GST | Disputed SCN Service, Personal Hearing Issues Cannot Be Raised In Writ Plea: Delhi High Court

The Delhi High Court has declined to exercise its writ jurisdiction over pleas by two directors of Sterne India Pvt. Ltd. challenging a ₹27.11 crore GST penalty. The court held that their claims over service of the show cause notice (SCN) and denial of personal hearing involved factual issues that could be examined by the statutory appellate authority. According to the court, these grievances did not justify bypassing the remedy of appeal available under Section 107 of the Central Goods and...

GST | Proceedings Under Sections 73, 74 Can Co-Exist If They Concern Distinct Infractions: Delhi High Court

The Delhi High Court has held that proceedings under Sections 73 and 74 of the Central Goods and Services Tax Act, 2017 (CGST Act) can co-exist where they concern distinct liabilities or contraventions.The Division Bench of Justices Anil Kshetarpal and Shail Jain made the observation while dismissing a plea filed challenging proceedings initiated by the Central GST authorities under Section 74 of the CGST Act in relation to alleged inadmissible Input Tax Credit (ITC) availed by...

GST Refund Cannot Be Rejected Merely Because Department Plans To Challenge Appellate Order: Telangana High Court

The Telangana High Court has recently ruled that a GST refund authority cannot reopen an ITC dispute already decided by an appellate authority merely because the department proposes to challenge that order. An appellate order remains operative unless it is stayed, modified, or set aside in accordance with law. If the department seeks to withhold the refund while further proceedings are pending, it must comply with the requirements of Section 54(11) of the CGST Act.A Division Bench of Chief...

Clerical Error Cannot Justify Denial Of Refund Of IGST Paid Twice: GSTAT Thiruvananthapuram

On 17 September, the Thiruvananthapuram Bench of the Goods and Services Tax Appellate Tribunal (GSTAT) held that a clerical error in reporting export turnover in GSTR-3B cannot by itself justify denial of refund of IGST paid twice by an exporter. A Division Bench comprising Vice-President Subramanya Rayaprol and Technical Member Ramamoorthi Sriram set aside the Orders rejecting Choice Cashew Industries' refund claims and allowed the three appeals with consequential reliefs. The Bench described...

Post-Facto Approval Cannot Bring Pre-GST Services Within GST Regime: Calcutta High Court

The Calcutta High Court on 14 September held that post-facto approval of work completed before the introduction of the Goods and Services Tax (GST) cannot alter the date of supply or bring the completed service within the GST regime. Justice Partha Sarathi Chatterjee allowed a writ petition filed by Goutam Engineering Concern against West Bengal State Electricity Distribution Company Limited (WBSEDCL) and directed the latter to release Rs. 19,91,148 towards payment for technical personnel...

Revenue Cannot Deny Composition Rate After Accepting Dealer's Turnover Below ₹50 Lakh: Madras High Court

The Madras High Court has ruled that a dealer eligible for the tax composition scheme cannot be denied its concessional rate when the assessing authority itself determines that the dealer's taxable turnover is below the ₹50 lakh limit.The bench held that the authority cannot rely on an earlier estimate showing turnover above the limit after finally fixing the taxable turnover below it.“The Assessing Officer could not maintain two contradictory positions in the same order, i.e., on one hand,...

Electronic Gift Vouchers Can Be Valid Mode Of Passing GST Rate-Cut Benefit If Unconditional: GSTAT Delhi

The GST Appellate Tribunal at Delhi has recently held that electronic gift vouchers (EGVs) can be a mode of passing on a GST rate reduction, where they provide customers a direct monetary credit without conditions, expiry or usage restrictions.The ruling came in proceedings involving Sane Retails Pvt. Ltd., accused of failing to pass on a reduction in GST from 28% to 18% on MI LED Television 4A 80 cm from January 1, 2019. The tribunal found that the company had substantially complied with the...

Gujarat High Court Quashes GST Demand, Holds ITC Cannot Be Denied On Non-Taxable Transaction

The Gujarat High Court has held that tax authorities cannot deny input tax credit on a transaction that was not taxable in the first place.A bench of Justice A.S. Supehia and Justice Vaibhavi D. Nanavati made the ruling while quashing a GST demand against Kor Chems over credit claimed on the acquisition of leasehold rights in a GIDC industrial plot. The court held that the ITC reversal and interest could not survive after finding that GST was not leviable on the transfer of the leasehold...

Gujarat High Court Admits Ford India Plea Against GST Demands Based On E-Way Bill Discrepancies

The Gujarat High Court on 3 September admitted connected writ petitions filed by Ford India Private Limited challenging show-cause notices and Orders-in-Original issued under Section 74 of the Central Goods and Services Tax Act, 2017, concerning alleged discrepancies between taxable values and e-way bill data. A Division Bench of Justices A.S. Supehia and Vaibhavi D. Nanavati found that the adjudicating authority had expressed its inability to reconcile the voluminous data despite the material...

Rajasthan High Court Rejects Challenge To GST Provision Requiring Supplier Tax Payment For ITC

The Rajasthan High Court has upheld the constitutional validity of Section 16(2)(c) of the Central Goods and Services Tax Act, 2017, holding that actual payment of tax by the supplier is a valid condition for availing Input Tax Credit (ITC). A Division Bench of Justices Arun Monga and Ashutosh Kumar dismissed Sumetco Alloys Private Limited's challenge to Section 16(2)(c) as well as its challenge to a Rs. 56.44 crore GST demand for the financial years 2020-21 to 2023-24. The judges observed: ...

GST Authorities Cannot 'Ride Piggyback' On Adjudication Order For Income Tax Reassessment: Madras High Court

The Madras High Court has held that Income Tax authorities cannot rely solely on a GST adjudication order while conducting reassessment proceedings, cautioning that any reassessment must independently comply with the Income Tax Act.A single judge bench of Justice Senthilkumar Ramamoorthy, however, declined to interfere with the Section 148 notice issued to a granite and tiles business proprietor for AY 2023-24, as the proceedings were still at a preliminary stage.The court, however,...

Gujarat High Court Quashes GST Demand Against Environmental Entity, Holds Effluent Treatment Exempt

The Gujarat High Court has held that an environmental protection entity qualified for a nil GST rate on activities falling within charitable activities involving preservation of the environment. The court also found no deliberate intention to evade tax and quashed the show-cause notice issued by the GST authorities.A Division Bench of Justice A.S. Supehia and Justice Vaibhavi D. Nanavati allowed the petition filed by Naroda Enviro Projects Ltd. and its co-petitioner. The dispute concerned GST...