SCN Uploaded On 'Additional Notices' Tab Of GST Portal Not Proper: Delhi High Court

The Delhi High Court has made it clear that uploading of show cause notice by the GST department under the 'additional notices' tab on its portal is not proper as the assessee may miss it.The decision is a contrast to a coordinate bench decision rendered in July last year, holding that uploading of notices under the heading 'additional notices' amounts to sufficient service.A division bench of Justices Prathiba M. Singh and Rajneesh Kumar Gupta held,“the notice if uploaded on the additional...

Order U/S 75(6) Of GST Act Must Be Self-Contained, Mere References To SCNs Is Not Sufficient: Allahabad High Court

The Allahabad High Court has held that order under Section 75(6) of the Goods and Service Tax Act, 2017 must be self-contained and mere reference to previous show cause notices is not sufficient. Section 75 of the GST Act is a general provision relating to determination of tax. Section 75(6) of the GST Act provides that “the proper officer, in his order, shall set out the relevant facts and the basis of his decision.” Petitioner argued that notice under Section 61 (Scrutiny of...

Provisions Of Section 26E SARFAESI Act & Section 34 RDB Act Prevails Over Section 24 Of TNGST Act: Madras High Court

The Madras High Court stated that provisions of Section 26E of the SARFAESI Act and Section 34 of the Recovery of Debts and Bankruptcy Act would prevail over the provisions of Section 24 of the Tamil Nadu General Sales Tax Act. The Division Bench of Justices Anita Sumanth and G. Arul Murugan observed that “in the juxtaposition of Section 26E of the SARFAESI Act with Section 34 of the RDB Act, it is Section 26E of the SARFAESI Act that will provide the necessary impetus for determining...

Claims Of GST Department Are Barred Once Resolution Plan Is Approved: Allahabad High Court

Relying on the judgments of the Supreme Court in Vaibhav Goyal & Another Vs. Deputy Commissioner of Income Tax & Another, the Allahabad High Court has held that the claims of Goods and Service Tax Department are barred after the aproval of resolution plan by the National Company Law Tribunal. In Vaibhav Goyal & Another Vs. Deputy Commissioner of Income Tax & Another, the Apex Court has held that if the statutory dues owed to the Government do not form a part of the...

CGST Act | Right To Cross-Examine Is Not An Unfettered Right At SCN Stage, Party Must Specify Reasons: Delhi High Court

While dealing with a case under the Central Goods & Services Tax Act 2017, the Delhi High Court has held that though cross-examination can be granted in certain proceedings if it is deemed appropriate, the right to cross-examine cannot be an unfettered right.A division bench of Justices Prathiba M. Singh and Rajneesh Kumar Gupta observed,“The rationale behind setting aside an order/judgment on the grounds of non-provision of the right to cross-examine is to safeguard the affected party from...

Delhi HC Expresses Concern Over “Harrowing Experience” Of Widow Seeking Refund Of Balance In Electronic Cash Ledger Of Deceased Husband's Firm

The Delhi High Court recently recorded the “harrowing experience” that a widow had to go through for obtaining a refund from the GST Department.The GST registration of the firm owned by her now deceased husband was cancelled in view of his death. However, his widow sought a refund of ₹10,45,793/- balance in the electronic cash ledger of the firm.The said application was rejected by the Department and subsequently, the amount was debited from the Ledger without either being paid to the petitioner...

CBIC Introduces Goods & Services Tax (GST) Appellate Tribunal (Procedure) Rules 2025, Mandates All Appeals To Be Uploaded On GSTAT Portal

The Central Board of Indirect Taxes and Customs (CBIC) through Notification 256(E), under the Union Ministry of Finance, has officially released a comprehensive set of rules outlining the functioning of the Goods and Services Tax (GST) Appellate Tribunal. As per the notification the GST Appellate Tribunal (Procedure) Rules, 2025 took effect on 24th April, 2025. The rules have been introduced with an objective of promoting uniformity, procedural clarity and digital efficiency in the...

Assessee's Business Cannot Be Prejudiced By Complete Attachment Of Bank Accounts Pending Adjudication By GST Authority: Delhi HC

The Delhi High Court has asked the GST authority not to prejudice the business of an assessee, involved in manufacturing of mild steel products, by attaching its complete bank account pending adjudication of ₹15.09 crores tax evasion proceedings.A division bench of Justices Prathiba M. Singh and Rajneesh Kumar Gupta noted that one year had elapsed since the provisional attachment order was passed but no show cause notice was issued. It also noted that in any case the entire amount alleged would...

GST Demand Of Over ₹10 Crores Raised Without Considering Assessee's Stand: Delhi High Court Orders Fresh Adjudication

The Delhi High Court has asked the Adjudicating Authority under Central Goods and Service Tax Act 2017 to undertake fresh adjudication of the show cause notice issued to an assessee, raising demand of more than ₹10 crores.A division bench of Justices Prathiba M. Singh and Rajneesh Kumar Gupta did so after noting that such a “substantial” demand was made without even considering the assessee's reply.“Clearly, a substantial demand of more than Rs.10 crores has been raised without considering the...

Whether Roof-Mounted Air Conditioners For Trains Attract 18% GST Or 28% GST? Delhi High Court To Decide

The Delhi High Court will soon decide the GST rate applicable to roof-mounted air conditioners of specific designs manufactured for the railways.A division bench of Justices Prathiba M. Singh and Rajneesh Kumar Gupta are seized with a petition filed by railways and aerospace technology company StesaLIT Limited, challenging a Circular issued by the Union Finance Ministry in 2024, stipulating that above said AC units shall be classified under HSN 8415 and not HSN 8607.HSN code 8415 attracts GST...

Delhi HC Sets Aside ₹12 Crore GST Demand On Exide Industries But Imposes ₹1 Lakh Cost For Laxity In Responding To Hearing Notices

The Delhi High Court has set aside a GST demand of over ₹12 crores raised on storage battery manufacturer Exide Industries, for wrongful availment of Input Tax Credit.A division bench of Justices Prathiba M. Singh and Rajneesh Kumar Gupta however imposed a cost of ₹1 lakh on the Indian multinational for “laxity” in responding to the repeated hearing notices issued by the Department.The petition was filed by the company assailing final order and Form DRC-07 issued by the Adjudicating Authority to...

S.107(6) Of CGST Act Does Not Grant Discretion To Court For Waiving Pre-Deposit At Time Of Filing Appeal: Delhi High Court

The Delhi High Court has made it clear that it has no discretion to allow a prayer seeking waiver of pre-deposit condition prescribed under Section 107(6) of the Central Goods and Services Tax Act, 2017 for preferring an appeal under the statute.In terms of Section 107(6), insofar as the admitted tax, interest or penalty is concerned, the entire amount would have to be deposited. In so far as the disputed amount is concerned, 10% of the tax would have to be deposited as a pre-deposit along with...