GST Weekly Flashback for the period 13 October TO 19 October 2024
Table of Contents
Bombay High Court – GST Weekly Flashback
BOMBAY HIGH COURT QUASHES UNREASONED ORDER BLOCKING ITC LEDGER CITING CYRIL LASRADO JUDGEMENT
Case Title: Bhansali Industries v/s Union of India
Blocking ITC ledger without any reasoned order was quashed by the Bombay High Court citing Cyril Lasrado Judgement.
The bench of Justice M.S. Sonak and Justice Jitendra Jain has observed that the credit ledger has been unblocked during the pendency of the writ petition. The order is absolutely bereft of any reason. Reasons are the live link between the mind of the decision maker and the decision. The right of appeal is rendered nugatory in absence of a reasoned order.
Uttarakhand High Court – GST Weekly Flashback
Value Of Free Fuel Not To Be Included In Transaction Value Of GTA Service For Levy Of GST: Uttarakhand High Court
Case Title: New Jai Hind transport Service Versus Union of India and others
The Uttarakhand High Court has held that the value of free fuel should not be included in the transaction value of Goods Transport Agency (GTA) service for levy of Goods and Service Tax (GST).
The bench of Chief Justice Ritu Bahri and Justice Rakesh Thapliyal while quasing the AAAR’s ruling observed that where diesel is filled free of cost (FOC) by the service recipient and is not included in the value of GTA service, then the cost of fuel cannot be added to the payment made by the service recipient to the transporter, and further GST be charged from the transporter.
Punjab & Haryana High Court
CGST ACT | PUNJAB & HARYANA HIGH COURT ORDERS DEPARTMENTAL ACTION AGAINST ASSISTANT COMMISSIONER FOR NON-COMPLIANCE OF APPELLATE ORDERS
Case Title: M/s Proxima Steel Forge Pvt. Ltd. v/s Union of India and others
The Punjab and Haryana High Court has ordered departmental action against assistant commissioner for non-compliance of appellate orders.
The bench of Justice Sanjeev Prakash Sharma and Justice Sanjay Vashisth has observed that if subordinate officers do not comply with the appellate orders, it would be something sort of administrative chaos. Such officers are required to be dealt with by the Department in a strict manner, so that they may not create a precedent for others to start insubordination. It also reflects in general public faith in filing appeals, which would be waived if the appellate orders are not complied with Litigation is also forced unnecessarily before this Court. Such insubordination requires more strictness.
Allahabad High Court – GST Weekly Flashback
Proceedings U/S 74 Of CGST Act Can’t Be Initiated When Show Cause Notice Lacks Tax Evasion Allegation: Allahabad High Court
Case Title: Hcl Infotech Ltd v/s Commissioner, Commercial Tax And Another
The Allahabad High Court has held that proceedings u/s 74 of CGST Act cannot be initiated when show cause notice lacks tax evasion allegation.
The bench of Justice Shekhar B. Saraf and Justice Manjive Shukla has observed that the Show Cause Notice does not make even a whisper of the fact that petitioner has wrongly availed or utilized Input Tax Credit due to any fraud, or wilful mis-statement or suppression of facts to evade tax therefore, the proceedings initiated against the petitioner under Section 74 of the CGST Act are without jurisdiction.
STATE GST OFFICERS NOT ADJUDICATING AUTHORITY: ALLAHABAD HIGH COURT GRANTS INTERIM STAY
Case Title: M/S Jai Shree Traders Versus State Of U.P.
The Allahabad High Court while admitting the writ petition and granting the interim stay on the order passed by the proper officer held the State GST officers are not Adjudicating Authority.
GST ITC ON LEASING OUT BUILDING FOR RUNNING SCHOOL: MADHYA PRADESH HIGH COURT DIRECTS ASSESSEE AVAIL STATUTORY REMEDY CILITING SAFARI RETREAT JUDGEMENT
Case Title: M/S Chirantan Enterprises Llp Through Partner Mr. Prem Sethia Versus Commissioner Cgst And Central Excise
The petition was filed before the Madhya Pradesh High Court contending the eligibility to avail ITC on Leasing Out Building Running School.
The bench of Justice Vivek Rusia and Justice Binod Kumar Dwivedi has directed the petitioner to avail the statutory remedy, effect of judgement of the Supreme Court in Safari Retreat has also been examined.
GST Commissioner – GST Weekly Flashback
Time Limit Fixed Under Section 54(1) Is Directory, Not Mandatory: GST Commissioner Allows Refund Of Unutilised ITC For Supplies Made TO SEZ
Case Title: M/s S.V.Infrastructure
The Commissioner Of GST & Central Excise (Appeals-II) has allowed the refund of unutilised ITC for supplies made to Special Economic Zone (SEZ).
