Goods and Services Tax

Jurisdictional Issues Raised on Extended Limitation Period, GST Rate for Product.
Case-Laws
GST
The HC held that invoking the extended period of limitation u/s 74 of the CGST Act is a jurisdictional aspect in the present case. The petitioner has been paying GST at 5% under Entry No. 181-A for the product in question since 2017, while paying higher GST at 12% for different products. As Entry No. 181-A is not different from the similarly worded sub-heading 3003.31 of the Central Excise Tariff Act, 1985, which has been repeatedly interpreted contrary to the allegations in the show cause notice, the aspect of invoking the extended period requires consideration along with the binding nature of the GST Council's deliberations. The HC found the issues raised to be jurisdictional and issued notice for further consideration.
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Director Granted Bail in GST Fraud Case After Undertaking to Pay Rs. 2 Crore Tax.
Case-Laws
GST
HC granted regular bail to the applicant Director of M/s Nandeshwari Steel Co. in a case involving fraudulent availment of ITC and issuance of fraudulent invoices by non-existent suppliers. The applicant undertook to pay Rs. 2 crores GST amount in two installments. Considering the offence punishable up to 5 years, completed investigation, principle of bail being the rule and jail an exception under Article 21, and the time required for trial commencement, HC allowed regular bail.
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HC grants interim bail in alleged GST evasion case; questions arrest without tax liability determination.
Case-Laws
GST
HC granted interim bail to petitioner arrested u/s 132(1)(c) CGST Act for alleged GST evasion by falsely claiming ITC. HC found no determination of tax liability by authorities to justify “reasons to believe” for arrest at investigation stage. Despite powers u/s 69, continued detention wasn't warranted as petitioner cooperated and no risk of absconding. Bail granted with conditions.
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State can't skip primary service of notice modes, must follow Section 169 for valid GST notices.
Case-Laws
GST
The HC held that Section 169 of the Tamil Nadu GST Act mandates service of notices on assessees either in person, by registered post, or to the registered email ID as alternative modes. Only upon failure or impracticability of these modes can the State make publication of notices/orders on the web portal or newspaper as an additional step. Mere uploading on the portal without attempting the primary modes violates principles of natural justice. The impugned assessment orders were set aside and remanded to comply with Section 169 requirements.
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GST Registration Cancellation: Prospective Effect Upheld, Retrospective Cancellation Quashed.
Case-Laws
GST
The HC quashed the retrospective cancellation of the petitioner-assessee's GST registration, relying on Riddhi Siddhi Enterprises v. Commissioner of Goods and Services Tax (CGST), South Delhi & Anr. It held that in the absence of the show cause notice embodying an intent for retrospective cancellation, the cancellation shall be effective from the date of issuance of the show cause notice, not retrospectively.
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ITC indefeasible if not utilized, interest u/s 50(3) requires actual utilization (3).
Case-Laws
GST
The HC held that validly availed input tax credit (ITC) is indefeasible unless utilized improperly. The imposition of interest u/s 50(3) requires actual utilization of the credit. Since the petitioner had not utilized the accumulated ITC after the cut-off date, the imposition of interest as per the impugned circular could not be justified. The petition was allowed.
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Case-Laws – GST – Highlights – Section 129 of CGST Act constitutes statutory penalty provision overriding others, but cannot override Section 126 principles of moderation for minor breaches. HC held non-obstante clause in Section 129 cannot annihilate Section 126 rules for considering penalty levy. Section 126(6) excludes fixed sum/percentage penalties, distinguishing discretionary penalties. Authorities must differentiate trivial breaches like incomplete e-way bills without tax evasion intent from serious contraventions. Confiscation u/s 130 at initial stage without evasion evidence unjustified. Fair reasoned approach essential to avoid unnecessary detention. Penalty levy guided by Section 126 embodying moderation, restraint and reasonableness principles. 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 – Petitioner challenged SCN alleging conspiracy to issue fake invoices without actual supply using another entity's GST registration for tax evasion. HC held petitioner has remedy to file objection for adjudication on merits. Mere assertion of lack of jurisdiction or abuse of process insufficient for invoking Article 226. When factual adjudication required, Article 226 interference ruled out as held in UOI v. Vicco Labs. Petitioner's reasons agitable before adjudicating authority itself. No grounds to entertain petition under Article 226. Petitioner relegated to pursue statutory remedies. Petition 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 HC dismissed the writ petition challenging the order issued u/s 74 of the Central Goods and Services Tax Act, 2017. The HC held that the correctness of reasons for invoking Section 74 cannot be examined in a writ proceeding as those involve disputed facts. The appropriate remedy against an order u/s 74 is to prefer an appeal u/s 107 of the Act. The HC refused to exercise writ jurisdiction despite reliance on an instruction indicating Section 74 proceedings can be invoked only in case of fraud, willful misstatement or suppression of facts 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 – HC allowed the petition. It held that non-granting of opportunity to cross-examine witnesses whose statements were relied upon by the Adjudicating Authority to impose penalty u/s 74(9) of the CGST Act violated principles of natural justice. The HC observed that Section 107(11) of the Act does not empower the Appellate Authority to remand the case for such violations, necessitating invoking writ jurisdiction under Article 226 of the Constitution. – 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 – HC set aside dismissal order for 2017-18 assessment year and directed Appellate Authority to consider appeal on merits regarding discrepancies in GSTR-1, GSTR-3B returns. Petitioner had filed appeal within prescribed time limit under Notification No. 53/2023 and complied with condition of tax payment. 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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GST Dated:- 20-1-2025 – News – 24 Companies selected under PLI Scheme for White Goods (ACs and LED Lights) with committed investment of Rs. 3,516 crore in Third Round. Dated:- 20-1-2025 – 18 new companies committed investments of Rs. 2,299 crore and 6 existing PLI beneficiary committed additional investment of Rs. 1,217 crore 15 AC Companies to invest Rs. 3,260 crore, 9 LED Companies to invest Rs. 256 crore Total of 84 companies under the PLI Scheme for White Goods (ACs and LED Lights) are set to bring investments of Rs 10,478 crore, resulting in production worth Rs 1,72,663 crore during the Scheme period With a total of 24 beneficiaries committing investment of Rs 3,516 crore in the third round, the PLI Scheme is poised to significantly boost the production of Components of ACs LED Lights across India. In the third round of the on-line application window of the Production-Linked Incentive (PLI) Scheme , a total of 38 applications were received. After reviewing these applications, t

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like, compressors, copper tubes (plain and/or grooved control assemblies for IDU or ODU, Heat Exchangers and BLDC motors among others. Similarly, for LED Lights, LED Chip packaging, LED Drivers, LED Engines, LED Light Management Systems and Metallized films for capacitors etc. will be manufactured in India. The Union Cabinet had given approval to the Production-Linked Incentive (PLI) Scheme for White Goods (Air Conditioners and LED lights) to be implemented over FY 2021-22 to FY 2028-29 with an outlay of Rs 6,238 Crore on 7th April 2021. The Scheme was notified by DPIIT on 16.04.2021. The PLI Scheme on White Goods is designed to create a robust component ecosystem for Air Conditioners and LED Lights Industry in India and make India an integral part of the global supply chains. The Scheme extends an incentive of 6% to 4% on reducing basis on incremental sales for a period of five (5) years subsequent to the base year and one year of gestation period. Domestic Value Addition is expected

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Steel Service Center India Private Limited (Earlier Known As Sumikin Bussan Steel Services Centre India Pvt.Ltd) 1. Sheet Metal components 66.15 7 Clad Metal India Private Limited 1. Control Assemblies for IDU or ODU or Remotes 2. Valves Brass components 3. Heat exchangers 4. Sheet Metal components 50.03 8 Malhotra Electronics Private Limited 1. Control Assemblies for IDU or ODU or Remotes 2. Cross Flow Fan 3. Heat Exchangers 4. Sheet Metal components 5. Plastic Moulding components 6. Display Panels (LCD/LED) 50.00 9 MIRC Electronics Limited 1. Control Assemblies for IDU or ODU or Remotes 2. Motors 3. Cross Flow Fan (CFF) 4. Valves Brass components 5. Heat exchangers 6. Sheet Metal components 7. Plastic Moulding components 8. Display Panels (LCD/LED) 51.50 10 Smile Electronics Limited 1. Control Assemblies for IDU or ODU or Remotes 2. Motors 3. Cross Flow Fan (CFF) 4. Valves Brass components 5. Heat exchangers 6. Sheet Metal components 7. Plastic Moulding components 8. Display Panels (

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Clad PCBs 5. LED Light Management System 6. LED Transformers 51.50 8 Hella India Automotive Private Limited 1. LED Drivers 17.84 Total 239.82 Existing Applicants moving to higher category (Rs. in cr.) S.No Applicant Name Eligible Products Gestation period (FY) Existing Committed Investment Revised Committed Investment Addl. Commitment Investment AC(Components) 1 Hindalco Industries Limited 1. Aluminum Stock for Foils or Fins for heat exchangers 2. Copper Tube (plain and/or grooved) 2021-23 539 899 360.00 2 LG Electronics India Private Limited 1. Compressor 2. Heat exchangers 3 Control Assemblies for IDU or ODU or Remotes 4 Motors 5 Plastic Moulding Components 2021-23 300 733 433.00 3 Mettube Copper India Pvt Ltd Copper Tube (plain and/or grooved) 2021-23 300.21 328.08 27.87 4 Blue Star Climatech Limited 1. Control Assemblies for IDU or ODU or Remotes , 2. Heat exchangers 3.Sheet Metal components 2021-23 156 336 180.00 5 Voltas Limited 1. Control Assemblies for IDU or ODU or Remotes 2.

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l Assemblies for IDU or ODU or Remotes 2. Motors 50.20 5 Star Eltech Manufacturing India Private Ltd 1.Cross Flow Fan (CFF) 2.Control Assemblies for IDU or ODU or Remotes 3.Heat exchangers 4.Sheet Metal components 5.Plastic Moulding components 67.40 Total 369.32 (ii) LED Lights (Gestation Period FY 2021-23) S.no Applicant Name Eligible Products Committed Investment (Rs. in cr.) 1 Calcom Kadapa Private Limited 1. LED Driver 2. LED Modules 3. LED Engines 4. Mechanicals- Housing 5. LED Light Management System 6. Heat Sinks 7.Diffusers 101 2 Sheetal Electrotech Private Limited 1. LED Driver 2. LED Modules 3. Mechanical Housing 4. Diffusers 5. LED Light Management System 10.20 3 Prakash Elcomp Manufacturing Pvt Ltd 1. Resistors 2. Wire Wound Inductors 3.Capacitors 4. Printed Circuit Boards (PCB) including Metal Clad PCBs 5. LED Chips 22 4 Larica Led Products Private Limited 1.Printed Circuit Boards (PCB) including Metal Clad PCBs 2.Mechanicals- Housing 3.LED Drivers 10 5 Silver Consumer Ele

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Case-Laws – GST – Highlights – Petitioner, a central public sector undertaking, challenged rejection of its appeal by appellate authority solely on grounds of delay without considering merits. HC quashed appellate order as perverse for mechanically dismissing condonation application without adequately considering petitioner's lack of knowledge about impugned order's issuance. Relying on precedent, HC condoned delay, exercising power u/s 107(4) of the Act, rendering remand to appellate authority unnecessary. 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 HC held that the appellant's case has to be accepted and necessary rectification has to be done. Due to discrepancies in data migration from the Legacy ACES Application to the new Integrated ACES-GST Application, the appellant's tax liabilities were affected as PART B of the revised return was not duly populated. The impugned order was set aside with a direction to the authorities to make the necessary correction in the Portal and issue a revised order accepting the appellant's stand. The appeal 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 – ITC disallowed for late filing u/s 16(4) of GST Acts. HC set aside order, directing reassessment considering amendment. Petitioner allowed to file objections within 3 weeks and avail personal hearing. For other issues, impugned order upheld. 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 HC allowed the petition and extended the benefit granted in Suguna Cutpiece Center case to the petitioner. The petitioner's registration cancellation u/s 29(2) of CGST Act for non-filing statutory returns for six months was set aside. The petitioner was directed to file pending returns, pay defaulted tax with interest and belated filing fees within 45 days. – TMI Updates – Highlights, quick notes, marquee, annotation, news, alerts Tax Management India – taxmanagementindia – taxmanagement – taxmanagementindia.com – TMI – TaxTMI – TMITax

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GST Dated:- 18-1-2025 PTI – News – Delhi court grants bail to eight in GST refund fraud case Dated:- 18-1-2025 – New Delhi, Jan 18 (PTI) A Delhi court has granted bail to eight persons in a case of alleged fraudulent GST refunds, saying they are poor persons who are languishing in custody. According to prosecution, the scam involved around 500 non-existent firms claiming bogus GST refunds worth approximately Rs 54 crore between July 1, 2017 and Aug 26, 2021. Special Judge Ashish Aggarwal granted the relief to Imran, Akram Ali, Hanzala, Intezar, Ankur Saluja, Parmod Kumar, Manoj Goyal and Manoj Kumar in an order passed on January 14. The judge noted that there was sufficient indication about involvement of other accused persons, including

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News – GST – Highlights – The Arunachal Pradesh cabinet granted SGST reimbursement concessions to the 700-MW Tato II HEP and 1,720-MW Kamala HEP to enhance financial viability. These joint venture projects with CPSUs, entailing Rs. 35,000 crore investment, will generate Rs. 470 crore annual free power and Rs. 79 crore local area development funds. The cabinet approved a policy for restoring terminated large hydropower projects, recommended a 100-seat medical college and 420-bed hospital in Namsai under PPP mode, upgraded 20 junior engineer posts, created 36 posts in the land management department, and approved 32 teaching/non-teaching posts for the Tezu engineering college. – 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 HC held that the regulatory fees collected by the Central Electricity Regulatory Commission (CERC) and Delhi Electricity Regulatory Commission (DERC) are not subject to GST. The regulatory functions discharged by these Commissions do not constitute 'supply' under the CGST Act as they are neither supply of goods nor services. Their role is quasi-judicial, regulating and administering electricity distribution, which is a natural resource vesting in the State. The fees received cannot be considered 'consideration' in the course of furtherance of 'business' u/ss 2(17) and 7 of the CGST Act. The regulatory and adjudicatory functions are not distinct under the Electricity 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 – The HC held that the petitioner is entitled to reimbursement of the additional GST amount and interest on delayed payments. The writ petition was maintainable despite the presence of an arbitration clause, relying on the Division Bench's order in M/S APEX STRUCTURE PVT. LTD. case, wherein the respondent was directed to pay the difference of GST amount with interest within a specified period, failing which interest would accrue. – 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 HC set aside the non-speaking order of the respondent and remitted the matter back for fresh consideration of the demand in the show cause notice and the petitioner's reply. The respondent failed to consider the petitioner's reconciliation report which showed excess credit of Rs. 1,40,684/- after adjusting IGST, CGST and SGST, violating principles of natural justice. The impugned order did not provide reasons for rejecting the petitioner's explanation. The 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 – The HC held that while writ petitions under Article 226 are ordinarily not maintainable if statutory remedy is available, exceptions exist for violation of natural justice principles. Failure to grant personal hearing to the petitioner before cancellation of CGST registration violated Section 75(4) of the GST Act and natural justice. Consequently, the impugned order cancelling petitioner's registration was set aside by the HC. – 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 – Seizure of documents, books, laptops, CPUs, mobile phones permissible u/s 67(2) CGST Act but must be returned within 30 days of issuing notice as per Section 67(3) unless required for proceedings. HC directed Commissioner to provide copies of seized data to petitioners and examine providing additional hard disks for data copy. Matter listed for further 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 – HC held Section 6(1) CGST Act provides inherent cross-empowerment of State/UT GST officers as proper officers under CGST Act, without need for notification unless conditions imposed. Statutory mandate presently unqualified, subject to Government specifying conditions on Council's recommendation through notification. – 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 – Procedural irregularities without fraudulent intent do not warrant harsh penalties u/s 129 of GST enactments. HC quashed impugned order due to procedural nature of irregularities and absence of fraudulent intent. Petitioner's failure to register additional place of business and generation of E-way bill and invoices after detention considered technical and venial breach. Unless variance between invoice, E-way bill quantities and actual seizure, penalty u/s 129(3) of CGST Act harsh under facts. – TMI Updates – Highlights, quick notes, marquee, annotation, news, alerts Tax Management India – taxmanagementindia – taxmanagement – taxmanagementindia.com – TMI – TaxTMI – TMITax

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