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Case-Laws – GST – Highlights – The petitioner was directed to pay a 5% penalty of the prevailing plot cost for the belated implementation of the project as per Clause 2.1.2.(a) of O.O.No.30 of 2020. However, the petitioner complied with the clause by utilizing more than 65% of the plot and had commenced production before dispatching goods. Despite paying the penalty amount, the petitioner was again directed to pay a 5% penalty. The Court found infirmity and illegality in the impugned order and quashed it, allowing the petition, as the petitioner had already paid the penalty and commenced production before dispatching goods, complying with all 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 – High Court dismissed petition seeking quashing of FIR related to clandestine manufacture and supply of cement clinker and cement without invoices and accounting. Court held second FIR maintainable as offense under GST Act would not cover misappropriation of company funds for personal use resulting in wrongful loss. Allegations in second FIR pertain to misappropriation of company funds, distinct from allegations in first FIR regarding document forgery. Complainant having interest in company has locus standi to initiate proceedings. High Court should be slow in interfering with criminal proceedings at initial stage unless complaint discloses no offense or prosecution barred. Powers u/s 482 CrPC wide but require caution in exercise. Investigation at nascent stage, second FIR based on different facts not covered in first FIR, hence maintainable despite some overlap. – 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 – Royalty paid by a mineral concession holder for mining concessions granted by the State is subject to GST levy. The constitutional validity of notifications issued by the Central and Himachal Pradesh governments imposing GST on such royalty payments is upheld. The Supreme Court's nine-judge bench ruling in Mineral Area Development Authority & Anr. v. Steel Authority of India & Anr., overruling its earlier decision in India Cement Limited v. State of Tamil Nadu, clarified that royalty is not a tax. Consequently, the respondents are within their rights to levy GST on royalties paid for mining concessions granted by the State. The High Court upholds the impugned orders and notices regarding GST levy on such royalties and dismisses 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 – Non-generation of e-way bill during transportation of goods led to seizure order u/s 129(3) of GST Act, imposing penalty and interest. However, it was admitted that goods were transported with relevant documents except e-way bill, which was produced before seizure order. No finding recorded regarding intention to evade tax. Relying on precedent, High Court held that in absence of intention to evade tax and production of e-way bill before seizure order, impugned orders cannot be sustained and quashed the same. Petition 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 – Packed halwa purchased from an outsourced manufacturer and marketed under the applicant's brand name is classifiable under HSN Code 2106 90 as “sweetmeats” and taxable at 2.5% CGST under Entry No. 101 of Schedule I of Notification No. 1/2017 Central Tax (Rate), dated 28-06-2017. Despite the same HSN 2106 90 appearing in Schedule II covering “Namkeens,” when a specific item like sweetmeat is named and covered under Schedule I, it should be classified accordingly, irrespective of its HSN code appearing in both schedules. The Advance Ruling Authority held that when sweetmeat is specifically named under Schedule I, there is no reason to classify it under Schedule II, even if the same HSN code is present in both schedules. – 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 applicant's services do not constitute a transfer of the right to use goods, as substantial control remains with the contractor and is not handed over to the user. The contracts in question are leasing or rental services without an operator, falling under Sl. No. 17 (viii) of Notification No. 11/2017 Central Tax (Rate) dated 28-06-2017. Such services attract GST at the rate of 18%, as per the Advance Ruling Authority's decision. – 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 process involved in preparing pre-packed ready-to-eat items is not merely cooking but also includes preservation through retort technology. The appropriate classification for these items is under HSN 2004 10 10, as both preparation and preservation are applicable. According to the rules for interpretation of the Tariff, when goods cannot be classified by reference to specific criteria, they shall be classified under the heading that occurs last in numerical order among those which equally merit classification. Based on this rule, the items merit classification under HSN 2004 10 10. All other items, except for the one at serial number 27, are classified under HSN 2106 90 99. The ruling pertains to the classification of pre-packed ready-to-eat items and the applicable rate of GST. – 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 e-commerce operator's nature of supply is conceptualized u/s 9(5) of the CGST Act, 2017, read with Notification No. 17/2017. The operator is liable to collect and pay GST on the supply of services provided by drivers/service providers to customers identified on the platform, under the proposed business model. The applicant falls within the definition of an electronic commerce operator, and the supply of passenger transportation services through auto-rickshaws, radio-taxis, motorcabs, maxicabs, and motorcycles is facilitated through their platform. By virtue of Section 9(5), the applicant is liable to pay tax on the supply of passenger transportation services by radio-taxis, motorcabs, maxicabs, and motorcycles. – 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 was not served with notices/communications, resulting in their failure to file a reply within the stipulated time. As per the proviso to Rule 86B of the GST Rules, the petitioner is not liable to pay any tax amount. However, the petitioner, being unaware of the show cause notice, failed to appear for personal hearing before the respondent authority. Consequently, no opportunity of personal hearing was provided to the petitioner prior to passing the impugned order, violating the principles of natural justice. The High Court set aside the impugned order dated 26.03.2024 and remanded the matter to the respondent authority for fresh consideration, allowing the petition through remand, as it is just and necessary to provide an opportunity to the petitioner to establish their case on merits. – 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 order passed by the respondent in Form GST DRC-07, reversing the ITC availed by the petitioner. The respondent had passed the order without affording an opportunity of personal hearing to the petitioner, violating Section 75(4) of the CGST Act and principles of natural justice. The matter was remanded to the respondent for fresh consideration after issuing a 14-day notice to the petitioner for personal hearing, considering the reply already filed, and deciding the matter 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 found merit in the petitioner's submission that the impugned order of assessment violated principles of natural justice by traversing beyond the show cause notice, denying the petitioner an opportunity to present their case. Regarding the discrepancy between GSTR-2A and GSTR-3B, the court held that the order proceeded without considering the petitioner's reply and supporting documentary evidence. Concerning the denial of ITC on discounts, finance charges, and depreciation, the court granted the petitioner an opportunity to submit objections and supporting documents before the adjudicating authority. The impugned order was set aside, and the petitioner was directed to deposit the tax liability for the three issues within four weeks. Upon compliance, the impugned order shall be treated as a show cause notice, and the petitioner shall submit objections with supporting documents for all four issues within four weeks for reconsideration by the respondents after a reasonable opportunity of hearing. – 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 violation of principles of natural justice. The impugned order of assessment was not properly served on the petitioner, as it was merely uploaded on the common portal instead of being tendered or sent via RPAD. Consequently, the impugned order was set aside. The petitioner was directed to deposit 25% of the disputed tax within two weeks from receiving the order's copy. Upon complying, the impugned assessment order shall be treated as a show cause notice. The petitioner must submit objections within four weeks from receiving the order's copy, along with supporting documents. If objections are filed, the respondent shall consider them and pass orders in accordance with law after affording a reasonable opportunity of hearing to the petitioner. – 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 denial by the respondents to apply Section 129(1)(a) of the CGST/IGST Act based on the clarification dated 31.12.2018 and previous judgments was unjustified. The finding of the authority in Para-4 of its order was essentially factual and solely based on communication from CGST, Delhi regarding initiation of cancellation proceedings, without any evidence on record. The GSTIN status produced by the petitioner indicated a different status from what was claimed by the Delhi authority. Consequently, the impugned demand of penalty order dated 27.09.2024 passed by Respondent No.2 was set aside, and the matter was remanded to the competent authority to pass a fresh order. The writ petition was allowed 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 – Order quashed due to violation of principles of natural justice. Petitioner not afforded opportunity of hearing after supply of documents. Directions issued by HC not followed. Finding on fraud allegation ipse dixit. Matter remanded to Joint Commissioner for fresh adjudication after providing opportunity of hearing, following HC directions, and dealing with fraud allegation appropriately. – 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:- 8-11-2024 – News – For reducing the tax disputes and to provide a big relief to the taxpayers, GST Council in its 53rd meeting held on 22nd June, 2024 had recommended for waiver of interest and penalties in the demand notices or orders issued under Section 73 of the CGST Act, 2017 (i.e. the cases not involving fraud, suppression or wilful misstatement, etc.) for the Financial years 2017-18, 2018-19 and 2019-20. To avail this waiver, the condition is that the full tax demanded is paid on or before 31.03.2025. In view of the above, Rule 164 of CGST rules, 2017 was notified through Notification No. 20/2024 dated . 8th October 2024, effective from 1st November 2024. This rule provides procedural guideline

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Goods and Services Tax – GST Dated:- 8-11-2024 – News – Dear Taxpayers, As per Notification No. 2/2017-Central Tax dated 19th June, 2017 read with Trade Notice No. 01/2017-Central Tax dated 21st June, 2017 issued by Office of the Chief Commissioner of Central Excise, Mumbai Zone I and GST Trade Notice No. 002/2017 dated 20th June, 2017 issued by Central Excise Zone, Chennai, the applicant applying for new registration application and selecting the category of Other Territory in the tab of State/UT in Part-A of GST registration form, shall only be administered under Mumbai South or Chennai North Commissionerate s and shall select centre jurisdiction as follows: 1. For Other Territory pertaining to the continental shelf and exclusive econo

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Case-Laws – GST – Highlights – GST registration cancellation order passed without providing reasons or opportunity for hearing, violating principles of natural justice. Appellate authority dismissed appeal without considering petitioner's submissions. High Court quashed cancellation order and appellate order, remanding matter to assessing officer for issuing show cause notice and following due process. Petitioner's registration to remain suspended till disposal of show cause notice in accordance with court's directions. – 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 – Order for cancellation of registration passed without providing opportunity of hearing or assigning reasons violates principles of natural justice. Coordinate Bench judgment held authorities should have considered transitional registration applications favorably during GST implementation. Despite directions, cryptic notice and order cancelling petitioner's registration issued without reasons. Appeal dismissed, precluding revisional remedy u/s 108. Impugned orders quashed, matter remanded to Assessing Officer at show cause notice stage for fresh adjudication 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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Case-Laws – GST – Highlights – The High Court examined the issue of whether the Appellate Authority was legally correct in rejecting appeals filed beyond the time limit prescribed under the Haryana Goods and Services Tax Act, 2017. It was found that while the petitioners had paid the pre-deposit for hearing the appeal, the appeals were admittedly filed beyond the limitation period, even exceeding the additional period of 30 days for condonation u/ss 107 and 35(1) of the Act. The provisions u/s 107 are not amenable to the Limitation Act, and the delay cannot be further condoned as the condonation is provided within the Act itself. Consequently, the Appellate Authority's action in rejecting the appeals cannot be deemed illegal or unjustified. The Supreme Court's decision in M/s Tecnimont Pvt. Ltd. Vs. State of Punjab, regarding non-deposit of pre-deposit and rejection of appeals, was considered, wherein the High Court retains jurisdiction under Article 226 to condone the pre-deposit requirement based on case facts. The cancellation of GST registration has a cascading effect on other businesses, necessitating finality in the decision and an efficacious remedy for the aggrieved person. The powers to hear appeals u/s 107 would not be subject to filing within the prescribed time, as it would not deprive a person. – 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 – This is a judgment by the High Court granting regular bail to the petitioner accused of offenses u/ss 420, 467, 468, 471 of the Indian Penal Code and Section 132(1)(b) and (c) of the HGST Act, 2017, related to wrongful availment and utilization of Input Tax Credit (ITC). The court considered that the petitioner has already undergone substantial incarceration, co-accused have been granted bail, and the trial is likely to take considerable time. The court relied on the principles of criminal jurisprudence, the right to a speedy trial under Article 21 of the Constitution, and the need to minimize pre-conviction detention. The court also cited precedents emphasizing that bail is the general rule, and denial of bail should not be based solely on pending cases or convictions. Consequently, the petitioner was directed to be released on regular bail upon furnishing bail and surety bonds to the satisfaction of the trial court or duty magistrate. – 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 regular bail, contending false implication and non-impleadment of main accused. Petitioner underwent 11 months and 26 days of custody, with another case pending on bail. Charges framed u/ss 420, 467, 468, 471 IPC and Section 132 CGST Act, 2017. Court observed that out of 12 prosecution witnesses, only 3 examined till date, and further detention would violate Article 21's right to speedy trial, as per Dataram Singh case. Deprivation of liberty without speedy trial inconsistent with Article 21, as per Abdul Rehman Antulay case. Veracity of allegations to be established during trial. Only 3 witnesses examined despite charges framed, rendering further incarceration purposeless. Without commenting on merits, bail granted subject to conditions, applying “bail is rule, jail exception” principle. – 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:- 6-11-2024 – News – Advisory for Form GST DRC-03A Dated:- 6-11-2024 – 1. It has been observed that some taxpayers have paid the demanded amount vide DRC 07 / DRC 08 / MOV 09 / MOV 11 / APL 04 through DRC-03 instead of using payment facility Payment towards demand available on GST portal. This led to a situation where demand has been paid by the taxpayer, however the demand is not closed in the electronic liability register. To address this issue, the government has notified a new form named GST DRC-03A which was notified vide Notification No. 12/2024 dated. 10th July 2024. 2. Accordingly, GSTN has developed the new Form GST DRC-03A on GST portal which is available now to adjust the paid amount through

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Goods and Services Tax – GST Dated:- 6-11-2024 – News – Advisory: Time Limit for Reporting e-Invoice on the IRP Portal – Lowering of Threshold to AATO 10 Crores and Above Dated:- 6-11-2024 – Dear Taxpayers, 1. With reference to the earlier advisory dated 13th September 2023 ( https://einvoice.gst.gov.in/einvoice/newsandupdates/read-602 ), where a time limit of 30 days for reporting e-Invoices on IRP portals for taxpayers with an AATO of 100 crores and above was implemented, the threshold has now been lowered to cover taxpayers with an AATO of 10 crores and above. 2. Therefore, from 1st April 2025, taxpayers with an AATO of 10 crores and above would not be allowed to report e-Invoices older than 30 days from the date of reporting on IRP p

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Case-Laws – GST – Highlights – Interim order by High Court lifting attachment on petitioner's bank account pending final disposal, allowing petitioner opportunity to respond to demand notice issued under CGST Act. Court refrains from opining on merits, directs petitioner to appear before respondent authority on specified date for further proceedings 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 – The High Court addressed the extension of due dates u/s 73 of the CGST/AGST Act, 2017 due to the Covid-19 pandemic. It examined the provisions related to the time limit prescribed u/s 73 and the invocation of Section 168A, considering the “force majeure” condition. The Court observed that, notwithstanding Section 16(4), for financial years 2017-18 to 2020-21, the registered person shall be entitled to take input tax credit in any return filed u/s 39 up to November 30, 2021. The amendments brought by the Finance (No. 2) Act, 2024, rendered the challenge in the writ petition redundant. The petitioner is entitled to avail the input tax credit benefit for the relevant period, subject to the conditions prescribed in the newly inserted Sections 16(5) and 16(6). Consequently, the impugned order was set aside, and the matter was remanded to the competent jurisdictional officer for appropriate orders. – TMI Updates – Highlights, quick notes, marquee, annotation, news, alerts Tax Management India – taxmanagementindia – taxmanagement – taxmanagementindia.com – TMI – TaxTMI – TMITax

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