Tag: Jammu & Kashmir HC

ArticleGST Article

Restriction of IDS Refund on Edible Oils can’t be applied retrospectively for past period

byCA Bimal Jain

The Hon’ble High Court of Jammu & Kashmir and Ladakh at Jammu in the case of Bharat Oil Traders held that amendment to Explanation (2)(e) Section 54 CGST Act, 2017 w.e.f. February 1, 2019 substituting “relevant date” for unutilized ITC refund u/s 54(3)(ii) inverted duty structure from “end of financial year in which claim arises” to “due date for furnishing return u/s 39 for period claim arises” operates prospectively and cannot retrospectively divest vested rights accrued pre-amendment.

ArticleGST Article

Cross-Empowerment under Section 6 of the CGST Act is Automatic and Intelligence-Based Enforcement is valid regardless of Taxpayer Assignment

byCA Bimal Jain

The Hon’ble High Court of Jammu and Kashmir and Ladakh in the case of in R.K. Ispat Ltd. held that cross-empowerment under Section 6 of the CGST Act is automatic and does not require a separate government notification unless conditions are imposed; intelligence-based enforcement actions can be initiated by either Central or State authorities regardless of taxpayer assignment; the Joint Commissioner is competent to issue show cause notices even when amounts involved are below Rs. 1 crore; and bunching of show cause notices across multiple assessment years under Section 74 is not expressly prohibited.

GST ArticleHigh Court

Budgetary Support Scheme is not hit by Doctrine of Promissory Estopple and Legitimate Expectations

byCA Bimal Jain

The Hon’ble Jammu and Kashmir High Court in the case of Sudhir Power Ltd. dismissed the writ petition challenging the government order replacing the Budgetary Support Scheme (“BSS”) providing for reimbursement of Integrated Goods and Services Tax (“IGST”) with Turnover Incentive Scheme, 2021 (“Turnover Incentive Scheme”). Both the schemes were for the benefit of the taxpayers, hence, cannot be said to be “irrational, unreasonable or arbitrary. Therefore, they are not hit by any of the Doctrines i.e. promissory estoppel and legitimate expectation. However, BSS will shall be reviewed by the Finance Department at the end of every financial year to find out its viability with reference to its continuance in the next financial year.