“Notification Issued Without GST Council's Recommendation”: Gauhati HC Sets Aside Notification Extending Time Line For Issuance Of Order For A.Y. 2018-19 And 2019-20

The Gauhati High Court allowed the batch of writ petitions challenging the Notification No. 56/2023 dated 28.12.2023 extending the period of limitation for issuance of Order u/s 73(10) of the CGST Act, 2017 for the Assessment Year 2018-19 and 2019-20.The Court opined that the existence of the recommendation is a sine qua non for exercising the power under Section 168A to extend the timelines and without the recommendations, the exercise of the power would be legally not sustainable. The Bench...

“Assessee Entitled To Hearing If Pre-Deposit Is Made”: Gauhati High Court Grants Fresh Hearing

The Gauhati High Court while granting a fresh hearing to the assessee stated that the benefit of hearing has to be given to the assessee as the statutory deposit has already been made by the assessee. The Bench of Justice Arun Dev Choudhury observed that “This court though cannot find fault with the appellate authority in non-entertaining the appeal due to non-compliance of Section 79(5), however this court in exercise of its power under Article 226 of the Constitution of India, in the...

No Element Of Misstatement And Intention To Evade Payment Of Service Tax: Gauhati High Court Quashes Demand & Penalty

Finding that the Assessee company had provided every detail regarding availment of CENVAT Credit in the ST-3 Returns, and the same was considered by the Central Excise Commissioner, the Gauhati High Court held that the fact of wilful misstatement or suppression should specifically be mentioned in the show-cause notice. Since the Department had not misstated any fact with intent to evade the payment of service tax, the Division Bench of Chief Justice Vijay Bishnoi and Justice Suman...

Purchaser Can't Be Punished For Failure Of Seller To Deposit Tax: Gauhati High Court

The Gauhati High Court has held that a purchasing dealer cannot be punished for the act of the selling dealer in case the selling dealer had failed to deposit the tax collected by it.The bench of Chief Justice Vijay Bishnoi and Justice Suman Shyam has observed that the Department is precluded from invoking Section 9(2)(g) of the DVAT to deny ITC to a purchasing dealer who has bona fide entered into a purchase transaction with a registered selling dealer who has issued a tax invoice reflecting...

Gauhati High Court Directs Assistant Commissioner To Release Amount Of Interest On Delayed Excise Duty Refund To GAIL

The Gauhati High Court has directed that assistant commissioner to release the amount of interest on delayed excise duty refund to GAIL India.The bench of Justice Devashis Baruah has observed that the Division Bench writ petition, while disposing of the writ petition, held that Section 11B of the Central Excise Act, 1944 did not exclude a claim of refund made in terms of the notification dated 08.07.1999. The Division Bench observed and directed that the petitioners would be entitled to interest...

State GST Dept. Can't Take Benefit Of Notification Which Is Ultra Vires CGST Act, 2017: Gauhati High Court

The Gauhati High Court has held that the State GST Authorities cannot take the benefit of Notification No. 56/2023-CE, which is also otherwise ultra vires the CGST Act, 2017.The bench of Justice Devashis Baruah has noted that the GST Council has not made any recommendation till date, and in spite of that, the Central Board of Indirect Taxes and Customs issued a Notification bearing No. 56/2023-CE dated 28.12.2023, thereby extending the period to pass the order under Section 73(9) of the CGST...

Writ Jurisdiction Can't Be Invoked In View Of Arbitration Clause Except For Specific Circumstances: Gauhati High Court

The Gauhati High Court bench of Justice Michael Zothankhuma has held that writ jurisdiction cannot be invoked in the presence of an arbitration clause, except under specific circumstances. The bench observed that the Petitioner did not demonstrate a violation of fundamental rights, principles of natural justice, or that the proceedings were without jurisdiction. Brief Facts: The matter pertained to a termination order issued by Addl. Principal Chief Conservator of Forests...

Interest Can't Be Levied When No Taxable Due Is Found: Gauhati High Court

The Gauhati High Court has held that once the assessment order of the authorities is set aside and the matter is remanded back and assessed, no taxable interest can be levied.The bench of Justice Arun Dev Choudhury has observed that in a judicial system that is administered by the court, one of the primary principles to keep in mind is that the court under the same jurisdiction must have similar opinions regarding similar questions, issues, and circumstances. If opinions given on similar legal...

Panel Of Arbitrator Proposed By Railways Would Have Certain Relationship With Railways, Violates 7th Schedule: Gauhati High Court

The Gauhati High Court bench of Justice Kalyan Rai Surana has held that the panel of arbitrators of Railways would have a certain amount of relationship with the Railways and therefore, they would be covered by the 7th schedule of the Arbitration and Conciliation Act, 1996. The 7th Schedule of the Arbitration and Conciliation Act, 1996, lists the categories of persons who are ineligible to be appointed as arbitrators due to potential conflicts of interest. These categories include...

Arbitral Tribunal With Serving/Retired Railway Officers Violates Section 12(5) Of Arbitration Act: Gauhati High Court

The Gauhati High Court bench of Justice Michael Zothankhuma has held that Railways cannot constitute an Arbitral Tribunal consisting of serving/retired Railway Officers, as it was not in consonance with Section 12(5) and 7th Schedule of the Arbitration and Conciliation Act, 1996. Section 12(5) deals with the grounds of ineligibility of an individual to act as an arbitrator. It states that a person shall be ineligible to be appointed as an arbitrator if he falls under any of the...

No Provision Mandating Assessee To Install All Capital Goods In Year Of Procurement Itself To Avail Cenvat Credit: Gauhati High Court

The Gauhati High Court has held that it is not mandatory for the assessee to install all capital goods in the year of procurement itself so as to avail CENVAT credit.The bench of Chief Justice Vijay Bishnoi and Justice Suman Shyam has observed that as long as the CENVAT credit is availed during the period of exemption available under the Notification dated July 8, 1999, the claim of the assessee would not stand extinguished merely because the CENVAT credit claim was not lodged nor availed during...

No Bar On Invoking Arbitration Despite Alternative Remedy Under RERA Act: Gauhati High Court

The Gauhati High Court bench of Justice Michael Zothankhuma has held that arbitration can be invoked to settle a real estate dispute, despite the existence of an alternative legal remedy under the Real Estate (Regulation and Development) Act (RERA Act). The High Court held that there was there is no inherent conflict or repugnancy between the RERA Act and the Arbitration Act. It held that while the RERA Act provides a specific mechanism for resolving real estate disputes, the presence...