Jharkhand High Court Scraps 'Net Charges' Formula For Electricity Duty Levy, Flags Excessive Delegation

The Jharkhand High Court on Monday struck down a proviso introduced by a state amendment to the Bihar Electricity Duty Act, 1948 that allowed electricity duty to be levied as a percentage of consumers' “net charges”. The court held that the legislature had delegated its taxing power to the executive without laying down any policy guidance. It further held that empowering the state government to fix electricity duty on a value-based formula, without prescribing standards or limits, amounted to...

GST Refund Claim Cannot Be Rejected Unless Mandatory Procedure Under Rule 92(3) CGST Rules Is Followed: Jharkhand High Court

The High Court of Jharkhand has set aside GST refund rejection orders passed against Carbon Resources Private Limited, holding that the tax department violated mandatory procedure and principles of natural justice while rejecting the refund claim. A Division Bench comprising Chief Justice Tarlok Singh Chauhan and Justice Rajesh Shankar was hearing two writ petitions challenging a refund rejection order and a subsequent rectification order passed by the Assistant Commissioner, Central...

Service Tax | Once Pre-Deposit Condition Is Fulfilled, Appeal Must Be Heard On Merits: Jharkhand High Court

The Jharkhand High Court held that once an appeal was dismissed for non-compliance with the mandatory pre-deposit of the Service Tax amount, the Appellate Authority does not become functus officio and was competent to decide the appeal on merits if the mandatory condition of pre-deposit of 7.5% of the Service Tax amount was subsequently complied with by the assessee. A Division Bench comprising of Chief Justice and Justice Rajesh Shankar, stated that the appeal at the earlier occasion...

Purpose Of A&C Act Stands Defeated If There Are Delays In Executing Arbitral Award: Jharkhand High Court

The Jharkhand High Court division bench comprising Chief Justice Tarlok Singh Chauhan and Justice Rajesh Shankar observed that the purpose and the object of the Arbitration and Conciliation Act, 1996, and the Commercial Courts Act, 2015, would stand defeated if there are delays in the execution of the Arbitral Award. The present petition was filed by M/s/ R.K. Construction Private Limited (“RKCPL”), praying for expeditious adjudication of the execution petition filed by RKCPL before...

In Jharkhand, Civil Judge (Sr. Division) Has Jurisdiction To Try Trademark Infringement Suits Valued Between ₹3 Lakh & ₹1 Crore: High Court

The Jharkhand High Court has held that in the State of Jharkhand, where the pecuniary value of a commercial dispute is between ₹3 lakh and ₹1 crore, a Civil Judge (Senior Division) designated as a Commercial Court has the jurisdiction to try a trademark infringement suit. A Bench of Chief Justice Tarlok Singh Chauhan and Justice Sujit Narayan Prasad held so while allowing a commercial appeal filed by M/s Khemka Food Products Pvt. Ltd. against a 2024 order of the Civil Judge (Sr....

If SCN Is Issued Without GST Authority's Signature, Demand Order Can't Be Saved Even If It Is Signed: Jharkhand High Court

The Jharkhand High Court has made it clear that an order raising GST demand cannot be saved even if it is properly authenticated by the issuing authority, if the show cause notice preceding it was not signed.A division bench of Chief Justice M.S. Ramachandra Rao and Justice Rajesh Shankar was dealing with a Petitioner's grievance that Form GST DRC-01A issued to him under section 73(1) of the Jharkhand GST Act was not signed by the authority.For context, Form GST DRC-01A is a pre-show cause...

Sale Of Goods At Concessional Rates Alone Does Not Constitute A Sham Transaction: Jharkhand High Court Quashes SCN

The Jharkhand High Court stated that sale of goods at concessional rates alone does not constitute a sham transaction. The Division Bench of Chief Justice M.S. Ramachandra Rao and Justice Deepak Roshan observed that “notices under Section 61 have been issued to assessees and instead of pointing out discrepancies in the returns filed by assessees, the competent officer has embarked upon an exercise of comparing the price at which assessees have sold their stone-boulders/stone-chips with...

Jharkhand HC Quashes Provisions Of RTE Amendment Rules Levying Inspection Fee, Security Deposit On Private Schools

The Jharkhand High Court has partly allowed a batch of writ petitions challenging the Jharkhand Right of Children to Free and Compulsory Education (First Amendment) Rules, 2019. The Court struck down as unconstitutional the provisions requiring private schools to pay application and inspection fees and to maintain a security deposit for recognition, holding that the State lacked legal authority under the Right of Children to Free and Compulsory Education Act, 2009. However, the Court upheld the...

Court Cannot Set Aside Entire Arbitral Award Due To Fraud In One Claim When Other Claims Rest On Different Grounds: Jharkhand High Court

The Jharkhand High Court bench of Chief Justice M. S. Ramachandra Rao and Justice Rajesh Shankar has held that when two claims decided in an arbitral award are mutually unrelated, the court, under Section 34 of the Arbitration and Conciliation Act, 1996 (Arbitration Act), cannot set aside the entire arbitral award solely because a fraud was committed concerning one of the claims, while the other claims are based on entirely different reasoning and grounds. Brief Facts: On 29.01.2011,...

Jharkhand HC Quashes ITAT Relief To Assessee For Relying On Overruled Precedent In TDS Default Case, Remands Matter For Fresh Adjudication

The Jharkhand High Court has quashed an order of the Income Tax Appellate Tribunal (ITAT), Circuit Bench, Ranchi, after finding that it was solely based on a precedent that had been overruled by the Supreme Court. The Tribunal had earlier deleted the entire addition made by the Assessing Officer under Section 40(a)(ia) of the Income Tax Act, 1961, on the ground that the payments in question had already been made. The Division Bench comprising Justice Sujit Narayan Prasad and Justice Rajesh Kumar...

Interest Of 18% Can't Be Claimed In Arbitrations Commencing Before 2015 Amendment, When Award Specifies Particular Rate: Jharkhand HC

The Jharkhand High Court bench of Chief Justice M. S. Ramachandra Rao and Justice Deepak Roshan has held that interest at the default rate of 18% under unamended Section 31(7)(b) of the Arbitration and Conciliation Act, 1996 (Arbitration Act) cannot be claimed when the arbitral proceedings commenced before the 2015 amendment and the parties have not agreed to apply the amended provision. In such cases, the unamended provision applies, and only the interest specified in the award is...

GST Authorities Can't Deny Refund Of Pre-Deposit On Grounds Of Limitation, Violates Article 265: Jharkhand High Court

The Jharkhand High Court has held in a recent judgement that rejecting a refund claim for a statutory pre-deposit which has been made under Section 107(6)(b) of the GST Act, on the ground that the claim was filed after the 2-year limitation under Section 54(1), is legally unsustainable. The Division Bench comprising Chief Justice M.S. Ramachandra Rao and Justice Deepak Roshan stated, “There is no dispute to the effect that once refund is by way of statutory exercise, the same cannot be retained...