GST Notices Not Invalid Without Visible Digital Signature If Authenticated On Portal: Telangana High Court

The Telangana High Court has recently held that GST show-cause notices and adjudication orders cannot be invalidated merely because downloaded PDF copies do not display a visible digital signature. This is provided they have been electronically authenticated by the proper officer and uploaded on the GST common portal.“The case of the petitioners based upon the contention that the PDF format does not contain the visible digital signature of the proper officer is untenable in law,” the Full Bench...

Telangana High Court Upholds Injunction Against 'Namaskar Tasty Nutts' In 'Tasty Gold' Trademark Dispute

The Telangana High Court has upheld a temporary injunction restraining edible oil manufacturer Vaidehi Agro Oils from using “Namaskar Tasty Nutts”. The court found that the mark and packaging could confuse consumers into believing that the oil was linked to Sri Tulasi Industries' “Tasty Gold” brand“Most of the targeted consumers would be illiterates and semiliterates and there is every possibility that they would be easily confused to draw a distinction between the oils of the plaintiff's firm...

GST Refund Cannot Be Rejected Merely Because Department Plans To Challenge Appellate Order: Telangana High Court

The Telangana High Court has recently ruled that a GST refund authority cannot reopen an ITC dispute already decided by an appellate authority merely because the department proposes to challenge that order. An appellate order remains operative unless it is stayed, modified, or set aside in accordance with law. If the department seeks to withhold the refund while further proceedings are pending, it must comply with the requirements of Section 54(11) of the CGST Act.A Division Bench of Chief...

Mere Forgery In Loan Papers Can't Implicate Bank Manager Without Criminal Intent: Telangana High Court

The Telangana High Court on 17 September held that merely processing or forwarding loan proposals cannot, by itself, establish criminal conspiracy or other offences against a bank officer in the absence of material showing knowledge, dishonest intention or conscious participation in fraudulent transactions. A Bench of Justice N. Tukaramji quashed the criminal proceedings against Dr. V. Raja Gopal Reddy, a former Branch Manager of Indian Bank, Osmangunj Branch, Hyderabad, who was arrayed as...

Telangana High Court Quashes Reassessment Against Cyberabad Citizens Over Demerged Business Income

The Telangana High Court on 7 September set aside the order dated 16 April 2024 passed under Section 148A(d) of the Income Tax Act and the consequential notice under Section 148 issued to Cyberabad Citizens Health Services Pvt. Ltd. for Assessment Year 2019-20. A Division Bench of Justices P. Sam Koshy and Narsing Rao Nandikonda held that income already disclosed and offered to tax by the entity to which a business was demerged cannot be treated as escaped income merely because the related...

Telangana High Court Quashes Naandi Foundation Reassessment, Says 'Further In-Depth Scrutiny' Not Enough

The Telangana High Court on 7 September allowed a batch of petitions filed by Naandi Foundation challenging reassessment proceedings under the Income Tax Act, 1961 for the assessment year 2019-20 and set aside the order passed under Section 148A(3) and the consequential notice issued under Section 148. A Division Bench of Justices P. Sam Koshy and Narsing Rao Nandikonda held that the mere need for “further in-depth scrutiny” of transactions cannot constitute information suggesting escapement of...

Award Debtor Cannot Sidestep Mandatory 75% Deposit To Challenge MSME Award Through Execution Objections: Telengana HC

The Telangana High Court has held that an award debtor cannot use execution-stage objections to sidestep the mandatory 75% deposit required under the MSMED Act. The ruling came in a dispute between MSME supplier Atlantis Agritech Private Limited and Kendriya Bhandar, after the latter sought to keep asset-disclosure proceedings in abeyance pending its application under Section 47 of the Code of Civil Procedure before the Executing Court. The High Court held that such proceedings cannot be...

Telangana High Court Suggests Shift From 'Average Buyer' To 'Perceptive Consumer' Test In Trademark Cases

The Telangana High Court has observed that in the age of social media, the traditional test of assessing trademark confusion through the lens of a “person of average intelligence and imperfect recollection” should shift, to that of a “perceptive consumer with informed associations.”The observation came in a trademark dispute between saree retailer Sai Silks (Kalamandir) Limited, the registered proprietor of marks including “Kancheepuram Vara Mahalakshmi Silks” and “Vara Mahalakshmi”, and a rival...

Telangana High Court Upholds Gimpex's Target Plus Duty Exemption, Says Broad Nexus Sufficient

The Telangana High Court on 11 August upheld the relief granted to Gimpex Limited, holding that the extended period of limitation could not be invoked in the absence of material showing fraud, wilful misstatement or suppression of facts with an intent to evade duty. A Division Bench comprising Justices P. Sam Koshy and Narsing Rao Nandikonda observed that a strict product-to-product nexus between imported and exported goods was not required to claim duty exemption under the Target Plus Scheme....

Telangana High Court Sets Aside 20% Pre-Deposit Condition For Tax Demand Stay In VSAIPPL-SMC Case

The Telangana High Court on 20 August set aside orders directing VSAIPPL-SMC (JV) to pay 20% of its outstanding tax demand as a condition for staying recovery of the remaining demand, while allowing three writ petitions concerning Assessment Years 2022-23, 2023-24 and 2024-25. A Division Bench comprising Justices P. Sam Koshy and Vakiti Ramakrishna Reddy noted that authorities cannot mechanically impose a condition requiring payment of 20% of an outstanding tax demand for granting stay of...

Telangana High Court Quashes ₹52.39 Crore VAT Demand On TCS's Customised Software Services

The Telangana High Court has set aside a ₹52.39 crore Value Added Tax (VAT) demand imposed on Tata Consultancy Services (TCS).It held that transactions involving the development of custom-made or customised software did not constitute a sale where TCS did not acquire ownership or title over the software. The Court found that there was no transfer of property in goods.A Division Bench comprising Justice P. Sam Koshy and Justice Narsing Rao Nandikonda passed the common order. It allowed the lead...

Reassessment Objections Must Be Raised Before Assessing Officer First: Telangana High Court

The Telangana High Court on 11 August declined to interfere with reassessment proceedings against Nitin Enterprises at the preliminary stage, holding that objections concerning the jurisdiction and validity of the reassessment must first be raised before the Assessing Officer and, if necessary, pursued through the statutory appellate remedies. A Division Bench comprising Justices P. Sam Koshy and Narsing Rao Nandikonda held that proceedings initiated through a notice under Section 148A and the...