GST Weekly Flashback for the period 1 December 2024 to 7 December 2024.
Kerala High Court
Whether Separate Notification For Cross-Empowerment Of State Officials Under GST Act Is Required ? Kerala High Court Refers IssueTo Division Bench
Case Title: Pinnacle Vehicles And Services Private Limited Versus Joint Commissioner
The Single bench of the Kerala High Court has referred the issue of whether separate notification for cross-empowerment of state officials under GST Act is required to the division bench.
The bench of Justice Gopinath P. has observed that a reading of Section 6(1) of the CGST Act makes it clear that the officers appointed under the State Goods and Services Tax Act or the Union Territory Goods and Services Tax Act are authorised to be proper officers for the purposes of the Act, subject to such conditions as the Government shall, on the recommendations of the Council, by notification, specify.
Kerala High Court Dismisses Petition Challenging GST Assessment Order After 4 Years
Case Title: Baiju George Versus CGST
The Kerala High Court has dismissed the writ petition challenging GST assessment order after 4 years.
The bench of Justice Gopinath P. has observed that though Article 226 of the Constitution of India does not fix any period of limitation for the filing of a writ petition, it is settled law that a writ petition can be dismissed on the ground of inordinate delay in filing the writ petition.
Delhi High Court
Delhi High Court Quashes Show Cause Notice, Order Which Were Uploaded On GST Portal Under “View Additional Notice Tab”
Case Title: Carona Electricals Through Its Proprietor Prabhat Kadyan Versus Commissioner Of Delhi Goods And Services Tax And Anr
The Delhi High Court has quashed the show cause notice and order which were uploaded on the GST Portal under “view additional notice tab”.
The bench of Justice Yashwant Varma and Justice J. Dharmesh Sharma has observed that the architecture of the Goods and Services Tax portal was duly modified and amended and now all notices are available to be viewed under the “General Notices” tab also. However, this modification was brought about only on 16 January 2024. The SCN and order precede that date.
Amalgamating Company And Transactions Undertaken Can’t Be Subject To GST: Delhi High Court Quashes SCN Issued To HCL Infosystems
Case Title: HCL Infosystems Ltd. Versus Commissioner Of State Tax & Anr
The Delhi High Court has quashed the show cause notice issued to HCL Infosystems and held that amalgamating company and transactions undertaken cannot be subject to GST.
The bench of Justice Yashwant Varma and Justice Dharmesh Sharma has observed that Section 87 essentially seeks to preserve and identify the transactions which may have occurred between two or more companies which ultimately amalgamate and merge.
Unaccounted Manufacture And Clearance Built On Sketchy Evidence Without Concrete Corroboration; Minimum Requirement Of Clandestine Removal Not Fulfilled: Delhi High Court
Case Title: Commissioner Of Central Tax, GST Delhi East Versus A S P Metal Industries
The Delhi High Court in the case of Commissioner Of Central Tax, GST Delhi East Versus A S P Metal Industries has held that the case of unaccounted manufacture and clearance was built on sketchy evidence without any concrete corroboration and whatever evidence formed basis of the case of the Revenue fell short of the minimum requirement of credible case of clandestine removal.
The bench of Justice Ravinder Dudeja and Justice Yashwant Varma has observed that mere fact that the respondent-assessee agreed to deposit the duty amount to avoid any kind of litigation, itself cannot be held to be the basis for confirming the duty demand against the assessee.
Jammu & Kashmir High Court
Jammu & Kashmir High Court Dismisses GST Dept. Appeal Of Monetary Limit Below Rs. 2 Crores
Case Title: Commissioner of Central GST & Central Versus M/S V.S Industries
The Jammu & Kashmir High Court has dismissed the appeal filed by the GST Department citing the monetary limit below Rs. 2 Crores.
The bench of Chief Justice Tashi Rabstan and Justice Puneet Gupta has observed that as per the new Litigation Policy dated 06.08.2024, the Central Board of Indirect Taxes and Customs has fixed the monetary limits below which appeal shall not be filed in the CESTAT, High Court and Supreme Court.
Telangana High Court
Telangana High Court Uphold State-Wise GST Payment On Work Contract
Case Title: L and T PES JV Versus Assistant Commissioner of State Tax
The 𝐓𝐞𝐥𝐚𝐧𝐠𝐚𝐧𝐚 𝐇igh 𝐂ourt has 𝐮𝐩𝐡e𝐥𝐝 the 𝐬𝐭𝐚𝐭𝐞 𝐰𝐢𝐬𝐞 GST Payment 𝐨𝐧 𝐰𝐨𝐫𝐤𝐬 𝐜𝐨𝐧𝐭𝐫𝐚𝐜𝐭 in the case of L and T PES JV Versus Assistant Commissioner of State Tax.
The bench of Justice P.Sam Koshy and Justice Laxmi Narayana Alishetty has observed that since the place of supply is determined depending on the proportion of work executed by L&T & PES and location of supplier in both the States, it falls under the category of intra-state supply under Section 8 of the IGST Act with respect to the proportion of works executed in respective States by the contractors registered in the respective States. Now it is clear that the nature of supply is intra- state supply in proportion to the works carried out in each State. When the nature of supply is intra-state, the tax liability shall be discharged individually in each State to the extent of proportion of the works executed.
Calcutta High Court
Lack Of GST Evasion Intent: Calcutta High Court Quashes Penalty For Transporting Goods After E-Way Bill Expiry
Case Title: Excellent Polycon Private Limited -Vs- The State Tax Officer
The Calcutta High Court has quashed the penalty for transporting goods after e-way bill expiry as there was lack of intention of GST evasion.
The bench of Justice Rajarshi Bharadwaj has observed that procedural compliance under the GST framework is crucial, penalties imposed purely for procedural lapses without evidence of tax evasion or malicious intent may not serve the legislative intent.
Punjab and Haryana High Court
Once Matter Is Dropped At ASMT-10 Level, No Further Proceedings Can Be Initiated U/S 74 Of GST Act: Punjab & Haryana High Court
The Punjab & Haryana High Court in the case of J.S.B. Trading Co. versus State of Punjab has held that once matter is dropped at ASMT-10 Level, no further proceedings can be initiated under Section 74 Of GST Act.
The bench of Justice Sanjeev Prakash Sharama and Justice Sanjay Vashisth has observed that a Proper Officer cannot take contradictory views in DRC-01A and ASMT-12. Accepting the taxpayer’s response in ASMT-12 signifies that the matter is resolved. Once proceedings are dropped under Section 61, reissuing notices for the same matter under Section 74 breaches procedural fairness.
Rajasthan High Court
Rajasthan High Court Dismisses Writ Petition Challenging GST On Mining Services At SCN Stage
The Jaipur Bench of Rajasthan High Court in the case of M/s Barminco Indian Underground Mining Services LLP Versus Deputy Commissioner has dismissed writ petition challenging GST on mining services at the stage of show cause notice.
The bench of Chief Justice Manindra Mohan Shrivastava and Justice Uma Shanker Vyas has it is not a case where the authority concerned lacks jurisdiction. It is not a case where mala fides have been alleged. In the absence of there being a case of violation of principles of natural justice.
Madras High Court
GST ITC Can’t Be Claimed On T-Shirts And Gold Coins Purchased For Sales Promotional Activity: Madras High Court
Case Title: M/s.ARS Steels and Alloy International Private Limited Versus The State Tax Officer
The Madras High Court in the case of M/s.ARS Steels and Alloy International Private Limited Versus The State Tax Officer held that the Input Tax Credit (ITC) under GST cannot be claimed on t-shirts and gold coins purchased for sales promotional activity.
The bench of Justice C.Saravanan has observed that as per Section 17(5) of the respective GST enactments, notwithstanding anything contained in sub-section (1) of section 16 and sub- section (1) of section 18, input tax credit shall not be available in respect of the supplies as stipulated in sub-clause (a) to (i) of Section 17 (5) of the respective GST enactments. Sub-clause (h) to Section 17(5) of the respective GST enactments makes it clear that no input tax credit shall be available in respect of the goods lost, stolen, destroyed, written off or disposed of by way of gift or free samples.
AAR
ITC Required To Be Reversed On Stock Destroyed In Fire Accident: Telangana AAR
Applicant’s Name: Geekay Wires
The Telangana Authority of Advance Ruling (AAR) has ruled that Input Tax Credit (ITC) is not required to be reversed on stocks destroyed in fire accidents completely.
The bench of S.V. Kasi Visweswara Rao and Sahil Inamdar have observed that ITC is required to reverse when the raw materials procured are lost in the fire ITC is required to reverse accidents before use in manufacture of finished goods.
