Karnataka High Court
IGST Not Leviable On Clinical Observation Studies Provided To Foreign Recipients: Karnataka High Court
The Karnataka High Court held that IGST (Integrated Goods and Services Tax) is not leviable on clinic observation studies for foreign recipients, as such services qualify as export of services with the recipient located outside India. Justice S.R. Krishna Kumar stated that having regard to the specific observations made in the 37th GST Council Meeting, whereby it was resolved to clarify the tax liability in GST liability in relation to foreign recipients for R & D services...
Karnataka High Court Annual TAX Digest 2025
Direct TaxProceedings Initiated Against Income Tax Assessee After His Death Cannot Be Continued Against Legal Representative: Karnataka HCCase Title: The Income Tax Officer & ANR Preeti VCase No:WRIT APPEAL NO. 1407 OF 2024The Karnataka High Court has said proceedings initiated against an Income Tax Assessee by issuing notice after his demise cannot be continued against his/her legal representative.A division bench of Justice Krishna S Dixit and Justice G Basavaraja said, “Had the...
Karnataka High Court Pulls Up CBIC For Non-Compliance, Seeks Clarity On Applicability Of S. 9(5) CGST Act To Uber's 'Subscription' Model
The Karnataka High Court directed the CBIC to clarify whether passenger transportation services under Uber's subscription model attract GST under Section 9(5) of the CGST Act. Justice S.R. Krishna Kumar also directed the CBIC to place the matter before the GST Council, if required, and file a status report. Section 9(5) of the Central Goods and Services Tax (CGST) Act, 2017, is a special provision under the reverse charge mechanism that mandates an Electronic Commerce Operator...
“Illegal, Arbitrary & Colourable Exercise Of Power": Karnataka High Court Quashes Consolidated GST Show Cause Notice Clubbing Multiple FYs
The Karnataka High Court held that issuing a consolidated show cause notice for multiple financial years is illegal, arbitrary and contrary to the provisions of the CGST Act. The bench opined that a composite notice for multiple financial years enables the Department to blur the statutory distinction between Section 73 (non-fraud, etc.,- 3 year limitation) and Section 74 (fraud etc., - 5 year limitation). If certain years fall under Section 73, but the entire block is treated under ...
IGST Act | Place Of Supply Depends On Where Movement Terminates, Not Where Goods Were Handed To Carrier: Karnataka High Court
The Karnataka High Court held that for the purpose of determining the place of supply under Section 10(1)(a) of the IGST Act, the factor is the location where the movement of goods terminates for delivery to the recipient and not the place where the goods are handed over to the common carrier. Section 10(1)(a) of the Integrated Goods and Services Tax (IGST) Act, 2017, provides that the place of supply for goods that are moved, whether by the supplier, recipient, or another party, is...
Bona Fide Errors In GSTR-3B Can Be Corrected; Karnataka High Court Directs Department To Accept Revised Returns
The Karnataka High Court held that bona fide errors in GSTR-3B returns are rectifiable and cannot be a ground to initiate proceedings under Section 73 of the KGST /CGST (Central Goods and Services Tax) Act. Justice S.R. Krishna Kumar directed the department to accept the revised returns, noting that the Supreme Court has also directed the CBIC to re-examine the provisions/timelines fixed for correcting the bona fide errors. In the case at hand, the assessee/petitioner is a works...
GST | Non-Mentioning Vehicle Number In Part-B Of E-Way Bill Is Curable Defect: Karnataka High Court
The Karnataka High Court in a matter concerning non-uploading of Part-B of E-way Bill, has set aside the revisional order and restored the order of Appellate Authority which allowed release of seized vehicle and imposed a General Penalty of Rs. 25000. Justice S.R. Krishna Kumar directed to refund the entire amount imposed on the Petitioner as penalty excluding Rs. 25000 as also instructed to return the bank guarantee. The Karnataka High Court emphasized on how omission of vehicle...
Karnataka High Court Issues Notice To ED On WinZO's Plea Challenging Search, Seizure In PMLA Probe
The Karnataka High Court on Monday issued notice to the Enforcement Directorate (ED) on a petition filed by an online gaming company, Winzo Pvt Ltd, seeking to declare that the search and seizure carried out by the ED at its office between 18.11.2025 and 22.11.2025 in furtherance of an investigation in a money laundering case is illegal and void.Justice Suraj Govindaraj issued notice and directed the ED to file its response to the petition and posted the matter for further hearing on December...
Karnataka High Court Upholds Order Asking GoBoult To Add 'Formerly BOULT' Disclaimer In Rebranded Products
The Karnataka High Court has upheld an order directing a consumer electronics brand to prominently display the disclaimer “formerly BOULT” on all products sold under its new name “GoBoult,” saying the step was necessary to prevent confusion with rival brand “GoBold.”A division bench of Chief Justice Vibhu Bakhru and Justice C M Poonacha delivered the order on November 24, 2025, dismissing the appeal filed by Exotic Mile, which owns and operates the GoBoult brand, against the Commercial Court's...
Arbitration Is Only Between Parties To Agreement; Non-Parties Can Be Added Only In Exceptional Circumstances: Karnataka High Court
The Karnataka High Court has held that arbitration could be only between parties to the Arbitration Agreement; non-parties cannot be made parties to arbitration unless exceptional circumstances exist.Justice Suraj Govindaraj held thus while allowing a petition filed by Lubna Shah. Shah and Varun Infra Projects (respondent No 3) had entered into a Joint Development Agreement on 27.06.2016, which is governed by an arbitration Clause in terms of Clause 22.Shah, by a letter dated 27.01.2025, called...
Income Tax Act | Documents Seized From Actor Yash's Residence Make Him 'Searched Person': Karnataka High Court Quashes Order U/S 153C
The Karnataka High Court has held that the search conducted at Actor Yash's residence makes him a 'searched person' under the Income Tax Act, as documents were seized from him, during the search and a panchanama was drawn. Hence, the order under Section 153C of the Act, which applies to persons other than the one originally searched, is without jurisdiction. Section 153C of the Income Tax Act, 1961 allows the Income Tax Department to assess or reassess the income of a person other than...
Statutory Remedy Under Cooperative Societies Act Inapplicable When Arbitration Clause Exists: Karnataka High Court
The Karnataka High Court has reiterated that if an arbitration clause were to exist in an agreement between the parties and the dispute were required to be adjudicated by way of arbitration, then the statutory requirement under the Cooperative Societies Act would not apply.Justice Suraj Govindaraj said this while allowing the petition filed by Ramakrishna House Building, which had approached the court for the appointment of a sole arbitrator. An agreement having been entered into between the...