Goods and Services Tax

Court Overturns Tax Decision Due to Procedural Error; Case Sent Back for Reevaluation.
Case-Laws
GST
The High Court held that the appellate authority erred in enhancing the tax liability payable by the appellant/assessee in an appeal filed by the assessee without following the mandatory procedure u/s 107(11) of the Act. The assessing officer had quantified the tax liability at Rs.2,58,536.80, but imposed penalty on Rs.41,83,804.72. The appellate authority was required to consider the co

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Cancellation of GST registration without inquiry quashed; registration to be restored.
Case-Laws
GST
GST registration of petitioner cancelled by respondent for alleged violation of Rule 86B of CGST Rules, 2017 without providing details, particulars or conducting necessary enquiry. Impugned order deserves to be quashed and direction issued to reinstate/restore GST registration, reserving liberty for respondent to take necessary action in accordance with law. Dismissal of petitioner's app

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Procedural lapses in GST registration cancellation case. Opportunity of hearing & reasons denied. Appeals dismissed on limitation.
Case-Laws
GST
Order of cancellation of registration passed without providing opportunity of hearing or assigning reasons, appeals dismissed on limitation ground. Coordinate Bench held procedural aspects should be scrutinized diligently, unnecessary to give chance for complaint. Appellate Authority dismissed appeals, revisional power u/s 108 cannot be exercis

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GST Appellate Tribunal for Kerala must be set up within 4 months, as per High Court directive on Section 112 of CGST Act.
Case-Laws
GST
The High Court directed respondents to expeditiously establish the GST Appellate Tribunal in Kerala as per Section 112 of the CGST Act 2017. While noting steps were underway, it ordered completion of the entire selection process within four months. The Court declined to rectify Section 169 by replacing “or” with “and” to mandate service through minimum

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GST Dept's Show Cause Notice for Input Tax Credit Recovery Quashed for Lack of Jurisdiction and Proof of Fraud.
Case-Laws
GST
Show Cause Notice u/s 74 of CGST Act lacks jurisdiction as it fails to establish fraud, willful misstatement or suppression of facts by petitioner in availing Input Tax Credit. Proceedings dropped earlier u/s 73 cannot be reopened u/s 74 without fulfilling prerequisites. High Court maintains consistent view that writ petition against jurisdictionally deficient Sh

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Flawed order for lack of personal hearing & undue delay.
Case-Laws
GST
Petition maintainable – violation of Section 75(4) of UPGST Act – denial of opportunity of personal hearing – violation of principles of natural justice. Opportunity of personal hearing must be provided before assessment/adjudication order against assessee. Neither adjudicating authority issued notice for personal hearing nor granted opportunity to petitioner. Before adverse order in adjudication, personal hearing mu

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State Act Section 129(5) allows appeals despite payment; petitioners can challenge orders from 19.10.23 and 12.09.23.
Case-Laws
GST
The High Court held that Section 129(5) of the State Act, which stipulates that upon payment of the entire amount pursuant to a notice u/s 129(3), all proceedings related to that notice shall be deemed concluded, applies only when the entire amount stated in the show cause notice is paid. However, it does not preclude the right to file an appeal against the

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Faulty ITC Refund Order: GSTR Mismatch Ignored, Reconciliation Overlooked.
Case-Laws
GST
Remand order issued in case concerning refund of accumulated input tax credit (ITC) for zero-rated supply due to mismatch in ITC as per GSTR-2B and GSTR-3B. Adjudicating authority faulted for not examining reconciliation statement and passing refund order without sufficient discussion. Appellate authority also failed to address reconciliation issue as required u/s 107(11) of CGST Act. Matter remande

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Writ Petition Denied Due to Alternative Remedy Under Assam GST Act; Appeal Allowed Without Pre-Deposit Requirement.
Case-Laws
GST
The court held that the parameters for entertaining the writ petition were not satisfied, and the petitioners had an adequate, alternative, and efficacious remedy available u/s 107 of the Assam GST Act, 2017. The court was not inclined to entertain the writ petition challenging the impugned order dated 12.08.2024, as an alternative remedy was available. Howev

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Business can't face double jeopardy – GST authorities can't demand ITC reversal if DGGI already initiated proceedings on same issue.
Case-Laws
GST
The court held that the respondent authority cannot adjudicate a demand for reversal of input tax credit (ITC) on non-business transactions and exempt supplies, when the same issue is already subject to separate proceedings initiated by the Director General of GST Intelligence (DGGI). As the period covered under the impugned order overlaps wi

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Refund applications under GST Act to be processed within a month, else provide reasons & opportunity of hearing.
Case-Laws
GST
The High Court directed the respondents to process the petitioner's refund applications filed u/s 54 of the Central/Delhi Goods and Services Tax Act within one month. If the respondents intend to reject the applications, they must provide reasons and afford the petitioner an opportunity to be heard before passing an order. The petition was disposed of based on t

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Restoration of GST Returns data on Portal
GST
Dated:- 30-9-2024

Please refer to the advisory issued on 24th September, 2024 regarding the archival of return data from the Common Portal after seven years. This data was archived in line with data archival policy. Data archival process was implemented on a monthly basis. Consequently, the return data for July, 2017 and August, 2017 was archived on 01st August and on 01st September respectively.
However, in view of the requests receiv

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Advisory for Biometric-Based Aadhaar Authentication and Document Verification for GST Registration Applicants of Odisha
GST
Dated:- 30-9-2024

Dear Taxpayers,
This is to inform taxpayers about recent developments concerning the application process for GST registration. It is advised to keep the following key points in mind during the registration process.
1. Rule 8 of the CGST Rules, 2017 has been amended to provide that an applicant can be identified on the common portal, based on data analysis and risk parameters for Biometric-based Aadhaar Authentication and taking a photograph of the applicant along with the verification of the original copy of the documents uploaded with the application.
2. The above-said functionality

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ion as per the existing process.
5. However, if the applicant receives the link as mentioned in point 3(b), she/he will be required to book the appointment to visit the designated GSK, using the link provided in the e-mail.
6. The feature of booking an appointment to visit a designated GSK is now available for the applicants of Odisha.
7. After booking the appointment, the applicant gets the confirmation of appointment through e-mail (the appointment confirmation e-mail), she/he will be able to visit the designated GSK as per the chosen schedule.
8. At the time of the visit of GSK, the applicant is required to carry the following details/documents
(a) a copy (hard/soft) of the appointment confirmation e-mail
(b) the details of juris

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Finance Act provisions enforced; tax & duty changes effective Nov 1, 2024.
Notifications
GST
This notification brings into force various provisions of the Finance (No. 2) Act, 2024. On the date of publication, sections 118, 142, 148, and 150 come into effect. Sections 114 to 117, 119 to 141, 143 to 147, 149, and 151 to 157 come into force on November 1, 2024. The notification is issued by the Central Board of Indirect Taxes and Customs under the Ministry of Finance, exercising powers co

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Fake firms case: Bail granted for alleged ITC fraud without strong evidence.
Case-Laws
GST
Bail granted – creation of fake firms, availing and utilizing ITC – offences u/ss 132(1)(b), 132(1)(c), and 132(5) of CGST Act, 2017 – allegations based on witness statements, no documentary evidence adduced – petitioner languishing in jail since 25.06.2024 – trial unlikely to conclude soon – no apprehension of tampering evidence or flight risk – bail granted on furnishing bail bond of Rs.1,00,000

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Contradictory stance by tax authorities on GST refund application leads to adverse inference.
Case-Laws
GST
The petitioner's application for GST refund, filed on 08.09.2020, was within the two-year limitation period prescribed u/s 54 of the CGST Act, 2017. The respondents initially treated this application as timely but later rejected a subsequent application dated 28.03.2020 as time-barred, despite it being a continuation of the original timely filed application. The respondents failed

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Firm seeks migration under GST portal, inability to file returns resolved.
Case-Laws
GST
The petition sought directions for permanent migration of the Petitioner's Firm under the same Goods and Service Tax Number (GSTN) and activation of login credentials on the common portal. The inability to login and migrate prevented the Petitioner from filing returns or paying taxes from July 2017 onwards. In light of the Allahabad High Court judgment in M/s Metro Institutes of Medical Sciences Pvt

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Taxpayer challenges blocking of input tax credit for alleged forged invoices without actual supply.
Case-Laws
GST
Petitioner sought quashing of intimation blocking input tax credit, alleging forged invoices without actual supply of goods or services. Competent officer had reason to believe the input tax credit claim was fraudulent u/r 86A of GST Rules, 2017. Court held that impugned notices/intimation were within jurisdiction and in accordance with GST Act and Rules. No grounds found to

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Contractor's GST Registration Restored Despite Missed Appeal Deadline; Court Urges Rule Amendments for Fairness.
Case-Laws
GST
The petitioner, a contractor enrolled under the GST Act, 2017, had his GSTN registration canceled due to non-filing of returns for six months. Despite claiming to have handed over documents to an accountant, the petitioner failed to file an appeal within the statutory 90-day period due to being unaware of the proceedings. The court held that the Bombay High Cour

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Property re-attachment after legal expiry held invalid, bank accounts to be unfrozen.
Case-Laws
GST
Petitioners challenged the re-attachment of their third account by the Department after the initial attachment expired by operation of law u/s 83(2) of the Act. The Court held that once the attachment expires, the Department lacks jurisdiction to re-attach the same account. Consequently, the Court directed lifting of the attachment made on 30.08.2024 on petitioners' third account and orde

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Court Clarifies Rule 86A: Temporary ITC Blocking for Suspected Fraud, Emphasizes Proper Procedure for Revenue Protection.
Case-Laws
GST
This is a summary of a court judgment regarding the interpretation of Rule 86A of the Central Goods and Services Tax (CGST) Rules, which deals with the blocking of input tax credit (ITC). The key points are: Input tax credit is a statutory right subject to conditions under the CGST Act. Rule 86A empowers tax authorities to block debit from a taxpayer's

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Govt's Free Electricity Compensation for Hydro Projects: GST Liability Questioned.
Case-Laws
GST
GST levy on supply of free power questioned – whether free power supplied as compensation to States for distress caused by hydro power projects can be considered “consideration” for services rendered by States to attract GST. Held: Petitioner's contentions have force that free electricity may not constitute “consideration” but “compensation”, raising doubt on leviability of GST. Respondents

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Petitioners' Bank Account Attachment Contested; Court Allows Appeal with Conditions for Stay of Recovery Actions.
Case-Laws
GST
The petitioners challenged the attachment of their bank account and steps taken by the respondents pursuant to an order of rectification, alleging irregular recovery before the expiry of the appeal filing period. The court held that since the petitioners had not filed an appeal against the order u/s 73, they cannot invoke extraordinary writ jurisdiction when an

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Accused granted bail after probe into tax evasion via bogus firms.
Case-Laws
GST
Application seeking regular bail granted – accused allegedly formed bogus firms and evaded tax payments – offences u/ss 132(1)(b), 132(1)(c) and 132(1)(l)(l) of GST Act – investigation completed, charge-sheet filed – maximum punishment 5 years, compoundable offence – considering Supreme Court order in Sandeep Goyal case and accused's custody since 04/03/2024 – bail granted on furnishing personal bond of Rs.

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Tax credit denial set aside; authorities to consider claim as per court's previous ruling.
Case-Laws
GST
The High Court set aside the assessment order denying input tax credit to the petitioner u/s 16(4) of the CGST/SGST Acts. It directed the authorities to consider the petitioner's claim for input tax credit in line with the court's previous judgment in M. Trade Links v. Union of India, which had provided directions regarding the interpretation and application of Section 16(4). The cou

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