Tag: Punjab & Haryana HC

ArticleGST Article

Payment of GST Penalty “Under Protest” for release of goods – Mandatory Requirement of Speaking Order under Section 129(3)

byCA Bimal Jain

The Hon’ble Punjab and Haryana High Court in the case of M/s Deutsche Cars Pvt. Ltd. held that mere payment of penalty under protest does not conclude proceedings under Section 129(5) of the GST Act, and the Proper Officer is mandatorily required to pass a reasoned order after considering the reply of the assessee.

ArticleGST Article

Grant of bail appropriate where documentary/ electronic evidence predominates and there is no threat of tampering or absconding

byCA Bimal Jain

The Hon’ble Punjab & Haryana High Court in Gaurav Babu Jain granted bail to the petitioner who was arrested under Section 132(1) of the CGST Act citing prolonged custody is unjustified in presence of only documentary or electronic evidence. The Hon’ble High Court followed the rationale of the Hon’ble Supreme Court of India in Vineet Jain v. Union of India, Ashutosh Garg vs. Union of India order dated July 26, 2024, and Ratnambar Kaushik v. Union of India of 2022 order dated December 05, 2022 in reaching its decision.

ArticleGST Article

Time spent pursuing a rectification application under Section 161 of the CGST Act, is excluded while computing the limitation period for filing appeal

byCA Bimal Jain

The Hon’ble Punjab & Haryana High Court in Arvind Fashion Limited held that when an assessee promptly files a rectification application against an assessment order, the period spent awaiting decision on rectification is to be excluded from the limitation period for filing appeal under Section 107 CGST Act. The appellate authority erred in holding the appeal time-barred by not considering this exclusion. Where there is no mala fide or delay attributable to the assessee, time awaiting rectification decision is to be discounted.

ArticleCustoms Article

Refund is warranted when perishable goods perished due to departmental obstruction, and compensation of Rs. 50 Lakhs to be paid by erring officer

byCA Bimal Jain

The Hon’ble Punjab and Haryana High Court in M/s Prenda Creations Private held that the respondents wrongfully and illegally withheld perishable food items, namely Kiwi fruit, despite repeated directions for release, causing the goods to deteriorate and become unfit for consumption, and directed refund of customs duty along with interest and awarded compensation to be recovered from the erring officers.