CGST Act Bars Parallel Proceedings By State, Central GST Authorities Only For Same Subject Matter: Delhi HC

The Delhi High Court has recently held that the bar on parallel proceedings under Section 6(2)(b) of the Central Goods and Services Tax Act, 2017 applies only where proceedings by State and Central GST authorities relate to the same subject matter and not where they pertain to different financial years or distinct infractions.A Division Bench of Justices Nitin Wasudeo Sambre and Ajay Digpaul made the observation while dismissing a writ petition challenging an order confirming tax demand under...

Uttarakhand High Court Sets Aside GST Order Passed Same Day As Reply, Calls Hearing An “Eyewash”

Observing that passing an adjudication order on the very same day as filing of reply without granting a meaningful opportunity of hearing violates principles of natural justice, the High Court of Uttarakhand set aside GST demand and penalty proceedings against Poddar Ispat Pvt. Ltd.The bench, consisting of Chief Justice Manoj Kumar Gupta and Justice Subhash Upadhyay, stated that the mere recording of a hearing on the date of filing a reply does not satisfy the requirement of a fair...

Madras High Court Quashes GST Demand On GAIL, Says No Recovery If Tax Already Paid

The Madurai Bench of the Madras High Court has quashed a show cause notice issued to GAIL (India) Ltd. under Section 76 CGST Act, holding that recovery proceedings cannot be sustained where the tax collected has already been remitted to the Government, even if paid through another GST registration of the same entity. Section 76 of the CGST Act, 2017 provides that any person who collects an amount as representing tax must forthwith pay the same to the Government, irrespective of whether the...

Andhra Pradesh High Court Sets Aside GST Order Against Mytrah Energy Over Failure To Examine Nature of Supply

The Andhra Pradesh High Court has set aside a GST assessment order against Mytrah Energy India Pvt. Ltd., holding that the assessing authority failed to properly examine the nature of the transaction and wrongly applied a notification retrospectively.The Division Bench of Justice R. Raghunandan Rao and Justice T.C.D. Sekhar held that the assessment order was unsustainable for failure to examine the nature of supply and accordingly remanded the matter for fresh adjudication.The petitioner,...

Telangana High Court Refuses Challenge To Arrest Of Fino Payments Bank CEO In ₹840 Crore GST Case

The Telangana High Court has upheld the arrest of Fino Payments Bank CEO Rishi Nand Kishore Gupta in an alleged ₹840 crore GST evasion case, holding that the 24-hour safeguard under Article 22(2) of the Constitution was not violated and observing that his contention of being in custody prior to arrest did “not merit acceptance.”Dismissing his writ petition, a Division Bench of Chief Justice Aparesh Kumar Singh and Justice G.M. Mohiuddin held that Gupta was produced before the Magistrate within...

Madras High Court Holds Cut Tobacco Processed With Jaggery Water Is Unmanufactured Tobacco

The Madras High Court has recently held that cut tobacco processed by curing with jaggery water and sold in cut form would be classifiable as unmanufactured tobacco, setting aside advance rulings that had described it as manufactured chewing tobacco and subjected it to a higher compensation cess under GST.The court set aside the rulings of the Authority for Advance Ruling and the Appellate Authority for Advance Ruling, as well as a single judge's order that had upheld the description of the...

Delhi HC Dismisses GST Dept Review, Says It Could Have Withdrawn SCN Instead Of Inviting Order On Merits

The Delhi High Court has dismissed a review petition filed by the GST Department against an earlier ruling restricting retrospective cancellation of a firm's GST registration. The court observed that in the facts of the case, the Department, having chosen to invite a decision on merits instead of withdrawing the defective show cause notice and seeking liberty to issue a fresh one, could not subsequently seek to reopen the issue in review jurisdiction.A Division Bench of Justices Nitin Wasudeo...

Delhi High Court Quashes State GST Order Citing Overlapping Proceedings With CGST Authority

The Delhi High Court has quashed an order passed by the State GST Authority against an engineering firm, holding that in the facts of the case, where proceedings had already been initiated earlier by the Central GST authority and involved overlapping entities, the State authority ought not to have proceeded further having regard to the mandate of Section 6 of the Central Goods and Services Tax Act, 2017. A Division Bench of Justices Nitin Wasudeo Sambre and Ajay Digpaul was dealing with a...

Delay In GST Appeal Condonable On Showing Sufficient Cause: Gujarat High Court

The Gujarat High Court on 17 April, held that a short delay in filing an appeal under the GST regime can be condoned if the appellant demonstrates “sufficient cause”, and that appellate authorities must apply their mind to the reasons instead of mechanically rejecting appeals on limitation. A Division Bench comprising Justices A.S. Supehia and Pranav Trivedi allowed the writ petition filed by Manjulaben Vinod Patel and quashed the appellate order rejecting the appeal as time-barred. The judges...

Bombay High Court Quashes Infinx GST Refund Rejection After Hearing Adjournment Denied Despite Heavy Rains

The Bombay High Court has set aside a GST refund rejection against Infinx Services Private Limited, finding that the tax department shut the company out of the process by deciding the case without giving it a hearing, even after it asked for time citing heavy rains in Mumbai. A Bench of Justice G. S. Kulkarni and Justice Aarti Sathe held that the order had been passed without affording a personal hearing despite a specific request to reschedule the hearing on account of heavy rains in the city....

Input Tax Credit Blocking Cannot Continue Beyond One Year From Imposition: Bombay High Court

The Bombay High Court has recently reiterated that a restriction on utilization of Input Tax Credit in the Electronic Credit Ledger cannot continue beyond one year from the date of its imposition. A division bench of Justices G.S. Kulkarni and Aarti Sathe, examining Rule 86A(3) of the Central Goods and Services Tax Rules, 2017, observed, "Having heard learned Counsel for the parties and having perused the record, we are of the considered view that there appears to be much substance in the...

Delhi High Court Sets Aside GST Demand Order Despite Delay In Filing Writ, Cites Denial Of Hearing

The Delhi High Court has recently set aside a GST demand order after finding that the taxpayer was not given an opportunity of hearing, even though the writ petition was filed belatedlyA bench of Justices Nitin Wasudeo Sambre and Ajay Digpaul set aside a GST demand order passed under Section 73 of the Delhi Goods and Services Tax Act, 2017, while imposing costs and granting conditional relief to the petitioner.Petitioner had challenged an Order-in-Original confirming a tax demand of over Rs. 20...