[S. 93 GST Act] No Provision Empowering Authorities To Make Tax Determination Against Dead Assesee: Allahabad High Court

The Allahabad High Court has held that Section 93 of the Goods and Services Tax Act, 2017 does not empower the authorities to make determination of tax against a dead person and recover the same his legal representatives. Section 93 of Goods and Services Tax Act, 2017 provides for liability to pay tax in case of death of the proprietor of the firm. Section 93(1)(a) provides that when the business is continued after the death of the proprietor, the legal representative shall be liable...

GST Appellate Authority Must Pass Order On Merits Even If There's No Appearance; Can't Dismiss For Default: Kerala High Court

The Kerala High Court has held that an appellate authority under the Central Goods and Services Tax Act (CGST Act 2017) must consider the merits of an appeal even if there is no appearance on behalf of the appellant.The Court stated that the order must be passed on merits and that the dismissal cannot be merely for default. Justice Bechu Kurian Thomas was considering a writ petition filed by an assessee challenging an order passed by the Joint Commissioner (Appeals) dismissing an appeal...

Dealers Cannot Claim Input Tax Credit For Purchases Linked To Exempt Sales Under UPVAT Act : Supreme Court

Emphasizing that tax statutes must be strictly construed with statutory language taking precedence over policy intent, the Supreme Court, in a case concerning the Uttar Pradesh Value Added Tax Act, 2008 (“VAT Act”), held that a dealer is not entitled to claim Input Tax Credit (“ITC”) on the purchase of goods where the subsequent sale of those goods is exempt from tax.“Section 13(7) outlines the circumstances under which such a benefit cannot be allowed. Section 13(7) also sets out that no...

[GST] Seller Registered At Time Of Transaction; Cannot Draw Adverse Inference Against Purchasing Dealer Over Subsequent Cancellation: Allahabad HC

The Allahabad High Court has held that if the seller is a registered dealer at the time of transaction, no adverse inference can be drawn against the purchasing dealer based on the subsequent cancellation of seller's registration.Justice Piyush Agrawal held “Once the seller was registered at the time of the transaction in question, no adverse inference can be drawn against the petitioner. Further, the record shows that the registration of the selling dealer was cancelled retrospectively i.e....

College Supplying Food Through Canteen Managed By Educational Trust Is Liable For Registration Under KVAT Act: Kerala High Court

The Kerala High Court held that college supplying food through canteen, though managed by educational trust, is liable for registration under KVAT Act. The bench disagreed with the assessee that even if it is assumed that the sales in the canteen are found to be assessable under the provisions of the VAT, it falls within the threshold limit and therefore, the assessee cannot be compelled to take registration. It may be true that the sales across the counter in the canteen may be...

Withholding Tax Refunds Without Justification Violates Section 55 Of JVAT Act: Jharkhand High Court

The Jharkhand High Court has held that withholding tax refunds beyond the statutorily prescribed period without adequate justification, violates Section 55 of the Jharkhand Value Added Tax Act, 2005, and deprives the taxpayer of rightful dues. The Court ruled that the refund must carry interest from the date the excess demand was determined, and non-allocation of funds by the State cannot override this obligation.In the words of the Division Bench comprising the Chief Justice MS Ramachadran Rao...

Kerala High Court Strikes Down GST Act Provision Which Levied Tax On Supplies By Clubs/Associations To Members

In a significant judgment, the Kerala High Court has struck down the provisions of the Central Goods and Services Tax Act, 2017, which allowed the levy of GST on supply by clubs and associations to its members.As per the 2021 amendment made to the CGST Act, the definition of "supply" was amended to include within its fold "activities or transactions, by a person, other than an individual, to its members or constituents or vice versa, for cash, deferred payment or other valuable consideration."...

S.54(11) GST Act | Assessee's Refund Can't Be Held Back On Commissioner's Opinion Alone, Twin Conditions Must Be Satisfied: Delhi HC

The Delhi High Court has held that Section 54(11) of the Central Goods and Services Tax Act, 2017 prescribes twin conditions for Revenue holding back Refund due to an Assesseee, despite an order to that effect.Section 54(11) of the Act would show that the refund can be held back on the satisfaction of the following two conditions – (i) when an order directing a refund is subject matter of a proceeding which is pending either in appeal or any other proceeding under the Act; and (ii) thereafter...

S.161 DGST Act | Personal Hearing Can Be Dispensed Only If Assessee's Rectification Application Is Allowed, Not Rejected: Delhi HC

The Delhi High Court has held that in terms of proviso 3 to Section 161 of the Delhi Goods and Service Tax Act, 2017, an order rejecting the rectification application filed by an assessee cannot be passed without first hearing the assessee.A division bench of Justices Prathiba M. Singh and Rajneesh Kumar Gupta further said that the hearing can be dispensed with only where the rectification application is allowed. It observed,“As per proviso 3 to Section 161, the rectification order, if allowed...

NOIDA Authorities Deposited Party's Tax Under Wrong Head: Allahabad HC Directs Compensation To Assessee For Penalty Imposed U/S 73 Of GST Act

Recently, the Allahabad High Court has directed the New Okhla Industrial Development Authority (NOIDA) to compensate the assesee Rs. Rs.19,22,778/- which was imposed on the assesee as tax and penalty in proceedings under Section 73 of the Goods and Service Tax Act, 2017. Petitioner rented out his property in Gautam Budh Nagar(Noida). The rent received from the property was taxable under the GST Act. Petitioner duly deposited the one-time lease rent of Rs. 97,18,500/- and the tax of...

Delhi HC Flags Rise In GST Litigation, Asks Department To Depute Officials To Enable Expeditious Disposal

The Delhi High Court has flagged the rise in number of GST related cases being filed before it and to ensure expeditious disposal of cases, particularly those arising out of procedural issues, has asked the Department to depute at least two officials from its litigation section.A division bench of Justices Prathiba M. Singh and Rajneesh Kumar Gupta said these officials can coordinate with the various Commissionerates of the GST department and give instructions to the Department's counsels, in an...

Delhi VAT | No Interest On Refund For Period Of Delay Attributable To Dealer: High Court

The Delhi High Court has held that if the delay in granting refund to a dealer under the Delhi Value Added Tax Act, 2004 is attributable to the dealer itself, such period of delay shall be excluded for the purposes of awarding interest on refund.Section 38(3)(a)(ii) of DVAT Act stipulates a period of two months for refund of excess tax, penalty, etc., if the period for refund is a quarter.A division bench of Justices Prathiba M. Singh and Rajneesh Kumar Gupta cited Explanation to Section 42(1)...