IGST | Marketing & Technical Support Services To Foreign Parent Qualify As Export Of Services, Not Intermediary: Karnataka High Court

The Karnataka High Court held that marketing and technical support services provided by the assessee to its foreign parent qualify as export of services under the IGST Act (Integrated Goods and Services Tax) and do not constitute intermediary services. Justice S.R. Krishna Kumar noted that the place of supply of these services is outside India, satisfying all conditions for export of...

Custodial Interrogation Not Mandatory For GST Offences Punishable Up to 5 Years: Karnataka High Court Grants Bail In ₹31 Cr Tax Evasion Case

The Karnataka High Court held that custodial interrogation is not mandatory in GST offences punishable with imprisonment up to five years, even though such offences are economic in nature. The bench further stated that the prescribed punishment under the CGST (Central Goods and Services Tax) Act must be considered while determining the gravity of the offence.Justice Shivashankar...

Flavoured Milk Is Not 'Beverage'; Taxable At 5% GST: Karnataka High Court Provides Relief To Dodla Dairy

The Karnataka High Court held that flavoured milk qualifies as a dairy product under Tariff Heading 0402 and not as a 'beverage' under Tariff Heading 2202. Consequently, GST at 5% will be applicable on flavoured milk instead of 12%. Justice S.R. Krishna Kumar examined the classification of the flavoured milk under the GST, considering whether it falls under Tariff...

No GST On Liquidated Damages For Breach Of Contract: Karnataka High Court Quashes SCN

The Karnataka High Court held that liquidated damages recovered for breach or delay in contractual obligations are compensatory in nature and do not constitute consideration for any supply under GST. Justice S.R. Krishna Kumar examined whether the amount paid as compensation by the Lending Service Provider (LSP) to the assessee constituted 'liquidated damages' and whether such amount...

Order Deciding Director's Authority Is Not An Arbitral Or Interim Award, Not Open To Section 34 Challenge: Karnataka High Court

The Karnataka High Court has held that an order passed by an arbitral tribunal deciding a preliminary or a factual issue such as whether the directors were authorised to execute agreements does not amount to an arbitral award or an interim award and therefore cannot be challenged under section 34 of the Arbitration and Conciliation Act, 1996 ("Arbitration Act"). A Division...

Non-Signatory Developer Can Be Impleaded In Arbitration If Conduct Shows Intent To Be Bound: Karnataka High Court

The Karnataka High Court has refused to interfere with an arbitral tribunal's decision impleading a non signatory company in arbitration proceedings holding that where conduct, agreements and commercial involvement of a party demonstrates clear intent to be bound by the arbitration agreement, the Group of Companies would apply. A Division Bench of Justice Jayant Banerji and Justice...

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...

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...

“Article 21 Rights Flow From Discharge Of Fundamental Duties”: Karnataka High Court Refuses Bail In 2020 Bengaluru Riots Case

The Karnataka High Court, while refusing bail to an accused in the 2020 Bengaluru Riots case, observed that, “The appellant is seeking bail on the ground that his fundamental right to liberty under Article 21 of the Constitution is violated. He gets that right when he adheres to his fundamental duties encapsulated in Article 51A of the Constitution.”A Division Bench comprising Justice...

Karnataka High Court Annual Digest 2025: Part 1 [Citations 1 - 225]

Citations 2025 LiveLaw (Kar) 1 To 2025 LiveLaw (Kar) 225When Investigation Is Substantially Completed By Improper Officer, SCN Issued U/S 74 Of CGST Act Is Liable To Be Set Aside: Karnataka HCCase Title: M/s Vigneshwara Transport Company v. Additional Commissioner of Central Tax Bengaluru North-West CommissionerateCase Number: WRIT PETITION NO.18305 OF 2023 (T-RES)Citation No: 2025 LiveLaw...

Managing Committee Of Wakf Has No Power To Remove Its Own Member; Only Wakf Board Can Do So: Karnataka High Court

The Karnataka High Court recently held that the Managing Committee of a Wakf would not have any power to remove a member of the Managing Committee appointed by the WAKF Board.Justice Suraj Govindaraj held thus while allowing a petition filed by Abdul Sattar and another, who had questioned the decision of the Badariya Jumma Masjid, Muslim Jamath, removing them from the Managing Committee....

Family Court Has No Power To Issue Lookout Circulars For Enforcing Maintenance Orders: Karnataka High Court

The Karnataka High Court has held that a Family Court has no power to issue a Look Out Circular (LOC) while executing an order passed under Section 125 of the Code of Criminal Procedure, which relates to maintenance for wives, children and parents.Justice Lalitha Kanneganti observed that maintenance orders under Section 125 CrPC create a civil obligation enforced through judicial orders. If...