GST DAILY – 312 : HC quashed order passed against dead person; directs GST Dept. to issue common notice to legal heirs of deceased
THE HON’BLE MADRAS HIGH COURT IN THE CASE OF Unnikrishnan R.V/s Union of India, decided on 12-6-2024
Tag: Madras HC
Quashed SCN and Orders disallowing ITC under section 16(4) & 16(2)(c), on the basis of insertion Section-16(5) of the CGST Act
The Hon’ble Madras High Court in R.K. Enterprises quashed show cause notices and orders disallowing Input Tax Credit for FY 2017-18 to 2020-21 based on Section 16(5) CGST Act insertion, following withdrawal of constitutional challenges.
Payer can recover GST loss from supplier who failed to remit tax, rules Madras HC
The Madras High Court has ruled that GST authorities are not responsible for taking action under Section 76 of the Goods and Services Tax Act, 2017, against a person who allegedly collects tax for the supply of goods from another person but fails to pay it to the government, if the collection of tax was not brought to their notice.
Mere dismissal of rectification application without modifying original order does not warrant personal hearing
The Hon’ble Madras High Court in Eminent Textiles Mills Private Limited held that dismissal of a rectification application under Section 161 of the TNGST Act does not attract the requirement of natural justice under the third proviso, as refusal to rectify is not “rectification” within the meaning of the statute.
Section 74 proceedings held unsustainable due to mechanical approach despite taxpayer furnishing CA certificate
The Hon’ble Madras High Court in the case of JIT Auto Comp held that initiation of proceedings under Section 74 was not justified in absence of any finding of fraud or suppression, particularly when the petitioner had filed a Chartered Accountant’s certificate to substantiate its claim.
SCN covering multiple financial years frustrates the limitation period in GST Law
The Hon’ble Madras High Court in the case of R A and Co held that issuance of a single show cause notice and passing of a composite assessment order covering more than one financial year is impermissible under the GST Act, and such action renders the proceedings void ab initio.
Extension of limitation Period requires strict compliance with force majeure conditions with GST Council recommendation
The Hon’ble Madras High Court in Tata Play Limited held that Notification No. 56/2023-CT issued under Section 168A of the CGST Act were ultra vires and unsustainable, due to absence of valid recommendation from the GST Council at the time of issuance.
HC directs Department to consider matter afresh where reply filed by the Taxpayer through email has not been considered and opportunity of personal hearing not granted
The Hon’ble Madras High Court in the case of M/s Shree Balaji Enterprises held that rectification under GST can only be sought for an apparent error on the face of record and not for reassessment, however, the matter has been remanded for fresh adjudication due to violation of principles natural justice.
HC quashes Ex-Parte Order and directs the department to ensure proper service of notice through various modes in order to ensure that the object of Section 169 is fulfilled
The Hon’ble Madras High Court in M/s Namasivaya Auto Parts set aside the ex-parte order dated December 27, 2023 passed against the Petitioner on the ground that the show cause notices along with the reminder notices were served only by uploading on the GST portal do not amount to effective service, especially where no further steps were taken by the officer despite the Petitioner being non-responsive.
GST can’t be demanded if a flat price is advertised and sold as inclusive of GST
The Hon’ble Madras High Court in the case of D. Hamsa Sundaramoorthy & Ors. held that where the flat price was expressly advertised as “inclusive of GST”, Tamil Nadu Housing Board could not thereafter demand an additional 5% GST from the allottees.