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Tax Authorities' Order Quashed for Violation of Natural Justice; Remanded for Fresh Adjudication After Hearing.
Case-Laws
GST
The High Court quashed the impugned summary order passed without issuing Form DRC-01 show cause notice to the petitioner, violating principles of natural justice. The matter was remanded to the respondent authorities for de novo adjudication after providing an opportunity of hearing to the petitioner. Fresh order to be passed within 12 weeks in accordance with la

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Advisory for Taxpayers: New GST Provision for Metal Scrap Transactions
GST
Dated:- 14-10-2024

The government has issued Notification 25/2024-Central Tax, on October 9, 2024.under GST Sec

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New GST Forms Introduced for Waiver Applications: Streamlined Process for Interest and Penalty Relief u/s 128A.
Notifications
GST
The key points covered in the legal document are: 1. It introduces new forms (GST SPL-01 to GST SPL-08) for taxpayers to apply for waiver of interest and penalty u/s 128A of the GST Act. 2. Form GST SPL-01 is for making an application to seek waiver, providing details of the order, tax periods, and amount of tax, interest, and penalty demanded. 3. Form GST SP

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TDS now mandatory for metal scrap supplies between registered businesses from Oct 2024.
Notifications
GST
This notification amends the Central Goods and Services Tax Act, 2017 to mandate tax deduction at source (TDS) compliance for supply of metal scrap between registered persons. It inserts a new clause (d) specifying that any registered person receiving supplies of metal scrap falling under Chapters 72 to 81 of the Customs Tariff Act, 1975 from another registered person will be subjec

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Metal scrap suppliers need GST registration despite reverse charge from 10-10-2024.
Notifications
GST
The notification amends the earlier Notification No. 5/2017-Central Tax to exclude persons engaged in the supply of metal scrap falling under Chapters 72 to 81 of the Customs Tariff Act, 1975 from the exemption from GST registration if their entire supply is under reverse charge mechanism. The amendment comes into force from 10th October 2024. It mandates GST registration for metal scra

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Tax liability imposed without show cause notice & documents, violating natural justice.
Case-Laws
GST
Non-service of show cause notice violated principles of natural justice. Respondent imposed tax liability without providing opportunity and documents to petitioner for defense. Court remanded matter to respondent for fresh consideration after petitioner pays 10% of disputed tax amount, setting aside earlier order to maintain consistency with previous cases allowing petitioner to present

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Blocking Input Tax Credit Without Due Process Invalidated; Cross-Utilization Disallowed; Rs. 2.44 Cr Credit Unblocked.
Case-Laws
GST
Tax authority's action of blocking input tax credit in electronic credit ledger without following due process held untenable. Cross-utilization of credit between CGST and SGST not permissible. Respondents directed to unblock credit of Rs. 2,44,05,567 in petitioners' electronic credit ledger. Utilization of remaining credit disallowed till show cause notice

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Court Remands Case for Verification of GST Credit Claims and Invoice Correlation Due to Registration Issues.
Case-Laws
GST
The High Court examined the recovery of wrongly availed credit with penalty for wrongful availment during transition to GST regime. The petitioner's branches were not registered, and there was no correlation between invoices and claims made. The Court analyzed the registration status u/r 9 of Central Excise Rules, 2002, which allows exemption granted through a 2010

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Allegations of tax suppression; statutory remedies advised over writ petition for factual disputes. Rectification plea rightly rejected after due process.
Case-Laws
GST
Petitioner failed to establish grounds for invoking Section 74 of CGST/SGST Acts regarding suppression allegations. Disputed questions of fact cannot be adjudicated through writ petition under Article 226. Petitioner directed to pursue statutory remedies for adjudication. Rectification application was properly rejected a

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GST registration cancellation order set aside for lack of reasoning, violating natural justice principles.
Case-Laws
GST
Order cancelling GST registration quashed due to lack of reasons and violation of principles of natural justice. While SCN proposed cancellation citing incorrect form, impugned order merely reproduced provisions of Sections 29 and 30 without specifying grounds for cancellation. Failure to provide reasoning renders order unsustainable, entitling petitioners to succeed.

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Detention Order Challenged for Export Goods; Court Requires Verification for Zero-Rated Tax Status via GSTR-1 Submission.
Case-Laws
GST
In the case of a detention order u/s 129(3) of the Central Goods and Services Tax Act, 2017, the petitioner challenged the order on the grounds that the goods were meant for export and thus qualified for Zero Rate Sale, rendering any levy of tax or penalty without jurisdiction. The High Court held that considering the peculiar facts of the case, where t

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CGST Authority's Registration Cancellation Reinstated; Orders Quashed for Violating Natural Justice Principles.
Case-Laws
GST
The Central Goods and Services Tax (CGST) Authority accepted the petitioner's voluntary application for cancellation of registration with effect from 8th May 2023. However, the subsequent orders revoking the registration cancellation were passed contrary to the principles of natural justice. Consequently, all proceedings initiated thereafter were quashed. The pet

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Blocking Supplier's Credit Ledger Without Show Cause Notice Breaches Natural Justice; Court Sets Aside Action.
Case-Laws
GST
Blocking of a supplier's credit ledger by mentioning 'Registration of supplier has been cancelled' without issuing a show cause notice violates principles of natural justice. Section 74 statutorily recognizes and mandates adherence to natural justice principles, while Rule 86A is silent on this aspect. Implementing Rule 86A without following natural justice may ca

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Court overrules tax authority's order for denying Input Tax Credit without hearing petitioner's objections.
Case-Laws
GST
Impugned order set aside due to violation of principles of natural justice. Input Tax Credit disallowed without considering petitioner's objection. Petitioner granted final opportunity to appear before respondent authorities with supporting materials on specified date and time to present case. If opportunity not availed, impugned order revived. Petition disposed.

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Judicial review of tax authority's order for procedural flaws & lack of due process. Partial deposit ordered, fresh hearing granted.
Case-Laws
GST
Impugned proceedings challenged for exceeding scope of show cause notice, non-consideration of submissions during investigation and payments made, gross non-application of mind to material facts, and violation of natural justice principles. Impugned order set aside, petitioner directed to deposit 25% of disputed tax within two weeks, tax alre

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Taxpayer contests excess ITC claim, GSTR mismatch; seeks natural justice opportunity.
Case-Laws
GST
ITC availed in excess of credit reflected in GSTR-2A, mismatch between GSTR-3B and GSTR-2A, ITC not reversed based on GSTR-2A debit, non-generation of e-way bill. Petitioner seeks opportunity to explain discrepancies, invoking principles of natural justice. High Court set aside impugned order, directed petitioner to deposit 25% of disputed tax after adjusting Rs. 1,00,000 already paid wit

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Revenue Authorities Violated Natural Justice by Blocking Credit Ledger Without Hearing, Lacking Independent Verification.
Case-Laws
GST
The High Court held that the revenue authorities committed grave illegality by not granting pre-decisional hearing to the appellants before blocking their Electronic Credit Ledger u/r 86A of CGST Rules, violating principles of natural justice. The Court observed that although Rule 86A doesn't expressly provide for pre-decisional hearing, it has to be re

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IGST on Ocean Freight in FOB Transactions Invalidated; Notification Challenged and Annulled as Unconstitutional.
Case-Laws
Customs
Entry No. 10 of Notification No. 10/2017- Integrated Tax (Rate) dated 28.6.2017 was challenged as ultra-vires the IGST Act and Articles 14 and 265 of the Constitution, even for imports on FOB basis. The court held that IGST u/s 5(1) is leviable on the value determined u/s 3 of the Customs Tariff Act, 1975, at the point when customs duties are levied u/s 12 o

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Cancellation order quashed for lack of hearing & reasons; remanded for fresh decision after due process.
Case-Laws
GST
Order of cancellation of registration passed by Assessing Officer upheld by dismissing appeal on limitation ground challenged for not providing opportunity of hearing and without assigning reasons for cancellation, violating principles of natural justice. Court quashed orders and remanded matter to Assessing Officer at show cause notice stage, directing registration to

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Fly Ash Blocks attract 5% GST rate regardless of fly ash content percentage. Clarified by Circular 179/11/2022-GST.
Case-Laws
GST
Fly Ash Blocks are classifiable under Entry No. 225B of Schedule-I, attracting a GST rate of 5%, as per the clarification issued by Circular No. 179/11/2022-GST dated 03.08.2022. The condition of 90% or more fly ash content applies only to Fly Ash Aggregate and not to Fly Ash Bricks or Fly Ash Blocks. Consequently, the orders passed by the Advance Ruling Auth

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High Court Overturns Dismissal; Firm to Get Reconsideration Due to Hearing Breach Under CGST Act.
Case-Laws
GST
The High Court quashed the orders dismissing the appeal filed by the petitioner firm on grounds of limitation and the order passed u/s 73(9) of the Central Goods and Services Tax Act, 2017. The managing partner of the petitioner firm was critically ill with cancer from March to August 2022, and the firm had uploaded returns for March, April, and May 2022. However, the responde

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Renting non-residential property by unregistered to registered attracts reverse charge IGST from Oct 2024.
Notifications
GST
The notification seeks to amend Notification No. 10/2017-Integrated Tax (Rate) under the IGST Act to include service by way of renting any property other than residential dwelling by an unregistered person to a registered person under reverse charge mechanism. This amendment will come into force from 10th October, 2024. The notification inserts a new serial number

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Tax on rental income from commercial properties to be paid by tenant under reverse charge.
Notifications
GST
This notification amends the Notification No. 13/2017-Central Tax (Rate) to bring the service of renting any property other than residential dwellings under the reverse charge mechanism (RCM) for Goods and Services Tax (GST). Any registered person receiving such rental services from an unregistered person will be liable to pay GST under RCM. The amendment comes into effect from 1

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IGST Amendment: Exemptions for Airline Services, Electricity Utilities, R&D, and Vocational Training Effective 2024.
Notifications
GST
This notification seeks to amend the Integrated Goods and Services Tax (IGST) rate notification to exempt certain services from IGST. It inserts new entries exempting import of services by an airline company's Indian establishment from its related entities abroad without consideration, subject to conditions. Services incidental to electricity transmissio

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GST Exemption Updates: Electricity, R&D, Education, and Skill Development Services Now Tax-Free.
Notifications
GST
This notification seeks to amend Notification No. 12/2017-Central Tax (Rate) to exempt certain services from Goods and Services Tax (GST). The key amendments are: exempting services related to providing metering equipment, testing, releasing electricity connections, shifting meters, issuing duplicate bills by electricity transmission and distribution utilities; exempting re

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