GST Weekly Flashback for the period 1 December 2024 to 7 December 2024.
Table of Contents
Supreme Court
Whether ‘Cash’ Qualify As Thing’ Under GST? Supreme Court To Decide
The Supreme Court is all set to decide the issue of whether ‘cash’ qualifies as a ‘thing’ under GST.
The bench of Justice J.B. Pardiwala and Justice R. Mahadevan while issuing the notice to the assessee stated, “we need to interpret the expression “and seize or may himself search and seize such goods, documents or books or things”.
GST Appellate Tribunal Not Functional Till Date : Supreme Court Issues Notice To Govt.
The Supreme Court has issued the notice to Union Of India as the GST Appellate Tribunal (GSTAT) is not functional till date.
The bench of Justice J.B. Pardiwala and Justice Manmohan has said “We would like to first know at the earliest why the Goods and Services Tax Appellate Tribunal has not been made functional till this date. We want a report in the aforesaid regard by the next date of hearing.”
Delhi High Court
Delhi High Court Stays Proceedings Under Show Cause Notice Issued By GST Anti-Evasion Wing
The Delhi High Court has stayed the proceedings under show cause notice issued by GST anti-evasion wing.
The bench of Justice Yashwant Varma and Justice Dharmesh Sharma has observed that issued notice to the respondents and granted stay on proceedings under show cause notice issued by Anti-evasion. The principle ground of challenge was that such transfer is illegal, being without jurisdiction, and beyond statutory provisions. No reliance can be placed on internal guidelines/audit manual.
Delhi High Court Slams Dept. On Failure To Close Decades Pending Proceedings
The Delhi High Court in the case of M/S Vos Technologies India Pvt. Ltd. Versus The Principal Additional Director General & Anr. has slammed the department on failure to undertake a periodic review of pending proceedings or make even a feeble attempt to accord closure to proceedings that had been pending for decades.
The bench of Justice Yashwant Varma and Justice Ravinder Dudeja has observed that while quashing the show cause notices issued by the department observed that the department is bound and obliged in law to endeavour to conclude adjudication with due expedition. Matters which have the potential of casting financial liabilities or penal consequences cannot be kept pending for years and decades together.
Bombay High Court
SVLDR Scheme Extends To Redemption Fine: Bombay High Court
The Bombay High Court has held that once the petitioner’s application under Sabka Vishwas (Legacy Dispute Resolution) Scheme, 2019 (SVLDR Scheme) accepting the payment of excise duty is accepted, the declarant is immune from imposition of any redemption fine and, therefore the benefit of the scheme gets extended to the redemption fine also.
The bench of Justice M. S. Sonak and Justice Jitendra Jain has observed that The only ground on which the application was rejected was that the Scheme does not cover the redemption fine which as observed by us is contrary to the decision of this Court in the case of M/s. Esbee Electrotech LLP. It is settled position that the rejection order has to be tested on the touchstone of what is recorded in the said order and nothing can be added or subtracted therefrom or improvised either by way of reply or by way of arguments.
Bombay High Court Quashes GST Demand Order Against Corporate Debtor
The Bombay High Court has quashed the GST Demand order against corporate debtor.
The bench of Justice M.S. Sonak and Justice Jitendra Jain have observed that the officer has not considered the applicability of the judgment of the Supreme Court in Ghanshyam Mishras case and Bombay High Court in Murli Industries case.
Madras High Court
State Can Block Electronic Credit Ledger To Extent Of Fraudulently Availed Credit: Madras High Court
The Madras High Court in the case of Tvl. Skanthaguru Innovations Private Limited Versus Commercial Tax Officerwhile upholding the blocking order passed by the state held that State Authorities are empowered to pass blocking orders to the extent of credit, which was fraudulently availed and available in Electronic Credit Ledger (ECL) for discharge of output tax liabilities either at the time of blocking or subsequently, in the event if the same was already utilised.
Rajasthan High Court
DGGI Empowered On PAN India Basis To Issue SCN: Rajasthan High Court
The Jaipur Bench of Rajasthan High Court while dismissing a writ petition challenging the show cause notice held that Directorate General of GST Intelligence (DGGI) is empowered on PAN India Basis to issue show cause notice (SCN).
The bench of Justice Avneesh Jhingan and Justice Ashutosh Kumar has observed that multiple searches were conducted by the DGGI at different locations to unearth the availment of the fake ITC at the instance of fake invoices without actual delivery of goods and the DGGI being the Central Tax Authority has been empowered on PAN India basis to make investigations and to issue Show cause notices by the Board on intelligence based enforcement actions; as such, the SCN so issued by the DGGI is not lacked jurisdiction.
Meghalaya High Court
Meghalaya High Court Addresses Issue Of Non-Releasing Of Amounts Deposited In Escrow Account For GST Payment
The Meghalaya High Court in the case of M/s Marbaniang Projects Private Limited Versus PNB addresses the issue of non-releasing of amounts deposited in escrow accounts for GST payment.
The bench of Justice H. S. Thangkhiew has directed the respondent, PNB Bank to redeem the matter by taking corrective measures with regard to the facilitation of filing of GST returns, payable by the petitioner Company from the year 2017 onwards, as mandated by law.
Allahabad High Court
Interest On Delayed Refund Can’t Be Denied Due To Dispute Between State And Central GST Dept. : Allahabad High Court
The Allahabad High Court in the case of M/S Tata Aldesa (J.V.) Versus State of UP has held that interest on delayed refund cannot be denied due to dispute between state and central GST department.
Exporter Files Petition Challenging Rule 96(10) of CGST Rules: Allahabad High Court Stays Recovery
The Allahabad High Court in case of M/S Saru Silver Alloys Pvt Ltd Versus UOI stayed the recovery in the writ petition filed by the exporter challenging Rule 96(10) of CGST Rules which takes away the right of the exporter to claim refund of tax which is a right granted by the substantive provisions of the IGST Act.
The bench of Chief Justice Arun Bhansali and Justice Vikas Budhwar has noted that the provisions of Rule 96 (10) of the CGST Rules, 2017, based on which the order impugned has been passed, has been struck down by the Kerala High Court in M/s. Sance Laboratories Private Limited Vs. Union of India & Ors.. Further submissions have been made that the authority has relied on the judgment of Gujarat High Court in Cosmo Films Ltd. Vs. Union of India & Ors., which judgment has subsequently been reviewed by order dated 19.09.2024.
Non-Replying To SCN : Allahabad High Court Asks Assessee To Pre-Deposit 50% Of Disputed Tax
The Allahabad High Court has asked the assessee to pre-deposit 50% of disputed tax for not filing the reply to the show cause notice.
Karnataka High Court
RCM Could Not Make Assessee Liable To Pay Double Tax: Karnataka High Court
The Karnataka High Court in the case of Bangalore Electrical Supply Company Limited Versus The Assistant Commissioner Of Central Tax North Division quashed the assessment order and held that the Reverse Charge Mechanism (RCM) could not make assessee liable to pay double tax.
Jharkhand High Court
Jharkhand High Court Allows Input Tax Credit On Delayed Returns
The Jharkhand High Court has allowed the Input Tax Credit on delayed returns.
The bench of Chief Justice M. S. Ramachandra Rao and Justice Deepak Roshan has observed that Clause (5) of Section 16 inserted by the Finance (No.2) Act, 2024, with effect from 01.07.2017, the department directed to allow the petitioner to take Input Tax Credit in respect of delayed returns filed for the Financial Year 2017-18, and the interest and penalty levied on the petitioner by the respondents shall be refunded with 6% p.a interest from the date of such collection till the date of repayment.
Madhya Pradesh High Court
Input Tax Credit Disallowance Can’t Be A Punishment For Late Return Filing : Madhya Pradesh High Court
The Madhya Pradesh High Court has held that the input tax credit (ITC) disallowance cannot be a punishment for late return filing.
Punjab & Haryana High Court
GST Dept Can’t Be Prevented From Conducting Preliminary Inquiry Relating To Books Of Accounts : Punjab & Haryana High Court
The Punjab & Haryana High Court has held that the GST department cannot be prevented from conducting preliminary inquiry relating to books of accounts of a registered person.
Calcutta High Court
Retrospective GST Registration Cancellation Of Supplier Can’t Absolve Buyer To Verify Input Tax Credit Claim Authenticity: Calcutta High Court
The Calcutta High Court has held that the retrospective GST registration cancellation of supplier cannot absolve the buyer to verify input tax credit (ITC) claim authenticity.
The bench of Justice Rajarshi Bharadwaj has observed the retrospective cancellation of the suppliers’ GST registrations did not invalidate the transactions, nor did it absolve the petitioners of the need to verify the authenticity of their claims for ITC.
