High Court
Contractor Can Claim Increased GST During Work, Even If Bills Were Paid Before Rates Increased: Kerala High Court
The Kerala High Court has held that a contractor can claim increased GST (Goods and Services Tax) during work, even if bills were paid before the rate increase. Justice Ziyad Rahman A.A. opined that at the time of execution of the contract, the rate was only 5% and the increase took place during the execution of the work. Thus, the assessee is entitled to a differential amount of tax....
Kerala High Court Directs GST Department To Ensure No Tax Evasion In Frozen Chicken Sale
Disposing of a writ petition alleging that frozen chicken was being sold at 0% GST instead of the applicable 5%, the Kerala High Court recently directed the GST department to ensure that no tax evasion takes place. Justice Ziyad Rahman A.A. also noted that the State GST Department was already investigating the matter. Hence, the Court disposed of the writ petition filed by the...
GST Audit | Delhi High Court Sets Aside Show Cause Notice Issued Before Deadline To Reply To Pre-SCN, Says It Violates Natural Justice
The Delhi High Court has quashed the Show Cause Notice (SCN) issued to a company before conducting audit, holding that the authorities violated principles of natural justice by issuing the SCN before expiry of time granted to respond to the pre-SCN.A Division Bench of Justices Prathiba M. Singh and Shail Jain observed,“the Petitioner was given time to file submissions till 28th...
UPGST Act | Lien Cannot Be Created On Assessee's Bank Account After Over A Year Has Passed From Payment Of Tax: Allahabad High Court
Recently, the Lucknow Bench of the Allahabad High Court has held that under the UPGST Act, a lien cannot be created on the assessee's bank account an year subsequent to the payment of taxes. Section 62(2) of the UPGST Act provides that where a registered person submits a valid return within 60 days of the service of the order under Section 62(1), the said assessment order would...
'Fundamentally Flawed': Delhi High Court Criticises GST Dept For Demanding Tax On Total Turnover & Not Actual Sales Of Company
The Delhi High Court recently criticised the GST Department for demanding tax on the total turnover of a company, despite figures of the actual sales being available with it.A division bench of Justices Prathiba M. Singh and Shail Jain observed,“The Court finds a fundamental flaw in the approach of the Adjudicating Authority that, though the actual sales of the entire combo packs, on both...
Delhi High Court Allows Further Inspection Of CPU Seized From Advocate's Office, With Mandatory Presence Of Parties
The Delhi High Court has issued notice in the application by the GST Department seeking the handing over of the parsed hard drives of the seized Central Processing Unit (CPU) of an advocate, which is in possession of the IT Officers of the Court, for further examination.In doing so, the Court has instructed the presence of representatives from both sides, including a Court officer, and...
Principal ADG Of GST Intelligence Can Order Provisional Attachment Of Trader's Bank Account: Delhi High Court
The Delhi High Court recently refused to interfere with an order passed by the Principal Additional Director General, Directorate General of GST Intelligence (DGGI) provisionally attaching the bank accounts of a trader.The provisional attachment was challenged on the ground of competency of the officer to pass such an order.Petitioner had argued that in terms of Section 83 of the Central...
UPGST Rules | Reason To Believe Must Be Reduced In Writing While Operating Under Rule 86A: Allahabad High Court
The Allahabad High Court has held that while acting under Rule 86A of the UPGST Rules, authorities must record 'reason to believe' in 'writing'. It held that not doing so would be contrary to the purpose of the Rule. “It may not forgotten, granting ITC and maintaining its chain is the soul of a successful GST regime. Therefore, any doubt or suspicion alone may not lead an action by...
DDA Can't Prima Facie Levy GST On Conversion Of Property From Leasehold To Freehold: Delhi High Court
The Delhi High Court has prima facie observed that the Delhi Development Authority cannot levy GST on conversion of property from leasehold to freehold.A division bench of Justices Prathiba M. Singh and Shail Jain observed,“Prime facie, it clearly appears that conversion is nothing but a part of the process of sale of the immovable property by the DDA to purchasers and GST would not be...
GST Act | Three-Month Limit U/S 73(2) For Department To Issue SCN Is Mandatory, 'Technical Glitch' No Excuse: Delhi High Court
The Delhi High Court has held that the time limit set out under 73(2) of the Goods and Services Tax Act for issuance of show cause notice in relation to alleged short payment of tax, etc. is mandatory in nature, and cannot be excused on account of technical glitches on GST portal.A division bench of Justices Prathiba M. Singh and Shail Jain thus quashed a SCN issued after the 3-month...
DRC-03 Payments Made During GST Search Not Voluntary; Refund Cannot Be Rejected Through Deficiency Memos: Karnataka High Court
The Karnataka High Court holds that payments made by assessee through Form GST DRC-03 at the time of search or pursuant to an investigation cannot be treated as 'voluntary payments' when amount was not determined through any formal assessment or adjudication. A Bench comprising of Justice M. Nagaprasanna, quashed deficiency memos issued by the Deputy Commissioner of Central Tax...
No Technical Flaw If GST Orders Lack Visible Signatures; Digital Key Authentication Sufficient: Delhi High Court
The Central Goods and Services Tax Department recently explained to the Delhi High Court the process its officers follow when uploading any show cause notice or order on the GST portal. The explanation was tendered in response to a plea filed before the Court, challenging the legality of a demand order on the ground that the impugned SCN and the impugned order were not duly signed...