Commissioner Cannot Use Its Power U/S 107(2) CGST Act To Review Order Passed By Appellate Authority: Delhi High Court

The Delhi High Court has made it clear that a Commissioner under the Central Goods and Services Tax Act 2017 cannot, in purported exercise of its powers under Section 107(2), sit in appeal over an order passed by the Appellate Authority. Section 107(2) empowers the Commissioner to call for and examine the record of any proceedings in which an adjudicating authority has passed any order, for the purpose of satisfying himself of its legality. A division bench of Justices Yashwant Varma...

When Investigation Is Substantially Completed By Improper Officer, SCN Issued U/S 74 Of CGST Act Is Liable To Be Set Aside: Karnataka HC

The Karnataka High Court held that when investigation is substantially completed by improper officer, show cause notice issued by proper officer u/s 74 of CGST Act is liable to be set aside. The Bench of Justice M.I. Arun observed that “…..substantial part of the investigation including search and seizure of the materials has been done by respondent no.2 who is not the proper Officer and under the circumstances, the said investigation, inspection, search and seizure in respect of the...

Delay In Filing Certified Copy Of Impugned Order Doesn't Render Appeal Filed Electronically U/S 107 CGST Act Time-Barred: Delhi HC

The Delhi High Court has held that delay in filing certified copy of impugned order in an appeal preferred by Assessee under Section 107 of the Central Goods and Services Tax Act, 2017 would not render the appeal time-barred, if it was filed online within prescribed time. A division bench of Justices Prathiba M. Singh and Amit Sharma reasoned, “the condition to physically file the certified copy of the impugned decision/order is not mandatory…where the certified copy was submitted...

Tax Law : Important Judgments By Supreme Court In 2024

As the year 2024 nears its end, LiveLaw brings to you a summary of important Supreme Court judgments of the year rendered in connection with Tax Law. The same are as follows:1. Hiring Of Motor Vehicle Or Cranes Is Not 'Sale Of Goods' If Control Over Equipment Is Retained By Contractor, VAT Can't Be Levied: Supreme CourtCase: M/s. K.P. Mozika v Oil and Natural Gas Corporation Ltd. & Ors. [2024 LiveLaw (SC) 26]In this case, a bench of Justice Abhay S Oka and Justice Rajesh Bindal held that...

Application For Revocation Of Cancellation Of GST Registration Rejected Just Because Taxpayer Did Not Respond To SCN: Delhi HC Revives Application

The Delhi High Court held that the application for revocation of cancellation of GST registration could not have been dismissed, when apart from using the phrase “any supporting documents” and “others”, no further reason was assigned as to why the said application was dismissed.The High Court held so, while observing that the solitary reason which has weighed upon the respondent to reject that application was a failure on the part of petitioner to respond to a SCN. While rendering the order of...

GST To Remain @5% On Popcorn Sold In Theatres, Clarifies Govt

The Finance Ministry in its 55th Meeting of the GST Council, clarified that ready to eat popcorn which is mixed with salt and spices are classifiable under HS 2106 90 99 and attracts 5% GST if supplied as other than pre-packaged and labelled and 12% GST if supplied as pre-packaged and labelled.However, when popcorn is mixed with sugar thereby changing its character to sugar confectionary (e.g. caramel popcorn), it would be classifiable under HS 1704 90 90 and attract 18% GST. By this...

GST Department's Effective Adjudication Of Matter Cannot Be Scuttled By Seeking Writ Remedy: Calcutta High Court

While reiterating that it shall not interfere in matters requiring fact-finding and adjudication, which fall squarely within the statutory domain, the Calcutta High Court advised the manufacturer/ supplier to exhaust the statutory remedies provided under the CGST Act, 2017 including submitting a detailed response to the SCN.“The statutory framework under the CGST Act provides adequate mechanisms for addressing the petitioner's concerns, including responding to the SCN, participating in...

Outstanding Demand Under Maharashtra Settlement Can't Be Adjusted Against Refund Payable Under Maharashtra VAT Act: High Court

The Bombay High Court held that authorities under MVAT Act while exercising powers under Maharashtra Settlement of Arrears of Taxes, Interest, Penalties or Late Fees Act, 2022, cannot invoke provisions of Section 50 of MVAT and that too in review proceedings under Settlement Act.The Division Bench of Justice M. S. Sonak and Justice Jitendra Jain observed that there is no provision under Settlement Act which provides for calculation of outstanding arrears of a particular year to be arrived at...

DVAT Act | Assessee 'Automatically' Becomes Entitled To Interest U/S 42 On State's Failure To Adhere To Mandatory Timelines For Refund: Delhi HC

The Delhi High Court has made it clear that when a refund of tax or penalty paid in excess under the Delhi Value Added Tax Act, 2004 is delayed by the authorities, the assessee “automatically” becomes entitled to interest on such refund.Section 38(1) “obligates” the Commissioner to refund the amount of tax, penalty or interest, if paid by a person in excess of the amount due from him.Section 38(3)(a) provides the timeline for a refund from the date on which the return is furnished or the claim...

Failed To Comply With S.23(4) Of MVAT Act Along With Non-Application Of Mind & Legal Malafide: Bombay HC Quashes Assessment, Imposes 50K Cost On Dept

While considering a case where the Commercial tax department has flagrantly breached the statutory provisions of Sec 23(4) of the MVAT Act, the Bombay High Court ruled that assessment order passed by Commissioner of Sales tax is vitiated by total non-application of mind. Since a strong prima facie case is made out about manipulating the date of passing the assessment order, the High Court found that such manipulation was to create an impression that the order was made within the...

Notice of Assessment Issued Within Limitation, Assessment Order Valid Even If Passed Beyond Three-Year Period: Madras High Court

The Madras High Court stated that if notice for completing assessment issued within limitation, then assessment order is within time even if passed beyond period of three years. The Division Bench of Justices R. Suresh Kumar and C. Saravanan observed that “as per Section 24(5), no assessment shall be made after a period of three years from the end of the year to which the return under the Act relates. The test to be applied is whether the notice for completing the assessment was ...

NCLAT: Section 37 Of The MVAT Act And Section 33 Of The MPVAT Act Not Pari Materia With Section 48 Of The GVAT Act

The National Company Law Appellate Tribunal, New Delhi bench, comprising Justice Rakesh Kumar Jain (Judicial Member), Mr. Naresh Salecha (Technical Member), and Mr. Indevar Pandey (Technical Member) has held that Section 37 of the Maharashtra Value Added Tax Act, 2002 (“MVAT Act") and Section 33 of the Madhya Pradesh Value Added Tax Act, 2002 (“MPVAT Act”) are not pari materia with Section 48 of the Gujarat Value Added Tax Act, 2003 (“GVAT Act”). The Tribunal held that the claim of the...