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Case-Laws – GST – Highlights – The impugned orders u/s 16(2)(c) of the CGST/DGST Act, 2017 demanding excess Input Tax Credit (ITC) due to non-reconciliation of information are set aside as they lack reasoning and violate principles of natural justice by not dealing with explanations submitted. The Court noticed a pattern of unreasoned orders being passed near the limitation period's expiry, merely reproducing show cause notice details without addressing taxpayer explanations. The respondent conceded the retrospective GST registration cancellation of M/s Feron Life Sciences was restored, a relevant factor for considering the petitioner's demand. Consequently, the matter is remanded to the Proper Officer for fresh consideration, examining the petitioner's reply and affording a personal hearing opportunity. The petition is disposed of by way of 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 – Cancellation of a petitioner's Goods and Services Tax (GST) registration. The Show Cause Notice (SCN) did not provide specific details of the allegations, violating principles of natural justice. The petitioner had applied for revocation of the cancellation order, stating that business activities were halted due to COVID-19 but would resume gradually. The petitioner provided property tax receipts and explained ownership of the principal place of business. The cancellation order was passed by the Proper Officer based on directions from another authority, which was impermissible. The Proper Officer was required to independently assess the reasons for cancellation. The High Court set aside the SCN, cancellation order, and appellate order, directing the respondents to restore the petitioner's GST registration forthwith. – 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 appeal against the cancellation of the petitioner's GST registration in Form GST REG-19 with effect from 01.05.2023, on the ground of time limitation. The Court upheld the order of the appellate authority rejecting the appeal in limine, in view of the statutory limitation prescribed under the Act. The issue was covered on merits by a previous decision of the Court, where it was held that if any Input Tax Credit has remained unutilized, it shall not be utilized until it is scrutinized and approved by a competent officer of the Department. 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 – Petition challenging cancellation of GST registration dismissed on grounds of limitation. Petitioner directed to approach competent authority for restoration of GST number within seven days, subject to completion of requisite formalities, filing returns, and depositing taxes, penalty, and interest. Order based on similar previous decisions, without examining maintainability of writ petition despite availability of alternative remedy. Clarification provided that the order should not be construed as an opinion on maintainability of writ petitions in such cases. – 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 legal matter concerns the attachment of two bank accounts belonging to the petitioner, a private limited company, due to personal liability imposed on its directors. The High Court disposed of the petition by directing the respondent to consider and resolve the petitioner's representation dated 20-9-2023 within one month. The respondent must provide a reasonable opportunity to the petitioner and consider the provisions of the Finance Act while disposing of the representation. No costs were awarded. – 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 seizure order and show cause notice (SCN) on grounds that the address provided in the invoice was not the registered place of business at the time of detention. The court examined whether there existed mens rea (guilty mind) for tax evasion. It held that the revenue failed to establish mens rea, rendering the detention process, SCN, and penalty imposition without legal basis. Consequently, the seizure, SCN, and penalty were quashed. The revenue was directed to refund the penalty paid under protest by the petitioner within eight weeks. The petition was 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 – Bail granted in case involving creation of fake firms and passing of fake input tax credit. Considering nature of offense, punishment, available material, lack of evidence regarding device used for creating fake firms, and co-accused with more serious role already granted bail, applicant deemed eligible for bail upon furnishing personal bond and sureties to court's satisfaction, subject to imposed conditions. Application for bail 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 – Sections 16(2)(c) and 16(2)(d) of the Assam and Central Goods and Services Tax Acts, 2017, were challenged regarding the validity of punishing a purchasing dealer for the selling dealer's failure to deposit collected tax. The High Court held that the controversy is covered by the Delhi High Court's decision in On Quest Merchandising India Pvt. Ltd. case, where it was ruled that default assessment orders against purchasing dealers invoking Section 9(2)(g) of the DVAT Act for the selling dealer's default were set aside. Consequently, the impugned show cause notices and consequential orders were set aside in the present case. However, the Department can act against non-bona fide purchase transactions in accordance with the law. The writ petition was 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 petitioners sought transfer of unutilized input tax credit available in their ledgers as on 02.06.2014 to the AP GST regime. The court held that Section 56 of the Andhra Pradesh Reorganisation Act, 2014 deals with refund of excess tax collected, but is inapplicable to unutilized input tax credit, which is not excess tax paid. Consequently, the impugned demand orders in Form GST DRC-07 issued by the respondent were set aside, and the petition was allowed. The court clarified that the petitioners' only option was not to seek a refund, as Section 56 did not cover unutilized input tax credit. – 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 – Petition challenged impugned order passed by respondent for assessment year 2018-19, contending violation of principles of natural justice due to non-issuance of notices. Court held petitioner may have merits as dispute pertained to difference in turnover reported in GSTR-7 and GSTR-3B. Partial relief granted by setting aside impugned order and remitting case to respondent for fresh order on merits. Impugned order quashed, treated as addendum to show cause notices. Petitioner directed to file consolidated reply within 30 days and deposit 20% of disputed tax from electronic cash register. Petition disposed off by way of 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 – Bail was procured through misrepresentation and suppression of material facts by the applicant, who failed to disclose criminal history and prior conviction in a similar case. Despite objections raised in the first bail application, the applicant withdrew it and filed a second application without disclosing the material facts. The court held that economic offenses are serious, and the sessions judge rightly canceled the bail and examined the merits of the case due to the seriousness of allegations. The applicant's conduct of seeking regular bail without disclosing material facts justified cancellation of bail. The high court dismissed the application u/s 482 of CrPC, finding no merit in the arguments against cancellation of bail. – 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 orders for Assessment Years 2017-2018 and 2020-2021. Court set aside impugned orders, remitting cases to respondent for fresh orders on merits. Petitioner directed to pay 25% of disputed tax from Electronic Cash Ledger and respond to Show Cause Notices within 30 days for respective Assessment Years. Impugned orders treated as addenda to Show Cause Notices. 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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Circulars – GST – Highlights – Comprehensive guidelines issued for second special All-India drive against fake GST registrations from 16th August to 15th October 2024. Suspicious GSTINs identified through data analytics by GSTN/DGARM to be shared with tax authorities for verification. Non-existent GSTINs to be suspended/cancelled, with input tax credit blocked and recovered. Nodal officers appointed for inter-jurisdictional coordination through GSTN's 'Initiate Enquiry' module. Weekly reporting mechanism established for monitoring progress. Tax evasion detected to be quantified, with recoveries and arrests made. Unique modus operandi to be compiled for sharing across tax administrations. Feedback on outcome against each GSTIN shared by GSTN to be provided after drive's conclusion. – 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 quashed the seizure order and allowed the petition, holding that once the E-way bill was produced before the seizure order could be passed, it could not be said that any contravention of the Act's provisions had occurred. The court observed that although the goods were initially detained due to the absence of an E-way bill, the petitioner subsequently produced the E-way bill before the seizure order was issued. The authorities had the power to survey the petitioner's business premises to verify the transaction's correctness but chose not to exercise it. The court distinguished the case from the precedent cited, where goods were seized due to a complete lack of accompanying documents. – 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 – Assessment orders quashed due to petitioner's illness, remanded for fresh orders. Petitioner directed to file consolidated reply within 30 days. Cases remitted to respondent to pass fresh orders on merits and in accordance with law after considering petitioner's reply and medical condition. Petitioner had not replied to show cause notices, citing kidney ailment treatment. Impugned orders treated as addendum to show cause notices. – 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 summary is as follows: The show cause notice for cancellation of registration u/s 29(2)(e) was invalid as it lacked specific factual details and reasons for alleging fraud, misstatement, or suppression of facts. The subsequent orders cancelling registration were quashed due to the defective notice violating principles of natural justice. While the registration was restored, the petitioner cannot utilize any remaining unutilized Input Tax Credit until fresh show cause proceedings conclude. – 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 – Challenge to suspension order of State GST officer for issuing refund to a fake exporter without proper verification. Petitioner contests suspension citing lack of strong prima facie evidence and non-application of mind by respondents. High Court notes quasi-judicial nature of refund process, requiring timely processing and balancing exchequer's interest. Compliance with Act and circular sufficient for refund order; suspension warranted only for serious misconduct. Court finds insufficient evidence of moral turpitude or grave misconduct, quashes suspension order. 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 – The High Court addressed a challenge to an assessment order due to discrepancies in turnover between GSTR-7 and GSTR-3B. The petitioner failed to respond to notices preceding the order. The court noted that had the petitioner responded, the outcome may have been different. The petitioner is granted a fresh chance to present their case. The impugned order is set aside, and the case is remitted back for a new order, with the condition that the petitioner deposits 10% of disputed tax within 30 days. The petition is 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 case involves a challenge to Assessment Orders for multiple Assessment Years u/s 74 of the respective GST enactments, 2017. The petitioner failed to provide proper information to the department, leading to shortcomings in the assessment process. The Court noted that certain charges collected by the petitioner may be taxable under GST laws. The Court directed the petitioner to cooperate with the respondent, quashed the Assessment Orders, and remitted the case for fresh assessment. The petitioner must respond to Show Cause Notices and provide necessary documents. The High Court disposed of the Writ Petitions. – 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 case involves the transfer of title of goods from a Free Trade Warehousing Zone (FTWZ) unit to customers in the Domestic Tariff Area (DTA), or multiple transfers within the FTWZ followed by removal from the FTWZ unit. It examines whether this constitutes a bonded warehouse transaction under the CGST Act. The ruling confirms that such transfers fall under para 8(a) of Schedule III of the CGST Act. Additionally, it addresses the levy of Integrated Goods and Service Tax (IGST) on goods stored in the FTWZ unit and supplied to DTA customers, and the reversal of input tax credit of common inputs/capital goods required under the recent amendment to Section 17(3) of the CGST Act. The ruling highlights the significance of FTWZ units as customs bonded warehouses within Special Economic Zones (SEZs) and clarifies the tax implications for such transactions. – 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 – Petition maintainability hinges on alternative remedy availability. Excess tax refund due to ignorance and legal ambiguity. Supreme Court ruled that purely legal controversies without factual disputes should be decided by High Court, not dismissed for alternative remedy availability. However, where statute provides grievance redressal mechanism, writ petition should not be entertained. Appellant company did not dispute authority's jurisdiction or lack of CGST Act's redressal mechanism. High Court's discretion in refusing writ petitions due to efficacious alternate remedy was upheld, dismissing appeals. – 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 – Contradictory findings by Appellate Authority regarding classification of bio-fertilizers produced by petitioner and another manufacturer under different chapters leading to disparate GST rates of 12% and 5% respectively. Impugned order classifying petitioner's bio-fertilizers under Chapter 3002 quashed and matter remanded to Appellate Authority for fresh consideration after providing opportunity of hearing to petitioner due to anomaly in classification. – 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 – Validity of SCN issued u/s 73 of CGST Act challenged – recovery of demand of differential tax for tax period from 1-7-2017 to 31-12-2018 – transactions related to licensing services for right to use minerals including exploration and evaluation under Service Code 9973 37 – retrospective operation of CBIC circular dated 6-10-2021 – High Court issued notice to Opposite Parties – directed no coercive action for recovery of demand till next date of hearing – matter listed along with related writ petition. – 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 – Rectification of certain errors apparent on face of order denied in AAR ruling. AR contended AAR should have ruled on all queries. Held: No error apparent on record noticed, so no rectification required. As Customs Act provisions not attracted, differential IGST paid by applicant ineligible for ITC u/s of CGST Act, 2017. No apparent error or mistake on record as alleged by applicant, so application for advance ruling liable for rejection u/s 98(2) of CGST/TNGST Acts, 2017. – 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 – Plastic articles rope handle, vent plug, and split top/bottom support, used as parts/accessories for lead acid batteries, are classifiable under heading 8507 (electric accumulators) and not under headings 3901 to 3914 or 3926 (plastic articles). Though made of plastic, they are excluded from Chapter 39 by Note 2(s). They attract 14% CGST and SGST under Sl. No. 139 of Schedule IV of relevant notifications, as parts of electric accumulators under sub-heading 8507 90, covered under heading 8507. – TMI Updates – Highlights, quick notes, marquee, annotation, news, alerts Tax Management India – taxmanagementindia – taxmanagement – taxmanagementindia.com – TMI – TaxTMI – TMITax

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