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Case-Laws – GST – Highlights – The High Court quashed the order invoking Rule 86A for blocking the Electronic Credit Ledger (ECL) of the petitioner under the CGST/SGST Rules, 2017. The impugned order lacked independent or cogent reasons and relied on reports of enforcement authorities, which is impermissible. Crucially, no pre-decisional hearing was granted, violating principles of natural justice. The order erroneously described the supplier as non-existent or not conducting business, despite the supplier obtaining registration and the transaction occurring before cancellation of registration. The court held that the order failed to provide valid reasons for blocking the ECL, thereby warranting its quashing. – 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 application for advance ruling is liable for rejection under the first proviso to Section 98(2) of the CGST/TNGST Acts, 2017, as proceedings on the same issue were already initiated and pending against the applicant. The initiation of investigation through summons, recording of statements, furnishing of details by the applicant, and issuance of an Incident Report by DGGI, all preceded the filing of the advance ruling application. Pronouncing a ruling on an issue under investigation may vitiate the adjudication proceedings involving the show cause notice. The scope of 'proceedings' under the CGST Act encompasses investigations initiated against the applicant, involving the same issue raised in the advance ruling query. – 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 challenging adjudication order for recovery of inadmissible income tax return with interest and penalty. Court found non-application of mind and violation of principles of natural justice in the adjudication order as it failed to consider relevant documents. Writ petition dismissed solely on grounds of availability of alternate remedy, without examining merits. Court held preliminary ground raised by assessee in challenging adjudication order would not involve adjudication into facts, and writ court can examine effect of earlier order and subsequent proceedings on same set of facts. Writ petition restored for fresh hearing after affidavit-in-opposition filed by Department. Appeal 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 – Classification of body building activity on chassis owned by the principal, either a registered or unregistered customer, under the Goods and Services Tax (GST) regime. It clarifies that the body building activity undertaken by the applicant on customer-owned chassis constitutes a supply of service, classified under Service Accounting Code (SAC) 998881 'Motor vehicle and trailer manufacturing services'. The body building on chassis owned by a GST-registered customer is considered job work, while the same activity on chassis owned by an unregistered customer does not qualify as job work. Regardless of the customer's registration status, the applicable GST rate for the body building service is 9% under the Central GST Act and 9% under the State GST Act, as per the relevant notification entries. – 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 held that the value of free diesel supplied by the service recipient to the Goods Transport Agency (GTA) service provider cannot be included in the taxable value for calculating GST. This is based on Supreme Court judgments which consistently ruled that where the service recipient provides free supplies like diesel or explosives, their value cannot be added to the consideration paid to the service provider for determining service tax/GST liability. The cost of free supplies borne by the recipient is not part of the “gross amount charged” by the service provider. Therefore, as per the agreement where the service recipient bore the fuel cost, this free diesel value cannot be added to the taxable GTA service value u/ss 15(1) and 15(2)(b) of the CGST Act for GST calculation. The High Court set aside the Advance Ruling order which had held otherwise. – 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 set aside the impugned orders and consequential GST DRC-13 notice for attachment of Bank Account issued by the tax authority for the assessment year 2017-2018. The issue pertained to a mismatch of tax liability between GSTR-3B and GSTR-2A filed by the petitioner. The Court held that the principles of natural justice were violated as the show cause notice was uploaded on the GST Portal, and the petitioner was unaware of its issuance. The impugned order was passed without affording an opportunity of personal hearing to the petitioner to establish its case. Consequently, the Court provided an opportunity to the petitioner to establish their case on merits and in accordance with law, subject to conditions imposed. – 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 the issue of refund of unutilized Input Tax Credit where remittances were received in a different branch's bank account. The Court held that establishments should be treated as distinct persons under the CGST Act, even if they are part of the same entity. The petitioner had initially not provided bank account details for its Delhi branch but later updated them, including a Bangalore bank account where remittances were credited. The Court observed that these remittances were clearly connected to services rendered by the Delhi branch, and the objection raised was overly technical and unsustainable. The Court clarified that the CGST Act contemplates entities having multiple establishments across states, and Section 25(4) and (5) override the principle of branch offices not being separate juridical entities. Consequently, the High Court quashed the impugned orders and allowed 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 – Notices issued to a deceased person and subsequent assessment orders passed based on such notices are void ab initio, violating principles of natural justice. The High Court held that issuing notices and passing orders against a deceased assessee, without knowledge of their demise, renders the proceedings ex parte and suffers from violation of natural justice. Consequently, the impugned orders and consequential recovery proceedings were set aside, and the matter was remitted for fresh consideration by the authority. – 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 – Proceedings under the CGST Act, 2017 encompass not just judicial proceedings but also assessment, audit, detention/seizure/release of goods and conveyances, even if they do not culminate in a show cause notice. Investigation or inquiry initiated to safeguard government revenue qualifies as proceedings. The applicant's contention that inquiry/investigation does not constitute proceedings is misconceived. Since investigation by DGGI predated the applicant's advance ruling application on the same issue, the application is liable for rejection under the first proviso to Section 98(2) of the CGST/TNGST Acts, 2017. Consequently, the advance ruling application is rejected. – 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 order set aside. Assessing authority to re-do assessment considering amendment. Petitioner allowed to file objections within three weeks. Personal hearing to be granted. Garnishee proceedings related to demand for denial of Input Tax Credit u/s 16(4) for 2017-2018 to be withdrawn. Respondent permitted to continue garnishee proceedings for other demands. 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 – Challenge to summons jurisdiction – parallel proceedings – Central Authorities' jurisdiction u/s 6(2) Central Goods and Service Tax Act, 2017. Petitioner has no objection to investigation regarding M/s IESA Sales Pvt. Ltd. Held: Respondent No.3 can investigate pursuant to summons dated 21.06.2024 and 05.07.2024 regarding M/s IESA Sales Pvt. Ltd. However, based on communication dated 09.08.2024, Respondent No.3 cannot further investigate Petitioner's transactions with M/s Ridhi Industries and M/s Amazonite Steels Private Ltd. for the relevant 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 – The petitioner, a GST Inspector, sought anticipatory bail in a bribery case. The complainant alleged a demand for bribe by the petitioner during a telephonic conversation, corroborated by the visitor's register entry showing the complainant's visit to meet the petitioner. Despite the petitioner's attempt to flee through a secret passage, the prima facie evidence points towards his involvement. Considering the circumstances, the court dismissed the anticipatory bail petition, as the petitioner is not entitled to bail at this stage. – 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 Circular No.151/07/2021-GST as ultra vires provisions of entry at Serial No.66(a) read with Paragraph 2(y) of N/N. 12/2017-Central Tax (Rate) and corresponding Delhi GST Act notifications. Petitioner alleged refund rejection order dated 29.06.2022 was passed without considering submissions and denying personal hearing, violating natural justice. High Court disposed petition as part of batch matters, setting aside impugned refund rejection orders. Matter remanded to appropriate authority for fresh consideration. – TMI Updates – Highlights, quick notes, marquee, annotation, news, alerts Tax Management India – taxmanagementindia – taxmanagement – taxmanagementindia.com – TMI – TaxTMI – TMITax

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Goods and Services Tax – GST Dated:- 7-10-2024 – News – Dear Taxpayers, This is to inform taxpayers about recent developments concerning the application process for GST registration. It is advised to keep the following key points in mind during the registration process. 1. Rule 8 of the CGST Rules, 2017 has been amended to provide that an applicant can be identified on the common portal, based on data analysis and risk parameters for Biometric-based Aadhaar Authentication and taking a photograph of the applicant along with the verification of the original copy of the documents uploaded with the application. 2. The above-said functionality has been developed by GSTN. It has been rolled out in Kerala, Nagaland and Telangana on 5th October

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mentioned in point 3(b), she/he will be required to book the appointment to visit the designated GSK, using the link provided in the e-mail. 6. The feature of booking an appointment to visit a designated GSK is now available for the applicants of Kerala, Nagaland and Telangana. 7. After booking the appointment, the applicant gets the confirmation of appointment through e-mail (the appointment confirmation e-mail), she/he will be able to visit the designated GSK as per the chosen schedule. 8. At the time of the visit of GSK, the applicant is required to carry the following details/documents (a) a copy (hard/soft) of the appointment confirmation e-mail (b) the details of jurisdiction as mentioned in the intimation e-mail (c) Aadhaar Card and

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Case-Laws – GST – Highlights – Jurisdiction and powers of officers issuing show cause notices (SCNs) under the Goods and Services Tax (GST) Act, 2017. It clarifies that the Additional Director General, Goods and Services Tax Intelligence, Additional Director General, Goods and Services Tax, Additional Director General, Audit, and their subordinate officers have been notified by the Board to exercise powers of the Commissioner and Deputy/Assistant Commissioner, respectively, u/s 5 of the Act. This confers jurisdiction upon them to issue SCNs. The Court distinguishes the definition of 'Proper Officer' under the GST Act from the Customs Act, highlighting the specific conferment of assessment functions required under the Customs Act. It concludes that the petitioners challenging the SCNs on jurisdictional grounds are incorrect, and they must respond to the notices as per law. The High Court disposed of the petitions accordingly. – 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 – This instruction pertains to the systemic improvement regarding mapping and de-mapping of officers on the GSTN portal. It addresses an incident where a relieved officer fraudulently sanctioned a refund due to failure in de-mapping from the portal. To prevent such occurrences, it recommends immediate de-mapping upon relieving, monitoring by supervisory officers, compliance reporting to jurisdictional authorities, and clear accountability of concerned officers responsible for mapping/de-mapping. Principal Commissioners/Commissioners are directed to ensure strict compliance with the Directorate General of Vigilance's guidelines in this matter. – TMI Updates – Highlights, quick notes, marquee, annotation, news, alerts Tax Management India – taxmanagementindia – taxmanagement – taxmanagementindia.com – TMI – TaxTMI – TMITax

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Goods and Services Tax – GST Dated:- 5-10-2024 – News – Advisory on Proper Entry of RR No./Parcel Way Bill (PWB) Numbers in EWB system Post EWB-PMS Integration Dated:- 5-10-2024 – Subject: Guidance for Accurate Entry of RR No./ Parcel Way Bill (PWB) Numbers following the Integration of E-Way Bill (EWB) with Parcel Management System (PMS) Dear Taxpayers, It is to inform that the Parcel Management System (PMS) of Indian Railways has now been integrated with the E-Way Bill (EWB) system via Application Programming Interfaces (APIs). This integration facilitates the seamless transfer of RR No./ Parcel Way Bill (PWB) data from Railways to e-way bill portal , ensuring better traceability and compliance. In light of this, it is important that ta

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by rail under the Parcel Management System (PMS), must follow these steps: i. Update Part-B of the E-Way Bill using the Multi-Transport Mode option on the EWB portal. ii. In the updated section, select Rail as the mode of transport. After selecting this option, the system will prompt you to enter the corresponding RR No./Parcel Way Bill (PWB) number. 3. Format for Entering the RR No./PWB Number The Parcel Way Bill number must be entered in the following format: a) PXXXRRNo, where: i. P stands for the Parcel Management System (PMS). ii. XXX refers to the From Station Code of the originating railway station. iii. RRNo is the actual Railway Receipt number issued for the goods. Example: If the Railway Receipt number in the PMS system is 2020-30

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System (PMS) of Railways. b) If a mismatch is detected or the RR No./ PWB number is not found in the database, an alert will be generated. Therefore, it is advised that taxpayers ensure the correct entry of RR No./ PWB numbers to avoid future discrepancies. 6. Importance of Accurate Entry It is crucial for taxpayers to ensure that the Parcel Way Bill number is entered correctly in the EWB system to allow smooth tracking and verification of goods being transported via Indian Railways. Accurate entry will also facilitate the validation process and avoid unnecessary delays or complications. 7. Assistance and Clarifications For further assistance or if there are any discrepancies in entering RR No./ PWB numbers, taxpayers are encouraged to rai

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Case-Laws – GST – Highlights – Cryptic show-cause notice and suspension of registration without assigning adequate reasons violates principles of natural justice. Authorities should not pass orders mechanically without providing basic reasons, depriving the aggrieved party of an effective opportunity to respond. The impugned show-cause notice dated 27.01.2024 and the order suspending registration are set aside due to lack of proper reasons. Respondents have liberty to proceed against the petitioner in accordance with law, but with proper reasoning and adherence to principles of natural 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 – The High Court examined whether proper show cause notices were issued before passing impugned orders u/s 73(9) of the State GST Act. It held that the summary of show cause notice along with tax determination cannot substitute a valid show cause notice initiating proceedings u/s 73. The Court opined that the impugned orders were contrary to Section 73 and Rule 142(1)(a) as they were passed without issuing a proper show cause notice. Regarding the determination of tax and order attached to the summary, the Court held that as per Sections 73(3) and 73(9), only the proper officer can issue show cause notice, statement, and order. Section 2(91) defines the proper officer. Failure to authenticate by the proper officer renders the documents ineffective. The Court stated that unless Rules are amended, Rule 26(3) authentication must be followed when the proper officer issues notices/orders. On conformity with Section 75(4) and principles of natural justice, the Court held that when the statute mandates an opportunity of hearing, it must be provided. Merely mentioning the reply date in the summary without other hearing details like date, time, and venue is insufficient. If no reply is filed, passing an adverse order without a hearing opportunity would render Section 75(4) redundant. Consequently, the impugned orders were set aside, and the pet. – 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 Supreme Court interpreted clauses (c) and (d) of sub-section (5) of Section 17 of the Central Goods and Services Tax Act, 2017. Regarding clause (c), the Court held that there is no scope to give any meaning other than its plain and natural meaning, excluding works contract services from input tax credit (ITC). Regarding clause (d), the Court held that the expression “plant or machinery” cannot be given the same meaning as “plant and machinery” defined in the explanation to Section 17. The expression “plant or machinery” in clause (d) should be given its ordinary meaning, and whether a building qualifies as a plant depends on the business of the registered person and the role of the building in that business. If the construction of a building is essential for supplying services like renting or leasing, it could be considered a plant under clause (d). The writ petitions were rejected, subject to this interpretation of clause (d). – 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 order dated 20 December 2023, issued u/s 168A of the Central Goods and Services Tax Act, 2017, demanding Integrated Goods and Services Tax (IGST) on reinsurance services provided by a multinational insurance company registered as a foreign reinsurance branch with IRDAI and the Ministry of Corporate Affairs, for the period 01 July 2017 to 25 July 2018. The court held that the amendments introduced by the GST Council and the Union Government through Notification No. 09/2023 and No. 56, specifically including Serial No. 40 in Entry 36A, were curative in nature and regularized the period from 01 July 2017 to 26 July 2018. Consequently, the impugned order, relating to the same period, could not be sustained in light of the respondents' stand, and 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 – The court dealt with the power to cancel GST registration retrospectively u/s 29 of the Central Goods and Services Tax Act, 2017. It held that while the provision enables retrospective cancellation, the mere existence of such power does not justify its invocation. The order u/s 29(2) must reflect reasons for cancelling registration retrospectively, considering the deleterious consequences. The power cannot be exercised robotically or routinely unless circumstances warrant. The impugned order lacked reasoning for retroactive cancellation, violating the statutory scheme. Relying on Ramesh Chander's case, the court emphasized that retrospective cancellation should consider denying input tax credit to customers, and such consequences must be intended and warranted. Failing to provide even rudimentary reasons, the impugned order was quashed, and 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 – The High Court quashed the order of adjudication passed u/s 74 and demand notice u/s 107 of the KGST/CGST Act. It held that the appellate authority erred in dismissing the appeal on the grounds of limitation and non-payment of 10% pre-deposit. The appeal was filed within the prescribed time limit, and the affidavit for condonation of delay was not considered. The matter was remitted back to the appellate authority for reconsideration of the appeal on merits, including the issue of non-payment of 10% pre-deposit, in accordance with 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 – The court held that the petitioner cannot be made liable to pay GST under the reverse charge mechanism if it would lead to double taxation, provided the entire tax amount has been discharged. The court relied on its previous decision, wherein it was held that if the tax has reached the government's coffers, the assessee cannot be made to pay double tax merely due to non-adherence to the prescribed ratio for payment of tax between the assessee and the service provider. The court found its earlier judgment in M/s. Zyeta Interiors Pvt. Ltd. directly applicable to the present case and quashed the impugned order, allowing 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 – Challenge to non-speaking order of assessment and consequential rectification order. Order passed without considering objections, violating principles of natural justice. Revenue agreed to re-do assessment. High Court set aside assessment order, treating it as show cause notice. Petitioner to appear before Revenue, submit objections and evidence. Revenue to pass speaking order after hearing petitioner. Rectification petition dismissed as assessment order set aside, rendering it infructuous. Non-application of mind by adjudicating authority warranted setting aside orders and re-adjudication in accordance with law after following due process. – TMI Updates – Highlights, quick notes, marquee, annotation, news, alerts Tax Management India – taxmanagementindia – taxmanagement – taxmanagementindia.com – TMI – TaxTMI – TMITax

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