Excess Plywood No Ground To Penalise Entire Consignment If Rest Of Goods Are Documented: GSTAT Lucknow

The State Bench of the GST Appellate Tribunal (GSTAT) at Lucknow, on 27 October held that a penalty for excess goods found during transportation cannot be imposed on the entire consignment when the remaining goods are covered by valid documents. A Bench comprising Judicial Member Santosh Kumar Srivastava and Technical Member Arvind Kumar dismissed the Department's appeal against the First Appellate Authority's decision to reduce the penalty imposed on Mani Ply from Rs. 57,870 to Rs. 5,375.40...

Refund Of Pre-July 2022 Accumulated ITC Cannot Be Denied Based On CBIC Circular: GSTAT Hyderabad

The Hyderabad Bench of the Goods and Services Tax Appellate Tribunal (GSTAT) on 27 October held that refund of input tax credit (ITC) accumulated under an inverted duty structure before 18 July 2022 cannot be denied merely because the refund application was filed later. A Bench of Judicial Member Sushil Kumar Sharma and Technical Member Duvvuri Krishna Srinivas ruled that an executive circular cannot retrospectively restrict refund claims for an earlier period, and allowed Kedia Agro's appeal...

GST Demand Cannot Be Sustained On New Grounds Not Put To Taxpayer In Notice: GSTAT Bengaluru

On 27 October, the Goods and Services Tax Appellate Tribunal (GSTAT), Bengaluru, held that an appellate authority cannot uphold a GST demand on grounds that were never communicated to the taxpayer through a show-cause notice. A Bench comprising Judicial Member Prabhakaran P M and Technical Member Ravi Jesuraj S set aside the GST demand against Fortinet Technologies India Private Limited, holding that the department had failed to issue a proper show-cause notice and that the appellate authority...

GSTAT Delhi Directs Candeur Constructions To Pass On ₹1.63 Crore ITC Benefit To 188 Homebuyers

The Principal Bench of the Goods and Services Tax Appellate Tribunal (GSTAT), Delhi, has directed Candeur Constructions to pass on an ITC benefit of ₹1.63 crore, including GST, to 188 homebuyers of its Bengaluru project, Candeur Carlisle.It also directed the builder to pay 18% interest from the date the higher amount was collected from each homebuyer until the benefit is passed on.A Bench comprising Judicial Member Justice Mayank Kumar Jain and Technical Member A. Venu...

Delayed Stock Entries From Genuine Transactions Cannot Alone Justify Confiscation: GSTAT Lucknow

The GST Appellate Tribunal, Lucknow Bench, has held that a delay in recording genuine business transactions in the books of accounts does not, by itself, justify confiscation of stock. The tribunal observed, “There is a vast legal distinction between a delayed entry of a genuine transaction and an unaccounted transaction designed for clandestine removal. Delayed bookkeeping backed by regular commercial invoices cannot be branded as a statutory offense under Section 130.”A bench of Judicial...

Supplier's Retrospective GST Cancellation Not Enough To Deny ITC Without Verification: GSTAT Thane

The Goods and Services Tax Appellate Tribunal (GSTAT), Thane, on 22 October held that retrospective cancellation of a supplier's GST registration, by itself, does not justify denial of input tax credit (ITC) without independent verification of the transactions. A Bench comprising Judicial Member Ramesh Nair and Technical Member Prallhad S. Paranjape set aside the orders denying ITC to Trivesh Enterprises LLP and dismissing its appeals for non-prosecution, directing the GST authorities to...

GST Refund Cannot Be Denied Merely Due To Provisional ITC Reversal: GSTAT Lucknow

On 22 October, the Lucknow Bench of the Goods and Services Tax Appellate Tribunal (GSTAT) held that a provisional reversal of input tax credit (ITC) and a pending investigation into an alleged stock shortage cannot, by themselves, establish a tax liability or justify rejection of a GST refund claim. A Bench comprising Judicial Member Santosh Kumar Srivastava and Technical Member Arvind Kumar dismissed the tax department's appeal against the order allowing B.L. Agro Industries Limited a refund...

GST Refund Rejection Without Mandatory Notice Cannot Be Cured At Appellate Stage: GSTAT Thane

The Thane Bench of the Goods and Services Tax Appellate Tribunal (GSTAT) on 22 October held that a GST refund claim cannot be rejected without issuing a mandatory show cause notice and granting a hearing, and that an opportunity to present the case at the appellate stage cannot cure this statutory violation. A Bench comprising Judicial Member Ramesh Nair and Technical Member Prallhad S. Paranjape set aside the appellate orders upholding the partial rejection of refund claims filed by Lavino...

ITC Available On Interior Furnishing Of Rented Shops Where Tax Aspect Is Not Capitalized: GSTAT Thiruvanathapuram

The Goods and Services Tax Appellate Tribunal (GSTAT), Thiruvananthapuram Bench, has allowed Oxygen The Digital Shop to claim ₹11.23 lakh in Input Tax Credit (ITC) on carpentry, joinery and painting services used for interior work at its rented shops. It held that the GST component was not capitalised in the retailer's books of accounts. “Since the amount of GST is not capitalised, such amount of tax does not get covered under the restricted category of Section 17(5)(d),” the tribunal ruled. ...

GSTAT Ernakulam Allows Singapore Airlines' ₹45.92 Lakh GST Refund Claims For Cancelled COVID-Era Flights

The Goods and Services Tax Appellate Tribunal (GSTAT), Ernakulam Bench, has recently allowed Singapore Airlines' claims for a ₹45.92 lakh GST refund on tickets for flights cancelled during the COVID-19 pandemic.The tribunal found that the airline had refunded passengers the full ticket fare, including GST.“The appellant-airline is eligible for the refund of GST collected from the passengers and paid by them to the GST Department, but subsequently refunded entire amount of fare including GST to...

GSTAT Chandigarh Allows Deltron ₹2.90 Lakh GST Credit, Rejects ₹6.99 Lakh Claim

The GST Appellate Tribunal (GSTAT), Chandigarh, has allowed Deltron to claim ₹2.90 lakh in transitional tax credit on capital goods received after GST came into force. However, it rejected the company's claim for ₹6.99 lakh in credit on goods cleared for export before GST but exported after the new tax regime came into force.A Bench comprising Judicial Member Jatinder Pal Singh and Technical Member Pradeep Kumar Goel partly allowed the appeal filed by Deltron, a division of Continental Device...

GST Demand Cannot Be Confirmed Based On System-Generated Discrepancies Without Reconciliation: GSTAT Lucknow

The GST Appellate Tribunal (GSTAT), Lucknow Bench, has held that confirming a GST demand based purely on system-generated discrepancies, without a detailed one-to-one financial reconciliation, violates the spirit of law and fairness.The Division Bench of Judicial Member Santosh Kumar Srivastava and Technical Member Arvind Kumar made the observation while setting aside the original demand order and the first appellate order against Nitin Bakers Private Limited, involving ₹56.24 lakh in tax,...