Goods and Services Tax

Natural Justice Breach: Order Issued Without Petitioner's Response Due to Lost Documents; Disciplinary Action Considered.
Case-Laws
GST
Violation of principles of natural justice by the respondents. Impugned order passed without giving opportunity to petitioner to reply to show cause notice. Non-receipt of documents hindered petitioner's reply. Respondents lost original documents admittedly taken from petitioner, prejudicing petitioner's rights – a serious matter requiring action. Commi

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Tax transit goods detention if compliance lapses; paid u/s 129 adjustable in returns.
Case-Laws
GST
The impugned circular dated 13.04.2018 does not lead to double taxation. Section 129 aims to recover tax on goods in transit where statutory compliance for removal was not met. The tax collected at detention stage is the tax payable in returns. If excess tax is paid in GSTR-3B after detention and payment u/s 129, the supplier can claim refund. The petitioner's apprehension of double taxat

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Business faces tax filing delay backlash, court offers reprieve on penalty condition.
Case-Laws
GST
The petitioner challenged orders u/s 62 of the TNGST Act for failing to furnish returns from April to July 2023 within the prescribed period. The High Court held that considering similar circumstances where the petitioner was granted an opportunity upon payment of 25% of the differential tax, it directed the petitioner to deposit 25% of the differential tax between the tax remitted in GST

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GST notices quashed over clerical error, petitioner to pay 15% disputed tax for fresh hearing.
Case-Laws
GST
Challenge to an order issued under Form GST DRC-07 for the difference in tax amount between GSTR 3B and GSTR 1. The impugned orders were passed without considering the petitioner's reply, violating the principles of natural justice. The court held that the respondent failed to consider the petitioner's reply, which stated a clerical error in GSTR 3B and correct filing of GSTR 1,

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Financial crisis led to GST default, court restores registration to enable business & tax compliance.
Case-Laws
GST
GST registration cancellation due to default in payment caused by financial crisis. Court set aside cancellation order, directing restoration of registration to enable business operations, filing returns, and remitting statutory dues as per law. Petition disposed, allowing petitioner to continue business and facilitate tax collection by the state.
TMI Updates – Highlig

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Court Rules GST Not Applicable on Maldives Exports; Orders Reimbursement of Taxes, Interest, and Penalties.
Case-Laws
GST
Key issues of levy of GST on export of goods to the petitioner's Maldives office, zero-rate supplies, fixed establishment, location of recipient and supplier of services. The court held that the petitioner and respondent had fixed establishments in Addu City, Maldives, and the petitioner was re-registered there, not constituting a separate legal entity. The scope of

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Tax assessment order challenged; HC grants interim protection, questions notification's legality.
Case-Laws
GST
Interim protection granted by High Court against coercive action based on assessment order pending challenge to notification No. 56/2023 issued u/s 73(9) of CGST Act, 2017. Court prima facie observed notification may be ultra vires Section 168A. Examination required regarding applicability of force majeure based on GST Council meeting minutes. Respondents directed to file affi

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High Court dismisses plea on reversing input tax credit availed by buyer due to factual dispute, not jurisdictional error.
Case-Laws
GST
Petition dismissed by High Court regarding reversal of input tax credit. Court found it was not a case where authorities proceeded on assumption that input tax credit was wrongly availed by buyer despite existence of seller/supplier. Factual dispute raised, not jurisdictional issue or violation of natural justice principles. Petitioner granted liberty

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Dealers Must Provide Comprehensive Documentation for ITC Claims Under UP GST Act to Avoid Double Taxation Denial.
Case-Laws
GST
Validity of input tax credit (ITC) u/s 16 of the UP GST Act hinges on compliance with specified conditions to avoid double taxation. The burden lies on the dealer to prove fulfillment of conditions for claiming ITC. Merely producing tax invoices, e-way bills, and banking channel payments is insufficient. Proof of actual physical movement of goods, genuineness o

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Unfair assessment order quashed, authority directed to grant personal hearing.
Case-Laws
GST
The impugned order was passed ex parte without providing notice to the petitioner for the subsequent hearing date, violating principles of natural justice. Relying on a coordinate bench judgment in M/s Shubham Steel Traders Vs. State of U.P. and Another, where it was held that by not passing the order on the scheduled date and not communicating the next date, the assessing authority forced an ex

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Accused Granted Bail in GST Fraud Case Involving Fake ITC Claims and Rs. 196 Crore Transactions; Lacks Sufficient Evidence.
Case-Laws
GST
The court granted regular bail to the petitioner in a case involving allegations of fraudulent claim of Input Tax Credit (ITC) and furnishing fake GST certificate for opening a bank account. The first allegation pertained to claiming ITC of Rs. 3,65,23,076/- without the corresponding tax being deposited by the supplying firms. The court held that pros

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Retrospective GST registration cancellation upheld from business closure date, subject to address & KYC update.
Case-Laws
GST
GST registration cancellation does not affect taxpayer's liability or recovery of dues. Petitioner's registration cancelled retrospectively, challenged effective date. Court held cancellation valid from date petitioner stopped business operations, subject to furnishing correspondence address and KYC documents within two weeks to satisfaction of proper officer. Pe

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Court Voids Orders on Input Tax Credit for Lack of Justification, Restores GST Registration, Demands Reassessment.
Case-Laws
GST
The impugned orders u/s 16(2)(c) of the CGST/DGST Act, 2017 demanding excess Input Tax Credit (ITC) due to non-reconciliation of information are set aside as they lack reasoning and violate principles of natural justice by not dealing with explanations submitted. The Court noticed a pattern of unreasoned orders being passed near the limitation period's expiry,

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GST Registration Restored: Court Overturns Unjust Cancellation Due to Flawed Show Cause Notice and External Influence.
Case-Laws
GST
Cancellation of a petitioner's Goods and Services Tax (GST) registration. The Show Cause Notice (SCN) did not provide specific details of the allegations, violating principles of natural justice. The petitioner had applied for revocation of the cancellation order, stating that business activities were halted due to COVID-19 but would resume gradually. The

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Registration cancelled due to time limit, GST authority's decision upheld.
Case-Laws
GST
The High Court dismissed the appeal against the cancellation of the petitioner's GST registration in Form GST REG-19 with effect from 01.05.2023, on the ground of time limitation. The Court upheld the order of the appellate authority rejecting the appeal in limine, in view of the statutory limitation prescribed under the Act. The issue was covered on merits by a previous decision of the Court, where

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Cancellation of GST registration upheld due to delay; restoration possible within 7 days after fulfilling requirements.
Case-Laws
GST
Petition challenging cancellation of GST registration dismissed on grounds of limitation. Petitioner directed to approach competent authority for restoration of GST number within seven days, subject to completion of requisite formalities, filing returns, and depositing taxes, penalty, and interest. Order based on similar previous decisions, without examin

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Firm's bank accounts attached over directors' personal liability; High Court orders reconsideration within 1 month.
Case-Laws
GST
This legal matter concerns the attachment of two bank accounts belonging to the petitioner, a private limited company, due to personal liability imposed on its directors. The High Court disposed of the petition by directing the respondent to consider and resolve the petitioner's representation dated 20-9-2023 within one month. The respondent must provide a re

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Seizure order & penalty quashed due to lack of intent for tax evasion; Refund ordered within 8 weeks.
Case-Laws
GST
The petitioner challenged the seizure order and show cause notice (SCN) on grounds that the address provided in the invoice was not the registered place of business at the time of detention. The court examined whether there existed mens rea (guilty mind) for tax evasion. It held that the revenue failed to establish mens rea, rendering the detention process, SCN, and penalt

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Fake firms & tax credit fraud: Bail granted due to lack of evidence & co-accused's role. Conditions apply.
Case-Laws
GST
Bail granted in case involving creation of fake firms and passing of fake input tax credit. Considering nature of offense, punishment, available material, lack of evidence regarding device used for creating fake firms, and co-accused with more serious role already granted bail, applicant deemed eligible for bail upon furnishing personal bond and sureties to court's sa

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Dealers Not Penalized for Seller's Tax Failures; Court Overturns Orders, Allows Action on Non-Bona Fide Purchases.
Case-Laws
GST
Sections 16(2)(c) and 16(2)(d) of the Assam and Central Goods and Services Tax Acts, 2017, were challenged regarding the validity of punishing a purchasing dealer for the selling dealer's failure to deposit collected tax. The High Court held that the controversy is covered by the Delhi High Court's decision in On Quest Merchandising India Pvt. Ltd. case, where

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Unutilized Input Tax Credit Transfer Denied in AP GST Regime.
Case-Laws
GST
The petitioners sought transfer of unutilized input tax credit available in their ledgers as on 02.06.2014 to the AP GST regime. The court held that Section 56 of the Andhra Pradesh Reorganisation Act, 2014 deals with refund of excess tax collected, but is inapplicable to unutilized input tax credit, which is not excess tax paid. Consequently, the impugned demand orders in Form GST DRC-07 issued by the responden

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Tax Dispute Over Turnover Reporting Violation: Court Remands Case for Fresh Consideration.
Case-Laws
GST
Petition challenged impugned order passed by respondent for assessment year 2018-19, contending violation of principles of natural justice due to non-issuance of notices. Court held petitioner may have merits as dispute pertained to difference in turnover reported in GSTR-7 and GSTR-3B. Partial relief granted by setting aside impugned order and remitting case to respondent for fresh

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Bail cancelled for concealing criminal history in economic offense case.
Case-Laws
GST
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 r

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Tax assessment remanded for fresh orders; 25% disputed tax to be paid from e-cash ledger.
Case-Laws
GST
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 Noti

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Nationwide Crackdown on Fake GST Registrations: Suspensions, Cancellations, and Recoveries Planned from Aug 16 to Oct 15, 2024.
Circulars
GST
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. No

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