Allahabad High Court Monthly Tax Digest: May 2024

NOMINAL INDEX Mr. Pranay Dhabhai v. State Of U.P. And 2 Others 2024 LiveLaw (AB) 299 Mentha And Allied Products Ltd vs. State Of U.P. And 3 Others 2024 LiveLaw (AB) 300 Satish Kumar Bansal Huf v. National Faceless Assessment Centre Nafac And Another 2024 LiveLaw (AB) 301 M/S K Y Tobacco Works Pvt. Ltd. vs. State Of U.P. And 4 Others 2024 LiveLaw (AB) 319 M/S Rajshi Processors Raebareli Thru. Its Partner Ashok Kumar Lakhotia v. State Of U.P. Thru. Prin. Secy. Deptt. Of State...

[Commercial Courts Act] Disputes Related To Immovable Property Used Exclusively For Trade Are 'Commercial Disputes: Allahabad High Court

The Allahabad High Court, while considering the case of a hotel, has held that a dispute related to an immovable property that is used exclusively for the purpose of trade or commerce would fall under the ambit of a 'Commercial Dispute' under Section 2(1)(c)(vii) of the Commercial Courts Act, 2015.“Agreements relating to immovable property used exclusively in trade or commerce fall under the purview of “commercial disputes” as definer by Section 2(c)(vii) of the CC Act. This categorization...

[Central Excise Act] Fixing Consecutive Dates of Hearing on Very Short Notice Violative of Opportunity of Hearing U/S 33A: Allahabad High Court

The Allahabad High Court has held that fixing consecutive dates of hearing within the period of a week would be violative of the opportunity of hearing as envisaged under Section 33A of the Central Excise Act, 1994.Section 33A of the Central Excise Act provides that opportunity of hearing be given to a party in a proceeding under the Act, if desired by them. Further, it lays down the procedure for granting adjournment in adjudication proceedings to either of the parties on the condition that a...

Allahabad High Court Dismisses Writ Petition Against Facilitation Council Award For Lack Of Mandatory Pre-Deposit U/S 19 MSME Act

The Allahabad High Court has dismissed a writ petition challenging the award passed by the Zonal Micro and Small Enterprises, Facilitation Council (MSEFC), Meerut Zone, Meerut under Section 18 of the Micro, Small and Medium Enterprises Development Act, 2006 as the petitioners, Tamil Nadu Generation And Distribution Corporation Limited and others, had refused to make the mandatory pre-deposit under Section 19 of the MSME Act.The Court held that even though principles of natural justice have been...

[Arbitration Act] Arbitrator Obligated U/S 31(5) To Deliver Signed Copies Of Award To Parties, Irrespective Of No Specific Requests: Allahabad High Court

The Allahabad High Court has held that the arbitrator is obligated to deliver signed copies of arbitral award to each party to the arbitration. It has been held that irrespective of the fact that no specific request has been made by the parties for certified copy of the award, the arbitrator must deliver the award in terms of Section 31(5) of the Arbitration and Conciliation Act, 1996.“Section 31(5) of the Act unequivocally imposes an obligation upon the Arbitrator to deliver a signed copy of...

Arbitral Award Can't Be Set Aside Merely Due To Incorrect Application Of Law Or Misinterpretation Of Evidence: Allahabad High Court

The Allahabad High Court bench of Justice Shekhar B. Saraf held that an arbitral award should only be set aside if it is clearly vitiated by "patent illegality" evident on the face of the record. The bench held that an award cannot be annulled merely due to an incorrect application of the law or misinterpretation of evidence.Brief Facts:The matter pertained to the acquisition of land for the purpose of widening National Highway No. 26 for commercial use. Initially, the Competent...

Arbitration Act | Misplacement Of File By Lawyer Not Sufficient Ground For Condoning 966 Days Delay: Allahabad High Court

The Allahabad High Court has refused to condone a delay of 966 days in filing appeal under Section 37 of the Arbitration and Conciliation Act, 1996 which was due to misplacement of case files by the lawyer while shifting his office during Dussehra.“Misplacement of files due to office shifting, especially during a holiday period, is not an uncommon occurrence. However, the burden lies on the appellant to ensure that necessary precautions and timely measures are in place to prevent such...

Over Dimensional Cargo Can't Be Penalized For Reaching Earlier Than Estimated Time: Allahabad High Court

The Allahabad High Court has held that Over Dimensional Cargo cannot be penalized by the authorities for reaching its destination in less time than estimated by travelling at a higher speed when there is no intention to evade tax.Clause 2.4 of the Circular issued by Commissioner, State Tax dated 17.01.2024 provides that Over Dimensional Cargo cannot be detained and penalty cannot be imposed only because the goods have reached the intended place earlier than the estimated time. “The mere fact...

[Income Tax Act] Proceedings U/S 148A Summary In Nature, Assessing Authority To Only See If It Is “Fit Case” For Reassessment: Allahabad HC

The Allahabad High Court has held that proceedings under Section 148A of the Income tax Act, 1961 are summary in nature. The Court held that at the stage of passing order under Section 148A(d), the Assessing Authority has to only see if it is a “fit case” for initiation of reassessment proceedings or not.The Court held that the Assessing Authority need not go into the correctness of the material but only record its satisfaction as to the relevancy of the material for assuming jurisdiction for...

Failure To Cite Judgment Does Not Render Original Judgement Flawed: Allahabad High Court

The Allahabad High Court has held that mere failure to cite a judgement does not, in and of itself, render the original judgement flawed.The bench of Justice Shekhar B. Saraf has observed that the review jurisdiction is not a panacea for addressing every perceived deficiency or oversight in the original judgement; rather, it is a narrow avenue reserved for rectifying errors glaringly evident on the face of the record. Failure to cite a particular judgement does not automatically invalidate the...

Franchise Agreement Granted Non-Exclusive Licence Rather Than Transfer Of Right To Use Goods, VAT Not Payable: Allahabad High Court

The Allahabad High Court has held that the franchise agreement granted a non-exclusive licence rather than a transfer of the right to use goods and the transaction does not attract Value Added Tax under the Uttar Pradesh Value Added Tax Act (UPVAT Act).The bench of Justice Shekhar B. Saraf has observed that the respondent-department had received royalty amount from various dealers under the franchise agreement and service tax has been duly paid by it on the same. If the payments have been...

Option Once Exercised For A Financial Year May Not Be Withdrawn Midway: Allahabad High Court

The Allahabad High Court has held that an option, once exercised for a financial year, may not be withdrawn midway.The bench of Justice Saumitra Dayal Singh and Justice Donadi Ramesh has observed that the only recourse that applicant may have taken may be to apply to the jurisdictional authority to discontinue the benefit of the compounding scheme from the beginning of the next financial year, i.e., 1.4.1998. For the option to be exercised, the applicant ought to have made that application...