High Court
Delhi High Court Slams GST Authorities For 'Mechanically' Cancelling Registration Of BoAt's Parent Company
The Delhi High Court has slammed the GST authorities for cancelling the registration of Imagine Marketing Ltd., the parent company of smart wearables brand boAt, without considering the company's replies.A division bench of Justices Prathiba M. Singh and Shail Jain further criticised the GST Appellate Authority, which upheld the cancellation in a 'cavalier' manner. The judges remarked,“The present petition reveals a sad situation where a reputed company is being made to deal with an unjustified...
Karnataka High Court Orders Refund Of ₹10 Crore, Says Payment During GST Search Was 'Not Voluntary' U/S 74(5) CGST Act
The Karnataka High Court held that the assessee's payment of Rs. 10 crores could not be treated as a voluntary payment under Section 74(5) of the CGST Act (Central Goods and Services Tax Act), as the DRC-03 shows 'NIL' entries for both interest and penalty. The bench observed that the 'NIL' entries clearly indicated that the payment was made by the assessee under coercion and under the threat of arrest. Justice S.R. Krishna Kumar stated that prior to the search and inspection...
Cannot Cancel GST Registration Without Passing Reasoned Speaking Order: Allahabad High Court
The Allahabad High Court has held that while cancelling GST registrations, authorities must pass reasoned and speaking orders. It held that doing otherwise would render the order unsustainable in the eyes of the law. “Once the impugned cancellation order has been passed without putting any proper notice or affording any opportunity of hearing to the petitioner, the same itself is in violation of principles of natural justice,” held Justice Piyush Agarwal. The petitioner, a real...
Delhi High Court Imposes ₹1 Lakh Cost On Senior Citizen Who Failed To Attend Personal Hearing Over ₹1.95 Crore GST Demand
The Delhi High Court has directed the Customs Department to grant one more opportunity to a septuagenarian woman, who failed to appear for personal hearing in connection with ₹1,95,11,160 demand raised against her firm.The Petitioner is the sole proprietor of the firm, who has a dealership agreement with M/s. Hindustan Petroleum Corporation Limited in respect of domestic & commercial Liquified Petroleum Gas for a period of 10 years. A notice was issued to the Petitioner's firm relating to...
UPGST Act | Confiscation Notice U/S 130 Cannot Be Issued For Mere Violation Of Record-Maintenance Requirements U/S 35: Allahabad HC
Recently, the Allahabad High Court reiterated that notices under Section 130 of the Uttar Pradesh Goods and Service Tax Act 2017 for confiscation and levy of penalty, could not be issued for alleged violation of maintenance of accounts and records as required under Section 35 of the Act. It was held that such notices under Section 130 could only be issued once the department had determined the liability of tax under Sections 73 or 74 of the Act. The Court relied on the judgement of...
Not Reasonable To Expect Taxpayer To Check Every Tab On GST Portal: Calcutta High Court Orders Appeal To Be Heard Despite Delay
The Calcutta High Court has held that where an adjudication order under the GST regime is uploaded on the GST Portal only under the “View Additional Notices and Orders” tab rather than the primary “View Notices and Orders” tab the resulting delay in filing appeal is to be condoned, considering that taxpayers cannot reasonably be expected to check multiple tabs for final orders. A Single Bench of Justice Om Narayan Rai, while hearing a writ petition filed under the WBGST/CGST Act,...
'Infraction Of Natural Justice': Delhi High Court On One-Day Notice Given For Personal Hearing Against GST Demand
The Delhi High Court has said that granting mere one-day notice to an assessee for attending personal hearing with respect to proposed GST demands amounts of 'infraction' of natural justice.The observation was made by a division bench of Justices Prathiba M. Singh and Saurabh Banerjee while hearing Petitioner-firm's challenge to dismissal of its appeal against demand on the ground of it being barred by delay.The demand was raised in respect of certain short payments and difference in Input Tax...
Can Customs Issue SCN For IGST Recovery? Delhi High Court Issues Notice To Customs & GST Dept; Seeks Joint Affidavit
The Delhi High Court has issued notice in a writ petition against the Show Cause Notice by the Customs Department, instead of the GST Department, for recovery of Integrated Goods and Services Tax (IGST) amounting to about Rs. 5 lakhs from the exporter. The Division Bench comprising Justice Prathiba M. Singh and Justice Shail Jain has listed the matter for February 24, 2026 while observing that “However, insofar as the question as the inter-play between the provisions of the Customs...
MP High Court Dismisses Builder's Plea Seeking Refund Of Differential GST On Account Of Upward Rate Revision
The Madhya Pradesh High Court has dismissed writ petition by a builder seeking reimbursement or refund of differential 6% GST on account of increase in rate (from 12% to 18%) on government works contract w.e.f. July 18, 2022. Pursuant to the recommendation of the 47th GST Council Meeting which approved suggestions of the Group of Ministers on Rate Rationalization, increased GST rate (from 12% to 18%) on works contract was notified vide Notification No. 03/2022 Central Tax (rate) dated...
S.74(5) | GST Proceedings Can Be Closed On Payment Of 15% Pre-SCN Penalty Where Tax Already Deposited Prior To SCN: Delhi High Court
The Delhi High Court recently allowed Delhi Sales Corporation to deposit pre-SCN penalty contemplated under Section 74(5) of the Goods and Services Tax Act, despite issuance of show cause notice under Section 74(8).This, after a division bench of Justices Prathiba M. Singh and Shail Jain noted that the Petitioner-Corporation had already deposited tax and interest in terms of Section 74(5).For context, section 74 pertains to Determination of tax not paid or short paid. It contemplates issuance of...
Educational Consultancy Services For Foreign Universities Qualify As Export Of Service, Entitled To GST Refund: Delhi High Court
The Delhi High Court has held that foreign education consultancy services to students in exchange for admission based commission from foreign universities qualify as 'export of services'.A division bench of Justices Prathiba M. Singh and Shail Jain thus held that Global Opportunities Private Limited will be entitled to claim GST refund on export of services under Section 54 of the Central Goods and Services Tax (CGST) Act, 2017.The Court further added that the entity cannot be termed as a mere...
GST | Assessee Must Be Given Personal Hearing Since SCN Lacked Reasons: Delhi High Court Quashes Demand Against Stock Broker
The Delhi High Court has set aside the demand raised against a stock broker, noting that both the show cause notice as well as the final order were bereft of any reasons, disabling the broker to make effective representation.“It is seen that the SCN actually does not give any reasons…Even the impugned order does not give any reasons,” a division bench of Justices Prathiba M. Singh and Shail Jain observed.The Petition was filed by M/s RBC Financial Services Pvt. Ltd., engaged in stock broking and...