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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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Delhi High Court Orders Refund of ₹35 Lakh to GST Petitioner, Emphasizing Voluntary Compliance and Due Process

editor — Fri, 12 Apr 2024 06:45:30 +0000

Introduction:

The Delhi High Court’s decision mandates a refund of ₹35 lakh to a GST petitioner, underscoring the significance of voluntary compliance and adherence to due process.

Facts of the Case:

Issue:

Held:

Petitioner's Argument: Citing precedent cases, the petitioner argued that the deposit was made involuntarily under coercion, warranting a refund with interest.
Respondent's Argument: The respondent contended that the deposit was voluntary and proceeded with recovery under Section 73 of the GST Act through a Show Cause Notice.
Court Judgment: The Delhi High Court ruled in favor of the petitioner, directing the refund of ₹35,00,000 with 6% interest per annum from the date of deposit. The court deemed the deposit as non-voluntary and contrary to guidelines issued by the CBIC.

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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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Delhi High Court Invalidates Demand Order Due to Lack of Recorded Personal Hearing

editor — Fri, 05 Apr 2024 06:05:12 +0000

The Delhi High Court recently ruled on a GST case involving Electra Power Transmission Systems and the Commissioner of Delhi Goods and Service Tax.

Facts of the Case

Held

The main issue was whether the demand was justified given the petitioner's claim of appearance and attempted compliance, marred by administrative errors.
The petitioner argued that they did attend the hearing and submitted a reply, but due to an office error, crucial documents weren't uploaded. They sought another chance to present their case fully, with all necessary documentation.
The respondent maintained that the petitioner's response was unsatisfactory and noted their absence at the hearing, justifying the demand based on procedural defaults.
The Delhi High Court set aside the impugned order and remitted the case for re-adjudication. The court instructed the petitioner to submit all relevant documents and be given another hearing. No comment was made on the merits of the arguments, preserving all rights.

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Decision by High Court Allows Refund of Reversed ITC When Supplier Pays Tax

editor — Tue, 02 Apr 2024 04:23:57 +0000

The Delhi High Court, in the matter of Pedersen Consultants India Pvt. Ltd. v. Union of India and Ors. [W.P. (C) 1039/2024 dated March 19, 2024], resolved the writ petition, permitting registered entities to submit refund applications for reversed Input Tax Credit (ITC) when the supplier has subsequently filed returns and paid taxes.

Facts of the case:

In the matter of Pedersen Consultants India Pvt. Ltd. v. Union of India and Ors. [W.P. (C) 1039/2024 dated March 19, 2024], the petitioner, Pedersen Consultants India Pvt. Ltd., filed a writ petition. The petition sought direction for granting Input Tax Credit (ITC) benefits on invoices where the recipient had filed subsequent returns and paid taxes.
The petitioner argued that they were compelled by the Revenue Department to pay taxes on invoices where the supplier hadn't filed returns on time. However, the supplier later filed returns and paid taxes, potentially leading to double taxation. Hence, the petitioner sought a refund for the taxes paid on such invoices.
Responding to objections, the petitioner proposed filing a refund application under Section 54 of the Central Goods and Services Tax Act, 2017 (CGST Act). Additionally, they cited Notification No. 13/2022 dated July 05, 2022, advocating the exclusion of the period between March 1, 2020, and February 28, 2023, from the limitation for filing refund applications. The petitioner also requested exclusion of the period between filing the writ petition and the court's order.

Held:

The Delhi High Court, in W.P. (C) 1039/2024, dismissed the writ petition, allowing the petitioner to file a refund application under Section 54 of the CGST Act. The court directed the respondent to adjudicate the petitioner's claim in accordance with the law. Notably, the court recognized the petitioner's eligibility under the Notification, excluding the period from March 1, 2020, to February 28, 2022, for computing the limitation period for filing refund applications.

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