News
Earth-moving equipment not covered as ‘automobiles’ – Repacking of parts of earth-moving equipment was not ‘deemed manufacture’ prior to 29 April 2010
12 六月 2023
The 3-Member Bench of the Tribunal has held that packing or repacking of parts, component and assemblies of earth moving equipment would not amount to deemed manufacture under Section 2(f)(iii) of the Central Excise Act, 1944 read with the Third Schedule thereof, for the period prior to 29 April 2010.
Computer program resulting in technical effect/contribution eligible for patent protection
05 六月 2023
The Delhi High Court has held that an invention should not be deemed a computer program per se merely because it involves algorithms and computer-executable instructions. According to the Court, rather, it should be assessed based on the technical advancements it offers and its practical application in solving real-world problems.
Angel Tax: A proposal for reforming valuation rules
26 五月 2023
To deter generation and use of unaccounted money through subscription of shares of a closely held company, Finance Act, 2012 introduced Section 56(2)(viib) in the Income Tax Act, 1961. The Finance Act 2023 extended the ambit of Angel Tax to even non-resident investors. Considering the challenges posed by the aforesaid amendment, the CBDT has issued a press release on 19 May 2023 proposing certain legislative changes.
Credit note issued to dealer in consideration of replacement of defective part under warranty is exigible to sales tax
24 五月 2023
A 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.
Copyrights – Original drawings used to industrially produce an article will fall under ‘artistic work’ and be entitled to copyright protection
19 五月 2023
In a dispute involving copyright in respect of the original drawings, the Delhi High Court has reiterated that even if the original drawings are used to industrially produce an article, they would continue to fall within the meaning of the artistic work defined under Section 2(c) of the Copyright Act, 1957 and would be entitled to the full period of copyright protection.
An online game of skill like ‘Rummy’ is not gambling or betting, even if played with stakes
15 五月 2023
The Karnataka High Court in its recent decision 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. According to the Court, the terms ‘betting’ and ‘gambling’ appearing in Entry 6 of Schedule III of the CGST Act do not and cannot include games of skill.
Arbitration – 2015 amendments not applicable where notice invoking arbitration is issued prior to amendment
12 五月 2023
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.
Use of celebrity names, images for satire, parodies, news, etc. not falls foul to tort of infringement of right of publicity
10 五月 2023
In an interesting case involving infringement of right of publicity, the Delhi High Court, after relying on number of foreign judgements, has held that use of celebrity names, images for the purposes of lampooning, satire, parodies, art, scholarship, music, academics, news and other similar uses would be permissible as facets of the right of freedom of speech and expression under Article 19(1)(a) of the Constitution of India, and would not fall foul to the tort of infringement of the right of publicity.
Pre-import condition under advance authorisation scheme upheld by Supreme Court
03 五月 2023
In the decision rendered on 28 April 2023, the Supreme Court has reversed the decision of Gujarat High Court and held that the ‘pre-import condition’ stipulated in grant of exemption from payment of IGST & Compensation Cess is not ultra vires. The Gujarat High Court had held that grant of IGST exemption with ‘pre-import condition’ was arbitrary and that such condition was ultra vires the scheme of the Foreign Trade Policy.
Arbitration agreement, which is part of an unstamped contract, has no existence
01 五月 2023
The Constitutional Bench of the Supreme Court, comprising of 5 Judges, has on 25 April 2023, answered in affirmative the question as to whether the statutory bar contained in Section 35 of the Stamp Act, 1899 applicable to instruments chargeable to stamp duty under Section 3 read with the Schedule to the Act, would also render the arbitration agreement contained in an instrument, as being non-existent, pending payment of stamp duty on the substantive contract/instrument.