GST
Refund Claims Are Time-Barred Despite Non-Obstante Clause U/S 142(5) CGST Act: CESTAT Rejects Mahindra Holidays' Appeal
The Chennai Bench of Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has stated that the Non-Obstante Clause in Section 142(5) of the CGST Act (Central Goods and Services Tax Act, 2017) cannot override the limitation under Section 11B of the Central Excise Act. Ajayan T.V. (Judicial Member) and M. Ajit Kumar (Technical Member) stated that section 142(5) does not refer...
Voluntary GST Cancellation Not Grounds To Freeze Company's Bank Account: Rajasthan High Court
The Rajasthan High Court has directed the Bank of Baroda to de-freeze the account of the petitioner-company, allowing it to use it freely till finally deciding the company's representation, observing that the bank could not freeze the account merely because the company's GST registration was voluntarily cancelled.The bench of Justice Nupur Bhati was hearing a petition filed by a company...
Payment Of Tax Cannot Legalise Unlicensed Activity, GST Registration Doesn't Confer Right To Conduct Business: J&K&L High Court
The High Court of Jammu & Kashmir and Ladakh has held that obtaining registration under the Goods and Services Tax Act, 2017, does not amount to authorisation to conduct a trade or business, nor can payment of tax legitimise an otherwise unlicensed commercial activity.The High Court clarified that taxation statutes and regulatory licensing statutes operate in distinct spheres, and...
Customs | Confiscation, Penalty & Fine Can't Be Imposed On IGST Demand Arising From Breach Of Pre-Import Condition: CESTAT
The Mumbai Bench of Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has stated that confiscation, penalty & fine cannot be imposed on IGST (Integrated Goods and Services Tax) demand arising from breach of pre-import condition under Customs Act. Ajay Sharma (Judicial Member) and C J Mathew (Technical Member) opined that the IGST demand arose because of the breach of...
TNGST Act | Purchase Tax Cannot Be Levied on Buyer for Seller's Tax Default: Madras High Court
The Madras High Court on Monday held that purchase tax cannot be levied under Section 7A of the Tamil Nadu General Sales Tax Act, 1959 (TNGST Act) on the purchaser merely because the seller failed to pay tax. The bench, comprising Justices S M Subramaniam and Mohammed Shaffiq, clarified the scope of Section 7A in transactions where the vendor has defaulted on tax payments "Having found...
GST Levy On Group Health Insurance Policies Challenged; Kerala High Court Grants Interim Relief To Union Bank Pensioners
The Kerala High Court has granted interim relief to retired employees of the Union Bank by allowing them to renew their group health insurance policies without paying the 18% Goods and Services Tax (GST) on the premium.The Court passed the interim order in a writ petition filed by Vinod Mukundan and others, including the All India Union Bank Pensioners & Retirees Federation, challenging...
MP High Court Imposes ₹2 Lakh Cost On Tobacco Company For Stalling GST Proceedings
The Madhya Pradesh High Court has imposed ₹2 lakh costs on an Indore-based tobacco company for attempting to stall the proceedings initiated against it by the GST authorities.The company came came under the scanner of the Director General of GST Intelligence back in May 2020, following an investigation into large-scale tax evasion in the pan masala and tobacco industry in Indore.The...
CGST Rules | GST Registration Can Be Restored After Expiry Of Revocation Period If Rule 22(4) Conditions Are Fulfilled: Gauhati High Court
The Gauhati High Court has held that GST Registration can be restored even after expiry of the revocation period if the assessee complies with Rule 22(4) CGST (Central Goods and Services Tax Rules), 2017 requirements. The Single Bench, consisting of Justice Sanjay Kumar Medhi, opined that if the assessee submits such an application and complies with all the requirements as provided...
Renting/Leasing Residential Premises For Use As Residence Exempt From GST: Delhi High Court
The Delhi High Court has held that GST cannot be levied on renting/ leasing of residential premises for use as residence.Justice Sachin Datta clarified thus while dealing with a plea to quash an order passed by the Collector of Stamps directing the petitioner to pay allegedly deficient stamp duty on a lease deed executed with a private company, in respect of a residential property in...
Automobile Dealers Association Moves Supreme Court Over Compensation Cess Lapse After GST 2.0 Reforms, Claims Loss Of Rs.2500 Cr
The Federation of Automobile Dealers Association has moved the Supreme Court seeking relief related to compensation cess input tax credit worth Rs.2500 crores, which stands locked in dealers ledgers as a consequence of recent revision in the Goods and Services Tax (GST) framework.Briefly put, a notification issued on September 17 scrapped the compensation cess on motor vehicles. This was done,...
Customs Authorities Lack Jurisdiction To Issue Directions Under GST Law: Madras High Court
The Madras High Court recently held that Customs authorities have no jurisdiction to issue directions under the Goods and Services Tax (GST) law. The Court struck down a February 2021 public notice issued by the Chennai Customs that sought to regulate the GST treatment on auctioned cargo.A single bench of Justice N Anand Venkatesh ruled that such powers lie exclusively with authorities...
GST | Assessee Entitled To Copy Of Seized Electronic Data Unless Prejudicial To Investigation: Delhi High Court
The Delhi High Court has made it clear that an assessee is entitled to copies of the data stored on its electronic devices which are seized by the GST Department, unless the same is prejudicial to the probe.A division bench of Justices Prathiba M. Singh and Shail Jain observed,“A perusal of Section 67(5) of the CGST Act clearly shows that copies of the seized data cannot be denied to...