CA in Jaipur | CA. Yogesh Jangid |ITR Filing 2023 | Company Registration | NGO Registration | Income Tax Raid Cases | Audit | Inc Incroporation | CPA in India | Subsidy | Project Funding | GST | GST Raid Cases | Income Tax Notice Faceless | DRI Cases | https://www.nyca.in ITR Filing 2023 | Company Registration | NGO Registration | Income Tax Raid Cases | Audit | Inc Incroporation | CPA in India | Subsidy | Project Funding | GST | GST Raid Cases | Income Tax Notice Faceless | DRI Cases Tue, 02 Apr 2024 04:58:07 +0000 en-US hourly 1 https://wordpress.org/?v=6.9.1 https://www.nyca.in/wp-content/uploads/2022/08/9060CA_logo_icai-1.jpg CA in Jaipur | CA. Yogesh Jangid |ITR Filing 2023 | Company Registration | NGO Registration | Income Tax Raid Cases | Audit | Inc Incroporation | CPA in India | Subsidy | Project Funding | GST | GST Raid Cases | Income Tax Notice Faceless | DRI Cases | https://www.nyca.in 32 32 Madras High Court Invalidates GST Assessment Over ITC Disparity https://www.nyca.in/madras-high-court-invalidates-gst-assessment-over-itc-disparity/ https://www.nyca.in/madras-high-court-invalidates-gst-assessment-over-itc-disparity/#respond Tue, 02 Apr 2024 04:58:07 +0000 https://www.nyca.in/?p=8163 In a significant ruling, the Madras High Court addressed the validity of a GST assessment order in the case of Sri Lakshmi Silvers versus The State Tax Officer, Gugai Circle, Salem.

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In a significant ruling, the Madras High Court addressed the validity of a GST assessment order in the case of Sri Lakshmi Silvers versus The State Tax Officer, Gugai Circle, Salem. The case centered on the adherence to procedural guidelines and principles of natural justice in GST assessments, particularly concerning disparities between GSTR-3B and GSTR-2A returns.

Facts of the Case:

  • The petitioner, engaged in the supply of base metals, faced a GST assessment order pertaining to the tax demand arising from differences between the Input Tax Credit (ITC) claimed in GSTR-3B returns and that reflected in the auto-populated GSTR-2A returns for the year 2019-20.
  • Despite receiving a notice and show cause notice, the petitioner, relying on their accountant, remained unaware, resulting in no response from their side.
  • The central issue revolved around the validity of the assessment order, particularly concerning principles of natural justice and adherence to specific circulars regarding GST return discrepancies.

Petitioner’s Argument:

  • The petitioner contended the lack of opportunity to contest the tax demand, citing non-adherence to circulars issued by the Central Board of Indirect Taxes and Customs concerning handling disparities between GSTR-3B and GSTR-2A returns.
  • As a condition for remanding the case, the petitioner offered to remit 10% of the disputed tax demand.

Department’s Argument:

  • The tax demand was based solely on the disparity between the ITC claimed in GSTR-3B and GSTR-2A returns, without evidence indicating non-genuine transactions.

Held:

  • The Madras High Court quashed the impugned assessment order, subject to the petitioner remitting 10% of the disputed tax demand.
  • It granted the petitioner the opportunity to respond to the show cause notice, directing the assessing officer to provide a reasonable opportunity for a hearing and to issue a fresh assessment order in accordance with the law.

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]]> https://www.nyca.in/madras-high-court-invalidates-gst-assessment-over-itc-disparity/feed/ 0 Revenue Department is not empowered to seize Cash under GST https://www.nyca.in/revenue-department-is-not-empowered-to-seize-cash-under-gst/ https://www.nyca.in/revenue-department-is-not-empowered-to-seize-cash-under-gst/#respond Sat, 30 Mar 2024 10:09:45 +0000 https://www.nyca.in/?p=8112 The Delhi High Court, in the matter of Jagdish Bansal v. Union of India [W.P. (C) No. 16677 of 2023 dated February 26, 2024], granted relief to the petitioner by allowing the writ petition

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The Delhi High Court, in the matter of Jagdish Bansal v. Union of India [W.P. (C) No. 16677 of 2023 dated February 26, 2024], granted relief to the petitioner by allowing the writ petition. The court instructed the Revenue Department to return the seized cash along with interest. The judgment emphasized that the Revenue Department lacks authority to seize cash under the applicable GST laws.

Facts of the case:

Search and seizure procedures were conducted at the premises of Jagdish Bansal, resulting in the confiscation of cash by the Revenue Department.

Displeased by this action, Jagdish Bansal filed a writ petition in the High Court, challenging the lawfulness of the cash seizure.

Issue:

The central issue at hand was whether the Revenue Department possessed the legal authority to seize cash under the GST framework.

Held:

In its ruling on W.P. (C) NO. 16677 OF 2023, the Delhi High Court made the following determinations:

  • Referencing the decision of the Delhi High Court in K.M Food Infrastructure Pvt Ltd Through Its Director Mukesh Kapoor Vs Director General DGGI Headquarters [W.P. (C) 328/2024 dated February 13, 2024], the court construed Section 67 of the Central Goods and Services Tax Act, 2017.
  • It observed that cash does not fall under the definition of goods but rather under the definition of money as outlined in Section 2(75) of the CGST Act.
  • The court reiterated that cash cannot be categorized as goods and therefore cannot be subject to seizure.
  • It concluded that there was no valid reason for the Revenue Department to retain the seized cash.
  • Consequently, the court deemed the impugned order as null and directed the Revenue Department to return the seized cash along with interest.

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