NEWS

24 May 2023

Credit note issued to dealer in consideration of replacement of defective part under warranty is exigible to sales tax

The Larger Bench (3-Judge Bench) of the Supreme Court has held that a credit note issued by a manufacturer to a dealer of automobiles in consideration of the replacement of a defective part in the automobile sold pursuant to a warranty agreement, being collateral to the sale of the automobile, is exigible to sales tax.

An online game of skill like ‘Rummy’ is not gambling or betting, even if played with stakes

The Karnataka High Court in its recent decision, pronounced on 11 May 2023, has held that offline/online games such as Rummy which are mainly/preponderantly/substantially based on skill and not on chance, whether played with/without stakes, do not tantamount to ‘gambling or betting’ as contemplated in Entry 6 of Schedule III of the Goods and Services Act, 2017.

Arbitration – 2015 amendments not applicable where notice invoking arbitration is issued prior to amendment

The Supreme Court has held that in a case where the notice invoking arbitration is issued prior to the Arbitration and Conciliation (Amendment) Act, 2015 and the application under Section 11 for appointment of an arbitrator is made post Amendment Act, 2015, the provisions of pre-Amendment Act, 2015 shall be applicable and not the Amendment Act, 2015.