Goods and Services Tax

Case-Laws – GST – Highlights – Bail was procured through misrepresentation and suppression of material facts by the applicant, who failed to disclose criminal history and prior conviction in a similar case. Despite objections raised in the first bail application, the applicant withdrew it and filed a second application without disclosing the material facts. The court held that economic offenses are serious, and the sessions judge rightly canceled the bail and examined the merits of the case due to the seriousness of allegations. The applicant's conduct of seeking regular bail without disclosing material facts justified cancellation of bail. The high court dismissed the application u/s 482 of CrPC, finding no merit in the arguments against cancellation of bail. – 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 assessment orders for Assessment Years 2017-2018 and 2020-2021. Court set aside impugned orders, remitting cases to respondent for fresh orders on merits. Petitioner directed to pay 25% of disputed tax from Electronic Cash Ledger and respond to Show Cause Notices within 30 days for respective Assessment Years. Impugned orders treated as addenda to Show Cause Notices. 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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Circulars – GST – Highlights – Comprehensive guidelines issued for second special All-India drive against fake GST registrations from 16th August to 15th October 2024. Suspicious GSTINs identified through data analytics by GSTN/DGARM to be shared with tax authorities for verification. Non-existent GSTINs to be suspended/cancelled, with input tax credit blocked and recovered. Nodal officers appointed for inter-jurisdictional coordination through GSTN's 'Initiate Enquiry' module. Weekly reporting mechanism established for monitoring progress. Tax evasion detected to be quantified, with recoveries and arrests made. Unique modus operandi to be compiled for sharing across tax administrations. Feedback on outcome against each GSTIN shared by GSTN to be provided after drive's conclusion. – 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 the seizure order and allowed the petition, holding that once the E-way bill was produced before the seizure order could be passed, it could not be said that any contravention of the Act's provisions had occurred. The court observed that although the goods were initially detained due to the absence of an E-way bill, the petitioner subsequently produced the E-way bill before the seizure order was issued. The authorities had the power to survey the petitioner's business premises to verify the transaction's correctness but chose not to exercise it. The court distinguished the case from the precedent cited, where goods were seized due to a complete lack of accompanying documents. – 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 – Assessment orders quashed due to petitioner's illness, remanded for fresh orders. Petitioner directed to file consolidated reply within 30 days. Cases remitted to respondent to pass fresh orders on merits and in accordance with law after considering petitioner's reply and medical condition. Petitioner had not replied to show cause notices, citing kidney ailment treatment. Impugned orders treated as addendum to show cause notices. – 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 summary is as follows: The show cause notice for cancellation of registration u/s 29(2)(e) was invalid as it lacked specific factual details and reasons for alleging fraud, misstatement, or suppression of facts. The subsequent orders cancelling registration were quashed due to the defective notice violating principles of natural justice. While the registration was restored, the petitioner cannot utilize any remaining unutilized Input Tax Credit until fresh show cause proceedings conclude. – 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 – Challenge to suspension order of State GST officer for issuing refund to a fake exporter without proper verification. Petitioner contests suspension citing lack of strong prima facie evidence and non-application of mind by respondents. High Court notes quasi-judicial nature of refund process, requiring timely processing and balancing exchequer's interest. Compliance with Act and circular sufficient for refund order; suspension warranted only for serious misconduct. Court finds insufficient evidence of moral turpitude or grave misconduct, quashes suspension order. 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 High Court addressed a challenge to an assessment order due to discrepancies in turnover between GSTR-7 and GSTR-3B. The petitioner failed to respond to notices preceding the order. The court noted that had the petitioner responded, the outcome may have been different. The petitioner is granted a fresh chance to present their case. The impugned order is set aside, and the case is remitted back for a new order, with the condition that the petitioner deposits 10% of disputed tax within 30 days. The petition is 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 case involves a challenge to Assessment Orders for multiple Assessment Years u/s 74 of the respective GST enactments, 2017. The petitioner failed to provide proper information to the department, leading to shortcomings in the assessment process. The Court noted that certain charges collected by the petitioner may be taxable under GST laws. The Court directed the petitioner to cooperate with the respondent, quashed the Assessment Orders, and remitted the case for fresh assessment. The petitioner must respond to Show Cause Notices and provide necessary documents. The High Court disposed of the Writ Petitions. – 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 involves the transfer of title of goods from a Free Trade Warehousing Zone (FTWZ) unit to customers in the Domestic Tariff Area (DTA), or multiple transfers within the FTWZ followed by removal from the FTWZ unit. It examines whether this constitutes a bonded warehouse transaction under the CGST Act. The ruling confirms that such transfers fall under para 8(a) of Schedule III of the CGST Act. Additionally, it addresses the levy of Integrated Goods and Service Tax (IGST) on goods stored in the FTWZ unit and supplied to DTA customers, and the reversal of input tax credit of common inputs/capital goods required under the recent amendment to Section 17(3) of the CGST Act. The ruling highlights the significance of FTWZ units as customs bonded warehouses within Special Economic Zones (SEZs) and clarifies the tax implications for such transactions. – 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 maintainability hinges on alternative remedy availability. Excess tax refund due to ignorance and legal ambiguity. Supreme Court ruled that purely legal controversies without factual disputes should be decided by High Court, not dismissed for alternative remedy availability. However, where statute provides grievance redressal mechanism, writ petition should not be entertained. Appellant company did not dispute authority's jurisdiction or lack of CGST Act's redressal mechanism. High Court's discretion in refusing writ petitions due to efficacious alternate remedy was upheld, dismissing appeals. – 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 – Contradictory findings by Appellate Authority regarding classification of bio-fertilizers produced by petitioner and another manufacturer under different chapters leading to disparate GST rates of 12% and 5% respectively. Impugned order classifying petitioner's bio-fertilizers under Chapter 3002 quashed and matter remanded to Appellate Authority for fresh consideration after providing opportunity of hearing to petitioner due to anomaly in classification. – 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 – Validity of SCN issued u/s 73 of CGST Act challenged – recovery of demand of differential tax for tax period from 1-7-2017 to 31-12-2018 – transactions related to licensing services for right to use minerals including exploration and evaluation under Service Code 9973 37 – retrospective operation of CBIC circular dated 6-10-2021 – High Court issued notice to Opposite Parties – directed no coercive action for recovery of demand till next date of hearing – matter listed along with related writ 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 – Rectification of certain errors apparent on face of order denied in AAR ruling. AR contended AAR should have ruled on all queries. Held: No error apparent on record noticed, so no rectification required. As Customs Act provisions not attracted, differential IGST paid by applicant ineligible for ITC u/s of CGST Act, 2017. No apparent error or mistake on record as alleged by applicant, so application for advance ruling liable for rejection u/s 98(2) of CGST/TNGST Acts, 2017. – 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 – Plastic articles rope handle, vent plug, and split top/bottom support, used as parts/accessories for lead acid batteries, are classifiable under heading 8507 (electric accumulators) and not under headings 3901 to 3914 or 3926 (plastic articles). Though made of plastic, they are excluded from Chapter 39 by Note 2(s). They attract 14% CGST and SGST under Sl. No. 139 of Schedule IV of relevant notifications, as parts of electric accumulators under sub-heading 8507 90, covered under heading 8507. – 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 – Summary order quashed due to absence of underlying order – Annexure-A summary dated 13.08.2019 in Form GST DRC-07 set aside as no order passed under Act – consequent recovery action including attachment of bank accounts quashed – respondents directed to lift attachment of petitioner's bank accounts forthwith – 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 – Extension of time for issuance of order u/s 73(9) for recovery of unpaid/short-paid tax or wrongly availed/utilized input tax credit. State GST authorities contend affidavits required. Jurisdictional issue raised, writ petition to be heard. Affidavit-in-opposition within 4 weeks, reply within 3 weeks thereafter. Prima facie case made out, interim stay on impugned demand order till December 2024 or further order. Liberty to mention after expiry of period for exchange of affidavits. – 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 – Appeal rejected on limitation grounds but petitioners' explanation ignored; appellate authority directed to note explanation per HC precedent, condone delay, hear appeal on merits expeditiously within 8 weeks; appellate order set aside. – 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 proper officer's order cancelling GST registration ab initio (from the initial date) is bereft of reasons and does not spell out grounds, violating principles of natural justice. The show cause notice (SCN) merely reproduces statutory provision u/s 29(2)(e) of CGST Act regarding cancellation on grounds of fraud, wilful misstatement, or suppression of facts, without disclosing nature of alleged fraud, misstatement, or suppressed facts. SCN fails to meet requisite standards, not enabling meaningful response. Cancellation order also lacks reasons or grounds. HC directs cancellation order to take effect from SCN date (28.06.2023), not retrospectively from 29.12.2022. 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 – Exemption of Central Tax for electricity services under Serial no. 25 of notification dated 28th June, 2017 – respondent invoked Section 74 of CGST Act, 2017 based on circular dated 1st March, 2018 – petitioner, a distribution licensee under Electricity Act, 2003, entitled to exemption notification – clarification in circular cannot be treated as clarification of exemption notification u/s 11(1) – circular declared ultra vires to Section 8 and notification no. 12/2017-CT (R) – petitioner made prima facie case, raised jurisdictional issue, entitled to interim protection – directed to participate in proceedings, no final order without court's leave – liberty to mention after affidavits exchange period. – 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 – Violation of principles of natural justice alleged due to notice being served under incorrect tab on online portal. Court found notice was uploaded, though under “additional notices” tab instead of “view notices and orders” tab. Controversy regarding adequacy of service by uploading under “additional notices” tab not decided. Petitioner directed to avail alternate remedy of appeal before appellate authority within 30 days, as appeal available against order. 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 – Petitioner sought issuance of Writ of Mandamus to withdraw respondent's orders freezing company's accounts. Court directed respondent to dispose petitioner's representation within two weeks after pre-deposit of Rs. 4,43,078/- and filing statutory appeal before Appellate Authority, considering merits and law. 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 impugned show cause notice (SCN) did not contain any specific allegations against the petitioner regarding issuance of invoices without supply of goods, merely referring to Rule 21(g) and stating violation of Rule 86B. The SCN lacked details of invoices allegedly not covered by supply of goods, violating principles of natural justice as the noticee could not respond to vague allegations. The impugned order cancelling GST registration with retrospective effect went beyond the scope of the SCN. The High Court set aside the cancellation order and SCN, directing restoration of the petitioner's GST registration forthwith, as the cryptic allegations could not be the basis for cancellation. – 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 ab initio with retrospective effect from 01.07.2017 violated principles of natural justice as Show Cause Notice (SCN) did not specify any reason or provision allegedly violated by petitioner. SCN failed to propose cancellation with retrospective effect. SCN bereft of reasons, failing to meet standards required for a show cause notice to enable meaningful response. Order dated 16.06.2020 cancelling petitioner's GST registration lacked reasons, merely referring to SCN and non-existent reply. Order directed to take effect from SCN date 29.05.2020, not ab initio. – 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 – Violation of principles of natural justice occurred as the impugned SCN was uploaded under 'View Additional Notices & Orders' category, claimed to be inaccessible by petitioner. Court held that issue was covered by earlier decisions rejecting contention that uploading notices under 'Additional Notices' constituted sufficient service u/s 169 of CGST Act, 2017. GST Authorities redesigned portal to ensure 'View Notices' and 'View Additional Notices' tabs are adjacent. Impugned SCN was issued before portal redesign. Petition allowed, impugned order set aside, matter remanded for fresh adjudication of SCN. – TMI Updates – Highlights, quick notes, marquee, annotation, news, alerts Tax Management India – taxmanagementindia – taxmanagement – taxmanagementindia.com – TMI – TaxTMI – TMITax

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