Gujarat High Court Rejects Challenge To State Tax Inspector's Authority To Intercept Vehicles Carrying Goods

The Gujarat High Court has rejected a taxpayer's challenge to a State Tax Inspector's authority to sign Form GST MOV-01, which is issued during the interception of vehicles carrying goods for inspection. The court held that a 2019 order had expressly authorised State Tax Inspectors to intercept conveyances and inspect documents, devices, and goods.A bench of Justice Sangeeta K. Vishen and Justice P. M. Raval dismissed a petition filed by M/s Riddhi Siddhi Enterprises challenging the detention...

Bombay High Court Quashes Denial Of ₹6.29 Crore Transitional ITC Over Wrong TRAN-1 Entry

The Bombay High Court on 30 October allowed a petition filed by Laxmi Organic Industries Limited challenging the denial of transitional credit of Rs. 6.29 crore on the ground that it had been claimed under an incorrect provision of the Central Goods and Services Tax (CGST) Act, 2017. A Bench of Justices M.S. Karnik and Sandesh D. Patil held that transitional input tax credit (ITC) cannot be denied merely because a taxpayer mentioned an incorrect provision or column in Form TRAN-1, when its...

Madhya Pradesh High Court Refuses To Interfere With ₹1.78 Crore GST Demand Over Bogus ITC

The Madhya Pradesh High Court, on 4 November, declined to interfere with a GST demand of Rs. 1.78 crore, holding that disputes involving alleged fraudulent availment of Input Tax Credit (ITC) and disputed questions of fact should be examined through statutory appellate proceedings. A Division Bench of Chief Justice Alpesh Y. Kogje and Justice Vivek Jain dismissed a writ petition filed by Maa Narmada Aluminium Extrusion Private Limited, challenging the GST proceedings initiated against it. It...

GST Appeal Limitation Must Be Calculated In Calendar Months, Not 120 Days: Bombay High Court

The Bombay High Court has recently ruled that the limitation period for filing an appeal under the Goods and Services Tax (GST) law must be calculated in calendar months and cannot be treated as a fixed period of 120 days.A Division Bench of Justice M.S. Karnik and Justice Sandesh D. Patil, while agreeing with the company's contention that the limitation period could not be calculated as a fixed 120 days, observed:"We find substance in the submissions of learned Counsel for the Petitioner that...

GST Paid Under Wrong Tax Head Cannot Trigger Recovery Without Evasion: Bombay High Court

The Bombay High Court on 30 October held that payment of GST under the wrong tax head, without any deliberate attempt to evade tax, does not justify invoking Section 74 of the Central Goods and Services Tax (CGST) Act, 2017, when the amount can be transferred to the correct tax head. A Division Bench comprising Justices M.S. Karnik and Sandesh D. Patil allowed a petition filed by DHR Holding India Private Limited, holding that the GST department could transfer the tax paid under CGST and SGST...

GST Authorities Cannot Impose Penalty Contrary To Binding CBIC Circular: Gauhati High Court

The Gauhati High Court on 4 November observed that GST authorities cannot impose penalties under Section 122 of the Central Goods and Services Tax (CGST) Act, 2017, for availing Input Tax Credit (ITC) without actual receipt of goods or services when such action is prohibited by a binding CBIC circular. Justice Soumitra Saikia issued notice on a writ petition filed by G.M. Coke Industries, a partnership firm engaged in manufacturing coke in Assam, and restrained the authorities from taking...

Gauhati High Court Restrains GST Action Against Partner Over Firm's ₹16.21 Crore ITC Claim

The Gauhati High Court on 4 November passed an interim order in a petition filed by an individual partner of GM Coke Industries, restraining GST authorities from taking further action under a show cause notice proposing penalty under Section 122(1)(A) of the Central Goods and Services Tax (CGST) Act, 2017. Justice Soumitra Saikia observed that separate penalty proceedings against a partner for allegedly wrongful availment of Input Tax Credit (ITC) by a partnership firm may not be necessary...

Madras High Court Upholds Disciplinary Action Against Officer For Exceeding GST Rectification Powers

The Madras High Court, on 27 October, refused to interfere with disciplinary proceedings against State Tax officer T. Uma, who allegedly exceeded her statutory powers while passing rectification orders that substantially reduced tax demands against Tvl. Appaswamy Real Estates Limited. A Bench comprising Justices G. Jayachandran and E. Manoharan held that an officer's exercise of quasi-judicial powers does not shield her from disciplinary action where the charges disclose a prima facie case of...

Delhi High Court Grants Interim Protection From Arrest To Man In GST ITC Fraud Probe

The Delhi High Court has granted interim protection from arrest to a man accused of wrongful availment, utilisation and passing on of Input Tax Credit (ITC) through two firms in a Goods and Services Tax (GST) fraud investigation.Justice Mini Pushkarna directed that no coercive steps be taken against the Petitioner, subject to his joining the investigation conducted by the Anti-Evasion Wing of the Central Goods and Services Tax (CGST) Department.The Court has sought a reply and status report from...

Delhi High Court Sets Aside GST Order For Ignoring Taxpayer's Request For More Time To Submit Documents

The Delhi High Court has set aside an order passed by the GST Department against a civil engineering company, holding that the failure to consider the company's request for additional time to submit documents violated the principles of natural justice.The Division Bench of Justices Avneesh Jhingan and Amit Sharma observed that the Department was required to consider the request for an extension of time before passing the impugned order.“The minimum that was expected from a quasi-judicial...

Only Commissioner Can Record Reasons To Believe For GST Arrest, Not Inspector: Punjab & Haryana High Court

The Punjab and Haryana High Court has recently ruled that only the Commissioner can record "reasons to believe" before authorising an arrest under Section 69 of the Central Goods and Services Tax (CGST) Act, 2017. Reasons recorded by an Inspector cannot substitute the Commissioner's satisfaction.Justice Shalini Singh Nagpal ruled,"The language used in Section 69 of the CGST Act, leaves no room to doubt that it is the 'Commissioner' and the 'Commissioner', alone, who is required to form an...

Gujarat High Court Quashes GST Amnesty Rejection After Portal Adjustments Reduce Tax Liability To Nil

The Gujarat High Court on 28 October allowed a writ petition filed by R.J. Technologies, quashed the rejection of its application in Form GST SPL-02, and directed the authority to process the application within twelve weeks. A Bench of Justices A.S. Supehia and Vaibhavi D. Nanavati held that tax authorities cannot reject an application for waiver of interest and penalty under Section 128A of the Central Goods and Services Tax (CGST) Act, 2017, without considering adjustments accepted on the...