HC Rejects Limitation Plea on COVID Extension, But Remands Case Subject to 50% Deposit. Issue Whether a Show Cause Notice (SCN) issued under Section 73 of the CGST Act is time-barred, or if the statutory limitation period is validly extended by the Supreme Court’s suo motu order (under Article 142) that excluded the COVID-19 pandemic… Read More »
HC: Rejection of Section 161 Rectification Application Requires a Personal Hearing. Issue Whether a GST authority can reject a rectification application filed by a taxpayer under Section 161, on the grounds that there is “no error apparent on the face of the record,” without first granting the taxpayer a personal hearing. Facts Following a demand… Read More »
HC Relegates Fraudulent ITC Case to Appeal, Citing Disputed Facts. Issue Can a High Court, in its writ jurisdiction, entertain a challenge to a GST demand order (OIO) involving complex allegations of fraudulent Input Tax Credit (ITC) from non-existent entities, or must the taxpayer first exhaust the statutory appellate remedy? Facts The GST department initiated… Read More »
HC: Plea of No Pre-SCN Consultation is Waived if Not Raised; Assessee Relegated to Appeal. Issue Whether a GST demand order can be challenged in a writ petition on the grounds of (1) failure to conduct a pre-SCN consultation, and (2) non-application of mind, especially when the taxpayer had fully participated in the adjudication and… Read More »
SC’s COVID Limitation Exclusion Period Applies to Quasi-Judicial GST Proceedings. Issue Whether the suo motu order of the Supreme Court, which excluded the period from March 15, 2020, to February 28, 2022, for computing limitation, applies to quasi-judicial proceedings under the GST Act, such as the issuance of a demand notice under Section 73. Facts… Read More »
Confusing SCN Dates Deny Effective Hearing; HC Quashes Order. Issue Whether a GST assessment order is legally valid if it is passed after issuing a Show Cause Notice (SCN) that contains contradictory and confusing dates for the reply and the mandatory personal hearing, thereby denying the taxpayer an “effective” opportunity to be heard. Facts The… Read More »
Interest on Delayed GST Computed from Original GSTR-3B Due Dates to Payment Date. Issue What is the correct methodology for computing interest under Section 50 of the CGST Act on a tax liability (discovered during GSTR-9 filing) that was paid at a later date? Specifically, should the interest be calculated from the original GSTR-3B due… Read More »
Officer Has Power to Restore GST Registration Under Rule 22(4) After Full Compliance. Issue Whether a GST officer has the jurisdiction to drop cancellation proceedings and restore a registration under the proviso to Rule 22(4) of the CGST Rules, even after the statutory time limit for filing a revocation application (under Section 30) has expired,… Read More »
ITC Allowed on Power Infrastructure Handed Over to Utility, Not Immovable Property. Issue Whether a 100% Export Oriented Unit (EOU) is eligible to claim Input Tax Credit (ITC) on goods (wires, cables, electrical equipment) used to create power transmission infrastructure, especially when this infrastructure is installed outside the factory premises and subsequently “handed over” to… Read More »
ITC is Allowed on Power Transmission Infrastructure Installed Outside the Factory. Issue Whether a manufacturing company is eligible to avail Input Tax Credit (ITC) on capital goods (like wires, cables, electrical equipment) and related services (like installation) used to set up a power transmission line, when that infrastructure is installed outside the factory premises to… Read More »