Punjab & Haryana High Court Directs Release Of JK Cement GST Refund Despite Revenue Appeal

The Punjab and Haryana High Court has directed the Revenue to release a GST refund to JK Cement Works, holding that the company cannot be denied the refund merely because the Revenue has challenged the refund order before the Appellate Tribunal.The Division Bench comprising Acting Chief Justice Ashwani Kumar Mishra and Justice Rohit Kapoor passed the order on a petition filed by the cement manufacturer, which has a manufacturing unit at Jharli, Haryana.The company had secured an order allowing...

Madras High Court Directs Reconsideration Of Indian Bank's Maharashtra GST Waiver Claim

The Madras High Court on 31 July directed GST authorities to reconsider Indian Bank's application seeking waiver of interest and penalty in respect of its Maharashtra operations. Justice Senthilkumar Ramamoorthy held that when a single order under Section 73 of the Central Goods and Services Tax Act, 2017 covers operations in multiple States, the proper officer cannot reject a waiver claim under Section 128A of the Act for one State on the ground of lack of jurisdiction if no other officer is...

Punjab & Haryana HC Grants Bail To Two Accused In ₹197 Cr. GST Fraud Case, Holds Allegations Need Trial

The Punjab and Haryana High Court on 29 July granted regular bail to two accused in a Goods and Services Tax (GST) fraud case involving an alleged loss of around Rs. 197.39 crore to the government exchequer, holding that the allegations would have to be tested at trial where the case was largely based on documentary and electronic evidence and the prosecution witnesses were government officials. Justice Shalini Singh Nagpal passed the order in petitions arising from a complaint filed by the...

GST Search Grievance Cannot Invoke Criminal Jurisdiction Under Section 528 BNSS: Madras High Court

The Madras High Court on 4 August held that a grievance concerning search or inspection by Goods and Services Tax (GST) authorities cannot be brought within the scope of Section 528 of the Bharatiya Nagarik Suraksha Sanhita (BNSS), merely because tax officials are empowered to conduct search and seizure while following criminal procedure. Justice D. Bharatha Chakravarthy declined to entertain the petition filed by B. Rajkumar, who carries on business as Maharaja Jewellers in Chennai, seeking a...

Madras High Court Expands GST Search Safeguards, Requires DIN Compliance And Voluntary Payments

On 5 August, the Madras High Court laid down additional safeguards governing GST searches, including requirements relating to search authorisation, Document Identification Numbers (DIN) and voluntary payments under the GST law. Justice G.R. Swaminathan while allowing a writ petition filed by Bhima Enterprises, a jewellery dealer, held that Goods and Services Tax (GST) officers cannot recover tax during search proceedings and that any payment made before issuance of a show cause...

GST Department Cannot Retain Seized Records After Withdrawing Search Authorisation: Madras High Court

On 5 August, the Madurai Bench of the Madras High Court held that the GST Department cannot retain files and documents seized during an inspection once it withdraws the search authorisation under which the seizure was made, and directed the immediate return of all records taken from a jewellery dealer. A Bench of Justice G.R. Swaminathan allowed the writ petition filed by Bhima Enterprises and noted that the Department lost its statutory authority to retain the seized material after withdrawing...

S. 76 CGST Act | Appellate Authority Can Decide Reasonable Period For Issuing Show Cause Notice: Delhi High Court

The Delhi High Court has held that the GST Appellate Authority is competent to decide what constitutes a "reasonable period" for issuance of a show cause notice under Section 76 of the Central Goods and Services Tax (CGST) Act, 2017.The Division Bench of Justices Anil Kshetrapal and Shail Jain thus refused to entertain a writ petition in this regard, by bypassing the statutory appellate remedy.The petition was filed by a security services company, challenging a show cause notice dated September...

Madras High Court Holds Later Clarifications Cannot Take Away 7% Drawback On Bus Bodies, Quashes Denial

The Madras High Court on 30 July held that Customs authorities cannot deny exporters the benefit of a beneficial drawback circular through later clarifications unless the original circular granting the concession has been withdrawn, quashing orders rejecting 7% brand rate drawback claims on the bus body portion of exported passenger buses. Justice Hemant Chandangoudar allowed the petitions filed by Ashok Leyland Limited and set aside the revisional orders dated 8 March 2022 and the CBEC...

ITC Cannot Be Denied For Bona Fide GSTIN Reporting Mistake: Tripura High Court

The Tripura High Court on 27 July held that a taxpayer cannot be denied Input Tax Credit (ITC) due to a genuine mistake in reporting invoices under the wrong Goods and Services Tax Identification Number (GSTIN), when the error does not result in any loss of revenue to the Government. A Division Bench comprising Chief Justice M.S. Ramachandra Rao and Justice Biswajit Palit allowed the writ petition filed by Ashutosh Bandyopadhay and directed the GST authorities to permit rectification of Forms...

Karnataka High Court Rules Secret Commission Claims Need Evidence, Upholds ₹53.48 Lakh Disallowance

The Karnataka High Court on 9 July held that a taxpayer cannot claim deduction for alleged secret commission payments as business promotion expenditure without proving the claim through adequate evidence, and upheld the disallowance of Rs. 53.48 lakh claimed as a business deduction. A Division Bench of Justices S.G. Pandit and K.M. Manmadha Rao dismissed Rampur Arvind's (taxpayer) appeal and upheld the orders of the Income Tax Appellate Tribunal, the Commissioner of Income Tax (Appeals) and the...

Telangana High Court Upholds Mayuri Film's Tax Benefit, Says Unrescinded Notification Can't Be Overridden

The Telangana High Court on 24 July held that a tax concession granted through a Government notification cannot be withdrawn merely because a new entry is introduced in a tax schedule, unless the notification granting the benefit is expressly withdrawn, superseded or rescinded. A Division Bench of Justices P. Sam Koshy and Suddala Chalapathi Rao upheld the concessional sales tax benefit claimed by Mayuri Film Distributors on the sale of audio cassettes, holding that the Government Order...

Delhi High Court Asks VAT Officer To Decide Voltas' ₹1.79 Crore Refund Claim Within Two Weeks

The Delhi High Court has recently disposed of a writ petition filed by Voltas Limited seeking a VAT refund of ₹1.79 crore pertaining to the first quarter of the financial year 2017-18, after the Delhi government assured the Court that the company's representation would be decided within two weeks.A division bench of Justices Anil Kshetrapal and Shail Jain was hearing Voltas' plea seeking a direction to the Commissioner of Trade and Taxes to refund ₹1,79,07,807.During the hearing, counsel...