GST&VAT&CST
Error By Supplier In Mentioning GSTN Of Trader Can't Form Basis To Reject ITC On Purchases: Delhi High Court
The Delhi High Court recently came to the rescue of a Company engaged in the sale of various pharmaceutical products and medical devices, holding that it could not be denied Input Tax Credit on purchases merely because its supplier had mentioned a wrong GST number on the invoices.In the facts of the case, a division bench of Justices Prathiba M. Singh and Rajneesh Kumar Gupta observed,“The only basis for rejecting the ITC is the mention of the Bombay office GSTN instead of the Delhi office GSTN....
Notice Under Rule 142(1)(A) Of CGST Rules Must Be Issued Before Issuing Proper SCN: Andhra Pradesh High Court
The Andhra Pradesh High Court stated that a notice under Rule 142(1)(A) of CGST Rules must be issued before issuing proper show cause notice. The Division Bench of Justices R. Raghunandan Rao and K Manmadha Rao was addressing a case where notice under Rule-142(1)(A) of the CGST Rules was not issued to the assessees/petitioners, prior to the Orders of assessment. The assessees have challenged the orders of assessment before the Andhra Pradesh High Court. The assessee submitted...
Carbonated Fruit Drinks Qualify As Fruit Beverages, Taxable At 12% GST: Gauhati High Court
The Gauhati High Court stated that carbonated fruit drinks qualify as fruit beverages and are taxable at 12% GST. The Bench of Justice Soumitra Saikia opined that “where the subject product contains soluble solids and fruit content as per the report of the State Food Laboratory, it cannot be said to be akin to water, mineral water or aerated water. Mere presence of carbon dioxide or carbonated water cannot be treated to classify the subject items under water or carbonated water. The ...
S.29 CGST Act | SCN Must Reflect Both Reasons And Intent Of Retrospective Cancellation Of Registration: Delhi High Court
The Delhi High Court has made it clear that an order cancelling GST registration of a trader with retrospective effect will not sustain unless the show cause notice preceding such decision reflects both the reasons and the authority's intent for retrospective cancellation.A division bench of Justices Yashwant Varma and Harish Vaidyanathan Shankar observed, “in the absence of reasons having been assigned in the original SCN in support of a proposed retrospective cancellation as well as a failure...
S.67 Of CGST Act & S.110 Of Customs Act Are Pari Materia; GST Department Must Give Notice To Assessee Before Extending Seizure Period: Delhi HC
The Delhi High Court has held that an assessee must be issued notice within six months of seizure of its goods under Section 67 of the Central Goods and Services Tax Act 2017, failing which the goods must be returned by the Department.A division bench of Justices Yashwant Varma and Harish Vaidyanathan Shankar further held that the period of seizure cannot be extended under Section 67)7) for a further six-month period without giving notice to the accused.This, as the Court found the provision to...
Supreme Court Upholds Allahabad HC Decision That Chargers Sold With Cell Phones Cannot Be Taxed Separately Under UP VAT Act 2008
The Supreme Court recently upheld the decision of the Allahabad High Court which observed that the charger sold with a cell phone under the MRP cannot be taxed separately under the UP VAT Act 2008. The bench of Justice BV Nagarathna and Justice SC Sharma was hearing a challenge to the order of the Allahabad High Court which held that a mobile charger contained in a composite package with the cell phone cannot be taxed separately under Entry 28 Part B Schedule II U.P. VAT Act 2008. The...
Restaurant Service Or Bakery Product? Bombay High Court To Decide If Donuts & Cakes Should Be Taxed At 5% Or 18% Under GST
The Bombay High Court is to decide whether the donuts and cakes should be classified as restaurant service or a bakery product under Goods and Services Tax. The Division Bench of Justices B.P Colabawalla and Firdosh P. Pooniwalla were addressing the issue of whether the supply of donuts falls within the ambit of restaurant services under Service Accounting Code (SAC) 9963 or should be categorized as a bakery product subject to separate tax treatment under the Goods and Services Tax...
Rajasthan GST Department Mandates Virtual Hearing In All Tax Matters, Issues Guidelines
The Rajasthan GST Department on 20.02.2025 issued guidelines on virtual hearing. The Guidelines have been issued in pursuance of the para 143 of the Budget Speech 2025-26 and in exercise of power conferred under Section 168 of the RGST Act, 2017. The circular highlights that in Rajasthan, provisions have also been made for faceless scrutiny as well as carrying out of Business Audit and Enforcement pertaining to the taxpayers not just by the jurisdictional Proper Officers bit also...
Delhi High Court Allows Indigo Airlines' Plea, Holds Levy Of Additional IGST On Repaired & Re-Imported Aircraft Parts To Be Unconstitutional
In big relief to Indigo airlines, the Delhi High Court has held that an additional levy of Integrated Goods and Services Tax (IGST) and cess under Section 3(7) of the Customs Tariff Act, 1975 on re-import of aircraft parts that were repaired abroad, is unconstitutional.A division bench of Justice Yashwant Varma and Ravinder Dudeja observed that “additional duty even after the transaction has been subjected to the imposition of a tax treating it to be a supply of service would be clearly...
Rule 36(4) Of CGST Rules Is Constitutionally Valid, Does Not Derive Power From Section 43A: Gauhati High Court
The Gauhati High Court has upheld the constitutional validity of Rule 36(4) of the Central Goods and Services Tax/Assam Goods and Services Tax Rules, 2017. The provision stipulates documentary requirements and conditions for a registered person claiming input tax credit (ITC).A division bench of Chief Justice Vijay Bishnoi and Justice N. Unni Krishnan Nair observed that the provision was enacted based on powers derived from Section 16 of the CGST Act and the general rule-making powers under...
[CGST ACT] Dept Can't Seize Goods If Quantity Or Weight Of Goods Is Found Correct On Physical Verification: Calcutta High Court
The Calcutta High Court stated that GST department cannot seize the goods if the quantity or weight of the goods is found correct on physical verification. The Division Bench of Chief Justice T.S Sivagnanam and Justice Hiranmay Bhattacharyya noted that the quantity or the weight of the goods, which were carried in the vehicle, has been found to be correct by the department on physical verification and there is no discrepancy. The bench further stated that “the inspecting authority...
