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Case-Laws – GST – Highlights – Principles of natural justice violated. Respondent disregarded petitioner's clarifications, GSTR 9 reconciliation, audited balance sheet, confirming show cause notice allegations through impugned order citing “incomplete documents” despite discrepancies in GSTR 1 and GSTR 3B filings. High Court held show cause notice issued 28.12.2023, petitioner filed reply 11.03.2024 with final reconciliation, E-Way bill turnover reconciliation with GSTR-1 and seven supporting documents, but respondent mechanically passed impugned order without considering reply. Impugned order set aside, matter remitted to respondent to consider reply, reconciliations, documents, provide personal hearing opportunity, and pass detailed speaking order. Petition disposed by way of remand. – 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 – Petitioner challenged impugned order regarding GST discrepancies, failing to avail opportunity of personal hearing. Court held that notice was issued by respondent based on difference between turnover reported in Form 26AS and Form GSTR 3B. Petitioner replied that difference occurred as Form 26AS includes turnover from April 2017 to June 2017, prior to GST regime, while GSTR3B excluded that period. However, respondent did not consider this aspect while passing impugned order. Court believes granting another opportunity would allow petitioner to establish case before authorities. Impugned order dated 12.12.2023 set aside, matter remanded to respondent for fresh consideration on condition that petitioner pays 10% of demand amount within four weeks from 12.08.2024. Setting aside of impugned order effective from date of payment. Petition disposed by way of remand. – 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 – Impugned show cause notice for cancellation of GST registration lacks specific allegations, violating principles of natural justice. Notice merely reproduces rule without specifying invoices/bills issued without supply of goods or services. Purpose of show cause notice is to enable response to allegations, which is rendered meaningless without specifics. Impugned notice fails to meet requisite standards, liable to be set aside. Respondents directed to restore petitioner's GST registration forthwith. Petition disposed of. – 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 – Tax authority rejected rectification application filed by taxpayer for zero-rated supply citing violation of principles of natural justice. Court examined impugned order, found taxpayer's reply and documents were considered for most defects except two. For those two defects, court set aside impugned order subject to taxpayer remitting 20% of disputed tax demand and re-submitting relevant documents within 15 days. Tax authority directed to provide reasonable opportunity including personal hearing to taxpayer and pass fresh order within 3 months after receiving taxpayer's reply. 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 High Court held that once the petitioner made the payment of Rs.10 lakhs and furnished a bank guarantee for the balance amount as per the court's earlier order, the petitioner's right to file an appeal against the order u/s 129(3) of the WBGST/CGST Act, 2017 crystallized. The respondents cannot insist on further pre-deposit of 25% of the penalty determined u/s 129(3) for entertaining the appeal. If the petitioner files an appeal within two weeks, the respondents shall hear and dispose of it on merits without demanding any additional pre-deposit. The petitioner may not be entitled to a refund of Rs.5,22,500/- or part thereof. – 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 found that the respondents failed to properly consider the petitioner's contentions regarding the retrospective cancellation of GST registration of its suppliers and the petitioner's claim of having paid taxes on its supplies. The impugned order did not specifically state whether the suppliers had paid taxes for which the petitioner claimed input tax credit. The court deemed the impugned order as lacking reasoning and remanded the matter to the Proper Officer for fresh consideration, disposing of the petition through remand, despite the petitioner having an efficacious appeal remedy available. – 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 – Petitioner sought to quash the show-cause notice (SCN) demanding Integrated Goods and Services Tax (IGST) along with interest and penalty on salaries paid to expatriates. The issue pertained to whether the supply of manpower and recruitment services from overseas group entities to the petitioner attracted IGST. The High Court did not delve into the merits but relegated the matter to the stage of reply to the SCN. The authorities were directed to consider the applicability of Circular No. 210/4/2024-GST dated 26.06.2024 while adjudicating the reply. The petitioner was granted three weeks to file the reply from the receipt of the order's certified copy. – 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 – Recovery notice issued without proper reasons, violating Section 78 of GST Act and principles of natural justice. Petitioner filed representation challenging notice. High Court directed respondent authority to consider petitioner's representation and dispose of the same on merits within 2 weeks, 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

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Case-Laws – GST – Highlights – Petition seeking cancellation of bail granted to respondents in a case involving filing of input tax credit for non-operational firms was dismissed. The Department contended that bail was granted at an early stage without opportunity for custodial interrogation, and that investigation into claimed input tax credits from firms with no supplies and background checks of firms and transporters is ongoing. However, the Court opined that cancellation of bail after seven months is unnecessary, as the investigation for such offenses is primarily documentary in nature, which the Investigating Agency can procure. – 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 respondents were permitted to proceed against the petitioner under the provisions of the Act, including invoking powers u/s 74, following the court's modification order granting liberty to consider the matter beyond Section 73. The challenge to the notice issued u/s 74 alleging fraud or suppression of facts cannot be assailed. The determination of whether suppression of facts warranting invocation of Section 74 occurred is a factual issue, and the authority has jurisdiction to issue a notice under that section. The writ court should not intervene at this stage when the petitioner is merely asked to show cause against the proposed action. The petition is disposed of. – 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:- 21-8-2024 – News – Second edition of National Conference of Enforcement Chiefs of State and Central GST Formations held in New Delhi Dated:- 21-8-2024 – Two months' Special drive by Central and State formations to identify and weed out fake registrations underway since 16th August Central and State GST formations must focus on fake registrations during the special drive to ensure deterrence: Revenue Secretary Balance between enforcement actions and ease of doing business is important: Revenue Secretary Enforcement units must focus on real evasion: CBIC Chairman The second edition of the National Conference of Enforcement Chiefs of the State and the Central GST Formations was held in New Delhi. The conference was chaired by Shri Sanjay Malhotra, Secretary, Department of Revenue, Ministry of Finance. The National Conference comes in the backdrop of special drive being undertaken by both Central and State formations to identify and weed out fake

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rns such as GSTR-1A would further aid the efforts of tackling GST evasion in a systematic manner. Setting the context of the one-day conference, Shri Sanjay Agarwal, Chairman, Central Board of Indirect Taxes and Customs (CBIC), recalled the discussion in the first edition of the conference and emphasised the need for enforcement agencies to stay ahead of the evaders so that the sanctity of the GST system is preserved. He advised the enforcement units to focus on real evasion rather than interpretative issues and general industry practice. In his welcome address, Shri Vivek Agarwal, Additional Secretary, Revenue, expected that the participating officers would benefit from the agenda which includes discussion on sector specific enforcement issues, emerging issues in enforcement and techniques to tackle evasion. He stressed the importance of following up on the actions identified so that the useful purpose of the deliberations in the conference are achieved. During the one-day conference,

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identifying and apprehending the masterminds and disrupt syndicates, operating across the country; with 170 such masterminds have been apprehended already. Some of the best practices/guidelines issued to bring in uniformity in action and ensuring ease of doing business were also deliberated. Commissioner of Maharashtra State GST showcased the GST Enforcement Management System (GEMS) implemented in the State to ensure that the enforcement actions are properly tracked and closed so that there is transparency in the process and demands are crystallised within a reasonable time paving way for higher probability of recovery of evaded taxes. During the focussed thematic sessions, zonal units of DGGI/CBIC presented various case studies on misuse of APMC accounts, fintech companies, clandestine clearances, issues in financial sector, taxation of emerging service sector as cryptos, NFTs, TDRs etc. Chief Commissioner Tax (CCT), Gujarat, discussed the modes of evasion detected in manpower supply

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Circulars – GST – Highlights – The Board directs that during audits, when the CGST Audit Commissioner encounters a scenario where an issue involves differing interpretations of the CGST Act, Rules, notifications or circulars, leading to non-payment or short payment of tax, and the taxpayer is following a prevalent trade practice based on a particular interpretation, the Zonal Chief Commissioner should make a self-contained reference to the relevant policy wing (GST Policy or TRU) before concluding the audit. This should be done as early as feasible before issuing a show cause notice. The aim is to promote uniformity and avoid litigation, especially if the matter may be placed before the GST Council. This procedure applies to ongoing audits as well. – 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 judgment addresses the jurisdiction and competence of the Appellate Authority u/s 107(4) of the Act of 2017 to condone delays in filing appeals against decisions or orders passed by an adjudicating authority beyond the prescribed time limit. The Court relied on the Supreme Court's decision in Bengal Chemists and Druggists Association v. Kalyan Chowdhury, which interpreted a similar provision in the Companies Act, 2013. It held that the Appellate Authority cannot entertain an appeal u/s 107 if it is filed beyond four months from the date of communication of the decision or order. While the High Court has extraordinary jurisdiction to condone delays in exceptional circumstances to prevent gross injustice, the reasons provided by the petitioner were found insufficient to warrant such exercise. Consequently, the writ petitions were dismissed as lacking merit. – 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 – Refund claim rejected solely on non-compliance of time limit u/s 34(2) of Central Goods and Services Tax Act, 2017. Appellant authority noted facts, grounds, submissions but dismissed appeal without addressing misinterpretation of Section 34(2) raised by appellants. High Court quashed orders of authorities, remanded matter to consider refund application u/s 54 based on documents, undisputed TPL certificate, and pass order in accordance with law. 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 – High Court rejected petitioner's writ petition challenging refund rejection order, observing that respondent authority had passed reasoned order after considering petitioner's reply and deficiencies in refund application. Court held that petitioner ought to have availed statutory appeal remedy instead of directly approaching Court. Under Article 226, High Court's jurisdiction in certiorari is supervisory, limited to correcting errors of jurisdiction or natural justice violations, not re-appreciating evidence. Appellate forum offers wider canvas than writ jurisdiction. Petition dismissed, with liberty to pursue statutory appeal. – 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 – Violation of principles of natural justice by the respondents. Impugned order passed without giving opportunity to petitioner to reply to show cause notice. Non-receipt of documents hindered petitioner's reply. Respondents lost original documents admittedly taken from petitioner, prejudicing petitioner's rights – a serious matter requiring action. Commissioner directed to explain why disciplinary action should not be taken against him and concerned officers for losing documents. Order forwarded to CBIC, Principal Secretary, and Chief Commissioner for information and necessary action. Respondents to show cause for making false statement about not having records contradicted by Commissioner's affidavit stating documents received but lost. Matter adjourned. – 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 impugned circular dated 13.04.2018 does not lead to double taxation. Section 129 aims to recover tax on goods in transit where statutory compliance for removal was not met. The tax collected at detention stage is the tax payable in returns. If excess tax is paid in GSTR-3B after detention and payment u/s 129, the supplier can claim refund. The petitioner's apprehension of double taxation is misplaced, and the writ petitions are dismissed by the High Court. – 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 challenged orders u/s 62 of the TNGST Act for failing to furnish returns from April to July 2023 within the prescribed period. The High Court held that considering similar circumstances where the petitioner was granted an opportunity upon payment of 25% of the differential tax, it directed the petitioner to deposit 25% of the differential tax between the tax remitted in GSTR 3B and the assessed tax within two weeks. If such tax is paid, the assessing officer shall redo the assessment after hearing the petitioner. The impugned order was set aside, and the assessing officer was directed to consider the impact of the amendment and pass fresh orders on merits in accordance with the law. The petition was disposed of. – 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 summary highlights a challenge to an order issued under Form GST DRC-07 for the difference in tax amount between GSTR 3B and GSTR 1. The impugned orders were passed without considering the petitioner's reply, violating the principles of natural justice. The court held that the respondent failed to consider the petitioner's reply, which stated a clerical error in GSTR 3B and correct filing of GSTR 1, supported by necessary bills. Consequently, the impugned orders were set aside, and the matter was remanded for fresh consideration on the condition that the petitioner pays 15% of the disputed tax within four weeks. The petition was disposed of by way of remand. – 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 – GST registration cancellation due to default in payment caused by financial crisis. Court set aside cancellation order, directing restoration of registration to enable business operations, filing returns, and remitting statutory dues as per law. Petition disposed, allowing petitioner to continue business and facilitate tax collection by the state. – 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 summary addresses the key issues of levy of GST on export of goods to the petitioner's Maldives office, zero-rate supplies, fixed establishment, location of recipient and supplier of services. The court held that the petitioner and respondent had fixed establishments in Addu City, Maldives, and the petitioner was re-registered there, not constituting a separate legal entity. The scope of judicial review was discussed, and the court found that the immovable property and place of supply were in Maldives, outside India. Section 13(4) of the IGST Act governs such cases where the supply, location of recipient and supplier are outside India, precluding GST levy u/ss 9 of CGST Act or 5 of IGST Act. Consequently, the impugned orders were set aside, and the respondents were directed to reimburse the GST, interest and penalty paid by the petitioner within 90 days. – 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 – Interim protection granted by High Court against coercive action based on assessment order pending challenge to notification No. 56/2023 issued u/s 73(9) of CGST Act, 2017. Court prima facie observed notification may be ultra vires Section 168A. Examination required regarding applicability of force majeure based on GST Council meeting minutes. Respondents directed to file affidavits by 19.08.2024. No coercive action permitted till next date based on impugned assessment order dated 05.05.2024. – 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 dismissed by High Court regarding reversal of input tax credit. Court found it was not a case where authorities proceeded on assumption that input tax credit was wrongly availed by buyer despite existence of seller/supplier. Factual dispute raised, not jurisdictional issue or violation of natural justice principles. Petitioner granted liberty to pursue alternative remedy. – 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 – Validity of input tax credit (ITC) u/s 16 of the UP GST Act hinges on compliance with specified conditions to avoid double taxation. The burden lies on the dealer to prove fulfillment of conditions for claiming ITC. Merely producing tax invoices, e-way bills, and banking channel payments is insufficient. Proof of actual physical movement of goods, genuineness of transportation, payment of freight charges, acknowledgment of delivery, toll receipts, and filing of GSTR 2A is necessary. The Supreme Court has held that the primary burden is on the dealer to furnish details like selling dealer, vehicle number, freight payment, delivery acknowledgment, tax invoices, and payment particulars to establish actual goods movement. Submitting only invoices, e-way bills, or payment details is inadequate. Consequently, the High Court dismissed the writ petition, upholding the orders denying ITC for non-compliance with statutory conditions. – 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 impugned order was passed ex parte without providing notice to the petitioner for the subsequent hearing date, violating principles of natural justice. Relying on a coordinate bench judgment in M/s Shubham Steel Traders Vs. State of U.P. and Another, where it was held that by not passing the order on the scheduled date and not communicating the next date, the assessing authority forced an ex-parte order, the court quashed the impugned order dated March 1, 2024, and directed the authority to grant an opportunity of personal hearing to the petitioner and pass a reasoned order in accordance with law. The petition was disposed of. – TMI Updates – Highlights, quick notes, marquee, annotation, news, alerts Tax Management India – taxmanagementindia – taxmanagement – taxmanagementindia.com – TMI – TaxTMI – TMITax

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