5/2012-Cus - Whether the appeal is liable to pay safeguard duty on electrical insulators of glass which is imposed by Notification No. 5/2012-Cus (Safeguard), or otherwise - HELD THAT:- It can be seen that various courts and Tribunal has taken a consistent view that the date of effect of Notification shall be from the date of publication of the Notification in the Official Gazette and not merely from the date of Notification. In the present case, it is admitted fact that the publication of the Notification was made on 24.02.2013 whereas the entry inward of the imp....... + More

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• 2024 (5) TMI 754 - CESTAT KOLKATA
  Seeking reduction in penalty u/s 112 - Improper importation of gold bars of foreign origin - confiscation - burden to prove - prohibited goods or not - Whether the seized gold was correctly confiscated? - HELD THAT:- In the case of Sunny KakkarI [ 2023 (2) TMI 243 - CESTAT NEW DELHI] , this Tribunal found that the gold in question has been confiscated and the said fact had not been denied by the appellant. In this case also, the appellants have not disputed the absolute confiscation of the goods, therefore, relying on the said decision, we hold that penalties imposed on the appellant cannot be equated with the case of Gopal Shah [ 2016 (5) T....... + More

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• 2024 (5) TMI 743 - CALCUTTA HIGH COURT
  Entitlement to interest on the delayed refund of pre-deposit - Rate of interest - seizure of cash - Whether the Learned Tribunal is justified in law in not allowing the interest at the rate of 12 per cent per annum on the refund amount of pre-deposit? - HELD THAT:- It remains undisputed that the seized cash of Rs. 9,93,200/- was made pre-deposit by order of the CESTAT dated 22.04.2000 u/s 129E of the Customs Act, 1962. Admittedly, neither there was any provision nor any notification providing for rate of interest on delayed refund of pre-deposit. The pre-deposit made on 22.04.2000 was refunded to the appellant on 05.01.2006. It is pursuant t....... + More

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• 2024 (5) TMI 739 - CALCUTTA HIGH COURT
  Jurisdiction of Preventive officer to initiate any proceeding including proceeding u/s 110 (1) - Show Cause Notice for seized goods - issuance of inventory/seizure - bags of areca nuts believed to be of foreign origin which had been detained - non-disclosure of the satisfaction - HELD THAT:- Since, the contention of the parties is with regard to the authority and jurisdiction of the Preventive Officer to assume jurisdiction over an area which falls with the said Airport, it would be relevant to consider the Notification dated 24th August, 2017 which has been issued in exercise of power conferred u/s 4 (1) of the said Act, in suppression of t....... + More

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Case Laws - Corporate

• 2024 (5) TMI 742 - CALCUTTA HIGH COURT
  Willful Defaulters - whether the respondent-Bank, that is, the Central Bank of India was justified in declaring the petitioners to be willful defaulters through its First Committee and in affirming the same in the decision of the RC? - HELD THAT:- The present respondent-Bank, the Central bank of India, was one of the constituents of the Consortium and thus, being represented by the Liquidator, is also bound by the NCLT order refusing to accept the said report. Thus, the respondent-Bank s efforts to declare the writ petitioners as willful defaulters on the sole basis of the TAR are not tenable in the eye of law. To add to the woes of the resp....... + More

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• 2024 (5) TMI 729 - NATIONAL COMPANY LAW APPELLATE TRIBUNAL , PRINCIPAL BENCH , NEW DELHI
  Oppression and mismanagement - reduction in shareholding - illegal transfer and allotment of shares - subsequent fresh transfer whereby the Respondent No.1 Company retransferred the same exact number of shares to the Appellant No.2 Company under alleged separate Board Resolution - challenge to validity of the Board Resolution and fresh transfers made thereon. HELD THAT:- There was no dispute regarding the first transfer of shares dates 19th May, 2010. However, the second transfer dated 24.5.2010 was challenged and was adjudicated by the Tribunal as well as this Appellate Tribunal - The second transfer dated 24.5.2010 recorded in the register....... + More

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• 2024 (5) TMI 682 - SUPREME COURT
  Interest on Delayed Payments to Small Scale and Ancillary Industrial Undertakings - HELD THAT:- The contract postulated and the parties had agreed that MSSIDCL would be liable to pay SSPL only after the goods are delivered and accepted by the consignee, namely, Maharashtra State Electricity Board (MSEB) and on the payment being received by MSSIDCL from the MSEB. If the proviso to Section 3 applies, this contractual clause will get modified in terms of the proviso to Section 3, which has fixed the upper time limit for payment to 120 days from the day of acceptance or the day of deemed acceptance. However, the question would arise as to whethe....... + More

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• 2024 (5) TMI 681 - SC ORDER
  Professional misconduct - Role of NFRA V/s ICAI on disciplinary matters of Chartered Accountants - Retrospective V/s prospective applicability of provisions as contained in Section 132 of Companies Act, 2013 as well as NFRA Rules, 2018 - Violation of Principle of natural justice w.r.t. separate division of NFRA - Role of Statutory Auditors of the Company V/s Statutory Auditors of the Branches of the company - Are Standards of Auditing (SA) mandatory or Advisory or to be treated as guidance notes to Auditors - it was held by NCLAT that 'It is of utmost importance that Auditors realise their responsibilities which is necessary not only to ....... + More

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• 2024 (5) TMI 680 - SC ORDER
  Restoration of name of the company in the records of the Registrar of Companies - HELD THAT:- Section 252(1) of the Act states that any person aggrieved by an order of the Registrar, notifying a company as dissolved under Section 248, may file an appeal to the Tribunal within a period of three years from the date of the order of the Registrar. The Tribunal can direct the restoration of the name, if it is satisfied that the removal of the name of the company from the register of the companies, is not justified in view of the absence of any of the grounds on which the order was passed by the Registrar. In the present case, the order passed by ....... + More

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• 2024 (5) TMI 571 - BOMBAY HIGH COURT
  Grant of temporary bail on medical grounds - twin provisions of Section 212 (6) (ii) of the Companies Act, 2013 satisfied or not - HELD THAT:- The Hon ble Supreme Court in case of JAINAM RATHOD VERSUS STATE OF HARYANA ANR [ 2022 (4) TMI 1421 - SUPREME COURT] has granted bail to the appellant who was being prosecuted for violation of the provisions of Section 447 of the Companies Act, 2013 as well as various provisions of the Indian Penal Code, 1860, including Sections 406, 417, 418, 420, 467, 468, 471, 474 and 477A. A Special Leave petition preferred by the appellant was dismissed by the Supreme Court on 27th January, 2020 with observations ....... + More

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• 2024 (5) TMI 555 - DELHI HIGH COURT
  Misappropriation of funds/assets/shares/stocks of the said company by illegally transferring them to the petitioner no. 4 - offence under Sections 185/447/452 of the Companies Act read with Section 120B of the IPC - requirement of taking cognizance of the offence y Director only - Time Limitation - HELD THAT:- Recently, the Karnataka High Court, in its judgement dated 01st March, 2024 passed in SRI. ARUN BALLAKUR AND SMT. MADHAVI BALLAKUR VERSUS SRI. M. KRISHNA REDDY [ 2024 (3) TMI 1318 - KARNATAKA HIGH COURT] , has quashed the proceedings for an offence under Section 447 of the Companies Act initiated on a private complaint by the sharehold....... + More

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• 2024 (5) TMI 427 - SUPREME COURT
  Suit for recovery of dues - Jurisdictional bar on the civil court in deciding the suit instituted by the original plaintiff by virtue of Section 22(1) of the 1985 Act - legality validity of the interest rate of 24% per annum awarded by the High Court in the original plaintiff s favour - Levy of deductions towards the liquidated damages and penalty - failure to consider the evidence properly and had wrongly awarded the amounts under different heads to the original plaintiff. Whether the suspension of legal proceedings as envisaged under Section 22(1) of the 1985 Act would extend to a civil suit for recovery of money even if the debt sought to....... + More

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• 2024 (5) TMI 426 - DELHI HIGH COURT
  Seeking winding up of the respondent company - failure to pay debt in the normal and ordinary course of its business - HELD THAT:- From a perusal of the record, it is borne out that the present company petition is a complete non-starter, in so far then neither a Provisional Liquidator nor an Official Liquidator has yet been appointed in the present petition. In view of the fact that the Insolvency and Bankruptcy Code, 2016 as well as the Companies Act, 2013, have since been enacted during the pendency of these proceedings, it is the opinion of this court that the present petition does not deserve to continue before this Court, and it would b....... + More

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• 2024 (5) TMI 425 - DELHI HIGH COURT
  Direction to refund the amount deposited by the applicant pursuant to the directions/order dated 03.06.2009 by the learned DRT, Delhi along with due interest from the date of deposit - IFCI did not provide a break-up or bifurcation of the amounts received with respect to the properties sold/auctioned under the aegis of the learned DRT - HELD THAT:- ICFI is cutting an extremely sorry figure in demonstrating that the amount of Rs. 57.50 Lacs received from the applicant/third party objector was remitted to the Official Liquidator comprised in the payment made on 26.02.2015/27.02.2015 amounting to Rs. 88,66,077/-. First things first, evidently t....... + More

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• 2024 (5) TMI 334 - SUPREME COURT
  Disqualification from participating in the tender - Scope of the Balance Sheet Prepared under the Companies Act - Importance of explanatory notes to the Balance Sheet - rejection of technical bid on the premise that it has not complied with the necessary pre-requisite qualification in filing the explanatory notes of account being an integral part of the Balance Sheet - HELD THAT:- The Balance Sheets can only be understood by going into the factual narrations made in the explanatory notes of accounts. When one speaks about Balance Sheet, it takes along with it the explanatory note. To be noted, all the other bidders have complied with this pa....... + More

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• 2024 (5) TMI 333 - NATIONAL FINANCIAL REPORTING AUTHORITY
  Professional misconduct by CA - Liability of the Engagement partner with audit firm - Failure to submit requisite information and non-cooperation with NFRA - Penalties and sanctions - HELD THAT:- It is established that M/s PCN Associates, and CA Gopala Krishna Kandula committed professional misconduct by not submitting the requisite information to NFRA; not attending personal hearing; and submitting false affidavit. We conclude that the following failures on their part, as contained under the Articles of Charges in the SCN, stand established: a) Failure to exercise due diligence and being grossly negligent in the conduct of professional duti....... + More

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• 2024 (5) TMI 279 - NATIONAL FINANCIAL REPORTING AUTHORITY
  Professional misconduct by CA - Liability of the Engagement partner with audit firm - Acceptance of the Audit Engagement - Significant Matters Reported by the Previous Auditor - Evaluation of the Going Concern Assumption - Verification of Expected Credit Loss (ECL) on Financial Assets - Modification of the Audit Opinion on the Financial Statements - Use of the work of Management's Experts and Auditor's Expert - Engagement Quality Control Review (EQCR) - Compliance with SA 230 [SA 230, Audit Documentation] - penalty and sanctions - HELD THAT:- The Auditor has made a series of departures from the Standards and the Law, in conduct of th....... + More

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• 2024 (5) TMI 140 - NATIONAL FINANCIAL REPORTING AUTHORITY
  Professional Misconduct by CA - Liability of the Engagement Partner (EP) with Audit Firm - Failure related to non-recognition of liabilities classified as Non-Performing Assets (NPAs) by the Lender Banks - Failure to evaluate the management's assessment of the entity's ability to continue as a Going Concern - Failure relating to Revenue Recognition - Failures relating to Audit Documentation - Failures relating to audit evidence for Inventory - Failure relating to forming opinion on Financial Statements without obtaining Sufficient Appropriate Audit Evidence - Lapses in fulfilling duties related to Engagement Quality Control (EQC) Rev....... + More

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• 2024 (5) TMI 75 - NATIONAL FINANCIAL REPORTING AUTHORITY
  Professional Misconduct by CA - Liability of the Engagement Partner (EP) with Audit Firm - Failure to disclose a material fact known - Failure report a material misstatement known - Failure to exercise due diligence and being grossly negligent in the conduct of professional duties - Failure to obtain sufficient information which is necessary for expression of an opinion - Failure to invite attention to my material departure from the generally accepted procedures of audit applicable - sanctions and penalties - section 132 (4) of Companies Act 2013 - HELD THAT:- It is proved that the audit firm failed to implement the quality control policies ....... + More

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• 2024 (4) TMI 871 - CALCUTTA HIGH COURT
  Violation of Section 233 of the Companies Act, 2013 - requirement of holding at least ninety percent of the total numbers of shares, for approval of scheme of amalgamation - non-application of mind - HELD THAT:- In the present case it is evident that the trial Judge has taken cognizance without any application of judicial mind. The order taking cognizance in this case has been only a formality - There is absolutely no application of mind. Cognizance has been taken casually without any prima facie findings. There is also no reason for the petitioner to commit fraud by making a false statement as the petitioner has the option to take recourse ....... + More

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• 2024 (4) TMI 728 - NATIONAL FINANCIAL REPORTING AUTHORITY
  Professional Misconduct by CA - Failure to disclose a material fact known to him which is not disclosed in a financial statement, but disclosure of which is necessary in making such financial statement where the statutory auditors are concerned with that financial statement in a professional capacity - Failure to report a material misstatement known to him to appear in a financial statement with which EP is concerned in a professional capacity - Failure to exercise due diligence and being grossly negligent in the conduct of professional duties - Failure to obtain sufficient information which is necessary for the expression of an opinion, or ....... + More

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• 2024 (4) TMI 635 - DELHI HIGH COURT
  Seeking directions against the respondent no. 1/National Housing Bank (NHB) to consider and decide upon the petitioner s representation dated 18th August, 2023 - seeking direction to call upon respondent no. 2, i.e., India Bulls Housing Finance Limited (IBHFL) to produce the responses and relevant documents, disclosing the actions taken by them in respect of the query dated 6th April, 2023 addressed by the petitioner. HELD THAT:- The petitioner has been in litigation with IBREL and seeks to collect information and documents through the process of the present petition, so as to use the same to file intervention application before NCLAT, New D....... + More

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• 2024 (4) TMI 480 - NATIONAL COMPANY LAW APPELLATE TRIBUNAL , PRINCIPAL BENCH , NEW DELHI
  Oppression and Mismanagement - Validity of the Lease Deed - Doctrine of Res Sub-Judice - Appellants argued that the Tribunal overstepped its jurisdiction by setting aside the lease deed while its validity was under scrutiny in a civil court - HELD THAT:- The bedrock of this case is the lease deed dated 26.08.2019, executed pursuant to the resolution dated 23.08.2019 which is not only contrary to the provisions of Section 188(1) of the Act r/w Rule 15 of the companies (Meeting of board and its powers) Rules 2014 but also clause 36(ii) of the AoA as on 23.08.2019, which provides that the board of directors shall not, without consent of 100% me....... + More

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• 2024 (4) TMI 479 - NATIONAL COMPANY LAW APPELLATE TRIBUNAL , PRINCIPAL BENCH , NEW DELHI
  Rightful owners of 4000 shares or not - Exercise of jurisdiction under Section 8 of the Arbitration and Conciliation Act - HELD THAT:- Language of Section 8 of the Arbitration and Conciliation Act has inherent restrictions. The Section puts a bar on the courts not to go outside the contours of Section 8 and the Court can only exercise jurisdiction to see if there is a valid clause and whether the dispute is arbitrable. Thus to give a finding at this stage to the effect R1 and R2 are owners of 4000 shares, which in fact is the main relief claimed in the Company Petition, the Ld. NCLT certainly had travelled beyond its jurisdiction. There was ....... + More

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Case Laws - IBC

• 2024 (5) TMI 871 - SC ORDER
  CIRP - parties have compromised and settled the matter in terms of the Deed of Settlement - HELD THAT:- The Corporate Insolvency Resolution Process against respondent no. 2 M/s. Anjani Realtors Pvt. Ltd. will be treated as closed. The appeal is disposed of.

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• 2024 (5) TMI 852 - NATIONAL COMPANY LAW APPELLATE TRIBUNAL , PRINCIPAL BENCH , NEW DELHI
  Dismissal of application filed under Section 7 of the Insolvency and Bankruptcy Code, 2016 - CIRP - no relationship of financial creditor and the corporate debtor - no transaction in the nature of financial debt between the parties - no privity of contract between the parties - HELD THAT:- It is not in dispute that the Appellants had advanced the loan to PHPL and not to Respondent. There is no privity of contract between the parties. PHPL failed to return the money taken as loan from the Appellants - It was provided in clause 35 of the sale deed that the vendee shall pay to the confirming party and it is mentioned in so many words in the sal....... + More

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• 2024 (5) TMI 808 - NATIONAL COMPANY LAW APPELLATE TRIBUNAL , PRINCIPAL BENCH , NEW DELHI
  Violation of principles of natural justice - non-speaking order - impugned order has not dealt with the various prayers made by the Appellant in the application and has confined its order with the claim which has been admitted by the RP - HELD THAT:- This matter requires a relook by the Adjudicating Authority for the purpose of recording a finding on each prayers sought in the application after taking into consideration the pleadings as well as the evidence brought on record. As according to us, the impugned order is totally nonspeaking. Application is hereby restored and the matter is remanded back to the Adjudicating Authority to decide th....... + More

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• 2024 (5) TMI 789 - NATIONAL COMPANY LAW APPELLATE TRIBUNAL , PRINCIPAL BENCH , NEW DELHI
  Scope of CIRP costs - Allowability of the claims during the CIRP to be treated as CIRP costs - waterfall mechanism - contract was completed during the CIRP period - cost attributable to the Respondent can be considered as CIRP cost or not - whether the costs incurred for the work done during the CIRP by Respondent No 1/subcontractor, can be considered as CIRP Cost or not by the Liquidator? - HELD THAT:- From the extracts of the minutes of the CoC, it is clear that a conscious decision was taken that payments to vendors engaged in specific projects would be sourced from the cash flow generated by those projects' customers. The Darlipali P....... + More

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• 2024 (5) TMI 784 - NATIONAL COMPANY LAW APPELLATE TRIBUNAL , CHENNAI BENCH
  Initiation of CIRP - maintainability of application filed under Section 7 of IBC - application beyond the period of limitation - HELD THAT:- Three home buyers initiated the legal proceedings under the Code by filing the application under Section 7 which was admitted on 20.08.2019. Since, the CIRP was initiated against the Company as a whole (Corporate Debtor), therefore, the homebuyers of Dreamz Sneh Project also filed their claims to the IRP which were admitted. However, by a subsequent order dated 04.09.2020, the CIRP initiated was ordered to be confined to only one project, namely, Dreamz Sumadhur Porject. As a result thereof, a separate ....... + More

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• 2024 (5) TMI 728 - PATNA HIGH COURT
  CIRP - waterfall mechanism - extinguishment of demand for reason of the State Tax Authorities not moving the National Company Law Tribunal (NCLT) for inclusion of their demand in the resolution plan, as a debt payable by the Company-a Corporate Debtor under the IBC - HELD THAT:- The petitioner was incorporated as a Special Purpose Vehicle to carry out the work of upgradation of Hazipur-Muzaffarpur section of the existing NH-77 within the State of Bihar on Build Operate and Transfer (BOT) (annuity-basis) under the National Highway Development Project Phase-III. The agreement executed by the petitioner with the NHAI is produced as Annnexure-P/....... + More

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• 2024 (5) TMI 727 - NATIONAL COMPANY LAW APPELLATE TRIBUNAL , PRINCIPAL BENCH , NEW DELHI - LB
  Imitation of CIRP - Admissibility of Intervention Petition - Homebuyers - Appellant claiming that they are holding 102 units in Festival City Project and they sought intervention in the Company Petition. - NCLT admitted the Section 7 application which was affirmed by the Supreme Court - HELD THAT:- The Company Petition which has been filed in the year 2024 by Respondent No.6- M/s. Mist Direct Sales Pvt. Ltd., Counsel for the Respondent No.2 has produced the order dated 05.04.2024 of the Adjudicating Authority where petitioners have been asked to clarify various aspects. The petition under Section 230 for scheme by the corporate debtor is ind....... + More

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• 2024 (5) TMI 726 - NATIONAL COMPANY LAW APPELLATE TRIBUNAL , PRINCIPAL BENCH , NEW DELHI
  Rejection of section 9 application - Initiation of CIRP - prior dispute in relation to existence of debt or not - whether there was a pre-existing dispute between the two parties with regard to the operational debt? - HELD THAT:- In the present case, from material on record, it is clear that the demand notice was issued by the Operational Creditor on 12.07.2022 and no notice of dispute was raised by the Corporate Debtor. The argument of the Corporate Debtor is not persuasive that the notice was not effectively served upon him for reasons spelt out by the Adjudicating Authority in para 5.3.1 of the impugned order - The statutory scheme of IBC....... + More

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• 2024 (5) TMI 679 - NATIONAL COMPANY LAW APPELLATE TRIBUNAL , PRINCIPAL BENCH , NEW DELHI - LB
  Seeking directions to the Resolution professional to conduct Transaction Audit of the books of the Corporate Debtor appointing Mr Amit Khandelwal as an independent auditor - constitutionality of re-constitution of COC by RP without conducting the transaction audit - legality of approval of resolution plan by the illegally constituted COC - HELD THAT:- The impugned order being only interlocutory order and subsequently another order has been passed on 11.03.2024 all issues pertaining to the application are open and to be considered and decided by the Adjudicating Authority after hearing both the parties. Since the Adjudicating Authority in sub....... + More

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• 2024 (5) TMI 678 - NATIONAL COMPANY LAW APPELLATE TRIBUNAL , PRINCIPAL BENCH , NEW DELHI
  Initiation of CIRP - application barred by Section 10A of IBC - date of alleged default is mentioned as 08.08.2018 from which date three years period came to end on 08.08.2021 and thereafter petition was not filed within the time - HELD THAT:- The present is a case where admittedly default was committed by the Corporate Debtor much prior to 10A period i.e. 08.08.2018 as was claimed by the State Bank of India in its application. When default was committed by the Corporate Debtor prior to 10A period, it is not open for the Appellant to claim that application deserve to be rejected on the ground of Section 10A. There are two reasons for not acc....... + More

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• 2024 (5) TMI 677 - NATIONAL COMPANY LAW APPELLATE TRIBUNAL , NEW DELHI
  Entitlement to file an appeal as an Independent Director in the Corporate Debtor - aggrieved person regarding acceptance of claim of the financial creditor or the quantum of financial credit admitted or not - HELD THAT:- It is apparent that the OTS of 2008 was revoked and that the claim made by Respondent No. 2 was filed ignoring the said revoked OTS. The appellant s submission that the OTS was not revoked is not borne out from the documents.. The admission of claim of Respondent No. 2 is in accordance with the application and order of admission under Section 7 of IBC, 2016, the correspondence between the financial creditor and corporate deb....... + More

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• 2024 (5) TMI 676 - NATIONAL COMPANY LAW APPELLATE TRIBUNAL , PRINCIPAL BENCH , NEW DELHI
  Admission of Section 95 application filed by the Financial Creditor - Personal Guarantor of the Corporate Debtor - date of default - time limitation - Insolvency petition which has been filed by the Financial Creditor has been signed by Resolution Professional who was not the authorized officer of Respondent No.1 - Personal Guarantee dated 25.07.2012 executed by the Appellant in favour of Dena Bank is an unstamped document. Time limitation - Submission of the Appellant is that the Deed of Guarantee dated 25.07.2012 was invoked by Recall Notice dated 04.03.2016, hence, three years period of limitation ended on 04.03.2019 and application filed....... + More

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• 2024 (5) TMI 628 - NATIONAL COMPANY LAW APPELLATE TRIBUNAL , PRINCIPAL BENCH , NEW DELHI
  Violation of Principle of Natural Justice - denial of opportunity of hearing - grounds which were taken by the Adjudicating Authority were neither pleaded by the application filed by the Torrent Power Limited and Vantage Point Asset Management Pte. Ltd. nor they were addressed at the time of hearing of the application as pleaded by the RP and CoC - correctness of approved Resolution Plan - HELD THAT:- There are substance in the submission of the Counsel for the Appellant that process adopted by the Adjudicating Authority in proceeding to allow application has violated the Principles of Natural Justice. No notice was issued in the application....... + More

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• 2024 (5) TMI 627 - NATIONAL COMPANY LAW APPELLATE TRIBUNAL , PRINCIPAL BENCH , NEW DELHI - LB
  Initiation of CIRP - NCLAT admitted the application u/s 7 - existence of debt and default - date of default was 14.02.2020, when the account was declared NPA - application barred by Section 10A of IBC or not - HELD THAT:- The Application under Section 7 clearly mentions that date of default was 14.02.2020, when the account was declared NPA. The Financial Creditor was fully entitled to file Section 7 Application, treating the date of default as 14.02.2020 - It is further relevant to notice that date of NPA mentioned was not for the first time mentioned in Section 7 Application. The Financial Creditor has initiated proceedings under the SARFAE....... + More

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• 2024 (5) TMI 626 - NATIONAL COMPANY LAW APPELLATE TRIBUNAL , PRINCIPAL BENCH , NEW DELHI - LB
  Rejection of prayer of Operational Creditor to initiate the CIRP against the Corporate Debtor/ Respondent - Respondent did not respond to the demand notice under Section 8 of the IBC - Operational Creditors or not - breach of terms and conditions of the contract leading to pre-existing dispute. Whether the appellant is an Operational Creditor as per IBC? - HELD THAT:- In the present case, the appellant had placed an advance with the respondent for supply of goods, it does not matter who is the supplier or the receiver of goods and services as laid down in the M/s Consolidated Construction Consortium Ltd. [ 2022 (2) TMI 254 - SUPREME COURT] -....... + More

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• 2024 (5) TMI 625 - NATIONAL COMPANY LAW APPELLATE TRIBUNAL , PRINCIPAL BENCH , NEW DELHI
  Initiation of CIRP - Rejection of Section 9 application - cyber fraud committed against the Respondent - pre-existing disputes or not - HELD THAT:- Since the fraud was perpetrated by unknown third parties, dragging the Operational Creditor into the dispute was a simple and deliberate ploy on the part of the Corporate Debtor to evade payment of liabilities. The pre-existing dispute was a fictional dispute and more of an after-thought. Moreover, it has been contended that even after having become a victim of cyber fraud, the fact that the Respondent had willing paid further sums of money to the Appellant in their Nordea Bank account shows that....... + More

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• 2024 (5) TMI 570 - NATIONAL COMPANY LAW APPELLATE TRIBUNAL , PRINCIPAL BENCH , NEW DELHI - LB
  Admission of Section 7 Application - default committed by Corporate Debtor in paying the amount due and payable - Non-performing assets - existence of debt and default or not - liability not denied - HELD THAT:- There is no dispute to the outstanding amount due on the Corporate Debtor. Sequence of events clearly indicate that at no stage Corporate Debtor has denied its liability. In reply to the notice under Section 13, sub-section (2) of the SARFAESI Act, the Appellant cited reasons for not making the payment, but liability to make payment was not denied. The Adjudicating Authority by the impugned order has found that Financial Creditor has....... + More

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• 2024 (5) TMI 526 - NATIONAL COMPANY LAW APPELLATE TRIBUNAL , PRINCIPAL BENCH , NEW DELHI - LB
  Admissibility of section 9 application - initiation of CIRP - operational debt claimed by RCL was due and payable or not - if any default thereto was committed by the Respondent No.1/BJCL - As claimed debt were paid before the admission of CIRP application - Respondent claimed the dues of GST are still pending - HELD THAT:- In the case of Section 9 application, it is necessary for the Operational Creditor to indicate the particulars of the crystallised debt qua the Corporate Debtor. From the given particulars in the Section 8 demand notice, it is clear that the total amount of operational debt claimed by RCL is Rs.1,96,96,325/- of which the ....... + More

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• 2024 (5) TMI 470 - NATIONAL COMPANY LAW APPELLATE TRIBUNAL , PRINCIPAL BENCH , NEW DELHI - LB
  Claim of appellant rejected on the ground that Resolution Plan has been approved by the CoC - right to claim consideration of claim again in third round - NOIDA s status and claims - HELD THAT:- In view of the pendency of the Applications of the Appellant(s) before the Adjudicating Authority, which are yet to be adjudicated, it is not found necessary at this stage to enter into submission or express any opinion on merits. The approval of Resolution Plan by the CoC on 03.03.2020 being no more in operation and the SRA has to resubmit the Resolution Plan, as per direction of the Adjudicating Authority dated 05.03.2024 and has to include the cla....... + More

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• 2024 (5) TMI 469 - NATIONAL COMPANY LAW APPELLATE TRIBUNAL , PRINCIPAL BENCH , NEW DELHI
  CIRP - Admissibility of Section 95 Applications against Personal Guarantors - discharge the liabilities of Personal Guarantors on approval of Resolution Plan - submission of the Appellant that since the entire debt has been assigned to SPV, personal guarantees against the Appellant could not have been invoked, has been considered and rejected by the Adjudicating Authority by the impugned order - time limitation - HELD THAT:- The judgment of the Hon ble Supreme Court in LALIT KUMAR JAIN VERSUS UNION OF INDIA AND ORS. [ 2021 (5) TMI 743 - SUPREME COURT ] has categorically laid down that approval of Resolution Plan does not ipso facto discharge....... + More

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Case Laws - PMLA

• 2024 (5) TMI 837 - SUPREME COURT
  Money Laundering - Denial of benefit of anticipatory bail - whether power to arrest vesting in the officers of the Directorate of Enforcement (ED) under Section 19 of the PMLA cannot be exercised after the Special Court takes cognizance of the offence punishable under Section 4 of the PMLA? - order of the Court accepting bonds under Section 88 - HELD THAT:- There is no provision therein which is in any manner inconsistent with Section 205 of the CrPC. Hence, it will apply to a complaint under the PMLA. A summons is issued on a complaint to ensure attendance of the accused before the Criminal Court. If an accused is in custody, no occasion ar....... + More

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• 2024 (5) TMI 788 - CALCUTTA HIGH COURT
  Money Laundering - Grant of bail - presumption of innocence and its appreciation in respect of the offences under the Prevention of Money Laundering Act - provisions of Article 21 of the Constitution of India and its overriding effect over Section 45 of PMLA - HELD THAT:- In this Case amount transpired in course of investigation initially is recovering of the seized cash amount and the same was at the behest of a complaint lodged by a nationalised bank in respect of transactions/debit credit taking place in some of the accounts and the same being routed through another nationalised bank. The holder of the main five companies were found to ha....... + More

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• 2024 (5) TMI 778 - MADRAS HIGH COURT
  Money Laundering - 'possession' of properties as envisaged under Section 8(4) of the Prevention of Money Laundering Act, 2002 - symbolic/constructive possession - HELD THAT:- Section 8(4) of the PMLA Act would envisage that the Director or any other officer authorised by him on confirmation of a provisional attachment can take possession of the property attached. It could also be seen that subsection (4) of Section 8 provides that the attachment or retention of the seized property shall continue during the pendency of the proceedings relating to any scheduled offence and would become final, if the guilt of a person is proved in trial....... + More

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• 2024 (5) TMI 725 - CALCUTTA HIGH COURT
  Money Laundering - territorial jurisdiction - Validity of seizures, freezing, orders and of the consequential actions - power to the High Courts to entertain a Writ Petition, wherein full or a part of cause of action arose, within its jurisdiction - HELD THAT:- Article 226 (2) of the Constitution of India confers the power to the High Courts to entertain a writ petition wherein full or a part cause of action arises within its jurisdiction - it is not in doubt that this Court has the power to maintain such a writ petition although the original case might have been generated in another State. Afterall, the fundamental rights of the petitioner/....... + More

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• 2024 (5) TMI 724 - ALLAHABAD HIGH COURT
  Seeking grant of bail - Money Laundering - proceeds of crime - scheduled offence - partners of M/s Vikas Construction had encroached on public property by falsification of records - Whether the applicant had any direct or indirect involvement in M/s. Vikas Construction, which allegedly generated proceeds of crime - HELD THAT:- There is nothing to indicate that the applicant knowingly committed any offence as provided in Section 3 of the PMLA nor the applicant was in any way involved in the commissioning of the predicate offence and in case if the predicate offence is not made out against the applicant then proceeding under the PMLA will also....... + More

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• 2024 (5) TMI 675 - SUPREME COURT
  Seeking grant of Interim bail - challenge to arrest of Arvind Kejriwal by the Directorate of Enforcement - scope and violation of Section 19 of the Prevention of Money Laundering Act, 2002 - HELD THAT:- Power to grant interim bail is commonly exercised in a number of cases. Interim bail is granted in the facts of each case. This case is not an exception. The prosecution has rightly pointed out that the appellant Arvind Kejriwal had failed to appear in spite of nine (9) notices/summons, first of which was issued in October 2023. This is a negative factor, but there are several other facets which we are required to take into consideration. The....... + More

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• 2024 (5) TMI 674 - SC ORDER
  Money Laundering - grant of Interim bail - HELD THAT:- After issuance of warrant, the petitioner surrendered and thereafter applied for bail. Even without surrendering also, the petitioner could have applied for cancellation of warrant by giving an undertaking to the Special Court to remain present on the dates fixed before the Special Court. The petitioner has undergone incarceration for a period of 1 year and 1 month. Considering these facts, the petitioner is entitled to be enlarged on interim bail. The documents annexed to the counter affidavit, create an impression that though a complaint under Section 44(1)(d) of the PMLA Act was filed....... + More

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• 2024 (5) TMI 673 - BOMBAY HIGH COURT
  Money Laundering - Seeking quashing and setting aside of the Look Out Circular (LOC) - detention on the ground of non-cooperation - HELD THAT:- It appears that the petitioner after completing his education moved to Bahrain and has been working in Bahrain, since then. It also appears that the petitioner was issued summons by the respondent No. 1-ED, pursuant to which, he replied to the said summons, however, he could not come to India due to Covid-19 pandemic. It is also not in dispute that subsequently, in November 2020 the petitioner came to India and that he had informed the ED office of his return to India. It is also not in dispute that ....... + More

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• 2024 (5) TMI 569 - DELHI HIGH COURT
  Seeking grant of Regular bail - Money Laundering - proceeds of crime - predicate offences - scheduled offences - loan was declared as fraud on account of fudging of balance sheets - diversion of funds and related party transactions - bogus transactions relating to inventories and receivables - proceeds from the sale of inventory and realization of receivables were diverted - misappropriation of legitimate fund obtained for working capital from the bank - HELD THAT:- The Hon ble Supreme in Pavana Dibbur [ 2023 (12) TMI 49 - SUPREME COURT] was adjudicating upon an issue wherein the appellant had not been arrayed as accused in the chargesheet f....... + More

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• 2024 (5) TMI 568 - ORISSA HIGH COURT
  Money Laundering - Declination to allow exemption from personal attendance of the Petitioner by rejecting the application filed by the Petitioner under Section 205 Cr. P.C. - HELD THAT:- This Court has no hesitation in coming to a conclusion that although an application under Section 205 Cr. P.C. is maintainable in a case involving offences under the PMLA Act, 2002 and the bar under Section 45 would not be attracted to such an application, however, while exercising the discretion conferred upon the Court by Section 205 Cr. P.C., the Trial Court has to take a decision with lot of circumspection and caution. Particularly, while considering suc....... + More

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• 2024 (5) TMI 525 - JHARKHAND HIGH COURT
  Grant of bail - Money Laundering - proceeds of crime - scheduled offences - illegal mining - principles of parity - Section 45 of PML Act - HELD THAT:- It is evident that the reason for giving explanation under Section 2(1)(u) is by way of clarification to the effect that whether as per the substantive provision of Section 2(1)(u), the property derived or obtained, directly or indirectly, by any person as a result of criminal activity relating to a scheduled offence or the value of any such property or where such property is taken or held outside the country but by way of explanation the proceeds of crime has been given broader implication b....... + More

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• 2024 (5) TMI 468 - SUPREME COURT
  Money laundering - scheduled offences or not - proceeds of crime - offences under various sections of the Income-tax Act, 1961, read with Sections 120B, 191, 199, 200 and 204 of the Indian Penal Code, 1860 - offences are scheduled offences within the meaning of clause (y) of sub-Section (1) of Section 2 of the PMLA or not - HELD THAT:- The offence punishable under Section 120B of the IPC could become a scheduled offence only if the conspiracy alleged is of committing an offence which is specifically included in the Schedule to the PMLA. In this case, admittedly, the offences alleged in the complaint except Section 120-B of IPC are not the sc....... + More

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• 2024 (5) TMI 420 - BOMBAY HIGH COURT
  Seeking grant of bail on medical grounds - money laundering - Petitioner's severe health condition (duodenal cancer) and his wife s terminal illness, exacerbating his mental distress - invocation of first proviso to Section 45 (1) of PMLA - HELD THAT:- In the light of the medical record and opinions, it would be audacious to hold that the applicant is not sick. The applicant is suffering from cancer. Given the situation in life of the applicant, including his age and other ailments that he is suffering from, as well as the critical condition of the applicant s wife Anita, the applicant has not opted for the preferred treatment, which is ....... + More

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• 2024 (5) TMI 203 - DELHI HIGH COURT
  Money Laundering - scheduled offences - predicate offence - respondent nos. 1 and 2 in the scheduled offence acquitted - continuation of proceedings under the PMLA - release of properties attached by the petitioner/ED on the premise that the same are proceeds of crime - pendency of appeal preferred against the order of acquittal in the scheduled offence - HELD THAT:- The controversy articulated in the above noted two questions is no more res integra. The Hon ble Supreme Court with reference to the relevant provisions of PMLA in Vijay Madanlal Choudhry [ 2022 (7) TMI 1316 - SUPREME COURT ] has observed The offence under Section 3 of the 2002 ....... + More

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• 2024 (4) TMI 865 - PUNJAB AND HARYANA HIGH COURT
  Maintainability of the instant petition - Money Laundering - scheduled offences - predicate offence - scope and spirit of Section 482 of the Cr.P.C. - whether the ECIR can be quashed in the exercise of its inherent jurisdiction under Section 482 Cr.P.C. by this Court? - HELD THAT:- On a minute perusal of the observations of Hon ble the Supreme Court in Vijay Madanlal Choudhary s case [ 2022 (7) TMI 1316 - SUPREME COURT] , it can be safely culled that an ECIR cannot be kept at the same pedestal as an FIR. It is crucial to note that an ECIR is not registered under the Cr.P.C., unlike a First Information Report (FIR), which is mandatorily regis....... + More

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• 2024 (4) TMI 718 - DELHI HIGH COURT
  Seeking grant of pre-arrest bail - Money Laundering - predicate offence - proceeds of crime - illegal gratification - section 45 of PMLA - HELD THAT:- In the case of ROHIT TANDON VERSUS THE ENFORCEMENT DIRECTORATE [ 2017 (11) TMI 779 - SUPREME COURT ], three-judge bench of the Hon'ble Apex Court has held that such statements are admissible in nature and can make out a formidable case about involvement of accused in the offence of money laundering. Furthermore, the challenge to Section 50 of PMLA was rejected by the Hon'ble Apex Court in case of Vijay Madanlal Choudhary [ 2022 (7) TMI 1316 - SUPREME COURT] , wherein it was held that t....... + More

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• 2024 (4) TMI 689 - SC ORDER
  Money Laundering - summons issued by the petitioner, ED under Section 50 of the Prevention of Money Laundering Act, 2002 (PMLA) - HELD THAT:- From the documents produced on record today, it appears that the said respondents Collectors instead of respecting this Court s order, did not appear in person and filed their replies to the summons dated 01.03.2024 issued by the ED, stating inter alia that the information and data sought for is maintained by the other executive wings and would be required to be collected from different departments and offices located at various places and the process will require some time. When the Court had passed t....... + More

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• 2024 (4) TMI 688 - CHHATTISGARH HIGH COURT
  Seeking grant of anticipatory bail - Money Laundering - twin conditions of Section 45 of the PMLA Act satisfied or not - main accused was exonerated on identical allegations by the Adjudicating Authority - HELD THAT:- It is not in dispute that the FIR was registered on 19.02.2010 whereas the respondent filed a complaint arraying the applicant as accused in ECIR on 04.01.2021 i.e. after 10 years. From the summons issued to the applicant, it is quite vivid that she was permitted to appear through an authorized person and it cannot be said that she did not cooperate in the investigation. According to the proviso appended to Section 45 of the PM....... + More

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• 2024 (4) TMI 687 - APPELLATE TRIBUNAL UNDER SAFEMA AT NEW DELHI
  Money Laundering - Proceeds of crime - attachment of moveable property of the appellant - HELD THAT:- The perusal of the provision of Section 5 of PMLA reveal that the attachment of the property is warranted when it is involved in money laundering and the person is in possession of the proceeds of crime and such proceeds of crime are likely to be concealed, transferred or dealt with in any manner which may result in frustrating any proceedings relating to confiscation. The attachment of the property thus pre-supposes not only it to be proceeds of crime but apprehension of its concealment or transfer, etc. In the instant case, it is not in di....... + More

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• 2024 (4) TMI 686 - APPELLATE TRIBUNAL UNDER SAFEMA AT NEW DELHI
  Money Laundering - provisional attachment order - Without there being any evidence to prove a case of money laundering by the appellant, the order of attachment has been confirmed by the Adjudicating Authority - violation of principles of natural justice - HELD THAT:- As per the accounting system, payment towards the supply of material has to be made by the firm to whom supplies have been made. It cannot by a stranger firm unless proper arrangements in writing are made. The facts of this case are quite alarming. The transaction to deposit the amount in the bank account of the appellant was not under normal circumstances but was at the time o....... + More

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Case Laws - SEBI

• 2024 (5) TMI 798 - CALCUTTA HIGH COURT
  Validity of freezing the Demat Accounts of the petitioners by the Calcutta Stock Exchange (CSE) - petitioner no. 1 forms a part of the promoter group as defined under regulation 2 (1) (w) of the Securities and Exchange Board of India (SEBI) (Listing Obligations and Disclosure Requirements) Regulations, 2015 ( 2015 Regulations ) and the family of the petitioners control the management and affairs of the proforma respondent no. 5-Company. HELD THAT:- In the present case, petitioner no. 1 has subsequently issued e-mails to the respondent no. 1, showing his willingness to deposit the fines. Although no such intention appears from the conduct of ....... + More

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• 2024 (3) TMI 1183 - TELANGANA HIGH COURT
  Recovery proceedings by SEBI - Maintainability of provisions of IBC over the provisions of the SEBI Act - notice was challenged by the appellants on the ground that the same cannot be enforced as the proceedings under the Insolvency and Bankruptcy Code, 2016 and the provisions of the Provincial Insolvency Act, 1920 initiated against the appellants are pending and the orders of interim moratorium have been passed - penalty imposed and sought to be recovered from the appellants by issuing the impugned certificate fall within the meaning of fine , which is excluded under clause (a) of sub-section (15) of Section 79 of IBC and therefore, the int....... + More

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• 2024 (3) TMI 1143 - BOMBAY HIGH COURT
  Jurisdiction/ Validity of show-cause notice issued u/s 11(1), 11(2)(b), 11(4) and 11(B) of SEBI Act - as submitted show-cause notice is identical to what was issued to the Petitioner on the earlier occasion which came to be adjudicated and on which Petitioner was discharged and exonerated - Petitioner had earlier moved this Court by filing a Petition, however, the same was withdrawn by the Petitioner with liberty to approach the Security Appellate Tribunal and on such Interim Application came to be passed by the Tribunal ordered that in the interest of justice, the Respondent be directed to give an opportunity of a cross-examination and pers....... + More

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• 2024 (3) TMI 988 - BOMBAY HIGH COURT
  Rejection of Petitioner s Settlement Applications - delay on the part of the Petitioner in making compliances of submission of documents and as per the Settlement Regulations, 2018 and more particularly Regulation 6(1)(b) - Petitioner made a representation to the Respondent requesting the Respondent to consider such documents by condoning the delay, which according to the Petitioner was not attributable to the Petitioner and for reasons which where not in Petitioner s control - HELD THAT:- Certainly there was delay on the part of the Petitioner in not complying with the time lines on submission of the documents, which according to the Petiti....... + More

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• 2024 (3) TMI 868 - SUPREME COURT
  Attachment of Properties - Large-scale irregularities committed by some share brokers in collusion with the employees of Banks and Financial Institutions - diversion of funds from the banks/FIs to the individual accounts of certain brokers - Section 10 of the Special Court (Trial of Offences relating to transactions in Securities) Act, 1992 - HELD THAT:- The entire case of the Custodian regarding subsisting debts of the appellant towards respondent Nos. 6, 7 and 8 was based on a communication received from the Income Tax Department. The appropriate witness to prove such communication would be the official concerned from the Income Tax Depart....... + More

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• 2024 (2) TMI 1028 - CALCUTTA HIGH COURT
  Exit Policy of SEBI - letter issued by SEBI calling upon CSE [Calcutta Stock Exchange] to apply for voluntary exit - Exit policy of SEBI in consonance with the provisions of the SCR Act [Securities Contracts (Regulation) Act] or not? - Was the CSE obliged to apply for continuance of its clearing house business in terms of the SECC Regulations, 2012 ? - Whether steps towards compulsory withdrawal of recognition of CSE suffer from a jurisdictional error and violation of the principles of natural justice HELD THAT:- In the circular issued by the SEBI, it has been stated that the same has been issued in exercise of powers conferred under Section....... + More

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• 2024 (1) TMI 1022 - BOMBAY HIGH COURT
  Termination of petitioner as a Depository Participant of CDSL[Central Depository Services] - Requirement of meeting the net worth and minimum turnover - petitioners being required to have a turnover of Rs. 3 crores as not adhered - According to CDSL, the termination is in lieu of SEBI-2018 Regulations and more particularly the amendment brought about to the said 2018 Regulations with effect from 23 February, 2022 to Regulation 35 by insertion of a proviso inter alia in regard to a stock broker requiring to have a net worth of Rs. 3 crores within one year from the date of notification of the 2022 amendment to the 2018 Regulations - HELD THAT:....... + More

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• 2024 (1) TMI 985 - DELHI HIGH COURT
  Writ petitions impugning the Revocation Order within the territorial jurisdiction of Delhi High Court - Violation of SEBI s Minimum Public Shareholding Norms ( MPS Norms ) and disclosure requirements - SCN provided an option for settlement mechanism under the SEBI (Settlement Proceedings) Regulation, 2018 - SEBI passed a common Settlement Order as stated that certain monetary and non-monetary terms were imposed on the Appellants in the Settlement Order, and steps have been taken by the Appellants to implement the said Settlement Order - Settlement Order stood revoked and withdrawn by SEBI in terms of Regulation 28 of the Regulations of 2018 ....... + More

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• 2024 (1) TMI 734 - BOMBAY HIGH COURT
  Rights of the minority shareholders - Restoration of the Writ Petition - SEBI's Role and Response to Complaints The case involves the petitioners, who are minority shareholders of Bharat Nidhi Ltd. (BNL), filing a writ petition against BNL and the Securities and Exchange Board of India (SEBI) for various alleged violations of securities laws. The petitioners claimed that SEBI had not provided them with the investigation report or relevant documents related to their complaints against BNL, despite them being shareholders. They argued that BNL, along with majority shareholders (respondent nos. 3 to 9), committed several illegalities and vi....... + More

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• 2024 (1) TMI 588 - SC ORDER
  Issue of the Non-Convertible Debentures (NCDs) without complying with the listing provisions - Liability of directors - 'officer in default' - HELD THAT:- Learned counsel for the appellants have made an attempt to distinguish the role as assigned to the appellants as Directors. But at present, we are not influenced by such submissions. In view of the above, the civil appeals stand dismissed. Pending applications stand disposed of.

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• 2024 (1) TMI 188 - SUPREME COURT
  Violation of Rule 19A of the Securities Contracts (Regulation) Rules 1957 - failure to disclose transactions with related parties and other relevant information which concerns related parties to SEBI - Precipitate decline in investor wealth and volatility in the share market due to a fall in the share prices of the Adani Group of Companies. Adani group - situation was purportedly caused by a report which was published on 24 January 2023 by an activist short seller , Hindenburg Research about the financial transactions of the Adani group. The Hindenburg Report and certain newspaper reports allege that some Foreign Portfolio Investments FPIs i....... + More

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• 2023 (12) TMI 915 - DELHI HIGH COURT
  Determination of jurisdiction of High Court for SEBI violations - Violation of SEBI s minimum public shareholding norms and violation of SEBI s minimum public shareholding norms - Separate and independent settlement applications were also filed by respondent nos. 2 to 8 - Whether this court is the appropriate forum for deciding the present writ petitions and granting the reliefs as prayed for? - HELD THAT:- A perusal of Clause 2 of Article 226 indicates that the writ jurisdiction can be exercised by the High Court primarily in relation to the territories within which the cause of action, wholly or in part arises. However, the location of suc....... + More

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• 2023 (12) TMI 381 - THE SECURITIES APPELLATE TRIBUNAL, MUMBAI
  Power of SEBI to initiation action against Chartered Accountant (CA) / Auditor of the company - misconduct dereliction of duties and abhorrence of due diligence while conducting statutory audit - auditor as directed that the certified copy of the order be forwarded to the Institute of Chartered Accountants of India ( ICAI ) and National Financial Reporting Authority ( NFRA ) for appropriate action against the appellants - HELD THAT:- The scope of inquiry by SEBI is very limited and is confined only to the charge of conspiracy of involvement of the appellant in the fraud, if any, and to take consequential action if there is connivance or cons....... + More

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• 2023 (12) TMI 318 - SECURITIES APPELLATE TRIBUNAL MUMBAI
  Power of SEBI to initiation action against Chartered Accountant (CA) / Auditor of the company - Charge of conspiracy and involvement in the fraud against CA firm - statutory auditor working against the fiduciary capacity - appellant is a leading firm of Chartered Accountants consisting of 14 partners and 250 accountants, article assistants and others - appellant was appointed as the joint statutory auditor - appellant had acted against the fiduciary capacity and instead of working in the interest of the shareholders of the company the appellant facilitated the scheme of cleaning up the books of account of the Company despite being aware of t....... + More

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• 2023 (12) TMI 295 - SC ORDER
  Request to place on record a compilation of documents - Writ petitions by minority shareholders - HELD THAT:- This Court is apprised of the fact that the proceedings are listed tomorrow (29 November 2023) before the High Court of Judicature at Bombay. Hence, it is not necessary for this Court to entertain the Special Leave Petition at this stage, particularly bearing in mind what has been observed in paragraphs 2 and 3 of the earlier order [ 2023 (12) TMI 241 - SC ORDER] which read as follows: 2 Since the impugned orders of the High Court are purely of an interlocutory nature, we are not inclined to entertain the Special Leave Petitions unde....... + More

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• 2023 (12) TMI 260 - SECURITIES APPELLATE TRIBUNAL MUMBAI
  Unlawful gains by fraudulent and manipulative strategy made by Reliance Company - responsibility of noticee no. 2 i.e. the Managing Director - violating Section 12A of the SEBI Act r/w Regulations 3 and 4 of the SEBI PFUTP Regulations - vicarious liability on both criminal and civil liability for contravention of the SEBI Act, Rules and Regulations - Liability against violations committed by the company - WTM issued directions to disgorge the unlawful gains of Rs. 447.27 crores along with interest @12% per annum and further prohibited the Company and the 12 entities from dealing in equity derivatives in the F O segment of the stock exchanges....... + More

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• 2023 (12) TMI 241 - SC ORDER
  Request to place on record a compilation of documents - As decided by HC [ 2023 (10) TMI 1173 - BOMBAY HIGH COURT] once it is the entitlement of the petitioners in law to receive such documents, they need to be furnished such documents, unless furnishing of these documents would stand prohibited in law, which is certainly not a situation in the present facts. HELD THAT:- All material which is directed to be disclosed by the High Court shall be used only for the purpose of the proceedings pending before the High Court and shall not be disseminated to any third party. Since the impugned orders of the High Court are purely of an interlocutory n....... + More

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• 2023 (12) TMI 186 - BOMBAY HIGH COURT
  Violation of SEBI Act - validity of settlement orders, which according to the petitioners were patently illegal being beyond the authority and power of the SEBI to accept any settlement - petitioners in writ petitions are minority shareholders - case of the petitioners is to the effect that there is a severe prejudice caused to the petitioners due to several illegalities committed by BNL, at the instance of the majority shareholders who are respondent Nos. 3 to 9 - petitioners have contended that they are the victims of BNL not being listed on a recognized stock exchange, which has severely affected their interest as investors in BNL - befor....... + More

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• 2023 (12) TMI 38 - SECURITIES APPELLATE TRIBUNAL, MUMBAI
  Default of appointment of additional director in the category of non-executive independent director by way of a board resolution - person above the age of 75 years as appointed by the board of directors - non-compliance of Regulation 17(1A) of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 ( LODR Regulations for short) - whether approval is required to be taken from the shareholders of the Company through a special resolution before a person who has attained the age of 75 years can be appointed? - HELD THAT:- The board of directors can appoint any person as an additional director who shall hold office up to the ....... + More

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• 2023 (11) TMI 67 - SECURITIES APPELLATE TRIBUNAL MUMBAI
  Share manipulation - unlawful gains through disguised trading - transaction pursuant to the alleged SMS - synchronized trades, self-trades and reversal of trades thereby creating a false appearance of trading and manipulation of the trading volumes in the scrip in question - violation of Section 12A of the SEBI Act r/w Regulation 3 and 4 of the SEBI PFUTP Regulations - combined shareholding had triggered the requirement of making an open offer under Regulations 10 and 11 of the SAST Regulations as these 5 noticees were acting in concert and had failed to make an open offer thereby violating the said regulations - orders restraining the appel....... + More

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Case Laws - FEMA

• 2024 (4) TMI 660 - BOMBAY HIGH COURT
  Validity of SAFEMA proceedings - petitioners submitted that the detention order have been quashed - HELD THAT:- As respondent No. 1 does not dispute the fact, that the detention order quashed by the Delhi High Court has attained finality, inasmuch as, the Apex Court has confirmed the quashing of the detention order passed by the Delhi High Court. Also does not dispute that in view of the aforesaid, the attachment of the properties under SAFEMA, will not survive. ORDER - The impugned order passed by the Competent Authority under Sections 7 and 19 of the SAFEMA as well as the order passed by the ATFP, are quashed and set aside - SAFEMA authori....... + More

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• 2024 (4) TMI 237 - MADRAS HIGH COURT
  Adjudicating Authority under FEMA - Case of the appellants that the show cause notice having been issued by the Special Director, Directorate of Enforcement, he is the Adjudicating Authority and the further proceedings are required to be conducted by him alone and not by the Additional Director - Single Judge dismissed the writ petitions holding that the case was transferred from the Special Director to the Additional Director in view of the enhancement of pecuniary jurisdiction and the same is well within the provisions of the Act of 1999. HELD THAT:- The persona designata is a person who is described as an individual, as opposed to a perso....... + More

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• 2024 (3) TMI 600 - PUNJAB AND HARYANA HIGH COURT
  Offence under FEMA/FERA - Levy of penalty - Review petition - proceedings against matter had gone up to the Hon ble Apex Court and the SLP had been dismissed - taking or refraining from taking action which had the effect of securing receipt of the full export value of the goods exported from the country of final destination had been delayed beyond the prescribed period in contravention of Section 18 (2) of the FERA read with notification dated 01.01.1974 issued by the Central Government - penalty imposed upon the appellants and the proforma respondent vide order dated 14.07.2009 (Annexure A-4), they were directed to make a pre-deposit of 10%....... + More

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• 2024 (3) TMI 502 - TELANGANA HIGH COURT
  Violation under FERA - export proceeds were not realized - as alleged transactions A1 to A3 have contravened the provisions of Section 18(2) and 18(3) of FERA Act, 1973 for failing to take steps to realize bill value of export proceeds and A2 and A3 abetted A1 in sending said consignments towards exports and the export proceeds were not realized, which is in violation of the said provisions of FERA - According to A1, the signatures on G.R.Forms were forged by A2, as such, she cannot be held responsible for the said exports. Export transactions are apparent and they were done on behalf of A1 s firm with the involvement of A2. A3 as the Custom....... + More

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• 2024 (3) TMI 19 - SC ORDER
  Adjudication made under FEMA Act - Non issuance of show cause notice as well as non giving of an opportunity of being heard within the meaning of Section 16 of the Act r/w Rule 4(1) and 4(3) of the Rules certainly would amount to violation of principles of natural justice - as decided by HC [ 2023 (12) TMI 914 - MADRAS HIGH COURT] notice as contemplated under the Act as well as the Rules as discussed herein above have been served on these noticees and Merely because at the time of serving the notice, these noticees were not available at the address at Bengaluru would not ipso facto entile them to claim immunity that the notices served on the....... + More

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• 2024 (2) TMI 1257 - DELHI HIGH COURT
  Violation under FERA - charge u/s. 56 of FERA - Company being in Liquidation - Offences by companies u/s 68 of FERA - As submitted Company being in Liquidation and a Provisional Liquidator having been appointed for it, only the Provisional Liquidator can represent the Company in the proceedings pending before the learned ACMM and not the petitioner herein. Whether the charge against the Company can be framed through the petitioner? - HELD THAT:- As per Section 305 CrPC Procedure when corporation or registered society is an accused would show that where the accused person is a company, it may appoint a representative for the purpose of the tr....... + More

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• 2024 (1) TMI 337 - RAJASTHAN HIGH COURT
  Power of search and seizure conferred on the Directorate of Enforcement as per FEMA - validity of seizure/confiscation made by the respondents - seeking a direction to return/release the money, currency illegally confiscated/seized - HELD THAT:- The provisions of Section 132B of the Income Tax Act, 1961 inter alia provides for application of seized and requisitioned assets which provides that the assets seized may be dealt with in the manner provided therein, whereby, the amount of any existing liability and the amount of liability determined on completion of the assessment may be recovered out of such assets, however, such power is, thereaf....... + More

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• 2023 (12) TMI 914 - MADRAS HIGH COURT
  Adjudication made under FEMA Act - Non issuance of show cause notice as well as non giving of an opportunity of being heard within the meaning of Section 16 of the Act r/w Rule 4(1) and 4(3) of the Rules certainly would amount to violation of principles of natural justice - HELD THAT:- The mode of service of notice has been clearly demonstrated at Rule 14, i.e., 3 methods, namely 14(a), 14(b) and 14(c). At least Rule 14(b) and 14(c), the notices have been served on these noticees in their last known address or the address where they carried on business last. Merely because at the time of serving the notice, these noticees were not available ....... + More

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• 2023 (12) TMI 787 - DELHI HIGH COURT
  Offence under FEMA - petitioner had made foreign remittances to different foreign companies under the guise of payments against the bogus import of services and that these amounts are held outside India by the related foreign companies of the petitioner - petitioner is engaged in the business of providing unsecured short-term loans to its customers/borrowers in India via its Digital Application based platform called the CashBean - As contended that the petitioner had engaged a Hong Kong based Company, for procurement of an IP licence and had entered into a Software Licence Agreement with it for providing IP and Digital Lending Software Licen....... + More

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• 2023 (12) TMI 786 - BOMBAY HIGH COURT
  Offence under FEMA - bidding process for the IPL franchise organised by the BCCI - arrangement of the flow of funds by Respondents was made to route the investments through Mauritius as the funds flowing into India from UK was not permissible - maximum penalty imposed - Special Director indicates that although satisfaction in respect of contravention of the provisions of the FEMA has been recorded, there is no explanation or any discussion in respect of the basis on which maximum penalty has been imposed - Tribunal has recorded a that an exorbitant penalty has been imposed upon the individuals arrayed without recording any findings on the sp....... + More

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• 2023 (12) TMI 442 - MADRAS HIGH COURT
  Validity of enquiry / investigation proceedings - taking cognizance of the complaint - Investment in foreign companies - violation of Sec.4 of FEMA - Competent Authority passed orders not to seize the assets of the petitioners - as alleged assessee subscribed to 70.0 lakhs shares in certain M/s. Silver Park, a Singapore based company, registered as per the laws of Singapore, and that he had later transferred those shares to his wife and two children outside India. Adjudicatory Authority in his show cause notice has indicated that they would be proceeded against u/s 13(2) and enquiry into this is underway - Adjudicating Authority had issued a....... + More

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• 2023 (11) TMI 480 - SUPREME COURT
  Validity of order of forfeiture of properties u/s 7 of SAFEMA consequent to revocation of the detention order passed under COFEPOSA - as argued that as detention order passed u/s 3 of the Conservation of Foreign Exchange and Prevention of Smuggling Activities Act, 1974 [COFEPOSA] has been subsequently revoked/withdrawn as such SAFEMA proceedings would become non est and untenable HELD THAT:- SAFEMA was enacted to provide for the forfeiture of illegally acquired properties of smugglers and foreign exchange manipulators and for matters connected therewith or incidental thereto as such activities were having a deleterious effect on the national....... + More

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• 2023 (11) TMI 315 - MADRAS HIGH COURT
  Recovery of penalty imposed on the respondent - Validity of insolvency notice issued to the respondent - interpretation of statute - words creditor, debt and debtor as defined under Section 2A and 2B of the Presidency Town Insolvency Act should be given a restricted conventional meaning - term decree or order appearing in Section 9(2) of the Presidency Towns Insolvency Act 1909 would mean only a decree or order of a civil Court or would it include any order for payment of money passed after an adjudicatory process? - maintainability of application under Section 9(5) - Enforcement Directorate is competent to initiate proceedings in insolvency....... + More

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• 2023 (10) TMI 1118 - DELHI HIGH COURT
  Proceedings initiated u/s 56 of FERA - non issue of SCN - Violation of principle of natural justice - HELD THAT:- No complaint can be filed unless the person accused of such offence has been given an opportunity of showing that he has such requisite permission. It is clear that from the facts of this case and also not disputed by Respondent that there is no such show cause notice which was issued and served on the fresh address of the petitioner at Gurugram. That apart, it is pertinent to note that though the notice issued under proviso to Clause (ii) of sub section (2) of Section 61 FERA was not served upon the petitioner, the demand notice....... + More

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• 2023 (10) TMI 891 - DELHI HIGH COURT
  Foreign contribution utilized for undesirable purposes - Suspension of certificate - seeking Release/permit the Petitioner to utilize 25% of the total foreign contribution amount/funds held by the Petitioner u/s 13(2)(b) of the Foreign Contribution (Regulation) Act - HELD THAT:- Section 13(2) of the FCRA permits utilization of foreign contribution which is in custody of the person whose certificate has been suspended. There is no occasion to restrict the term his custody only to the current account. The amounts which are held in fixed deposits or in government bonds etc. are also unutilized foreign contributions which can be made available t....... + More

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• 2023 (10) TMI 377 - RAJASTHAN HIGH COURT
  Offence under FEMA - gold bullion of 3773.52 gm. was seized along-with other articles like electronic devices mobile phones, hard disk etc during search operations - HELD THAT:- The provisions of Section 37 of the FEMA read with Sections 132 and 132B of the Act of 1961 including its proviso clauses clearly speak that bullion, jewellery or other valuable article or thing, being stock-in-trade of the business, found as a result of such search shall not be seized but the authorized officer shall make a note or inventory of such stock-in-trade of the business. Further, where the person concerned makes an application to the AO within thirty days ....... + More

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• 2023 (10) TMI 292 - MADRAS HIGH COURT
  Stay of demand / waiver of pre-deposit - Levy of penalty - Contravention of Section 18(2) of FERA - failure to realize export proceeds to the tune of US $ 2,03,925/- - Penalties Levied - Tribunal has waived 60% of the total penalty calling upon the appellant to deposit only 40% thereof, for which a period of 30 days was granted - plea for full waiver of mandatory, statutory pre-deposit and non-compliance with an interim order of the Tribunal - HELD THAT:- Tribunal has, in waiving 60% of the penalty, and directing deposit of only 40%, taken note of all contentions of the Appellant, including the hardship projected. In fine, a balance has been....... + More

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• 2023 (10) TMI 118 - BOMBAY HIGH COURT
  Detention order - whether the inordinate delay of thirty years in the execution of the detention order is explained by the concerned authorities? - detention order indicates that the detaining authority has relied upon the search and seizure proceedings u/s 34 of the Foreign Exchange Act 1973 ( FERA ) - HELD THAT:- The detention under the COFEPOSA Act is for the purpose of preventing persons from acting in any manner prejudicial to the conservation or augmentation of foreign exchange or preventing from smuggling goods, or abetting smuggling goods, or engaging in transporting or concealing or keeping smuggled goods or dealing with the same or....... + More

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• 2023 (9) TMI 1102 - SUPREME COURT
  Offences committed under the repealed FERA Act - prosecution for the offences punishable as committed prior to the repeal of FERA - purposes of the prosecution of offences punishable under Sections 56 and 57 of FERA - HELD THAT:- What is material here is sub-section (4) of Section 49 of FEMA, which provides that subject to the provisions of sub-section (3), all offences committed under the repealed Act shall continue to be governed by the provisions of the repealed Act as if that Act had not been repealed. Sub-section (3) of Section 49 saves the prosecution for the offences punishable under Sections 56 and 57, which have been committed prior....... + More

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• 2023 (8) TMI 60 - MADRAS HIGH COURT
  Proceedings under FEMA - receiving foreign exchange in lieu of issuance of equity shares/share warrants - whether no approval has been granted by FIPB? - HELD THAT:- As clearly transpires without any semblance of doubt that the custodian general of foreign exchange is the Reserve Bank of India and any permission with regard to inflow of foreign exchange would definitely have to have the permission of the Reserve Bank of India. In the case on hand, the permission is for receiving foreign exchange in lieu of issuance of equity shares and for the said purpose, the appropriate authority to grant permission is FIPB. Newbridge, the foreign investo....... + More

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Case Laws - Service Tax

• 2024 (5) TMI 880 - SC ORDER
  Classification of services - Cargo Handling Service - it was held by CESTAT that 'even according to the revenue, the services rendered by the appellant cannot be classified under Cargo handling Service. All these factors show that there was confusion on the part of the officers also as regards the correct scope of the services being provided by the appellant.' - HELD THAT:- Appeal dismissed.

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• 2024 (5) TMI 868 - CESTAT BANGALORE
  Non-payment of service tax - Goods Transport Agency (GTA) services - Benefit of N/N. 32/2004/ST dated 03.12.2004 denied on the ground that the appellant failed to produce certificate from M/s. Devi Transports - HELD THAT:- As per the letter furnished by M/s. Devi Transporters, they have certified that they have not availed any credit under Cenvat Credit Rules for providing the Goods Transport Service to the appellant and no deduction is claimed for cost of goods used in the rendering services. Similarly as evidenced from letter issued by M/s. Ayoob Co., they also have not availed any Cenvat Credit and no deduction was claimed for cost of goo....... + More

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• 2024 (5) TMI 860 - CESTAT NEW DELHI
  Service or not - providing advisory/consultancy to M/s ACCSL and various other clients against receiving a commission from them - Business Auxiliary Service - intent to evade - Benefit of SSI exemption - extended period of limitation - penalty - HELD THAT:- The admitted activity of the appellant in the present case is providing advisory/consultancy to M/s ACCSL and various other clients against receiving a commission from them. Section 66D does not cover this activity. It becomes clear that the service rendered by the appellant is taxable service. The Notification No. 7/2003-ST dated 20.06.2003 as brought to our notice introduced levy of ser....... + More

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• 2024 (5) TMI 847 - CESTAT CHANDIGARH
  Non-payment of service tax - certain reimbursements made to the foreign entities for the services received under Reverse Charge Mechanism - Classification of services - Royalty paid by Baxter India to Baxter Healthcare Inc., USA - classifiable under 'Franchise Services' or under 'Intellectual Property Services'? - Non-payment of service tax on networking charges and technical services. Non-payment of service tax - certain reimbursements made to the foreign entities for the services received under Reverse Charge Mechanism - HELD THAT:- The appellant is rendering services to their overseas entities. Though, the services are per....... + More

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• 2024 (5) TMI 832 - CESTAT MUMBAI
  Non-payment of service - export of service - intermediary services - place of provision rules - fees received for services rendered to ESM situated in Singapore, where payment is received in foreign currency - Rule 2(f) and Rule 9(c) of the Place of Provision of Service Rules, 2012 - extended period of limitation - HELD THAT:- The definition of taxable services under the category of Ship Management Service defined under Section 65(96a) ibid included various activities including engagement or providing of ship crew. Further, such ship management service was covered specifically under the taxable clause (zzzt) of Section 65(105) ibid. Thus, it....... + More

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• 2024 (5) TMI 824 - CESTAT AHMEDABAD
  Exemption from service tax - services of laying, terrazzo flooring, Polishing and PVC Joint Strips to TATA Consultancy Ltd SEZ Park Pune - exemption was denied only for the reason that the Authorization (Form A2 ) bears the wrong address of Bangalore of the appellant - wrong address mentioned and afterwards was rectified - HELD THAT:- The undisputed fact is that the said Form A2 has been rectified and accordingly, the correct address of the appellant was mentioned in the Form A2. Therefore, after rectification it is as if the correct address has always been there in A2 Form, moreover, if at all there is lapse, it is an inadvertent mistake in....... + More

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• 2024 (5) TMI 816 - CESTAT AHMEDABAD
  Valuation of service - calculation of service tax - value of free housing/ accommodation facility provided by the appellant to the CISF personnel should be treated as additional consideration flowing to CISF and the value of such facilities need to be included in the service value or not - HELD THAT:- The matter is no longer res Integra as this Tribunal in case of M/s. CISF V/s. Commissioner of Central Excise and Service Tax, Rajkot [ 2024 (4) TMI 391 - CESTAT AHMEDABAD] has already decided the issue at hand in favour of the appellant. The impugned Order-In-Appeal is without any merit and the same aside - appeal allowed.

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• 2024 (5) TMI 809 - CESTAT AHMEDABAD
  Non-payment of Service Tax on various services provided - providing manpower supply and recruitment agency service to various parties - no proper findings given by Adjudicating Authority - violation of principles of natural justice - HELD THAT:- It is found that while confirming the service tax demand the Adjudicating Authority has not indicated any work order to prove that the activity undertaken by the appellant is in fact that of supply of manpower and recruitment agency service while the appellant is claiming that they were engaged by various parties for completion of the various job works and construction of road etc. - The Adjudicating....... + More

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• 2024 (5) TMI 807 - CESTAT KOLKATA
  Liability of appellant, as a sub-contractor, to pay Service Tax when the main contractor has paid Service Tax on the services rendered - Consulting Engineer Service - services of supervision, coordination and monitoring in respect of engineering and technical works under the Yamuna Action Plan Project - extended period of limitation - penalty - HELD THAT:- The appellant has rendered the services to M/s. Tokyo Engineer Consultants Co. Ltd. as a sub-contractor. It is on record that the main contractor has paid Service Tax on the entire bill amount. However, it is observed that the Board has issued the Circular dated 23.08.2007 wherein it has b....... + More

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• 2024 (5) TMI 803 - CESTAT KOLKATA
  Reversal of CENVAT Credit - units sold after the Completion Certificate (CC) - exempt services or not - scope of SCN - HELD THAT:- The Grounds taken by the Revenue before the Commissioner (Appeals) is not known since neither side has filed the copy of the Revenue s Review Order Order and Grounds taken by the Revenue. The Commissioner (Appeals) has passed the Order to the effect that the Appellant is not eligible to take full Cenvat Credit since they were also providing exempted service in the form of sale of units after the issuance of Completion Certificate. He has also dealt with the issue as to whether the Appellant can take the benefit o....... + More

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• 2024 (5) TMI 795 - CESTAT NEW DELHI
  CENVAT Credit - exempt service or not - amount of interest received by the appellant on the delayed payment of the amount of consideration received from the sale of flats/villas/shops - HELD THAT:- The penal interest clauses in the agreement are in the nature of providing a safeguard to the commercial interest of the contracting parties. Accordingly, in the present case, the interest amount received by the appellant is in form of compensation towards the loss suffered by the appellant due to such delayed payments on the part of the customers. Therefore, the subject amount of interest received by the appellant are merely flow of money to dete....... + More

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• 2024 (5) TMI 780 - CESTAT CHANDIGARH
  Interest on delayed refund - it is submitted that interest on refund is required to be paid from 03 months of the date of application and that interest on belated refund is a statutory mandate of law - Business Auxiliary services - export of services - HELD THAT:- The issue is squarely covered being decided by the Tribunal in the case M/S. MICROSOFT CORPORATION (I) (P) LTD. VERSUS CST. NEW DELHI [ 2014 (10) TMI 200 - CESTAT NEW DELHI (LB) ] where it was referred to third Member. The third Member has observed Having held that services involved were export of services, the same are not liable to be sustained against the appellants. The service....... + More

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• 2024 (5) TMI 777 - CESTAT AHMEDABAD
  Levy of service tax - Sale of Bought-Out Spares - contracts with a lifetime spares supply mandate - rendering service under the category of Business Auxiliary Service or not - act of selling/supplying bought out goods(spares) by the Appellant for their buyers, while selling drilling rigs and ancillary equipment produced by them - principal agent relationship or not - HELD THAT:- In the instant case supplies were made on Principal to Principal basis. There is nothing on record to show that any commission was being paid or the transaction were purely on commission basis without title to the goods undergoing a change like in case of intermediar....... + More

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• 2024 (5) TMI 770 - CESTAT CHENNAI
  Levy of service tax - Business Auxiliary Services - margin / discount / commission received by the appellant for sale of SIM cards - HELD THAT:- The very same issue was considered by the Tribunal in the case of M/S. PATWARI ELECTRICALS VERSUS COMMISSIONER OF CENTRAL EXCISE, CUSTOMS SERVICE TAX, AURANGABAD [ 2016 (5) TMI 845 - CESTAT MUMBAI] and it was held by the Tribunal that it was mere purchase and sale of SIM cards and the amount earned by the appellant cannot be subject to levy of service tax under Business Auxiliary Services. The Tribunal in the case of MESSRS HARI OM MARKETING VERSUS C.C.E. S.T. -VADODARA-I [ 2023 (6) TMI 998 - CESTAT....... + More

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• 2024 (5) TMI 768 - CESTAT AHMEDABAD
  Liability to pay Service Tax, when Central Excise duty / Sales Tax had been paid on the gross value of the purchase order for crane, including Erection/commissioning charges and transport etc. - Composite contract - decisions not examined because of non-availability of decisions at the time of passing of order - HELD THAT:- This is the matter is old and benefit of COMMISSIONER, CENTRAL EXCISE CUSTOMS VERSUS M/S LARSEN TOUBRO LTD. AND OTHERS [ 2015 (8) TMI 749 - SUPREME COURT] as well as VISHWANATH PROJECTS LIMITED VERSUS COMMISSIONER OF SERVICE TAX, HYDERABAD [ 2019 (11) TMI 675 - CESTAT HYDERABAD] by the appellant was not available to the A....... + More

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• 2024 (5) TMI 760 - CESTAT CHENNAI
  Demand of Interest - appellant has paid the service tax from July 2010 onwards though belatedly - construction of residential complex and sale thereon - period from April 2009 to June 2010 - HELD THAT:- The Board vide circular No.108/02/2009 dt. 29.1.2009 has clarified that a builder/promoter/developer is not liable to pay service tax prior to 1.7.2010. The said issue has been decided by the Tribunal in the case of Krishna Homes [ 2014 (3) TMI 694 - CESTAT AHMEDABAD] . In the said case, the Tribunal has applied Board s circular and discussed the very same issue after taking note of the Explanation introduced in Section 65 (105) (zzzh) of the....... + More

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• 2024 (5) TMI 751 - DELHI HIGH COURT
  Dismissal of application for restoration of the statutory appeal along with costs - CESTAT could not be informed of the deposit having been made - HELD THAT:- Undisputedly the direction for affecting pre-deposits had been duly complied with albeit with a delay of 9 days. The writ petitioner should have consequently been candid enough to admit to the aforesaid facts while moving the CESTAT for restoration. However, and bearing in mind the larger interest of justice, it is opined that the appeal itself may be restored on the Board of the CESTAT bearing in mind the undisputed position that the condition of pre-deposit has been duly complied wit....... + More

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• 2024 (5) TMI 738 - CESTAT AHMEDABAD
  Exemption from service tax - service provided to non- Government Organization which are not engaged in any commercial activities - construction of staff quarters by the appellants/respondents for M/s. Gujarat State Police Housing cooperation Limited - HELD THAT:- This issue has already been decided by this Tribunal in case of RD CONTRACTOR COMPANY VERSUS COMMISSIONER OF CENTRAL EXCISE ST, ANAND (VICE-VERSA) [ 2023 (2) TMI 946 - CESTAT AHMEDABAD ] where it was held that 'This very issue pertains to Gujarat State Police Housing Corporation Limited has been considered by this Tribunal in SHRI S. KADIRVEL VERSUS CCE ST, TRICHY [ 2018 (6) TMI....... + More

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• 2024 (5) TMI 723 - CESTAT MUMBAI
  Levy of service tax - Business Auxiliary Service - freight margin recovered by the noticee from their customers - intermediary services or not - place of provision of services - invocation of extended period of limitation - HELD THAT:- From plain reading of the legal provisions relating to Place of Provision of Services Rules, 2012 it clearly transpires that the place of provision of service in general has been specified under Rule 3 ibid, and in specific situations such as place of provision of performance-based services, provision of services relating to immovable property, provision of services relating to events, services provided at mor....... + More

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• 2024 (5) TMI 672 - CESTAT AHMEDABAD
  Levy of Service tax - Clearing and Forwarding Agent Service - place of provision of services - difference in expenses which has been incurred by the appellant - Department observed that freight income as being expenses incurred towards freight expenses were less than freight charged by the appellant from their customers - post negative period of service tax - HELD THAT:- The appellant would enter into an agreement with the carrier for transportation of cargo i.e. airline/shipping line. This service agreement would be on principal to principal basis and not as agent of said airline/shipping line. Therefore, applicant would be covered by the e....... + More

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Case Laws - Central Excise

• 2024 (5) TMI 857 - CESTAT NEW DELHI
  Non/short payment of central excise duty - clearance of resin - exemption under N/N. 03/2005 dated 24.02.2005 or not - HELD THAT:- The product of the appellant was exempted from the payment of central excise duty vide Notification No. 03/2005 dated 24.02.2005 up to 28.02.2006 where after the subsequent Notification No. 07/2006 dated 01.03.2006 had withdrawn the said notification. The later notification was challenged by others involved in manufacture of the impugned resins before the Hon ble High Court of Uttarakhand. The Division Bench of Hon ble Uttarakhand High Court in Commissioner Central Excise Customs Versus M/s Dujodwala Resins Terpe....... + More

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• 2024 (5) TMI 849 - CESTAT AHMEDABAD
  Reversal of accumulated Cenvat credit under Rule 11 (3) of Cenvat Credit Rules, 2004 - lapse of accumulated unutilized Cenvat credit balance by availing N/N. 30/2004-CE in terms of Rule 11 (3) of Cenvat Credit Rules, 2004 - manufacture of excisable goods texturized polyester yarn falling under 5402 of the first schedule of tariff act, 1985 and is availing Cenvat credit under Cenvat Credit Rules, 2004 - HELD THAT:- From the Rule 11 (3) (ii) it can be seen that the provision of lapsing of credit is applicable only in the case where the assessee avails the absolute exemption notification. In the present case, the respondent has admittedly avail....... + More

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• 2024 (5) TMI 830 - SC ORDER
  Condonation of delay of 445 days in filing this civil appeal - sufficient cause for delay or not - HELD THAT:- The reasons assigned are not satisfactory so as to make out a case for sufficient cause for condonation of the delay. Hence, the application seeking condonation of delay is dismissed. The appeal is dismissed on the ground of delay.

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• 2024 (5) TMI 819 - CESTAT NEW DELHI
  Recovery of central excise duty - proviso to section 11A of the Central Excise Act, 1944 with interest and penalty - HELD THAT:- The date 10.05.2022 has been wrongly mentioned instead of 25.07.2022. The rest of the averments in the said paragraph are the averments that are contained in the order dated 25.07.2022 - It is, therefore, more than apparent that the matter was heard by the Additional Commissioner on 25.07.2022 and not by Principal Commissioner, but the order has been passed by the Principal Commissioner. This clearly defies all principles of natural justice. The officer who was required to adjudicate the show cause notice should ha....... + More

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• 2024 (5) TMI 810 - CESTAT AHMEDABAD
  Valuation - Inclusion of equalized handling charges from their customers on excisable goods in the assessable value - HELD THAT:- This very issue in the appellant s sister concern i.e. MESSRS MIRA INDUSTRIES VERSUS C.C.E. -AHMEDABAD-II [ 2023 (4) TMI 655 - CESTAT AHMEDABAD] this Tribunal has taken a view that the handling charges recovered from the customers is not includible in the assessable value. The facts of the above case and the case in hand are absolutely identical. Therefore, following the judgment of Mira Industries, in the present cases the handling charges is not includible in the assessable value of the excisable goods. Accordin....... + More

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• 2024 (5) TMI 805 - CESTAT CHANDIGARH
  Abatement of appeal - Resolution Plan approved by NCLT - recovery of CENVAT Credit with interest and penalties - HELD THAT:- The identical matter has been considered by two coordinate benches of the Tribunal in the case of M/s Jet Airways (India) Limited vs. Commissioner of Service Tax-IV [ 2023 (5) TMI 767 - CESTAT MUMBAI] and Hyderabad Bench in the case of Icomm Tele Ltd. vs. Commissioner of Central Tax, Puducherry [ 2023 (10) TMI 1344 - CESTAT HYDERABAD] . It is pertinent to refer the findings of Mumbai Bench of the Tribunal in the case of M/s Jet Airways (India) Limited [ 2023 (5) TMI 767 - CESTAT MUMBAI] which was disposed of and it was....... + More

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• 2024 (5) TMI 804 - CESTAT AHMEDABAD
  Abatement claim - entire manufacturing process in the factory has remained closed for the period from 17.10.2014 to 31.10.2014 - Rule 10 of the Chewing Tobacco and Unmanufactured Tobacco Packing Machines (Capacity Determination and Collection of Duty) Rules - HELD THAT:- Firstly there is no denying of the fact that the manufactured goods which were in the stock were duty paid goods and the Rule 10 only provides a facility that if the assessee has any order pending for dispatch of the goods in that case they are free to clear the goods within the first two days, it has not been stipulated that all the goods which are manufactured and pending ....... + More

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• 2024 (5) TMI 800 - CESTAT CHANDIGARH
  Area based exemption - subsequent demand of duty after disallowing the benefit of area based exemption under Notification No. 49-50/2003-CE - demand alongwith interst and penalty - HELD THAT:- The identical issue has been considered by the Tribunal in the appellant s own case M/S AGV FENESTRATION PVT LTD VERSUS CCE-CHANDIGARH-I [ 2023 (12) TMI 563 - CESTAT CHANDIGARH ] and this Tribunal after considering all the submissions of both the parties has held that the appellant are entitled to the benefit of Notification No. 50/2003-CE dated 10.06.2003 for the period 20.06.2009 to 21.03.2010 - It was held in the case that the denial of benefit of n....... + More

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• 2024 (5) TMI 799 - CESTAT AHMEDABAD
  Levy of Central Excise Duty - product of the appellant namely Sulphur 90% WG with the brand name of CosavetFertis is a manufactured goods or not - HELD THAT:- Reliance placed in the case of C.C. E-BHARUCH VERSUS SULPHUR MILLS LTD [ 2022 (10) TMI 732 - CESTAT AHMEDABAD] where it was held that The nature and composition of the materials (including Sulphur 99%) procured and used by the Respondent are the same, the process undertaken and the chemicals added to Sulphur 99% are the same; the nature as well as composition and use of the products obtained by the Respondent i.e Casvet Fertis- WG are the same, the structures of Chapter 25,38 and 31 of....... + More

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• 2024 (5) TMI 785 - CESTAT AHMEDABAD
  Exemption of sugar cess under Notification No. 42/2001-CE (NT) dated 26.06.2001 for export of sugar - Department has raised the demand of sugar cess on the ground that the appellant cannot be escaped from the payment of sugar cess on export of sugar as the same is not covered under the Notification No. 42/2001-CE (NT) on the ground that the sugar cess is not an excise duty. HELD THAT:- As per the Sugar Cess Act, 1982 the sugar cess is payable as per the provisions of sugar cess act which mandates that cess will be levied and collected as duty of excise on all sugar produced by any sugar factory in India. Sub- section 4 of the act also provid....... + More

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• 2024 (5) TMI 776 - CESTAT AHMEDABAD
  Method of Valuation - Rule 8 of the Central Excise Valuation Rules, 2000 at 110% of the cost of production or under Rule 4 of the Central Excise Valuation Rules, 2000 at the value at which same goods are cleared to independent buyers? - goods cleared to sister unit for captive consumption - period prior to December 2013 - revenue neutrality - suppression of facts or not - extended period of limitation - HELD THAT:- This appeal can be disposed of on limitation itself without going into the merits of the case. It is found that as per the department the issue on merit is that the appellant was supposed to pay the excise duty on the goods cleare....... + More

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• 2024 (5) TMI 775 - CESTAT ALLAHABAD
  Refund of CENVAT Credit alongwith interest from the date the amount was debited/pre-deposited till the date it was refunded - suo moto re-credit of amount in question in the CENVAT account - HELD THAT:- Although the Appellant re-credited the amount of Rs. 41,28,106 debited on 12.11.2014, in their credit account on 31.05.2016, yet they again debited this amount in two installments i.e. Rs. 10,50,000 was debited vide RG-23A Pt-Il entry No. 61 dt.31.12.2016 and the remaining amount of Rs. 30,78,105 was debited vide Entry No. 78 dated 31.01.2017 of RG-23A Pt-II, at the insistence of the department. The department collected interest of Rs.1,20,50....... + More

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• 2024 (5) TMI 771 - CESTAT CHENNAI
  Method of valuation - Section 4 or Section 4A of the Central Excise Act - shampoos in packing of more than 10ml as well as less than 10ml - requirement of affixing the MRP on the sachets as per Rule 26 (a) of LMPCR, 2011 - HELD THAT:- The Tribunal has considered the issue in the case of SARVOTHAM CARE LTD. VERSUS COMMISSIONER OF CUS. C. EX., HYDERABAD [ 2013 (4) TMI 505 - CESTAT BANGALORE] and held that the valuation adopted under Section 4 of the Central Excise Act, 1944 is correct. Further, in the appellant s own case M/S. HINDUSTAN UNILEVER LTD. VERSUS COMMISSIONER OF GST CENTRAL EXCISE [ 2020 (2) TMI 182 - CESTAT CHENNAI] , the Tribunal ....... + More

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• 2024 (5) TMI 767 - CESTAT AHMEDABAD
  Refund of CVD and SAD in respect of payment of custom duty for regularizing excess import under advance authorization prior to introduction of GST regime - duty liability was finalized and paid after the introduction of GST - CVD and SAD was paid by the appellant on their own suo moto in order to regularize excess import qua export obligation fulfillment - HELD THAT:- From the reading of the Section 142 (3) of CGST, 2017, it is clear that an assessee who is eligible for cenvat credit and unable to take the credit due to CGST regime after 01.07.2017 shall be eligible for the cash refund. In the present case the CVD and SAD was paid which is a....... + More

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• 2024 (5) TMI 759 - GUJARAT HIGH COURT
  Charge of Interest under Rule 57AH of Central Excise Rules 1944 (now Rule 12 of the Central Excise Rules, 2002) on the credit wrongly taken - HELD THAT:- This Court in case of Commissioner of Central Excise vs. Gupta Steel [ 2006 (4) TMI 158 - HIGH COURT OF GUJARAT AT AHMEDABAD ] while dealing with a similar question has held that ' charging of interest on the amount of credit lying unutilized is not correct in law. We, therefore hold that the applicants are not liable to pay interest on the Amount of credit, which was lying unutilized and which has been ordered to be reversed'. Thus, no question of law much-less any substantial ques....... + More

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• 2024 (5) TMI 666 - PUNJAB & HARYANA HIGH COURT
  Liability to pay fine and penalty under Rule 25(1)(b) of the Central Excise Rules, 2002 - Clandestine removal - Mens rea - existence of evidences or not - applicability of presumption of Section 11AC of CEA - HELD THAT:- Hon ble Supreme Court in the case of Commissioner of Central Excise, Chandigarh Vs. Pepsi Foods Limited [ 2010 (12) TMI 15 - SUPREME COURT] , held ' It is well settled that when the statutes create an offence and an ingredient of the offence is a deliberate attempt to evade duty either by fraud or misrepresentation, the statute requires mens rea as a necessary constituent of such an offence. But when factually no fraud o....... + More

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• 2024 (5) TMI 665 - CESTAT CHANDIGARH
  CENVAT Credit - inputs used in the manufacture of both e-bikes (exempt) and e-bikes parts (taxable) are common - applicability of Rule 6(3) of the Cenvat Credit Rules, 2004 or Rule 11(3) of the Cenvat Credit Rules, 2004 - HELD THAT:- This issue is no longer res integra being decided in favour of the appellant by this Bench of the Tribunal in M/S AVON CYCLES LIMITED AND M/S HERO CYCLES LIMITED VERSUS C.C.E, LUDHIANA [ 2016 (9) TMI 628 - CESTAT CHANDIGARH] where the appellant was manufacturing both exempted goods i.e. the e-bikes and dutiable goods i.e. the parts of e-bikes; it is not the case of the Department that the appellant is only manuf....... + More

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• 2024 (5) TMI 618 - CESTAT ALLAHABAD
  CENVAT Credit of service tax paid - services used for repairs and renovation of the factory - period from December, 2015 to June, 2017 - HELD THAT:- The Appellant had taken Cenvat credit on Civil Construction Work on account of maintenance repairs work of the factory which was done for smooth running of the plant. In view of the Board s Circular No.943/4/2011-CX dated 29.04.2011, it is found that the Cenvat credit involved in the dispute is related to the service tax paid on services used for repairs and renovation of the factory and as such is eligible as Cenvat credit. It is also found that the definition of input services as contained in ....... + More

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• 2024 (5) TMI 617 - CESTAT KOLKATA
  Denial of CENVAT Credit - Corroborative evidences or not - entire proceedings have been initiated against the appellant solely on the basis of the allegations against M/s. V.K. Metal Works that they did not manufacture the goods and hence they could not have supplied the goods - interest and penalty - HELD THAT:- The Department has not brought in any evidence to substantiate the allegation that the appellant has received only invoices without actual receipt of the goods. The denial of credit only on the basis of the proceedings initiated against M/s. V.K. Metal Works, the supplier, is not sustainable without any corroborative evidence. Furth....... + More

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• 2024 (5) TMI 616 - CESTAT HYDERABAD
  Demand of differential Central Excise Duty with interest and penalty - inflating freight charges through their dummy transport unit - reduction in the assessable value within the average composite price paid by oil companies - contravention of proviso to Section 4(1)(b) of Central Excise Act, 1944 read with Rule 5 of Central Excise Valuation (Determination of price of Excisable Goods) Rules, 2000, Rules 4, 6, 8 and 11 of Central Excise Rules, 2002 - HELD THAT:- In view of the settled decision of law and the judgment of this Tribunal in MM Cylinders [ 2011 (9) TMI 779 - CESTAT, BANGALORE] being confirmed by Hon ble Supreme Court in MM Cylinde....... + More

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Case Laws - Vat / CST

• 2024 (5) TMI 841 - ALLAHABAD HIGH COURT
  Validity of reassessment order - disallowance of ITC claim - purchase of various raw materials to manufacture 'Mentha Oil' - 'reason to believe' to reassess the petitioner was founded on the fact that the petitioner had sold 'Mentha Oil' in the course of export, against statutory 'Form I' issued under the Central Sales Tax Act 1956 - HELD THAT:- Plainly, ITC is not part of determination of turnover or tax liablity. On the contrary, it is an allowance that arises to certain dealers in the prescribed manner, upon fulfillment of specified circumstances. That amount may be corrected both at the instance of the ass....... + More

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• 2024 (5) TMI 722 - ANDHRA PRADESH HIGH COURT
  Violation of principles of natural justice - reliance to be placed on the report of the Commercial Tax Department at Bombay without affording an opportunity to the petitioner to cross-examine the Officers of Commercial Tax Department of the reports at Bombay - HELD THAT:- In Shalini Steels Pvt. Ltd. [ 2011 (2) TMI 554 - ANDHRA PRADESH HIGH COURT ], the Andhra Pradesh High Court held that the cross-examination of a witness, on whose statement reliance is placed by the adjudicating authority, is no doubt a facet of the principles of natural justice, however, natural justice is no unruly horse, no lurking landmine, nor a judicial cure-all. If f....... + More

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• 2024 (5) TMI 721 - MADRAS HIGH COURT
  Levy of penalty under Section 27(3) of the TNVAT Act - requirement of adding gross profit and freight charges to the purchase value - difference between the sales turnover reported by the petitioner and the purchase turnover reported by its customer - violation of principles of natural justice - HELD THAT:- There is no finding of wilful non-disclosure of assessable turnover for levy of penalty, independent of the fact, that the turnover was found to have been suppressed resulting in best judgment assessment and levy of tax - The failure to examine / render a finding as to the existence of the jurisdictional fact viz., wilful non-disclosure o....... + More

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• 2024 (5) TMI 720 - ANDHRA PRADESH HIGH COURT
  Classification of goods - HDPE woven sacks - articles of plastics falling under Item No. 187 of the I Schedule or fall under item No. 5 of the IV Schedule? - exemption from sales tax as covered by item 5 of IV schedule to APGST Act. Whether the disputed turnovers relating to the sale of HDPE woven sacks is entitled for exemption from sales tax as covered by item 5 of IV schedule to APGST Act? - HELD THAT:- The HDPE Woven Fabrics even if included in the I Schedule under the head and sub head, entry No. 59.03 with nil rate , may be subject to or liable for the additional duties to be levied under that Act No. 58 of 1957, but, unless and until ....... + More

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• 2024 (5) TMI 664 - BOMBAY HIGH COURT
  Maintainability of petition - alternate and efficacious remedy of an appeal - Refusal to admit an appeal filed under Section 55 of the Goa Value Added Tax Act, 2005 after rejecting the Petitioner's application for condonation of delay in filing the appeal - HELD THAT:- The procedure to file an appeal is provided in Rule 33 of the VAT Rules which requires the memorandum of appeal to be accompanied by a certified copy of the order appealed against, whether in the case of a first appeal or a second appeal before the Tribunal. Sub-Section 1 of Section 35 however states that the appeal may be filed to the Appellate Authority prescribed under ....... + More

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• 2024 (5) TMI 663 - ANDHRA PRADESH HIGH COURT
  Jurisdiction - power of revision under Section 32 (2) of the Andhra Pradesh Value Added Tax Act, 2005 - error apparent on the face of record or not - HELD THAT:- In Sanjay Kumar Agarwal v. State Tax Officer [ 2023 (11) TMI 54 - SUPREME COURT ] on considering various pronouncements on the subject, the Hon ble Apex Court summarized the gist on the scope of review, holding that ' An error which is not self-evident and has to be detected by a process of reasoning, can hardly be said to be an error apparent on the face of record justifying the court to exercise its power of review.' There are no apparent error in the Judgment under challe....... + More

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• 2024 (5) TMI 662 - ANDHRA PRADESH HIGH COURT
  Exemption from tax - Levy of turnover tax under Section 5-A (vi) of the APGST Act - second sales of Pulp Moulded Egg Trays which fell under Item 19 of the First Schedule - G.O. Ms. No. 1091 dated 31.10.1994 under Section 9 (1) of the APGST Act, 1957 grants general exemption, from levy of turnover tax under Section 5A (1) 2nd proviso (vi) of the APGST Act, 1957 on the sales of Pulp Moulded Egg Trays manufactured by Small-Scale Industrial Units or not - exemption on the sale of Pulp Moulded Egg Trays manufactured by S.S.I is available to the manufacturing unit alone or it would also be available to the sales of such commodity by other Small-Sc....... + More

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• 2024 (5) TMI 615 - UTTARAKHAND HIGH COURT
  Classification of goods - rate of tax - Nylon Chips - plastic granules or not - absence of Form-C and F - to be classified under Section 29 (1) (c) of Uttarakhand Value Added Tax Act - re-assessment on the basis of change of opinion - Extended period of Limitation - HELD THAT:- In the present case, the department has taken a different view by changing the nature of the product, and not on account of wrong application of rates. Re- assessment, in such type of situation, is prohibited. The assessment order was a clear change of opinion, and was not under Section 29 (1) (c). The other ground taken by the respondent was that the impugned order w....... + More

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• 2024 (5) TMI 409 - ALLAHABAD HIGH COURT
  Waiver of penalties imposed for late deposit of tax u/s 54(1)(1)(a) of the U.P. V.A.T Act, 2008 - application for waiver were rejected by Revenue - opportunity of hearing not granted - violation of principles of natural justice - HELD THAT:- The orders passed by the revenue authorities appear to be defective. While the petitioner may be allowed to amend the writ petition and formally seek proper relief, it is also noted that the above orders have been passed by the revenue authorities without affording opportunity of hearing to the petitioner. Thus, no useful purpose may be served in keeping the writ petition pending or calling for Counter A....... + More

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• 2024 (5) TMI 360 - ANDHRA PRADESH HIGH COURT
  Exemption from Tax - Classification of goods sold - emery cloth - unclassified item or not - tarpaulins - cotton fabrics or not - covered by item-174 of First Schedule to APGST Act or not - whether the first sales of emery cloth and tarpaulins are not excisable to the tax under APGST Act? - HELD THAT:- In Feno Plast Pvt. Ltd. [ 1994 (12) TMI 309 - ANDHRA PRADESH HIGH COURT] it has been held that the words cotton fabrics, man-made fabrics and woolen fabrics in item-5 must therefore be read as item-59.03 of the First Schedule to the Additional Duties Act 1957, which refers to textile fabrics, impregnated cloth-covered or laminated. It is evide....... + More

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• 2024 (5) TMI 323 - DELHI HIGH COURT
  Computation/quantification of interest on the delayed refund in terms of Section 42 of Delhi Value Added Tax Act, 2017 w.e.f. 01.06.2015 - Time Limitation - expiry of two months from the date of filing of refund of the application till 23.05.2023 when the refund was disbursed to the petitioner - HELD THAT:- Section 42 (1) of the Act mandates grant of simple interest at the annual rate notified by the Government from time to time, to a person who is found entitled to refund in case of any delayed payment. In the instant case, refund has been sanctioned without any interest. It is an admitted position that annual rate notified by the Governmen....... + More

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• 2024 (5) TMI 188 - BOMBAY HIGH COURT
  Attachment by the sales tax authorities over an apartment in Mumbai - priority of charges - whether as a matter of law, the Petitioner, the auction purchaser of the Walkeshwar Flat under the SARFAESI Act, is a valid recipient of free and marketable title to it? - HELD THAT:- The Lender Bank had first priority in enforcement against the Walkeshwar Flat with effect from 24th January, 2020, having been the first to register with CERSAI, which was done on 2nd January, 2020 - Encore ARC, which conducted the auction on 28th February, 2023, acquired the entitlement to priority from the Lender Bank along with the assignment of the loans to the borro....... + More

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• 2024 (5) TMI 123 - SUPREME COURT
  Recovery of dues by adjusting them against the refund amount - Delay in processing refund - The default notices were issued after the period within which the refund should have been processed - requirement to follow timeline for refund under Section 38(3) of the Delhi Value Added Tax Act, 2004 - HELD THAT:- The language of Section 38(3) is mandatory and the department must adhere to the timeline stipulated therein to fulfil the object of the provision, which is to ensure that refunds are processed and issued in a timely manner. In the present case, Section 38(3)(a)(ii) is relevant as both the refunds in the present case pertain to quarter ta....... + More

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• 2024 (5) TMI 122 - MADRAS HIGH COURT
  Condonation of delay in filing petition - Belated writ petition - by oversight Vakalat was not filed - appellate Tribunal by two separate cryptic orders has allowed the appeals filed by the Commercial Tax Department - HELD THAT:- Although there is a delay in approaching this Court, the substantive right of an assessee cannot be denied, particularly in a peremptory manner by passing a cryptic order. The dismissal of the application for restoring the appeal and allowing the appeal of the Commercial Tax Department without any reasonings especially when the order of the Appellate Commissioner is detailed has to be construed as an arbitrary order....... + More

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• 2024 (5) TMI 61 - BOMBAY HIGH COURT
  Recovery of Tax Dues versus Secured Creditors - Continued assertion of rights by the State of Maharashtra against the purchaser of two properties auctioned - priority of security interest and its enforcement over the Secured Assets - enforcement of a mortgage created by an erstwhile owner of the properties - HELD THAT:- Once an enforcement of a security interest is effected against a secured asset, the enforcement of the subsequently registered security interest would lead to an entitlement to any surplus or residual proceeds arising out of the enforcement of the prior security interest, and by no stretch could the subservient security inter....... + More

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• 2024 (5) TMI 2 - SC ORDER
  Permission for withdrawal of petition - new management of the petitioner will not be held responsible for any outstanding statutory dues and other claims for the period prior to the commencement of CIRP - HELD THAT:- Bearing in mind the developments that have taken place in the matter, the Special Leave Petition stands disposed of as having become infructuous - The Special Leave Petition is, accordingly, disposed of as withdrawn.

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• 2024 (4) TMI 1035 - SUPREME COURT
  Penalty for diversion and unlawful sale of foreign liquor - Applicability of the relevant rule for imposition of penalty - whether it is the rule that existed when the violation occurred during the license period of 2009-10 or the rule that was substituted in 2011 when proceedings for penalty were initiated? - HELD THAT:- The operation of repeal or substitution of a statutory provision is thus clear, a repealed provision will cease to operate from the date of repeal and the substituted provision will commence to operate from the date of its substitution. This principle is subject to specific statutory prescription. Statute can enable the rep....... + More

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• 2024 (4) TMI 957 - ANDHRA PRADESH HIGH COURT
  Validity of assessment order - Levy of penalty u/s 53(1)(ii) of the AP VAT Act - wilful evasion of tax or not - SCN also do not categorically mention that it was a case of wilful evasion of tax - SCN barred by time limitation - Section 21(4) of AP VAT Act, 2005 - HELD THAT:- As seen from the show cause notice dated 24.06.2021 there is a mention of under declaration of 14.5% purchases during the year 2016-17. It is also mentioned that penalty proceedings would also be issued separately as the dealer was found to have committed offence under the provision of AP VAT Act. In the revised show cause notice also it is mentioned that the petitioner ....... + More

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• 2024 (4) TMI 956 - DELHI HIGH COURT
  Interest on delayed refund - relevant period for calculation of refund - Section 42(1) of the DVAT ACT, 2004 - HELD THAT:- Reference may be had to Article 25 of the Schedule to the Limitation Act, which stipulates that the period of limitation for money payable for interest upon money due from defendant to the plaintiff is 3 years and the time from which the period begins is when the interest becomes due. The petitioner would be entitled to interest for a period of three years immediately preceding the filing of the subject petition till the date payment was made of the petitioner. The rate of interest applicable would be @ 6 % per annum in ....... + More

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• 2024 (4) TMI 955 - UTTARAKHAND HIGH COURT
  Time limitation for passing assessment order - Classification of goods - Polymer Nylon Chips - classifiable under Entry 83 Schedule-II(B) of the Uttarakhand Value Added Tax Act, as Plastic Granules or not - whether re-assessment, under Section 29(4) of the Act could be made on the change of opinion, especially keeping in view that the same records had already been scrutinized by the Assessing Authority? Time limitation for passing assessment order - HELD THAT:- As per Section 29(7) of the U.P. Commercial Tax Act, reassessment can be made within a period of 8 years after expiry of the Assessment Year. In the present case, as per the Uttarakha....... + More

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Case Laws - Indian Laws

• 2024 (5) TMI 844 - SUPREME COURT
  Legality and validity of the order of termination of the arbitral proceedings under clause (c) of subsection (2) of Section 32 of the Arbitration and Conciliation Act, 1996 - abandonment of claim filed before the learned Arbitrator - HELD THAT:- It is held and concluded as follows: a. The power under clause (c) of subsection (2) of Section 32 of the Arbitration Act can be exercised only if, for some reason, the continuation of proceedings has become unnecessary or impossible. Unless the Arbitral Tribunal records its satisfaction based on the material on record that proceedings have become unnecessary or impossible, the power under clause (c)....... + More

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• 2024 (5) TMI 831 - SUPREME COURT
  Invocation of constitutional jurisdiction under Article 32 - seeking directions relating to the conservation of the species - HELD THAT:- The right to a healthy environment encapsulates the principle that every individual has the entitlement to live in an environment that is clean, safe, and conducive to their well-being. By recognizing the right to a healthy environment and the right to be free from the adverse effects of climate change, states are compelled to prioritize environmental protection and sustainable development, thereby addressing the root causes of climate change and safeguarding the wellbeing of present and future generations....... + More

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• 2024 (5) TMI 793 - DELHI HIGH COURT
  Dishonour of Cheque - vicarious liability - demand notice not addressed to the petitioners in their individual capacity - Proviso (b) to Section 138 of the NI Act - proceedings can be initiated against all the Trustees of a Trust or not - Section 141 of the NI Act - HELD THAT:- Proviso (b) to Section 138 of the NI Act read with Section 142 of the NI Act shows that for the maintainability of a complaint for an offence under Section 138 of the NI Act, the payee or the holder in due course of the cheque, as the case may be, should make a demand for the payment of the said amount of money by giving a notice in writing to the drawer of the cheque....... + More

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• 2024 (5) TMI 790 - SUPREME COURT
  Defreezing of bank accounts - Scope of the Expression Forthwith - delay on part of the police in reporting the seizure to the jurisdictional Magistrate - HELD THAT:- In deciding whether the police officer has properly discharged his obligation under Section 102(3) Cr.P.C., the Magistrate would have to, firstly, examine whether the seizure was reported forthwith. In doing so, it ought to have regard to the interpretation of the expression, forthwith . If it finds that the report was not sent forthwith, then it must examine whether there is any explanation offered in support of the delay. If the Magistrate finds that the delay has been properl....... + More

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• 2024 (5) TMI 772 - JHARKHAND HIGH COURT
  Dishonour of Cheque - whether filing of a premature complaint debars, filing of a fresh complaint when the time becomes ripe to file the complaint? - HELD THAT:- The answer to the question is no more res integra as the Hon ble Supreme Court of India in the case of YOGENDRA PRATAP SINGH VERSUS SAVITRI PANDEY ANR. [ 2014 (9) TMI 1129 - SUPREME COURT ] which was also relied upon by the Hon ble Supreme Court of India in the case of Gajanad Burange vs. Laxmi Chand Goyal [ 2022 (9) TMI 213 - SC ORDER ] wherein the Hon ble Supreme Court has categorically observed that in case of a premature complaint in a case involving the offence punishable under....... + More

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• 2024 (5) TMI 737 - CALCUTTA HIGH COURT
  Special Package of Incentives - Imposition of cap on the total IPA allowable in respect of a unit based on Fixed Capital Investment - Whether the Special Package of Incentives granted in favour of ACL stipulated any overall financial cap based on Fixed Capital Investment for release of IPA? - HELD THAT:- ACL claims to have commenced its commercial production with effect from May 31, 2007. Eligibility Certificate for Incentives for Mega Project under the WBIS, 2000 appears to have been issued on May 18, 2010 by WBIDS in favour of ACL. Clause (b) of the Eligibility certificate dated May 18, 2010 states that the IPA @ 75% of VAT and CST paid in....... + More

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• 2024 (5) TMI 736 - ALLAHABAD HIGH COURT
  Dishonour of Cheque - requirement to deposit a minimum of 20% of the fine or compensation - speedy disposal of cases relating to dishonor of cheques so as to see that due to delay tactics by unscrupulous drawers of dishonored cheques due to easy filing of appeals and obtaining stay in proceedings - Section 148 of The Negotiable Instruments Act 1881 - HELD THAT:- It would be relevant to discuss Section 148 of The Negotiable Instruments Act 1881, which has been inserted in the Act through Negotiable Instruments (Amendment) Act, 2018 (Act No 20 of 2018) to provide, inter alia, speedy disposal of cases relating to dishonor of cheques so as to se....... + More

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• 2024 (5) TMI 661 - SUPREME COURT
  Dishonour of Cheque - insufficiency of funds - cheque issued in discharge of a debt or not - rebuttal of presumption in terms of Section 118 read with Section 139 of NI Act - HELD THAT:- The High Court found that the debt/liability, in discharge of which, according to the petitioner, the cheques were issued, did not reflect in the petitioner s balance-sheet. The other partners of the firm did not depose as prosecution witnesses to establish that the cheque-amounts were advanced to the accused as financial assistance. The respondent no.1/accused has put up a plausible defence as regards the reason for which the petitioner s funds had come to ....... + More

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• 2024 (5) TMI 660 - SUPREME COURT
  Restoration of securities held by the appellant which were allegedly illegally sold by the respondent-firm - HELD THAT:- The fact remains that as on 9th May, 2017, the respondent was liable to pay a sum of Rs.21,70,143/- which the respondent has not offered till date. In fact the liability of the respondent to pay the said amount of Rs.21,70,143/- was recognized by the Award made by the Appellate Arbitral Tribunal on 27th September, 2013. Therefore, to put an end to the litigation which started in 2012, considering the present age of the appellant, this is a fit case to exercise Extra Ordinary Jurisdiction of this Court under Article 142 of ....... + More

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• 2024 (5) TMI 614 - CALCUTTA HIGH COURT
  Dishonour of Cheque - legal heir of deceased - substitution of the opposite party (deceased complainant) - It is the case of the petitioner that the opposite party is not the sole legal heir of deceased - HELD THAT:- The Supreme Court in Rashida Kamaluddin Syed Anr. v. Shaikh Saheblal Mardan (Dead) through LRs. Anr. [ 2007 (3) TMI 725 - SUPREME COURT ] held that ' it is clear that on the death of Shaikh Saheblal, the case did not abate. It was, therefore, open to the sons of complainant to apply for continuation of proceedings against accused persons.' The learned Sessions Judge has allowed the application for substitution of the opp....... + More

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• 2024 (5) TMI 613 - CALCUTTA HIGH COURT
  Dishonour of Cheque - conviction of accused - discharge of existing legal liability - in spite of notice being duly served the cheque amount was not paid by the appellant - HELD THAT:- This Court finds that the cheque in question was issued by the appellant herein in discharge of his existing legal liability which he could not successfully rebut. The demand notice has been duly served upon the accused/appellant and proved before the Trial Court and in spite of notice being duly served the cheque amount was not paid by the appellant herein - From the evidence on record, this Court finds that the learned Trial Court has considered the material....... + More

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• 2024 (5) TMI 612 - BOMBAY HIGH COURT
  Dishonour of Cheque - Continuation of proceedings during moratorium period - vicarious liability of director - Despite moratorium, whether institution or continuation of proceedings under Section 138 or 141 of the NI Act against the erstwhile Directors or the persons in-charge of or responsible for conduct of the business of a corporate debtor could be continue? - after resolution plan under Section 31 of the IB Code by Adjudicating Authority and in the light of provisions of Section 32-A of the IB Code, such criminal proceedings will stand terminated against a corporate debtor or not. HELD THAT:- As per Section 14 of the IB Code, the adjudi....... + More

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• 2024 (5) TMI 611 - SC ORDER
  Grant of Regular Bail - misappropriation and transfer of money into various shell companies - Hawala transactions - seeking to include the additional conditions in the interim bail order - it was held by High Court that As this Court granted interim bail on medical grounds, this Court thought fit that the petitioner was not supposed to conduct public meetings and rallies - HELD THAT:- As jointly prayed for by the learned Senior counsels for the parties, the matter is adjourned for ten weeks.

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• 2024 (5) TMI 610 - SC ORDER
  Breach of fundamental rights or not - Seeking withdrawal of condition that appellant shall not create any untoward situation in public and shall not be involved in any political activities, directly or indirectly - HELD THAT:- The imposition of such condition would breach the fundamental rights of the appellant and no such conditions could have been imposed - the condition imposed by the High Court is quashed and set aside - appeal allowed.

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• 2024 (5) TMI 608 - SUPREME COURT
  Seeking refund of chit amount deposited until stoppage of the business - illegal termination of the chit fund business and consequent non-refund of the subscription amount - deficiency of service - OP refused to re-pay the subscription amount since, according to it, the complainant owed certain dues to it and therefore, it adjusted the subscription amount against pending dues of the complainant. The OP had raised a plea in its version that the complainant does not satisfy the definition of consumer since the service was obtained for a commercial purpose. HELD THAT:- The significance of deconstructing the definition of consumer into three par....... + More

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• 2024 (5) TMI 518 - BOMBAY HIGH COURT
  Dishonour of Cheque - liability created in favour of the Complainant by the Accused or not - MoU between the manufacturer and the retailer - The retailer issued multiple cheques to the distributor, which were subsequently dishonoured - presumption under Section 139 of NI Act was rebutted by the Accused - differences in the evidences - presumption of innocence in criminal trial - evidentiary value of evidence - proof of foundational facts for drawing of presumption under Section 139 of NI Act on the basis of available documents - HELD THAT:- The view of the trial Court is hyper technical view. The trial Court has overlooked the basic facts ab....... + More

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• 2024 (5) TMI 517 - KARNATAKA HIGH COURT
  Constitutional validity of para 83 of the EPF Scheme and para 43A of the Pension Scheme - international workers - grievance of the petitioners is that, under para 83 of the EPF Scheme, international workers are covered under the Act and Scheme, irrespective of their salary drawn by them. The employees other than the international workers, who draw exceeding Rs. 15,000/- per month is outside the purview of the Scheme. HELD THAT:- Section 5 of the EPF MP Act states that the Central Government may, by notification in the Official Gazette, frame a Scheme to be called the Employees Provident Fund Scheme for the establishment of provident funds un....... + More

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• 2024 (5) TMI 458 - SUPREME COURT
  Recovery of time-barred debt - extinguishment of debt or not - Use of the Haryana Public Moneys (Recovery of Dues) Act, 1979, and the State Financial Corporation Act, 1951, for recovering time-barred debts. - HELD THAT:- While the Court focused on the implication of a notification under Section 71 of the Kerala Revenue Recovery Act whereunder the Government could declare the Act applicable to any institution, the attention of the Court in STATE OF KERALA ORS. VERSUS V.R. KALLIYANIKUTTY ANR. [ 1999 (4) TMI 609 - SUPREME COURT] was not drawn to the powers envisaged under the State Financial Corporations Act which were also applicable to the re....... + More

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• 2024 (5) TMI 457 - DELHI HIGH COURT
  Dishonour of Cheque - vicarious liability of Executive Director - petitioner (resident Indian Director) was having control of the affairs of the company or not - Validity of summons issued by the Trial Court - HELD THAT:- In KK. AHUJA VERSUS VK. VORA [ 2009 (7) TMI 758 - SUPREME COURT ] the Supreme Court highlighted the difference between the position of a Managing Director of the Company vis- -vis an ordinary Director, as far as Section 141 of the NI Act is concerned, and held that if the accused is the Managing Director of a Joint Managing Director, it is not necessary to make an averment in the complaint that he is in charge of, and is re....... + More

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• 2024 (5) TMI 407 - SUPREME COURT
  Reimbursement of additional expenditure incurred due to an increase in the rates of royalty and associated sales tax on soil, sand and crushed stone aggregates - Non-payment for executed work of embankment with soil/pond ash for the initial 150 mm depth stripped in accordance with the requirements of the contract - Reimbursement of additional costs incurred due to an increase in the forest transit fee rates - scope of interference in a petition under Section 34 of the Arbitration Act - HELD THAT:- This Court, in the case of UHL POWER COMPANY LTD. VERSUS STATE OF HIMACHAL PRADESH AND STATE OF HIMACHAL PRADESH VERSUS UHL POWER COMPANY LTD. [ 2....... + More

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