Mobile Chargers Remain Independent Accessories, Toner And Cartridges Are Consumables: Patna High Court

The Patna High Court on 9 October held that mobile chargers sold with cellular phones in composite packs attract VAT at the residual rate of 13.5%, as they qualify as independent accessories rather than parts of the phones. A Division Bench of Justices Bibek Chaudhuri and Rana Vikram Singh also held that toner and cartridges do not qualify for lower VAT rates applicable to computer peripherals and their parts and accessories, and dismissed appeals filed by Ingram Micro-India Private Limited...

Pending Suit Against Company Under Liquidation Requires NCLT Leave To Proceed: Patna High Court

The Patna High Court has held that a pending commercial suit involving a company under liquidation cannot proceed without leave of the National Company Law Tribunal (NCLT)."once a winding up order is passed, no suit or other legal proceedings shall be commenced or if pending at the date of the winding up order, shall be proceeded with, by or against the company except with the leave of the Tribunal and subject to such terms that the Tribunal may impose,” a Bench of Justices Rajeev Ranjan Prasad...

Writ Court Cannot Appoint Arbitrator Where Contract Mandates Statutory Mechanism: Patna High Court

The Patna High Court on 29 September held that a writ court cannot appoint an arbitrator under the Arbitration and Conciliation Act, 1996 when the parties' agreement provides for resolution of disputes through a statutory arbitration mechanism. A Division Bench comprising Justices Sudhir Singh and Rajesh Kumar Verma set aside the Single Judge's order appointing a sole arbitrator in a dispute between Bihar's Mines and Geology Department and Mahadev Enclave Pvt. Ltd., noting that Clause 9 of the...

Patna High Court Orders ₹1.24 Lakh Refund After Service Tax Appeal Pre-Deposit Paid Twice, Grants 12% Interest

The Patna High Court has directed the Central GST and Central Excise Department to refund ₹1,24,175 to a petitioner after finding that the amount paid towards the mandatory pre-deposit for a service tax appeal was deposited twiceThe Division Bench of Justice Rajeev Ranjan Prasad and Justice Sunil Dutta Mishra also directed the Department to pay interest at 12% per annum from the date of the second receipt until payment, along with ₹25,000 towards litigation costs.The Court further permitted the...

Patna High Court Grants Interim Protection To Bihar Power Co. Against ₹29.23 Crore Tax Demand

The Patna High Court on 22 September temporarily protected Bihar State Power (Holding) Company Limited from coercive recovery of an income tax demand of Rs. 29.23 crore. A Division Bench comprising Justices Rajeev Ranjan Prasad and Sunil Dutta Mishra directed the Assessing Officer/Income Tax Appellate Tribunal (ITAT), as the case may be, to consider the company's application for interim protection within six weeks. Until then, no coercive recovery action can be taken against the company. The...

Patna High Court Upholds CBIC Circulars Assigning 'Proper Officer' Functions Under GST Act To Central Tax Officers

The Patna High Court has rejected a challenge to three CBIC circulars assigning “proper officer” functions to Central Tax officers under the GST law, agreeing with the Bombay High Court's reasoning on the issue.“An analysis of the Notification dated 19.06.2017 and the other two Circulars would lead this Court to agree with the views expressed by the Hon'ble Bombay High Court,” a Division Bench of Justice Rajeev Ranjan Prasad and Justice Sunil Dutta Mishra observed.“Now, in our considered...

Patna HC Quashes Sale Of Guarantor's Property As Bank Fails To Establish Liability After Loan Restructuring

The Patna High Court has quashed the sale of a guarantor's flat by Canara Bank under the SARFAESI Act.It held that the Bank failed to establish that the guarantor's liability continued to cover a subsequent financial facility sanctioned after the original loan was restructured.Justice G. Anupama Chakravarthy observed that the Bank could not rely merely on the fact that the guarantor had never formally sought a discharge from his earlier guarantee. It had to demonstrate that the guarantee also...

Customs Department Must Hear Account Holder Before Extending Bank Account Attachment: Patna High Court

The Patna High Court has recently ruled that a person whose bank account has been provisionally attached under the Customs Act must be given an opportunity of hearing before the attachment is extended. A hearing offered after the extension has already been ordered cannot cure the defect, the court held.A Division Bench of Justice Rajeev Ranjan Prasad and Justice Sunil Dutta Mishra made the ruling while allowing a writ petition filed by Nxtify Technologies Private Limited to the extent indicated...

Patna High Court Refuses To Interfere With ₹60.88 Lakh Service Tax Demand Against FCI Contractor

The Patna High Court on 28 August refused to interfere with a Service Tax demand of Rs. 60.88 lakh, along with interest and penalties, raised against a contractor engaged by the Food Corporation of India (FCI). A Division Bench of Justices Rajeev Ranjan Prasad and Ramesh Chand Malviya dismissed the writ petition filed by Anjani Kumar Singh, while granting him liberty to pursue the statutory remedy available under law. It observed: “We have noticed that neither before the competent...

Patna High Court Says Permanent GST Registration Cancellation May Cause 'Civil Death' To Business

The Patna High Court on 28 August observed that permanent cancellation of GST registration may virtually result in the “civil death” of a business by preventing the taxpayer from carrying on business, while granting relief to Super Enterprises, whose GST registration was cancelled for failure to file returns for six months. A Division Bench of Justices Rajeev Ranjan Prasad and Ramesh Chand Malviya noted that Section 75(4) of the Bihar Goods and Services Tax Act, 2017, requires the authorities...

CPC Applies To Court Proceedings Arising From Arbitration Unless Excluded: Patna High Court

The Patna High Court on 6 August held that while the Code of Civil Procedure, 1908 (CPC) does not bind arbitral tribunals, it applies to court proceedings arising from an arbitral award unless expressly excluded. A Division Bench comprising Justices Rajeev Ranjan Prasad and Ramesh Chand Malviya set aside a Commercial Court order dismissing the Bihar State Warehousing Corporation's challenge to a Rs. 5.99 crore arbitral award after it cured a Rs. 245 court fee deficit 62 days beyond the...

Patna High Court Quashes Reassessment Based On Bank's Wrong Reporting Of ₹12.50 Lakh FD As ₹12.50 Cr

The Patna High Court on 10 August quashed income tax reassessment proceedings against Satya Narayan Jha after Union Bank of India wrongly reported his fixed deposit of Rs. 12.50 lakh as Rs. 12.50 crore to the Income Tax Department, holding that the Department had relied on incorrect information. A Division Bench of Justices Rajeev Ranjan Prasad and Ramesh Chand Malviya held that the notice issued under Section 148A(b) of the Income Tax Act, 1961, which requires the taxpayer to be given an...