Goods and Services Tax

Natural Justice Breach: Credit Disallowed Without Hearing; Court Suspends Action on Electronic Credit Ledger.
Case-Laws
GST
HC held that the order disallowing credit passed by Deputy Commissioner without hearing petitioner violated principles of natural justice. The notice was issued by Joint Commissioner who lacked competence. Deputy Commissioner, though competent authority, didn't give notice or hear petitioner before passing impugned order. HC kept respondents' action of blocking ele

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Firm Granted Fresh Refund Application Due to Inverted Duty Structure After Retrospective Amendment to CGST Rules 2017.
Case-Laws
GST
Refund due to inverted rate of duty structure: HC disposed of the petition allowing the petitioner-Firm to file a fresh refund application for services covered by the retrospective amendment to Rule 89(5) of CGST Rules 2017. The respondents were directed to decide the application strictly per the amended rule and applicable laws, requiring them to operate

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Retailer Must Reassess Prices After GST Cut; Court Orders New Investigation into Consumer Benefit Compliance.
Case-Laws
GST
Respondent failed to reduce, re-fix and display MRPS commensurately after GST rate reduction on impacted SKUs w.e.f. 15.11.2017 and convey the same to dealers, thereby not passing on tax reduction benefit to consumers in violation of Section 171 of GST Act as per Delhi HC judgment [2024 (1) TMI 1248]. DGAP report stating no violation cannot be accepted. DGAP direct

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Appeal Dismissed: “Aorom Herbal Smokes” Classified as Tobacco Substitute, Not Medicinal Product, Subject to GST.
Case-Laws
GST
AAAR dismissed appellant's appeal. Product 'Aorom Herbal Smokes' classifiable under HSN 24029010 (tobacco substitutes), not HSN 3004 (medicinal products). Appellant failed to substantiate product as 'medicinal cigarettes' under Drugs and Cosmetics Act, 1940 by not providing authoritative Ayurvedic text used for manufacturing. Appellant's own brochure claimed pro

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GST Time of Supply for Construction Services: Mobilization Advances Count as Payment, Appeal Rejected.
Case-Laws
GST
The AAAR held that for construction services, the time of supply for GST purposes is the date of receipt of mobilization advance, being the earliest of the date of issue of invoice or receipt of payment. The mobilization advance constitutes payment and consideration, despite appellant's contention that it is merely a transaction in money. The notification No. 66/2017-CT (

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GST Cancellation Request Denied: Ownership Document Sufficient, Consent Letter Not Required, Petition Dismissed.
Case-Laws
GST
Co-owner's application for cancellation of GST registration gran

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Corporation's Penalties for Guideline Breaches Not Subject to GST, Court Rules; No Supply of Goods/Services Found.
Case-Laws
GST
HC held that respondent Corporation cannot demand GST from petitioners on penalty imposed for non-attendance of leakage complaint as there was no “supply of goods/services” by Corporation to petitioners. To demand GST, it must be proved that there is “supply of goods/services” by person collecting tax to person from whom tax is recovered. Here, no service was

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Court Upholds GST Limitation Extensions Due to COVID-19; Validates Broad Interpretation of “Actions” for Past Cases.
Case-Laws
GST
The HC upheld the validity of notifications extending the limitation period u/s 73(10) of the GST Act through Section 168A, which allows the government to extend time limits due to force majeure like COVID-19. The words “in respect of actions” were interpreted broadly to cover previous incomplete actions during the pandemic. The HC held that the Council's re

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Telecom Provider Wins Case Against Unconstitutional Entry Tax on Operations Due to Invalid Notice Based on Arbitral Award.
Case-Laws
GST
Petitioner challenged SCN as ultra vires Sections 66B and 65B(44) of Finance Act, 1994 and violative of Articles 14, 265 and 300A of Constitution. HC held SCN based on arbitral award in petitioner's favor against DMRC, which was partly set aside by Division Bench, no longer survived. Petition allowed.
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Court Orders Immediate Refund Disbursement with Interest Due to Delay; Respondents Must Issue Payment Advice Promptly.
Case-Laws
GST
HC directed respondents to disburse remaining sanctioned refund amount along with applicable interest for delayed disbursement. Respondents cannot retain refunded amount per refund sanction order. Respondent directed to issue payment advice to petitioner forthwith. Petition disposed.
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Court Upholds Time Limit on Input Tax Credit Under GST Act; Allows Petitioners to Seek Further Remedies Elsewhere.
Case-Laws
GST
The HC disposed of the writ applications challenging the constitutional validity of section 16(4) of the Central Goods and Services Tax Act, 2017 imposing time limit for availing Input Tax Credit, and the amendment to Rule 61(5) related to GSTR-3B. The Court noted the recommendations of the 53rd GST Council Meeting addressing the petitioners' claims, giving du

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GST Evasion Penalty Upheld; Appeal Restored for Technical Issues Allowing Reconsideration on Merits.
Case-Laws
GST
Petitioner's appeal against penalty imposed for detention u/s 129 of Bihar GST Act, 2017 and finding of attempted tax evasion dismissed. HC set aside Annexure-9 on technical grounds; appeal restored before first Appellate Authority for consideration on merits after hearing petitioner. Petitioner paid entire penalty; despite Annexure-9/A not showing disputed amount, appeal t

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Arbitrary GST Registration Cancellation Without Proper Notice Violates Natural Justice, HC Rules.
Case-Laws
GST
The HC held that the final order cancelling GST registration failed to record reasons supporting allegations in the show cause notice, violating natural justice principles. The authorities arbitrarily cancelled registration retrospectively without indicating such intent in the notice. Consequently, the impugned cancellation order could not be sustained, and the petition was al

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Unreasoned refusal of adjournment for contentious hearings quashed by HC; procedural fairness upheld.
Case-Laws
GST
HC quashed impugned order dated 16 August 2024 passed by Assistant Commissioner u/s 73(9) of Central Goods and Services Tax Act, 2017. HC held Assistant Commissioner took narrow, pedantic view in refusing adjournment without assigning reasons, despite contestation regarding petitioner's participation in hearings. Petition allowed.
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Petition challenging adjudication order dismissed; statutory appeal remedy available to examine natural justice claim.
Case-Laws
GST
The HC dismissed the petition challenging the adjudication order passed u/s 73(9) of the MGST/CGST/IGST Acts, holding that an efficacious statutory appeal remedy was available. The appellate authority could examine the petitioner's claim of violation of natural justice principles in passing the adjudication order.
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Unfair Order Blocking Electronic Credit Ledger Quashed for Lack of Valid Reasons and Procedural Lapses.
Case-Laws
GST
The HC quashed the order blocking the petitioner's Electronic Credit Ledger u/r 86A of CGST Rules, 2017 due to the absence of a pre-decisional hearing and lack of independent or cogent reasons to believe. The order impermissibly relied on borrowed satisfaction from another officer's report, contrary to the HC's decision in K-9-Enterprises's case. The absence of valid mat

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Interim relief granted against final order by tax authorities over alleged invoice suppression.
Case-Laws
GST
Petitioner challenged jurisdiction u/s 74(5) of CGST Act for alleged suppression regarding invoices raised on NHAI. HC held petitioner made prima facie case for interim relief. Respondents can proceed with show-cause notice hearing but no final order without HC permission during petition pendency. Matter listed on 04.09.2024.
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Cancellation of GST registration upheld for non-compliance on change of principal place of business, but opportunity granted for fresh application.
Case-Laws
GST
Appellant's GST registration cancellation upheld for non-compliance with Section 28(1) of WBGST Act, 2017 and Rule 19(1) of WBGST Rules, 2017 regarding procedure for change of principal place of business. However, HC granted opportunity to file appropriate application with supportive documents before Assistant Commissioner, who

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Congress alleges slowdown in GST collections, asks govt to focus on complexities of economy
GST
Dated:- 3-1-2025
PTI
New Delhi, Jan 3 (PTI) The Congress on Friday expressed concern over the “disappointing” latest GST numbers and urged the government to focus on the complexities of the economy instead of imposing tax on popcorn.
In a statement on the latest GST numbers, Congress general secretary in-charge communications Jairam Ramesh claimed India was locked in a “pernicious cycle of low consumption – low investment – low growth – low wages”.
He said, “The litany of demoralising news on the economic front from the deceleration in growth to the poor GST revenue collections demands that the government apparatus shift its focus

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Improper service of show cause notices & order violates natural justice; 25% tax deposit required within 2 weeks.
Case-Laws
GST
Principles of natural justice violated as show cause notices and impugned order not served properly. Petitioner to deposit 25% disputed tax within two weeks. Impugned order treated as show cause notice, petitioner to submit objections with supporting documents within four weeks. HC disposed petition.
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Bombay HC sets aside tax order, grants petitioner time to pay Rs. 1 crore and file reply; orders tax authority to reassess after fair hearing.
Case-Laws
GST
Impugned order set aside by HC. Petitioner to remit Rs.1 crore within two weeks, submit reply within two weeks thereafter treating impugned order as show cause notice. Respondent authority to complete assessment in accordance with law after providing reasonable opportunity of hearing to petitioner.
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Petitioner's reply to be considered before initiating tax recovery proceedings under GST Act.
Case-Laws
GST
Petitioner challenged order u/s 73 of Odisha Goods and Services Tax Act, 2017. HC held Section 61(2) requires consideration of explanation furnished. Section 61(3) states if no satisfactory explanation is given, proper officer may initiate action u/s 73. Initiation of proceeding u/s 73 was without jurisdiction. Impugned order quashed. Petitioner's reply dated 29.07.2021 to be deal

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Chewing tobacco products classified under higher GST slab, manufacturers' plea rejected.
Case-Laws
GST
The HC held that the petitioners' chewing tobacco products are to be classified under Heading 2403 99 10 of the Customs Tariff Act, 1975, attracting a higher compensation cess of 160% under the GST (Compensation to States) Act, 2017. The petitioners cannot change the classification merely for rate benefit. The Advance Rulings classifying the products under 2403 99 10 are binding. The f

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Timelines for Impounding Vehicles Violated, Proceedings Set Aside and Vehicle Release Ordered.
Case-Laws
GST
Petitioner challenged proceedings u/s 129(3) for failure to comply with mandatory timelines. Relying on TVL. UDHAYAN STEELS PRIVATE LIMITED, HC held impugned proceedings contravened Section 129 timelines, set aside proceedings, and directed vehicle bearing Registration No. TN-29-AB-7887 be released forthwith. Petition disposed.
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Petitioner allowed personal hearing on penalty for unloading goods without proper documentation chain.
Case-Laws
GST
The HC allowed the petitioner's request for a personal hearing on 18.12.2024 at 11:00 am regarding the levy of penalty u/s 129(1)A of the CGST Act for unloading goods at an unauthorized location without proper documentation. The HC directed fresh orders to be passed after considering the petitioner's submissions. The petitioner can request provisional release of goods bef

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