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Case-Laws – GST – Highlights – The Court rejected the petitioner's challenge to the show cause notice (SCN) issued u/s 74 of the CGST Act on jurisdictional grounds. The petitioner failed to submit a reply to the SCN, which emanated from a GST audit report after examining records for specific periods. The objection regarding the officer's lack of jurisdiction over the petitioner's business in other States was misconceived. The Court held that officers appointed u/ss 4, 5, and 6 of the CGST Act have the same powers, and a State GST Officer is authorized as a proper officer under the Act. Once an SCN is issued by a State GST Officer, no other officer from another State can initiate proceedings regarding tax evasion, wrongful input tax credit, or other issues u/s 74. The Chandigarh authority had the power to issue the SCN concerning the company's dealings in other States, and there was no jurisdictional error. The petitioner is free to raise objections and arguments in its reply to the SCN's contents. The petition was dismissed. – TMI Updates – Highlights, quick notes, marquee, annotation, news, alerts Tax Management India – taxmanagementindia – taxmanagement – taxmanagementindia.com – TMI – TaxTMI – TMITax

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Case-Laws – GST – Highlights – This case deals with the issue of granting bail in a case involving forgery, creation of fake GST firms, and related economic offenses. The key points are: The court held that the present case is one of forgery and not related to GST, hence the accused cannot claim the benefit of bail granted in other GST cases. The court analyzed the concepts of inquiry, investigation, and trial under the Criminal Procedure Code, concluding that the arguments raised by the accused regarding jurisdiction have no merit. The court examined the applicability of Section 27 of the Indian Evidence Act, 1872, which deals with the relevancy of information received from an accused person in police custody. It held that the confessional statements made by the accused leading to the discovery of laptops, mobiles, SIM cards, and fake invoices are admissible as evidence under this section. The court emphasized that economic offenses like fraud, money laundering, and corruption are viewed seriously as they affect the economic fabric of society. In this case, involving crores of rupees and registration of fake firms using forged Aadhaar and PAN cards, the court found grounds to deny bail. The accused were avoiding court proceedings and causing deliberate delays, indicating interference with the judicial process, which further justified the denial of bail. The court also rejected the jurisdictional arguments raised by the accused, stating that the genuineness of the. – TMI Updates – Highlights, quick notes, marquee, annotation, news, alerts Tax Management India – taxmanagementindia – taxmanagement – taxmanagementindia.com – TMI – TaxTMI – TMITax

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Case-Laws – GST – Highlights – Appellate Authority's orders regarding refund of accumulated input tax credit with interest and determination of petitioner's status as an 'intermediary' u/s 2(13) of IGST Act set aside. Matters remanded for reconsideration by Appellate Authority to provide opportunity to both parties to present claims and contentions afresh within stipulated timeframe, as earlier orders failed to address factual and legal submissions correctly. Petition allowed for remand. – TMI Updates – Highlights, quick notes, marquee, annotation, news, alerts Tax Management India – taxmanagementindia – taxmanagement – taxmanagementindia.com – TMI – TaxTMI – TMITax

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Case-Laws – GST – Highlights – Search and seizure operations conducted by respondent No. 3 on petitioner-Company's sister entity premises, seizing material like sales registers, accounts books, and data. Petitioner unable to file detailed reply to Show Cause Notice due to seized documents. Court accepted petitioner's explanation, set aside impugned orders, and remanded matter to respondent No. 2 for reconsideration of reply stage, directing respondent No. 3 to provide seized documents' copies to petitioner-Company. – TMI Updates – Highlights, quick notes, marquee, annotation, news, alerts Tax Management India – taxmanagementindia – taxmanagement – taxmanagementindia.com – TMI – TaxTMI – TMITax

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Case-Laws – GST – Highlights – The petitioner's GST registration was cancelled retrospectively without indicating specific reasons, violating principles of natural justice. While the authority can cancel registration retrospectively u/s 29(2) of the CGST/DGST Act, the decision cannot be arbitrary. The show cause notice did not propose retrospective cancellation. The impugned order lacked reasoning for retrospective cancellation. Therefore, the order was modified to make cancellation operative from the show cause notice date instead of retrospectively. – TMI Updates – Highlights, quick notes, marquee, annotation, news, alerts Tax Management India – taxmanagementindia – taxmanagement – taxmanagementindia.com – TMI – TaxTMI – TMITax

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Case-Laws – GST – Highlights – Writ petition concerning levy of penalty u/s 129 of CGST Act for alleged tax evasion and undervaluation during detention of goods. Court permitted petitioners to pay tax and penalty calculated on market value determined by authorities within one week. Upon receipt of payment, authorities directed to release detained vehicle and goods within seven days thereafter. Writ petition partly allowed. – TMI Updates – Highlights, quick notes, marquee, annotation, news, alerts Tax Management India – taxmanagementindia – taxmanagement – taxmanagementindia.com – TMI – TaxTMI – TMITax

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Case-Laws – GST – Highlights – In the present case involving economic offenses related to GST fraud, the court denied bail to the applicants. The applicants were found to be connected with Sanjay Dhingra in transactions involving fake GST firms registered using stolen PAN and Aadhaar details. The money trail and financial transactions revealed unexplained huge amounts being deposited into the applicants' accounts, indicating their involvement in illegal activities. The court noted that such fraudsters set up companies only on paper to generate fake transactions and claim Input Tax Credit, abandoning them later. Economic offenses like large-scale fraud, money laundering, and corruption are viewed seriously as they affect the economic fabric of society. The court considered factors like the nature of accusations, evidence, severity of punishment, character of the accused, possibility of securing presence at trial, apprehension of witness tampering, and public interest. Precedents are not the sole basis for granting or refusing bail, and each case is considered on its specific facts and circumstances. Based on the evidence and submissions, the court found it not a fit case for granting bail and dismissed the application. – TMI Updates – Highlights, quick notes, marquee, annotation, news, alerts Tax Management India – taxmanagementindia – taxmanagement – taxmanagementindia.com – TMI – TaxTMI – TMITax

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Case-Laws – GST – Highlights – The imposition of a time limit for availing Input Tax Credit (ITC) is violative of Articles 14, 19(1)(g), and 300A of the Constitution of India. The insertion of sub-section (5) u/s 16 of the CGST Act, effective from July 1, 2017, provided that for invoices or debit notes pertaining to Financial Years 2017-18 to 2020-21, the registered person could take ITC in any return filed until November 30, 2021. However, this decision was taken without considering the stipulation in sub-section (5) of Section 16, effective from July 1, 2017. Consequently, the High Court remitted the matter to the authority to pass a fresh order considering the implication of sub-section (5) of Section 16 of the CGST Act. – TMI Updates – Highlights, quick notes, marquee, annotation, news, alerts Tax Management India – taxmanagementindia – taxmanagement – taxmanagementindia.com – TMI – TaxTMI – TMITax

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Case-Laws – GST – Highlights – Original order confirming GST demand was passed without opportunity of hearing. Appeal dismissed on limitation ground. Notification dated 02.11.2023 allows condonation of delay for appeals filed before 31.01.2024 against orders passed before 31.03.2023 u/ss 73/74 of GST Act. Impugned order passed on 20.07.2023, after 31.03.2023 cutoff date, hence notification inapplicable. Cited judgement deals with non-condonation of delay beyond statutory limitation period. Delay in filing appeal cannot be condoned beyond prescribed limitation under the Act. Petitions dismissed for lack of merit. – TMI Updates – Highlights, quick notes, marquee, annotation, news, alerts Tax Management India – taxmanagementindia – taxmanagement – taxmanagementindia.com – TMI – TaxTMI – TMITax

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Case-Laws – GST – Highlights – The court held that Section 6(2)(b) of the Act treats the empowered officers under the SGST/UGST Act at the central level to be at par and does not prescribe for transfer of investigation from State authority to Central authority or vice-versa. The object of Section 6(2)(b) is to avoid multiple proceedings on the same subject matter. Once the State authority initiates action, it would be the proper officer to conduct further proceedings. The Central Tax Officer cannot initiate proceedings if the State Tax Officer has already commenced proceedings. The word “subject-matter” means the nature of proceedings. If one authority has initiated proceedings, the other cannot initiate proceedings for the same subject matter. Allowing such action would violate Section 6(2)(b). The court quashed the Blocked Credit Ledger and summons issued by the Central authority as the State authority had already initiated proceedings. The petition was allowed. – TMI Updates – Highlights, quick notes, marquee, annotation, news, alerts Tax Management India – taxmanagementindia – taxmanagement – taxmanagementindia.com – TMI – TaxTMI – TMITax

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Case-Laws – GST – Highlights – Violation of principles of natural justice due to absence of appellant's counsel during proceedings. High Court noted counsel's absence on certain dates, but matter reserved on 29.04.2024 without hearing. Unexpectedly relisted on 18.07.2024 without counsel's presence. Impugned order cancelling bail passed on 25.07.2024 without hearing appellant's counsel who had obtained bail from trial court. Impugned order set aside, matter remanded to High Court to reconsider respondent's application for cancellation of bail after hearing both sides. Appellant to ensure counsel's presence, avoid delay. – TMI Updates – Highlights, quick notes, marquee, annotation, news, alerts Tax Management India – taxmanagementindia – taxmanagement – taxmanagementindia.com – TMI – TaxTMI – TMITax

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Case-Laws – GST – Highlights – The petitioner challenged the assessment order solely on the ground of not availing the statutory remedy of appeal. The court held that the petitioner did not file an appeal and allowed the assessment order to become final, subsequently approaching the court through a writ petition to challenge the tax, interest, and penalty determination. The petitioner was given an opportunity for a hearing, and the impugned order was passed thereafter. No plausible explanation was provided for not resorting to the statutory appeal remedy. The petitioner consciously chose not to file an appeal u/s 107 of the RGST/CGST Act, 2017, allowing the limitation period and the maximum condonable delay period to expire. Having not preferred an appeal, the writ petition was dismissed as not maintainable. – TMI Updates – Highlights, quick notes, marquee, annotation, news, alerts Tax Management India – taxmanagementindia – taxmanagement – taxmanagementindia.com – TMI – TaxTMI – TMITax

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Case-Laws – GST – Highlights – Cancellation of registration order quashed due to non-application of mind, absence of reasons, and violation of principles of natural justice. Court followed precedent where non-reasoned order was set aside, allowing petitioner to file reply to show cause notice. Impugned orders liable to be set aside, original order dated February 22, 2023 quashed and set aside, petition allowed. – TMI Updates – Highlights, quick notes, marquee, annotation, news, alerts Tax Management India – taxmanagementindia – taxmanagement – taxmanagementindia.com – TMI – TaxTMI – TMITax

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Case-Laws – GST – Highlights – Section 161 allows an affected person to apply for rectification of an order. The authority had previously passed an order and decided no rectification was necessary, which the assessee felt adversely affected them. The High Court set aside that order, directing the authority to deal with the rectification application in accordance with law. The rectification process is separate from an appeal against the assessment order on merits, as provided for by the statute. – TMI Updates – Highlights, quick notes, marquee, annotation, news, alerts Tax Management India – taxmanagementindia – taxmanagement – taxmanagementindia.com – TMI – TaxTMI – TMITax

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Case-Laws – GST – Highlights – Appeal dismissed on ground of limitation despite explanation for delay, petitioner made partial pre-deposit, no lack of bona fide evident, filing belated appeal not advantageous to petitioner, Appellate Authority's order set aside by HC, petition disposed. – TMI Updates – Highlights, quick notes, marquee, annotation, news, alerts Tax Management India – taxmanagementindia – taxmanagement – taxmanagementindia.com – TMI – TaxTMI – TMITax

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Case-Laws – GST – Highlights – Non-consideration of reply given pursuant to GST DRC-01A notice violates principles of natural justice. Rule 142(1A) merely allows proper officer discretion to issue communication, not adjudicate submissions. Right of assessee arises only after show cause notice u/r 142(1)(a) with hearing opportunity. Affording hearing at different stages not contemplated by legislature. Taxing statutes strictly construed without implying equity or hardship considerations. Since only communication issued, no grounds to entertain writ petition filed to stall pending proceedings. Writ petition dismissed. – TMI Updates – Highlights, quick notes, marquee, annotation, news, alerts Tax Management India – taxmanagementindia – taxmanagement – taxmanagementindia.com – TMI – TaxTMI – TMITax

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Case-Laws – GST – Highlights – This case pertains to the refund of penal amounts or taxes paid for goods seized due to lack of proper documentation during transit. The court held that the movement of goods accompanied by e-way bills, tax invoices, or delivery challans from the originating state shall be treated as bona fide and not attract any penalty or tax under the GST regime. The court agreed with the precedent set by the Andhra Pradesh High Court in Kaveri Enterprises v. State of Andhra Pradesh, which had considered similar contentions. The petition was disposed of, subject to the fulfillment of specified conditions. – TMI Updates – Highlights, quick notes, marquee, annotation, news, alerts Tax Management India – taxmanagementindia – taxmanagement – taxmanagementindia.com – TMI – TaxTMI – TMITax

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Case-Laws – GST – Highlights – Nonwoven coated fabrics laminated or impregnated with PVC cannot be classified under HSN 56031400 or Chapter 50. As the major constituent is PVC sheet (120 GSM out of 240 GSM), the goods would be classified under Chapter 39, based on the material or component that gives the essential character, as per the Explanatory Notes. A conjoint reading of manufacturing process, Section Notes, Chapter Notes leads to this conclusion that the product falls under Chapter 39 and not under Chapter 56 or 50. – TMI Updates – Highlights, quick notes, marquee, annotation, news, alerts Tax Management India – taxmanagementindia – taxmanagement – taxmanagementindia.com – TMI – TaxTMI – TMITax

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Case-Laws – GST – Highlights – Writ petition dismissed due to petitioner-Firm's failure to avail interim order for release of confiscated goods by furnishing bond and taxes within reasonable time. Disputed questions of fact regarding purchase and sale of goods, and finding of statutory authority about recipient being non-existent firm. High Court exercised discretionary powers under Article 226, considering all relevant facts, and declined to entertain writ petition in furtherance of public good. Serious disputed factual issues precluded High Court from exercising writ jurisdiction. – TMI Updates – Highlights, quick notes, marquee, annotation, news, alerts Tax Management India – taxmanagementindia – taxmanagement – taxmanagementindia.com – TMI – TaxTMI – TMITax

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Case-Laws – GST – Highlights – Petitioner challenged assessment order u/s 74 of GST enactments. Father had filed nil returns for outward supply in 2017-18. Show cause notice treated total purchase value as suppressed sales. Impugned order assumed processed turmeric must be sold within 18 months, deeming sale in February 2019 to compute tax liability. No discernible basis for such assumptions in impugned order. Impugned order set aside, matter remanded for reconsideration. Petitioner permitted to place additional documents within four weeks. Petition disposed of. – TMI Updates – Highlights, quick notes, marquee, annotation, news, alerts Tax Management India – taxmanagementindia – taxmanagement – taxmanagementindia.com – TMI – TaxTMI – TMITax

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Case-Laws – GST – Highlights – The High Court dismissed the petition, holding that it would not be appropriate to interfere in the matter during the pendency of the appeal before the appellate authority. The petitioner was granted the liberty to raise all submissions before the appellate authority, which would undoubtedly consider and pass appropriate orders. The Division Bench had protected the petitioner from recovery proceedings on the ground that the entire IGST amount had already been paid. According to Section 77 of the GST Act, if a registered person has paid Central or State Tax and is subsequently held liable for Inter-State GST, the wrongly deposited amount would be refunded, allowing payment as per the authorities' determination. This aspect can be duly verified by the first appellate authority. – TMI Updates – Highlights, quick notes, marquee, annotation, news, alerts Tax Management India – taxmanagementindia – taxmanagement – taxmanagementindia.com – TMI – TaxTMI – TMITax

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Circulars – GST – States – Highlights – This circular clarifies the regularization of refund of IGST availed in contravention of rule 96(10) of Assam GST Rules, 2017, where exporters had imported inputs without paying integrated taxes and compensation cess. Initially, if inputs were imported without IGST and cess by availing exemption notifications, but later the exporter paid these taxes with interest and got the Bill of Entry reassessed, then the IGST paid on exports shall not be considered in contravention of rule 96(10). The explanation inserted in rule 96(10) retrospectively clarifies that exemption benefit is not considered availed if IGST and cess are paid on inputs. Hence, refund of IGST on exports can be regularized in such cases where taxes were subsequently paid on imported inputs. – TMI Updates – Highlights, quick notes, marquee, annotation, news, alerts Tax Management India – taxmanagementindia – taxmanagement – taxmanagementindia.com – TMI – TaxTMI – TMITax

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Circulars – GST – States – Highlights – This circular clarifies GST rates and classification for certain goods based on recommendations of the 53rd GST Council meeting. Key points are: Solar cookers using solar and grid electricity attract 12% GST under heading 8516. All types of sprinklers, including fire water sprinklers, attract 12% GST under heading 195B. Parts of poultry-keeping machinery under 8436 91 00 attract 12% GST. The definition of “pre-packaged and labelled” excludes agricultural produce packages over 25 kg/litre from 5% GST levy. For supplies to/by government agencies for subsidized distribution from 1.7.2017 to 17.7.2022, issues are regularized subject to conditions like certification and ITC reversal. The circular provides clarity on GST rates and classification, regularizing past issues with conditions. – TMI Updates – Highlights, quick notes, marquee, annotation, news, alerts Tax Management India – taxmanagementindia – taxmanagement – taxmanagementindia.com – TMI – TaxTMI – TMITax

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Circulars – GST – States – Highlights – This trade circular provides clarifications regarding the applicability of GST on certain services based on the recommendations of the 53rd GST Council meeting. The key points are: GST exemption for services provided by the Ministry of Railways to the general public and between its zones/divisions, regularizing past GST liability. Exemption for services between Special Purpose Vehicles and the Ministry of Railways, regularizing past liability. Statutory collections by Real Estate Regulatory Authority are exempt under an existing notification. Incentives shared by acquiring banks with stakeholders under a digital payment promotion scheme are treated as subsidies and non-taxable up to the proportion decided by NPCI. Reinsurance of specified general and life insurance schemes exempt from GST is regularized for past periods. Reinsurance of government-sponsored insurance schemes with premium paid by the government is regularized for past periods. 'Reinsurance' includes 'retrocession' services. Accommodation services with value up to Rs. 20,000 per person per month for a minimum 90-day period are exempt prospectively and regularized for past periods meeting the criteria. – TMI Updates – Highlights, quick notes, marquee, annotation, news, alerts Tax Management India – taxmanagementindia – taxmanagement – taxmanagementindia.com – TMI – TaxTMI – TMITax

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Circulars – GST – States – Highlights – This trade circular provides revised procedure for electronic filing and processing of refund applications by Canteen Stores Department (CSD) under West Bengal Goods and Services Tax Act, 2017. CSD can file refund application electronically on common portal for 50% refund of state tax paid on inward supplies for subsequent supply to Unit Run Canteens or authorized customers. Application to be filed quarterly or clubbed for multiple quarters. Refund eligibility subject to supplier filing outward supply details and returns. Proper officer to process application similar to other refunds, verifying invoices, tax payment, and ITC reversal. Previous manual process superseded, except for already filed applications. Difficulties in implementation to be brought to Commissioner's notice. – TMI Updates – Highlights, quick notes, marquee, annotation, news, alerts Tax Management India – taxmanagementindia – taxmanagement – taxmanagementindia.com – TMI – TaxTMI – TMITax

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