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Case-Laws – GST – Highlights – Excess stock found during survey triggers proceedings u/ss 73/74 of the GST Act, not Section 130. The authority noted excess stock by eye estimation without physical verification or video recording. The High Court held that if excess stock is found, proceedings u/ss 73/74 should be initiated, not Section 130 read with Rule 120. The impugned orders initiating proceedings u/s 130 were quashed as legally unsustainable when excess stock was found during the survey. – 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 dismissed the writ petition filed by the petitioner challenging the validity of the order determining the amount of tax u/s 74 of the U.P. G.S.T. Act, 2016. The court observed that a coordinate bench had previously directed the petitioner to avail the remedy of appeal within the limitation period from the date of the order. However, the petitioner failed to file the appeal within the prescribed time limit and instead filed the present writ petition after a considerable delay. The High Court held that since the coordinate bench had granted a specific relief, which the petitioner chose not to avail, the present writ petition cannot be entertained and was consequently dismissed. – 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 quashing penalty levied u/s 130 of GST Act due to violation of principles of natural justice. Authority failed to address petitioner's request for personal hearing beyond specified date, thereby passing order without considering petitioner's prayer. Once a request for alternate hearing date was made, authority was obligated to either grant or decline it explicitly. Failure to determine or react to the request constituted denial of natural justice. Consequently, the impugned order dated 18.06.2024 was quashed and set aside, allowing 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 – Appellate authority erred in dismissing appeal solely on ground of lack of authorisation of signatory, without affording opportunity to establish authorisation or provide resolution conferring necessary powers. Such denial violates principles of natural justice, fair play, and unduly burdens court's docket. Impugned order set aside, appeal restored for fresh consideration on merits as per law by Commissioner (Appeals). Dismissal shortcut disapproved, appellants entitled to substantive adjudication. – 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 non-filing of returns and non-payment of taxes. Considering the company underwent CIRP process under Insolvency and Bankruptcy Code, leeway granted to revive business. Petitioner directed to file application for revocation of registration cancellation by specific date, accompanied by draft returns proposed for filing upon restoration. Writ petition disposed with conditions imposed, allowing company certain leeway given special circumstances of CIRP 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 – GST rates on supply of affordable and non-affordable residential apartments in a real estate project (REP) are 1.5% and 7.5% respectively, while commercial apartments attract 18% GST. A promoter can supply affordable and non-affordable apartments conjointly, subject to prescribed conditions. For construction of commercial apartments in a REP other than residential real estate project (RREP), GST rate is 18%. Input tax credit is restricted for goods and services used in construction of immovable property on taxpayer's own account, even if used in course of business, except for plant and machinery, as per Section 17 of CGST Act. – 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 – Application for advance ruling rejected as questions raised were already pending in show cause notice proceedings under CGST/KGST Act. First proviso to Section 98(2) bars admission of application where issue is already pending or decided in applicant's case under CGST Act provisions. Input tax credit admissibility on construction materials for Marriage/Convention hall and inward supplies like DG sets, air conditioners, furniture for letting out such halls was the subject matter. Authority held that since identical issues were subject of show cause notice, application was liable for rejection as per statutory requirement of first proviso to Section 98(2). – 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 AAAR held that the time limit for passing an order u/s 101 of the CGST Act, 2017 is not mandatory, and the word 'shall' should be interpreted in an advisory manner to avoid denying the right of appeal. The appeals were filed within the statutory period and not barred by limitation. Manual filing of appeals is allowed u/r 107A of the CGST Rules, 2017. Both central and state GST authorities are proper authorities to file an appeal against an advance ruling. The appellant can revisit their stance taken before the AAR, and the principle of estoppel does not apply. The preliminary objections raised by the respondent were rejected, and the appeals were held maintainable to be decided on merits. The case pertains to the valuation of GTA services and inclusion of the value of diesel provided by the service recipient. – 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 – Anticipatory bail granted in a case involving fraudulent availing of Input Tax Credit and passing it without actual supply of goods. Provisions of CST Act, CGST Act, and judgments in related cases were considered. The High Court observed the issue of anticipatory bail in CGST offenses as unsettled and exercised discretion. Bail granted subject to terms and conditions, as the facts were similar to a previous case where bail was allowed for fraudulently availing Input Tax Credit exceeding Rs. 5 lakhs u/s 132 of TGST Act. – 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 the impugned order on grounds of violation of principles of natural justice, asserting unawareness of proceedings. Court observed petitioner's non-participation resulted from failure to monitor GST portal and respond to notices. To provide opportunity, impugned orders were set aside, matters remanded for reconsideration subject to condition that petitioner remits 10% of disputed tax demand for each relevant month within two weeks, and permitted to submit reply to show cause notice within same period. 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 – Tax assessment proceedings involving GSTR 3B returns mismatch with auto-populated GSTR 2A. Disputed tax demand partially recovered through bank appropriation exceeding 10%. Order confirming demand solely for non-reply to show cause notice set aside for reconsideration after petitioner's reply. Matter remanded to allow petitioner to file reply within 15 days, raising all contentions. – 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 challenging SCN demanding IGST paid on manpower supply services received by petitioner. Court held State GST Authorities had already initiated proceedings against petitioner on same matter, barring Central GST Authorities from initiating proceedings u/s 6(2)(b) CGST Act. Impugned SCN demanding IGST quashed. Regarding denial of input tax credit for alleged violation of Section 16(4) CGST Act, Court relied on its previous judgments and CBIC Circular, holding input tax credit validly availed. Petition disposed with directions quashing SCN to extent of IGST demand and allowing input tax credit. – 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 – Principles of natural justice were upheld in a case concerning service of show cause notices (SCNs) issued u/s 73 of the GST Act. The SCNs were uploaded on the 'Additional Notices and Orders' tab of the GST portal, but not under the 'View Notices and Orders' tab. The court observed that there was no material to reject the contention that the impugned order was not reflected under the 'View Notices and Orders' tab. Additionally, there was a dispute regarding whether all replies and annexures filed by the assessee were displayed to the assessing officer and considered. The court quashed the orders passed by the Deputy Commissioner, State Tax, Kanpur, allowing the writ petition filed by the petitioner, following the judgment in the case of Ola Fleet Technologies Pvt. Ltd. – 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 petition challenges the suspension of GST registration by the respondent authority. The court held that the suspension order lacked justification as the petitioner had complied with registration requirements, including submitting NOC for principal place of business. For additional premises, NOC is not mandated under GST rules. The authority erred in suspending registration for all premises based on lack of NOC for additional place. The impugned order was quashed, restoring petitioner's GST registration to enable continued business operations. The court affirmed maintainability despite alternative remedies, citing precedent allowing writ petitions in certain circumstances. – 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 quashed refund rejection orders for lack of opportunity for personal hearing as mandated by Rule 92(3) of CGST Rules, 2017, violating principles of natural justice. The show cause notices allowed 15 days for response, which petitioner complied with, but hearing was allegedly held before reply. No clear evidence of hearing intimation existed. Rule 92(3) requires reasonable opportunity for hearing after reply to show cause notice. The matter was remanded for fresh consideration of refund application, upholding principles of fair play. – 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 advance ruling application seeking nil rate of GST on stamp duty and registration fees paid for registering a mining lease deed is inadmissible. The matter is already under audit proceedings initiated by the Audit Commissionerate demanding GST payment. As per Section 98(2) of the CGST Act, an advance ruling cannot be sought on issues already pending in audit. The Madras High Court judgment in ABT Limited case upheld that during GST audit u/s 65, if tax non-payment or wrong ITC utilization is found, action u/ss 73 or 74 can be initiated u/s 65(7). Since the audit is a valid proceeding covered u/s 98(2), the applicant's appeal against the advance ruling is liable to be rejected. – 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 dealt with the maintainability of a petition concerning the non-constitution of an Appellate Tribunal and the jurisdiction and authority of the Assistant Commissioner as a “proper officer” and “adjudicating authority” under the Uttarakhand Goods and Service Tax Act, 2017. The court held that since the Assistant Commissioner was assigned functions as a proper officer u/s 5(1) and 5(3) read with Section 2(91) of the Act, and as an adjudicating authority u/s 2(4) (excluding the Commissioner), the Assistant Commissioner had the authority to pass an order for cancellation of GST registration. Consequently, an appeal would lie before the Commissioner against an order passed by the Assistant Commissioner, being a proper officer and adjudicating authority under the Act. The court allowed the review application in part, modifying its earlier judgment to hold that an appeal lies before the Commissioner against orders passed by the Assistant Commissioner. – 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 petition was dismissed due to the appeal being filed beyond the limitation period without a proper explanation for the delay. The High Court held that it cannot condone the delay under extraordinary jurisdiction when the petitioners failed to provide valid grounds. The Supreme Court precedent in Singh Enterprises case affirmed that there is no power to condone delay after the expiry of the 30-day period. Consequently, no interference was warranted in the impugned orders canceling the GST registration. – 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 – Retrospective cancellation of GST registration was challenged due to lack of adequate reasons provided for cancellation and violation of principles of natural justice. The High Court, relying on Riddhi Siddhi Enterprises case, held that authorities failed to assign even rudimentary reasons for retroactive cancellation, rendering the order unsustainable. Additionally, the original show cause notice did not indicate intention for retrospective cancellation. Consequently, the impugned order was quashed to the extent of retrospective effect from 12 November 2019. The cancellation was allowed prospectively from 09 September 2022, the date of show cause notice issuance, upholding principles of natural justice. – 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 held that the petitioner was not an intermediary but directly engaged in providing services to an entity outside India. The respondents erroneously classified the petitioner as an intermediary without any material evidence or tripartite agreement. The petitioner's consistent stand was supplying services on a principal-to-principal basis. Merely providing services to a holding company or charging a mark-up over costs does not render the petitioner an intermediary. Consequently, the impugned orders classifying the petitioner as an intermediary were unsustainable and set aside, allowing the refund of unutilized Input Tax Credit (ITC). – 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 – Cancellation of GST registration with retrospective effect challenged. Court held that authorities failed to provide substantive reasons for rejecting application and issuing show cause notice/cancellation order, merely stating “reply unsatisfactory” and “others” without reasoning. Petition allowed, directing cancellation of petitioner's GST registration from specified date due to lack of proper reasoning by authorities. – 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 – Cancellation of registration by adjudicating authority without assigning reasons and without application of mind violates principles of natural justice and Article 14 of Constitution. Providing reasons is essence of judicial proceedings. Delay beyond permissible period cannot be condoned. Matter remanded to adjudicating authority to pass reasoned order after granting opportunity of hearing to petitioner by allowing filing of reply to show cause notice within four weeks. – 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 petition was declined on grounds of maintainability due to availability of an alternate efficacious remedy of appeal against the impugned order. The contention regarding failure of principles of natural justice due to lack of opportunity of hearing was rejected, as intimations were sent to the petitioner's registered address, and the petitioner failed to notify the change of address. It was held that it was a case of “no adequate notice” rather than “no notice,” and in such cases, the party must establish prejudice. Consequently, the petitioner was relegated to avail the alternate remedy of appeal, and 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 – Retrospective cancellation of GST registration without assigning reasons violates principles of natural justice. The impugned order lacked reasoning for cancelling registration retrospectively from a particular date, having cascading effect on input tax credit. Mere allegation of non-existence was insufficient, as petitioner substantiated temporary suspension due to ill health. Abject failure to conduct enquiry or provide reasons for retrospective cancellation renders the order unsustainable. Authorities directed to restore petitioner's GST registration after setting aside the impugned show cause notices and cancellation orders. – 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 – Rate of tax applicable on services provided by the applicant to Maharashtra Jeevan Pradhikaran (MJP) as part of the Jal Jeevan Mission, a Government of India mission. The services are classified as “Technical Consultancy for Project Development and Management support services” under SAC code 998399, attracting 18% GST (9% CGST & 9% SGST), unless exempted. For services provided before 01.01.2022, the exemption under Entry No. 3 of Notification No. 12/2017-Central Tax (Rate) is applicable. However, for services provided on or after 01.01.2022, the exemption is not available due to the omission of “Government Authorities” from the notification entry. The applicant's argument that services are provided to Central and State Governments, thus eligible for exemption, is rejected as speculative. The issue of whether MJP's appointment amounts to delegation of sovereign functions under the Constitution is deemed outside the purview of Section 97(2) of the GST Act. – TMI Updates – Highlights, quick notes, marquee, annotation, news, alerts Tax Management India – taxmanagementindia – taxmanagement – taxmanagementindia.com – TMI – TaxTMI – TMITax

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