Service Tax Demand Order Quashed Due to Unexplained Delay in Adjudication Issue: Whether a Service Tax demand order passed under Section 73(1) of the Finance Act, 1994, invoking the extended period of limitation, can be sustained if the Adjudicating Authority fails to pass the order within the period prescribed by Section 73(4B)(b) (one year from… Read More »
Writ Petition Dismissed for Failure to Avail Statutory Appeal Remedy in Section 73 Demand Issue: Whether a writ petition should be entertained against an order raising a demand for tax or Input Tax Credit (ITC) under Section 73 of the CGST Act (not involving fraud), when a specific statutory appellate forum is available for grievance… Read More »
Opportunity of Hearing Granted for Section 73 Demand; Challenge to Notification on Limitation Period Awaits SC Verdict This response combines two distinct but related rulings concerning GST demand and limitation periods. I. Opportunity of Hearing Granted for Section 73 Demand Issue: Whether an order passed under Section 73 of the CGST Act (determination of tax… Read More »
Excess Stock Found During Search to Be Dealt Under Sections 73/74, Not Section 130 Issue: When excess stock is found during an inspection or search, should proceedings be initiated under Section 73/74 (determination of tax, interest, penalty) or under Section 130 (confiscation of goods or conveyances and levy of penalty)? Facts: An inspection/search was conducted… Read More »
Self-Contradictory Refund Direction for Closed Business: Amount to Be Paid Directly Issue: Whether a tax authority can direct a GST refund to be credited to an assessee’s Electronic Credit Ledger when the assessee has already closed down its business and its GST registration has been cancelled, rendering the credit ledger unusable for the assessee. Facts:… Read More »
Blocking of Electronic Credit Ledger Quashed for Lack of Pre-Decisional Hearing and Independent Reasons Issue: Whether an order blocking an assessee’s Electronic Credit Ledger (ECL) under Rule 86A of the CGST Rules, 2017, is valid if it is issued without providing a pre-decisional hearing and without the proper officer forming an independent “reason to believe,”… Read More »
GST Registration Cancellation Revoked Due to Cryptic Order and Assessee’s Willingness to Comply Issue: Whether a GST registration cancellation order, passed due to non-filing of returns for six months, can be set aside if the assessee claims unawareness of the show cause notice (SCN) on the GST portal and the cancellation order itself is cryptic/stereotyped,… Read More »
GST Registration Cancellation Revoked Due to Communication Gap, Assessee Granted Opportunity to Apply for Revocation Issue: Whether the cancellation of GST registration for non-filing of returns for six consecutive months can be revoked when the assessee attributes the lapse to a communication gap with their consultant, and both parties agree the matter is covered by… Read More »
Retrospective Cancellation of GST Registration Based on Non-Filing of Returns After Assessee Applied for Cancellation is Not Sustainable Issue: Whether a GST registration can be retrospectively cancelled solely on the ground of failure to furnish returns for a continuous period of six months, when the assessee had already applied for cancellation of their GST registration… Read More »
Blocking of Electronic Credit Ledger Quashed Due to Lack of Pre-Decisional Hearing and Borrowed Satisfaction Issue: Whether an order blocking an assessee’s electronic credit ledger under Rule 86A of the CGST Rules is valid if it is passed without providing a pre-decisional hearing to the assessee and lacks independent “reason to believe,” relying instead on… Read More »