GST Weekly Flashback for the period 23 February to 1 March 2025.
Supreme court
RADHIKA AGARWAL V/s UOI: Key Rights Arrested Person Under GST Must Remember | Supreme Court [READ ORDER]
Case Title: Radhika Agarwal v. Union of India and Ors.
The Supreme Court has upheld the constitutional validity of GST Arrest Provisions and held that BNSS/CrPC Protections for Arrested Persons Apply to GST & Customs Acts.
Whether Time Limit For Adjudication Of GST Show Cause Notice And Passing Order Could Be Extended By Issuing Notifications? – Supreme Court Issues Notice
Case Title: M/S Hcc-Sew-Meil-Aag Jv Versus Assistant Commissioner Of State Tax & Ors.
The Supreme court has issued the notice in the SLP to hear on the issue whether time limit for adjudication of GST show cause notice and passing order could be extended by issuing notifications.
Section 168A of the GST Act was Challenged before the Supreme Court.
Anticipatory Bail Without FIR Permissible Under GST & Customs Act: Supreme Court
Case Title: Radhika Agarwal v. Union of India and Ors.
In a landmark verdict, the Supreme Court has ruled that individuals facing potential arrest under the Goods and Services Tax (GST) Act and the Customs Act can seek anticipatory bail, even if no FIR has been registered.
A bench led by Chief Justice Sanjiv Khanna, along with Justices MM Sundresh and Bela M Trivedi, delivered the judgment, affirming that provisions of the Code of Criminal Procedure (CrPC) and its successor, the Bharatiya Nagarik Suraksha Sanhita (BNSS), apply to GST and Customs cases.
Arrest Under GST: Supreme Court Acknowledges Allegations Of Coercion By Officials For GST Payments
Case Title: Radhika Agarwal v. Union of India and Ors.
The Supreme Court on Thursday observed that there is some merit in allegations that tax officials have been coercing individuals into paying Goods and Services Tax (GST) under the threat of arrest. The Court made this observation based on data presented before it while hearing a batch of petitions concerning the powers of arrest under the GST Act and the Customs Act.
BNSS/CrPC Protections for Arrested Persons Apply to GST & Customs Acts: Supreme Court
Case Title: Radhika Agarwal v. Union of India and Ors.
The Supreme Court has upheld the constitutional validity of GST Arrest Provisions and held that BNSS/CrPC Protections for Arrested Persons Apply to GST & Customs Acts.
The bench, comprising Chief Justice of India Sanjiv Khanna and Justices MM Sundresh and Bela M Trivedi, underscored that GST officials must strictly adhere to departmental circulars regarding arrests. The Court also dismissed the argument that customs officers function as police officers.
Delhi High Court
Pre-Deposit Made Under GST Instead Of Excise Act; Delhi High Court Directs CESTAT To Hear The Matter
Case Title: M/S Dd Interiors Versus Commissioner Of Service Tax & Anr
The Delhi High Court has quashed the order of the Customs, Excise and Service Tax Appellate Tribunal (CESTAT) by which appeal was returned for non-compliance of Section 35F of the Central Excise Act, 1944 as pre-deposit had been made under GST Act.
The bench of Justice Prathiba M. Singh and Justice Rajneesh Kumar Gupta has observed that the appeal could not have been rejected merely on the ground that it was deposited on a wrong account especially when the said integrated portal was not even available for the Petitioner at the time of the initial deposit.
Madras High Court
Madras High Court Denies ITC, Citing Lack Of E-way Bills & Transport Documents
Case Title: M/s.Devi Traders Versus The State Tax Officer
The Madras High Court has dismissed a batch of writ petitions and has denied the Input Tax Credit (ITC) citing lack of e-way bills and transport documents.
The bench of Justice C.Saravanan relying on established jurisprudence including the Supreme Court’s ruling in State of Karnataka vs. Ecom Gill Coffee Trading Pvt. Ltd., reiterated the principle that the burden of proof lies with the taxpayer claiming ITC to demonstrate the genuineness of the transaction and the actual receipt of goods.
Kerala High Court
Kerala High Court Extends GST Adjudication Deadline: What Triggered the 7-Day Relief?
Case Title: The Deputy Commissioner (Intelligence) Versus Minimol Sabu
The Kerala High Court has extended the GST adjudication deadline citing interim order passed in the writ petition staying further proceedings under Section 74 of the GST Act.
The bench of Justice A.K.Jayasankaran Nambiar and Justice Easwaran S. has observed that going by the time limit prescribed under sub-Section (10) of Section 74 of the CGST Act/SGST Act, the adjudication has to be completed by 8.2.2025. However, in view of the interim order passed in the writ petition staying further proceedings under Section 74, which was in operation for a period of seven days, the Revenue will get the benefit of the stay and the period of adjudication will expire only on 15.2.2025.
GST | Kerala High Court Distinguishes ‘Non-Service Of Notice’ And ‘Lack Of Knowledge Of Service Of Notice’
Case Title: M/S. RAMANATTU MOTOR CORP. Versus STATE OF KERALA
The Kerala High Court has distinguished between the terms ‘Non-Service Of Notice’ And ‘Lack Of Knowledge Of Service Of Notice’ under GST.
The bench of Justice Bechu Kurian Thomas has observed that there is a distinction between ‘non-service of notice’ and ‘not noticing or lack of knowledge of service of notice’. While ‘non-service of notice’ is a case of certain violation of the principles of natural justice, ‘not noticing or lack of knowledge of service of notice’ cannot have such a legal effect in every situation.
Karnataka High Court
Karnataka High Court Stays Adjudication Of SCN Demanding GST On Extra Neutral Alcohol
Case Title: Venkateshwara Power Project Versus GST Commissioner
The Karnataka High Court Dharwad Bench has stayed the adjudication of the show cause notice (SCN) demanding GST on extra neutral alcohol.
The bench of Justice M. Nagaprasanna has observed that the show causes notices demanding GST for multiple tax periods (i.e. for multiple years) which itself is flawed and therefore without jurisdiction.
Orissa High Court
Orissa High Court Stays 10% Pre-Deposit Demand On Remaining Disputed Tax Under GST
Case Title: Boddapati Rama Versus Joint Commissioner of State Tax
The Orissa High Court has stayed 10% pre-deposit demand on remaining disputed tax under GST.
The bench of Acting Chief Justice Arindam Sinha and Justice M.S. Sahoo has observed that there was a notification dated 16th August, 2024 made by Central revenue reducing the deposit to 10%. Now, State revenue has correspondingly notified on 29th October, 2024. In the circumstances, the writ petition be disposed of as covered by order dated 16th February, 2024 with modification for deposit of 10% of remaining disputed tax for order to remain stayed.
Statement Recorded U/S 70 Of GST Act Not Hit By S. 25 of Indian Evidence Act, 1872: Rajasthan High Court Cancels Bail Of Alleged GST Evader
Case Title: Union Of India Versus Gautam Garg
The Rajasthan High Court has cancelled the bail of GST Evader and held that statement recorded under section 70 of GST Act not hit by section 25 of Indian Evidence Act, 1872.
Jharkhand High Court
Jharkhand High Court Directs Dept. To Refund Rs. 45.60 Lakh To Tata Cummins Realized In Excess Under Amnesty Scheme
Case Title: M/s. Tata Cummins Private Limited Versus The State of Jharkhand
The Jharkhand High Court has directed the dept. to refund Rs. 45.60 Lakh to Tata Cummins realized in excess under the Amnesty Scheme.
The bench of Chief Justice M.S. Ramachandra Rao and Justice Deepak Roshan has observed that due to incorrect application of the Settlement Scheme, petitioner is denied its actual benefit resulting into a loss of Rs. 45,60,000 ( Rs. 2,79,06,859.70 – Rs.2,33,46,859.70) to petitioner.
Telangana High Court
GST SCN And Orders Without Proper Officer’s Signature Can’t Sustain Judicial Scrutiny: Telangana High Court
Case Title: M/s. Bigleap Technologies and Solutions Pvt. Ltd. Versus State of Telangana
The Telangana High Court has held that the Show Cause Notice (SCN) and orders under GST without proper officer’s signature cannot sustain judicial scrutiny.
The bench of Acting Chief Justice Sujoy Paul and Justice Renuka Yara has observed that various High Courts including Delhi, Andhra Pradesh, Kerala, Gauhati and this Court have taken the view that notice/order must contain the signature, and in absence thereof, they are invalid.
Orissa High Court
Orissa High Court Refuses Anticipatory Bail To GST Officer Accused Of Defalcating Public Money Worth Rs.71.03 Lakhs
Case Title: Kamalakanta Singh Versus State of Odisha
The Orissa High Court has refused the anticipatory bail to a GST officer accused of defalcating public money worth Rs.71.03 lakhs.
The bench of Justice V. Narasingh while considering the nature of allegation and alleged role ascribed to the GST officer in commission of economic offence, refused the anticipatory bail.
Calcutta High Court
S.69 CGST Act | Arrest Memo Attested By Driver Instead Of Family Members Or Neighbour; Calcutta High Court Grants Bail
The Calcutta High Court has granted the bail to the person who was arrested under Section 69 of the CGST Act on the ground that the arrest memo was attested by driver instead of family members or neighbours.
The bench of Justice Suvra Ghosh has observed that the arrest memo was attested by a driver who is neither a member of the petitioner’s family, nor a person of the locality from where the arrest is made. Therefore the arrest is in violation of the instruction issued by the authority as well as the mandate laid down by the Supreme Court in the case of D.K. Basu.
