Automobile Dealers Association Moves Supreme Court Over Compensation Cess Lapse After GST 2.0 Reforms, Claims Loss Of Rs.2500 Cr

The Federation of Automobile Dealers Association has moved the Supreme Court seeking relief related to compensation cess input tax credit worth Rs.2500 crores, which stands locked in dealers ledgers as a consequence of recent revision in the Goods and Services Tax (GST) framework.Briefly put, a notification issued on September 17 scrapped the compensation cess on motor vehicles. This was done, as per the FADA, "without providing any transitional or refund mechanism". Therefore, dealers'...

Supreme Court To Examine If Transfer Of Leasehold Rights Attracts GST

The Supreme Court is set to examine whether the assignment of leasehold rights constitutes a “transfer of land” or amounts to a “supply of service” under the Goods and Services Tax (GST) regime.A bench of Justice Pankaj Mithal and Justice Prasanna B. Varale was dealing with Centre's plea challenging a Gujarat High Court judgment that held that assignment of leasehold rights in land and building does not amount to a taxable supply under the GST Act. Before the High Court, M/s Life Sciences...

Supreme Court Issues Notice To IndiGo On Plea Of Customs Dept & GST Council Against Ruling On IGST Exemption For Imported Parts

The Supreme Court on Monday sought a response from IndiGo's parent company, InterGlobe Aviation, on a petition filed by the Customs Department challenging a Delhi High Court ruling that exempted the airline from paying Integrated Goods and Services Tax (IGST) on imported aircraft parts that were repaired and serviced abroad.A Bench comprising Justice BV Nagarathna and Justice R Mahadevan issued notice to InterGlobe Aviation while hearing the department's plea against the March 2024 judgment of...

S.6(2)(b) CGST Act | Central Authority Can Issue Summons Despite State Authority Initiating Proceedings : Supreme Court

The Court also recommended greater coordination and intelligence-sharing between State and Central GST authorities.

Let GST Council Look Into Tracking Of GST Paid On Foreign OIDAR Services : Supreme Court

The Supreme Court recently disposed of a public interest litigation seeking directions for setting up a mechanism to track services provided by foreign entities in India under the Goods and Services Tax (GST) regime. A bench of Justice BV Nagarathna and Justice KV Viswanathan passed the order after briefly hearing Advocate Charu Mathur, who appeared for the petitioner.During the hearing, Advocate Mathur submitted, “If Facebook provides some services or OpenAI provides some services, there is no...

S.129 CGST Act | Assessee Doesn't Waive Right To Challenge Levy By Mere Payment Of Penalty To Release Goods : Supreme Court

The proceedings conclude only as per a formal order passed under S.129(3) of the Act, the Court held.

GST | Bail Should Be Normally Granted For Offences Under S 132 CGST Act Unless Extraordinary Circumstances Exists : Supreme Court

The Supreme Court recently expressed surprise at the High Court and the Magistrate Court denying bail to a person accused of committing offences under Section 132 of the Central Goods and Services Tax Act.The Court observed that in cases like this, bail should normally be granted. The offences alleged against the appellant were under Clauses (c), (f) and (h) of Section 132(1) of the Central Goods and Services Tax Act, 2017. The maximum sentence is of 5 years with fine.In this case,...

Can GST Act Timelines Be Relaxed For Bonafide Errors? Supreme Court Appoints Amicus Curiae, Issues Notice To CBIC

The Supreme Court recently issued notice to the Central Board of Indirect Taxes and Customs (CBIC) over the recurrent issue of not allowing rectification of bonafide errors made after the lapse of prescribed deadlines under the CGST Act. The bench of CJI Sanjiv Khanna and Justices Sanjay Kumar and KV Viswanathan was hearing a challenge by the Union against the decision of the Bombay High Court which allowed the rectification of bonafide errors by the assessee in GSTR-1 Form despite missing...

'Timelines To Rectify Bonafide GST Form Errors Must Be Realistic' : Supreme Court Asks CBIC To Re-examine Provisions

The Supreme Court recently underscored the need for the Central Board of Indirect Taxes and Customs to fix realistic timelines for correcting bonafide errors by the assesses in forms when filing GST returns. The bench of CJI Sanjiv Khanna and Justice Sanjay Kumar was hearing a challenge to the Bombay High Court order which allowed an assesee to rectify its form GSTR-1 after missing the deadline under S. 39(9) of the CGST Act. The order was challenged by the Central Board of Indirect Taxes...

Supreme Court Upholds Constitutionality Of GST Act Provisions On Arrest & Summons

The Court held that the power to arrest and summon was incidental to the power to levy and collect tax.

Arrest Under GST Act Cannot Be Made Merely To Investigate If Cognizable & Non-Bailable Offence Has Been Committed : Supreme Court

An order of arrest must be passed recording reasons to believe that the accused has committed a cognizable and non-bailable offence.

Anticipatory Bail Application Maintainable Against Arrest Under GST Act : Supreme Court Overrules Its Previous Judgments

The Supreme Court has overruled its previous decisions which held that anticipatory bail applications were not maintainable with respect to offences under the Goods and Services Tax Act.A three-judge bench comprising Chief Justice of India Sanjiv Khanna, Justice MM Sundresh and Justice Bela Trivedi overruled the two-judge bench judgments in State of Gujarat v. Choodamani Parmeshwaran Iyer and Another and Bharat Bhushan v. Director General of GST Intelligence, Nagpur Zonal Unit Through Its...