GST
Bombay High Court Sets Aside Order Denying IGST Refund To Lubrizol, Orders Fresh Consideration
The Bombay High Court has set aside an order rejecting a refund claim of IGST on export of services, holding that the authority failed to properly consider the petitioner's contentions and the nature of the agreements between the parties. A Division Bench comprising Justices G.S. Kulkarni and Aarti Sathe was hearing a writ petition filed by Lubrizol Advance Materials India Pvt. Ltd., which had challenged the rejection of its refund claim of Rs 56,11,885 for July 2024 on the ground that the...
Supreme Court Allows Zoomcar To File GST Appeal After Rajasthan HC Disposed Its Writ Without Granting Liberty
The Supreme Court has recently permitted Zoomcar India Pvt. Ltd., a car-sharing platform, to file a statutory appeal against GST assessment orders arising from proceedings for the financial year 2019–20, after the Rajasthan High Court disposed of its writ petitions without granting liberty to pursue the appellate remedy. A bench comprising Justice J.B. Pardiwala and Justice K.V. Viswanathan was dealing with special leave petitions challenging the Rajasthan High Court's orders, which had...
Karnataka High Court Sets Aside Ex-Parte GST Order Passed Without Allowing Reply To Show Cause Notice
The Karnataka High Court has set aside an ex-parte GST order passed against Medizen Labs Pvt. Ltd. after noting that the adjudicating authority issued the order without considering any reply from the taxpayer. The court observed that, in the facts of the case, it would be appropriate to give the assessee an opportunity to respond to the show cause notice before the matter is decided on merits. A single-judge bench of Justice S. Sunil Dutt Yadav was hearing a writ petition filed by the...
Gujarat High Court Grants Interim Relief To Export Units In Kandla SEZ From Cess Liability
The Gujarat High Court on 26 February, held that Esskay Niryat Corporation and RR Exports operating from the Kandla Special Economic Zone (SEZ), are protected from coercive action under the Health Security and National Security Cess Act, 2025, while the matter is pending before the Court. A Division Bench of Justice A.S. Supehia and Justice Pranav Trivedi, while hearing petitions filed by the two units, granted interim relief by staying recovery steps and issued notice to the Union...
No GST On Tariff, Licence Fees Collected By Haryana Electricity Commission: Punjab Haryana High Court
The Punjab and Haryana High Court on 26 February set aside a show cause notice seeking GST on tariff petition and licence fees collected by the Haryana State Electricity Regulatory Commission, holding that these fees arise from statutory regulatory functions and are not in the course of business. A Division Bench of Justice Lisa Gill and Justice Ramesh Chander Dimri allowed the writ petition and quashed the notice, observing:“Learned counsel for respondents points out that review has been...
GST On Iced Tea 5%, Beverages Without Fruit Pulp Or Juice 40%: West Bengal AAR Clarifies
The West Bengal Authority for Advance Ruling (AAR) has ruled that non-alcoholic beverages not containing fruit pulp or fruit juice fall under other non-alcoholic beverages and attract GST at 20% CGST and 20% SGST, while iced tea preparations and tea extracts are classifiable as extracts, essences and concentrates of tea, and preparations based on such extracts, attracting GST at 2.5% CGST and 2.5% SGST. A coram of Joint Commissioner, CGST & CX, Shafeeq S and Senior Joint Commissioner, SGST...
Gujarat High Court Holds GST Order Against Pacific Cyber Technology Invalid For Overlooking Reply
The Gujarat High Court on 5 February set aside a GST detention and demand order passed against Pacific Cyber Technology Pvt. Ltd., observing that the adjudicating authority failed to consider the explanation submitted by the company regarding delay in movement of goods due to a technical fault in the vehicle. A Division Bench comprising Justice A.S. Supehia and Justice Pranav Trivedi held: “It appears that the appellate authority has not even remotely adverted to the explanation tendered by...
Bombay High Court Stays Multiple GST Notices On Leasehold Transfers Until Supreme Court Ruling
The Bombay High Court on 25 February granted interim protection to taxpayers facing GST proceedings on the assignment of leasehold rights, directing that recovery actions and adjudication of show cause notices be stayed until the Supreme Court of India decides the issue. A Division Bench of Justices G.S. Kulkarni and Aarti Sathe was hearing multiple writ petitions filed by companies challenging GST demands on the transfer or assignment of leasehold rights in industrial plots and buildings,...
Cash Seizure Without 'Reason to Believe' Violates CGST Act: Bombay High Court
The Bombay High Court on 10 March quashed the seizure of Rs. 1 crore in cash by the Directorate General of GST Intelligence (DGGI) from Smruti Waghdhare, holding the action arbitrary and without authority under the CGST Act. A Division Bench of Justice G.S. Kulkarni and Justice Aarti Sathe was hearing a writ petition challenging the seizure, under which Rs. 60 lakh was recovered from her premises and Rs. 40 lakh from her parents' residence during search operations. The judges held: “On a...
GSTAT New Delhi Directs Tata Play To Deposit ₹450 Crore In Consumer Welfare Funds For GST Profiteering
The Principle Bench of the Goods and Services Tax Appellate Tribunal (GSTAT) in New Delhi on 11 March directed Tata Play Ltd. to deposit Rs. 450.18 crore in the Central and State Consumer Welfare Funds in a 50:50 ratio, holding that it engaged in GST profiteering. A Division Bench comprising President Justice (Retd.) Dr. Sanjaya Kumar Mishra and Technical Member A. Venu Prasad concluded that the company had failed to pass on the tax benefit to consumers as mandated under the GST...
Bombay High Court Allows GST Fraud Case Accused To Travel Abroad, Says Right To Travel Part Of Personal Liberty
The Bombay High Court has recently observed that the right to travel abroad forms part of the fundamental right to personal liberty under Articles 14 and 21 of the Constitution and that such liberty cannot be restricted merely on the basis of apprehensions that are not supported by material on record. The court permitted a businessman facing prosecution in a GST fraud case to travel overseas for business as well as personal reasons, observing that conditions requiring prior permission before...
Input Tax Credit Transfer On Company Amalgamation Not Restricted By State: Gujarat High Court
The Gujarat High Court on 5 March held that input tax credit (ITC) cannot be denied on the amalgamation of companies merely because the transferor and transferee entities are registered in different States. A Division Bench comprising Justice A. S. Supehia and Justice Pranav Trivedi heard a petition filed by Emerson Process Management (India) Pvt. Ltd. challenging the refusal of GST authorities to allow the transfer of ITC following the amalgamation of Pentair Valves and Controls India Pvt....