Goods and Services Tax

GST Registration Cancellation Overturned Due to Inadequate Notice and Lack of Specific Allegations in SCN.
Case-Laws
GST
The impugned show cause notice (SCN) for cancellation of GST registration was cryptic and failed to clearly outline the reasons, thereby violating principles of natural justice. It did not specify the alleged fraud, statements wilfully misstated, or facts suppressed. A show cause notice must enable the noticee to respond to allegations before any adverse order. The su

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Tax demand unlawfully recovered without hearing petitioner; order quashed, case remanded for due process compliance.
Case-Laws
GST
The court held that the impugned order and consequential recovery notice were issued in violation of principles of natural justice as the petitioner was not afforded an opportunity to establish their case before the authorities. The tax demand was recovered from the petitioner without due process. Consequently, the court set aside the impugned order and reco

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Court Overturns Tax Assessment for Denying Hearing; Orders Reconsideration with 10% Payment Condition.
Case-Laws
GST
The High Court quashed the orders passed by the respondent assessing officer for violating principles of natural justice by not providing an opportunity of personal hearing to the petitioner, despite the petitioner seeking additional time to file replies to show cause notices. The Court remanded the matters back to the respondent for fresh consideration after setting asid

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One-day delay in GSTR-3B filing led to tax reversal, court intervenes.
Case-Laws
GST
One-day delay in filing GSTR-3B for September 2020 led to reversal of ITC. Petitioner filed GSTR-3B on 23.10.2020, one day late. Respondent issued Form GST DRC-01A on 22.03.2024, proposing tax, interest, and payment by 05.04.2024. On non-payment, respondent initiated section 73(1) proceedings and issued impugned show cause notice dated 16.05.2024. GST Council recommended extending GSTR-3B filing deadlin

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Violation of Natural Justice: GST Orders Quashed for Lack of Proper Notice.
Case-Laws
GST
Impugned orders were passed against petitioner without serving show cause notice or providing opportunity for personal hearing, violating principles of natural justice. Mere uploading of notices on GST Portal under 'View Notice and Orders' and 'View Additional Notices and Orders' tabs cannot be deemed sufficient service. As a small concern, petitioner was unaware of notices on portal until contacte

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Opportunity for personal hearing denied, order quashed; excess ITC availed on reverse charge inputs & non-reversal on credit notes.
Case-Laws
GST
Order quashed due to violation of natural justice principles by not granting proper opportunity for personal hearing. Excess input tax credit availed on inputs subject to reverse charge mechanism and non-reversal of credit on reversed credit notes. Matter remanded for reconsideration after granting personal hearing to petitioner within stipula

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Anticipatory bail denied as summons under CGST Act Section 70 not equivalent to arrest u/s 69.
Case-Laws
GST
The High Court rejected the application for grant of anticipatory bail filed by the applicants u/s 438 of the Criminal Procedure Code. The Court held that the application was not maintainable as the summons were issued u/s 70 of the CGST Act, 2017, which deals with the power of the appropriate officer to summon any person to give evidence or produce documents in an inquiry. The C

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Notification questioned over lack of Council nod; interim reprieve for petitioners, authorities to justify stance.
Case-Laws
GST
Notification No. 56/2023 prima facie appears ultra vires Section 168A of CGST Act, 2017 due to lack of GST Council recommendation, rendering consequential actions based on it invalid. Court finds examination required regarding force majeure applicability based on 49th GST Council meeting minutes, granting respondent authorities opportunity to present stance an

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GST Applies to Transfer of Buildings on Government Land as Service, Not Sale; Taxed at 18% Under Schedule II of CGST Act.
Case-Laws
GST
This case deals with the classification of supply and taxability under GST for the handover of building, civil structures, and railway siding constructed by the applicant on government land to a new lessee (OMCL). The key points are: 1) The transfer of building without ownership rights in the underlying land does not constitute a 'sale' under GST. 2) Th

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New GST guidelines for corporate guarantees between related parties: valuation methods, tax treatment.
Circulars
GST – States
This circular clarifies various issues related to taxability and valuation of supply of services involving corporate guarantees provided between related persons. It covers applicability of Rule 28(2) of CGST Rules retrospectively, valuation methodologies based on amount guaranteed or actual consideration, treatment of partial loan disbursals, takeovers, co-guaran

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Only One Officer Can Initiate Tax Proceedings; No Transfers Allowed; Judicial Powers Under GST Act Confirmed.
Case-Laws
GST
The High Court held that once a proper officer initiates proceedings on a subject matter under the Central Goods and Services Tax Act, 2017 (CGST Act) or the Haryana Goods and Services Tax Act, 2017 (HGST Act), no other proper officer can initiate proceedings on the same subject matter. The power exercised by the proper officer u/ss 69, 70, 71, and 72 of the CGST Act is judicial, and every inquiry is deemed a judicial proceeding. Issuance of a show cause notice marks the commencement of legal proceedings. The CGST Act and HGST Act do not provide for transferring proceedings from one proper officer to another.

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Registration Cancellation Conundrum: Lack of Reasons Violates Natural Justice, Impedes Business.
Case-Laws
GST
Doctrine of merger inapplicable. Cancellation of petitioner's registration without assigning reasons violates principles of natural justice. Reasons form heart and soul of judicial and administrative orders, absence renders order unjustified. Despite dismissal of appeal on ground of delay, doctrine of merger has no application considering facts. Rule 23 mandates service of noti

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Tax Liability Cleared: Court Annuls Order, Remands Case for 2017-2018 Reassessment After GST Council Extends Deadline.
Case-Laws
GST
The petitioner challenged the impugned order and recovery notice issued by the respondent, claiming that the entire tax liability had been paid by reversing the wrongly availed Input Tax Credit (ITC). The court held that the petitioner had already paid the entire tax demand and was only seeking an opportunity to file a reply to the show cause notice and pe

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Holding Co's equity capital and ECB not liable for IGST, Show Cause Notice quashed & reconsidered.
Case-Laws
GST
The High Court held that the Show Cause Notice (SCN) demanding Integrated Goods and Services Tax (IGST) on the activity of holding equity capital by the Holding Companies in the Petitioner company and on the External Commercial Borrowing (ECB) received by the Petitioner from AOSH was not properly considered. The court quashed the SCN insofar as it relates to the proposal to l

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GSTR mismatch: Firm allowed to furnish suppliers' self-declarations after ITC claim rejection.
Case-Laws
GST
Petitioner challenged assessment order for discrepancies between ITC claimed in GSTR-3B and GSTR-2A due to lack of time to furnish self-declarations from suppliers, violating natural justice principles. Court set aside impugned order, granting petitioner two weeks to file suppliers' self-declarations for reconsideration by respondent, disposing writ petition.
TMI Updates – Hi

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Trader's GST registration revived after showing bona fide delay in filing returns.
Case-Laws
GST
Petition regarding cancellation of GST registration and seeking restoration. Delay of six months in filing returns. Court found petitioner's reason for non-compliance bona fide. Petitioner directed to file pending returns with tax dues, interest, and late fee within 45 days. Cancellation of registration revoked subject to fulfilling conditions. Petition disposed.
TMI Updates – Highlights

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Court Condones Delay in Appeal, Allows Case to Proceed Despite Initial Dismissal for Wrongful Tax Credit Claim.
Case-Laws
GST
Violation of principles of natural justice by not providing sufficient opportunity to the petitioner to substantiate their claim. The respondent wrongfully availed input tax credit on the purchase of motor vehicles, reflected in GSTR-2A, and the corresponding GSTR-3B, violating Section 17(5) of the TNGST/CGST Acts. The court held that the respondent's order was p

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Accused granted bail in GST evasion case involving TMT bars supply amid lack of evidence.
Case-Laws
GST
The court granted bail to the accused in a case involving clandestine supply of branded TMT bars and evasion of GST. The prosecution's case was based solely on the statement of Rippan Kansal, with no incriminating evidence found during the search and inspection of the applicant's premises. The court considered the reliability of the statement and observed that the alleged offense is p

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Cancellation of GST registration can't be refused due to pending tax dues; court directs approval.
Case-Laws
GST
The respondent failed to process the petitioner's application for cancellation of GST registration, citing reasons such as the requirement to pay due tax and penalties, and submit details like stock register and bank statements. The court held that these grounds were untenable, as the cancellation of GST registration would not impinge upon the petitioner's liability to pay ou

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Bail Revoked for Fraudulent Tax Credit Claims; Court Finds Evidence Overlooked in Fake Invoice Scam.
Case-Laws
GST
Grant of bail involving wrongful availment of input tax credit by generating fake invoices causing wrongful gain to companies and wrongful loss to the Government. Court analyzed whether evidence available against petitioner regarding committing offense under CGST Act. Held that absence of material indicating accused petitioner as manager of firms not essential for prosecuti

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Petitioner Denied Hearing: Court Remands for Proper Tax Determination under RGST/CGST Act Due to Breach of Justice.
Case-Laws
GST
The case pertains to a violation of the principles of natural justice, wherein the petitioner's right to an opportunity for personal hearing, as provided under the law, was violated. The court held that Section 75 of the RGST Act/CGST Act contains provisions related to tax determination. Sub-section (2) states that if an Appellate Authority, Tribunal, or Cour

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Aluminium foil containers classified under 7615 with 12% GST, refund ordered after legal battle.
Case-Laws
GST
The petitioner's products were previously classified under heading 7615 of the Customs Tariff Act, 1975, but the Department contended that some products should be classified under heading 7607. The High Court had earlier allowed the petitioner's writ petitions challenging a similar order, following the Supreme Court's order in Commissioner of Central Excise vs. Hindalco Industr

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Revocation of GST registration for non-filing returns contested; Court restores registration following precedent.
Case-Laws
GST
The case pertains to revocation of cancelled GST registration due to non-filing of returns for a continuous period exceeding twelve months. The petitioner cited the resurgence of the COVID-19 pandemic as the reason for not conducting business during that period. The High Court referred to the Suguna Cutpiece case, where GST registration was restored subject to

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Offline Bridge Tournaments Exempt from GST: AAR Rules Skill-Based Game Not a 'Specified Actionable Claim'.
Case-Laws
GST
The AAR ruled that organizing physical/offline games or tournaments of contract bridge played for money does not constitute supply of 'specified actionable claims' u/s 2(102A) of the GST Act, 2017. Contract bridge is predominantly a game of skill, not chance. The organizer neither provides an online platform nor retains any platform fee from players' contributions. Th

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Petitioner's contradictory statements on address & business led court to conclude fraud, dismissing plea against bank account attachment.
Case-Laws
GST
Petitioner challenged the provisional attachment of his bank account u/s 83 of the CGST Act by invoking the jurisdiction of the High Court under Article 226 of the Constitution. However, the Court found contradictions in the petitioner's statements regarding his permanent address and business location. Combined with the respondents' asse

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