Author: admin_gst

GST Registration Cancellation Overturned for Lack of Reasoning and Violation of Natural Justice Principles.
Case-Laws
GST
Cancellation of GST registration without specifying reasons violated principles of natural justice; cryptic show cause notice failed to mention specific provisions allegedly violated, making it impossible to respond meaningfully; unreasoned cancellation order did not disclose grounds for adverse action; impugned show cause notice and cancellation order set aside for

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =

Court Dismisses Petition Against GST Registration Cancellation; Petitioner to Address Clarified Allegations in SCN Proceedings.
Case-Laws
GST
Petitioner challenged show cause notice (SCN) for cancellation of GST registration on ground that allegations were not specified; Court observed that while SCN did not set out allegations, respondent clarified allegations during proceedings; setting aside SCN would only require respondent to reissue notice; hence, petition disposed of, allowing pe

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =

Circular No.9 upheld; no need for notification to authorize adjudication power under Sec 2(91). Assessing authority's dual role valid.
Case-Laws
GST
Circular No.9 dated 24.05.2019 challenged – authority to delegate power of adjudication by circular contrary to Section 167 requiring notification – assessing authority being inspecting authority leading to conflict of interest. Court held circular traceable to Section 2(91), not Section 167, hence notification unnecessary for authorizing a

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =

Car lease facility by employer is taxable if exact amount is recovered from employees' salaries as it's a supply of service.
Case-Laws
GST
Car lease facility provided by employer to employees does not qualify as perquisite if employer recovers exact lease amount from employees' salaries; it constitutes supply of service by employer liable to GST as it does not fall under Entry 1 of Schedule III of CGST/TNGST Acts covering services by employee to employer in course of employment.
TMI

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =

ITC Allowed for Employee Transport Services Under Tamil Nadu Law for Women's Safety During Night Hours.
Case-Laws
GST
Input tax credit on services of leasing, renting or hiring of motor vehicles to provide transportation facility to ensure safety and security of women employees as per Tamil Nadu Shops and Establishments Act, 1947 is eligible to be availed, subject to conditions u/s 16 of CGST Act, 2017. ITC shall be available only for tax paid on services for providing transport facilit

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =

Agro-Chemical R&D Services on Insecticide Mosquito Nets Not Exempt from GST, Limited to Pharmaceutical Sector Only.
Case-Laws
GST
The Applicant provides research and development services related to the agro-chemical sector, specifically testing and analysis of insecticide-infused mosquito nets. The Applicant sought clarification on the applicability of Notification No. 04/2019-Integrated Tax, which exempts certain research and development services in the pharmaceutical sector from GST.

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =

FAO UN grant not a supply under GST Act. Grant received gratuitously, not for goods/services. Activities using grant not taxable supply. No GST payable.
Case-Laws
GST
The grant from the Food and Agriculture Organisation of UN is not a supply under the GST Act. The applicant will not supply any goods or services to the FAO for the grant received. It is a gratuitous grant for overcoming obstacles faced by the applicant during the pandemic. The activities undertaken by the applicant using

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =

Violation of natural justice – notices on GST Portal led to unawareness. Case remitted for fresh order after depositing 10% tax. Impugned order quashed.
Case-Laws
GST
Violation of principles of natural justice – petitioner was unaware of the impugned order due to notices being hosted on GST Common Portal, resulting in unawareness for the proprietary concern – Writ Petition disposed by remitting case to pass fresh order subject to petitioner depositing 10% of disputed tax from Electronic

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =

Excess stock found during survey can't initiate proceedings u/s 130 of UPGST Act. Tax liability to be determined u/s 35(6) & 74.
Case-Laws
GST
In light of the legal provisions and precedent, the Court held that even if excess stock is found during a survey, proceedings u/s 130 of the UPGST Act cannot be initiated. The proper course of action is to determine tax liability u/s 35(6) by following the procedure established u/s 74. Consequently, the impugned orders passed by the authorities

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =

GST refund claim filed within time limit as period from Mar'20-Feb'22 excluded based on GST Council's recommendations. Order set aside.
Case-Laws
GST
The petitioner's refund claim was within the limitation period prescribed u/s 53(3) of the CGST Act, as the period from March 2020 to February 2022 was excluded from the limitation period based on the GST Council's recommendations, which the respondent did not dispute. The impugned order was set aside, and the HC allowed the present petiti

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =

Court Directs Completion of GST Adjudication on E-Invoice Issue for Explosives Transfer in Four Weeks.
Case-Laws
GST
Petitioner challenged notices issued in Form GST MOV-01 and MOV-07 for not generating e-invoices during transfer of PETN explosives. Court held that petitioner undertook to pay penalty and did not assert goods were exempted. Exemption is a mixed question of fact and law to be examined by respondent. Since notices were issued and petitioner replied, adjudication process sh

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =

Court Remands GST Case for Fresh Order on Input Tax Credit Reversal Due to Non-Compliance with Discount Conditions.
Case-Laws
GST
Sub-section (3) of Section 15 of applicable GST statutes provides for reduction in value of supply on account of discount, if recorded in invoice or established by agreement before or at time of supply. Petitioner prima facie established neither requirement satisfied, hence supplier liable to pay tax on full value. Exercise of jurisdiction under Article 226 d

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =

Order quashed for lack of natural justice. Tax demand remanded. Petitioner to pay 10% & reply. Monitor GST portal.
Case-Laws
GST
Order quashed due to breach of principles of natural justice as petitioner was not heard before issuance of impugned order regarding tax demand arising from disparity between GSTR 3B and GSTR 2A returns. Matter remanded for reconsideration after petitioner remits 10% of disputed tax demand and submits reply to show cause notice within stipulated time. Petition

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =

High Court Rules Petition Maintainable Despite Alternative Remedy; Government and CBIC Issued Clarifications on Appeals.
Case-Laws
GST
Petition maintainable – alternative remedy available – order appealable – non-constitution of Tribunal – Government issued Removal of Difficulties Order and CBIC issued clarification regarding appeal due to non-constitution of Appellate Tribunal – HC disposed writ petition in interest of justice considering alternative remedy available.
TMI Updates –

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =

Ruling: KSTP status not covered. Govt contractor's road/bridge works for public use taxable 12% till 17.07.2022, 18% after. KSTP is Kerala PWD wing.
Case-Laws
GST
Advance Ruling held that the question regarding status of Kerala State Transport Project (KSTP) viz. Government Authority, Entity or Department is not covered u/s 97(2) of CGST Act, hence no ruling pronounced. Works contract services provided by Government contractor to KSTP for construction of roads and bridges for public use

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =

KLDC, a govt undertaking, classified as “Governmental Entity”, subject to 18% GST for works executed 01.01.2022-17.07.2022 as per SGST Circular.
Case-Laws
GST
The applicant M/s. Kerala Land Development Corporation Ltd. (M/s. KLDC), a fully owned Government Undertaking, falls under the definition of “Governmental Entity” established and controlled by the State Government. The GST rate applicable for works executed by them for the period 01.01.2022 to 17.07.2022 is 18%, as per SGST Circul

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =

CSD to file GST refund applications sequentially on portal. Upload invoices, bank details. Preview before submission. NIL claim if no refund.
News
GST
Detailed process outlined for Canteen Store Department (CSD) to file refund application FORM GST RFD-10A on GST portal for refund of tax paid on inward supply of goods. Refund applications to be filed sequentially; NIL refund claim required for periods with no refund claim. Refund period selection available from July 2017; NIL refund clai

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =

Order u/s 74(9) post taxpayer's demise unenforceable. SCN issued, reply filed. Hearing on 7/2/24. 13/3/24 order set aside.
Case-Laws
GST
Order passed by Proper Officer u/s 74(9) of West Bengal GST/CGST Act, 2017 subsequent to demise of registered taxpayer held unenforceable. Show cause notice issued, taxpayer responded. Opportunity of hearing afforded on 7th February, 2024. Order dated 13th March, 2024 passed after taxpayer's demise set aside. Petition disposed.
TMI Updates – Highli

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =

HC held GST dept can't deny refund on inverted duty citing SC's Kusum Ingots ratio. Impugned order set aside, fresh order for refund in 3 months.
Case-Laws
GST
The High Court held that the provisions of GST enactments being applicable pan India, the department cannot take a contrary stand to the Supreme Court's ratio in Kusum Ingots & Alloys Ltd. versus Union of India. Therefore, the impugned order denying the benefit of refund on account of the Inverted Duty Structure to the petitioner

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =

Petitioner's Natural Justice Violation: Court Orders Fresh Review on ITC Mismatch and Tax Classification Issues.
Case-Laws
GST
Violation of principles of natural justice occurred as petitioner's contentions were not considered – mismatch between petitioner's GSTR 3B returns and auto-populated GSTR 2A – third respondent failed to discuss petitioner's explanation for classifying product as farm tractor or record reasons for rejecting such explanation – regarding ITC mismatch, petitioner r

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =

Lack of ASMT-10 notice invalidated scrutiny, not adjudication. Petitioner's silence confirmed tax demand. Chance to contest merits granted on 10% deposit.
Case-Laws
GST
Non-issuance of ASMT-10 notice vitiated scrutiny conclusions but not adjudication as petitioner was provided opportunity to show cause – Tax proposal confirmed due to petitioner's failure to reply – Petitioner asserted unawareness of proceedings – Interest of justice warrants opportunity to contest tax demand on merits –

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =

Order upholding quashing of penalty for goods transport upheld. Seizure allowed only if documents not genuine under Act. Documents genuine.
Case-Laws
GST
Impugned order quashing levy of penalty for transportation of goods upheld. Power of detention or seizure can only be exercised when goods lack genuine documents under Act. Genuineness of documents not disputed. Allegation that prescribed documents not produced unsupported. Once accompanying documents found genuine, goods should not ha

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =

Petitioner can file representation to Additional Chief Secretary on tax liability for govt contracts pre/post GST within 4 weeks. Decision in 4 months.
Case-Laws
GST
Petitioner granted liberty to file representation before Additional Chief Secretary, Finance Department within four weeks regarding respondent's authority to bear additional tax liability for government contracts awarded pre or post GST regime without incorporating applicable GST in Schedule of Rates while preparing Bill of

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =

Expats' service tax on salaries & perks under manpower supply agency: Petitioners get time till 15.01.2024 to respond. No coercive recovery if adverse order.
Case-Laws
GST
Petitioners granted time until 15.01.2024 to file comprehensive response regarding levy of service tax on salaries and perquisites of expats under Manpower Recruitment or Supply Agency Service. Respondents to take decision after receiving response. No coercive steps for recovery of amount in case of adverse order agai

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =

Power Company Must Pay GST on Coal Movement Fees; No Exemption for Forestry-Related Activities.
Case-Laws
GST
The Abhivahan Shulk collected by the Chhattisgarh Forest Department from the appellant in lieu of granting permission for coal movement is not eligible for Nil rate of GST under SI. No. 4 & 5 of Notification No. 12/2017-Central Tax (Rate) as it is neither related to “Urban forestry, protection of environment and ecological aspect” nor “Social forestry or farm forestry.” The appe

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =