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Bombay High Court Invalidates Registration Amendment Rejection: Lack of Reasons Criticized

editor — Sat, 13 Apr 2024 09:17:23 +0000

Introduction:

The Bombay High Court has invalidated the rejection of an application for registration amendment due to the lack of reasons provided for the rejection.

Facts of the case:

Issue:

Argument by the Petitioner:

Court Judgment:

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Calcutta High Court’s Verdict on GST Pre-Deposit Requirements

editor — Fri, 12 Apr 2024 10:29:32 +0000

Introduction:

In a recent ruling, the Calcutta High Court addressed the clarification of GST pre-deposit requirements, specifically focusing on the interpretation discrepancy between the GST Department and the GST Law.

Facts of the Case:

Issue:

Petitioner’s Argument:

Respondent’s Argument:

Held:

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GST Penalty Overturned by Calcutta High Court Due to Emergency Vehicle Substitution, Showcasing Compliance Flexibility

editor — Fri, 12 Apr 2024 06:23:41 +0000

Introduction:

The Calcutta High Court’s decision to quash a GST penalty related to an emergency vehicle change highlights the court’s recognition of flexibility in enforcing compliance.

Facts of the Case:

The petitioner lodged an appeal against the dismissal of their writ petition by the Calcutta HC, which was filed 20 months following an adverse order on June 14, 2022. The delay was attributed to non-receipt of the original order and the demise of the petitioner's first lawyer.
The controversy arose from a tax and penalty imposition concerning the transportation of goods without a valid e-way bill on November 20, 2021. This was due to an emergency vehicle change, preventing the timely amendment of the e-way bill.

Issue:

The central issue revolved around the justification for imposing tax and penalty for the absence of a valid e-way bill during the transportation of goods.

Held:

Petitioner's Argument: The petitioner contended that the delay in filing the writ was genuine and challenged the penalty, citing an emergency vehicle change that hindered the timely amendment of the e-way bill.
Respondent's Argument: The respondent upheld the penalty, highlighting the lack of a valid e-way bill as a compliance failure.
Court Judgment: The High Court ruled in favor of the petitioner, acknowledging the absence of intent to evade tax and the genuine circumstances causing the appeal's delay. Consequently, the tax and penalty were ordered to be revoked.
Non-resident taxpayers
Persons subject to TDS under section 51 of the CGST Act.

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Tax Authorities cannot retain the tax deposited under the cancelled GST registration

editor — Wed, 10 Apr 2024 05:38:08 +0000

Introduction:

In the case of Yogesh Rajendra Mehra v. Principal Commissioner of Central Goods and Services Tax [Writ Petition No. 1632 of 2024 dated February 20, 2024], the Hon’ble Bombay High Court addressed the issue of whether tax authorities can retain tax deposited under a cancelled GST registration. The court provided significant observations and rulings on this matter.

Facts of the Case:

Mr. Yogesh Rajendra Mehra, a scriptwriter, obtained GST registration on July 19, 2018. However, his registration was cancelled on January 01, 2019, due to non-filing of subsequent returns. Subsequently, Mr. Mehra applied for and obtained a fresh GST registration on March 26, 2022. During the first quarter of 2022, his chartered accountant mistakenly deposited Rs. 1,22,220/- as tax under the cancelled registration instead of the new one. Mr. Mehra then applied for a refund of the erroneously deposited tax.

Issue:

The central issue revolves around whether tax authorities can retain tax deposited under a cancelled GST registration.

Held:

The Bombay High Court held that tax authorities cannot retain tax deposited under a cancelled GST registration. The court emphasized that taxpayers cannot be expected to file returns and deposit tax under an invalid registration number. It was noted that the tax deposited under the cancelled registration was not valid as the registration itself was non-existent. The court also criticized the tax authorities’ rejection of the refund application on technical grounds, ruling that any deficiency in filing an appeal within the prescribed limitation period does not render the appeal barred by limitation. Therefore, the court ordered the refund of the erroneously deposited tax amount of Rs. 1,22,220/- along with permissible interest to Mr. Mehra within four weeks.

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High Court of Madras sets aside GST penalty, emphasizes fair hearing and pre-assessment payments in tax disputes.

editor — Tue, 09 Apr 2024 07:10:27 +0000

Introduction

The High Court of Madras recently ruled on a case involving a works contractor for government departments, addressing penalties imposed under the Tamil Nadu Goods and Services Tax Act, 2017. The court emphasized the importance of fair hearings and pre-assessment payments in tax disputes.

Facts of the Case

The petitioner, a works contractor, received an assessment order on April 19, 2023, due to discrepancies in their GSTR 1 and GSTR 3B returns.
A show cause notice was issued in February 2023.
On April 12, 2023, before the assessment order was issued, the petitioner paid Rs. 3,00,000/- towards their tax liability, citing delayed payments from government departments as the reason for the discrepancies and delayed payment.
The petitioner contested the imposition of a 100% penalty on the dues under Section 74 of the Tamil Nadu Goods and Services Tax Act, 2017.

Issue

The core issue revolves around the justification of imposing a 100% penalty on the petitioner, considering the pre-order payment and the circumstances leading to the discrepancies.

Petitioner’s Argument

Held

The court set aside the impugned order and directed the respondent to remit an additional Rs. 3,00,000/-. Moreover:

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