Tag: Telangana HC

ArticleGST Article

Compliance of Same-Month ISD Credit Distribution Procedure is Ultra vires

byCA Bimal Jain

The Hon’ble Telangana High Court in M/s. BirlaNu Ltd. struck down Rule 39(1)(a) of the CGST Rules and quashed the consequential Final Audit Report and show-cause notice, holding that the rule, to the extent it mandates distribution of Input Tax Credit by an Input Service Distributor within the same month, is ultra vires Section 20 of the CGST Act, as the parent act did not delegate the power to prescribe such a time limit.

GST ArticleHigh Court

SCN lacking reasons is liable to be set aside

byCA Bimal Jain

The Hon’ble Telangana High Court, in the case of M/s. Nice Enterprises held that the Department should not issue the SCN merely to the Assessee by simply mentioning the provisions of Section 29(2)(e) of the CGST Act. The SCN should contain sufficient factual and elementary details so as to enable the Assessee to file effective reply, such notices violate the principle of natural justice. Hence, the Impugned SCN was set aside.

GST ArticleHigh Court

Provisional attachment order of bank account under Section 83 effective only for one year

byCA Bimal Jain

The Hon’ble Telangana High Court in the case of Aarush Enterprises set aside the order of provisional attachment of bank account under Section 83(1) of the Central Goods and Services Tax Act (“the CGST Act”), taking into consideration sub-section (2) of Section 83 of the CGST Act, which clearly states that the provisional attachment passed under the aforesaid provision would be valid for a period of one year only.