Delhi High Court Says Admissibility Of Electronic Evidence In GST Dispute Must Be Decided By Appellate Authority

The Delhi High Court has refused to entertain a writ petition challenging a GST demand on the ground that it was based on inadmissible third-party electronic evidence, holding that questions relating to the admissibility, authenticity, and evidentiary value of electronic records are matters to be examined by the statutory appellate authority and not in writ jurisdiction.The Division Bench of Justices Anil Kshetrapal and Shail Jain dismissed a petition challenging an order passed under Section 74...

Delhi High Court Refuses To Entertain Challenge To CGST Act Provision Governing Provisional Release Of Seized Goods

The Delhi High Court has declined to interfere with a writ petition challenging the constitutional validity of Section 67(6) of the Central Goods and Services Tax Act, 2017, which governs the provisional release of goods seized during search proceedings.The Division Bench of Justices Anil Kshetrapal and Shail Jain observed that a petitioner questioning the validity of a statutory provision must establish that it infringes a constitutional mandate.Petitioner had contended that the expression "on...

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...

Rajasthan High Court Rejects Second Bail Plea In ₹48 Crore GST Evasion Case

The Rajasthan High Court has rejected a second bail application filed by a man accused of being the kingpin of an alleged ₹48.41 crore GST evasion syndicate, ruling that bail granted to a co-accused cannot by itself entitle another accused to the same relief. Justice Praveer Bhatnagar observed, "It is a settled proposition of law that parity, by itself, is not the sole or determinative ground for grant of bail as while considering the plea of parity, the court is required to independently...

Gauhati High Court Says How GST Proceedings Are to Be Initiated Can't Be Decided in Writ Petition

The Gauhati High Court has ruled that a writ petition is not the appropriate forum to decide whether GST proceedings should be initiated under the normal recovery provisions or the fraud-related provisions of the CGST Act, as that issue requires factual adjudication by the proper officer.Single Judge Justice Devashis Baruah observed that whether a taxpayer committed fraud, made a wilful misstatement or suppressed facts to evade tax can only be determined after examining the facts and, therefore,...

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...

Natural Justice Can't Be 'Sheet Anchor' To Bypass GST Appeal Remedy: Bombay High Court

The Bombay High court has ruled that a taxpayer cannot bypass the statutory appellate remedy under the GST law and directly invoke writ jurisdiction merely by alleging a violation of the principles of natural justice.Holding that such pleas must be supported by specific facts, the court observed, "Taking refuge under natural justice in every case, as a sheet anchor would not justify filing of a Writ Petition under Art. 226, sans justification in the manner the law mandates. This more...

Plea In Delhi High Court Challenges GST Demand Notices Based On Uncorrected Return

The Delhi High Court on Tuesday heard a petition challenging GST demand notices allegedly issued on the basis of an uncorrected return, despite the petitioner's claim that revised returns had been considered during audit proceedings.The division bench of Justices Anil Kshetrapal and Shail Jain was hearing a plea filed by an engineering design consultant company.Senior Advocate Puneet Agrawal for the Petitioner-company submitted that while filing its GST return for the financial year 2014–15, a...

Delhi High Court Allows Exporter To Approach GST Authorities For Interest On Refund

The Delhi High Court has permitted an exporter to approach the GST authorities for payment of interest on an allegedly delayed refund under Section 56 of the Central Goods and Services Tax Act, 2017.The division bench of Justices Anil Kshetrapal and Shail Jain was hearing a petition filed by a lithium-ion battery recycler, which is engaged in the export of unwrought cobalt powder used in scrap batteries.Petitioner submitted that it had applied on January 22, 2022, for refund of ₹31.44 lakh...

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...

Allahabad High Court Seeks Centre's Response On GST Appellate Tribunal Vacancies In Uttar Pradesh

The Allahabad High Court has sought an affidavit from the Department of Revenue, Ministry of Finance, Government of India detailing the efforts being made to fill vacancies in the GST Appellate Tribunal benches in Uttar Pradesh. In a petition filed by S.S. Pharma, the issue of GST appellate tribunals not sitting was brought before the High Court. Justice Piyush Agrawal had directed the state counsels to seek instructions on the appointments, sittings, and disposal of cases by the Appellate...