Goods and Service Tax (GST) Weekly Flashback for the period 16 to 22 February 2025.
Table of Contents
Supreme Court
ITC Benefit Can’t Be Reduced Without Statutory Sanction: Supreme Court
Case Title: State Of Punjab & Ors. Versus Trishala Alloys Pvt. Ltd.
The Supreme Court has held that the benefit of input tax credit cannot be reduced without statutory sanction.
Delhi High Court
GST Registration Cancellation On Ground Of Non-Conducting Of Business Contrary To Physical Verification Report: Delhi High Court Quashes SCN
Case Title: Rashid Proprietor Of Ms Enterprises Versus Union Of India
The Delhi High Court has quashed the show cause notice (SCN) and the order cancelling the GST registration on the grounds of non-conducting of business which was contrary to physical verification report submitted by the GST Inspector.
Madras High Court
No GST Under RCM On ‘Holographic Stickers’ For Affixing On Alcoholic Liquor Bottles: Madras High Court
Case Title: M/s.United Breweries Limited Versus The Joint Commissioner of GST and Central Excise
The Madras High Court has held that no Goods and Service Tax (GST) under Reverse Charge Mechanism (RCM) is applicable on procurement of “holographic stickers” for affixing on alcoholic liquor bottles.
The bench of Justice C.Saravanan has observed that procurement of “holographic labels” from Govt. for affixing in the alcoholic liquor bottles, is procurement of “goods”. Refund of GST wrongly paid by the taxpayer under RCM, treating it as supply of “service” is to be granted.
Appeal Can’t Be Dismissed For Procedural Delay, When Assessee Complied With Statutory Requirements Of Pre-Deposit: Madras High Court
Case Title: Tvl. Chennais Pet Versus The State Tax Officer
The Madras High Court has held that the appeal should not be dismissed merely due to a procedural delay, especially when the petitioner has made an effort to comply with the statutory requirements, including the pre-deposit of 10% of the tax liability and additional payments towards the disputed tax amount.
The bench of Justice Vivek Kumar Singh has observed that the delay of 35 days in filing the appeal, while significant, could be condoned in the interests of justice, considering the circumstances surrounding the delay and the actions already taken by the petitioner to discharge a substantial portion of the disputed tax liability.
Madhya Pradesh High Court
GST Evasion | 82 Page SCN Issued To 12 Purchasers And Suppliers Can’t Be Quashed, Establish Defence, Says Madhya Pradesh High Court
Case Title: M/S Shree Kishna Chemicals Through Its Proprietor Pankaj Chittlangia Versus Union Of India Through Secretary And Others
The Madhya Pradesh High Court has held that in the GST evasion case a detailed show-cause notice which runs into 82 pages has been issued to the petitioner and 11 other purchasers as well as respondent No. 3/supplier. Therefore, only on the instance of the petitioner the entire show-cause notice cannot be quashed.
AAR
Hindustan Zinc Not Entitled To ITC On Goods/Services Received For Increasing Tailing-Dam Height: AAR
Applicant Name: Hindustan Zinc Ltd.
The Rajasthan Authority of Advance Ruling (AAR) has held that Hindustan Zinc is not entitled to Input Tax Credit (ITC) on goods/services received for increasing tailing-dam height.
The bench of Mahipal Singh and Mahesh Kumar Gowla observed that input tax credit is not available in relation to goods and services received for increasing the height of Tailing Dam used to disposal and treatment of hazardous waste of mining operations, known as tailings in terms of Section 17(5)(c) and 17(5)(d) of the Central Goods and Service Tax Act, 2017.
