Author: admin_gst

Case-Laws – GST – Highlights – Violation of principles of natural justice by not granting opportunity of personal hearing before issuing adjudication order demanding excess availment of Input Tax Credit and short payment of output GST, despite adverse decision being contemplated against petitioners. Section 75(4) of GST Act mandates granting opportunity of hearing in such cases, irrespective of whether specifically requested or not. Impugned proceedings after reply to show cause notice set aside as decision-making process vitiated and contrary to statutory requirement of providing personal hearing. – TMI Updates – Highlights, quick notes, marquee, annotation, news, alerts Tax Management India – taxmanagementindia – taxmanagement – taxmanagementindia.com – TMI – TaxTMI – TMITax

= = = = = = = =

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

= = = = = = = =

Case-Laws – GST – Highlights – The High Court held that GST Authorities cannot launch prosecution invoking penal provisions under the Indian Penal Code without invoking penal provisions of the GST Act, when the alleged offenses are covered under the GST Act provisions. This is especially true without obtaining sanction u/s 132(6) of the GST Act. The GST Act is a special legislation comprehensively dealing with GST-related procedures, penalties, and offenses. Allowing GST Authorities to bypass the prescribed procedure under the GST Act by simply invoking IPC provisions, without invoking GST Act penal provisions, especially when allegations constitute offenses covered under the GST Act, would amount to circumventing procedural safeguards like obtaining the Commissioner's sanction before initiating prosecution u/s 132(6). Such a course of action would be an abuse of the legal process, which cannot be permitted. Consequently, the prosecution launched without following the due process under the GST Act is hit by the legal bar and warrants quashment. – TMI Updates – Highlights, quick notes, marquee, annotation, news, alerts Tax Management India – taxmanagementindia – taxmanagement – taxmanagementindia.com – TMI – TaxTMI – TMITax

= = = = = = = =

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

= = = = = = = =

Case-Laws – GST – Highlights – The petitioner challenged the assessment order and summary in Form DRC-07 for wrongfully claiming Input Tax Credit (ITC) on the purchase of four motor cars, which was ineligible u/s 17(5) of the CGST/TNGST Act, 2017. The petitioner was unaware of the notices due to the introduction of a new “View Additional Notices and Orders” feature on the GST portal, which was not adequately communicated, resulting in a violation of principles of natural justice. The petitioner had purchased four motor cars for passenger service and mistakenly claimed ITC on these purchases, which was not permissible as the vehicles were intended for personal use. The petitioner voluntarily reversed the wrongly availed ITC in their March 2023 return before the financial year's end. However, the respondent passed the assessment order after issuing pre-show cause notice and show cause notice. The High Court set aside the order and remanded the matter to the respondent for fresh consideration, providing the petitioner an opportunity to substantiate their claim. – TMI Updates – Highlights, quick notes, marquee, annotation, news, alerts Tax Management India – taxmanagementindia – taxmanagement – taxmanagementindia.com – TMI – TaxTMI – TMITax

= = = = = = = =

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

= = = = = = = =

Case-Laws – GST – Highlights – The High Court granted relief to the petitioner by directing the release of attachment over immovable properties due to discrepancies between GSTR 3B returns and auto-populated GSTR 2A. Despite making the requisite 10% pre-deposit of the disputed tax demand, the attachment was effected contrary to statutory provisions. The court held that once the pre-deposit is made u/s 107(7), recovery proceedings for the balance amount shall be deemed stayed. Consequently, the attachment of the petitioner's immovable properties was found unsustainable and ordered to be released. – TMI Updates – Highlights, quick notes, marquee, annotation, news, alerts Tax Management India – taxmanagementindia – taxmanagement – taxmanagementindia.com – TMI – TaxTMI – TMITax

= = = = = = = =

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

= = = = = = = =

Case-Laws – GST – Highlights – The High Court quashed a letter dated March 13, 2024, issued by the Superintendent (A.E.) Central Goods and Service Tax, Gautam Budh Nagar, advising voluntary tax payments without proper legal basis. The Court observed that the Department was advising the petitioner to make voluntary payments without issuing any show cause notice/demand notice/recovery notice, which is unknown in law. The respondents failed to indicate any provision under which such a letter could be issued. The Court directed the authorities to be cautious and refrain from issuing such letters tantamounting to pressure tactics, allowing the petition. – TMI Updates – Highlights, quick notes, marquee, annotation, news, alerts Tax Management India – taxmanagementindia – taxmanagement – taxmanagementindia.com – TMI – TaxTMI – TMITax

= = = = = = = =

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

= = = = = = = =

Case-Laws – GST – Highlights – Provisional attachment order u/s 83 of the Act expires after one year. The department cannot issue a second notice for provisional attachment without providing fresh reasons. The Supreme Court held that a second attachment may be made, but the department must justify it with new grounds. Allowing repeated attachments without fresh reasons would render Section 83(2) redundant. Provisional attachment is a drastic measure taken before assessing liability, akin to preventive detention in criminal cases. The department must provide specific reasons, failing which the attachment would be illegal and arbitrary. The provisional attachment order dated May 16, 2024 is quashed, and the bank is directed to remove the attachment and allow the petitioner access to the account. – TMI Updates – Highlights, quick notes, marquee, annotation, news, alerts Tax Management India – taxmanagementindia – taxmanagement – taxmanagementindia.com – TMI – TaxTMI – TMITax

= = = = = = = =

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

= = = = = = = =

Case-Laws – GST – Highlights – Principles of natural justice violated due to lack of proper communication regarding show cause notice and order, leading to tax demand confirmation without petitioner's response. Court set aside the order and remanded matter for reconsideration, subject to petitioner remitting 10% of disputed tax demand within two weeks, acknowledging procedural lapse despite imposing condition. Petition disposed through remand for fresh consideration after partial compliance. – TMI Updates – Highlights, quick notes, marquee, annotation, news, alerts Tax Management India – taxmanagementindia – taxmanagement – taxmanagementindia.com – TMI – TaxTMI – TMITax

= = = = = = = =

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

= = = = = = = =

Case-Laws – GST – Highlights – Seizure order for detention of goods due to absence of State E-way Bill was challenged. The Court held that at the time of interception, the Central E-way Bill under GST Act was available, and only the E-way Bill under UP GST Act was not present, which was later produced before passing the penalty order. The issue was covered by previous Division Bench judgments, which held that from 1.2.2018 to 31.3.2018, the requirement of E-way Bill under UP GST Act was not enforceable. Since the goods were detained and seized on 23.3.2018 solely for the absence of the E-way Bill under UP GST Act, and the Central E-way Bill was accompanying the goods, the detention order, seizure order, and penalty were unjustified. Consequently, the impugned orders dated 24.3.2018 and 1.10.2020 were quashed by the High Court, and the petition was allowed. – TMI Updates – Highlights, quick notes, marquee, annotation, news, alerts Tax Management India – taxmanagementindia – taxmanagement – taxmanagementindia.com – TMI – TaxTMI – TMITax

= = = = = = = =

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

= = = = = = = =

Case-Laws – GST – Highlights – Principles of natural justice violated due to lack of reasonable opportunity to contest tax demand. Petitioner cited ongoing tax audit and father's illness for seeking adjournment, but failed to submit substantive reply from September 2023 to February 2024 despite sufficient time. Considering health records submitted, petitioner granted opportunity to contest demand by remitting 10% of disputed tax within three weeks. Matter remanded for reconsideration after compliance. – TMI Updates – Highlights, quick notes, marquee, annotation, news, alerts Tax Management India – taxmanagementindia – taxmanagement – taxmanagementindia.com – TMI – TaxTMI – TMITax

= = = = = = = =

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

= = = = = = = =

Case-Laws – GST – Highlights – The court held that the petitioner was denied the principles of natural justice by not being given a reasonable opportunity to contest the tax demand on merits regarding the difference between GSTR 3B and GSTR 1, and the RCM liability mismatch. The petitioner provided proof of payment for the GSTR 3B and GSTR 1 difference, and substantiated the RCM liability mismatch as an inadvertent error through GSTR 3B returns, securing the revenue interest. The impugned order relating to RCM liability mismatch was set aside, and the matter was remanded for reconsideration by the respondent authority. The petitioner was directed to submit a reply to the show cause notice within 15 days. The petition was disposed of. – TMI Updates – Highlights, quick notes, marquee, annotation, news, alerts Tax Management India – taxmanagementindia – taxmanagement – taxmanagementindia.com – TMI – TaxTMI – TMITax

= = = = = = = =

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

= = = = = = = =

Case-Laws – GST – Highlights – Challenge to show cause notice u/s 74 of Central/Gujarat Goods and Services Tax Act, 2017 regarding classification of product manufactured by petitioner under HSN 19059040 instead of HSN 19059030 and consequent levy of GST. Court held that in view of minutes of GST Council meeting and circular dated 1st August, 2023, issue was to be regularized on 'as is where is' basis up to 22.07.2023, meaning petitioners' claim of exemption under HSN 19059040 and payment of nil GST to continue as filed. Respondents misinterpreted 'as is' basis by issuing impugned notices levying 18% GST under HSN 19059030, ignoring binding advance ruling. When petitioners claimed exemption under HSN 19059040 and paid nil GST, same was required to be regularized 'as is' as per GST Council and Board's notification coupled with binding advance ruling. Impugned show cause notices quashed, respondents directed to regularize past returns filed by petitioners on 'as is' basis accepting nil rate of GST up to 22.07.2023. Petition allowed. – TMI Updates – Highlights, quick notes, marquee, annotation, news, alerts Tax Management India – taxmanagementindia – taxmanagement – taxmanagementindia.com – TMI – TaxTMI – TMITax

= = = = = = = =

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

= = = = = = = =

Case-Laws – GST – Highlights – The High Court, considering the precedent set in the case of Rehoboth Fish Meal and Oil Plant, held that the petitioner should be granted a stay on recovery proceedings pending further orders from the Supreme Court. The petitioner was directed to file a statutory appeal before the Appellate Authority/Commissioner of GST & Central Excise (Appeals) within 30 days. Additionally, the petitioner was required to pre-deposit 10% of the disputed tax, excluding the tax on 'Fish Meal', in accordance with Section 107 of the respective GST enactments, within the same 30-day period. The writ petition was disposed of with these directions. – TMI Updates – Highlights, quick notes, marquee, annotation, news, alerts Tax Management India – taxmanagementindia – taxmanagement – taxmanagementindia.com – TMI – TaxTMI – TMITax

= = = = = = = =

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

= = = = = = = =

Case-Laws – GST – Highlights – The High Court directed the respondents to refund the differential GST amount, being the difference between GST and VAT, paid by the petitioner for each works contract/composite supply executed before July 1, 2017. The Court held that payments received by the petitioners pre-GST for works executed before July 1, 2017, are assessable under the KVAT tax regime, either under the Composition Tax or VAT scheme as applicable. The respondents were ordered to reimburse the GST amount within six weeks from the date of receipt of the order. The petition was allowed. – TMI Updates – Highlights, quick notes, marquee, annotation, news, alerts Tax Management India – taxmanagementindia – taxmanagement – taxmanagementindia.com – TMI – TaxTMI – TMITax

= = = = = = = =

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

= = = = = = = =

Case-Laws – GST – Highlights – The High Court held that the demand for tax on the service aspect of a composite supply involving import of goods and related services like transportation and insurance is in violation of Section 2(30) read with Section 8 of the CGST Act, following the Supreme Court's decision in Union of India Vs. M/s.Mohit Minerals Pvt. Ltd. Consequently, the demand confirmed in paragraphs 15(g) and 15(h) of the impugned order was dropped. However, the demand arising from the mismatch between Input Tax Credit availed and tax paid by the supplier, and the demand for tax on renewal charges for the Factory License, can be adjudicated by the petitioner before the Appellate Commissioner. The petitioner was granted liberty to file a statutory appeal before the Commissioner of GST & Central Excise (Appeals) regarding the remaining demands confirmed in the impugned order. The writ petition was partly allowed. – TMI Updates – Highlights, quick notes, marquee, annotation, news, alerts Tax Management India – taxmanagementindia – taxmanagement – taxmanagementindia.com – TMI – TaxTMI – TMITax

= = = = = = = =

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

= = = = = = = =

Case-Laws – GST – Highlights – Wrongful availment and passing on of input tax credit, wrongful availment of IGST refund under Advance Authorisation scheme. Constitutional validity of Notification No. 09/2023-Central Tax dated 31.03.2023 questioned, whether ultra-vires the CGST Act provisions. Held that the challenged order is dated 21.02.2024, and the challenge is on merits. Appeal lies before the Appellate Authority u/s 107 of the CGST Act to examine questions of fact and law. The petition regarding the impugned orders is not entertained. Regarding initiation of proceedings u/s 74 instead of Section 73 of the CGST Act, the Appellate Authority can examine the questions of law while examining the facts. The challenge to the notification dated 31.03.2023 does not arise as no notice was issued u/s 73 of the CGST Act. The present petition is misconceived and dismissed. – TMI Updates – Highlights, quick notes, marquee, annotation, news, alerts Tax Management India – taxmanagementindia – taxmanagement – taxmanagementindia.com – TMI – TaxTMI – TMITax

= = = = = = = =

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

= = = = = = = =

Case-Laws – GST – Highlights – The petitioner had unutilized Input Tax Credit (ITC) of Rs.2,42,15,906/- under the VAT Act for the period from 1st April 2017 to 30th June 2017, which was carried forward to the GST regime by filing Form GST TRAN 1. Subsequently, the petitioner reversed the ITC in the Electronic Credit Ledger by filing Form DRC-03. The High Court, relying on its previous decision in R. N. Laboratories Pvt. Ltd., directed the respondent authorities to process the petitioner's application for refund of Rs.2,42,15,906/- along with statutory interest payable u/s 38 of the VAT Act, as the petitioner had not availed any credit amount carried forward to GST. The authorities were directed to complete the exercise within 12 weeks from the date of receipt of the order. – TMI Updates – Highlights, quick notes, marquee, annotation, news, alerts Tax Management India – taxmanagementindia – taxmanagement – taxmanagementindia.com – TMI – TaxTMI – TMITax

= = = = = = = =

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

= = = = = = = =

Case-Laws – GST – Highlights – Rejected damaged paddy is classified under HSN 1006 10 90, not 1006 10 10, as it lacks characteristics of seed quality cereal crop and is unfit for human consumption. The exemption under S.No.70 of N/N. 02/2017-Central Tax (Rate) for rice (other than pre-packaged and labelled) is inapplicable as rejected damaged paddy has lost its food quality and human consumption value, being used for industrial usage or cattle feed. It fails to meet the criteria of being fit for human consumption required for the exemption. Therefore, rejected damaged paddy is taxable and does not qualify for the exemption. – TMI Updates – Highlights, quick notes, marquee, annotation, news, alerts Tax Management India – taxmanagementindia – taxmanagement – taxmanagementindia.com – TMI – TaxTMI – TMITax

= = = = = = = =

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

= = = = = = = =

Case-Laws – GST – Highlights – The matter pertains to the classification and applicable GST rate for a Natural Fibre Composite board manufactured by the applicant. The board comprises natural fibre, calcium carbonate, recycling waste, processing aids, and PVC resin as a binding agent. The issue revolves around whether the product should be classified under Chapter 44 as wood and articles of wood, attracting a 12% GST rate, or under a different classification with a different rate. The Authority held that the product is a fibreboard, classifiable under CTH 441193 as 'Others', since it is not a Medium Density Fibreboard. The applicable GST rate for rice husk boards or fibreboards manufactured from agricultural crop residues, irrespective of the chapter classification, is 6% CGST and 6% SGST. The individual properties of the product may further determine the classification. – TMI Updates – Highlights, quick notes, marquee, annotation, news, alerts Tax Management India – taxmanagementindia – taxmanagement – taxmanagementindia.com – TMI – TaxTMI – TMITax

= = = = = = = =

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

= = = = = = = =

Case-Laws – GST – Highlights – The applicant's services related to a naval vessel do not qualify as “Maintenance, repair or overhaul services” (MRO services) under Entry 25(ib) of Notification No. 11/2017 Central Tax (Rate) dated 28.06.2017 as amended by Notification No. 02/2021-Central Tax (rate) dated 02.06.2021. The services provided by the applicant, while related to a naval vessel, do not primarily constitute maintenance, repair, or overhaul in the conventional sense. Instead, they appear to be in the nature of upgradation or renovation works, involving supply and installation of goods. There is no specific maintenance agreement between the applicant and the Naval Dockyard, and the scope of work primarily involves up gradation and installation activities rather than repair or maintenance of existing equipment. The tender work rendered by the applicant does not fall under the scope of the concessional rate of tax provided in the amended notification. – TMI Updates – Highlights, quick notes, marquee, annotation, news, alerts Tax Management India – taxmanagementindia – taxmanagement – taxmanagementindia.com – TMI – TaxTMI – TMITax

= = = = = = = =

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

= = = = = = = =

Case-Laws – GST – Highlights – This legal case deals with the applicability of Goods and Services Tax (GST) on the export of pre-packaged and labelled frozen shrimps. The key points are: According to the Legal Metrology Act, 2009 and rules, if the inner packaging is printed with a pre-determined quantity, it is considered a 'pre-packaged and labelled' commodity for retail sale, regardless of whether the outer packaging is printed or not. Consequently, the inner packaging of shrimps ranging from 250 grams to 2 kilograms falls under the 'pre-packaged and labelled' category and is liable for GST. The supply of shrimps in pouches or boxes up to 25kg, which are duly pre-packaged and labelled as per the Legal Metrology Act, is a taxable event and not an exempted or nil-rated supply. Where the quantity involved is 25kg or less for specified commodities like shrimps (HSN 0306), which are pre-packed, they are covered under the Legal Metrology Act, 2009, and rules. Therefore, GST at 5% is applicable on the supply of 'pre-packaged and labelled' shrimps up to 25kg, irrespective of whether it is for domestic supply or export, as long as they are specified pre-pack. – TMI Updates – Highlights, quick notes, marquee, annotation, news, alerts Tax Management India – taxmanagementindia – taxmanagement – taxmanagementindia.com – TMI – TaxTMI – TMITax

= = = = = = = =

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

= = = = = = = =

Case-Laws – GST – Highlights – Determination of whether an outward supply of goods procured by the applicant from an Indian company undergoing liquidation can be considered a zero-rated supply under GST, allowing export without payment of tax against a Letter of Undertaking (LUT). The key points are: The place of supply is within India as the goods are delivered to the applicant's premises in India. The applicant lacks GST registration in India, and the transaction does not qualify as an export of goods under GST law. Consequently, the transaction cannot be treated as a zero-rated supply under the GST Act, 2017, precluding the applicant from exporting the goods without paying tax against an LUT. – TMI Updates – Highlights, quick notes, marquee, annotation, news, alerts Tax Management India – taxmanagementindia – taxmanagement – taxmanagementindia.com – TMI – TaxTMI – TMITax

= = = = = = = =

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

= = = = = = = =

Case-Laws – GST – Highlights – This case pertains to the release of seized cash. The cash was found at the petitioner's office premises, and due to the lack of satisfactory evidence regarding its source, it was seized by the authorities. The High Court directed the respondents to remit the seized cash amount, along with the accrued interest, to the petitioner's bank account forthwith, as the cash was kept in a fixed deposit account by the respondents. The petition was disposed of accordingly. – TMI Updates – Highlights, quick notes, marquee, annotation, news, alerts Tax Management India – taxmanagementindia – taxmanagement – taxmanagementindia.com – TMI – TaxTMI – TMITax

= = = = = = = =

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

= = = = = = = =

Case-Laws – GST – Highlights – Impugned show cause notice reproduced provisions of Section 29(2)(e) without specifying alleged fraud, misstatement or suppression of facts by petitioner. Cancellation order passed in violation of principles of natural justice. Instead of setting aside cancellation order, order rejecting revocation application set aside to provide opportunity to respond to allegations. Petition disposed. – TMI Updates – Highlights, quick notes, marquee, annotation, news, alerts Tax Management India – taxmanagementindia – taxmanagement – taxmanagementindia.com – TMI – TaxTMI – TMITax

= = = = = = = =

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

= = = = = = = =

Case-Laws – GST – Highlights – Petitioner deposited amount under alleged coercion and protest, claiming inadmissible Input Tax Credit availed. Respondent disputed coercion, stating voluntary deposit. Court observed deposits not made during raid or custody, but under alleged threat of cancellation of registration. Petitioner could have availed remedies against such threats. Court deemed enquiry into coercion or voluntary deposit unnecessary, noting petitioner can seek refund if excess tax deposited, in accordance with law. Petition disposed of. – TMI Updates – Highlights, quick notes, marquee, annotation, news, alerts Tax Management India – taxmanagementindia – taxmanagement – taxmanagementindia.com – TMI – TaxTMI – TMITax

= = = = = = = =

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

= = = = = = = =

Case-Laws – GST – Highlights – The case pertains to recovery of arrears of tax for Assessment Years 2017-2018 and 2018-2019 due to non-filing of returns. The petitioner had previously suffered Assessment Orders u/s 62 of the Tamil Nadu Goods and Services Tax Act, 2017, erroneously mentioned as Section 63. The Finance Act, 2024 introduced amendments incorporating Sections 16(5) and 16(6) in the Central Goods and Services Tax (CGST) Act, with similar amendments expected in the Tamil Nadu Goods and Services Tax Act, 2017. As per the Supreme Court's decision in FORMICA INDIA DIVISION VERSUS COLLECTOR OF CENTRAL EXCISE, once tax is demanded, the benefit of Input Tax Credit must be granted. Consequently, the Impugned Recovery Notices were set aside, and the case was remitted for a fresh order, with the petition allowed by way of remand. – TMI Updates – Highlights, quick notes, marquee, annotation, news, alerts Tax Management India – taxmanagementindia – taxmanagement – taxmanagementindia.com – TMI – TaxTMI – TMITax

= = = = = = = =

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

= = = = = = = =