Goods and Services Tax

Case-Laws – GST – Highlights – The High Court set aside the order cancelling the petitioner's registration under the Central Goods and Services Tax Act, 2017 and the West Bengal Goods and Services Tax Act, 2017, subject to the condition that the petitioner files returns for the entire period of default and pays the requisite amount of tax, interest, fine, and penalty, if not already paid. The cancellation was due to the petitioner's failure to comply with statutory provisions by not filing returns, but the Court noted that suspension/revocation would be counterproductive and against revenue interests as it would prevent the petitioner from carrying on business and raising invoices, ultimately impacting tax recovery. The Court took a pragmatic view, considering that the respondents did not allege dubious processes to evade tax. – 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 an assessment order due to lack of reasonable opportunity for the petitioner to contest the tax demand on merits. The show cause notice and other communications were uploaded on the GST portal's “View Additional Notices and Orders” tab but not communicated through other modes, violating principles of natural justice. The court ordered the petitioner to remit 10% of the disputed tax demand within two weeks and permitted submission of a reply to the show cause notice, providing an opportunity to contest the demand. The petition was disposed of on this condition. – 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 approached the Court seeking direction to respondent authorities to decide application for GST refund for December 2017 and January 2018, which was denied due to technical issues in GSTN portal. Court directed respondents to consider petitioner's representation within four weeks, providing opportunity of hearing, and place findings on record. Matter adjourned to specified date, with permission for direct service on respondents. – 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 cancelling petitioner's registration violated principles of natural justice as it was passed mechanically without application of mind and without assigning reasons. Appeal against cancellation dismissed on ground of delay. Reasons are essential for judicial and administrative orders. Doctrine of merger inapplicable due to circumstances. Referring to precedent, order without reasons fails Article 14 test of reasonableness. Impugned cancellation order quashed for lack of reasons, 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 – A review application is maintainable on (i) discovery of new and important evidence which could not be produced earlier despite due diligence, (ii) mistake or error apparent on the face of record, or (iii) any other sufficient reason. The Supreme Court held that review cannot be done unless a material error manifestly apparent on the face of the order would result in miscarriage of justice. Review proceedings are strictly confined to the ambit of Order 47 Rule 1 CPC. A party cannot repeat old arguments under the guise of a review petition. The power of review is distinct from appellate power to correct errors. In the present case, the HC found no error apparent on the record to warrant interference with its earlier order holding that the respondent is entitled to receive original non-relied documents u/s 67(3) of CGST Act and Rule 27 of Central Excise Rules 2017. Consequently, the review petition was 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 – The court held that if the rate of duty drawback under Column A and Column B is the same, then the refund of IGST has to be ordered even if the party selects Column A, as selecting Column A does not result in any double benefit. In the present case, the petitioner had voluntarily selected Column A and claimed higher duty drawback. The court directed the respondents to grant refund of IGST paid on exported goods after deducting the differential amount of duty drawback, along with 7% interest from the date of the shipping bill till the date of actual refund. The petition was 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 – Petitioner pre-deposited Rs. 6,25,000/- as condition for filing appeal u/s 51 of TNVAT Act against Assessment Order dated 21.10.2010. After revised Assessment Order on 24.07.2015 substantially dropping demand, petitioner entitled to refund of pre-deposited amount except Rs. 3,902/- appropriated towards balance tax liability. Though petitioner wrongly transitioned amount, issue revenue neutral as Commercial Tax Department bound to refund pre-deposited amount pursuant to revised order. Impugned orders quashed, 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 – The respondent, engaged in selling medicines with GSTIN 24AFKPG7000FIZZ, failed to pass on the benefit of GST rate reduction from 28% to 18% on the product “Eclat Serum 30gm” (HSN 33049910) to the recipients, effective from 15.11.2017 as per Notification No. 41/2017-Central Tax (Rate) dated 14.11.2017. This contravened Section 171(1) of the CGST Act, 2017. The profiteered amount is determined as Rs. 2,06,100/- u/r 133(1) of the CGST Rules 2017. The respondent is required to pass on the profiteered amount of Rs. 2,06,100/- along with 18% interest from the date of collection till payment, as per Rule 133(3)(b). Although the respondent committed an offence u/s 171(3A) by denying the rate reduction benefit, penalty cannot be imposed retrospectively as Section 171(3A) was inserted effective 01.01.2020. – 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 show cause notice issued to the petitioner for cancellation of GST registration lacked specific reasons for alleged fraud, willful misstatement or suppression of facts. Consequently, the order canceling the petitioner's GST registration was set aside due to violation of principles of natural justice. The court directed the authority to provide all documents referred to in the show cause notice to the petitioner within ten days to protect the petitioner's interests, disposing of 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 – The High Court held that u/s 54 of the Goods and Services Tax Act, 2017, when the input tax credit paid is higher than the output tax, the dealer is entitled to seek a refund of the excess amount. The Court rejected the Revenue's argument that the dealer voluntarily paid excess tax, as the legislative intent is to provide a refund when the input tax credit exceeds the output tax. In the present case, the dealer was entitled to a refund as the output tax was only 5%, while the input tax credit was 18%. Regarding the interest rate, the Court modified the 9% rate awarded by the writ Court to 6%, payable by the Revenue from the date of expiry of sixty days from the Original Authority's order u/s 54(5). The writ appeals filed by the Revenue were 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 – The notification bearing No. 56/2023 is ultra vires Section 168A of the CGST Act, 2017 as it lacks the mandatory recommendation of the GST Council. Consequently, actions based on such notification are invalid. The petitioner is entitled to reliefs proposed in the Financial Bill 2024. Examination is required regarding applicability of force majeure for extending time limit u/s 73(9) considering the 49th GST Council meeting minutes. Respondent authorities should present their stance and materials claiming force majeure applicability. Interim protection granted to petitioner against impugned assessment order dated 24.04.2024, with no coercive action permitted until the next hearing date. – 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 due to failure to file monthly returns for six consecutive months. Court followed Suguna Cutpiece judgment, directing restoration of registration subject to conditions: filing pending returns, paying tax dues with interest, and late fees within 45 days. Restoration contingent upon fulfilling stipulated conditions. Consistent approach maintained to ensure uniformity in judgments. – 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 case pertains to the admissibility of Input Tax Credit (ITC) on the 'Rotary Parking System' falling under HSN code 8428 and the blocking of credit u/s 17(5) of the CGST/TNGST Act, 2017. The appellant renders 'Renting of Immovable Property Service' and proposes to install a 'Rotary Car Parking System' within the premises, not inside the building, to provide parking facilities to tenants and customers. The exclusion clause 'other than plant and machinery' in Section 17(5)(c) and (d) conveys that ITC on 'plant and machinery' is not blocked, but the 'Rotary Parking System' is considered a 'civil structure' excluded from the definition of 'plant and machinery'. The service of 'Renting of Immovable Property' includes common areas and facilities, making the 'Rotary Parking System' part of the immovable property being rented out. Therefore, the input tax credit on the purchase of the 'Rotary Parking System' becomes ineligible u/s 17(5)(d) of the CGST/TNGST Acts, 2017, as it amounts to construction of an immovable property. – 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 – Statutory bail provision u/s 167(2)(a)(ii) of CrPC is a beneficial provision granting relief to accused if investigating agency fails to complete investigation within stipulated time. Right to apply for statutory bail is a Constitutional right recognized by Apex Court. Initial serious allegations of tax evasion and unscrupulous means to pass undue advantage of Input Tax Credit generated by bogus entities on fictitious invoices were made. However, no complaint filed till date despite lapse of over five years, raising doubts about petitioner department's intent to take case to logical conclusion. Lack of merits in petition led to its dismissal by 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 – GST Authorities invoked penal provisions under Indian Penal Code against the petitioner without invoking penal provisions of GST Act, despite the alleged offences being covered under GST Act. This was done without obtaining sanction u/s 132(6) of GST Act. The court held that GST Act is a special legislation dealing with GST-related procedures, penalties, and offences. Authorities cannot bypass the prescribed procedure for launching prosecution under GST Act by simply invoking IPC provisions without invoking GST Act provisions, especially when allegations constitute offences covered under GST Act. Doing so would amount to bypassing procedural safeguards like obtaining commissioner's sanction u/s 132(6), prejudicing the petitioner. Allowing authorities to adopt such a course would be an abuse of process of law, which cannot be permitted. Consequently, the petition was allowed, quashing the prosecution launched without following due process under 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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Case-Laws – GST – Highlights – Petitioner challenged adjudication order u/s 73 of CGST/WBGST Act, 2017 regarding discrepancies in returns, short payment of tax, and excess availment of Input Tax Credit (ITC). Court directed proper officer to afford fresh opportunity of hearing to petitioner. Considering determination already made, petitioner directed to deposit pre-deposit sum of Rs.10 lakhs within two weeks. Upon deposit, proper officer to decide matter afresh after hearing petitioner, who can rely on additional documents. Deposit to be retained till fresh decision. Writ 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 set aside the impugned assessment order that disallowed Input Tax Credit solely on the ground of delay u/s 16(4) of the GST Acts. The Court directed the assessing authority to re-do the assessment considering the amendment and reconsider the petitioner's submissions on three other issues: ineligibility u/s 17(5), ineligible ITC declaration, and excess ITC claimed due to outward supplies not supported by E-way bills and discrepancies between GSTR-9 and GSTR-1. The petitioner was granted four weeks to file objections on all issues, including Section 16(4). 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

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Case-Laws – GST – Highlights – Principles of natural justice violated due to improper service of show cause notice (SCN). SCN and impugned order uploaded on GST portal, but mismatch between GSTR-7 and GSTR-3B returns. Impugned assessment order set aside. Petitioner directed to deposit 25% of disputed tax within two weeks. Upon compliance, assessment order treated as SCN, and petitioner granted four weeks to file objections with supporting documents. Respondent to consider objections after providing reasonable opportunity of hearing. 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 petitioner paid Integrated Goods and Services Tax (IGST) of Rs. 85,70,105/- on imported goods, which was not disputed. The petitioner availed Input Tax Credit of the paid IGST as permissible under the SGST Act. While filing GSTR-2A returns, the petitioner reflected the IGST details, but inadvertently omitted to include the same in GSTR-3B returns for July, August, September, and October 2017. The High Court set aside the impugned order, subject to conditions, upon the Special Government Pleader's submission that if relevant Bill of Entries are submitted, the authorities will consider the same. – 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 – Penalty levied u/s 73 of SGST and CGST for alleged discrepancy between value of supply reported in GSTR 3B and GSTR 1. Court held that Revenue did not have serious objection considering petitioner's willingness to pay 10% penalty and inability to participate due to ill-health. Impugned order set aside, directing fresh order after providing opportunity of hearing to petitioner. Petitioner to submit objection within two weeks, to be considered and orders passed in accordance with law after granting reasonable opportunity. 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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Goods and Services Tax – GST Dated:- 4-9-2024 – News – Advisory on Reporting of supplies to un-registered dealers in GSTR1/GSTR 5 Dated:- 4-9-2024 – Vide Notification No. 12/2024 Central Tax dated 10th July, 2024 , the Government has reduced the threshold limit for reporting of invoice wise details of inter-state taxable outward supplies made to unregistered dealers from 2.5 Lakh to 1 Lakh which needs to be reported in Table 5 of Form GSTR-1 and Table 6 of GSTR-5 . In accordance with the new

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Case-Laws – GST – Highlights – The High Court quashed the order of cancellation of registration passed by the respondent authorities without providing an opportunity of hearing to the petitioner, despite a request for adjournment due to a medical emergency. The court observed that the impugned order lacked proper reasoning and supporting documentary evidence, and the authorities showed undue haste and an inhuman approach by not granting sufficient time. The matter was remanded to the respondent to provide an opportunity of hearing to the petitioner and pass a fresh order in accordance with law within twelve weeks. The petition was disposed of by way of remand, upholding the 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 – Petitioner challenged determination made by respondents on 30th December 2023 u/s 73(9) of CGST/WBGST Act 2017, alleging violation of principles of natural justice without issuance of show cause notice in Form GST DRC-01 and without uploading on portal. Court observed petitioner was duly served show cause notice prior to adjudication order for tax period 2017-18 to 2022-23 through email as permitted u/s 169. However, summary of order was not uploaded on portal and Form GST DRC-07 uploaded belatedly on 14th June 2024 was defective. Court permitted respondents to upload summary of order along with Form GST DRC-07 on portal and disposed 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 – Order of cancellation of registration passed without giving reasons, appeals dismissed u/s 107 of GST Act. Appellate Authority's dismissal prevents revisional powers u/s 108. Impugned orders quashed, matter remanded to Assessing Officer at show-cause notice stage. Registration remains suspended till show-cause notice decided as per directions. Petition partly allowed, quashing orders, remanding to Assessing Officer, registration suspended till show-cause notice 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 – Non-compliance with provisions of the Goods and Services Tax Act, specifically Section 74(1) of the Central/Bihar Goods and Services Tax Act, 2017, was raised regarding the illegality in issuance of notice. The court held that there were no grounds to entertain the writ petition on the stated illegality, as an explanation was sought for the discrepancy, and the assessee's reply was found unsatisfactory. However, this was only a preliminary step leading to the demand cum show-cause notice. The assessee is entitled to appear and raise objections against Annexure-1, if proceedings are not concluded. Consequently, the writ petition was dismissed. – TMI Updates – Highlights, quick notes, marquee, annotation, news, alerts Tax Management India – taxmanagementindia – taxmanagement – taxmanagementindia.com – TMI – TaxTMI – TMITax

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