Goods and Service Tax (GST) weekly flashback for the period 20 to 26 April 2025.
Table of Contents
Delhi High Court
Possibility Of Duplication In GST Demand; Delhi High Court Allows Partial Pre-Deposit for Appeal on Alleged Wrongful ITC Availment
The Delhi High Court while noting that there is a possibility of duplication in GST Demand; allowed the partial pre-deposit for appeal on the allegations of wrongful Input Tax Credit (ITC) availment.
Madras High Court
Notice Served Through GST Portal Is ‘Sufficient’ Service, But Not ‘Effective’ Service: Madras High Court
The Madras High Court has held that notice served through the Goods and Service Tax (GST) portal is ‘sufficient’ service, but not ‘effective’ service.
This is another order in quick succession to M/s.Poomika Infra Developers Versus State Tax Officer, interpreting the provisions of Section 169 of the GST Act and service through GST common portal.
Service Of Notices, Orders Through GST Portal Is Valid Mode Of Service: Madras High Court
The Madras High Court has held that the service of notices and orders through GST portal is a valid mode of service and rejects the argument that the GST portal is not a “designated computer resource of the assessee” and hence as per Section 13 (2) (a) (ii) of the Information Technology Act, receipt occurs only when the communication is retrieved.
Karnataka High Court
Karnataka High Court Quashes Unreasoned Order Blocking Electronic Credit Ledger
The Karnataka High Court has quashed the unreasoned order blocking electronic credit ledger.
The bench of Justice S.R.Krishna Kumar has observed that since no pre-decisional hearing are provided/granted by the department before passing the order, coupled with the fact that the impugned order invoking Section 86A blocking of the Electronic credit ledger of the petition does not contain independent or cogent reasons to believe/accept by placing reliance upon reports of enforcement authority which is impermissible in law, since the same is on borrowed satisfaction, the order deserves to be quashed.
Karnataka High Court Permits GST Dept. To Convert Section 74 Proceedings Into Section 73 Proceedings
The Karnataka High Court comprising Justice S.R.Krishna Kumar has permitted the GST department to convert the proceedings from Section 74 of the KGST Act into proceedings under Section 73 of the KGST Act.
Patna High Court
Patna High Court Upholding GST On Royalty Paid For Mining Leases
The Patna High Court has upheld the levy of Goods and Service Tax (GST) On royalty paid for mining leases.
The bench of Justice Rajeev Ranjan Prasad and Justice Sourendra Pandey has observed that since the royalty is the consideration for the grant of the mining lease it can be used as a measure to levy tax on the transaction under the GST laws. The GST Council while recommending the rate schedule for services specifically recommended that all the residuary services would attract GST at the rate of 18%. The Appellate Authority on Advance Ruling has not committed any error taking a view with regard to the rate of tax, for the period 01.07.2017 to 31.12.2018, at the rate of 18%.
Allahabad High Court
Allahabad High Court Imposes Rs. 20,000 Cost On Joint Commissioner SGST For Not Giving Opportunity Of Hearing
The Allahabad High Court has imposed Rs. 20,000 Cost on Joint Commissioner, SGST for passing the order passed without giving hearing opportunity to assessee.
The bench of Chief Justice Arun Bhansali and Kshitij Shailendra has observed that conduct on the part of the officers of the State wherein besides denying opportunity of personal hearing in the show cause notice by indicating ‘NA’ in the column pertaining to date of personal hearing, despite specific prayer made for providing opportunity of hearing in reply, the order has been passed without affording any opportunity of hearing.
Penalty U/s 125 GST Act Can’t Be More Than Rs. 25K: Allahabad High Court Quashes Order Imposing Rs. 50K
The Allahabad High Court has quashed the order imposing a penalty of Rs. 50K under Section 125 GST Act.
The bench of Justice Pankaj Bhatia has observed that no opportunity of hearing has been granted or is reflected in the order, the order was quashed. The matter was remanded to the authority concerned to pass a fresh order after giving an opportunity of hearing in accordance with law.
Jharkhand High Court
Jharkhand High Court Quashes GST Demand, Penalty Imposed Against Legal Heir Of Deceased Assessee
The Jharkhand High Court has quashed the Goods and Service Tax (GST) demand and penalty imposed against legal heir of deceased assessee.
The bench of Chief Justice M.S. Ramachandra Rao and Justice Rajesh Shankar has observed that in the absence of any material referred to by the department as to on what basis it is held that the petitioner was continuing the business in the name of his father’s proprietary concern after his father’s death in spite of the petitioner obtaining a fresh registration in his own name on 24.03.2018, the order is perverse, based on no evidence and cannot be sustained.
Andhra Pradesh High Court
Opportunity of hearing to be given if AO contemplates an adverse decision: Andhra Pradesh High Court
The Andhra Pradesh High Court has held that Opportunity of hearing to be given if AO contemplates an adverse decision.
The bench of Justice R Raghunandan Rao and Justice Harinath.N has observed that Section-67 of the CGST Act, 2017 requires previous authorization from the competent authority before any officer of the tax department can inspect the premises of the dealer or conduct an audit of the accounts of a dealer.
Mumbai Court
GST Dept Spiked Demand from Rs. 5.46 Cr to Rs. 11 Cr To Justify Arrest: Mumbai Court Grants Bail to Dhwani Dattani
The Mumbai Court has granted the bail to erstwhile director of one Quenteco World Ltd, Dhwani Dattani on the grounds that the GST department spiked demand from Rs. 5.46 Cr to Rs. 11 Cr merely to justify arrest.
Read More: DAY 1 | STAR TAX Summit 2025: A Powerful Start with Focus on Taxpayer Rights and Duties
