GST Weekly Flashback for the period 20 October to 26 October 2024.
Table of Contents
Supreme Court – GST Weekly Flashback
PROPER OFFICER NOT EMPOWERED TO SEIZE CURRENCY UNDER SECTION 67(2) OF CGST ACT: SUPREME COURT DISMISSES DEPT’S SLP
Case Title: Commissioner Of CGST Versus Deepak Khandelwal
The Supreme Court while dismissing the Special Leave Petition (SLP) filed by the department on the issue of whether the proper officer is empowered to seize currency under section 67(2) of CGST Act, 2017.
SUPREME COURT GRANTS BAIL TO ACCUSED CLAIMING RS. 40K CRORES FAKE ITC BY CREATING 2600 FAKE FIRMS
Case Title: Rajiv Jindal Versus The State Of U.P.
The Supreme Court has granted bail to the accused who was involved in 2600 fake firms registration and the input tax credit (ITC) availed with these 2600 Firms was more than Rs. 40,000 Crores.
Delhi High Court – GST Weekly Flashback
ALLEGED WRONGFUL AVAILMENT OF ITC; DELHI HIGH COURT DIRECTS COMPANY TO FILE OBJECTIONS, SEEK REVOCATION OF PROVISIONAL ATTACHMENT OF BANK ACCOUNT
Case Title: Triloki Trading V/S Directorate General Of Gst Intelligence (Dggi) Hqrs. & Ors
The  Delhi High Court has directed the company to file objections and seek revocation of provisional attachment of bank account on the allegation of the wrongful availment of ITC in accordance with Rule 159 of the Central Goods and Services Tax Rules, 2017.Â
The bench of Justice Yashwant Varma and Justice Ravinder Dudeja has observed that any person whose property is attached may [file an objection in FORM GST DRC-22A] to the effect that the property attached was or is not liable to attachment, and the Commissioner may, after affording an opportunity of being heard to the person filing the objection, release the said property by an order in Form GST DRC-23.
WRIT JURISDICTION CAN’T BE INVOKED TO SETTLE GRIEVANCE AGAINST PRIVATE PARTY FOR ILLEGALLY CLAIMING GST ITC: DELHI HIGH COURT IMPOSES RS. 50K COST
Case Title: Mehul Mamgain Versus Union Of India
The Delhi High Court while imposing the cost of Rs. 50,000 held that writ jurisdiction cannot be invoked to settle private grievances against private parties for illegally claiming GST ITC.
TEMPORARY SUSPENSION OF BUSINESS ACTIVITY ON ACCOUNT OF ILL HEALTH CAN’T WARRANT GST REGISTRATION CANCELLATION: DELHI HIGH COURT
Case Title: Ram Niwas Versus Commissioner Of Central Goods And Services Tax & Anr
The Delhi High court has held that the temporary suspension of business activity on account of ill health would not warrant GST Registration Cancellation.
The bench of Justice Yashwant Varma and Justice Ravinder Dudeja has observed that the proceedings under DRC-01 are independent of the proceedings for cancellation of GST registration and cannot be a ground for cancellation of GST registration or even for rejecting the application for revocation of cancellation of registration. The recovery of any amount, if found due, can always be made irrespective of the status of registration.
Bombay High Court – GST Weekly Flashback
REJECTION OF GST APPEALS CITING NON-SIGNING OF PETITION BY AUTHORISED SIGNATORY OF SBI GENERAL INSURANCE, TOO HYPERTECHNICAL: BOMBAY HIGH COURT
Case Title: SBI General Insurance Company Ltd. Versus UOI
The Bombay High Court has quashed the order rejecting the GST appeals citing non-signing of petition by authorised signatory of SBI General Insurance on the grounds that the approach of commissioner was too hypertechnical.
The bench of Justice M.S. Sonak and Justice Jitendra Jain did not approve of the appellate authorities adopting such shortcuts and dismissing the appeals, even without allowing the appellants to either establish that the signatory was authorised to sign the appeal memo or to place on record resolutions authorising such signatory with the necessary powers. Denial of such opportunity violates the principles of natural justice and fair play, not to mention avoidable harassment and pressure on the Court’s docket.
Karnataka High Court – GST Weekly Flashback
PRACTICE OF ISSUING SINGLE/CONSOLIDATED SHOW CAUSE NOTICE FOR MULTIPLE ASSESSMENT YEARS CONTRAVENES PROVISIONS OF CGST ACT: KARNATAKA HIGH COURT
Case Title: Veremax Technologie Services Limited Versus The Assistant Commissioner Of Central Tax
The Karnataka High Court has held that the practice of issuing a single, consolidated show cause notice for multiple assessment years contravenes the provisions of the CGST Act.
RECOVERY DURING PENDENCY OF INVESTIGATION AGAINST ARTICLE 265 OF CONSTITUTION; KARNATAKA HIGH COURT DIRECTS RS.2.50 CRORES REFUND
Case Title: M/S. Kesar Colour Chem Industries V/S The Intelligence Officer
The Karnataka High Court has held that the recovery during pending adjudication is contrary to law and accordingly, contrary to Article 265 of the Constitution of India, the amount of Rs.2.50 crores is required to be refunded with interest as would be applicable in case of refund.
Rajasthan High Court – GST Weekly Flashback
RAJASTHAN HIGH COURT STAYS BLOCKING OF ELECTRONIC CREDIT LEDGER UNDER RULE 86A OF GST RULES
Case Title: Lipika Tech Pvt. Ltd. Versus The Deputy Commissioner (State Tax) & Ors.
The Rajasthan High Court has stayed the blocking of electronic credit ledger (ECrL) under Rule 86A of the GST Rules.
Patna High Court – GST Weekly Flashback
PATNA HIGH COURT STAYS RECOVERY UNTIL GST TRIBUNAL IS MADE FUNCTIONAL SUBJECTED TO 10% PRE-DEPOSIT
The Patna High Court has stayed the recovery until the GST tribunal is made functional and subjected to 10% pre-deposit.
PATNA HIGH COURT ALLOWS CONSIDERATION OF APPEAL ON MERITS REJECTED BY APPELLATE AUTHORITY CITING MANDATORY 10% PRE-DEPOSIT
Case Title: M/s Raiyan Traders v/s The State of Bihar
The Patna High Court has allowed consideration of appeal on merits which was rejected by the appellate authority on the ground that Mandatory 10% pre-deposit has been paid by utilising the electronic credit ledger.
AAR – GST Weekly Flashback
SOFTY ICE CREAM NOT DAIRY PRODUCT, ATTRACTS 18% GST: RAJASTHAN AAR
Applicant’s Name: M/s VRB Consumer Product Pvt Ltd.
The Rajasthan Authority of Advance Ruling (AAR) has held that Vanila flavour Softy Ice Cream Not Dairy Product and 18% GST is levied.
