Andhra Pradesh High Court Quashes GST Detention Over Expired E-Way Bill After Vehicle Breakdown

The Andhra Pradesh High Court on 16 July held that GST authorities cannot invoke detention proceedings merely because an e-way bill had expired when the delay in delivery of goods was caused by a vehicle breakdown and there was no evidence of tax evasion. A Division Bench of Justices Ninala Jayasurya and T.C.D. Sekhar allowed the writ petition filed by SLV Elite Spaces LLP and directed the GST authorities to drop further proceedings initiated under Section 129 of the GST Act (which provides for...

Madras High Court Upholds ₹2.66 Cr GST Recovery Against Former Director Of CBIGS Advertising

The Madras High Court on 7 July held that tax dues of a private company in liquidation can be recovered from its former director under Section 88(3) of the Central Goods and Services Tax (CGST) Act, 2017, unless the director proves that the non-recovery was not due to gross neglect, misfeasance or breach of duty. Justice C. Saravanan dismissed three connected writ petitions filed by CBIGS Apparels and Jewels, its partner Mrs. N. Seetha, and Yantur Manufacturing Private Limited challenging GST...

Absence Of Audit Not A Ground To Reject KVAT Return Revision: Kerala High Court

The Kerala High Court on 15 July held that a taxpayer's request to revise returns under the Kerala Value Added Tax (KVAT) Act cannot be rejected solely because its accounts were not audited under Section 42 of the Act. A Bench of Justice Harisankar V. Menon allowed the petition filed by Bhima Enterprises, holding: “A reading of the aforesaid order would show that it pertains to the transportation of certain gold jewellery allegedly not supported by the documents required under the statute. In...

Patna High Court Imposes ₹25,000 Costs On Taxpayer For Challenging GST Undertaking After Accepting Its Benefits

The Patna High Court, in the facts of the case, has held that a taxpayer who voluntarily furnishes an undertaking to obtain relief from GST authorities cannot subsequently challenge its validity after accepting the benefits flowing from it. It dismissed the writ petition filed by Umagaurav Private Limited and imposed costs of ₹25,000.A division bench of Justice Rajeev Ranjan Prasad and Justice Kumar Manish held that the petitioner, having secured the removal of restrictions on its bank account...

GST Cannot Be Deducted From Compensation For Compulsory Land Acquisition: Karnataka High Court

The Karnataka High Court has recently quashed the deduction of Goods and Services Tax (GST) from compensation awarded for compulsory acquisition of land, holding that such acquisition is not a "supply of goods or services" under the GST law."An immovable property cannot at any stretch of imagination is construed as goods. Therefore, there is neither supply of goods nor services, but an expropriation of the property of a citizen using statutory power. The petitioner has neither sold any goods nor...

Calcutta High Court Quashes GST Order, Says Notices Uploaded In 'Additional Notices' Tab Not Valid Service

The Calcutta High Court has set aside an ex parte GST adjudication order after holding that the taxpayer was denied a fair opportunity to respond to the show cause notice due to improper service of notices on the GST portal.It observed that the show cause notice, reminder, and adjudication order were uploaded only in the "Additional Notices and Orders" tab of the GST portal and not in the "Normal" tab. Justice Hiranmay Bhattacharyya held that such uploading does not amount to valid...

Punjab &Haryana High Court Grants Bail To Ludhiana Trader Accused Of ₹9.66 Crore Fake GST ITC Fraud

The Punjab & Haryana High Court has granted regular bail to a Ludhiana-based businessman accused of fraudulently availing Input Tax Credit (ITC) of nearly ₹9.66 crore under the GST regime.It observed that continued incarceration was not justified when the prosecution case was based primarily on documentary evidence.Justice Surya Partap Singh, while deciding the bail plea of Rohit Kumar Gupta, proprietor of Maa Steel, Ludhiana, noted that the petitioner had remained in custody for more than...

GST Law Does Not Mandate Three-Month Gap Between Notice And Adjudication Order: Madras High Court

The Madras High Court on 17 July held that GST law does not require a mandatory three-month gap between issuance of a show cause notice and passing of an adjudication order, clarifying that the three-month requirement only applies to the period between issuance of the notice and expiry of the statutory limitation period for passing the order. Justice Senthilkumar Ramamoorthy partly allowed writ petitions filed by Raj Machine Tools challenging two GST assessment orders for the financial year...

Patna High Court Quashes Mechanical GST Registration Cancellation, Imposes ₹15,000 Costs On Department

The Patna High Court on 17 July held that GST authorities cannot cancel GST registration or reject a revocation application without complying with the statutory safeguards mandated under law, ruling that orders passed mechanically in violation of the principles of natural justice are unsustainable. A Division Bench of Justices Rajeev Ranjan Prasad and Sunil Dutta Mishra allowed the writ petition filed by Munna Chaudhary, set aside the GST registration cancellation order, the order rejecting the...

GST Refund Interest Must Run From Original Application Date After Illegal Rejection: Gujarat High Court

The Gujarat High Court on 2 July held that GST authorities cannot deny interest on refunds by treating a refund application filed pursuant to a Court order as a fresh application, ruling that where the original rejection of a refund claim is set aside as illegal, interest under Section 56 of the Central Goods and Services Tax (CGST) Act (which provides for interest on delayed refunds) must be calculated from the date of the original refund application. A Division Bench of Justices A.S. Supehia...

CBIC Forms Working Group To Examine PAN-Based Centralised GST Administration For Multi-GSTIN Taxpayers

The Central Board of Indirect Taxes and Customs (CBIC) has constituted a Working Group to examine a proposal for centralised administration of taxpayers holding multiple Goods and Services Tax (GST) registrations under the same Permanent Account Number (PAN). The proposal covers taxpayers whose GST registrations fall under different Central Tax jurisdictions.The move is aimed at promoting ease of doing business and improving administrative efficiency. It seeks to streamline GST administration...

Right To Cross-Examination Cannot Be Denied Over Unretracted GST Statements: Kerala High Court

The Kerala High Court on 8 July held that GST authorities cannot reject a taxpayer's request to cross-examine witnesses merely because the witnesses have not retracted their earlier statements, observing that cross-examination is necessary to test the truthfulness of evidence relied upon during adjudication. Justice A.A. Ziyad Rahman passed the order while allowing the writ petition filed by Emas Gold and Diamonds LLP against a GST adjudication order passed following an investigation by the...