Gujarat High Court Holds GST Order Against Pacific Cyber Technology Invalid For Overlooking Reply

The Gujarat High Court on 5 February set aside a GST detention and demand order passed against Pacific Cyber Technology Pvt. Ltd., observing that the adjudicating authority failed to consider the explanation submitted by the company regarding delay in movement of goods due to a technical fault in the vehicle. A Division Bench comprising Justice A.S. Supehia and Justice Pranav Trivedi held: “It appears that the appellate authority has not even remotely adverted to the explanation tendered by...

Bombay High Court Stays Multiple GST Notices On Leasehold Transfers Until Supreme Court Ruling

The Bombay High Court on 25 February granted interim protection to taxpayers facing GST proceedings on the assignment of leasehold rights, directing that recovery actions and adjudication of show cause notices be stayed until the Supreme Court of India decides the issue. A Division Bench of Justices G.S. Kulkarni and Aarti Sathe was hearing multiple writ petitions filed by companies challenging GST demands on the transfer or assignment of leasehold rights in industrial plots and buildings,...

Cash Seizure Without 'Reason to Believe' Violates CGST Act: Bombay High Court

The Bombay High Court on 10 March quashed the seizure of Rs. 1 crore in cash by the Directorate General of GST Intelligence (DGGI) from Smruti Waghdhare, holding the action arbitrary and without authority under the CGST Act. A Division Bench of Justice G.S. Kulkarni and Justice Aarti Sathe was hearing a writ petition challenging the seizure, under which Rs. 60 lakh was recovered from her premises and Rs. 40 lakh from her parents' residence during search operations. The judges held: “On a...

Bombay High Court Allows GST Fraud Case Accused To Travel Abroad, Says Right To Travel Part Of Personal Liberty

The Bombay High Court has recently observed that the right to travel abroad forms part of the fundamental right to personal liberty under Articles 14 and 21 of the Constitution and that such liberty cannot be restricted merely on the basis of apprehensions that are not supported by material on record. The court permitted a businessman facing prosecution in a GST fraud case to travel overseas for business as well as personal reasons, observing that conditions requiring prior permission before...

Input Tax Credit Transfer On Company Amalgamation Not Restricted By State: Gujarat High Court

The Gujarat High Court on 5 March held that input tax credit (ITC) cannot be denied on the amalgamation of companies merely because the transferor and transferee entities are registered in different States. A Division Bench comprising Justice A. S. Supehia and Justice Pranav Trivedi heard a petition filed by Emerson Process Management (India) Pvt. Ltd. challenging the refusal of GST authorities to allow the transfer of ITC following the amalgamation of Pentair Valves and Controls India Pvt....

Supreme Court Issues Notice On Plea Over Denial Of Use Or Refund Of Compensation Cess ITC After Coal Cess Scrapped

The Supreme Court on Monday issued notice on a writ petition challenging the denial of utilisation or refund of accumulated Compensation Cess input tax credit (ITC) after the cess on coal was scrapped. The petition, filed by Carbon Resources Pvt. Ltd., claims the change has left the company with around Rs 23 crore in compensation cess credit that has become unusable because no mechanism was provided to either utilise or refund it. A bench comprising Chief Justice of India Surya Kant and...

GST Summary Notice Cannot Replace Statutory Show Cause Notice: Gauhati High Court

The Gauhati High Court has held that a summary of a show cause notice issued in Form GST DRC-01 cannot substitute the requirement of a proper show cause notice under the GST law.Justice Soumitra Saikia quashed the order dated August 29, 2024, issued against the taxpayer, Md. Shoriful Islam, under the GST regime after observing that the tax authorities had only issued a summary of the show cause notice along with an attachment containing the determination of tax.The petitioner was issued a...

Madras High Court Upholds Same-Month ISD Credit Rule Under CGST, Dismisses Reliance Jio's Challenge

The Madras High Court on 5 March upheld the validity of Rule 39(1)(a) of the Central Goods and Services Tax Rules, 2017, which mandates that an Input Service Distributor (ISD) must allocate tax credits within the same month in which an invoice is received. A Bench comprising Chief Justice Manindra Mohan Shrivastava and Justice G. Arul Murugan was hearing a batch of writ petitions filed by Reliance Jio Infocomm Ltd, challenging the provision governing the timing of distribution of Input Service...

Gujarat High Court Grants Bail To Lawyer Accused Of Filing GST Return For 'Non-Existent, Fake Entities'

The Gujarat High Court recently granted bail to an advocate who was arrested for allegedly filing GST returns for firms that are claimed to be non-existent, fake entities.Sanghani has been booked under Sections 132 (1)(b) (whoever issues any invoice or bill without supply of goods or services or both in violation of the provisions of the Act, or the rules made thereunder leading to wrongful availment or utilisation of input tax credit or refund of tax), and 132 (1) (c) (whoever avails input tax...

Affiliation Fees Collected By Universities From Colleges Liable To GST: Madras High Court

The Madras High Court has held that affiliation fees collected by universities from colleges are liable to Goods and Services Tax (GST). The Court ruled that such services do not fall within the GST exemption for services relating to the admission of students or the conduct of examinations.The Division Bench comprising Justice G. Jayachandran and Justice K. K. Ramakrishnan answered a reference arising from writ petitions filed by Bharathidasan University challenging GST notices issued by the...

Assignment Of Leasehold Rights Is Transfer of Immovable Property, Not Taxable as GST Supply: Bombay High Court

The Bombay High Court at Nagpur, recently following a Gujarat High Court ruling, has held that assignment of leasehold rights in an industrial plot amounts to transfer of benefits arising out of immovable property and does not constitute “supply of services” under the GST law, and therefore GST cannot be levied on such transactions. A division bench of Justices Anil L. Pansare and Nivedita P. Mehta passed the ruling while allowing a writ petition filed by Vidarbha Beverages and its partners...

Bombay High Court Sets Aside Customs Orders On IGST Refund Interest To Jindal Drugs, Directs Fresh Determination

The Bombay High Court has recently set aside orders passed by customs authorities determining the interest payable on an IGST refund to Jindal Drugs Pvt. Ltd., holding that the authorities failed to explain how the interest had been calculated under Section 56 of the Central Goods and Services Tax Act, 2017. A division bench of Justice G. S. Kulkarni and Justice Aarti Sathe found that the impugned orders contained no reasoning showing that the statutory provision governing interest on delayed...