Gauhati High Court
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...
Service Tax Cannot Be Demanded Solely Based On Form 26AS Data Without Inquiry: Gauhati High Court
The Gauhati High Court on 20 February, held that the Revenue Department cannot demand Service Tax from a taxpayer, solely on the basis of information provided in Form 26AS. The Division Bench of Justice Michael Zothankhuma and Justice Shamima Jahan heard an appeal filed by the Principal Commissioner of CGST, Dibrugarh, against a CESTAT Kolkata order that had set aside a service tax demand of Rs. 6,39,09,190 imposed on a contractor. The Bench held: “The show cause notice dated 21.10.2019 and...
Gauhati High Court Allows Writ Despite Arbitration Clause After Finding ESIC's Action In GeM Contract Arbitrary
The Gauhati High Court has recently allowed a writ petition against ESIC authorities over non-payment of dues under a government procurement contract, despite the existence of an arbitration clause, after finding the state authority's conduct arbitrary.The observation came in a case arising out of a Government e-Marketplace procurement in which an ESIC hospital withheld payment even after issuing an acceptance certificate for medical equipment supplied under the contract. The court directed the...
GST Registration Cannot Be Cancelled Based On Investigative Dictation Alone: Gauhati High Court
The Gauhati High Court on 17 February, held that cancellation of GST registration cannot be sustained when it is based on vague allegations and issued at the behest of the investigating wing, without independent application of mind by the proper officer. A Bench of Justice Arun Dev Choudhury allowed a writ petition was filed by Ankit Choudhary, sole proprietor of Ankit Enterprises, challenging a show cause notice, the subsequent order cancelling his GST registration, and the order rejecting...
Gauhati High Court Stays GST Demand On Flats Given For Free To Landowners
The Gauhati High Court on 7 January stayed coercive action pursuant to a GST demand raised on flats provided free of cost to landowners under a development agreement. A Bench of Justice Soumitra Saikia was hearing a writ petition filed by a developer challenging a consolidated show cause notice issued under Section 74 of the Central Goods and Services Tax Act, 2017 (CGST), covering multiple financial years from 2017–18 to 2022–23. The notices proposed a levy of GST on flats handed over free of...
GST Registration Cancelled For Non-Filing Of Returns Can Be Revived On Compliance: Gauhati High Court
The Gauhati High Court has reaffirmed that cancellation of a GST registration for continuous non-filing of returns does not permanently shut the door on restoration, so long as the taxpayer later files all pending returns and clears tax dues along with interest and late fees. A Single Judge Bench of Justice Sanjay Kumar Medhi observed that even where registration has been cancelled for prolonged non-compliance, the proper GST officer continues to have the authority to revive it upon full...
Gauhati High Court Rejects Bail Plea In ₹8.59 Crore GST Fraud Case
The Gauhati High Court has recently denied bail to a petitioner in Rs. 8.59-crore fake Input Tax Credit (ITC) scam, observing that the allegations disclose an organized and well-planned fraud involving misuse of the GST system. A bench comprising Justice Pranjal Das noted that custodial interrogation was necessary as the investigation was at a crucial stage and that granting bail could hamper efforts to unearth the larger conspiracy. Bahadur Islam, the petitioner, was arrested for alleged...
BNSS Procedures Mandatory For GST Arrests Despite Revenue Nature Of Investigation: Gauhati High Court
The Gauhati High Court held that even though GST investigations are revenue in nature, arrests made by GST officers must strictly comply with the mandatory procedural safeguards prescribed under the Bharatiya Nagarik Suraksha Sanhita, 2023 (BNSS). Justice Pranjal Das opined that even with regard to arrest by revenue authorities under GST, the procedural compliance under Sections 35/47/48 B.N.S.S. are essential, failing which, the arrest may become bad in law. In the case at hand,...
GST Registration Can Be Restored If Returns And Dues Are Cleared: Gauhati High Court
The Gauhati High Court has allowed a writ petition seeking restoration of Goods and Services Tax (GST) registration which had been cancelled due to non-filing of returns for a continuous period of six months. A single judge bench of Justice Kardak Ete was hearing the petition filed by a proprietor engaged in execution of works contracts, whose GST registration was cancelled by the GST authorities after issuance of a show cause notice alleging continuous default in filing returns. The...
Clause 8 Of Assam GST Reimbursement Scheme Prima Facie Ultra Vires: Gauhati High Court Stays SCN Against Patanjali Foods
The Gauhati High Court found that Clause 8 of the Assam Industries [Tax Reimbursement for Eligible Units] Scheme, 2017, which restricts input tax credit, runs contrary to the Constitutional framework and the provisions of the CGST Act. Consequently, the bench stayed the operation of the show-cause notices (SCN) issued to Patanjali Foods Limited. Justice Manish Choudhury was addressing a case in which Patanjali Foods Limited, the assessee, challenged the constitutional validity of...
Cryptic Show Cause Notice Without Factual Details Invalidates GST Registration Cancellation: Gauhati High Court
The Gauhati High Court held that a GST registration cannot be cancelled on the basis of a cryptic show cause notice, which merely quotes statutory provisions without disclosing the factual grounds. Justice Sanjay Kumar Medhi noted that apart from stating the provisions of Section 29(2)(e) of the CGST Act, there are no facts or any details stated in the show cause notice. In the case at hand, the assessee's/petitioner's GST registration was cancelled through a show cause notice. An...