Composite GST Notices vs. Mandatory Limitation Periods: A Balanced Judicial Approach The Legal Issue The primary question was whether the GST department can validly issue a single composite Show Cause Notice (SCN) for multiple financial years, and how the statutory limitation periods for passing orders apply to such consolidated proceedings, especially when parallel investigations by… Read More »
Natural Justice: Mandatory Personal Hearing After Reply Submission in Section 74 Proceedings The Legal Issue Can a GST demand order be legally sustained if the personal hearing was scheduled before the taxpayer filed their reply, and no subsequent hearing was granted after the reply was submitted? Facts of the Case The Notice: The petitioner received… Read More »
Prohibition of “Double Penalty”: General Penalty Dropped for Same Period in Case of Delayed Returns Issue Whether a “General Penalty” under Section 125 can be imposed for the same tax period when a specific “Late Fee” under Section 47 has already been levied for delayed return filing, especially where multiple assessment orders exist for that… Read More »
Portal Service is Valid but Not Always “Effective”: Madras High Court Orders Remand The Legal Issue Whether serving a Show Cause Notice (SCN) and subsequent orders solely by uploading them to the GST portal satisfies the principles of Natural Justice, especially when the taxpayer fails to respond and is subjected to an ex parte assessment.… Read More »
Anti-Profiteering: No Liability for Post-GST Flat Bookings Issue Whether a real estate developer is liable for “profiteering” under Section 171 of the CGST Act if they do not reduce the price of a flat booked after the introduction of GST (post-July 1, 2017), even if they previously stated that Input Tax Credit (ITC) benefits would… Read More »
False Claims of “Denial of Natural Justice” Lead to Penal Costs in GST Refund Case The Legal Issue Whether a taxpayer can successfully challenge a GST refund rejection on the grounds of “breach of natural justice” (denial of a personal hearing) when the judicial record demonstrates that multiple opportunities were provided, and whether the Court… Read More »
Restoration of GST Registration: Medical Hardship as a Valid Ground for Revocation Issue Whether a GST registration cancelled for non-filing of returns (under Section 29) can be restored if the default was caused by the taxpayer’s mental stress and physical illness, provided the taxpayer is willing to clear all dues. Facts The Default: The petitioner’s… Read More »
Retrospective GST Cancellation Requires Specific Notice and Reasoned Orders Issue Whether a GST registration can be validly cancelled with retrospective effect if the Show Cause Notice (SCN) did not explicitly propose such a retroactive date and the final order failed to provide specific reasons for choosing that date. Facts The Notice: The GST department issued… Read More »
Bona Fide Timing Mismatch in ITC Claims: Receipt of Goods Governs Credit Eligibility Issue Whether Input Tax Credit (ITC) can be denied under Section 73(1) due to a mismatch where the supplier reported the sale in March 2018 (FY 2017-18) but the recipient claimed the credit in April 2018 (FY 2018-19) upon physical receipt of… Read More »
Bona Fide Purchasers Protected: Section 16(2)(c) Read Down to Prevent ITC Denial for Supplier Defaults Issue Whether Input Tax Credit (ITC) can be denied to a genuine purchaser under Section 16(2)(c) of the CGST Act solely because the supplier failed to deposit the tax with the Government, particularly when no fraud or collusion is alleged.… Read More »