Notice Under Rule 142(1)(A) Of CGST Rules Must Be Issued Before Issuing Proper SCN: Andhra Pradesh High Court

The Andhra Pradesh High Court stated that a notice under Rule 142(1)(A) of CGST Rules must be issued before issuing proper show cause notice. The Division Bench of Justices R. Raghunandan Rao and K Manmadha Rao was addressing a case where notice under Rule-142(1)(A) of the CGST Rules was not issued to the assessees/petitioners, prior to the Orders of assessment. The assessees...

Carbonated Fruit Drinks Qualify As Fruit Beverages, Taxable At 12% GST: Gauhati High Court

The Gauhati High Court stated that carbonated fruit drinks qualify as fruit beverages and are taxable at 12% GST. The Bench of Justice Soumitra Saikia opined that “where the subject product contains soluble solids and fruit content as per the report of the State Food Laboratory, it cannot be said to be akin to water, mineral water or aerated water. Mere presence of carbon dioxide...

S.29 CGST Act | SCN Must Reflect Both Reasons And Intent Of Retrospective Cancellation Of Registration: Delhi High Court

The Delhi High Court has made it clear that an order cancelling GST registration of a trader with retrospective effect will not sustain unless the show cause notice preceding such decision reflects both the reasons and the authority's intent for retrospective cancellation.A division bench of Justices Yashwant Varma and Harish Vaidyanathan Shankar observed, “in the absence of reasons having...

S.67 Of CGST Act & S.110 Of Customs Act Are Pari Materia; GST Department Must Give Notice To Assessee Before Extending Seizure Period: Delhi HC

The Delhi High Court has held that an assessee must be issued notice within six months of seizure of its goods under Section 67 of the Central Goods and Services Tax Act 2017, failing which the goods must be returned by the Department.A division bench of Justices Yashwant Varma and Harish Vaidyanathan Shankar further held that the period of seizure cannot be extended under Section 67)7) for...

Restaurant Service Or Bakery Product? Bombay High Court To Decide If Donuts & Cakes Should Be Taxed At 5% Or 18% Under GST

The Bombay High Court is to decide whether the donuts and cakes should be classified as restaurant service or a bakery product under Goods and Services Tax. The Division Bench of Justices B.P Colabawalla and Firdosh P. Pooniwalla were addressing the issue of whether the supply of donuts falls within the ambit of restaurant services under Service Accounting Code (SAC) 9963 or should...

Rajasthan GST Department Mandates Virtual Hearing In All Tax Matters, Issues Guidelines

The Rajasthan GST Department on 20.02.2025 issued guidelines on virtual hearing. The Guidelines have been issued in pursuance of the para 143 of the Budget Speech 2025-26 and in exercise of power conferred under Section 168 of the RGST Act, 2017. The circular highlights that in Rajasthan, provisions have also been made for faceless scrutiny as well as carrying out of Business...

Delhi High Court Allows Indigo Airlines' Plea, Holds Levy Of Additional IGST On Repaired & Re-Imported Aircraft Parts To Be Unconstitutional

In big relief to Indigo airlines, the Delhi High Court has held that an additional levy of Integrated Goods and Services Tax (IGST) and cess under Section 3(7) of the Customs Tariff Act, 1975 on re-import of aircraft parts that were repaired abroad, is unconstitutional.A division bench of Justice Yashwant Varma and Ravinder Dudeja observed that “additional duty even after the transaction...

Rule 36(4) Of CGST Rules Is Constitutionally Valid, Does Not Derive Power From Section 43A: Gauhati High Court

The Gauhati High Court has upheld the constitutional validity of Rule 36(4) of the Central Goods and Services Tax/Assam Goods and Services Tax Rules, 2017. The provision stipulates documentary requirements and conditions for a registered person claiming input tax credit (ITC).A division bench of Chief Justice Vijay Bishnoi and Justice N. Unni Krishnan Nair observed that the provision was...

[CGST ACT] Dept Can't Seize Goods If Quantity Or Weight Of Goods Is Found Correct On Physical Verification: Calcutta High Court

The Calcutta High Court stated that GST department cannot seize the goods if the quantity or weight of the goods is found correct on physical verification. The Division Bench of Chief Justice T.S Sivagnanam and Justice Hiranmay Bhattacharyya noted that the quantity or the weight of the goods, which were carried in the vehicle, has been found to be correct by the department on...

Supreme Court Upholds Constitutionality Of GST Act Provisions On Arrest & Summons

The Court held that the power to arrest and summon was incidental to the power to levy and collect tax.

Arrest Under GST Act Cannot Be Made Merely To Investigate If Cognizable & Non-Bailable Offence Has Been Committed : Supreme Court

An order of arrest must be passed recording reasons to believe that the accused has committed a cognizable and non-bailable offence.

Anticipatory Bail Application Maintainable Against Arrest Under GST Act : Supreme Court Overrules Its Previous Judgments

The Supreme Court has overruled its previous decisions which held that anticipatory bail applications were not maintainable with respect to offences under the Goods and Services Tax Act.A three-judge bench comprising Chief Justice of India Sanjiv Khanna, Justice MM Sundresh and Justice Bela Trivedi overruled the two-judge bench judgments in State of Gujarat v. Choodamani Parmeshwaran Iyer...