Case Law Details
Huawei Telecommunications (India) Company Pvt. Ltd. Vs DDIT (Delhi High Court)
Mr. Datar states that the Respondents have been granted complete access to the Company’s Accounting Enterprise Planning (ERP) system. He states that ERP system is a primary source of transaction undertaken by the Petitioner and comprises of data pertaining to ledger accounts, expenditure, remittances, receivables, payables, related party transactions, fixed assets, etc.
Datar states that due to the impugned orders, the Petitioner has defaulted in making payment of statutory dues like GST and TDS. He also states that the Petitioner has not been able to pay salary to its 400 (approx.) permanent employees and 190 contractual employees as well as clear dues of its vendors/ suppliers.
Having heard learned counsel for the parties, this Court is of the view that the present matter requires a detailed examination. Consequently, to balance the equity, the impugned orders are stayed subject to the following conditions:- (i) The Petitioner shall prepare a Fixed Deposit Receipt of Rs.100 crores in DBS Bank Account No.820200251860, which shall be renewed automatically from time to time. A photocopy of the said FDR shall be filed with the Assessing Officer within a week. The Banker is also directed to ensure that the Petitioner and/or any of its officials/nominees/authorised representatives do not deal with the FDR in any manner. (ii) The Respondents are directed not to release any refund [which is stated to be to the tune of Rs.30 crores (approx.)] to the Petitioner till further orders. (iii) The Petitioner shall not repatriate any money abroad till the next date of hearing without leave of this Court. (iv) It is clarified that the Petitioner is entitled to receive inward foreign remittances [which is stated to be to the tune of Rs.556 crores (approx.)] from its Inter-Company Overseas Customers. (v) The Petitioner shall also file its monthly statement of ‘Payments Received as well as Made’.
This Court clarifies that the aforesaid arrangement is provisional and is subject to further orders to be passed by this Court.
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