100 Important High Court Judgments of GST in 2022

Allahabad High Court: Allahabad High Court Stays GST Demand On Payment Of Royalty To Conduct Mining Activity Case Title: M/s Jitendra Singh versus Union of India The Allahabad High Court bench of Justice Saumitra Dayal Singh has stayed the GST demand on payment of royalty to conduct mining activity. GST Dept. Made Attachment Without Recording Opinion And Referring To Any Tangible Material: Allahabad High Court Imposes CostCase Title: Varun Gupta versus Union Of IndiaThe Allahabad High Court observed that the department had neither recorded the opinion nor referred to any tangible material which necessitated it to pass the provisional attachment order to protect the interest of the government revenue. The division bench of Justice Surya Prakash Kesarwani and Justice Jayant Banerji directed the department to pay the cost of Rs. 50,000 to the petitioner/assessee. GST Dept. Can Only Seize Goods In Transit And Not From Godown : Allahabad High CourtCase Title: Mahavir Polyplast Pvt. Ltd. versus State of U.P.Case Citation: 2022 LiveLaw (AB) 418The Allahabad High Court has held that the goods lying in the godown cannot be seized by invoking Section 129 of the CGST Act. The power of seizure can be exercised only in the case of goods in transit and not for goods lying in godown. The single bench of Justice Saumitra Dayal Singh has observed that it is unbelievable that two (not one) authorities of the Mobile Squad of the Commercial Tax Department chose to act with negligence. The provisions of Section 129(3) of the CGST Act could not be invoked to subject a godown premises to a search and seizure operation, the bench held. Allahabad High Court Imposes Cost Of Rs. 50,000 For Arbitrary Cancellation of GST RegistrationCase Title: Drs Wood Products Lucknow versus State of U.P.Citation: 2022 LiveLaw (AB) 383The Allahabad High Court has imposed a cost of Rs. 50,000 for the arbitrary cancellation of GST registration.The single bench of Justice Pankaj Bhatia observed that the arbitrary exercise of power to cancel the registration in the manner in which it has been done has adversely affected the petitioner. It has also had a negative impact on the revenues that could have flowed into the coffers of GST had the petitioner been allowed to conduct commercial activities. The actions were clearly not in consonance with the ease of doing business, the Court remarked. Show Cause Notice Cancelling GST Registration Must Disclose Reason: Allahabad High CourtCase Title: M/s Ram Krishna Garg Supplier versus State of U.P. Citation: 2022 LiveLaw (AB) 329 The Allahabad High Court has held that the show cause notice cancelling registration must indicate the reason and the mere mentioning of violation under the CGST Act is not sufficient. The single bench of Justice Saumitra Dayal Singh has observed that cancellation of registration has the most serious civil consequences. While Section 29(1) of the CGST Act provides for specific grounds for cancellation with effect from the date of the occurrence of certain events, Section 29(2) provides for harsher consequences, including cancellation of registration with a retrospective date. The Court ruled that registration cannot be cancelled on the mere whims and fancies of the proper officer. Registration Under GST Act Cannot Be Cancelled By Merely Describing The Firm As 'Bogus': Allahabad High Court Case Title: Apparent Marketing Private Limited versus State of U.P. & Ors.The Allahabad High Court has ruled that registration under GST Act cannot be cancelled by merely describing the firm as 'bogus'. The Single Bench of Justice Saumitra Dayal Singh held that cancellation of GST registration has serious consequences since it takes away the fundamental right of a citizen to engage in business, adding that the revenue authorities have a heavy burden to establish the existence of facts that may allow for cancellation of registration under the GST Act. Form GST DRC-01A Is A Pre-Show Cause Notice Intimation Which Focuses On Reducing Litigation: Allahabad High Court Case Title: M/s Nanhey Mal Munna Lal versus State of U.P. Citation: 2022 LiveLaw (AB) 129 The Allahabad High Court, consisting of Justice Surya Prakash Kesarwani and Justice Jayant Banerji, has ruled that Form GST DRC-01A is a pre-show cause notice intimation which focuses on reducing litigation. Andhra Pradesh High Court: Andhra Pradesh High Court Quashes Rejection Of GST Refund Application By Axis Bank Case Title: Axis Bank Ltd. versus Union of India The Andhra Pradesh High Court has quashed the rejection of a GST refund application by Axis Bank and remanded the matter back to the original authority. The division bench of Justice C. Praveen Kumar and Justice A.V. Ravindra Babu has referred to a circular dated 25.09.2021 issued clarifying that the insertion of rule (1A) to Rule 89 provides a time...

100 Important High Court Judgments of GST in 2022

Parina Katyal

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