Goods and Services Tax

Validity of parallel proceedings by State & Central Authorities under GST Laws.
Case-Laws
GST
Proceedings initiated by State Authority u/s 74 are valid even if Central Authority has already initiated proceedings. The term 'initiation of proceedings' refers to issuance of notice under CGST/SGST Acts, not issuance of summons u/s 70 for inquiry. The Patna High Court's judgment in Baibhaw Construction did not consider this aspect. Therefore, the petitions lack merit and are dismissed.
T

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =

Airport duty-free shops can claim GST refunds on services from operators as goods sale is zero-rated.
Case-Laws
GST
Duty Free Shops at international airports are entitled to claim Input Tax Credit and refund of GST paid on services provided by airport operators, as the sale of goods at these shops is a zero-rated supply. The levy of GST on such services is a revenue-neutral exercise. Petitioners directed to reimburse Rs. 6,11,084 to airport operators within four weeks, along with 8% int

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =

Truck detained over incorrect interest calculation; Court orders release on bank guarantee deposit.
Case-Laws
GST
The court held that the quantification of interest in the detention order dated 20.07.2024 was contrary to the statutory mandate of Sub-Section 3 of Section 129. The petitioner agreed to deposit a bank guarantee of the original amount of Rs. 8,40,924/-. Subject to depositing the bank guarantee, the petitioner's truck and material would be released after obtaining photographs

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =

Works contract service for laying sewage systems attracts 18% GST for local authority.
Case-Laws
GST
The applicant provides works contract services involving supply of goods and services for an immovable property to Bikaner Nagar Nigam, a local authority. Entry 3B of Notification No. 13/2017-CT (Rate) dated 28.06.2017 is not applicable as entries 3 and 3A cover services provided to local authorities. The applicant is liable to pay 18% GST (CGST 9% and SGST 9%) for providing services lik

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =

Restoring GST number, filing returns, tax payment in 7 days to avoid order lapse. High Court grants relief in delaying appeal filing.
Case-Laws
GST
The High Court directed the petitioner to approach the Competent Authority for GST registration within seven days. The Authority shall restore the petitioner's GST number upon completing requisite formalities. The petitioner must file returns, deposit taxes, penalty, and interest within seven days. Failure to comply will render the order ino

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =

Court Grants Injunction in Tax Case; Printing Educational Books Ruled as Supply of Goods by State Authorities.
Case-Laws
GST
The court observed that the show cause notice did not specifically allege wrongful availment or short payment of tax due to fraud, willful misstatement, or suppression of facts to evade tax. Advance ruling authorities in Karnataka, West Bengal, and Chhattisgarh have held that printing books by publishers, where content is provided by educational boards like NCERT,

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =

Credit Ledger Block Nullified for Lack of Hearing and Natural Justice Violation; Case Remanded for Fresh Adjudication.
Case-Laws
GST
The High Court set aside the adjudication order blocking the Petitioner's credit ledger due to lack of personal hearing and violation of principles of natural justice. The adjudicating officer failed to provide reasons for sustaining the demand or interest, merely stating conclusions without addressing the Petitioner's detailed response to the show cause n

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =

Authorities provisionally attached bank account over alleged ITC fraud. Court allows revocation plea within a week.
Case-Laws
GST
The High Court addressed the issue of provisional attachment of a bank account by the authorities u/s 83 of the Central Goods and Services Tax Act, 2017, alleging wrongful availment of Input Tax Credit. Considering the nature of allegations against the petitioner, the Court granted liberty to move for lifting the provisional attachment as per Rule 159. The pe

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =

Wrongly availed ITC not utilized, interest & penalty quashed by court under GST Act.
Case-Laws
GST
The petitioner challenged the levy of interest and penalty for wrongly availing and utilizing Input Tax Credit (ITC). The court held that unless ITC is wrongfully availed and utilized, interest cannot be levied u/s 50(3) of the GST Act, as amended retrospectively by the Finance Act 2022. The petitioner had debited its credit ledger for the wrongly availed ITC but did not utilize it. The co

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =

Tax liability for 2018-19 upheld; excuses rejected, appeals bypassed. Ignorance no defense for private firm.
Case-Laws
GST
Writ petition challenging order u/s 73 of WBGST/CGST Act for tax period April 2018 to March 2019 dismissed. Court found petitioner's contention of consultant's unavailability unconvincing for not responding to pre-show cause and show cause notices. As a private limited company, petitioner cannot feign ignorance. Petitioner failed to avail statutory remedy of appeal

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =

Cancellation of GST registration unlawful due to lack of notice & reasons, violating natural justice principles.
Case-Laws
GST
Registration of petitioner cancelled u/s 29(2)(a) of UP GST Act for willful misstatement and suppression of facts. Authorities failed to provide notice and opportunity regarding adverse material used against petitioner, violating principles of natural justice. Section 29(2)(a)-(e) prescribes grounds for cancellation, but no violation found nor reasons recorded b

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =

Court Denies Refund of Input Tax Credit During VAT to GST Transition Due to Time Limitations and Compliance Requirements.
Case-Laws
GST
The High Court dismissed the petition seeking refund of Input Tax Credit (ITC) accrued under the Value Added Tax (VAT) regime upon transition to the Goods and Services Tax (GST) regime. The court held that Section 18(a) allows carrying forward ITC from the VAT regime to be availed as set-off under GST for inputs held in stock. However, Section 18(2) pro

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =

Proceedings against deceased person quashed, allowed against legal heirs if business closed.
Case-Laws
GST
The High Court quashed an order passed against a deceased person, holding it a nullity. Section 93 of the CGST/SGST Act permits continuance of proceedings against legal heirs of a deceased person if the business is discontinued, but does not authorize proceedings against the deceased. The Court allowed the revenue authorities to continue proceedings against the legal heirs of the d

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =

Valuation of service supply to state govt, tax rate, and goods % in composite supply under Notification 2/2018.
Case-Laws
GST
Dispute concerning value of supply of services by petitioner company to state government, rate of tax applicable, and components included in calculating percentage of goods value in composite supply under Notification 2/2018-Central Tax (Rate). Court granted interim protection to petitioner, allowing response to show cause within 30 days, considering prima facie

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =

Tax notice challenged, adjudication ordered on interest liability for delayed GST filing.
Case-Laws
GST
Writ petition challenging notice for failure to file GST returns on time and consequential recovery notice. Court held petitioner should have sought mandamus for adjudication on liability for interest u/s 50 of CGST/TNGST Act. Petition disposed directing respondents to pass fresh order on merits within three months, justifying interest payable when amounts credited to government's ele

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =

Tax authorities' orders quashed for violating natural justice over GST return mistake.
Case-Laws
GST
The High Court quashed the orders issued by the tax authorities after scrutiny of GST returns u/s 61, as the principles of natural justice were violated by not providing an opportunity of hearing. The petitioner inadvertently claimed input tax credit under the wrong column in GSTR-3B, which was clarified through a reply, but the authorities failed to consider it before passing the orders

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =

Two-wheeler seat GST dispute: Misclassification led to tax liability. Petitioner to forgo refund claim for Rs. 1.25 billion if notices split for AMNESTY scheme.
Case-Laws
GST
GST dispute involving misclassification of two-wheeler seats – petitioner challenged bunching of show cause notices for multiple assessment years – HC allowed splitting notices for separate years to avail proposed AMNESTY scheme – petitioner agreed not to claim refund of Rs. 1,24,74,14,950 deposited as tax liabilit

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =

Petitioner wins Rs. 32.29L VAT input tax refund sans application after Rs. 5.38Cr refund under old Act.
Case-Laws
GST
Transitional credit of input tax available under VAT Act sought. State contended refund application pursuant to Annexure-P/15 required. Court held refund of Rs. 5,38,20,214/- sanctioned payable to petitioner unrelated to input tax sought for transitional credit in GST period. Rs. 32,29,195/- withheld due to additional demand, would have been forfeited if input tax claim

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =

GST Registration Revocation Challenged Over Door Number Discrepancy – Court Revokes Cancellation Upon Satisfactory Explanation.
Case-Laws
GST
Petitioner challenged the rejection of application for revocation of cancellation of GST registration due to discrepancies in the door number of business premises. Court, satisfied with petitioner's explanation regarding door number discrepancy, revoked cancellation of GST registration. Impugned order dated 16.08.2024 and cancellation order dated

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =

Registration Cancelled, Remedy Bypassed – Amnesty Scheme Missed.
Case-Laws
GST
Cancellation of petitioner's registration occurred without availing appellate remedy or Amnesty Scheme. SCN not produced in writ petition, nor averment of non-receipt, violating principles of natural justice. Section 30 of GST Act allows application for revocation within thirty days. Government issued Amnesty Scheme Circular No. 3 of 2023 permitting restoration of cancelled registrations on payment of dues be

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =

Tax liability of Rs 38,361 upheld for availing fake input tax credit; Appeal remedy available.
Case-Laws
GST
Petitioner challenged ex-parte order demanding tax liability of Rs. 38,361/- including penalty and interest for wrongful availment of input tax credit on fake invoices. Court found no infirmity in impugned order passed after providing opportunity to petitioner. Petitioner has efficacious appeal remedy u/s 107, without exhausting which writ petition is not maintainable. Writ petit

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =

Bank account unfrozen, tax dispute reopened after lack of fair hearing.
Case-Laws
GST
Bank attachment order set aside due to lack of opportunity for personal hearing, violating natural justic

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =

GST authority's order quashed for violating natural justice; petitioner to get personal hearing.
Case-Laws
GST
The court held that the impugned order was passed in violation of principles of natural justice as no opportunity of personal hearing was provided to the petitioner prior to passing the order, contrary to Section 75(4) of the GST Act. The court directed the respondent authority to consider the petitioner's replies, issue a 14-day notice for personal hearing, and pass appropriat

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =

Unfair tax assessment order quashed for lack of notice; authorities to re-evaluate after fair hearing.
Case-Laws
GST
Assessment order quashed due to violation of principles of natural justice

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =

Writ Petition Allowed: Company Wins Against GST Demand on MD's Guarantees & Intra-Group Loans.
Case-Laws
GST
This case pertains to the liability of an appellant to pay Goods and Services Tax (GST) on a reverse charge basis for two specific services: supply of services by the Managing Director through personal guarantees on loans obtained by the company, and supply of services by extending loans from the petitioner-company to its subsidiary. The High Court held that Circular No. 204/16/2

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =