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Court Dismisses Jurisdictional Challenge to GST Show Cause Notice; State Officer's Authority Upheld for Interstate Dealings.
Case-Laws
GST
The Court rejected the petitioner's challenge to the show cause notice (SCN) issued u/s 74 of the CGST Act on jurisdictional grounds. The petitioner failed to submit a reply to the SCN, which emanated from a GST audit report after examining records for specific periods. The objection regarding the officer's lack of jurisdiction over the petitioner's

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Bail Denied in Forgery Case: Court Emphasizes Severity of Economic Crimes and Accused's Avoidance of Legal Proceedings.
Case-Laws
GST
This case deals with the issue of granting bail in a case involving forgery, creation of fake GST firms, and related economic offenses. The key points are: The court held that the present case is one of forgery and not related to GST, hence the accused cannot claim the benefit of bail granted in other GST cases. The court analyzed the concepts of inquiry, investigation, and trial under the Criminal Procedure Code, concluding that the arguments raised by the accused regarding jurisdiction have no merit. The court examined the applicability of Section 27 of the Indian Evidence Act, 1872, which deals wi

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Refund of input tax credits & 'intermediary' status u/s 2(13) IGST Act remanded for fresh consideration by Appellate Authority.
Case-Laws
GST
Appellate Authority's orders regarding refund of accumulated input tax credit with interest and determination of petitioner's status as an 'intermediary' u/s 2(13) of IGST Act set aside. Matters remanded for reconsideration by Appellate Authority to provide opportunity to both parties to present claims and contentions afresh within stipulated time

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Search & seizure of sales records from sister company, unable to reply notice.
Case-Laws
GST
Search and seizure operations conducted by respondent No. 3 on petitioner-Company's sister entity premises, seizing material like sales registers, accounts books, and data. Petitioner unable to file detailed reply to Show Cause Notice due to seized documents. Court accepted petitioner's explanation, set aside impugned orders, and remanded matter to respondent No. 2 for reconsideration of reply s

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GST registration cancelled retrospectively without valid reasons; authority overstepped, order modified for prospective effect.
Case-Laws
GST
The petitioner's GST registration was cancelled retrospectively without indicating specific reasons, violating principles of natural justice. While the authority can cancel registration retrospectively u/s 29(2) of the CGST/DGST Act, the decision cannot be arbitrary. The show cause notice did not propose retrospective cancellation. The impugned or

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Penalty for tax evasion & undervaluation during goods detention; pay tax+penalty on market value to release goods.
Case-Laws
GST
Writ petition concerning levy of penalty u/s 129 of CGST Act for alleged tax evasion and undervaluation during detention of goods. Court permitted petitioners to pay tax and penalty calculated on market value determined by authorities within one week. Upon receipt of payment, authorities directed to release detained vehicle and goods within seven days thereaft

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Bail Denied in GST Fraud Case: Applicants Linked to Fake Firms and Unexplained Deposits; Court Stresses Economic Crime Severity.
Case-Laws
GST
In the present case involving economic offenses related to GST fraud, the court denied bail to the applicants. The applicants were found to be connected with Sanjay Dhingra in transactions involving fake GST firms registered using stolen PAN and Aadhaar details. The money trail and financial transactions revealed unexplained huge amounts being de

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Tax law amendment restricting input tax credit availability challenged; court seeks reconsideration.
Case-Laws
GST
The imposition of a time limit for availing Input Tax Credit (ITC) is violative of Articles 14, 19(1)(g), and 300A of the Constitution of India. The insertion of sub-section (5) u/s 16 of the CGST Act, effective from July 1, 2017, provided that for invoices or debit notes pertaining to Financial Years 2017-18 to 2020-21, the registered person could take ITC in any return fi

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Delay in GST appeal beyond limitation period uncondoned despite 2023 notification.
Case-Laws
GST
Original order confirming GST demand was passed without opportunity of hearing. Appeal dismissed on limitation ground. Notification dated 02.11.2023 allows condonation of delay for appeals filed before 31.01.2024 against orders passed before 31.03.2023 u/ss 73/74 of GST Act. Impugned order passed on 20.07.2023, after 31.03.2023 cutoff date, hence notification inapplicable. Cited judgement de

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Court Affirms State Authority's Lead in Investigations, Prevents Central Intervention u/s 6(2)(b) of the Act.
Case-Laws
GST
The court held that Section 6(2)(b) of the Act treats the empowered officers under the SGST/UGST Act at the central level to be at par and does not prescribe for transfer of investigation from State authority to Central authority or vice-versa. The object of Section 6(2)(b) is to avoid multiple proceedings on the same subject matter. Once the State authority initia

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Violation of natural justice: Bail cancellation without appellant's counsel.
Case-Laws
GST
Violation of principles of natural justice due to absence of appellant's counsel during proceedings. High Court noted counsel's absence on certain dates, but matter reserved on 29.04.2024 without hearing. Unexpectedly relisted on 18.07.2024 without counsel's presence. Impugned order cancelling bail passed on 25.07.2024 without hearing appellant's counsel who had obtained bail from trial court. Imp

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Petition Dismissed: Failure to Appeal Assessment Order Renders Writ Petition on Tax Dispute Unmaintainable.
Case-Laws
GST
The petitioner challenged the assessment order solely on the ground of not availing the statutory remedy of appeal. The court held that the petitioner did not file an appeal and allowed the assessment order to become final, subsequently approaching the court through a writ petition to challenge the tax, interest, and penalty determination. The petitioner was given an

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Order canceling registration quashed; non-application of mind, lack of reasoning, violation of natural justice.
Case-Laws
GST
Cancellation of registration order quashed due to non-application of mind, absence of reasons, and violation of principles of natural justice. Court followed precedent where non-reasoned order was set aside, allowing petitioner to file reply to show cause notice. Impugned orders liable to be set aside, original order dated February 22, 2023 quashed and set aside,

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Taxpayer wins right to rectify adverse tax order; Authority directed to consider application fairly.
Case-Laws
GST
Section 161 allows an affected person to apply for rectification of an order. The authority had previously passed an order and decided no rectification was necessary, which the assessee felt adversely affected them. The High Court set aside that order, directing the authority to deal with the rectification application in accordance with law. The rectification process is sep

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Delayed appeal rejected despite justification; partial fee paid; no ill-intent; tardy filing not beneficial: Appeal restored.
Case-Laws
GST
Appeal dismissed on ground of limitation despite ex

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Assessee's reply to pre-notice communication not mandatory; dismissing writ plea against pending GST proceedings.
Case-Laws
GST
Non-consideration of reply given pursuant to GST DRC-01A notice violates principles of natural justice. Rule 142(1A) merely allows proper officer discretion to issue communication, not adjudicate submissions. Right of assessee arises only after show cause notice u/r 142(1)(a) with hearing opportunity. Affording hearing at different stages not contemplated by le

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Goods transit sans docs: No penalty if invoices/e-way bills exist.
Case-Laws
GST
This case pertains to the refund of penal amounts or taxes paid for goods seized due to lack of proper documentation during transit. The court held that the movement of goods accompanied by e-way bills, tax invoices, or delivery challans from the originating state shall be treated as bona fide and not attract any penalty or tax under the GST regime. The court agreed with the precedent set by the Andhra Prad

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Nonwoven fabrics with PVC coating can't be classified under HSN 56031400 or Chapter 50; PVC being the major constituent.
Case-Laws
GST
Nonwoven coated fabrics laminated or impregnated with PVC cannot be classified under HSN 56031400 or Chapter 50. As the major constituent is PVC sheet (120 GSM out of 240 GSM), the goods would be classified under Chapter 39, based on the material or component that gives the essential character, as per the Explanatory Notes. A conjoint reading of manufact

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Firm lost case for late bond&tax payment for seized goods; buyer non-existent. Court declined writ over factual disputes.
Case-Laws
GST
Writ petition dismissed due to petitioner-Firm's failure to avail interim order for release of confiscated goods by furnishing bond and taxes within reasonable time. Disputed questions of fact regarding purchase and sale of goods, and finding of statutory authority about recipient being non-existent firm. High Court exercised discretionary powers under

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Father's nil returns for 2017-18 led to GST tax demand on purchases assuming sales within 18 months. Court set aside order, remanded for reconsideration.
Case-Laws
GST
Petitioner challenged assessment order u/s 74 of GST enactments. Father had filed nil returns for outward supply in 2017-18. Show cause notice treated total purchase value as suppressed sales. Impugned order assumed processed turmeric must be sold within 18 months, deeming sale in February 2019 to compute tax liability. N

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Petition Dismissed: Court Awaits Appellate Decision; IGST Payment Already Made, Recovery Actions Halted Pending Appeal.
Case-Laws
GST
The High Court dismissed the petition, holding that it would not be appropriate to interfere in the matter during the pendency of the appeal before the appellate authority. The petitioner was granted the liberty to raise all submissions before the appellate authority, which would undoubtedly consider and pass appropriate orders. The Division Bench had pro

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Guidance on Regularizing IGST Refunds for Exporters Under Assam GST Rules 2017 Clarified.
Circulars
GST – States
This circular clarifies the regularization of refund of IGST availed in contravention of rule 96(10) of Assam GST Rules, 2017, where exporters had imported inputs without paying integrated taxes and compensation cess. Initially, if inputs were imported without IGST and cess by availing exemption notifications, but later the exporter paid these taxes with interest and got the

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GST Update: 12% on Solar Cookers, Sprinklers; Agri Packages Over 25kg Exempt from 5% Levy; Govt Supplies Regularized.
Circulars
GST – States
This circular clarifies GST rates and classification for certain goods based on recommendations of the 53rd GST Council meeting. Key points are: Solar cookers using solar and grid electricity attract 12% GST under heading 8516. All types of sprinklers, including fire water sprinklers, attract 12% GST under heading 195B. Parts of poultry-keeping mac

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GST Updates: Railway Service Exemptions, RERA Collections, Digital Payment Incentives, and Reinsurance Tax Clarifications.
Circulars
GST – States
This trade circular provides clarifications regarding the applicability of GST on certain services based on the recommendations of the 53rd GST Council meeting. The key points are: GST exemption for services provided by the Ministry of Railways to the general public and between its zones/divisions, regularizing past GST liability. Exemption fo

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Canteen Stores Department Introduces New E-Filing System for Tax Refunds Under West Bengal GST Act 2017.
Circulars
GST – States
This trade circular provides revised procedure for electronic filing and processing of refund applications by Canteen Stores Department (CSD) under West Bengal Goods and Services Tax Act, 2017. CSD can file refund application electronically on common portal for 50% refund of state tax paid on inward supplies for subsequent supply to Unit Run Canteens or authori

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