Boro Plus Ayurvedic Cream Is Medicated Ointment, Taxable At 5% Under Entry 41 Schedule II UPVAT Act: Allahabad High Court

The Allahabad High Court has upheld the Commercial Tax Tribunal, Lucknow's finding that Boro Plus Ayurvedic Cream is a 'medicated ointment' and not an 'antiseptic cream'. It was held that Boro Plus Ayurvedic Cream is taxable at 5% under Entry 41 Schedule II of the Uttar Pradesh Value Added Tax Act, 2008. Heading “Drugs and Medicines” in Entry 41, with effective from October 11, 2012, excludes medicated soap, shampoo, antiseptic cream, face cream, massage cream, eye jel and hair oil but...

Proceedings U/s 130 GST Act Can't Be Put To Service If Excess Stock Is Found During Survey Conducted At Business Premises: Allahabad High Court

Referring to the decision in case of Dinesh Kumar Pradeep Kumar Vs. Additional Commissioner [Writ Tax No. 1082 of 2022], the Allahabad High Court reiterated that even if excess stock is found at the business premises of the manufacturer, the proceedings u/s 130 of the UPGST Act cannot be initiated. As per Section 130 of the UPGST Act, the Government may require the person in charge of a conveyance carrying any consignment of goods of value exceeding such amount as may be specified to ...

Goods In Transit Without Documents, Can Survey Business Premises To Find Correctness Of Transaction: Allahabad High Court

The Allahabad High Court has held that if the goods in transit are not accompanied by proper documentation, including e-way bill, the authorities can survey the business premises of the assesee to determine the correctness of the transaction. However, it was held that if the e-way bill was produced before passing of seizure order under Section 129 of the Goods and Service Tax Act, 2017, then contravention of the Act or Rules thereunder could not be claimed by the Department. While...

Allahabad High Court Holds Deputy Commissioner Of Income Tax Guilty Of Contempt

The Allahabad High Court has held Retired Deputy Commissioner Of Income Tax Range 2 guilty of contempt of Court under Section 12 of the Contempt of Courts Act, 1971 for assuming jurisdiction in respect of the assesee-applicant in respect of a different assessment year when the Writ Court had directed that he has no jurisdiction in respect of the assesee. While directing one-week simple imprisonment along with file of Rs. 25,000/- against the opposite party, Justice Irshad Ali held...

Order Under S. 73 GST Can't Be Passed Against Company In Corporate Insolvency Resolution Process: Allahabad High Court

The Allahabad High Court has held that order Section 73 of the Goods and Service Tax Act, 2017 cannot be passed a company which is under the Corporate Insolvency Resolution Process (CIRP) under the Insolvency and Bankruptcy Code, 2016. Section 73 of the Goods and Service Tax Act, 2017 empowers a proper officer to initiate proceedings if he is satisfied that any tax has not been paid or short paid or erroneously refunded, or where input tax credit has been wrongly availed or utilised...

Allahabad High Court Stays Demand Of Rs. 47 Crores Service Charge Against IIT Rorkee

Recently, the Allahabad High Court has granted interim relief to Indian Institute of Technology, Roorkee against the demand of service charge amounting to Rs. Rs. 47,06,67,775/- raised by the Municipal Corporation, Saharanpur.The Municipal Commissioner, Municipal Corporation, Saharanpur, raised certain demand notices against IIT Rorkee imposing service charge of Rs. 3,26,43,795/- per annum retrospectively with effect from the year 2012 till the year 2024-2025, amounting to a total sum of Rs....

In Absence Of Appellant Or His Lawyer , Appeal Should Be Dismissed In Default Not An Order On Merit : Allahabad High Court

The Allahabad High Court has held that the term “ex-parte” in Rule 63(4) of the Uttar Pradesh Value Added Tax Rules, 2008 can be interpreted as for want of representation of the defendant after service of notice, the case may be decided on merits. However, when the appellant or his counsel is not present, the case may only be dismissed in default. The Court held that in cases where the appellant is not present, the Tribunal must dismiss appeals “for want of prosecution” instead of...

Allahabad High Court Sets Aside Part Of Award Dealing With Non-Arbitrable Dispute

The Allahabad High Court has held that disputes regarding works undertaken by party independent of the contract which contains the arbitration agreement cannot be determined under such arbitration agreement.Section 70 of the Contract Act, 1872 provides that a party is bound to compensate the other party for the work done by the latter party when there was no intention to do the work gratuitously.The bench comprising Chief Justice Arun Bhansali and Justice Vikas Budhwar held,“wherein some extra...

[Arbitration Act] Retroactive Application Of Judicial Decisions To Arbitral Awards Would Create Legal & Procedural Chaos: Allahabad High Court

Elucidating on the applicability of the judgment of the Supreme Court in Union of India v. Tarsem Singh and Ors 2019, the Allahabad High Court has held that “retroactive application of judicial decisions to arbitral awards would create legal and procedural chaos.”For context, in Tarsem Singh (supra), the Apex Court held that the provisions regarding solatium and interest provided in the Land Acquisition Act would apply to acquisitions made under the National Highways Act. The court...

[UP Trade Tax Act] Because Of Refund Due From Assessment Proceedings, Can't Escape Liability Of Depositing Tax Realized: Allahabad High Court

The Allahabad High Court has held that a registered dealer cannot withhold the tax realised by him from a purchasing dealer only because he had deposited an excess amount of tax at the time of the transaction. The Court held that he cannot escape the liability of depositing the tax realized under the U.P. Trade Tax Act, 1948 because a refund is due to him from assessment proceedings.“The registered dealer after realizing the tax cannot withhold the same on the pretext that some excess amount of...

No Provisions Of Appeal Provided Against An Order Passed By State GST Officer Under IGST Act: Allahabad High Court Admits Writ Petition

The Allahabad High Court has admitted the writ petition stating that the IGST Act lacks provision for appeals provided against an order passed by the state GST Officer.The bench of Justice Saumitra Dayal Singh and Justice Anish Kumar Gupta while admitting the writ petition noted that order passed under the IGST Act, the appeal shall lie before the Central Tax Officer. However, Section 6(3) of the UPGST Act, 2017, specifically excludes the jurisdiction of the Central Tax Officers to...

Take Steps To Avoid Delays In Filing Arbitration Appeals: Allahabad High Court To State's Principal Law Secretary

The Allahabad High Court has directed the Principal Secretary (Law), Uttar Pradesh to take steps to avoid delays in filing arbitration appeals beyond statutory limitations by the State Government and submit a report on the actions taken in this regard within 6 months.While deciding an appeal under Section 37 of the Arbitration & Conciliation Act, 1996 filed by the Government of Uttar Pradesh with a delay of 224 days, beyond the statutory period of 120 days, Justice Shekhar B. Saraf held that...