Reversal Of ITC For Earlier Tax Period Cannot Be Deducted From ITC Availed During Refund Period: GSTAT

The Goods and Services Tax Appellate Tribunal (GSTAT), Ranchi, has held that an ITC reversal relating to an earlier tax period cannot automatically be deducted from the ITC availed during a refund period merely because the reversal was recorded during that period.The ruling concerned paragraph 43(c) of CBIC Circular No. 125/44/2019-GST, which the Revenue relied on to argue that ITC reversed through GSTR-3B during the refund period could not be treated as ITC availed during that period. Rejecting...

GST Authorities Arrest Man Who Appeared On Court's Direction: Punjab & Haryana HC Orders Immediate Release

The Punjab & Haryana High Court has ordered the immediate release of a man arrested by GST authorities after he appeared before them pursuant to the court's direction to cooperate with the investigation.A Bench of Chief Justice Ashwani Kumar Mishra and Justice Rohit Kapoor observed that Goyal had appeared before the authorities with the documents sought by them. The matter was already pending before the court and was listed for September 29, when the authorities were expected to report on...

CGST Act Permits Tax Liability To Be Determined After Death Of Person: Delhi High Court

The Delhi High Court has held that the Central Goods and Services Tax (CGST) Act permits tax, interest, or penalty liability to be determined even after the death of the person against whom the underlying liability arises.The Division Bench of Justices Anil Kshetarpal and Vimal Kumar Yadav held that Section 93 of the CGST Act does not require adjudicatory proceedings to have commenced during the lifetime of the deceased for liability to be determined after his death.“The provision preserves...

Delhi High Court Upholds ₹10.57 Crore GST Demand, Says Parallel Proceedings Barred Only For Same Subject Matter

The Delhi High Court has dismissed a plea challenging the ₹10.57 crore GST demand, holding that the subsequent proceedings initiated by the Delhi GST authorities were not barred merely because the Directorate General of GST Intelligence (DGGI) had earlier initiated proceedings against the Petitioner concerning overlapping transactions.The Division Bench of Justices Anil Kshetarpal and Rajneesh Kumar Gupta held that Section 6(2)(b) of the Central Goods and Services Tax Act, 2017, which seeks to...

GST Payable On Godown Rent Even For Exempt Agricultural Warehousing: Gujarat AAR

On 21 September, the Gujarat Authority for Advance Ruling (AAR) held that rent paid for hiring godowns from unregistered persons is taxable under GST under reverse charge, even when the godowns are used exclusively for providing exempt storage and warehousing services for agricultural produce. A Bench comprising SGST Member Sushma Vora and CGST Member Vishal Malani disposed of the application filed by Gujarat State Warehousing Corporation, holding that the hiring of godowns and the subsequent...

Sikkim High Court Sets Aside ₹37.93 Lakh Recovery Against Lupin Limited, Directs Fresh Review

On 23 September, the Sikkim High Court set aside a Rs. 37.93 lakh recovery against Lupin Limited under the Budgetary Support Scheme, directing the tax authorities to reconsider the matter after examining the company's explanation and supporting documents. Chief Justice A. Muhamed Mustaque found that the authorities had not properly considered Lupin's explanation on the ITC reflected in its GSTR-2A before concluding that it had received excess benefit under the scheme. The Bench observed: “If...

Madhya Pradesh High Court Advises GST Department To Send SMS/Email Alerts For Hearing Dates

The Madhya Pradesh High Court has advised the GST Department to introduce SMS or email alerts to parties or their advocates about hearing dates, after noting that many taxpayers were approaching the court complaining that they had not been served with hearing notices.A Division Bench of Justice Subodh Abhyankar and Justice Alok Awasthi made the suggestion while allowing a petition filed by Maple Overseas Trade Private Limited. The court set aside the dismissal of the company's appeal against a...

Pre-Deposit For GST Appeal To Be Governed By Law Existing On SCN Date: Delhi High Court

The Delhi High Court has held that the requirement of pre-deposit for filing an appeal under the Central Goods and Services Tax (CGST) Act would be governed by the statutory provision in force on the date of issuance of the show cause notice (SCN).The Division Bench of Justices Anil Kshetarpal and Bharat Parashar made the observation while dealing with a petition challenging a GST adjudication order concerning allegations that Petitioner had created and controlled 13 firms through which input...

Delhi High Court Rejects Challenge To GST Rule Making Supplier Tax Payment A Condition For ITC

The Delhi High Court has rejected a challenge to the constitutional validity of Section 16(2)(c) of the Central Goods and Services Tax (CGST) Act, 2017, which makes payment of tax by the supplier a condition for availing Input Tax Credit (ITC).The Division Bench of Justices Anil Khetarpal and Shail Jain held that the provision has already been upheld by the Supreme Court and that a recipient seeking ITC must establish, through cogent material, that the tax charged on the supply was actually...

Patna High Court Upholds CBIC Circulars Assigning 'Proper Officer' Functions Under GST Act To Central Tax Officers

The Patna High Court has rejected a challenge to three CBIC circulars assigning “proper officer” functions to Central Tax officers under the GST law, agreeing with the Bombay High Court's reasoning on the issue.“An analysis of the Notification dated 19.06.2017 and the other two Circulars would lead this Court to agree with the views expressed by the Hon'ble Bombay High Court,” a Division Bench of Justice Rajeev Ranjan Prasad and Justice Sunil Dutta Mishra observed.“Now, in our considered...

GSTAT Ernakulam Says ITC Eligibility Must Be Decided Under CGST Act, Sets Aside ₹7.07 Lakh Denial

The Ernakulam Bench of the Goods and Services Tax Appellate Tribunal (GSTAT) on 8 September held that refund of unutilised Input Tax Credit (ITC) cannot be denied on the ground of ineligibility unless the credit is first disallowed through proceedings under the prescribed provisions of the GST law. A Bench comprising Vice-President Subramanya Rayaprol and Technical Member Ramamoorthi Sriram allowed the appeal filed by Augustan Textile Colours, a unit of Augustan Knitwear Pvt Ltd, and set aside...

E-Way Bill Generated After Detention Cannot Cure GST Violation: GSTAT Bengaluru

The GST Appellate Tribunal, Bengaluru Bench, has dismissed an appeal against a penalty imposed on a taxpayer after GST authorities found that goods were being unloaded at a destination different from the one mentioned in the accompanying tax documents.The Tribunal held that the subsequent generation of an e-way bill and invoice after interception could not cure the violation under Section 129 of the CGST Act, as the required documents for the actual destination were not available when the...