Indirect Tax Weekly Round-Up: 11 To 17 August 2024

SCN Lacks Reason For Proposing GST Registration Cancellation: Delhi High Court Revokes Cancellation

Case Title: Scope Promoters P. Ltd. Versus Commissioner Of Central Goods And Services Tax Delhi & Anr.

The Delhi High Court has revoked the GST registration cancellation on the grounds that the show cause notice lacked the reason for proposing to cancel the petitioner's GST registration. It merely stated that proceedings for cancellation of the GST registration have been initiated.

SCN Did Not Indicate Specific Allegation Of Non-Compliance Of Statutory Provision In Invoice: Delhi High Court Quashes SCN And Restores GST Registration

Case Title: Prince Garg versus Avato Ward 63 State Goods and Service Tax & Anr.

Finding that no document is annexed with the impugned show cause notice (SCN) which provides any clue as to which allegation is sought to be raised against the assessee, the Delhi High Courtquashed the SCN.

Madras High Court

Taxpayer Can't Be Mulcted With Unjust Penalty Due To Minor Discrepancy Of PIN Code In GST Registration: Madras High Court

Case Title: M/s.Jindal Pipes Limited Versus The Deputy State Tax Officer (Int)

Citation: 2024 LiveLaw (Mad) 314

The Madurai Bench of Madras High Court has held that the taxpayer cannot be mulcted with an unjust penalty due to a minor discrepancy in the PIN code in the GST registration, and the tax invoices are to be construed as a minor violation of the provisions of the respective GST enactments.

Allahabad High Court

Goods In Transit Without Documents, Can Survey Business Premises To Find Correctness Of Transaction: Allahabad High Court

Case Title: M/S Bans Steel Through Its Proprietor Alpana Jain v. State Of U.P.

Case citation: 2024 LiveLaw (AB) 508

The Allahabad High Court has held that if the goods in transit are not accompanied by proper documentation, including e-way bill, the authorities can survey the business premises of the assesee to determine the correctness of the transaction. However, it was held that if the e-way bill was produced before passing of seizure order under Section 129 of the Goods and Service Tax Act, 2017, then contravention of the Act or Rules thereunder could not be claimed by the Department.

Proceedings U/s 130 GST Act Can't Be Put To Service If Excess Stock Is Found During Survey Conducted At Business Premises: Allahabad High Court

Case Title: Banaras Industries vs. Union of India

Referring to the decision in case of Dinesh Kumar Pradeep Kumar Vs. Additional Commissioner [Writ Tax No. 1082 of 2022], the Allahabad High Court reiterated that even if excess stock is found at the business premises of the manufacturer, the proceedings u/s 130 of the UPGST Act cannot be initiated.

Telangana High Court

GST Not Payable On Consideration against 'Works Contract ' Executed In Maldives: Telangana High Court

Case Title: Sri Avantika Contractors (I) Limited Versus Appellate Authority for Advance Ruling (GST) and others

The Telangana High Court has held that GST is not payable on consideration received towards 'works contract service of construction' executed in the Maldives.

Calcutta High Court

Direction For Payment Of Mandatory Pre-deposit Doesn't Constitute 'Order' Within Meaning Of Sec 35G of Central Excise Act: Calcutta High Court

Case Title: Sashreek Constructors Private Limited vs. Customs, Excise and Service Tax Appellate Tribunal

Citation :2024 LiveLaw (Cal) 184

Taking note of Section 35G of the Central Excise Act, the Calcutta High Court clarified that an appeal shall lie to the High Court from “every order” passed in appeal by the Appellate Tribunal, though the maintainability thereof would be dependent on certain statutory limitations.

GST Registration Shall Not Be Cancelled For Non-Filing Of Returns If Taxpayer Is Not Found Adopting Dubious Process To Evade Tax: Calcutta High Court

Case Title: Pranabesh Sarkar versus Superintendent CGST & CX

While pointing out that the suspension/ revocation of license would be counterproductive and works against the interest of the revenue, the Calcutta High Court clarified that assessee in such a case would not be able to carry on his business in the sense that no invoice can be raised by the assessee and ultimately would impact recovery of tax.

Karnataka High Court

Appeal Against Endorsement Seeking Production Of Account Books Lies Before Joint Commissioner Of Appeals: Karnataka High Court

Case Title: M/S Three 1st Enterprises Versus The Commissioner Of Commercial Taxes

The Dharwad Bench of the Karnataka High Court has held that the appeal against endorsement seeking production of account books lies before the joint commissioner of appeals.