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Case-Laws – GST – Highlights – Summary order quashed due to absence of underlying order – Annexure-A summary dated 13.08.2019 in Form GST DRC-07 set aside as no order passed under Act – consequent recovery action including attachment of bank accounts quashed – respondents directed to lift attachment of petitioner's bank accounts forthwith – 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 – Extension of time for issuance of order u/s 73(9) for recovery of unpaid/short-paid tax or wrongly availed/utilized input tax credit. State GST authorities contend affidavits required. Jurisdictional issue raised, writ petition to be heard. Affidavit-in-opposition within 4 weeks, reply within 3 weeks thereafter. Prima facie case made out, interim stay on impugned demand order till December 2024 or further order. Liberty to mention after expiry of period for exchange of affidavits. – 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 rejected on limitation grounds but petitioners' explanation ignored; appellate authority directed to note explanation per HC precedent, condone delay, hear appeal on merits expeditiously within 8 weeks; appellate order set aside. – 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 proper officer's order cancelling GST registration ab initio (from the initial date) is bereft of reasons and does not spell out grounds, violating principles of natural justice. The show cause notice (SCN) merely reproduces statutory provision u/s 29(2)(e) of CGST Act regarding cancellation on grounds of fraud, wilful misstatement, or suppression of facts, without disclosing nature of alleged fraud, misstatement, or suppressed facts. SCN fails to meet requisite standards, not enabling meaningful response. Cancellation order also lacks reasons or grounds. HC directs cancellation order to take effect from SCN date (28.06.2023), not retrospectively from 29.12.2022. 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 – Exemption of Central Tax for electricity services under Serial no. 25 of notification dated 28th June, 2017 – respondent invoked Section 74 of CGST Act, 2017 based on circular dated 1st March, 2018 – petitioner, a distribution licensee under Electricity Act, 2003, entitled to exemption notification – clarification in circular cannot be treated as clarification of exemption notification u/s 11(1) – circular declared ultra vires to Section 8 and notification no. 12/2017-CT (R) – petitioner made prima facie case, raised jurisdictional issue, entitled to interim protection – directed to participate in proceedings, no final order without court's leave – liberty to mention after affidavits exchange period. – 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 alleged due to notice being served under incorrect tab on online portal. Court found notice was uploaded, though under “additional notices” tab instead of “view notices and orders” tab. Controversy regarding adequacy of service by uploading under “additional notices” tab not decided. Petitioner directed to avail alternate remedy of appeal before appellate authority within 30 days, as appeal available against order. 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 – Petitioner sought issuance of Writ of Mandamus to withdraw respondent's orders freezing company's accounts. Court directed respondent to dispose petitioner's representation within two weeks after pre-deposit of Rs. 4,43,078/- and filing statutory appeal before Appellate Authority, considering merits and law. Writ 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 impugned show cause notice (SCN) did not contain any specific allegations against the petitioner regarding issuance of invoices without supply of goods, merely referring to Rule 21(g) and stating violation of Rule 86B. The SCN lacked details of invoices allegedly not covered by supply of goods, violating principles of natural justice as the noticee could not respond to vague allegations. The impugned order cancelling GST registration with retrospective effect went beyond the scope of the SCN. The High Court set aside the cancellation order and SCN, directing restoration of the petitioner's GST registration forthwith, as the cryptic allegations could not be the basis for cancellation. – 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 GST registration ab initio with retrospective effect from 01.07.2017 violated principles of natural justice as Show Cause Notice (SCN) did not specify any reason or provision allegedly violated by petitioner. SCN failed to propose cancellation with retrospective effect. SCN bereft of reasons, failing to meet standards required for a show cause notice to enable meaningful response. Order dated 16.06.2020 cancelling petitioner's GST registration lacked reasons, merely referring to SCN and non-existent reply. Order directed to take effect from SCN date 29.05.2020, not ab initio. – 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 occurred as the impugned SCN was uploaded under 'View Additional Notices & Orders' category, claimed to be inaccessible by petitioner. Court held that issue was covered by earlier decisions rejecting contention that uploading notices under 'Additional Notices' constituted sufficient service u/s 169 of CGST Act, 2017. GST Authorities redesigned portal to ensure 'View Notices' and 'View Additional Notices' tabs are adjacent. Impugned SCN was issued before portal redesign. Petition allowed, impugned order set aside, matter remanded for fresh adjudication of SCN. – 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 did not have reasonable opportunity to contest tax demand due to mismatch between turnover in GSTR 3B and GSTR 1. Impugned order set aside on condition petitioner remits 10% of disputed tax demand within two weeks and permitted to submit reply to show cause notice within said period. 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 – Excess stock found during survey at petitioner's business premises triggered initiation of proceedings u/s 130 of GST Act. Court held if excess stock is found, proceedings u/ss 73/74 of GST Act should be initiated, not Section 130. Citing precedent, Court ruled proceedings u/s 130 cannot be initiated for excess stock found during survey. Impugned orders initiating proceedings u/s 130 against petitioner quashed as unsustainable in law. – 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 garnishee order seeking refund of appropriated amounts dismissed as entitlement contingent on pending appeal's outcome. However, appellate authority directed to expeditiously dispose appeal within two months considering tax liability discharged and penalty recovered to ensure justice. – 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 – Maintainability of appeal u/s 107 against cancellation of GST registration due to non-filing of returns discussed. Delay in filing appeal could have been condoned under sub-sections (3) and (4) as appeal filed within seven months from cancellation order. Appellate authority could alternatively grant opportunity to approach u/s 30 for revocation after paying applicable dues. Section 14 of Limitation Act, 1963 providing exclusion of time spent in prosecuting matter in wrong forum applicable. Order set aside, petitioner permitted to file application u/s 30 within 30 days after completing formalities. – 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 appellate order u/s 107 of the CGST Act, 2017 in the State of Andhra Pradesh must be issued in both Hindi and English. Central Government Rules mandate the use of both languages for official documents. Communications from Central Government to region “C,” where Andhra Pradesh is, should be in English. The Commissioner (Appeals) must provide orders in English to the petitioners within three weeks. High Court disposed of the writ petitions with this direction. – 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 – Rejection of refund of unutilized Input Tax Credit (ITC) due to delay of 2 days beyond the 60-day statutory limit u/s 54(7) of the Act. Court held that the term “shall” in the section is directory, not mandatory, considering the availability of interest on delayed refunds u/s 56. Rigid adherence to the time limit would not serve the legislative intent. The impugned orders were deemed well-reasoned, with no procedural flaws or legal violations. Petitioner failed to show any merit for interference. High Court dismissed the application, finding no grounds for intervention. – 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 examined a challenge against a notification issued by the Central Board of Indirect Taxes and Customs, questioning its validity u/s 168(A) of the CGST Act, 2017 due to lack of GST Council recommendation. The court found the notification prima facie inconsistent with the law, indicating potential failure of actions based on it. An assessment of force majeure applicability in light of GST Council meeting minutes was deemed necessary, with authorities given a chance to present their stance and evidence. Pending further notice, petitioners were granted interim protection against coercive measures based on the contested assessment order. Respondents were instructed to submit affidavits by a specified date for further proceedings. – 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 – Provisional attachment of Bank Accounts upheld u/s 83(1) of CGST Act. Objection filed u/r 159(5) CGST Rules. Only Commissioner can order provisional attachment. Impugned order by Additional Director General deemed valid. Court directs Commissioner to decide objections within three weeks. Petition disposed by High Court. – 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 – Detention of goods due to incomplete Part B of E-way bill. No dispute on documents/goods. Part B filled before notice/seizure order. No mens rea found to evade tax. Citing M/S ROLI ENTERPRISES case, technical error without tax evasion intent warrants no penalty u/s 129(3). Similar ruling in PRECISION TOOLS INDIA case. Orders dated April 22, 2021 and November 20, 2021 quashed by HC. Writ 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 case involved a challenge to a penalty imposed u/s 129 of the Goods and Service Tax Acts. The court held that without proof of intent to evade tax, such penalties lack legal basis. The petitioner had presented all documents during seizure, except one, which was later provided. The court found no factual support for the alleged tax evasion intent. The order dated July 20, 2024, was quashed, directing release of the vehicle and goods within two weeks. The High Court disposed of the 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 – The petition challenges the inclusion of CGST amount in petitioner's turnover, contrary to CGST Act definition. Lack of proper personal hearing violates natural justice principles. HC holds statutory appeal remedy cannot be avoided despite 10% payment requirement. Appellate Authority can consider filed documents, assess subordinate officers' conduct. Assessing Officer's difficulty in verifying petitioner's claims due to lack of supporting documents. Court notes petitioner's submission of annual return but deems examination of supporting documents falls under Authority's jurisdiction. Petition dismissed, granting liberty to file appeal. – 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 demand-cum-show-cause – no opportunity for written explanation – violation of natural justice. Writ Court typically doesn't entertain challenges to show-cause notices as they don't affect parties' rights immediately. Show-cause notices can be challenged if issuing authority lacks jurisdiction. Supreme Court in SPECIAL DIRECTOR VERSUS MOHD. GHULAM GHOUSE emphasized jurisdictional issues can be raised before approaching Court. Interim orders shouldn't strip authorities of decision-making power. Following this, writ appeal rejected, petitioner advised to respond to notice and raise contentions before authorities for consideration. Appeal dismissed by High Court. – 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 impugned order canceling the petitioner's GST registration, citing violation of natural justice principles. The order and subsequent show cause notice failed to provide adequate justification for dropping the proceedings. The petitioner was given less than 24 hours to appear before authorities despite a mention of seven days. This lack of reasonable time for response and failure to consider the petitioner's reply led to the conclusion of natural justice violation. The court allowed the petition, setting aside the order. – 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 taxability of supply of flying training services by an Approved Flying Training Institute. The institute fulfills conditions as an Educational institute under GST regime. The Curriculum and training program are approved by the Director General of Civil Aviation (DGCA). The institute issues Course completion Certificates recognized by relevant regulations. The institute falls under Entry No. 66 of Notification No. 12/2017-Central Tax (Rate). The Circular No. 117/36/2019-GST confirms that principles for Maritime Training Institutes apply to Flying Training Institutes approved by DGCA. The supply of Flying Training Services for Commercial Pilot License is exempted from GST. The rate of GST applicable is deemed irrelevant. The Advance Ruling Authority (AAR) provided the ruling. – TMI Updates – Highlights, quick notes, marquee, annotation, news, alerts Tax Management India – taxmanagementindia – taxmanagement – taxmanagementindia.com – TMI – TaxTMI – TMITax

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Notifications – GST – Highlights – Notification issued by Ministry of Finance, Department of Revenue, brings into effect Sections 11, 12, and 13 of the Finance Act, 2024. Effective dates for amendments to the Central Goods and Services Tax Act, 2017 are specified: Section 13 to be enforced from October 1, 2024, while Sections 11 and 12 to be enforced from April 1, 2025. The notification is made under the powers granted by the Finance Act, 2024, by the Central Government. – TMI Updates – Highlights, quick notes, marquee, annotation, news, alerts Tax Management India – taxmanagementindia – taxmanagement – taxmanagementindia.com – TMI – TaxTMI – TMITax

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