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Recent High Court Rulings on GST Appeals
The Goods and Services Tax (GST) landscape in India continues to evolve, with recent High Court rulings providing clarity on various aspects of the tax regime. Two significant judgments from the Madras High Court and the Delhi High Court have shed light on the handling of delayed appeals and cases involving misuse of GST credentials.| Court | Key Ruling |
|---|---|
| Madras High Court | Appeal should be considered despite delay if original order was passed without hearing opportunity |
| Delhi High Court | Granted interim protection in cases of misused GST login credentials |
Note: These rulings highlight the judiciary's approach to ensuring fairness in GST proceedings and protecting taxpayers' interests in cases of potential fraud.
In the Madras High Court case (W.P. No. 12860 of 2024), the court addressed the issue of delayed appeals. The petitioner, Tvl. Sri Sai Traders, had filed a writ petition against an appellate order that dismissed their appeal on grounds of being filed beyond the limitation period prescribed under Section 107 of the CGST Act, 2017. The court opined that since the original order was passed without granting the petitioner an opportunity for a hearing, their appeal should be considered despite the delay. This ruling emphasizes the importance of natural justice in tax proceedings and provides relief to taxpayers who may have been unfairly denied a chance to present their case.Meanwhile, the Delhi High Court dealt with a case involving the misuse of GST login credentials. In W.P. No. 6808 of 2024, the petitioner, Nirdosh Kumar Sadh, contested an order issued by the Revenue Department. The petitioner claimed that his GST registration and login credentials had been misappropriated, leading to fraudulent availing of Input Tax Credit (ITC) in his name.
| Issue | Court's Decision |
|---|---|
| Misuse of GST login credentials | Granted interim protection against coercive action |
| Investigation | Directed Police and Revenue Department to submit action-taken affidavits |
Warning: Taxpayers should be vigilant about the security of their GST login credentials to prevent potential fraud and misuse.
The Delhi High Court's decision to grant interim protection and direct further investigation highlights the seriousness with which the judiciary views cases of potential fraud in the GST system. This ruling serves as a reminder for taxpayers to remain vigilant about the security of their GST credentials and for authorities to take prompt action in cases of reported misuse.Notifications and Circulars from GST Departments
Several state GST departments have issued important notifications and circulars in recent weeks, addressing various aspects of GST administration and procedures.- Haryana GST Department: Issued a notification regarding the appointment of Technical Member (State) in the State Bench of GST Appellate Tribunal.
- Kerala GST Department: Permitted manual filing of APL-03 for appeals previously submitted via APL-01 in cases of online filing failures.
- Kerala SGST Policy Division: Provided clarification on penalty calculation under the IGST Act.
| Original Requirement | Relaxed Requirement |
|---|---|
| Completion of 25 years of service in Group A or equivalent | Completion of at least 25 years of service in the Government as a Gazetted Officer |
Note: This relaxation is applicable for a period of ten years from the date of publication of the notification.
2. Kerala GST Department Notification: The Kerala GST Department has enabled proper officers to file APL-03 manually against DRC-03 in cases where the taxpayer has already filed an appeal in form APL-01, but online filing of APL-03 is technically not possible.This notification shall come into force at once, providing immediate relief to taxpayers facing technical difficulties in the appeal process.3. Kerala SGST Policy Division Circular: The circular provides clarity on calculating penalties under the IGST Act, 2017, for notices issued under sections 73(1)/74(1) of the KSGST Act, 2017.
| Section | Penalty |
|---|---|
| Section 73 (KSGST Act) | 10% of the tax or ₹10,000, whichever is higher |
| Section 74 (KSGST Act) | Equal to the tax amount |
Important: The circular specifies that penalties under IGST should be the sum of penalties under CGST and SGST, rather than combining the penalty rates.
These notifications and circulars demonstrate the ongoing efforts of state GST departments to streamline processes, provide clarity on procedural matters, and ensure fair implementation of the GST laws.Important News and Updates
As we look ahead, there are several important updates and events that GST stakeholders should be aware of:- The 54th GST Council Meeting is scheduled for September 9, 2024, in New Delhi.
- GSTR-1A is now visible and functional on the GST portal.
- The Government of India has notified the Finance (No.2) Act, 2024.
These updates signify ongoing developments in the GST ecosystem. The upcoming GST Council meeting is likely to address various pending issues and potentially introduce new measures to improve the tax system. The functionality of GSTR-1A on the GST portal is expected to streamline the return filing process for taxpayers.
Stay tuned for more updates and analysis following the 54th GST Council Meeting, as any decisions made could have significant implications for businesses and tax practitioners across India.
In conclusion, the recent High Court rulings, state-level notifications, and upcoming events underscore the dynamic nature of India's GST regime. Taxpayers, businesses, and tax professionals must stay informed about these developments to ensure compliance and take advantage of any beneficial changes in the tax landscape.  |
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FAQs
What was the Madras High Court's ruling on delayed GST appeals?
The Madras High Court ruled that an appeal should be considered despite the delay in filing if the original order was passed without providing an opportunity for a hearing to the taxpayer. This emphasizes the importance of natural justice in tax proceedings.
How did the Delhi High Court address cases of misused GST login credentials?
The Delhi High Court granted interim protection against coercive action in cases where GST login credentials were allegedly misused. The court also directed the Police and Revenue Department to submit affidavits detailing the actions taken in such matters.
What changes were made to the appointment of Technical Members in GST Appellate Tribunals?
The Haryana GST Department relaxed the qualification requirements for appointing Technical Members (State) in the State Benches of GST Appellate Tribunal. The new requirement is the completion of at least 25 years of service in the Government as a Gazetted Officer, instead of 25 years of service in Group A or equivalent.
What is the significance of the Kerala GST Department's notification on manual filing of APL-03?
The Kerala GST Department now permits manual filing of APL-03 for appeals previously submitted via APL-01 in cases where online filing is technically not possible. This provides an alternative method for taxpayers facing technical difficulties in the appeal process.
How are penalties calculated under the IGST Act according to the recent Kerala SGST Policy Division circular?
The circular clarifies that penalties under the IGST Act should be the sum of penalties under CGST and SGST, rather than combining the penalty rates. For non-fraudulent cases, the penalty is 10% of the tax or ₹10,000, whichever is higher, while for fraudulent cases, the penalty is equal to the tax amount.
When and where is the 54th GST Council Meeting scheduled?
The 54th GST Council Meeting is scheduled for September 9, 2024, in New Delhi. This meeting is expected to address various pending issues and potentially introduce new measures to improve the GST system.
What recent updates have been made to the GST portal?
GSTR-1A is now visible and functional on the GST portal. This update is expected to streamline the return filing process for taxpayers, making it easier to manage and submit GST returns.